Test Bank for Managing Human Resources 10th Canadian Edition by Monica Belcourt,Singh,Snell & Morris

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Managing Human Resources 10th Edition by Shad Morris, Monica Belcourt, George W Bohlander, Scott Snell, Parbudyal Singh.

ISBN-10 0176798056 ISBN-13 978-0176798055 Test Bank for Managing Human Resources 10th Edition by Shad Morris, Monica Belcourt, George W Bohlander, Scott Snell, Parbudyal Singh

ISBN-10 0176798056 ISBN-13 978-0176798055

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Chapter 1: The World of Human Resources Management Chapter 2: Strategy and Human Resources Planning Chapter 3: Equity, Diversity, and Inclusion: The Legal Environment Chapter 4: Job Analysis and Work Design Chapter 5: Expanding the Talent Pool: Recruitment and Careers Chapter 6: Employee Selection Chapter 7: Training and Development Chapter 8: Performance Management Chapter 9: Managing Compensation Chapter 10: Pay for Performance: Incentive Rewards Chapter 11: Employee Benefits Chapter 12: Promoting Safety and Health Chapter 13: Employee Rights and Discipline Chapter 14: The Dynamics of Labour Relations Chapter 15: International Human Resources Management

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Chapter 1 - The World of Human Resources Management 1. Which area of human resources management is responsible for full-cycle recruitment, promotions, and terminations? a. labour relations b. total rewards c. workforce planning d. risk management ANSWER: c 2. Which term refers to the knowledge, skills, and capabilities of individuals that have economic value for an organization? a. competitive advantage b. human capital c. human resources d. strategic advantage ANSWER: b 3. In the overall framework for human resources management, what is classified as a competitive challenge? a. job security b. globalization c. healthcare d. diversity issues ANSWER: b 4. Dave Ulrich, a professor of business, is quoted as saying that, in terms of learning and development, “Learning capability is g times g….” What does this mean? a. an employee’s knowledge, measured as g, multiplied by the employer’s goodwill b. an organization’s goodwill multiplied by its generosity to employees in terms of salaries and benefits c. an organization’s grand image and brand multiplied by its goodwill d. an organization’s ability to generate new ideas multiplied by its proficiency for generalizing them throughout the company ANSWER: d 5. What are the components of human capital? a. employees’ skills, capabilities, and behaviours b. employees’ knowledge, skills, and capabilities c. employees’ knowledge, skills, and behaviours d. employees’ knowledge, capabilities, and behaviours ANSWER: b 6. HRM plays an important role in organizations by balancing the sometimes competing demands of which of the following? a. competitive challenges and employee concerns b. international challenges and employee concerns c. employee concerns and employer challenges d. competitive concerns and employer challenges ANSWER: a 7. Which of the following best reflects the impact of the COVID-19 pandemic on the workplace? a. setting and achieving corporate social responsibility and sustainability goals b. responding strategically to crisis, changes, and disruptions in the local and global marketplace Copyright Cengage Learning. Powered by Cognero.

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Chapter 1 - The World of Human Resources Management c. advancing HRM with technology d. containing costs while retaining top talent and maximizing productivity ANSWER: b 8. Compared with the past, what are two areas to which contemporary HR managers add value? a. streamlining costs and helping with business strategies b. performing administrative issues and streamlining costs c. performing administrative issues and adhering to employment laws d. dealing with unions and streamlining costs ANSWER: a 9. Which term refers to a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed? a. reengineering b. downsizing c. Six Sigma d. change management ANSWER: a 10. What was the first major trade agreement of the twentieth century to establish rules and guidelines for global commerce? a. NAFTA (North American Free Trade Agreement) b. GATT (General Agreement on Tariffs and Trade) c. FTAA (Free Trade Area of the Americas) d. USMCA (United States–Mexico–Canada Agreement) ANSWER: b 11. A company has decided to hire someone from outside the company to perform tasks that could be done internally.

What is this practice called? a. contracting b. outplacement c. employee leasing d. outsourcing ANSWER: d 12. What type of change is initiated to take advantage of targeted opportunities? a. strategic b. reactive c. cultural d. proactive ANSWER: d 13. Which term refers to a systematic way of bringing about and managing both organizational changes and changes on the individual level? a. reengineering b. strategic change c. Six Sigma d. change management Copyright Cengage Learning. Powered by Cognero.

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Chapter 1 - The World of Human Resources Management ANSWER: d 14. Which term refers to the planned elimination of jobs? a. downsizing b. outsourcing c. reengineering d. rightsizing ANSWER: a 15. An organization is attempting to manage reactive change within the organization. This organization is radically changing every process through redesigning and rethinking each process. The firm needs a dramatic change to survive.

What is this organization implementing? a. Six Sigma b. continuous improvement c. reengineering d. total quality management ANSWER: c 16. An organization decided to lay off a relatively large proportion of their employees due to poorer-than-anticipated financial performance. What is this an example of? a. proactive change b. transformational change c. transitional change d. reactive change ANSWER: d 17. To take advantage of a market opportunity, Apple designed the iPhone using an open-source format so that anyone can develop and sell an iPhone application. What is this an example of? a. proactive change b. reactive change c. managing change d. transformational change ANSWER: a 18. An organization is planning to sell its products to new markets outside North America in anticipation of changes in the United States–Mexico–Canada Agreement (USMCA). What type of change management is this organization practicing? a. inertia b. proactive c. reactive d. passive ANSWER: b 19. Which of the following is NOT a key benefit of corporate social responsibility? a. avoiding lawsuits b. improving earnings Copyright Cengage Learning. Powered by Cognero.

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Chapter 1 - The World of Human Resources Management c. attracting more applicants d. improving pay for employees ANSWER: d 20. Which of the following is an example of corporate social responsibility? a. providing career counselling to outsourced employees to increase their ability to find work b. installing noise-reduction barriers in plants to decrease anticipated community complaints c. sharing knowledge freely throughout the organization to improve employee efficiency and workflow d. providing speed-reading courses for front-line staff to improve their abilities in absorbing new information ANSWER: b 21. Which type of work would a knowledge worker most likely engage in? a. deciding which type of fertilizer to buy wholesale for a landscaping business b. counting the number of grocery items in carts leaving a wholesale store c. monitoring children on new daycare playground equipment d. installing new ink cartridges in colour photocopiers in an office environment ANSWER: a 22. Information technology impacts HRM practices in several important ways. Which of the following is one such way? a. Paper waste from employee files is drastically decreased. b. Convenience in general has increased. c. Employee monitoring of all types is more efficient. d. Many HR functions can now be considered “self-service.”

ANSWER: d 23. Human resources information systems in some organizations help managers to connect with employees and with the HR data they need. What type of technological effect is this? a. relational b. operational c. transformational d. configurational ANSWER: a 24. Human resources information systems in some organizations are changing the way HR processes are designed and executed. What type of technological effect is this? a. relational b. operational c. transformational d. configurational ANSWER: c 25. Which of the following is an application of “big data” and workforce analytics in human resources management? a. using trade data to predict unemployment figures b. using job applicant data to predict performance c. using sales data to segment markets d. using exit interviews to predict unemployment figures ANSWER: b Copyright Cengage Learning. Powered by Cognero.

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Chapter 1 - The World of Human Resources Management 26. To prevent downsizing its employees, an organization has asked its staff to accept reduced pay. What strategy is this organization using? a. furloughing b. employee leasing c. reduced downsizing d. outsourcing ANSWER: a 27. Which statement best reflects the current view on the effectiveness of offshoring as a cost reduction measure? a. While organizations can save with this practice, hidden costs, such as productivity loss during the transition, can minimize the financial gains. b. The practice of offshoring has been one of the most positive HR trends of the past ten years. c. The continuous shifting of global economies makes offshoring a necessary function for organizations to survive. d. Offshoring only works if top managers begin early in the process to plan their key strategies, such as alternative talent pools and workforce training.

ANSWER: a 28. An organization wants to contain its costs while still maintaining working relationships with the employees while also shifting administrative costs to another firm. What is this situation an example of? a. professional employer organization b. gain sourcing c. employee leasing d. outsourcing ANSWER: c 29. Which statement best describes a major strength of employee leasing? a. Employee leasing shifts employment costs to the professional employer organization. b. With employee leasing, the professional employer organization allows organizations to increase their productivity. c. Employee leasing allows organizations to offer better job security through the strength of the professional employer organization. d. With employee leasing, the professional employer organization can manage employee issues.

ANSWER: a 30. Which of the following is a key motivator for offshoring? a. increased productivity b. better just-in-time operations c. better access to technology d. decreased labour costs ANSWER: d 31. Which of the following is NOT an approach generally used by organizations to try to lower labour costs? a. employee development b. outsourcing c. employee leasing d. relocating aspects of their operations to countries in the developing world ANSWER: a 32. Many Canadian firms are shifting some of their work and jobs to overseas locations. What is this business practice called?

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Chapter 1 - The World of Human Resources Management a. nearshoring c. employee leasing ANSWER: b

b. offshoring d. downsizing

33. Which of the following is a critical demographic-related problem impacting Canadian firms? a. an increasingly similar population b. retirement of baby boomers c. migration from Ontario d. increasing salaries for employees ANSWER: b 34. What are millennials also known as? a. Generation A b. Generation B c. Generation X d. Generation Y ANSWER: d 35. A bank is experiencing rapid retirement of baby boomers. The bank needs to retain its employment levels because of the volume of work, and it does not want to increase the workload of its employees. Which statement outlines the best strategy for the bank to pursue to address this situation? a. Do nothing as the situation will rectify itself through attrition. b. Offer higher compensation packages to attract qualified candidates. c. Downsize the firm to save on labour costs. d. Increase production efforts to gain more revenue.

ANSWER: b 36. Which of the following is a key benefit for organizations when they rehire retirees? a. lower health care costs b. better strategic planning c. improved group performance d. lower turnover ANSWER: d 37. What is the Canadian workforce expected to exhibit by 2036? a. about the same demographic mix as it does today b. a decrease in ethnic diversity c. an increase in ethnic diversity d. a decrease in retirements ANSWER: c 38. Which of the following trends is causing a major organizational concern that the expertise of employees will be rapidly leaving their companies? a. Generation nexus is thus far not demonstrating a dedication to training and education. b. There is an increase of uneducated labour entering the workforce. c. Recruitment of lower-skilled immigrant workers is increasing. d. Large proportions of some workforces are nearing retirement.

ANSWER: d 39. According to the text, which generation would make the most sense for organizations to target for recruitment via social media?

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Chapter 1 - The World of Human Resources Management a. baby boomers c. Generation X ANSWER: d

b. echo boomers d. Generation Z

40. Which statement best describes the relationship among gender, education, and pay? a. Women generally earn less than men do; however, when women have an advanced degree, they earn the same amount as men. b. Men and women generally earn the same amount except when neither group has any higher education. c. Women consistently and in every category earn less than men with an equivalent amount of education. d. Men with a university degree earn approximately the same as women with an advanced degree.

ANSWER: c 41. According to the text, which group is responsible for building an organization’s skilled and motivated workforce? a. HR managers b. line managers and supervisors c. department managers d. HR and line managers ANSWER: d 42. Which of the following is a key responsibility of the human resources manager? a. ensuring the credit rating of the organization b. balancing the organization’s accounts c. policy formulation and implementation d. securing new markets ANSWER: c 43. Which responsibility of the HR manager involves listening to employee concerns and representing their needs to managers? a. strategic advice and counsel b. employee service c. policy formulation and implementation d. employee advocacy ANSWER: d 44. What are the major activities for which an HR manager is typically responsible? a. corporate social responsibility, downsizing, offshoring, b. collaborative software, employee leasing, and and outsourcing furloughing c. business mastery, HR mastery, personal credibility, and d. homeshoring, globalization, and workforce change mastery analytics ANSWER: c Scenario 1.1 Canada Proud is a small food processing company located in northern British Columbia. Recently, it has faced pressures from competitors who have been able to produce similar products more cheaply. The owners of Canada Proud are looking into the possibility of starting a branch of the company in Mexico. Trade agreements among countries around the globe help companies like Canada Proud in becoming globally competitive. However, the company is aware that there may be opposition to such a move, especially if it affects the future viability of its current operations.

45. Refer to Scenario 1.1. Which trade agreement would be applicable in Canada Proud’s case?

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Chapter 1 - The World of Human Resources Management a. the General Agreement on Tariffs and Trade (GATT) b. the United States–Mexico–Canada Agreement (USMCA) c. the North American Economic Cooperation (NAEC) d. the Canada–Mexico Free Trade Agreement (CMFTA) ANSWER: b 46. Refer to Scenario 1.1. How can locating a new division in Mexico help the company become more competitive? a. It can reduce labour costs. b. It will help the image of the company. c. It will help the company become larger and better able to challenge competitors. d. It can enable access to Latin American markets for its products.

ANSWER: a 47. Refer to Scenario 1.1. What would be the most significant international challenge for Canada Proud’s HRM professionals if the company decides to open a division in Mexico? a. convincing the Canadian government that it would be better to do business in Mexico b. acquiring the physical facilities in Mexico c. laying off workers in its current operations d. hiring employees in Mexico with the relevant skills ANSWER: d 48. Refer to Scenario 1.1. How can setting up a branch in Mexico affect the future viability of Canada Proud’s current operations? a. Trade agreements do not allow companies to run exactly the same operations in two countries. b. Public pressure in Canada would force the closure of the current operations. c. The cost advantages in Mexico may lead the company to close its operations in British Columbia. d. The pressure to manage more than one set of operations is always too much for a single company.

ANSWER: c 49. Refer to Scenario 1.1. One way to avoid or reduce criticism of potential exploitation of Mexican workers through the use of low wages would be to practise “good citizenship.” Which term describes such “good citizenship”? a. corporate social responsibility b. corporate citizenship c. organizational citizenship d. corporate philanthropy ANSWER: a Scenario 1.2 The leadership at ABS Inc. has been considering the use of higher levels and intensity of technology in their operations.

The organization has a close group of about 200 employees and a strong organizational culture. It is worried that its employees could become dependent on technology and this would affect the culture. The firm is also worried about the costs to implement the technology and whether the employees can be trained.

50. Refer to Scenario 1.2. While ABS is worried about technology’s effect on its culture, there is another potentially negative effect for some workers. What is it? a. There would be less need for unskilled workers. b. The organization would become more inefficient.

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Chapter 1 - The World of Human Resources Management c. The image of the firm would be adversely affected. d. There would be pay cuts.

ANSWER: a 51. Refer to Scenario 1.2. What is a key advantage for ABS Inc. if they install better human resources information systems? a. They will outperform all competitors. b. HR personnel can concentrate on strategic issues. c. Employees will be better paid. d. Application rates will increase.

ANSWER: b 52. To achieve a sustainable competitive advantage through people, an organization’s employees’ skills, knowledge, and capabilities must be widely available in the labour market. a. True b. False ANSWER: False 53. Having a good understanding of HRM is important for managers and entrepreneurs of all types, not just human resources (HR) personnel. a. True b. False ANSWER: True 54. The knowledge, skills, and capabilities that impact a company’s performance but do not necessarily appear on its balance sheet are known as human capital. a. True b. False ANSWER: True 55. Organizations own their human capital, including investments made in training and development. a. True b. False ANSWER: False 56. Only human resource managers are responsible for the activities that are classified under the category of HRM. a. True b. False ANSWER: False 57. HR professionals do not need to fully understand the economic and financial matters pertaining to their organization. a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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Chapter 1 - The World of Human Resources Management 58. Human capital is a tangible asset. a. True b. False ANSWER: False 59. Although most employees understand that change is continuous, employees often resist change. a. True b. False ANSWER: True 60. COVID-19 has resulted in one of the most extreme organizational transformations of the past century. a. True b. False ANSWER: True 61. “Six Sigma” refers to the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. a. True b. False ANSWER: False 62. Organizations that have been successful in engineering change link the change to the business strategy. a. True b. False ANSWER: True 63. An example of a reactive change is when managers take advantage of targeted opportunities, particularly in fastchanging industries in which followers are not successful. a. True b. False ANSWER: False 64. Reengineering is a statistical method of translating customer needs into separate tasks and defining the best way to perform each task. a. True b. False ANSWER: False 65. In the past, HR departments focused mainly on managing administrative issues. a. True b. False ANSWER: True 66. The contemporary HR manager’s role is more focused on administrative implementation than on strategic partnership. a. True Copyright Cengage Learning. Powered by Cognero.

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Chapter 1 - The World of Human Resources Management b. False ANSWER: False 67. HR managers help their organizations with business strategies, mergers, and acquisitions. a. True b. False ANSWER: True 68. “Brexit” is the term used to refer to the United States renegotiating NAFTA as USMCA. a. True b. False ANSWER: False 69. Employees and the public at large are demanding that employers demonstrate greater social responsibility. a. True b. False ANSWER: True 70. The introduction of advanced technology tends to increase the number of jobs that require basic skills. a. True b. False ANSWER: False 71. Wikis, Google Docs, online chat, and video conferencing are examples of human resources information systems. a. True b. False ANSWER: False 72. In general, many companies are realizing a decreasing demand for “touch labour” and an increasing demand for “knowledge workers.” a. True b. False ANSWER: True 73. A human resources information system (HRIS) provides current and accurate data for control and decision making by managers. a. True b. False ANSWER: True 74. The most frequent use of human resources information systems (HRIS) includes automating the recruitment and selection process a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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Chapter 1 - The World of Human Resources Management 75. An important hidden cost of layoffs is a loss of institutional memory and trust in management. a. True b. False ANSWER: True 76. Amidst COVID-19, many industries have had to resort to downsizing. a. True b. False ANSWER: True 77. Outsourcing has been one of the most prominent trends in HR for the past 15 years. a. True b. False ANSWER: True 78. Historically, layoffs tend to affect white-collar workers in particular. a. True b. False ANSWER: False 79. Methods of reducing labour costs include downsizing, outsourcing, and employee leasing. a. True b. False ANSWER: True 80. Off-shoring is also called “global sourcing.” a. True b. False ANSWER: True 81. An example of outsourcing occurs when a company hires an accounting firm to handle their financial services. a. True b. False ANSWER: True 82. Employee leasing refers to employing workers in their homes rather than within the traditional office environment. a. True b. False ANSWER: False 83. Employee leasing shifts administrative costs from the company to a professional employer organization. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chapter 1 - The World of Human Resources Management ANSWER: True 84. Employee productivity is the result of a combination of employees’ abilities, motivation, and work environment, and the technology they use to work. a. True b. False ANSWER: True 85. The investment approach involves organizations increasing their productivity by reducing their inputs. a. True b. False ANSWER: False 86. Older workers are now choosing to work past traditional retirement age. a. True b. False ANSWER: True 87. Today, a larger percentage of university graduates are women compared to men. a. True b. False ANSWER: True 88. Women comprise nearly one-quarter of the workforce in Canada. a. True b. False ANSWER: False 89. Many organizations struggle to sufficiently attend to the needs and issues that transgender and gender-nonconforming people face. a. True b. False ANSWER: True 90. The most recent census (2016) shows that more Canadians have a university or college education than in the past. a. True b. False ANSWER: True 91. The 2016 Census confirmed that higher education is not necessarily a gateway to higher earnings. a. True b. False ANSWER: False 92. Employees today are less likely to define success only in terms of financial gain.

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Chapter 1 - The World of Human Resources Management a. True b. False ANSWER: True 93. “Family friendly” options include flexible work hours, part-time work, job sharing, and assistance with family problems. a. True b. False ANSWER: True 94. Most human resources issues have little relevance for line managers. a. True b. False ANSWER: False 95. Offering family-friendly options is helpful, but is not typically associated with being able to better attract and retain top-calibre people. a. True b. False ANSWER: False 96. One of the responsibilities of HR managers is to provide advice and counsel to supervisors, managers, and executives. a. True b. False ANSWER: True 97. An HR manager is typically expected to function as an in-house consultant to supervisors, managers, and executives. a. True b. False ANSWER: True 98. Line managers and HR managers essentially have the same set of responsibilities. a. True b. False ANSWER: False 99. Top management increasingly expects HR managers to reduce their level of involvement in the overall strategy of the organization and concentrate on improving administrative efficiency. a. True b. False ANSWER: False 100. One of the roles of HR managers is to act as an employee advocate, despite their position as management. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chapter 1 - The World of Human Resources Management ANSWER: True 101. Business mastery is a key competency of HR managers. a. True b. False ANSWER: True 102. What are the competitive challenges facing human resources management departments?

ANSWER: The six competitive challenges facing human resources departments are: (1) changes in the marketplace and economy, (2) globalization, (3) sustainability, (4) technology, (5) productivity and cost challenges, and (6) leveraging employee differences.

103. Describe the key responsibilities of HR managers.

ANSWER: HR managers have the following key responsibilities: 1. Strategic advice and counsel. The HR manager often serves as an in-house consultant to supervisors, managers, and executives.

2. Service. HR managers perform a host of service activities, such as recruiting, selecting, testing, planning and conducting training programs, and hearing employee concerns and complaints.

3. Policy formulation and implementation. HR managers generally propose and draft new policies or policy revisions to address recurring problems or to prevent anticipated problems.

4. Employee advocacy. One of the enduring roles of HR managers is to serve as an employee advocate listening to employees’ concerns and representing their needs to managers.

5. Business mastery. HR professionals need to know the business of their organization thoroughly. This requires an understanding of its economic and financial capabilities so that they can become a key member of the team of business managers to develop the firm’s strategic direction.

6. HR mastery. HR professionals should develop expert knowledge in the areas of staffing, development, appraisals, rewards, team building, and communication.

7. Change mastery. HR professionals must be able to manage change processes so that their firms’ HR activities are effectively merged with the business needs of their organizations.

8. Personal credibility. Like other management professionals, HR professionals must establish personal credibility in the eyes of their internal and external customers.

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Chapter 2 - Strategy and Human Resources Planning Indicate whether the statement is true or false.

1. SWOT analysis includes the strengths only for strategy formulation purposes. a. True b. False 2. Markov analysis focuses on the number of employees in particular jobs and their skill levels, compensation, and job tenure. a. True b. False 3. Attrition is the fastest way to achieve workforce reduction. a. True b. False 4. Attrition and early retirement are means for organizations to reduce excess labour. a. True b. False 5. External supply of labour is central to strategic planning. a. True b. False 6. In unionized firms, layoffs are typically based on performance. a. True b. False 7. Replacement charts are listings of current jobholders who are potential replacements if an opening occurs. a. True b. False 8. A cultural audit asks questions such as “How do employees spend their time?” a. True b. False 9. The mission statement of an organization is a description of the organization’s vision and values. a. True b. False 10. Severance pay is a lump-sum payment given to terminated employees. a. True b. False 11. Over time, organizations may try to reduce their workforce by relying on attrition. a. True

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Chapter 2 - Strategy and Human Resources Planning b. False 12. Benchmarking is the process of comparing the organization’s processes and practices with those of other companies. a. True b. False 13. Trend analysis is a qualitative approach to labour demand forecasting. a. True b. False 14. Nearly one-fifth of the workforce is made up of part-time, temporary, and self-employed workers. a. True b. False 15. HR planning is the process of setting major organizational objectives and developing comprehensive plans to achieve those objectives. a. True b. False 16. The use of part-time employees creates a problem of labour costs at fast-food restaurants. a. True b. False 17. Succession planning is the process of identifying, developing, and tracking key individuals so that they may eventually assume top-level positions. a. True b. False 18. Staffing tables provide data on external labour supply sources. a. True b. False 19. Environmental scanning involves the systematic monitoring of internal factors influencing the organization. a. True b. False 20. Core capabilities are integrated skills and knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. a. True b. False 21. Strategic plans have a strong external orientation that covers major portions of the organization, focusing mainly on how the organization will position itself globally. a. True b. False

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Chapter 2 - Strategy and Human Resources Planning 22. Trend analysis relies on a single business factor. a. True b. False 23. Core capabilities provide a long-term basis for technological innovation, product development, and service delivery. a. True b. False 24. Forecasting may be as informal as having one person familiar with the organization anticipate HR needs. a. True b. False 25. National and regional unemployment rates are often considered a general barometer of labour supply. a. True b. False 26. Organizational core values are the strong enduring beliefs and principles that a company uses as a foundation for its decisions. a. True b. False 27. The stages of HR activity associated with a merger are (1) precombination, (2) combination, and (3) solidification and assessment. a. True b. False 28. In general, contract labour possesses skills and knowledge of less strategic value to the organization than core knowledge workers. a. True b. False 29. A cultural audit asks questions such as “What is the ethnic make-up of my workforce?” a. True b. False 30. Management forecasts are quantitative measurements of future employment needs. a. True b. False 31. Human resources planning (HRP) is the conducting of recruitment and selection methods according to a strategic plan. a. True b. False 32. The number of hours that Canadians work per week has been trending downward and now hovers around 33 hours a week.

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Chapter 2 - Strategy and Human Resources Planning a. True b. False 33. A cultural audit may examine how people are empowered. a. True b. False 34. The Delphi technique works best in organizations where dynamic technological changes affect staffing levels. a. True b. False 35. Decisions about employee layoffs are usually based on seniority and/or performance. a. True b. False 36. Under the umbrella of layoff strategies are several work reduction options: reduced workweek, reduced shifts, transfers to related companies, and so on. a. True b. False 37. Increased emphasis on HR issues becomes especially critical when organizations consider global strategies, relocation of plants, product innovation plans, and so forth. a. True b. False 38. Human Resources and Skills Development Canada (HRSDC) analyzes labour markets to determine the supply and demand for labour. a. True b. False 39. Markov analysis is a systematic monitoring of the major external forces influencing an organization. a. True b. False 40. There are two approaches to HR forecasting: quantitative and qualitative. a. True b. False 41. Internal analysis provides strategic decision makers with an inventory of organizational skills and resources. a. True b. False 42. Internal fit (or alignment) means that HR practices are aligned with one another in a mutually reinforcing configuration. a. True

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Chapter 2 - Strategy and Human Resources Planning b. False 43. Through human resources planning, organizations strive for a proper balance between demand considerations and supply considerations. a. True b. False 44. Organizations such as Canadian Tire and CIBC conduct cultural audits to examine the attitudes and activities of the external workforce. a. True b. False 45. Economic factors in environmental scanning include general and global conditions. a. True b. False 46. Human resources planning plays a key role in organizational strategy implementation because organizational leaders must make decisions regarding resource allocations to human capital, among other things. a. True b. False 47. A disadvantage of overemphasizing seniority is that less competent employees receive the same rewards and security as more competent employees. a. True b. False 48. Value creation is what the firm adds to a product or service by virtue of making it; it’s the amount of benefits provided by the product or service once the costs of making it are subtracted. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

49. Severance pay is usually calculated based on which of the following? a. the employee’s years of service and salary b. complex formulas administered by the federal government c. the employee’s skills and abilities d. the employee’s education and performance 50. In what way can HR best help ensure that a strategic alliance or joint venture goes smoothly in the beginning? a. plan labour supply needs for both organizations b. systematically monitor employee morale for both organizations c. teach employees about the other organization d. assess the compatibility of the two organizational cultures

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Chapter 2 - Strategy and Human Resources Planning 51. Which of the following best captures the strategic intent of the organization? a. its mission b. its vision c. its core values d. its strategic human resource plan 52. Smith Frozen Foods performs a yearly employee survey to assess how its employees feel about safety on the job, the comfort of the working conditions, and their general level of satisfaction with their work, managers, and coworkers. What is Smith Frozen Foods most likely performing? a. a job satisfaction survey b. an environmental analysis c. a cultural audit d. an engagement measure 53. As part of the strategic planning process, XYZ Inc. recently examined the attitudes and activities of the company’s workforce. What was XYZ doing? a. an environmental scan b. a cultural audit c. a trend analysis d. a demand forecast 54. Which term refers to an enthusiastically adopted tool for mapping a firm’s strategy in order to ensure strategic alignment? a. target forecasting b. predicted focus c. balanced scorecard d. replacement selection 55. Kappa Technology is a firm in the high-technology sector. It needs to hire individuals with very specific knowledge and abilities, and it needs to do so quickly. Which aspect of employee forecasting will be most important for this company? a. skills inventories b. staffing tables c. Markov analysis d. succession planning 56. An organization states that teamwork and working together are important in its strategy but gives bonuses to individuals who excel independently. What is this an example of? a. a misalignment of internal fit b. a misalignment of external fit c. a misalignment of internal and external strategy d. a misalignment of strategy and HR 57. Which of the following is a method for measuring a firm’s strategic alignment?

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Chapter 2 - Strategy and Human Resources Planning a. Markov analysis b. a balanced scorecard c. benchmarking d. an HR “dashboard” 58. An organizations’ core capabilities consist of three components. Which of the following is NOT one of them? a. processes b. systems c. people d. cultural audit 59. What is an HR “dashboard”? a. a strategic tool developed by the Boston Consulting Group b. a SWOT analysis at the HR level c. a balanced scorecard d. a software that tracks and graphically displays HR statistics so they can be viewed by managers at a glance 60. HR planning requires HR managers to focus more on an alignment between HR plans and which of the following? a. the organization’s financial strategy b. the organization’s marketing position c. the organization’s strategic plan d. the competitive environment 61. What do we call the internal alignment of HR practices to establish a configuration that is mutually enforcing? a. vertical fit b. horizontal fit c. HR alignment d. enforcing fit Scenario 2.1 Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and Rogers On Demand, Blockbuster struggled to stay relevant in a tech-savvy environment where videos and games could now be rented conveniently from the comfort of one’s couch via computer or TV. Despite efforts to try to stay relevant, Blockbuster did not leverage technology that had become an important part of their consumer base’s daily lives. As a result, Blockbuster was not able to fight off the competition.

62. Refer to Scenario 2.1. To remain competitive, Blockbuster Canada needed to systematically monitor the major external forces influencing the movie/game rental business. Which of the following would be important to its success? a. analysis of the internal environment b. environmental scanning c. changes in demographics d. changes in its mission, vision, and values

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Chapter 2 - Strategy and Human Resources Planning 63. Which of the following best describes the core values of a company? a. They represent the alignment of the strategic plan with the human resource plan. b. They are strong enduring beliefs and principles of the company. c. They are the basic purpose of the organization. d. They provide a perspective on where the company is headed.

64. ATM Company has experienced a recent growth in its business. Which of the following is NOT a likely response to its new HR demands? a. Hire full-time employees b. Ask employees to work over-time c. Allow for attrition d. Use contract workers 65. What is the difference between trend analysis and management forecasts? a. Trend analysis is used to analyze the business environment and management forecasts predict labour needs. b. Trend analysis uses organizational indexes and management forecasts utilize statistical techniques. c. Trend analysis is quantitative and management forecasts are qualitative. d. Trend analysis has proven success and management forecasts have major shortcomings.

66. Organization Z is planning its future. In the process, the firm is making decisions such as what type of market it wants to be the leader in and what path to take to achieve this goal. What is Organization Z doing? a. strategic planning b. human resources planning c. performing a Markov analysis d. applying principles of strategic human resources management 67. Manning Logistics laid off nine employees from data-entry positions in its finance division. Two weeks later, it hired 15 employees into data-entry positions in the inventory division. What mistake has the company committed? a. faulty cultural audit b. not forecasting properly c. faulty goal alignment d. not analyzing the internal labour force 68. On the entrance to Mac Pencils’ factory are the words “to provide the world with high-quality and dependable pencils.” What is this an example of? a. strategic vision b. mission c. core values d. core resources 69. Which of the following is an important use of the balanced scorecard? a. to help balance internal and external fit b. to help managers translate their firms’ strategic goals into operational objectives c. to help managers balance the costs and benefits of HR strategies

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Chapter 2 - Strategy and Human Resources Planning d. to help with the SWOY analysis 70. Which of the following is a graphical representation of all organizational jobs along with the numbers of employees currently occupying those jobs and future employment requirements? a. a Markov analysis b. a trend analysis c. a skills inventory d. a staffing table 71. What is the first step in the strategic planning process? a. putting together the human resource management team b. executing the human resource plan c. establishing the mission, vision, and values of the organization d. aligning the human resource plan and the strategic plan 72. As part of the SWOT analysis, the internal analyses of the firm would include an analysis of which of the following? a. opportunities b. strategy c. threats d. weaknesses 73. What is the most important information obtained from a Markov analysis? a. human capital readiness b. what types of attitudes employees have c. what positions are going to be coming open and will require a new hire d. how many individuals are ready for promotion 74. Which of the following is NOT a qualitative approach to demand forecasting? a. trend analysis b. Delphi technique c. soliciting expert opinion d. management forecast Scenario 2.1 Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and Rogers On Demand, Blockbuster struggled to stay relevant in a tech-savvy environment where videos and games could now be rented conveniently from the comfort of one’s couch via computer or TV. Despite efforts to try to stay relevant, Blockbuster did not leverage technology that had become an important part of their consumer base’s daily lives. As a result, Blockbuster was not able to fight off the competition.

75. Refer to Scenario 2.1. Blockbuster’s competitive environment includes which of the following? a. its customers, HR strategy, new entrants, core capabilities b. its environmental scanning and analysis

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Chapter 2 - Strategy and Human Resources Planning c. its environmental analysis, strategic planning, and HR strategy d. its customers, rival firms, new entrants, substitutes, and suppliers 76. Which of the following deliberations on the competitive environment generally involves an active role by HR managers? a. an analysis of new entrants b. an analysis of the supply and demand for labour c. coordination with suppliers d. minimizing the technical advantages of rival firms 77. During its strategic retreat, the top management team at IAMME Gold Corporation pondered on the question “What’s the organization reason for being?” What was the team most likely focusing on? a. the firm’s strategic vision b. the firm’s core values c. the firm’s mission d. the firm’s competitive position 78. Which of the following should you take into account when forecasting demand? a. absenteeism b. turnover c. business cycles d. labour mobility 79. Which of the following is NOT generally considered a component of a firm’s competitive environment? a. rival firms b. new entrants c. labour laws d. suppliers 80. Which statement best describes the skills of core employees? a. Their skills are not directly related to company strategy. b. They have firm-specific skills directly related to company strategy. c. They have skills that are valuable but not unique. d. Their skills are available to all firms.

81. Which of the following best describes forecasting human resources needs? a. It is scientific and relatively error-free. b. It is difficult and should only be done on rare occasions. c. It should rely strictly on quantitative approaches, which utilize sophisticated analytical models. d. It estimates the number and type of people that are needed to meet organizational objectives.

Scenario 2.2 Avie Products Inc. is planning to add a third shift to its production schedule. It currently has 450 workers involved in all aspects of its fertilizer business, best done in Canada. A recent surge in demand from its global customers is driving the

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Chapter 2 - Strategy and Human Resources Planning need for more workers; however, Simi Meher, the CEO, is concerned that the surge may be temporary, especially in light of the recent economic downturns in the global environment where Avie does business.

82. Refer to Scenario 2.2. What would assist Avie in determining how many additional workers it would need for the third shift? a. reconciling supply and demand b. Markov analysis c. replacement charting d. trend analysis 83. Kramer Athletic Equipment is planning the future of the organization. In this process, the firm is making decisions such as whether to maintain its current path as industry leader in the running shoe business, or branch out to include casual footwear. In addition, the company is also discussing the various needs it will have for new staff if it does choose to go in a new direction. What is Kramer Athletic Equipment doing? a. strategic planning b. human resources planning c. applying principles of strategic human resources management d. planning both its business needs and its HR needs 84. What do we consider the firm’s resources to be when they improve the efficiency or effectiveness of the company? a. difficult to imitate b. valuable c. organized d. rare 85. From an organization’s perspective, what is an important shortcoming of having to rely on part-time employees? a. limited benefits b. costs of continuous replacement c. lack of training d. no job security 86. Vindal Fabrics has determined that its organizational strength is being an industry leader in producing upholstery fabrics for automobiles. The company believes its weakness is its performance in Southeast Asia. It has also determined that it is missing an opportunity by not yet branching into upholstery for public transit seats. In order to complete a SWOT analysis, does Vindal Fabrics need to do next? a. It needs to see that its major threat is the economic downturn of the auto industry. b. Its HR department needs to address the company’s major weakness. c. It needs to perform a revenue analysis in order to see what chances it can take. d. Its HR department needs to address the company’s missed opportunity.

87. Which of the following is the process of identifying, developing, and tracking key individuals so that they may eventually assume top-level positions? a. target forecasting b. predicted change c. succession planning

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Chapter 2 - Strategy and Human Resources Planning d. replacement selection Scenario 2.2 Avie Products Inc. is planning to add a third shift to its production schedule. It currently has 450 workers involved in all aspects of its fertilizer business, best done in Canada. A recent surge in demand from its global customers is driving the need for more workers; however, Simi Meher, the CEO, is concerned that the surge may be temporary, especially in light of the recent economic downturns in the global environment where Avie does business.

88. Refer to Scenario 2.2. Which approach could Avie use to forecast demand for its products? a. staffing tables b. Markov analysis c. skill inventories d. trend analysis 89. Which statement best describes strategic knowledge workers? a. They have skills that are valuable but not unique. b. They have firm-specific skills directly related to company strategy. c. They have unique skills directly linked to the company’s strategy. d. As consultants, they have strategic skills.

Scenario 2.2 Avie Products Inc. is planning to add a third shift to its production schedule. It currently has 450 workers involved in all aspects of its fertilizer business, best done in Canada. A recent surge in demand from its global customers is driving the need for more workers; however, Simi Meher, the CEO, is concerned that the surge may be temporary, especially in light of the recent economic downturns in the global environment where Avie does business.

90. Refer to Scenario 2.2. What is the best strategy for Avie to follow with respect to workers on the third shift? a. hire full-time employees to get their commitment b. hire part-time staff c. get management to do the extra work d. outsource the work to India 91. What is values-based hiring? a. hiring employees whose values correspond to their corporate cultures b. hiring employees based on good ethical values c. hiring decisions that lead to new values being adopted by the company d. hiring executives who then instill their values in the company 92. As part of its strategic planning process, TJX Corporation is involved in a systematic, regular monitoring of major external forces influencing the organization. What is this process called? a. external forecasting b. human resource planning c. Markov analysis d. environmental scanning

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Chapter 2 - Strategy and Human Resources Planning 93. What do we call integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers? a. core capabilities b. competitive advantage c. human capital d. organizational competencies 94. Organization Y is a unionized textiles manufacturing company that is downsizing. What will Organization Y most likely use when deciding whom to lay off first? a. seniority b. the payroll c. what skills and abilities the company needs to thrive d. talent 95. XYZ Corporation wants to track the percentage and actual number of employees who remain in each of the firm’s job from one year to the next. Which of the following would XYZ Corporation benefit from? a. a replacement chart b. a skills inventory c. a Markov analysis d. a succession plan Scenario 2.1 Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and Rogers On Demand, Blockbuster struggled to stay relevant in a tech-savvy environment where videos and games could now be rented conveniently from the comfort of one’s couch via computer or TV. Despite efforts to try to stay relevant, Blockbuster did not leverage technology that had become an important part of their consumer base’s daily lives. As a result, Blockbuster was not able to fight off the competition.

96. Refer to Scenario 2.1. What is one of the most important assessments a firm like Blockbuster could have made in order to stay relevant? a. identifying the needs of its customers b. identifying the needs of its producers c. identifying the needs of its employees d. teaming up with the competition 97. Refer to Scenario 2.1. Blockbuster Canada managers could have successfully advanced the company and remained relevant by focusing on which of the following? a. an environmental analysis b. what they do best, traditional rentals c. technological changes including information technology and innovations d. incentives to keep consumers coming back 98. Eldorado Electronics wants to move from the stagnant calculator industry into the smart phone industry. To do so, however, it would have to make significant changes to its approach to product development in order to gain an edge in

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Chapter 2 - Strategy and Human Resources Planning this competitive industry. What is the smartest next step for Eldorado Electronics? a. It should consider how its strategic plans will affect its HR needs. b. It should engage in human resources planning. c. It should apply principles of strategic human resources management. d. It should consider how its strategic plans will affect HR needs and also how its current HR status will affect its strategic plans.

99. What do we call reducing the workforce through the departure of employees who resign or retire? a. attrition b. contraction c. contracting out d. termination 100. Which of the following is a cooperative strategy pursued by firms? a. joint ventures b. mergers c. acquisitions d. diversification Scenario 2.2 Avie Products Inc. is planning to add a third shift to its production schedule. It currently has 450 workers involved in all aspects of its fertilizer business, best done in Canada. A recent surge in demand from its global customers is driving the need for more workers; however, Simi Meher, the CEO, is concerned that the surge may be temporary, especially in light of the recent economic downturns in the global environment where Avie does business.

101. Refer to Scenario 2.2. Assume that Avie goes ahead with the third shift. What can the company use to evaluate the effectiveness of this strategy in a year’s time? a. Markov analysis b. trend analysis c. skill inventories d. benchmarking Scenario 2.1 Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and Rogers On Demand, Blockbuster struggled to stay relevant in a tech-savvy environment where videos and games could now be rented conveniently from the comfort of one’s couch via computer or TV. Despite efforts to try to stay relevant, Blockbuster did not leverage technology that had become an important part of their consumer base’s daily lives. As a result, Blockbuster was not able to fight off the competition.

102. Refer to Scenario 2.1. For years, Blockbuster survived as a successful entity with various competitors until Netflix and Rogers On Demand began making movies and games available online. Which of the following most likely contributed to Blockbuster going out of business? a. economic, global, political, and environmental factors b. technological, psychological, and physical factors

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Chapter 2 - Strategy and Human Resources Planning c. technological changes, social concerns, and demographic and labour market trends d. the lack of knowledge workers

103. What are the advantages and disadvantages of using attrition as a downsizing strategy?

104. Describe how human resources planning is integrated with strategic planning.

105. Identify and briefly describe three strategies that managers frequently use to cope with a labour shortage.

106. Describe the three key elements of the HRP model.

Answer Key 1. False 2. False 3. False 4. True 5. False 6. False 7. True 8. True 9. False 10. True 11. False 12. True 13. False 14. True 15. False 16. False 17. True 18. False

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Chapter 2 - Strategy and Human Resources Planning 19. False 20. True 21. False 22. True 23. True 24. True 25. True 26. True 27. True 28. True 29. False 30. False 31. False 32. True 33. True 34. True 35. True 36. True 37. True 38. True 39. False 40. True 41. True 42. True 43. True 44. False

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Chapter 2 - Strategy and Human Resources Planning 45. True 46. True 47. True 48. True 49. a 50. d 51. b 52. c 53. b 54. c 55. a

84. b 85. b 86. a 87. c 88. d 89. c 90. b 91. a 92. d 93. a 94. a 95. c 96. a

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Chapter 2 - Strategy and Human Resources Planning 97. c 98. d 99. a 100. a 101. d 102. c 103. The primary advantage of using attrition (combined with a hiring freeze) is the ability to control and predict compensation expenses that go beyond the salaries and benefits redeemed from departing employees. When the organization does not replace departing employees, the reduction in recruitment, orientation and training, office space costs, and so forth, can result in substantial savings.

However, the disadvantages of attrition are significant. Current employees may be overburdened with the work of departing employees; their skills may not match the skill sets of the departed workers; and no new skills or ideas are infiltrating the organization. In addition, the organization is unable to control who leaves and who stays, which may result in valuable employees leaving, while less needed ones remain. Attrition also poses the disadvantage of taking a long time, compared to processes that can be accomplished rapidly, such as layoffs.

104. Through strategic planning, organizations set major objectives and develop plans to achieve those objectives. HRP provides a set of inputs that determine what is or is likely to be possible, given the number of available people, training needs, and other people-related issues. HR strategies and action plans are developed according to the overall strategic goals that evolve from the strategy formulation process. During the strategy implementation phase, HRP must make resource allocation decisions, and implement policy, practices, and training that support the decisions and outcomes of the strategic planning process.

105. (1) Overtime (i.e., asking employees to work extra hours) is a strategy used by most firms during peak periods. (2) Increasingly, organizations are using part-time employees to increase flexibility in scheduling and reducing payroll costs.

Many organizations use part-time or contract employees to cover the absences of regular, full-time employees. (3) In addition, nine out of ten Canadian companies—both large and small—make some use of temporary employees. “Temps” are typically used for short-term assignments, vacation fill-ins, for peak work periods, or to cover for employees taking sick leave, pregnancy leave, and so forth.

106. The three key elements in the HR planning process are (1) forecasting demand, (2) forecasting supply, and (3) balancing supply and demand considerations.

Forecasting demand involves estimating in advance the number and type of people needed to meet organizational objectives. It may involve a quantitative approach using statistical analysis and mathematical models or a qualitative approach focusing on employee performance and promotability.

Forecasting supply determines if there are sufficient numbers and types of employees available to staff anticipated openings. Sources of supply can be external or internal.

HR planning should strive for a proper balance between the emphasis placed on demand considerations and that placed on supply considerations. Demand considerations are based on the forecast of trends in business activity. Supply considerations involve the determination of where and how candidates with the required qualifications are to be found to fill vacancies.

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Chapter 3 - Equity, Diversity, and Inclusion: The Legal Environment MULTIPLE CHOICE 1. Which of the following statements best describes employment equity? a. It impacts all aspects of the employment relationship. b. It is referred to as “affirmative action” in provincial legislation. c. It is an out-dated term, which has been replaced by “diversity management.” d. It has been declining in importance in recent years.

ANS: A 2. Organization Z is about to undertake an organization-wide process of ensuring equitable representation in terms of designated groups, including an analysis and redressing of past discriminations. Organization B is undertaking which of the following? a. affirmative action policy implementation b. employment equity policy implementation c. pay equity policy implementation d. an employment systems review ANS: B 3. Aboriginals face major employment barriers, which may be compounded by which of the following? a. language and cultural barriers b. illiteracy c. reluctance to leave the area in which they grew up d. negative past employment experience ANS: A 4. Green Grass Hospital pays its hallway painters/technicians nearly twice the hourly rate that it pays the nurses. This fact is likely to cause further investigation in a pay equity program implementation under which of the following circumstances? a. if the nurses have more seniority b. if the painters have more training c. if the nurses are predominately women and the painters are predominantly men d. if the painters’ union becomes involved in the process ANS: C 5. What is the most important thing an organization can do if it wants to retain women? a. implement policies that focus on the family b. implement employment equity policies c. implement pay equity policies d. implement mentoring ANS: A

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Chapter 3 - Equity, Diversity, and Inclusion: The Legal Environment 6. As a result of the Supreme Court of Canada ruling regarding the right to bargain collectively and to strike, governments can weaken the collective bargaining process through which of the following? a. limiting salary increases b. imposing compulsory layoffs c. dismissing union leaders d. upholding discrimination complaints ANS: A 7. Which of the following groups is most likely to view the Canadian Charter of Rights and Freedoms as a disappointment? a. unions b. women c. designated groups in general d. religious groups ANS: B 8. If a religious organization insists on hiring a member from its own faith, it is probably safe to do so legally, if it claims which of the following legal defences? a. adverse impact b. adverse effect c. reasonable accommodation d. bona fide occupation qualification ANS: D 9. Which of the following is a possible outcome of a human rights complaint filed by an individual? a. It is deemed as trivial by the CHRC and refused. b. A settlement may be arranged, even if the complaint is unsubstantiated. c. The Equal Rights Compliance Agency (ERCA) may become involved. d. It can be waitlisted for years depending on how busy the CHRC is.

ANS: A 10. Which of the following statements best describes the enforcement of provincial human rights laws? a. Provincial laws are enforced in a similar manner except there is no court prosecution permitted. b. Provincially regulated employers tend to be larger and more sophisticated. c. HR professionals in provincially regulated firms tend to be very knowledgeable about human rights legislation. d. Independent boards of inquiry have similar powers as a federal tribunal.

ANS: D 11. How is the Canadian Human Rights Act typically enforced? a. by specially designated RCMP officers b. through complaints from individuals c. by specially designated CSIS agents d. by human rights tribunals ANS: B

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Chapter 3 - Equity, Diversity, and Inclusion: The Legal Environment

12. Employers that pay men and women performing the same job a different salary are violating the Pay Equity Act only if the differences are based on which of the following? a. seniority b. merit c. gender d. incentive plans ANS: C 13. What is the difference between pay equity and pay equality? a. Equity is equal pay for work of comparable worth; equality is equal pay for equal work. b. Equality is equal pay for work of comparable worth; equity is equal pay for equal work. c. Equity is about fair pay for individual women employees; pay equality is required of all federally regulated employers. d. Equality is about fair pay for entire occupations; equity is required by law in every jurisdiction in Canada.

ANS: A 14. Which of the following groups would NOT fall under the broad definition of a designated group? a. individuals who are 40 years of age or older b. visible minorities c. women d. disabled persons ANS: A 15. Which of the following is the most serious possible occurrence if an HR professional was dishonest in a human rights investigation? a. The HR professional could be imprisoned. b. The organization could be fined up to $50,000. c. The HRPA would remove certification, or disallow future certification. d. There could be a major investigation of the organization and the HR professional.

ANS: A 16. Which of the following is NOT true of the Employment Equity Act (1995)? a. Employers that have more than 100 employees must implement employment equity. b. Organizations with employment equity must prepare an annual report on its data and activities relating to equity. c. All Canadian organizations must have some form of employment equity program. d. Organizations with employment equity programs must give their employees questionnaires to indicate whether they belong to a designated group.

ANS: C 17. What is the law that requires large firms bidding on federal government contracts worth $200,000 or more to have an employment equity plan? a. the Canada Labour Code

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Chapter 3 - Equity, Diversity, and Inclusion: The Legal Environment b. the Canadian Human Rights Act c. the Abella Commission d. the Federal Contractors Program ANS: D

18. What is the first step in the employment equity implementation process? a. data collection and analysis b. establishment of a workplan c. senior management commitment d. employment systems review ANS: C 19. What are the six main steps to developing an employment equity program? a. senior management commitment; data collection/analysis; establish a workplan; HR systems review; evaluation; monitoring b. senior management commitment; HR systems review; data collection/analysis; establish a workplan; implementation; follow up c. senior management commitment; data collection/analysis; establish a workplan; implementation; follow up; monitoring and evaluation d. senior management commitment; data collection/analysis; employment systems review; workplan; implementation; follow-up with monitor and revision ANS: D 20. Which of the following terms refers to a snapshot of the organization that includes where members of designated groups are employed, their salaries, and their status? a. flow data b. self-identification c. stock data d. profile data ANS: C 21. Which of the following is an important tool in employment equity planning? a. employment systems review b. internal workforce profile c. family-friendly policy d. external workforce profile ANS: B 22. Data collection for employment equity purposes involves which of the following? a. surveys of supervisors b. a mandatory self-identification process c. surveys of family members d. a voluntary self-identification process ANS: D 23. Which of the following is the best example of how an organization’s leadership can demonstrate its

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Chapter 3 - Equity, Diversity, and Inclusion: The Legal Environment commitment to an employment equity plan? a. allowing employees to fill out the employment equity survey on company time b. offering a full explanation of the employment equity policy to top managers c. offering a guarantee of confidentiality d. publicly describing the organization’s commitment to employment equity ANS: D

24. Which of the following people would be the best choice for an organizational employment equity representative? a. Bill has belonged to the organization for 15 years, beginning on the shop floor, and is now a manager. He is well known and respected within the organization. Bill’s sister, who lives with him, is disabled and uses a wheelchair. b. Sandeep is a member of a designated group, is new to the organization, and works in management. He is an active member of his religious group. c. Candy is a member of designated group and has been with the organization for 25 years as a telephone receptionist. She knows everyone and is very popular due to her friendliness and great memory. d. Antonia, who has been with the organization for 15 years, is very interested in becoming the employment equity representative because she is very organized and wants an opportunity to demonstrate this to management so she can be considered for a promotion.

ANS: A 25. Which of the following presents the most important roadblock to successful administration of a selfidentification questionnaire? a. training and development b. terms that are not clearly defined, such as “Aboriginal” and “racial minority” c. not understanding the form d. a sense of “futility” expressed by members of designated groups in organizations where bias and racism are rampant ANS: B 26. A large accounting firm has only 35 percent female UFE-certified accountants on staff. Women make up approximately 50 percent of the population and UFE-certified women make up approximately 15 percent of the labour force. Which of the following best describes this situation for women at this large accounting firm? a. They are underrepresented. b. They are concentrated. c. They are underutilized. d. They require reasonable accommodation.

ANS: B 27. Targeted recruitment to correct past discrimination is an example of which of the following? a. reasonable accommodation b. a special measure c. an employment equity goal

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Chapter 3 - Equity, Diversity, and Inclusion: The Legal Environment d. a workplan ANS: B 28. Implementing a flexible work schedule is an example of which of the following? a. reasonable accommodation b. a special measure c. an employment equity goal d. a workplan ANS: A

29. Phil’s Antique Superstore is hiring ten new customer service agents. All three of Phil's stores are housed in historic landmark buildings that are “heritage” sites and do not have wheelchair ramp access. This is an example of which of the following? a. a systemic barrier b. the need for special measures c. lack of reasonable accommodation d. the duty to accommodate ANS: A 30. “Phil’s Antique Superstore” is hiring ten new customer service agents. All three of Phil’s stores are housed in historic landmark buildings that are “heritage” sites and do not have wheelchair ramp access.

Phil, the owner, has indicated that city bylaws will not allow him to renovate and add a wheelchair ramp to his buildings because of their heritage status. This fact makes the ability to go up stairs which of the following? a. an undue hardship b. a reasonable accommodation c. a bona fide occupational qualification to work at Phil’s d. a system barrier to working at Phil’s ANS: C 31. An organization’s workforce is representative in which of the following situations? a. when it reflects the demographic composition of the external workforce b. when numerical goals have been established c. when it reflects an improvement from the previous year’s results d. when men and women are employed in equal numbers ANS: A 32. Which of the following is essential for an employer to determine whether goals are being attained and problems resolved, and whether strategies have been effective? a. implementation b. monitoring c. an employment systems review d. establishing goals and timetables ANS: B

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Chapter 3 - Equity, Diversity, and Inclusion: The Legal Environment 33. Which of the following is NOT an example of sexual harassment? a. paying a man more than a woman for doing the same job b. promoting a female employee after she agrees to an after-work date c. permitting male employees to tell sexist jokes that female staff find offensive d. allowing a customer to demand sexual favours from an employee ANS: A 34. An effective sexual harassment policy includes all of the following EXCEPT which one? a. a comprehensive, well-publicized, organization-wide policy on sexual harassment b. a formal complaint procedure that spells out the methods used to investigate charges c. emphasis on follow-up and discipline for supported charges d. a policy to dismiss any employee accused of sexual harassment ANS: D

35. The concepts of harassment in the workplace are being broadened to include which one of the following? a. compensation decisions b. psychological harassment such as bullying c. privacy d. evaluation and monitoring ANS: B 36. Organization Z is planning a formal process of examining its workforce in terms of religion, personality, lifestyle, and education. The company plans to gain a strategic advantage by harnessing the differences that exist within the organization. Organization Z is planning to do which of the following? a. implement an employment equity program b. implement a pay equity program c. initiate a cultural assessment d. employ diversity management ANS: D 37. Which of the following is an important reason behind implementing a diversity initiative? a. to expand the organization’s global perspective b. to avoid human rights complaints c. to capitalize on emerging markets in third world countries d. to comply with Canadian legal requirements ANS: C 38. Which of the following is NOT recommended as a strategy for creating an environment in which diversity is embraced? a. ensuring the initiative is seen as an important human resource program b. providing diversity training c. reviewing policies and practices d. monitoring progress and providing qualitative and quantitative evidence of change ANS: A 39. Which of the following summarizes the primary business reasons for diversity management?

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Chapter 3 - Equity, Diversity, and Inclusion: The Legal Environment a. acting in accordance with CHRA legislation; better utilization of talent; better teamwork; better marketplace understanding; better leadership b. enhanced creativity; better synergy; better utilization of talent; better leadership; better teamwork c. acting in accordance with CHRA legislation; better utilization of talent; better leadership; better work ethic; better marketplace understanding d. better utilization of talent; better marketplace understanding; enhanced creativity; better leadership; better teamwork ANS: D 40. Which of the following organizational situations best represents the principle of the duty to accommodate? a. making renovations so that the building has wheelchair access, even if it is through a rearentrance loading dock. b. making washrooms equipped with lower mirrors and faucets, and wider doors c. having regular employee surveys for disabled employees to ensure their needs are met d. following the uniform guidelines for accommodation ANS: B

41. What is the first step for the establishment of a workplan for the development of an employment equity program? a. examination of the workforce analysis b. making sure upper management is on board c. monitoring and evaluation d. setting numerical goals ANS: A 42. Which of the following best describes bona fide occupational qualifications? a. They are used to identify adverse impact. b. They are based on employer preference. c. They can permit discrimination by an employer. d. They require reasonable accommodation on the part of the employer.

ANS: C 43. Once an employment equity program has been implemented, what is the most important thing to do? a. evaluate and monitor it closely b. keep up to date on new developments and laws in employment equity c. inform the CHRA of progress d. limit revisions to the program to one per year ANS: A

42. Vindal Fabrics has determined that its organizational strength is being an industry leader in producing upholstery fabrics for automobiles. The company believes its weakness is its performance in Southeast Asia. It has also determined that it is missing an opportunity by not yet branching into upholstery for public transit seats. In order to complete a SWOT analysis, what piece of information does Vindal Fabrics need to figure out next? a. It needs to see that its major threat is the economic downturn of the auto industry. b. Its HR department needs to address the company’s major weakness. c. It needs to perform a revenue analysis in order to see what chances it can take. d. Its HR department needs to address the company’s missed opportunity.

43. Which of the following statements best describes a hiring freeze? a. It is usually only successful during times of economic crisis. b. It is a workforce attrition strategy. c. It discourages competent employees. d. It leaves more talented labour for the competition.

44. Which of the following is a method for measuring a firm’s strategic alignment? a. Markov analysis b. SWOT analysis c. benchmarking d. using a balanced scorecard

45. Which of the following terms refers to an enthusiastically adopted tool for mapping a firm’s strategy in order to ensure strategic alignment? a. target forecasting b. predicted focus c. balanced scorecard d. replacement selection

Chapter 4 Job Analysis, Employee Involvement, and Flexible Work Schedules MULTIPLE CHOICE 1. What is a job? a. a group of related activities and duties b. the different duties and responsibilities performed by one employee c. a statement of the knowledge, skills, and abilities required to perform work d. a statement of the tasks, duties, and responsibilities associated with work

2. What is a position? a. a group of related activities and duties b. the different duties and responsibilities performed by one employee c. a statement of the knowledge, skills, and abilities required to perform work

d. a statement of the tasks, duties, and responsibilities associated with work

3. What is a job specification? a. a group of related activities and duties b. the different duties and responsibilities performed by one employee c. a statement of the knowledge, skills, and abilities required to perform the job d. a statement of the tasks, duties, and responsibilities associated with the job

4. Which of the following is an example of a job specification? a. To be a grocery store cashier, you need to know how to work a cash register, know the rules of the store, and know basic math. b. To be a grocery store cashier, you have to deal with the public and be able to stand on your feet for long hours. c. A grocery store cashier assists customers in paying for their grocery items and answering questions about products. d. A grocery store cashier is responsible for making sure items are bagged or tagged, and that all customers pay for their items.

5. Which of the following can remedy discrepancies between the knowledge, skills, and abilities of the jobholder and the KSAs required for the job? a. training b. discipline c. cooperation d. corporate leadership

6.

“Appropriate university degree, five years corporate experience, working knowledge of statistical analysis and software.” The preceding is an example of which of the following? a. a job analysis b. a job description c. a job specification d. a position 7. “The IT specialist is responsible for the smooth running of all staff computers.” The preceding is most likely an excerpt from which of the following? a. a job position b. a job specification c. a job analysis d. a job description

8. What is most important reason that job analysis is considered the cornerstone of HRM? a. The information comes from job incumbents who know the job the best. b. It is done in a scientifically sound and valid way. c. The information it collects serves so many HRM functions. d. It is required by law.

9. Which of the following terms refers to systematically investigating jobs by following a number of predetermined steps specified in advance? a. job design b. job evaluation c. job analysis d. job examination 10. What is the ultimate purpose of job analysis? a. to make sure HR systems are valid b. to organize work in a meaningful way c. to have a sense of what employees should be or are doing in their jobs d. to increase performance and productivity of the organization

11. Which of the following refers to a volume compiled by the Canadian federal government that contains standardized and comprehensive descriptions of approximately 25,000 occupational titles? a. the National Occupational Classification b. the Dictionary of Careers c. the Job Classification Guide d. the Job Description and Occupational Guide 12.

If the criteria used to evaluate employee performance are vague and not job related, which of the following is the most likely result? a. The organization can be charged with unfair discrimination. b. The organization can suffer productivity losses. c. The organization can suffer from bad publicity. d. The organization can suffer from lack of trust and commitment from employees.

13. What is the job analysis technique that is worker-oriented and covers 194 different tasks? a. task inventory development b. the critical incident method c. the position analysis questionnaire 14. What is the objective of the critical incident method of job analysis? a. to challenge the employees with their false statements b. to provide information for job evaluation based on the “critical” value of the job c. to prioritize job duties and responsibilities d. to identify critical job tasks

15. Which of the following terms refers to an analysis in which the emphasis is placed on characteristics of successful performers rather than standard duties? a. dynamic job analysis b. team-based analysis

c. strategic analysis of bobs d. competency-based analysis 16. Which of the following can result from generically written job descriptions? a. role ambiguity b. continuous improvement c. restructuring d. self-motivation

17. Which of the following is most correct when it comes to job analysis? a. artificial inflation of job duties must always be double-checked against the NOC b. a job analyst must weigh info obtained from the NOC above incumbent data c. a job analyst must weigh manager info heavier than job incumbent data d. more information about the job is always better

18.

Which of the following job analysis methods utilize “interviews”? a. critical incidents, PAQ, and competency-based analysis b. critical incidents and competency based analysis c. task analysis and competency-based analysis d. PAQ, task analysis, and critical incidents

19. What is the most important difference between competency-based analysis and all other forms of job analysis discussed in the text? a. Competency-based analysis is better at keeping pace with the quickly changing nature of work. b. Competency-based analysis relies solely on information obtained from job incumbents. c. Competency-based analysis focuses on how the job is currently done. d. Competency-based analysis requires a very high degree of training on the part of the analyst.

20. Sally is interviewing an employee, asking him to describe his job, how it is performed, what work is done, and what tools and equipment are used. What style of job analysis is Sally performing? a. the critical incidents style of job analysis b. the task analysis style of job analysis c. the PAQ style of job analysis d. the occupation classification style of job analysis

21. Kirk is learning a new job by watching his co-workers and asking questions. He notices that some of his co-workers stress the importance of certain tasks, while others don’t do these tasks at all.

This has left Kirk somewhat stressed by what he should and should not be doing in his new role.

What does Kirk need? a. a job description b. a job analysis

c. information from the NOC d. job specifications

22. Which of the following is an important limitation of relying on job descriptions? a. They tend to narrow the scope of activities of the jobholder. b. They may be misunderstood by the jobholder. c. They may include illegal specifications. d. They are associated with poor employee morale.

23. Human rights legislation requires that the specific performance requirements of a job be based on which of the following? a. common practices in industry b. past practices c. valid job-related criteria d. the National Occupational Classification 24. Which of the following best captures the main difference between job analysis and job design? a. Job analysis looks at jobs how they currently are; job design is about reorganizing work. b. Job analysis is required to ensure that HR functions are based on sound and valid data; job design is focused on compensation and the financial worth of the work. c. Job analysis is a process; job design is a function. d. Job analysis is the study of jobs as currently performed; job design is concerned with changing job structures to improve efficiency.

25. In which of the following situations would a job design be recommended? a. New technology has drastically changed the way that work is done in a manufacturing plant shop floor and employees are finding there is a lot more spare time. b. Due to a recent change in upper management and benefit policies, several hundred highly skilled employees have recently left the organization and moved to a competitor. c. The culture of the organization is deemed by an external consultant to be “stagnant” and in need of a change. d. Members of the organization are trying to form a union.

26. Which of the following terms refers to any effort that makes work more rewarding or satisfying by adding more meaningful tasks to an employee’s job? a. job enlargement b. a job characteristic c. job enrichment d. job rotation

27. An owner of a mall-based retail shop chain has asked front-line sales associates to attend a twiceyearly all-day meeting where they share ideas about possible new products, innovations, and ideas about improving work flow. Which of the following is the owner most likely attempting to implement? a. job involvement b. job enrichment c. brainstorming d. a culture audit 28. Which of the following is an accurate description of the five core job dimensions of Hackman and Oldham’s job characteristics model? a. skill variety, task identity, task significance, autonomy, and feedback b. feedback, task identity, job identity, skill variety, and autonomy c. autonomy, feedback, job security, task identity, and skill variety d. skill variety, task identity, job security, autonomy, and feedback

29.

Which of the following factors does Herzberg describe as key to enriching jobs? a. pay, promotion, pension, purpose, and perks b. achievement, recognition, growth, responsibility, and performance of the whole job c. safety needs, social needs, self-esteem needs, and self-actualization d. skill variety, task identity, task significance, autonomy, and feedback 30. According to the work of Herzberg, managers can enrich the jobs of employees through which of the following? a. adding more responsibility to jobs b. increasing benefits c. improving the quality of employee supervision 31. Vertical job enrichment can be best accomplished through which of the following? a. assigning less work to each employee b. providing performance results to employees c. forming teams that have greater authority for self-management 32. According to the job characteristics model, what three psychological states of a jobholder result in motivated, satisfied, and productive employees? a. meaningfulness of the work, task significance, and autonomy b. meaningfulness of work, responsibility for completion of a whole identifiable piece of work, and knowledge of work results c. meaningfulness of work, responsibility for outcomes, and knowledge of work results d. meaningfulness of work, responsibility for outcomes, and fair compensation 33. What is the core job dimension that describes the degree to which a job has a substantial impact on the lives or work of other people? a. skill variety b. task identity

c. task significance d. autonomy 34. Which of the following terms refers to the degree to which a job has substantial freedom, independence, and discretion for an individual in determining work schedules and procedures? a. autonomy b. skill variety c. task identity d. feedback 35.

Employee empowerment is a technique of involving employees in their work through which of the following processes? a. development b. administration c. combination d. inclusion

36. Which of the following organizational situations is most likely to result in employees who feel empowered? a. The employees are allowed to set their own work schedules so they can have better work– life balance. b. The employees are allowed to spend a few minutes every day coming up with creative ideas for the suggestion box. c. The employees have access to sensitive information so they can make more informed decisions about their work. d. The employees have a large training budget and they are allowed to spend their training dollars on courses they choose and as they see fit.

37. Which of the following is an example of an employee involvement group? a. a group of employees who meets after work hours to discuss their interest in hiking and other outdoor activities b. a group of employees who come together once a year to brainstorm new workflow ideas c. a group of employees who meet weekly to brainstorm a sequel to a popular product line 38. What is the goal of ergonomics? a. to fit the job to the work environment b. to fit the job to the equipment c. to fit the job to the person d. to fit the job to the work schedule 39. What two characteristics do group/team techniques have in common? a. enhancing collaboration and increasing synergy b. enhancing collaboration and improving morale c. improving morale and increasing synergy d. enhancing communication and increasing synergy

40. What is the main reason for organizing employee involvement groups? a. to identify safety concerns b. to recognize and correct discrimination issues c. to have employees use their knowledge to identify and solve organizational problems d. to reduce employee complaints, thereby fostering organizational success

41. In employee involvement groups, which of the following is crucial? a. The group membership must change regularly. b. Group members must not be rewarded; participation must be completely voluntary. c. Managers must evaluate group recommendations before implementation. d. All recommendations must be implemented in at least some small way in order not to lose the sense of empowerment.

42. Team synergy is heightened when team members engage in behaviours such as support, active listening, consensus decision making, and which of the following? a. unanimity b. prioritizing options c. regular meeting times d. disagreement

43. Which of the following is the best advice for “virtual teams” to be successful? a. Team members should NOT meet in person. b. Team members should meet in person at least occasionally. c. All team members should understand advanced computer and telecommunications technology so that breakdowns in communication do not occur frequently. d. Team members should be selected based on certain personal characteristics such as a collaborative mindset.

44. What kind of team uses advanced computer and telecommunications technology to link team members who are geographically dispersed? a. a content team b. a whole team c. an advanced team d. a virtual team

45. Which of the following is an organizational benefit of job sharing? a. less absenteeism b. less turnover c. higher productivity d. better performance

46. Which of the following is an important drawback of allowing employees to telecommute? a. lower performance due to distractions at home b. dishonesty about hours worked c. less creativity due to loss of workplace synergies d. increased absenteeism 47.

What do you call the type of work schedule in which employees can adjust their daily starting and quitting times, provided that they work a certain number of hours per day or week? a. a compressed workweek b. a shorter workweek c. a flextime arrangement d. an adaptable schedule 48. Which of the following is most likely to result in a successful telecommuting situation? a. The telecommuters have to check in frequently throughout the day to let their managers know exactly what they are working on and how it is going. b. The managers who are trained in formalized telecommuting procedures make random calls to the telecommuters at home to ensure all is going well and work is getting done. c. The telecommuters are expected to attend regular on-site meetings and are trained in technical aspects of telecommuting. d. Telecommuting is only allowed when the work at hand does not involve interaction of any kind.

49. Which of the following is an organizational benefit of job sharing? a. reduced labour costs b. reduced turnover c. reduced training costs d. reduced employee appraisals 50. In addition to creating synergy within an organization, group techniques can also do which of the following? a. increase employee commitment to the organization’s goals b. increase job and pay satisfaction c. increase employee engagement d. decrease employee absenteeism

Chapter 5 Expanding the Talent Pool: Recruitment and Careers MULTIPLE CHOICE 1. What is the primary purpose of the organizational practice of promoting from within? a. to reward employees for past performance b. to protect the organization from internal discrimination suits c. to reduce long-term compensation budgets

d. to alleviate some of the need for HR planning

2. What does the value of a computerized record system (SAP and People Soft) for locating qualified internal job candidates largely depend on? a. the experience of the employees b. the extent to which data in the system is kept up-to-date c. the extent to which the system is “user-friendly” d. the availability of the system to line personnel

3. In order to identify qualified candidates for the job of “tennis teaching professional,” Canmay Tennis Clubs have job candidates face a series of situations while they are observed, such as dealing with a series of e-mails from an unhappy club client in a difficult situation, role-playing a lesson, and a behavioural interview. Which of the following methods of identifying qualified candidates is Canmay using? a. in-basket exercises b. interviewing c. a work sample d. an assessment centre

4. If an executive search firm found a successful candidate for the role of a senior executive where the annual salary is $200,000 per year, what would be the most likely fee charged by the search firm? a. $80,000 b. $35,000 c. $120,000 d. $100,000 5. Which of the following is the most likely outcome of recruiting from within? a. It would increase recruiting costs. b. It would reduce employee motivation. c. It would inhibit creativity. d. It would increase an organization’s technology.

6. Which of the following is the most likely outcome of hiring someone from outside the organization? a. It would lead to revitalization of the organization. b. It would increase morale among executives. c. It would lead to an increase in information about a rival’s competitive advantage. d. It would limit your labour market.

7. According to a recent survey, which of the following recruitment sources was identified as the most effective? a. executive search firms b. help-wanted advertisements c. employee referrals d. private employment agencies

8. Learning in Development (LID) is a high-tech firm that specializes in applications for hand-held devices. It is looking for a cheap, fast, and effective way of recruiting new candidates. Which of the following strategies would best suit LID? a. Internet recruiting b. executive search firms c. labour unions d. walk-in job applicants

9. Which of the following occurs in a tight labour market? a. Unemployment is high. b. The numbers of job applicants and job openings are about equal. c. Compensation rates decline. d. The demand for labour exceeds the labour supply.

10. Which of the following external recruiting sources normally provides applicants who stay with the organization the longest? a. educational institutions b newspaper ads . c. employer referrals d job postings .

11. Which of the following should an employer NOT do in order to develop effective newspaper advertisements? a. try to be too creative or flashy b. overlook community newspapers or classified publications that target a specific market segment c. encourage impulse applicants with weekend telephone numbers d. highlight the major assets of the position= 12.

Which of the following is key to the success of any employee referral program? a. paying employees well for good referrals b. increasing the visibility of the program c. widening the scope of the program d. measuring results

13. Which of the following recruitment methods is most likely to result in discrimination against members of protected groups? a. Internet recruiting b. employee referrals c. unsolicited applications and résumés d. executive search firms

14. Which of the following is the best description of the use of applications and résumés for filling positions? a. The percentage of acceptable applications from this source is generally not very high. b. Applications and résumés are an important source of recruitment, especially for large retail organizations. c. In combination with electronic screening, applications and résumés are a powerful HR tool. d. Applications and résumés are the most commonly used tactic by job seekers.

15. According to a recent study, which of the following factors is most important to executives in determining what company to work for? a. job security b. prestige of title c. a talented workforce to work with d. values and culture

16. Which of the following is the most important disadvantage of using employee referrals for recruitment? a. It makes human resource planning near impossible due to the unpredictable nature of the talent pool. b. Training recruiters to recognize potential in candidates in this way is difficult and costly. c. Discrimination may result because people tend to refer others from similar backgrounds. d. It is likely that individuals will refer weak candidates in order to lessen internal competition for promotions.

17. Which of the following is the most important drawback of using educational institutions for recruitment? a. HR still has to perform a host of selection tests. b. The candidates usually have no full-time job experience. c. The type of recruitment is limited to sales and retail. d. Basing recruitment of candidates on grade transcripts is not a valid selection tool.

18. Which of the following best describes private employment agencies? a. They are managed and directed by Human Resources Development Canada. b. They do not charge job seekers a fee. c. They commonly specialize in providing services for a specific occupational area. d. They commonly provide services only to college graduates.

19. According to an article in the Canadian HR Reporter, what is the biggest draw for students looking for organizations to apply to? a. a good initial salary b. opportunities for advancement c. challenging work

d. developmental opportunities

20. How is it possible to find out which sources produce qualified applicants? a. by calculating and comparing yield ratios for each recruitment source b. by using Markov analysis c. by training recruiters more effectively d. by advertising only in specialized media 21. If 50 applicants came from a recruiting source, and 14 were invited for interviews, what would the yield ratio for that source be? a. 14 % b. 24% c. 28% d. 7% ANS: C 22. Which of the following is the approach to recruitment that informs applicants about all aspects of the job, including both desirable and undesirable facets? a. honesty recruiting b. the realistic job preview c. balance recruiting d. negative/positive job assessment 23.

In which of the following organizational situations is there most likely to be a benefit of using realistic job previews? a. in the financial industry where there are few jobs, but the training is arduous and not very lucrative despite promise of wealth in the long run b. in creative organizations, such as symphony orchestras, where the work is not well paid and the training is intense. c. in a high-tech organization where despite it being a very competitive industry, engineers are allowed to explore their creative side and are motivated financially to suggest innovative products. d. in a meat-processing plant where the work is very messy, the smell is strong and unpleasant, and there is a lot of expensive training to do the job well

24. Which of the following is a factor in determining the choice of outside sources from which to recruit applicants? a. legal requirements b. the cost-per-hire of the firm’s job posting system c. the job identification d. the firm’s success in achieving its employment equity program

25. Which of the following is correlated with the recruitment success of the organization? a. formal vs. informal recruitment sources b. the accuracy and completeness of advertisements

c. employment equity programs d. unsolicited applications and résumés

26. Which of the following organizations help employers find the right person for the job instead of helping jobseekers find the right job? a. public employment agencies b. labour unions c. private employment agencies d. executive search firms

27. Organization W has had an opening in a key managerial role for three weeks, which is viewed as a long time. In situations like this in the past, Organization W has had to resort to hiring external to the organization, which is less preferable to the company, in order to fill the position in question.

Which of the following best captures what Organization W is likely suffering from? a. poor HR planning b. a weak training and development program in the organization c. a weak talent bench d. a lack of value for promotions in the organization

28. In which of the following processes are individuals evaluated as they participate in a series of situations that resemble what they will likely experience on the job? a. performance appraisal b assessment centre . c. management talent inventory d job postings and biddings .

29. Which of the following is an important advantage of external recruitment? a. It helps promote diversity. b. It helps the organization maintain a rich organizational culture. c. It helps the organization gain access to competitors’ secrets. d. It helps to lower initial pay, thus saving on compensation costs.

30. Which of the following are the lines of advancement for an individual within an organization? a. career paths b. job progressions c. career lines d. job paths

31. Which of the following is the term for a tool used to examine current performance data and future potential within an organization? a. a managerial matrix b. a potential assessment centre c. a 9-box grid d. a performance analysis

32. Which of the following is the first step in HR’s role in career management? a. identify career opportunities and requirements b. match individual and organizational needs c. gauge employee potential d. institute career development initiatives

33. Which of the following best describes outplacement services? a. They are useful methods of attracting individuals into a career. b. They are designed to help terminated employees find a job elsewhere. c. They are rarely given to executive employees. d. They are vital parts of any career management system.

34.

What does employability refer to? a. the skills and support needed to find a job b. access to outplacement services c. individual achievements gained through completing assessment centre activities d. organizational benefit from developing a training program

35. In identifying career opportunities and requirements within an organization, which of the following is the vital first step? a. preparing a competency or job analysis b. preparing performance appraisals of existing staff in those positions c. ensuring the job progressions within the organization are clear d. identifying career paths

36. Which of the following is the LEAST significant factor in career counselling? a. the employee’s current job activities and performance b. the employee’s past career decisions c. the employee’s personal and career interests and goals d. the employee’s personal skills

37. Which of the following best captures the “Peter Principle”? a. Through natural selection, incompetent employees tend to turn over. b. When promoting based on past performance and seniority, employees will be promoted regularly until they are promoted to a position where they cannot perform well. c. Incompetence breeds incompetence. d. Managers who are incompetent tend to produce situations where there are more grievances, more voluntary turnover, more absenteeism, and more harassment.

38. Sandeep has been fired from his managerial position. His organization provides services to help him become employable and find a suitable position elsewhere. What are these services called? a. coaching b. mentoring c. relocation d. outplacement

39. Which of the following refers to those artificial barriers based on attitudinal or organizational bias that prevent qualified individuals from advancing upward in their organizations into management positions? a. labour barriers b. the glass ceiling c. barriers to entry d. trade barriers 40.

Which of the following is the best example of a person with a boundaryless career? a. When Deborah become pregnant with her third child, she decided that working less would be best for her family. She now shares her job with another person who also works parttime. b. Yusef quit his job of 10 years to open his own business and work from home. He has the freedom of being his own boss and being flexible with his schedule. c. Bill works in a creative role within an organization with a flat structure. In such an organization there are opportunities to contribute at all levels. d. Sally has worked for three different organizations in five years. Each time she moves to a new organization, and usually a higher position, she takes with her the skills and abilities

she learned in her previous role.

41. What are the most frequent organizational accommodations made for dual-career couples? a. flextime working schedules b. parental leave policies c. policies that allow work to be performed at home d. day-care facilities

42. Sukhi is an excellent engineer and has been promoted three times within her current organization— she is now at the top level of engineering. She loves being an engineer, but the organization has now offered her a very lucrative position as a manager. If she wants to continue to be promoted, the only way is to move into management, since there are no higher engineering jobs for her. Which of the following programs would benefit Sukhi? a. a boundaryless career b. competency analysis c. dual career tracking d. a structural career plateau

43. Luba is developing a mentoring program for her organization. She has put a great deal of effort into making sure that all protégés are matched demographically with their mentor (gender, race, etc), educating participants about facts such as the reciprocal nature of the relationship, and that the relationship can be used for personal and professional development. In her plans, which of the following myths about mentors has Luba fallen victim of? a. A mentor has to be the same gender and race as the protégé. b. Mentoring should focus on the professional and not the personal. c. Although mentoring can be reciprocal, that is just a by-product. The focus should be on the protégé. d. Highly profiled people make the best mentors.

Chapter 6 Employee Selection MULTIPLE CHOICE 1. If an organization did not hire a person who was described as low in predicted success and low in job performance, that situation would be called which of the following? a. the goal of selection b. a miss c. a hit d. a successful selection system

2. Which of the following refers to the use of selection tests to measure applicant KSAOs against competencies for the job? a. employment equity compliance b. person–job fit c. person–organization fit d. indirect expense

3. Which of the following most accurately represents the typical steps in the selection process? a. Candidates participate in employment testing before being interviewed. b. Supervisors interview candidates followed by individual interviews with the HR department. c. Candidates are interviewed in the initial stages and again the late stages of the process. d. Background investigations are carried out near the beginning of the process.

4. Why has interest in person–organization fit been increasing? a. because of organizations’ increased need for teamwork and flexibility b. because of the movement toward union-free hiring c. because job descriptions are becoming more rigid d. because of advances in selection tools

5. Organization B is using an interview that requires a panel of three interviewers to complete. The company has found that about half of the time, the interviewers disagree in their ratings such that some members of the panel give the candidate a high rating, while others give the same candidate a low rating. What is the best way to describe the situation? a. The interview that Organization B is using is not content valid. b. The interview that Organization B is using is lacking predictive validity. c. The interview that Organization B is using is not valid. d. The interview that Organization B is using is not reliable.

6.

Six months ago, Organization A used a new selection system to hire 100 front-line staff members. With six months of performance data in hand, Organization A is interested in determining if its new selection system predicts performance on the job. What is the best way to describe this process? a. assessing concurrent validity through a cross-validation study b. assessing concurrent validity through a criterion-related validity study c. assessing predictive validity through a criterion-related validity study d. assessing predictive validity through a cross-validation study 7. When would an applicant be rejected during the selection procedure? a. after the preliminary interview b. after completing the application blank c. after selection test results are received d. at any step in the procedure

8. Which of the following represents an essential factor in the selection procedure, regardless of the selection methods used? a. lengthy and thorough b. quick and efficient c. reliable and valid d. a positive experience for applicants

9. Which of the following refers to the degree to which selection procedures yield comparable data over a period of time? a. consistency b. reliability c. validity d. conformity

10. Organization C has developed a new selection system. The company is interested in determining if the system predicts performance on the job, so Organization C gave the selection tests to 100 existing employees. What is the best way to describe this process? a. assessing concurrent validity through a cross-validation study b. assessing concurrent validity through a criterion-related validity study c. assessing predictive validity through a criterion-related validity study d. assessing predictive validity through a cross-validation study

11. Which of the following terms refers to the degree to which inferences drawn from interviews, test scores, and other selection procedures are supported by evidence (such as good job performance)? a. evidential b. accuracy c. reliability d. validity

12. Which of the following terms refers to the extent to which good performance on a test correlates with high marks on a performance review? a. criterion-related validity b. content validity c. construct validity d. cross-validation

13. Giving applicants a clerical aptitude test and then tracking their performance six months later is an example of which of the following? a. predictive validity b. concurrent validity c. content validity d. correlational validity

14. What is one of the most important processes in establishing validity? a. criterion related validation b. correlation c. cross-validation d. content validation

15. Which of the following is the process in which a test or test battery is administered to a different sample (drawn from the same population) for the purpose of verifying the results obtained from the original validation study? a. redundancy validation b. repeat validation c. cross-validation d. inferential validation

16. Organization X applies validity data from another similar job situation to its own organization.

What is this process called? a. validity generalization b. content validation c. predictive validation d. criterion-related validation

17. Which of the following correlation coefficients is indicative of the strongest correlation? a. –0.4 b. 0.8 c. 0.2 d. –0.9

18.

How can you obtain a higher validity coefficient? a. by ensuring that the selection tests are valid b. by ensuring that the selections tests are reliable c. by combining two or more tests or other predictors d. by relying on validity generalization

19. Which of the following conditions represents a test that could be described as “construct valid”? a. A professor puts one essay question on the final exam, and that essay question is drawn from the chapter that she feels is the most important. b. A manager uses a work sample test used for selection that has facets that tap in to every major aspect of the job. c. A researcher gives a test of “job satisfaction” to a group of participants and checks to make sure that his results correlate with other measures of satisfaction. d. A manager assesses how effective his selection test is by checking the performance of successful candidates months after they are hired.

20. A scatter plot that represents the relationship between test scores and performance on the job with a test that is NOT valid would look like which of the following descriptions? a. The dots form a pattern that resembles a line going from high to low b. The dots form a pattern that resembles a line going from low to high c. There is very little or no pattern in the dots. d. The dots form a box pattern.

21. Intelligence, mechanical comprehension, and anxiety are examples of which of the following? a. job requirements b. job characteristics c. theories d. constructs

22. Which of the following lists of information sources about job candidates is ranked from most useful to least useful? a. applications, background checks, graphology b. polygraph tests, graphology, applications c. graphology, background checks, biographical information blanks d. polygraphs, biographical information blanks, graphology

23. Which of the following is appropriate to ask on an application form? a. asking if the applicant has prior arrests b. asking if the applicant is eligible to be bonded c. asking if the applicant has ever been in jail d. asking if the applicant has ever been caught stealing

24.

Which of the following best describes the use of reference checks? a. They are no longer used because organizations won’t share information about previous employees for fear of litigation. b. Their usefulness is limited because most managers will not share performance data. c. Some organizations have detailed forms for previous employers to fill out in order to get the best information. d. New human rights laws prohibit their use.

25. Why would an organization use an integrity test? a. because even though such tests are not correlated with reduced disruptive behaviours, they have been correlated with reduced turnover b. because such tests are designed to identify thieves c. because not only do these tests reduce theft, but they also have been shown to have a relationship with performance on the job d. because in using an integrity test, you can avoid the use of most other selection tests, since it has been shown that these are good stand-alone predictors

26. Why are biographical information blanks difficult for applicants to fake? a. They require detailed answers. b. They rarely have obviously right or wrong answers. c. They are administered by extremely knowledgeable interviewers. d. They require applicants to respond quickly.

27. Which of the following best captures the current state of thinking on the use of biographical information blanks?

a. Personal questions are viewed as inappropriate in a selection setting. b. It is very time consuming to score them, but they are considered valid in particular industries, such as health care. c. They are not considered valid. d. They are a very valid method of predicting job success.

28. Which of the following best describes credit reports? a. Organizations must advise and receive written consent from the applicant they request a credit report. b. Organizations can request a report on any employee at any time without consent. c. Organizations do not have to inform applicants if adverse decisions are made based on information in the report. d. Organizations cannot make adverse decisions based on information in such a report.

29. Which of the following is currently the most effective way to assess a person’s honesty during the selection process? a. polygraph testing b. graphology testing c. background tests d. integrity testing

30. Which of the following is a legal means of screening out applicants who pose a security risk? a. polygraph testing b. a pencil-and-paper honesty test c. a voice stress analyzer d. deceptograph testing

31. Delta Organization is using a selection test that asks questions requiring the applicant to draw logical conclusions from a series of scenarios. What kind of test is this? a. an aptitude test b. an achievement test c. a conscientiousness test d. a personality inventory

32. Omega Organization is using a selection test that asks questions like “I tend to work on projects alone” and “I know what is expected of me in social situations.” What kind of test is this? a. an aptitude test b. an achievement test c. a conscientiousness test d. a personality inventory

33. Which of the following measures mental capabilities such as general intelligence, verbal fluency, numerical ability, or reasoning ability? a. a personality and interest inventory b. a physical ability test c. a cognitive ability test d. a job sample

34. Which of the following types of test is the Scholastic Aptitude Test (SAT)? a. a cognitive ability test b. a personality test c. a physical ability test d. an interest inventory 35.

Which of the following types of test measures dispositional characteristics such as extroversion, inquisitiveness, and dependability? a. personality tests b. cognitive ability tests c. physical ability tests

d. supervisory and managerial ability tests

36. Which of the following best describes personality tests? a. They easily demonstrate job-relatedness. b. They can inadvertently discriminate against individuals who would otherwise perform effectively. c. They measure intelligence. d. They measure an applicant’s preference for certain activities over others.

37. Which of the following types of test is increasingly being aided by computer simulations? a. personality tests b. physical ability tests c. cognitive ability tests d. work sample tests

38. Asking a candidate for an auto mechanic position to disassemble and reassemble a carburetor is an example of which of the following? a. a work sample test b. a job knowledge test c. a physical ability test d. an interest inventory

39. Which of the following is NOT a reason why interviews are popular as a selection method? a. Interviews are the most valid method of selection. b. Interviews are practical for dealing with a small number of applicants. c. Interviews function as a public relations tool. d. Interviewers have faith in their ability to make selection judgments.

40. Which of the following types of interview provides the greatest consistency or standardization with respect to the questions asked? a. a nondirective interview b. a situational interview c. a structured interview d. an unstructured interview

41.

Which of the following types of interview allows the applicant the maximum amount of freedom in determining the course of discussion? a. a nondirective interview b. a depth interview c. a situational interview d. a structured interview

42. Questions contained in structured job interviews should be based on which of the following? a. job analysis b. job design c. job specialization d. job utilization

43. Organization Omega is hiring 20 new front-line employees. The company is using an interview that involves three people taking turns asking questions and then pooling their scores of the responses.

What is this type of interview called? a. a behavioural description interview b. a panel interview c. a situational interview d. a structured interview 44. Which of the following refers to an interview in which an applicant is given a hypothetical incident and is asked how he or she would respond to it? a. a computer interview b. a panel interview c. a situational interview d. a nondirective interview

45. “Tell me about the last time you disciplined an employee” is an example of which of the following? a. a behavioural description interview question b. a panel interview question c. a computer interview question d. a closed response interview question

46. Organization Beta is hiring 20 new staff for front-line positions. The interview the company is using involves giving the applicant hypothetical incidents and asking how he or she would respond. What is this type of interview called? a. a behavioural description interview b. a panel interview c. a situational interview d. a structured interview 47. Organization T uses a decision-making model in which an applicant is allowed to score poorly in one area of the selection tests, as long as he or she scores very high in another area. What is this type of decision-making model called? a. a statistical model b. a multiple hurdle model c. a compensatory model d. a multiple cutoff model

48. Which of the following best describes drug testing in the selection process?

a. b. c. d.

It is conducted in most Canadian workplaces.

It is illegal in Canada.

It is conducted more frequently in Canada than in the United States.

It is conducted by very few Canadian organizations.

49. Which of the following should the selection decision should focus on? a. the strategic objectives of the organization’s competition b. the personality match of the applicant and the supervisor c. the motivation of the applicant d. both “can-do” and “will-do” factors of the applicant

50. A manager is examining the number of applicants for a job compared to the number of people needed to be hired. What is this figure called? a. the yield ratio b. the selection ratio c. the base ratio d. the validity coefficient

51. The “can do” factors of an applicant include which of the following? a. knowledge, skills, and abilities b. personality, values, and motivation c. honesty and integrity d. motivation

52. What does a selection ratio of .9 mean? a. It means 90 percent of the applicants applying to the position will be hired. b. It means 10 percent of the applicants applying to the position will be hired. c. It means 9 percent of the applicants applying to the position will be hired. d. It means 1 percent of the applicants applying to the position will be hired.

Chapter 7 Training and Development MULTIPLE CHOICE 1. What is the main difference between training and development? a. Development is more future oriented and broadly focused. b. Development is a broader term used to describe learning processes in an organization. c. Development is a term that is used to capture coaching, mentoring, and training. d. Development is more narrowly focused.

2. Which of the following statements best captures the effects of forcing employers to provide training to employees? a. It is not clear because the results of studies are varied. b. It helps employees to gain valuable skills that can be transferable to other organizations.

c. It causes emotional stress on the part of employees. d. It causes undue hardship for the employer.

3. Which of the following statements best describes orientation programs? a. The impact of an orientation program on new employees does not last a long time. b. There is no need for coordination between line and staff managers when it comes to orientation programs. c. Careful planning of orientation activities is essential. d. The most popular approach to orientation involves allowing new employees to be oriented by their peers.

4. Which of the following is the primary reason organizations train new employees? a. to increase their knowledge, skill, and ability level b. to help trainees achieve personal career goals c. to comply with federal regulations d. to improve the work environment

5. Organization W has adopted a new training strategy that it learned about because its very successful main competitor is also using this training strategy. Which of the following statements best captures this situation? a. This is very unusual; most organizations link training directly to their organizational goals. b. This is very unusual; data show that most organizations do not consider the training initiatives of others in their decisions. c. Organization W is not alone; many organizations copy training strategy used by competitors. d. This is unusual; most organizations at least make attempts to link their training initiatives to their own organizational strategy.

6. a. b. c. d.

Which of the following best captures the phases of the systems model of training? planning, design, needs assessment, and evaluation needs assessment, design, implementation, and evaluation design, needs assessment, implementation, and evaluation design, needs assessment, management, and evaluation

7. Conducting an organizational needs analysis is likely to yield which of the following types of training relevant information? a. strategy b. what the competition is up to c. technological changes and financial resources d. functional requirements of various positions

8. Omega Organization is going through a very detailed process of looking at all the tasks or duties included in a job. It will then list all the steps performed by the employee to complete each task, and then look to examine the skills and knowledge necessary for the job. Which of the following processes is Omega Organization performing? a. task analysis b. job analysis c. person analysis d. competency analysis

9. Which of the following best describes the systems approach to training? a. It is the most cost-effective approach b. It ensures that training investments have maximum impact on performance c. It is called development d. It includes the process of job analysis 10. Which of the following terms refers to an examination of the strategies, environment, and resources of an organization to determine where training emphasis should be placed? a. task analysis b. environmental scanning c. needs assessment d. organizational analysis

11. Which of the following terms refers to determining what the content of a training program should be, based on a study of the job duties? a. task analysis b. individual analysis c. job analysis d. organization analysis 12.

Which of the following terms refers to assessing the sets of skills and knowledge employees need to be successful, particularly for decision-oriented and knowledge-intensive jobs? a. individual assessment b. competency assessment c. organizational assessment 13. Which of the following best describes person analysis? a. It has shifted from a fixed sequence of tasks to a set of competencies. b. It helps organizations avoid the mistake of putting all employees through training when some do not need it. c. It involves self-improvement and self-directed training. d. It examines the external labour market for needed skills.

14. Organization analysis, task analysis, and person analysis are all part of which of the following phases of the system model? a. the training and development phase

b. the analysis phase c. the needs assessment phase d. the evaluation phase

15. If you were responsible for developing a training program, which of the following should your first step be? a. create a suitable training environment b. select the proper training method c. conduct a needs assessment d. determine the specific instructional objectives

16. Instructional objectives might include all of the following phrases EXCEPT which of the following? a. “to repair leaking valves” b. “to appreciate diversity in the workplace” c. “to assemble components in the proper order” d. “to calculate the percentage of waste” 17. Organization A is grouping its employees before beginning a training program. The company will group them according to capability. What is this process called? a. trainee motivation b. trainee capacity c. trainee readiness d. trainee participation

18.

What is the relationship of goal-setting to feedback and reinforcement? a. Goal-setting and feedback are symbiotic. b. Goal setting and feedback are reciprocal in nature. c. They are both important principles of learning. d. Goal setting is useless unless employees know how they performed through constant feedback.

19. Which of the following tasks would be most conducive to whole-versus-part learning? a. for a tennis professional: teaching a tennis lesson b. for a cake decorator: putting a customer’s name on a birthday cake c. for a shoe salesperson: finding a certain pair of shoes in the stockroom d. for a grocery store cashier: looking up the register code for a grocery item 20. The absence of well-defined performance criteria is a particular problem for which of the following training methods? a. programmed instruction b. internship training c. apprenticeship training d. on-the-job training 21. Which of the following training methods is the most poorly implemented?

a. b. c. d.

on-the-job training distributed learning mass learning active learning

22. Which of the following people is most likely to be a successful trainer? a. Carlos is an enthusiastic, risk-taking, assertive person who loves teaching. b. Jonas is flexible and can adapt his instructions to suit the individual student’s needs. c. Natalia is good at clarifying instructions and adding humour to the situation. d. Claire is charming and intuitive and loves the subject she teaches.

23. Which of the following is the most common method used for training nonmanagerial employees? a. vestibule training b. computer-based instruction c. on-the-job training d. apprenticeships

24.

Organization Z is attempting to initiate an on-the-job training program. Like many organizations, the company is aware that it suffers from a lack of well-defined job performance criteria. Which of the following is the best suggestion for Organization Z to overcome this problem and have a successful program? a. develop realistic goals, a training schedule, and periodic evaluations b. hire trainers who have been in a similar situation and have been successful c. wait until proper job and organizational analysis can be done before implementing the training program d. use a different type of training 25. Which of the following types of learning methods would be best for a situation where the typical student has an unpredictable schedule and needs to be able to learn independently and at his or her own pace? a. the simulation method b. programmed instruction c. audiovisual learning d. on-the-job training 26. Which of the following types of learning methods would be well-suited to teach air-traffic controllers how use the radar display? a. the simulation method b. programmed instruction c. audiovisual learning d. on-the-job training 27. A combination of on-the-job training, seminars, and role-playing would be a good assortment of learning methods for which of the following groups of employees? a. new employees at all levels b. experienced front-line staff c. managers

d. interns 28. Programmed instruction allows individuals to learn at their own pace. Which of the following is another term for programmed learning? a. vestibule training b. e-learning c. simulated training d. self-directed learning

29.

What is the main issue with organizations putting too much weight on the “reactions” aspect of training evaluation? a. Unless the training is linked to organizational strategy, it is not informative that reactions were good. b. Positive reaction data may not mean the training was effective. c. This information has to be integrated into a analysis with the other four phases of evaluation. d. This aspect of training is not measurable.

30. Which of the following training methods is used to train personnel to operate aircraft, spacecraft, and other highly technical and expensive equipment? a. the simulation method b. the classroom method c. the vestibule method d. the apprenticeship method 31. Organization B is very keen to get the most benefit out of its training budgets and efforts. Which of the following plans is most likely to help Organization B’s employees utilize their new training when they are back at their desks? a. have employees hand in summaries of how they have used their training in their job b. devote a large part of the budget to vestibule training c. have the training mimic the actual work situation as closely as possible; train employees on how to implement their new training even when they are faced with roadblocks d. have employees exposed to both massed and distributed practice 32. Which of the following is useful information for an HR manager to use when demonstrating the utility of a training program? a. how many employees signed up for it b. how it helped to reduce wasted materials c. the average employee reaction to it d. how much transfer-of-training occurred 33. Which of the following is the term for grooming an employee to take over the supervisor’s job through gaining experience in handling important functions of the job? a. caretaking b. coaching c. understudy assignment d. role modelling

34.

Which of the following training methods consists of having the trainee assume the attitudes and behaviour of others? a. job rotation b. case study c. simulation study d. role-playing 35. Which of the following best represents the steps in behaviour modelling? a. learning points, implementation, role-play, and feedback b. design, learning points, reinforcement, and feedback c. learning points, modelling, role-play, and feedback d. design, implementation, role-play, and feedback 36. Which of the following techniques for training managers emphasizes handling real-life employee problems and to receiving immediate feedback? a. the leaderless group b. the management game c. the case study d. behaviour modelling 37. Do most organizations evaluate their training programs? a. Yes, this is a vital part of any HR manager’s role in an organization. b. Currently, only progressive organizations evaluate their training. c. Yes and no. It used to be that most did not, but this is changing due to the pressure that HR managers are under to demonstrate results. d. No, most organizations don’t find it worth the effort.

38. Which of the following is the best example of an assessment of the “learning” criterion in a training evaluation? a. testing grocery store clerks on training program knowledge before and after the training program b. having trainees fill in forms that describe their learning experience and whether or not the information is transferring to the workplace c. having employees fill out a training effectiveness index d. evaluating scores on training tests 39. When designers of training programs attempt to make conditions in the training program come as close as possible to those on the job, they are attempting to improve which of the following? a. motivation b. transfer c. readiness d. reactions 40.

Utility refers to which of the following? a. the usefulness of a training program b. the costs incurred for a training program c. training effectiveness in terms of increased outcomes

d. the benefits derived from training relative to the costs incurred 41. Which of the following is the process of measuring one’s own services and practices against recognized leaders in order to identify areas for improvement? a. industry analysis b. trend analysis c. benchmarking d. environmental analysis 42. Which of the following best represents the benefits of orientation programs? a. reduced theft and disruptive behaviours, lower turnover, and improved morale b. better teamwork, improved morale, and lower turnover c. higher performance, decreased waste, and improved morale d. lower turnover, increased productivity, improved morale, and reduction of anxiety

43. Which of the following is NOT one of the things a manager should do to implement a successful program in basic and remedial training? a. explain to employees why training will help them in their jobs b. use a classroom-oriented approach so employees learn by lectures c. provide feedback on employee progress d. relate the training to the employees’ goals 44. Which of the following represents the two forms of diversity training? a. employment equity and affirmative action b. past and future-oriented c. awareness building and skill building d. minority and non-minority 45. Which of the following organizations would be well-suited and likely to benefit from the implementation of “cross-training” of teams? a. a document delivery company that has drivers and pilots who operate various trucks and aircraft b. a robotics company that needs each employee to have specific and high level skills and training c. an auto parts manufacturing company that has an assembly line where employees are likely to get bored d. a photocopy shop where there are various tasks to be performed all with one machine 46.

Which of the following positions is most likely to benefit from implementing an ethics training program? a. a buyer of leather goods for a leading national retailer b. a medical professional c. an air traffic controller d. an HR manager

Chapter 8 Appraising and Improving Performance MULTIPLE CHOICE 1. What are performance appraisals most often used for? a. making compensation decisions b. creating a team environment c. to track down ineffective employees d. to create distance between managers and employees 2. Which of the following is NOT a developmental purpose of performance appraisal? a. recognizing individual performance b. validating selection procedures c. improving communication d. identifying an individual’s strengths and weaknesses

3. Why is performance appraisal important? a. because it is key to the validation of selection procedures, which are the foundation of all HR practices b. because all organizations need to weed out lower-performing individuals at a rate of about 10 percent of employees per annum c. because employees need to know that they are being evaluated in order to perform at an appropriate level d. because the success of the entire HR program depends on knowing how the performance of employees compares with the goals established for them

4. Which of the following are the two primary purposes of performance appraisals? a. informative and developmental purposes b. managerial and administrative purposes c. managerial and informative purposes d. administrative and developmental purposes 5. Which of the following is a typical reason that performance appraisal programs fail? a. Managers rely on their knowledge of the job instead of proper appraisal procedures. b. There is too much employee input into the development of the appraisal program. c. The program is usually based on a job analysis rather than a competency analysis. d. Managers often lack adequate appraisal skills.

6.

In developing a new performance appraisal system, Organization C made an appraisal plan, decided who would be doing the appraising, how it would be done, and even included appraisal training. Which one of the following is an important step that Organization C missed? a. clearly communicating in advance the company’s plans for employees who do not meet standards. b. gaining support from top management, which should occur near the beginning of the process c. informing employees how the process would go to alleviate anxiety d. examining the performance standards through job analysis

7. Which of the following represents why employees are concerned with the fairness of the performance appraisal system? a. The process is central to many HRM decisions. b. They usually disagree with their ratings. c. Their input is what makes it fair. d. A formal grievance process is required by law.

8. Which of the following is exemplified by a manager rating an employee higher than he or she deserves in order to look good as a manager in the eyes of the manager’s own superiors? a. criterion deficiency b. organizational politics c. criterion contamination d. administrative appraisal purpose 9. How does the strategic relevance of performance appraisal impact HR managers? a. It allows them to more clearly justify training expenses. b. It makes their job easier in that everyone is clear on objectives. c. It puts the onus on them to establish the strategic relevance of all their HR activities. d. It makes performance criteria much more useful, not just to HR managers but to the entire organization.

10. The strategic relevance of performance appraisals refers to which of the following? a. the extent to which standards relate to the overall objectives of the organization b. the extent to which standards capture the entire range of an employee’s responsibilities c. the extent to which individuals tend to maintain a certain level of performance over time d. the extent to which factors outside the employee’s control can influence performance 11. If a performance standard is found to be stable or consistent over time, it is said to be which of the following? a. free from contamination b. relevant c. reliable d. valid 12. A waitress’s performance is appraised on the basis of the quality of the food she delivers to the table. What is this an example of? a. criterion deficiency b. criterion contamination c. problems with the criteria d. criterion reliability

13. Suppose the performance appraisals that salespeople receive are based solely on sales revenue to the exclusion of other important factors. Which of the following would these performance evaluations suffer from? a. criterion contamination b. lack of reliability c. criterion deficiency d. lack of criterion relevance 14. Suppose the performance evaluations that delivery drivers receive are partially influenced by the fact that some drivers operate in areas where there are major traffic problems while others operate in areas with few traffic problems. Which of the following would these performance evaluations suffer from? a. criterion contamination b. lack of relevance c. lack of reliability d. rater bias

15. How is reliability in performance appraisal measured? a. by correlating ratings made by different raters b. by determining validity of performance standards c. by linking performance standards to organizational goals d. by quantifying performance standards 16. Which of the following has been shown to be true in court? a. Vague performance standards can be acceptable when clearly written. b. Organizations should have carefully defined and measurable performance standards. c. While performance standards should be somewhat specific, there should be room for individual interpretation. d. Descriptions of traits such as attitude and cooperation are acceptable performance standards.

17. Jay is a polite, helpful, conscientious employee who often helps his fellow auto sales representatives make sales and is popular with customers due to his customer service orientation. Based on his performance appraisal, which is focused on sales, Jay is being fired because he has not sold enough cars this month. Which of the following problems is at the root of his poor performance appraisal? a. criterion contamination b. lack of reliability c. criterion deficiency d. lack of relevance

18. In most instances, who is in the best position to perform the function of appraising an employee’s performance? a. someone from the HR department b. a co-worker c. the employee d. the employee's supervisor 19. Self-appraisals are best for which of the following? a. administrative purposes b. developmental purposes c. promotional purposes d. regulatory purposes 20. Which of the following appraisal sources is most useful when the manager and the employee jointly establish future performance goals for each employee? a. team appraisal b. peer appraisal c. subordinate appraisal d. self-appraisal 21. Which of the following processes would be most helpful to an organization that was suffering from lack of inter-rater reliability in appraising employee performance? a. rater training b. calibration c. job analysis d. performance appraisals of managers 22. TQM concerns have led to the increased use of which of the following? a. manager/supervisor appraisals b. team and customer performance appraisals c. self appraisals d. subordinate appraisals 23. What is the most important thing an organization can do to ensure that a performance appraisal process can withstand legal scrutiny?

a. Base the standards on a sound job analysis and make sure all involved know what the standards are. b. Make sure managers are not biased in their delivery of appraisal feedback. c. Use calibration and train the managers on how to deliver feedback. d. Make sure the tool is reliable.

24. Some organizations ask managers to place a percentage of their employees in the bottom performance category, which in some cases may mean they are fired, on every performance evaluation exercise. This is an example of which type of performance appraisal method? a. forced-distribution system b. checklist method c. percent method d. forced-choice method 25. What advantage do peer appraisals have over other types of appraisals? a. Peers know the job better than most managers do. b. Peers do not have a conflict of interest over honestly appraising a fellow employee. c. Peers may have a more intimate view of the performance of fellow employees. d. Peers don’t have to worry about meeting standards for distributions.

26. Which of the following is an important weakness of 360 feedback? a. In cases where feedback is not positive, it has been shown to increase voluntary turnover. b. It is hard to know what to conclude if the appraisal results in conflicting opinions. c. The quality of information is not as good as other types of appraisal systems. d. The training can be demoralizing because it is so intense.

27. Jane is manager to 10 direct reports. She is currently concerned that she is perceived as a softy and so she has decided not to give out very many high ratings on this year’s performance appraisal exercise. However, she doesn’t want anyone to be fired either, so she has decided not to give out any very low ratings either. Which of the following will Jane’s ratings suffer from? a. similar-to-self bias b. leniency error c. forced distribution d. central tendency error 28. Performance appraisal methods can be broadly classified as which of the following approaches? a. trait, behavioural, and judgmental b. trait, behavioural, and results c. behavioural, judgmental, and results d. behavioural, judgmental, and attitudinal 29. Which of the following rating formats uses three specific behavioural descriptions relevant to each trait and then asks supervisors to evaluate whether an employee’s behaviour is better than, equal to, or worse than the standard for each behaviour?

a. b. c. d.

mixed-standard scale forced-choice method behaviourally anchored rating scale behaviour observation scale

30. Every time Sandy makes a mistake at work, her manager writes it down in detail in her employee record. Sandy thinks this is a form of harassment. More likely, what is the manager trying to do? a. collect information in order to build a BARS b. substantiate her termination in case Sandy files a complaint c. evaluate her performance d. collect critical incidents 31. Which of the following is the primary limitation of the forced-choice method of appraisal? a. It is expensive to initially develop. b. Only highly trained raters can use the format. c. It does not lend itself to peer and self-ratings. d. It is expensive to establish and maintain its validity.

32. Which of the following is a major weakness of the behaviourally anchored rating scale (BARS)? a. Ratees are often offended by the anchors. b. It takes a long time and a lot of effort to develop. c. The anchors become outdated quickly because they are so specific. d. It takes a long time to fill out.

33. If your primary objective for a performance appraisal is to give employees developmental feedback, which of the following appraisal methods should you use? a. behavioural methods b. results methods c. trait methods d. attitudinal methods

34. Which of the following appraisal methods helps guard against recency error? a. critical incident method b. forced-choice method c. graphic rating scales d. mixed-standard scale 35.

Which of the following types of scale uses critical incidents as examples of different points along the scale? a. the mixed-standard scale b. the global rating c. the behaviourally anchored rating scale d. dimensional rating 36. Which of the following is a major advantage of a behaviourally anchored rating scale? a. It requires a great deal of employee participation, which leads to acceptance.

b. The rating scale can be used across many jobs. c. It takes a relatively short time to develop. d. It allows the appraiser to observe rather than judge.

37. Which of the following best describes a behaviourally anchored rating scale? a. It typically has construct validity. b. It typically has content validity. c. It can be used to rate employees across many different jobs. d. It costs the least to develop.

38. With which type of appraisal method would supervisors most likely be inclined to forego needed maintenance on their equipment? a. results methods b. 360-degree appraisal c. subordinate appraisal d. trait methods

39. Which of the following performance appraisal methods involves a mutual agreement of goals and metrics between supervisor and subordinate? a. all behavioural methods b. productivity measures c. forced distribution d. management by objectives

40. Which of the following appraisal systems is based on the concept that learning helps organizations improve their internal processes and allows individuals to see how their performance ties in with the firm? a. balanced scorecard approach b. 360-degree appraisal c. customer-oriented approach d. management by objectives

41. The HR managers at Organization M are very keen to tie all their HR practices in with organizational strategy and performance appraisal is no exception. They would like to make clear the link between individual performance and organizational performance. Which of the following is the best type of appraisal method for the HR managers at Organization M? a. trait-based methods b. results-based methods c. behaviour-based methods d. performance-based methods 42. The appraisal interview should be divided into two sessions. Which of the following best describes what those two sessions should contain? a. positive comments and negative comments

b. performance review and developmental planning c. performance review and compensation discussion d. establishing performance standards and reviewing performance

43. Which of the following is an essential component of an appraisal interview? a. It should take place in one session in order to give the employee a complete view of his or her performance b. It can be divided into two sections, though this is not advisable c. It is a time for the supervisor to give feedback on past performance and should not be used for developmental purposes d. It should be held in two segments because the rater must perform the role of both evaluator and counsellor 44. In delivering a performance appraisal interview, Manuel is attempting to convince his direct report that she needs to be more communicative with her peers about her work. The other aspects of her performance are excellent, so he is willing to provide incentives for her if she can improve in this aspect of her performance. Which of the following types of performance appraisal interview is Manuel delivering? a. tell-and-listen b. tell-and-sell c. tell-and-train d. problem-solving 45. In delivering a performance appraisal interview, Jacqui is taking a listening perspective. She wants to stimulate growth and development by discussing the problems, needs, satisfactions, and dissatisfactions the employee has encountered on the job. What type of performance appraisal interview is Jacqui delivering? a. tell-and-listen b. tell-and-sell c. tell-and-train d. problem-solving

46. Why would a manager ask an employee to do a self-appraisal before meeting for the performance appraisal interview? a. It makes the employee feel like he or she is involved in some small way. b. It ensures the employee knows evaluation criteria. c. It increases employee satisfaction. d. It is expected in certain industries through convention.

47. Which of the following is the most accurate description of the possible facets of an appraisal interview? a. minimize criticism, change the person not the behaviour, and encourage feedback b. change the person not the behaviour, minimize criticism, express appreciation, and invite participation c. ask for a self-assessment, invite participation, express appreciation, and minimize

criticism d. ask for a self-assessment, change the person not the behaviour, and encourage feedback.

48. How often should performance feedback be delivered? a. It should be done at least annually. b. It depends on the organizational culture, industry, and supervisor’s style. c. It should be done at regular intervals—the more frequent the better. d. It should be an ongoing, regular part of supervisor–subordinate interactions.

49. Which of the following is a major issue surrounding “stretch goals”? a. They demoralize the employee. b. They increase voluntary turnover. c. They could be considered unethical for several reasons. d. They cause disruptive behaviours to the point that they are more costly to the organization than they are financially advantageous.

50. Which of the following are NOT an environmental factor that may be a source of ineffective performance? a. rules and policies b. economic conditions c. boredom and lack of ability d. laws and regulations

51. Managers often first assume poor performance of subordinates is due to which of the following? a. inadequate training b. poor motivation c. external constraints d. lack of ability

52.

Which of the following is NOT an ability factor that may be a source of ineffective performance? a. interpersonal skill b. career ambition c. technical skill d. physical limitation

53. Which of the following is an accurate listing of the factors that affect performance? a. motivation, environment, and ability b. motivation, organizational culture, and traits c. organizational culture, motivation, and ability d. ability, job design, and motivation

Chapter 9 Managing Compensation MULTIPLE CHOICE 1. Which of the following is NOT a common goal of compensation policy? a. to punish employees for poor performance b. to reward employees’ past performance c. to maintain the budget d. to attract new employees

2. Some organizations can choose a strategy to pay higher than market wages and salaries. Which of the following will this NOT help them do? a. be more selective in their employee hiring b. reduce training costs c. retain valuable employees d. develop more advanced performance appraisals

3. Assume Microsoft wants to link its overall organizational strategy to its wage and benefit policies in the strategic plan. How can the company best do this? a. through the development of better performance standards b. through following federal strategic planning legislation c. through adhering to Harvard University’s Professor Porter model d. through formalized compensation goals

4. York University has developed a merit-based pay system for its professors, in addition to other forms of pay. Which of the following terms refers to this type of merit-based pay? a. value-added compensation b. pay-for-performance c. pay equity d. indirect compensation 5. Which of the following best describes the pay-for-performance? a. It ties compensation to employee effort and performance. b. It is easy to implement and measure. c. It ties rewards to employee attitudes. d. It usually results in negligible increases in output.

6. The term pay-for-performance can encompass all of the following EXCEPT which one? a. merit-based pay b. base salary c. bonuses d. gainsharing programs 7. Which of the following is a major challenge in designing a sound pay-for-performance system?

a. b. c. d.

getting the firm to agree to this pay system generating revenues to compensate for the costs of the program deciding how to measure performance getting the government to agree to the pay system

8. Both Sam and Samantha work as cashiers at Modelo Hot Dogs. They do work of equal value to the firm; yet, Sam receives less pay than Samantha. Sam is not happy because he perceives the system as being unfair to him. Which of the following theories can you use to explain Sam’s perceptions? a. reverse discrimination theory b. pay equity theory c. expectancy theory d. equity theory

9. Which of the following terms refers to paying wages that are relatively equal to the value of the work being performed? a. comparable worth b. pay equity c. compensable factors d. equal pay

10. One’s level of motivation depends on the attractiveness of the rewards sought. Which of the following refers to the probability of obtaining those rewards? a. expectancy theory b. equity theory c. instrumentality d. internal equity 11. Which of the following is a key implication of expectancy theory when applied to pay systems? a. Employees must get pay raises to cover increased living costs. b. Employees expect their managers to be competent. c. Employers expect their employees to be competent. d. Rewards must be valuable for motivation to occur.

12. Which of the following can pay secrecy NOT do? a. generate distrust in the compensation system b. reduce employee motivation c. inhibit organizational effectiveness d. generate feelings of commitment

13.

Vidya works at Paymore Shoes and is paid for time she works in the store. Which of the following is she? a. a salaried employee b. an hourly employee c. an exploited employee d. a white-collar employee

14. Which of the following is an internal factor that can influence the rates at which employees are paid? a. labour market conditions b. collective bargaining c. the employer’s ability to pay d. the cost of living

15. Which of the following is an external factor that can influence the rates at which employees are paid? a. the worth of the job b. the employees’ relative worth c. the employer’s ability to pay d. the cost of living 16. In a unionized environment, how is pay for employees in the bargaining unit normally determined? a. through escalator clauses b. through collective bargaining c. through pay equity d. through market evaluations with other all unions

17. Which of the following is the measure of the average change in prices over time in a fixed “market basket” of goods and services? a. a cost of living allowance b. a cost of living adjustment c. the consumer price index d. the inflation index 18. Which of the following clauses are found in some labour agreements that periodically adjust compensation rates to reflect increases in cost of living? a. maintenance clauses b. escalator clauses c. roll-up clauses d. guarantee clauses 19.

For real wages to increase, which of the following is necessary? a. An employee’s wage increase must be greater than the increase in the CPI. b. An employee must receive a lump-sum wage increase equal to the increase in the CPI. c. An employee’s wage must simply increase. d. The CPI must increase at least as much as the employee’s wage.

20. How far do the impacts of collective bargaining extend? a. to hourly employees only

b. to both hourly and management employees c. beyond the segment of the labour force that is unionized d. to both exempt and nonexempt employees 21. Job evaluation helps to address issues dealing with which of the following? a. employees’ need for pay that reflects cost of living increases b. employees’ perceptions of equity c. employers’ need to match the market pay d. employers’ perceptions of unfair jobs 22. Which of the following is NOT a method of comparison used in job evaluation? a. job worth system b. job ranking system c. job classification system d. point system 23. Which of the following is NOT a disadvantage of the job ranking system? a. It does not provide a very refined measure of the job’s worth, since the comparisons are made on the basis of the whole job. b. The final rankings of jobs do not indicate the relative importance of the jobs. c. Its simplicity makes it suitable for smaller employers. d. It should only be used with nonexempt jobs.

24. What is job classification often used to help determine pay for? a. merit bonuses b. CEO pay c. classified university professors’ jobs d. government jobs

25. Which of the following is a quantitative job evaluation procedure that determines a job’s relative value on the basis of quantitative assessments of specific job elements? a. the point system b. job ranking c. the factor comparison method d. the job grade system 26. To help achieve internal equity, factors such as skills, effort, responsibilities, and working conditions may be used to assess jobs. Which of the following terms refers to these factors? a. job specifications b. job classification factors c. compensable factors d. factor comparisons

27. According to your text, which of the following job evaluation methods is considered the most valid? a. job ranking b. the point method c. the classification method d. the factor comparison method 28. Using the point manual, how is the relative worth of a job determined? a. by benchmarking jobs contained in the point manual b. through the wage mix c. by the number of steps within the pay grade d. by the total points that have been assigned to that job

29. In the development of a factor comparison scale, key jobs are NOT normally ranked against which of the following factors? a. skill b. performance c. mental effort d. responsibility

30. Which three factors does the Hay profile method use for evaluating jobs? a. knowledge, skill, and responsibility b. responsibility, mental activity, and skill c. responsibility, knowledge, and mental activity d. knowledge, accountability, and mental activity

31. Crystal Ball Inc. is a large information technology firm with many levels of management. The company would like to compensate its managers on factors such as knowledge and accountability.

Which of the following systems would you recommend? a. market pricing b. the Hay profile method c. job classification as implemented in Microsoft d. work valuation 32. In geography, the water catchment area or watershed refers to the area that channels or supplies a specific area with its water. Catchment areas divide drainage basins. In wage surveys, what is this catchment area similar to? a. the labour market b. the region c. the recruiting area d. the supply region

33. Ontario Hydro is seeking a senior-level engineer too help with its operations; what is the relevant labour market to be surveyed? a. regional b. local c. national d. tight 34. Which of the following types of equity do wage and salary surveys permit an organization to maintain? a. internal b. distributive c. external d. salary 35. What do companies normally use to collect wage survey data? a. key jobs b. low-rated jobs c. high-rated jobs d. strategic jobs 36. In developing a wage curve, what are market wage rates plotted against? a. market survey data b. employee benefits c. the size of a firm d. the point value of jobs 37. Accounting clerks, pay clerks, and junior secretaries are all classed in Grade 2 at Metroland Inc. What should apply to all these jobs? a. They should all receive the same wage rate in order to achieve equality. b. They should be paid within the same pay range. c. They should be paid similar to Grade 2 jobs at McDonald’s. d. They should be paid at different wage rates because the worth of these jobs to the

organization may differ.

38. What should employers do if they wish to encourage employees to accept a promotion to a job in a higher grade? a. increase the size of successive rate ranges b. increase the point spread of pay grades c. decrease the size of successive rate ranges d. decrease the point spread of pay grades 39. Why can red circle rates to result above the maximum for the pay range? a. Promotional opportunities are plentiful. b. The relevant jobs may have been evaluated too high previously. c. Employees are demoted. d. Grades are added to the range.

40. Tiffany works as an IT specialist at Nortel. She is compensated based on such skills as programming and service to clients. It is likely that she is paid under which of the following pay plans? a. a competence-based pay plan b. a performance-based pay plan c. a merit-based pay plan d. a seniority-based pay plan 41. According to your text, which of the following is the predominant approach to employee compensation? a. pay-for-performance b. competence-based pay c. job-based pay d. individual contract 42. Which of the following is NOT a potential challenge to competence-based pay? a. limits by organizations to how much employees can earn despite their competencies b. reluctance by employees to participate in relevant training c. the development of appropriate measures of skills and competencies d. staff flexibility

43.

Which of the following pay systems would an organization wishing to establish greater jobstaffing flexibility most likely use? a. straight pay b. competence-based pay c. incentive pay d. two-tier pay

44. Which of the following is the most likely outcome of collapsing many salary grades into a few wide salary bands through broadbanding? a. It reduces pay levels.

b. It encourages lateral skill building. c. It reduces the number of employees needed. d. It leads to a collapse of broadbands.

45. Woolite Fabrics is located in Vancouver, British Columbia. Which of the following laws regulate its compensation? a. federal and international laws b. municipal and federal laws c. provincial and federal laws d. international laws 46. Jambrone Foods and CUPE Local 5000 have a collective agreement in place that allows for wages to be paid at more than the minimum wage set by the Employment Standards Act. Which of the following describes this agreement? a. illegal b. legal c. legal but stupid d. acceptable under the Employment Standards Act but illegal under the Canada Labour Code

47. The major provisions of which of the following acts are concerned with minimum wage rates and overtime payments? a. Equal Pay Act b. Employment Equity Act c. Employment Standards Act d. Pay Equity Act

48.

Desirée is a female receptionist employed by York University in Toronto. John is a male janitor with the same employer. Both jobs are evaluated as having 500 points, yet Desiree is paid less than John. She has decided to legally challenge the employer. Which of the following is relevant in this case? a. the Peter principle b. market matching c. equal pay for work of equal value d. equal pay for equal work

49. How may organizations dodge comparable worth issues? a. by paying female and male secretaries the same wage b. by having an employment equity program in place c. by using one job evaluation system for clerical jobs and another system for other jobs d. by having a valid performance appraisal system

50. As the year 2000 approached, many organizations hired “young” and “inexperienced” information technology (IT) specialists to help address the Y2K problem. Many of these new hires were paid high compensation that brought them very close to the compensation earned by experienced IT specialists working with these companies. Which of the following can such a practice lead to? a. wage inversion b. pay equity c. wage-rate compression d. high turnover across the board

51. Which of the following is NOT an outcome of wage-rate compression? a. increased employee performance b. low employee morale c. delinquent employee behaviour d. increased absenteeism

52. Which of the following is NOT an idea that organizations may incorporate in an attempt to minimize the problem of wage-rate compression? a. giving larger increases to more-senior employees b. emphasizing pay-for-performance c. providing equity adjustments for employees hardest hit by pay compression d. linking all employees’ pay more tightly to the CPI

Chapter 10 Pay-for-Performance: Incentive Rewards MULTIPLE CHOICE 1. Why are some compensation plans referred to as variable pay? a. because employee pay varies with market pay b. because employee pay is comprised of varying components c. because employee pay is linked to performance d. because employer costs vary with the incentives offered ANS: C 2. According to research, which of the following best describes incentive plans? a. They can contribute to organizational performance if certain conditions are met. b. They usually improve organizational performance by at least 10 percent c. They usually lead to negative outcomes such as confusion and competition. d. They tend to drive up organizational costs and decrease profits because more pay has to be given to employees.

ANS: A 3. Which of the following is NOT a reason given by organizations for implementing incentive plans? a. to improve or maintain high levels of productivity b. to focus employee efforts on specific performance targets c. to link compensation rewards to the achievement of results

d. to increase employee benefits ANS: D 4. Which of the following is NOT likely to help an incentive plan succeed in an organization? a. identifying important organizational metrics that encourage employee behaviour b. involve employees—incentive programs should seem fair to employees c. finding the right incentive payout d. ensuring that employees believe that performance standards are unachievable ANS: D 5. Why are performance measures vital in incentive plans? a. because they communicate the importance of the organizational goals b. because they ensure fair pay for women c. because they drive profitability d. because they are fair and equitable ANS: A

6. When setting performance measures for incentive systems, what can we say about the best measures? a. They are quantitative, simple to understand, and show a clear relationship to improved performance. b. They are qualitative, flexible, and create competition between employees. c. They are those measures that allow employers to “ratchet up” standards and base rewards on qualitative standards. d. They are unattainable in order to inspire increased levels of performance.

ANS: A 7. When employees receive a higher rate of pay for all of their work if production exceeds a standard level of output, which incentive plan are they are working? a. differential piece rate b. standard piece rate c. exception bonus rate d. individual rate pay ANS: A 8. If the standard time for producing one unit of work in a job paying $5.00 per hour were set at 6 minutes, what would the piece rate be? a. $1.00 per unit b. $1.50 per unit c. $0.50 per unit d. $0.75 per unit ANS: B 9. Which of the following is an advantages of piece rate pay systems? a. They allow for teamwork. b. They have a direct link to performance. c. They help to groom better managers. d. They allow employees to break down their work piece by piece.

ANS: B 10. At Steelcase, an office furniture maker, employees can earn more than their base pay if they produce more units, such as upholster more chairs. This part of their pay is determined on units produced. Which of the following plans is being used here? a. piece-rate plan b. completion pay plan c. time division plan d. standard hour plan ANS: A 11. Several organizations have an incentive that managers can give to their employees for outstanding singular effort not tied to any planned performance standard. What is such an incentive usually called? a. a stock option b. a spot bonus c. merit pay d. a differential piece rate

ANS: B

12. Which of the following would NOT be the basis for a merit raise? a. achieving an objective performance standard b. superior’s subjective evaluation c. gain sharing decisions d. successfully performing the job ANS: C 13. Which of the following is NOT a problem with merit raises? a. Employees expect the raise even when performance declines. b. Employees do not trust management. c. The raise may be based on favouritism. d. The raise may be based on achieving an objective standard.

ANS: D 14. There are many potential errors, as well as discrimination, that can occur in the performance appraisal process. Which of the following can such errors lead to? a. problematic stock options b. problematic merit pay c. problematic job evaluations d. problematic market pay rates ANS: B 15. Which of the following is NOT a reason that merit raises may fail to achieve their intended purpose? a. The performance appraisal system is deficient. b. Merit raises may be based on seniority or favouritism. c. Incentive rewards are linked to organizational goals. d. Employees are unable to differentiate between merit and other pay increases.

ANS: C 16. Which of the following would NOT be a problem with merit raises? a. if they are based upon objective, measurable criteria b. if they are based upon the rise in the cost of living c. if they are based on subjective performance appraisals d. if they are tied to the length of service of the employee ANS: A 17. Jim Jones received a $500 pay bonus as a result of his job performance last year; however, this extra money was not added to his base pay. This is an example of which of the following? a. annual merit raise b. group incentive plan c. lump-sum merit pay d. percentage wage increase ANS: C

18. Elizabeth received a stellar performance appraisal in 2008, which translated to a 10 percent pay raise for the next year. Her 2008 base pay was $50,000. Which of the following applies to 2009? a. Her employer would give her a bonus of $5,000. b. Her pay would remain $50,000 but she would most likely get a promotion. c. Her employer would add 10 percent to all her 2008 compensation components—base pay, incentives, benefits, and perks. d. $5,000 would be added to her 2008 base pay.

ANS: D 19. Which of the following is an advantage of merit increases on a lump-sum basis? a. They do not contribute to escalating base salary levels. b. They add a permanent sum to the base salary. c. They are done in conjunction with promotions. d. They reflect annual adjustments in base salary.

ANS: A 20. Naveen works as a sales representative for Rogers Pet Foods. He is on a commission plan. His individual performance has been steady over the past few months but he has noticed a decline in his pay. Which of the following is NOT a likely cause for Naveen’s pay decline? a. Changes in the economy. b. Increased competition from rival pet food suppliers. c. His intrinsic motivation. d. Seasonal fluctuations in the demand for pet food.

ANS: C 21. Saturn, the auto firm, has a sales incentive plan that permits salespeople to be paid for performing various duties not reflected immediately in their sales volume. What is this type of pay plan? a. a merit plan b. a straight salary plan c. lump-sum merit pay d. a standard hour plan ANS: B 22. Which of the following is a pay plan that only compensates sales employees based on a percentage of sales? a. straight ratio plan b. straight salary plan c. straight commission plan d. straight bonus plan ANS: C 23. Which of the following often applies to professional employees? a. They cannot advance in salary beyond a point without taking on administrative duties. b. They cannot participate in profit-sharing plans. c. They cannot own stock due to conflict of interest. d. They can fully utilize their professional skills only after being promoted.

ANS: A

24. How is the base pay for CEOs largely established? a. through job evaluations b. through their education and experience c. through the levels of competitive salaries in the job market d. through the time spent in the occupation ANS: B 25. Given that the CEO is the chief executive and decides on most, if not all, major decisions of the firm, who usually sets his or her pay? a. the vice-presidents or the second level of executives under the CEOs b. the shareholders of the firm c. the unions through collective bargaining d. a compensation committee ANS: D 26. Last year, many CEOs of Canada’s largest companies earned less than $300,000 base pay, yet their overall compensation was on average more than $10 million. What was the major reason for the huge overall pay? a. executive perquisites b. stock options c. bonuses d. benefits ANS: B 27. Where does the emphasis on stock options and executive stock ownership come from? a. executives’ desire for deferred bonuses b. shareholders’ desire for dilution c. competitive pressures to find creative ways to compensate executives d. the desire of the company and investors for senior managers to have a stake in the success of the business ANS: D 28. It was revealed in the press that the former CEO of a Fortune 100 firm enjoyed special use of the company plane and a country club membership as a part of his reward package. Which of the following best describes these benefits? a. They are illegal, but executives usually get away without being caught. b. They are known as perquisites. c. They are known as golden parachutes. d. They are unusual for top executives.

ANS: B 29. Which of the following is a major concern about executive compensation? a. the timing of the bonus b. the growing gap between leaders and the company’s lowest-paid employees c. the lack of perquisites d. the lack of objective market data

ANS: B

30. Which of the following is NOT a reason that team incentive plans have grown more popular? a. There is emphasis on cost-reduction. b. Teamwork is important. c. Coordination among workers is important. d. Unions have demanded team incentive plans.

ANS: D 31. Which of the following is a problem with creating team incentive plans? a. They encourage cooperative rather than individualistic behaviour. b. Not all teams are alike. c. They enable employees to share efficiency gains. d. They pay only when agreed-upon standards are met or exceeded.

ANS: B 32. Which of the following is NOT an important component of a meaningful gainsharing plan? a. establishing fair and precise measurement standards b. ensuring that bonus payout formulas are easy to calculate c. ensuring that bonus payouts are large enough to encourage future employee effort d. registering the plan with appropriate federal authorities ANS: D 33. In the Scanlon Plan, how is employee participation primarily achieved? a. through screening and shop committees b. through financial committees c. through suggestion boxes d. through management committees ANS: A 34. What is the philosophy behind the Scanlon Plan? a. Rewards are shared with employees based on improved profits. b. Employees should offer ideas and suggestions to improve productivity and, in turn, be rewarded for their constructive efforts. c. Organizational profits should improve through sales efforts. d. Managers and employees should establish quality and quantity goals for optimum organizational performance.

ANS: B 35. Peter Drucker, the management expert, has argued that CEO pay should not be more than 20 times that of the rank-and-file employee. What did his concern focus on? a. the pay gap between CEOs and employees b. the perks that CEOs enjoy c. the need to raise the minimum wage for workers d. the relative basic education of executives versus the increasing sophistication of

employees’ knowledge ANS: A

36. Which of the following is suggested by research? a. Profit sharing accounts for the large increases in CEO pay. b. Some increases in CEO pay reflect improved performance levels of their firms. c. Annual bonuses contribute more than 50 percent of total CEO pay. d. Team incentives encourage an individualistic spirit among employees.

ANS: B 37. How does the bonus given to employees under Improshare differ from that given under the Scanlon Plan? a. It is based on individual merit. b. It is based on productivity gains resulting from a reduction in production time. c. It is based on dollar savings. d. The organization does not share in the gains.

ANS: B 38. Which of the following pay plans can be plagued by the “free-rider” effect? a. piece rates b. team incentives c. base pay d. retirement plans ANS: B 39. A new start-up firm wants to encourage team behaviours and a “culture of ownership” among all employees in the organization. Which of the following pay plans would you advise against? a. profit sharing b. stock options c. differential piece rates d. employee stock ownership plans ANS: C 40. Which of the following best describes profit sharing? a. The employer pays employees an incentive based on their merit. b. The employer pays employees an incentive based on labour cost savings. c. The employer pays employees a bonus based on the overall productivity of their particular work group. d. The employer pays employees a special current or deferred sum based on the profits of the enterprise.

ANS: D 41. What is the purpose of a profit-sharing plan? a. to allow workers to contribute ideas and suggestions b. to motivate a total commitment to the organization as a whole c. to enable workers to share in labour cost savings d. to instill commitment to the employee’s immediate work group ANS: B

42. Which of the following is NOT a weakness of profit-sharing plans? a. They cause intense competition at the individual employee level. b. Profits shared may be affected by external economic factors. c. The line of sight between reward and individual performance is weak. d. The performance of other firms on the stock market may affect profits.

ANS: A 43. Profit-sharing plans represent one way that wealth can be redistributed at which of the following levels? a. the firm level b. the regional level c. the national level d. the international level ANS: A 44. Recently, stock options have been strongly criticized in the press following controversies at several companies. What has this criticism focused on? a. the comparative low executive base pay b. the amount of the options granted and exercised c. the fact that mainly males are CEOs and that they get these options d. the stock prices in competitive firms ANS: B 45. Which of the following is NOT an advantage of ESOPs? a. Firms can reward employees with shares. b. The employees’ pensions are less vulnerable due to diversification. c. ESOPs can increase employees’ pride of ownership. d. ESOPs can provide an incentive for employees to increase productivity.

ANS: B 46. Which of the following is a major problem of ESOPs? a. Employees may become demotivated and frustrated if the share price falls, even though they have worked productively. b. ESOPs place employees’ pensions at risk because they are tied to the market performance of the organization. c. Because of the cash involved, ESOPs can be damaging to the financial well-being of the organization. d. Employees view the ESOP as a form of management control.

ANS: A 47. In stock option plans, what does the difference in the grant price and the exercised price represent? a. profits to the firm b. the gains by the stock option c. a loss to the firm d. the earnings through profit sharing ANS: B

Chapter 11 Employee Benefits

MULTIPLE CHOICE 1. A large portion of an organization’s total payroll is devoted to employee benefits and this figure has risen over the past few decades. Which of the following has NOT contributed to this increasing cost? a. additional benefits offered voluntarily by organizations b. legislation forcing employers to establish some benefits c. the use of online, interactive benefits programs d. employers trying to match the competition ANS: C 2. Which of the following is a key reason why employers need to communicate the extent and value of the benefits they provide? a. This is required by the law. b. Employees generally underestimate the value of the benefits offered. c. It immediately reduces the overall costs. d. The HR department needs this information for its newsletters.

ANS: B 3. Which of the following would NOT be considered a primary objective of most benefits programs? a. reducing turnover b. improving employee satisfaction c. retaining top-performing employees d. attracting and motivating employees ANS: A 4. Which of the following do employers often use to obtain employee input regarding benefits packages? a. performance appraisals b. opinion surveys c. union reports d. psychological tests ANS: B 5. Susie Jones has definite preferences in terms of the benefits offered by her employer. Susie will be able to select the benefits she values highly and avoid those she does not need or want if her employer offers which benefit format? a. an employee selection plan b. a flexible benefits plan c. a benefit pool d. a modified benefits system ANS: B

6. How has the diverse workforce impacted benefits programs? a. by requiring benefit programs to consider family-friendly options b. by requiring lower out-of-pocket costs for employees c. by requiring greater pension contributions by employers d. by requiring benefits packages to cover part-time as well as full-time employees ANS: A 7. Which of the following best describes flexible benefit plans? a. They are offered to employees who then must purchase each benefit they select. b. They are favoured by employers because they reduce administration costs. c. They are offered as a bonus to executives. d. They allow employees to choose benefits suited to their needs.

ANS: D 8. Which of the following is a fast, convenient, and interactive way employees can learn about or change their benefits? a. a benefits information packet b. personal benefit profiles c. infrequent information stations d. employee self-service (ESS) systems ANS: D 9. Ideally, which of the following should apply to an organization’s benefits system? a. It should mirror that of the competition, so as to attract top applicants. b. It should be restricted to mandatory benefits. c. It should be aligned to the overall strategy of the organization. d. It should be more than 50 percent of payroll costs, so as to be competitive.

ANS: C 10. Bob Sankar, an accountant at ABM Media Inc., earns below market compensation but continues to work with the organization because of its excellent retirement benefits. In this instance, which benefits objective is most relevant? a. cost effectiveness b. pay competitiveness c. attraction d. retention ANS: D 11. Which of the following statements does NOT describe management concerns about benefits? a. Management is concerned with union demands. b. Management is concerned with tax consequences. c. Management is concerned with the escalating cost of health care benefits . d. Management is concerned with promoting a shift from a self-responsibility to entitlement mindset.

ANS: D

12. Management at ABC Inc. wants to introduce a new benefit that is not required by law. Which of the following should it do first? a. develop an HRIS system to help with its administration b. establish that there is a need for it c. lobby the government to make it mandatory d. hire a consulting firm to roll it out ANS: B 13. Legally required employee benefits amount to 12 percent of the benefits packages that Canadian employers provide. Which one of the following benefits is not required? a. employer contributions b. employment insurance c. workers’ compensation insurance d. retirement savings ANS: D 14. Which of the following is NOT a benefit provided under CPP/QPP? a. retirement pensions b. sick leave benefits c. survivors’ benefits d. disability benefits ANS: B 15. Many organizations use the services of professional benefits vendors to administer their benefits. What is this is a form of? a. freelancing b. merger c. outsourcing d. employee empowerment ANS: C 16. Which of the following statements does NOT describe workers’ compensation? a. All employers pay the same premium rate to be eligible for workers’ compensation. b. Employers share collective liability, though contributions may vary among employers in the same industry. c. Workers’ compensation is based on loss of earnings. d. The system is no-fault and nonadversarial, and thus offers no recourse to the courts.

ANS: A 17. Great Parcel Inc. has numerous office locations across Canada, including isolated areas with no access to the Internet. Which of the following would be the most efficient way to communicate a new benefit to all its employees? a. online modules b. a meeting in a central location c. trips by the organization’s top executive team to all the locations d. payroll inserts ANS: D

18. Which of the following is NOT necessary for an organization to consider when developing its benefits program? a. the associated costs b. tax consequences c. benefits other employers offer d. the globalization of benefits ANS: D 19. The Meat Shop, one of Canada’s best employers according to a recent survey, is considering ways to contain its rising benefits costs. Which of the following is NOT a wise option? a. making contribution changes, such as deductibles b. putting dollar limits on some benefits c. instituting flexible benefits d. making cuts to mandatory benefits ANS: D 20. The growth in health care costs can be attributed to a number of factors. Which of the following is NOT one of those factors? a. an aging population b. costs associated with technological advances in medicine c. overuse of costly health care services d. the mandatory retirement age ANS: D 21. Which of the following usually increases the costs of benefits? a. outsourcing b. the adoption of flexible benefits c. an increase in base pay d. the use of deductibles ANS: C 22. Holiday pay, sick leave, and vacation pay are examples of which of the following? a. payment for time not worked b. benefits required by law c. categories of health care benefits d. unearned benefits ANS: A 23. Bob Jones has just been permanently laid off from his present position. His company, ACME Manufacturing, has issued Bob a cheque that represents one month’s pay for every year Bob worked at ACME. What is this cheque? a. Bob’s unused vacation pay b. Bob’s unused holiday pay c. Bob’s severance pay d. Bob’s unused sick leave ANS: C

24. A key issue in the 2009 Toronto municipal workers’ strike related to the use of banked sick days.

Accumulation of sick days is generally regarded in the literature as which of the following? a. part of an incentive plan b. pay for time not worked c. a mandatory benefit d. a form of pension ANS: B 25. Omar Morales, an older employee, is considering an early retirement package that his employer has offered; it includes improved benefits and cash bonuses. Which of the following applies to this inducement? a. It is called a silver handshake. b. It is called a golden parachute. c. It is called a platinum cushion. d. It is called severance pay.

ANS: A 26. Which of the following is NOT a common reason why employees take early retirement? a. health b. personal finances c. job satisfaction d. executive perquisites ANS: D 27. Polaroid allows employees the opportunity to try out retirement with a leave program, or gradually reduce their work hours as they approach retirement age. This is an example of which of the following? a. severance leave b. a pre-retirement program c. family-friendly benefits d. CPP/QPP ANS: B 28. The collective bargaining agreement between ACME Inc. and the union CUPA 1003 Local requires the employer to provide a limited vision care package. Workers are demanding more. Who will determine any new package? a. the union and the government b. the government c. the employer and the union d. the employer ANS: C

29. Most pension plans are now viewed as providing deferred income that employees accumulate during their working life and that belongs to them after a specified number of years of service. Which of the following is this view based on? a. provincial law b. a pay-as-you-go philosophy c. a reward philosophy d. an earnings philosophy ANS: D 30. Bob Jindal works for RAY Vision Inc. The employer deducts money every month from his paycheque for his pension plan. RAY Vision matches this amount for his pension. What type of plan is this? a. a defined benefit plan b. a defined contribution plan c. a contributory plan d. a noncontributory plan ANS: C 31. Tommy Lee remembers his grandfather telling him how working in the coal mines was a tough job and that if you left the employer before retirement age, you did not get your pension. Which of the following applies to this type of pension? a. It is a form of reverse discrimination. b. It is based on a reward philosophy. c. It is a defined benefit plan. d. It is based on an earnings philosophy.

ANS: B 32. Stella Vickram will receive a pension of $2,500 per month if she continues to work with ABC Media until she retires. She is now 45 years old. What type of plan is this? a. a contributory plan b. a noncontributory plan c. a defined contribution plan d. a defined benefit plan ANS: D 33. In Canada, registered retirement savings plans (RRSPs) have grown significantly over the past few years.

Which of the following is a key reason for this growth? a. Minimum wage earners now have more disposable income and they are contributing. b. The funds accumulate tax-free until they are withdrawn. c. The rich–poor gap is narrowing, thus people have more money to invest. d. RRSPs are a part of stock plans—which are growing.

ANS: B 34. Which of the following types of pension plan, with fixed payouts, is falling out of use? a. contributory plan b. registered retirement savings plan (RRSP) c. defined benefit plan d. defined contribution plan

ANS: C 35. James Callaghan has worked full-time for BC Metals for four years. He has learned from the HR manager that his earned pension benefits cannot be revoked by the employer. Why is this so? a. because the employer expects him to work until retirement b. because the benefits are vested c. because the union would strike if they are revoked d. because the benefits are defined ANS: B 36. From a pension perspective, which of the following is a key issue concerning the aging of baby boomers in Canada? a. There are more demands for dental benefits. b. Baby boomers are leaving management, thus there is a loss to the HR managers who oversee this benefit. c. There are fewer contributions to the pension fund by younger generations and more withdrawals for funding pensions for baby boomers, thus putting the fund at risk of depletion. d. Younger generations are demanding reduced pensions for those leaving the workforce.

ANS: C 37. What does vesting guarantee? a. withdrawal of benefits at any time b. accrued pension benefits at retirement age c. automatic funding of pension plans d. selection of pension options ANS: B 38. Employer-sponsored employee assistance programs (EAPs) are created to help workers overcome hurdles in their personal lives. Which of the following employees is the most likely to receive help under a typical EAP? a. John Jones, who needs assistance to overcome a chemical dependency problem. b. Steve Brown, who needs legal help in a personal bankruptcy proceeding. c. Cindy Savage, who needs a list of qualified day-care facilities near the office. d. Kate Johnson, who needs help choosing an appropriate M.B.A. program.

ANS: A 39. How are child-care programs and elder-care programs similar? a. Under both programs, most of the caregivers are men. b. Both types of programs typically offer on-site care facilities. c. Both programs try to maintain or increase productivity by assisting employees with their responsibilities outside the workplace. d. Both programs offer substantial income tax benefits to employees.

ANS: B 40. Which of the following is NOT a potential advantage of family-friendly benefits? a. They help to attract valuable employees. b. They provide higher base pay, which helps with family budgets.

c. They allow employees to manage their time better. d. They help to reduce workplace interruptions that affect productivity.

ANS: B 41. Which of the following is NOT a way that recessions and financial crises affect benefit programs? a. They lead to increased use of psychological counselling programs. b. They cause increases in unemployment benefits. c. They lead to increased benefits from charities. d. They often lead to increased use of referral services for alcohol and drug problems.

ANS: C 42. Which of the following is NOT an example of family-friendly benefits? a. employer-provided child-care services b. flexible work hours c. subsidized dependant care d. increased over-time requirements ANS: D 43. Which of the following is NOT a benefit of family-friendly programs? a. increasing the risk of unionization b. reducing tardiness c. improving productivity d. reducing employee absenteeism ANS: A 44. Which of the following is based on the theory that work-related accidents and illnesses should be considered as a cost of doing business and that employees should not bear the costs of their treatment? a. workers’ compensation insurance b. paid sick time c. medical care benefits d. unpaid leave ANS: A 45. Canada has experienced a growth in the proportion of part-time workers (versus full-time) over the past decade. Which of the following is a key reason for this growth? a. Many full-time jobs are outsourced overseas. b. The government is forcing firms to hire on a part-time basis. c. Unions prefer workers to have part-time jobs. d. Employers tend to save on compensation costs as many part-time workers do not receive voluntary benefits.

ANS: D

Chapter 12 Safety and Health

MULTIPLE CHOICE 1. In 2002, there were 900 workplace-related deaths—an average of four Canadian workers dying every working day. Given that there were 366 days in 2002, should this figure be lower? a. Yes; 900/366 is approximately 2.5 deaths per day. b. Yes; many of these deaths are based on fraudulent claims. c. No; you have to subtract weekends, statutory holidays, and so forth, to get working days. d. No; it should be higher because many deaths are not reported.

ANS: C 2. Not so long ago, many workers were seriously affected through contact with asbestos in workplaces.

What is this an example of? a. occupational illnesses b. occupational injuries c. management negligence d. industrial diseases ANS: A 3. In Alberta, which of the following bodies regulate occupational health and safety? a. the Alberta provincial government only b. the federal and Alberta governments c. the federal government only d. the governments of Canada and all the provinces, including Alberta ANS: B 4. Tom Jones was recently injured on the job at ABC Steel Factory. Whose responsibility is it to report the accident to the Workers’ Compensation Board? a. Tom Jones b. Tom Jones’s co-workers (because Tom Jones may be injured and cannot make the report immediately) c. the government’s safety officer d. ABC Steel Factory ANS: D 5. Which of the following is NOT a worker’s responsibility related to safety? a. to advise on potential workplace hazards b. to report hazardous conditions or defective equipment c. to follow all employer safety and health rules and regulations d. to exercise discretion in the use of protective equipment ANS: A

6. Under health and safety legislation, which of the following are employers NOT required to perform? a. take every reasonable precaution to guarantee worker safety b. ensure that workers use or wear safety equipment, devices, or clothing c. discipline employees who refuse to do work they believe is unsafe d. inform their employees about health and safety requirements ANS: C 7. What do joint health and safety committees consist of? a. management representatives b. employee (union) representatives c. both employee (union) and management representatives d. health and safety officers ANS: C 8. Harry Davis has been found guilty of smoking around a volatile substance in his workplace. It is his first offence after 25 years. The employer, ABC Inc., has a progressive disciplinary system, where employees are first given a written warning, then suspended for repeated violations, and dismissed as a last resort.

What action should ABC Inc take? a. ABC Inc. must follow the progressive disciplinary system in punishing Harry. b. ABC Inc. may choose to terminate Harry, even though it is his first offence. c. ABC Inc. must involve the courts before making a decision. d. ABC Inc. must involve the government before making a decision.

ANS: B 9. Which of the following is NOT true of workers’ compensation? a. Unlimited medical aid is provided. b. The goal of workers’ compensation is to return the employee to his or her job (or some modification thereof) as soon as possible. c. The emphasis of workers’ compensation is primarily on assessment, payments, and rehabilitation. d. Injured workers can receive benefits in the form of a cash payout.

ANS: C 10. Most jurisdictions require the establishment of health and safety committees with both union and management representation. Which of the following is one of the expectations of this approach? a. that it would educate the union about the problems their membership cause b. that it would show the union how tough management can be c. that it would help to develop a non-adversarial union–management climate d. that it would force the union not to strike ANS: C 11. When should safety training begin? a. with new employee orientation b. immediately after an accident or injury c. before returning to work after an accident or injury d. at the discretion of the supervisor ANS: A

12. Why must supervisors observe employees’ work safety behaviours? a. to limit the company's liability in case of accident b. to reduce insurance costs c. to reinforce and ensure adherence to safe practices d. to learn the proper procedures from line employees ANS: C 13. Which of the following is NOT an initiative that can make health and safety training more effective? a. involve workers in the program design b. exclude the union in planning c. use the Internet and information technology as appropriate d. include related material in new employee orientation ANS: B 14. Management is encouraged to involve employees in safety programs. Which of the following is NOT a way that employees should be involved? a. jointly setting safety standards b. participating in safety training c. developing safety legislation d. establishing safety incentives and rewards ANS: C 15. Which of the following statements about penalties for violations of safety rules is NOT true? a. Penalties are generally more harsh than those for other types of offences. b. Penalties are usually stated in the employee handbook. c. In the case of a serious violation, a first offence may be cause for termination. d. Supervisors must take immediate action when unsafe acts are detected.

ANS: A 16. What is the key role for the supervisor with respect to safety? a. to administer employee disciplinary procedures b. to communicate to an employee the need to work safely c. to observe employee behaviour on-the-job d. to monitor actions of supervisors ANS: B 17. Robin Hood recently started working in a modern office in the financial district in Toronto. Which of the following health and safety issues is he LEAST likely to face in the workplace? a. sick building syndrome b. distress c. lung cancer d. muscular aches and pains ANS: C

18. Employee protections in the workplace with respect to health and safety have improved significantly over the past few decades. Which of the following is NOT one of the reasons for this improvement? a. increase public concerns b. pressures from the unions c. pressures from the developing world to match their competitiveness d. pressures from government ANS: C 19. Which of the following best describes employees who smoke? a. Non-smoking employees have lower levels of absenteeism than employees who smoke. b. Employees who smoke and non-smokers have similar levels of absenteeism and productivity. c. Health care costs are lower for employees who smoke. d. Employees who smoke are typically more productive and have less absenteeism than nonsmokers.

ANS: A 20. Samantha works as a secretary at Bingo Bank and spends a significant period of her work day in front of a computer. She is at risk of experiencing various problems associated with video display terminal use.

Which of the following is Samantha NOT at risk of experiencing? a. visual difficulty b. muscle ache c. job stress d. disorientation ANS: D 21. Which category of service employees is at the highest risk of workplace violence? a. insurance agents who visit clients’ homes b. postal workers who deliver the mail c. nurses d. firefighters ANS: C 22. What is the best method to capitalize on the benefits of video display terminals while safeguarding employee health? a. placing the computer monitor to the side of the desk b. placing the computer screen 10 to 25 cm (4 to 9 inches) below eye level c. placing the computer screen 30 cm (12 inches) above eye level d. adjusting the brightness and contrast controls on the screen to be as high as possible ANS: B 23. Jenny Jones has been working at the same job—typing almost all day—for the past five years. She has now damaged her wrist as a result of the work. What is her problem most likely a form of? a. ambidextrosis b. muscular dysfunctions c. cumulative trauma disorders d. systematic trauma ANS: C

24. Which of the following jobs is LEAST likely to result in a cumulative trauma disorder? a. college teacher b. meat cutter c. dental hygienist d. violinist ANS: A 25. Which of the following is NOT a high-risk work circumstance associated with workplace violence? a. interacting with the public b. dealing with the exchange of money c. working with information technology d. working alone ANS: C 26. Omar works as a supervisor with responsibility for discipline in the workplace; Cindy works as an attendant for a parking garage; Devi works as an IT programmer at a bank; and Lee works as a nurse in a hospital. Who is the least likely to be at risk for workplace violence? a. Lee b. Cindy c. Omar d. Devi ANS: D 27. Jack Spratt, the HR manager at Risky Bank Inc., has been working on a plan to prevent workplace violence. He has so far redesigned the workplace to include electronic surveillance and implemented new administrative practices, such as background checks. Which of the following would NOT be a good additional measure? a. keeping cash register funds to a minimum b. keeping track of immigrants in the workplace c. having a violence prevention policy in place d. forming crisis management teams ANS: B 28. Which of the following is LEAST likely to be promoted through company programs and services? a. reduced absenteeism b. increased efficiency c. exemption from safety inspection d. better morale ANS: C 29. What program aims to help employees with nutrition, weight control, and avoidance of substances harmful to health? a. a fitness program b. an employee assistance program c. a health service programs. d. workplace fitness and health ANS: D

30. Improved individual employee health will have the LEAST impact on which of the following outcomes? a. reduced absenteeism b. improved compensation and reward systems c. increased efficiency d. better morale ANS: B 31. If an employee is experiencing personal problems, who is the individual most likely to refer the worker to the company’s employee assistance program? a. his or her supervisor b. his or her spouse or significant other c. a member of the clergy d. the employee himself or herself ANS: A 32. Assume that you are a new manager at a manufacturing plant. On your first day, you are on the factory floor and notice one employee verbally abusing another; a fight was imminent. Which of the following would NOT be a wise strategy for you to follow? a. try to separate the individuals and ask them to see you individually in private b. remain calm c. publicly ask the aggressor to back down, as this would help with developing your authority in the workplace d. listen and be nonjudgmental ANS: C 33. An employee has been diagnosed with depression and possible mental illness. Her manager has organized professional counselling for her as part of the organizational response to her problems. This counselling is most likely a form of which of the following? a. a new reward system b. an employee assistance program c. a mental preparedness program d. a crisis prevention program ANS: B 34. An employee is showing signs of depression, including decreased energy, irritability, and hostility, in the workplace. What should the HR manager do? a. suggest professional help b. diagnose the problem and urgently try to remedy it c. do nothing, as the problem will most likely go away d. suspend the employee so as to prevent workplace violence ANS: A 35. Which of the following best describes drug testing in the workplace? a. Managers are exempt from drug testing. b. Employees may use or abuse legal prescription drugs that affect their behaviour. c. Managers have a right to test employees for any substance at any time. d. Human rights legislation encourages drug testing.

ANS: B 36. Which of the following is NOT a cause of job-related stress? a. learning new coping skills b. having too much to do in a short time c. having low control over the way the job is done d. receiving no rewards for a job well done ANS: A 37. Managerial, technical, or public contact jobs may all experience a kind of stress that usually energizes them. What is this positive stress called? a. distress b. functional stress c. eustress d. fight-or-flight stress ANS: C 38. When individuals experience harmful stress for a long enough period, they often experience physiological changes such as increased heart rate, increased respiration, and increased blood pressure. What is the name of this type of stress? a. cumulative trauma disorders b. the alarm reaction c. eustress d. dysfunctional adaptation ANS: B 39. Cathy has been experiencing severe stress on the job, including depression, frustration, and a loss of productivity. What is she most likely experiencing? a. burnout b. an alarm reaction c. eustress d. severe eustress ANS: A 40. Which of the following is NOT a common cause of workplace stress? a. having too much to do in too short a time b. lack of recognition for a job well done c. having to expend too much mental or physical energy over too long a period d. empowerment ANS: D 41. Kent Factory Inc. is a sausage plant that has been receiving bad reports in the press related its health and safety problems. The reports are causing a loss in profits. Assume that you are the new HR manager.

Which of the following would be one of your first initiatives to deal with the problems? a. fire the HR staff because they have been ineffective in dealing with the problems b. alert the CEO that you are not a trained psychologist or a safety officer, so another department should handle the issue

a. b. c. d.

precedence anti-discrimination law statutory legislation political law, since MPPs are politicians

ANS: C 3. Which of the following is an example of an employee’s statutory right? a. a collective bargaining agreement b. the Pay Equity Act c. the right to due notice d. the Implied Contract ANS: B 4. Assume that the governing political party does not like how some employers have been taking advantage of a loophole in the law to discriminate against women and they want this situation corrected. What should the government do? a. ignore the court decisions b. ask women to challenge their employers in court c. call the judges and instruct them to change their decisions d. introduce a motion in the legislature to amend the legislation ANS: D 5. What is a key characteristic of an implied employment contract? a. It is valid only if in writing. b. It contains terms that judges read into employment contracts when the written contract does not expressly deal with the matter. c. It exists after an employee passes his or her probation period. d. It covers approximately 90 percent of the Canadian workforce.

ANS: B

6. ABC Corporation induced computer programmers to leave their old jobs through the promise of higher salaries. However, when the programmers started to work for ABC, the company denied making any promises to them. Through its behaviour, what has ABC likely violated? a. implied covenant rules b. no laws—as long as there were no written guarantees, ABC cannot be held liable c. the job-as-right concept d. implied contract rules ANS: D 7. Under the employment-at-will concept, who can terminate the employment relationship? a. employers or the government b. employees, unions, or employers c. employees or the government d. employees or employers ANS: D 8. Bob Barker’s employer has moved him to a job that is three to four levels below his current position; it also pays much less. He has been advised by his lawyer that he can challenge this decision in the courts.

What do you think Bob will claim happened to him? a. due process not followed b. constructive dismissal c. termination d. wrongful dismissal ANS: B 9. Johnny Damon, the human resource manager at Damon Electric Utility, wants to reduce the pay for one of his employees. The pay is included in the employee’s employment contract. How can Mr. Damon legally change the employee’s pay? a. get the employee to agree to the change and provide a new benefit b. adjust the pay unilaterally, as Mr. Damon is the human resource manager c. get a lawyer to make the change d. get top management to make the change ANS: A 10. The HR manager at Stacco Ltd. is planning to fire Paul for poor job performance. He is aware that he has to give “reasonable notice” to Paul. What are two factors that he has to take in consideration when determining the amount of notice? a. Paul’s salary and the amount of leave previously taken b. Paul’s length of service and the nature of his work c. Paul’s education and position in the firm d. Paul’s education and length of service ANS: B 11. Based on the research evidence on summary dismissal cases, in which of the following scenarios does the employer stand the least chance of winning in the courts? a. An accountant is dismissed because of theft from the workplace. b. A clerk is dismissed because of insubordination.

c. A manager is dismissed because he was found doing work for a competitor. d. A secretary is dismissed because of poor typing skills.

ANS: D 12. All of the following statements regarding the Personal Information Protection and Electronic Document Act (PIPEDA) are true, EXCEPT which one? a. Organizations covered by PIPEDA must obtain a supervisor’s consent. b. Individuals covered by this legislation have a right to access personal information held by an organization. c. This legislation is applicable to all Canadians. d. This legislation applies to personal information that is collected, used, or disclosed by an organization in the private sector.

ANS: C 13. Which of the following pieces of legislation provides for an employee to see his or her personnel file? a. the Freedom of Information Act b. the Personal Information Protection and Electronic Document Act (PIPEDA) c. the Right to Protect Privacy Act d. the Employee Protection Act ANS: B 14. The courts have ruled that employers can monitor computer use and Internet access of employees when they are at work. Which of the following is a key reason suggested by the courts for this? a. Employers need to protect themselves against lawsuits. b. It is integral to the implied employment contract. c. Organizations need this right so as to compete globally. d. The employer owns the computer.

ANS: D 15. Which of the following does NOT belong in the disciplinary model outlined in your text? a. discharge b. due process c. negotiation d. disciplinary interviews ANS: C 16. As a result of a lawsuit, the Gamma Corporation has decided to institute and communicate its disciplinary policies. Which of the following management groups has primary responsibility for the development of disciplinary policies and procedures? a. middle management b. the legal department c. top-level management d. the human resources department ANS: D 17. The Field Corporation wishes to establish an effective disciplinary policy. Which of the following groups of managers should have primary responsibility to prevent or correct disciplinary problems?

a. b. c. d.

the immediate supervisors of employees managers in the legal department top-level managers human resource managers

ANS: A 18. To keep organizational rules effective, employers should do all of the following, EXCEPT which one? a. ensure that employees understand the reasons for the rules b. restate any rules that have not been enforced on a consistent basis c. remove any rules that do not involve the safe and efficient operation of the organization d. make certain that all rules are communicated orally to all employees ANS: D 19. ATV Media Inc. wants to “send a message” that it is serious about employee misconduct, so the company has implemented a disciplinary approach that requires that punishment be immediate and a direct result of breaking a rule. Which of the following terms refers to this disciplinary approach? a. progressive discipline b. due process c. the hot-stove rule d. positive discipline ANS: C 20. How should the hot-stove approach to rule enforcement be applied? a. progressively, with justification, and by the HR department b. only by the immediate supervisor, but with the concurrence of the HR department c. with warning, immediately, consistently, and in an impersonal way d. in a legal manner and consistent with applicable laws and/or court rulings ANS: C 21. In which of the following scenarios can an employer summarily dismiss an employee in a nonunion environment for his or her activities outside of the workplace? a. The employee discloses confidential information on a personal blog. b. The employee has a fight with a neighbour. c. The employee talks to fellow workers about the possible benefits of a union in the workplace. d. The employee attends a union conference.

ANS: A 22. In regard to the documentation of employee misconduct, which of the following statements is INCORRECT? a. Most managers are trained to accurately document employee misconduct through their management training and/or development programs. b. Documentation is admissible in the courts and in arbitration hearings. c. Documentation should take place as soon as possible so as to keep the information accurate. d. Poor documentation can result in a reversal of disciplinary action.

ANS: A

23. Carmen, a new supervisor, wants to correctly document the ineffective performance of an employee.

Which of the following would she NOT have to do? a. do a current performance appraisal of the employee b. list the negative performance or behaviour exhibited by the employee c. note the date, time, and location of the misconduct d. record the consequences of the employee’s action on the work unit ANS: A 24. Which of the following conditions must be met for an employer to summarily dismiss an employee in a nonunion environment for off-duty conduct? a. The employer would have to prove that its interests are adversely affected by the conduct. b. The employee must be employed on a full-time basis. c. The employer must have a good human resource management department in place. d. The employee cannot be from a minority group, as this would be discrimination.

ANS: A 25. ABC Inc. has a disciplinary system whereby its programs are designed to motivate an employee to correct his or her misconduct voluntarily. What type of disciplinary program is ABC Inc. most likely using? a. a self-help program b. a progressive discipline program c. a hot-stove program d. a positive discipline program ANS: D 26. The human resource manager has invited Tammy for a meeting to discuss reports of her misconduct. The two parties will have joint discussion and problem-solving activities to address and overcome any proven misconduct. What type of disciplinary program is evident here? a. a progressive discipline program b. a positive discipline program c. a nondirective counselling program d. an open door discipline program ANS: B 27. After repeated instances of poor work performance, Robert was given a written warning. In a typical progressive discipline program, what is the most likely next step? a. suspension b. formal discussions c. a verbal warning d. termination of services ANS: A

28. Assume that Rajas Cable Inc. uses a positive discipline system to correct undesirable employee conduct.

In this system, which of the following actions will the firm take to deal with unacceptable performance? a. warnings b. reminders c. reprimands d. legal challenges ANS: B 29. Using a positive discipline approach, giving an employee a paid decision-making leave would allow for which of the following? a. It is mandatory because of the law. b. It gives an employee time to consider whether he or she wishes to remain with the organization. c. It gives an employee time to consider a new job offer. d. It is often used to let an irate employee “cool off.”

ANS: B 30. When a supervisor decides to dismiss an employee, which of the following suggestions should NOT be followed? a. keep an open mind in case the subordinate offers an acceptable plan to correct his or her disciplinary problem b. avoid mixing the good with the bad c. keep the termination meeting businesslike and fairly brief d. avoid bringing personal feelings into the discussion ANS: A 31. Where should termination meetings be held? a. at the employee’s workstation b. in the manager’s office c. in the parking lot or otherwise outside the employer’s premises d. in a neutral location, such as a conference room.

ANS: D 32. What is a key difference between a step-review process of dealing with employee complaints in nonunionized workplaces versus a grievance procedure in a collective bargaining agreement? a. A step-review process allows for better outcomes for both sides. b. Step-reviews do not provide for a neutral third party as a judge of last resort. c. A grievance procedure generally allows for a legal strike by employees. d. Step-reviews lead to less workplace conflict.

ANS: B 33. Which of the following best describes alternative dispute resolution mechanisms? a. They are a relatively recent development used only in unionized organizations. b. They will likely replace the need for grievance procedures. c. They are forms of progressive discipline. d. They are a relatively recent development in nonunion organizations.

ANS: D

34. In a nonunion workplace, which of the following complaint processes is most similar to a grievance procedure under a union contract? a. open-door management system b. step-review system c. at-will complaint process d. peer-review system ANS: B 35. Under a step-review appeal procedure, the last step involves which of the following employee groups? a. human resources specialists b. top management c. a tribunal of middle managers d. a jury consisting of equal numbers of supervisory and nonsupervisory employees ANS: B 36. What does a peer review board consist of? a. managers, subordinates, and a number of unbiased third-party participants who do not work for the employer b. an equal number of supervisors and nonsupervisors c. managers above the level of the supervisor whose decision is being appealed d. employees at the same level as the appealing employee ANS: B 37. Which of the following best describes an open-door policy? a. It identifies various levels of management above an employee’s immediate supervisor that an aggrieved employee may contact. b. It is based on a pre-established set of steps for the review of an employee complaint to successively higher levels of management. c. It is a requirement of the alternative dispute resolution process. d. It is the best resolution to any employee complaint by the HR department.

ANS: A 38. Alberta Oil Corporation is planning to implement an open-door policy to deal with employee complaints.

What is a key criterion for this policy to be successful? a. Managers must encourage employees to voice their complaints and listen honestly to those concerns. b. Managers must ensure that employees come to them only with job-related concerns. c. Managers must emphasize that they can offer solutions only on an advisory basis. d. Managers must formalize the procedure and encourage employees to “start at the top.”

ANS: A 39. The University of Lalaland has decided to move to a new system in dealing with employee complaints. It has hired a retired judge whose job is to listen to employees’ complaints and then try to seek solutions through negotiation and mediation. What is the most likely title of this person’s job? a. complaint officer b. hearing judge c. arbitrator

d. ombudsperson ANS: D 40. Which of the following is NOT an organizational benefit of using arbitration to resolve an employer– employee discrimination complaint? a. With arbitration, time delays can be avoided. b. With arbitration unfavourable publicity can be avoided. c. Arbitration does not involve anyone external to the organization. d. Arbitration usually results in savings in litigation costs.

ANS: C 41. Which of the following is the cornerstone and major benefit of mediation? a. It is a formal process and therefore easily undertaken. b. The parties involved maintain control over the settlement outcome. c. A mediator can quickly settle a dispute by declaring a resolution. d. The mediator is a representative of management.

ANS: B 42. In a recent Society for Human Resource Management study, which of the following factors was found to be the most important driver of employee trust and loyalty? a. the existence of a code of conduct b. perception of ethical conduct by fellow employees c. perceptions of ethical behaviour by leaders in organizations d. fair pay ANS: C 43. Which of the following is NOT a primary goal of ethics training? a. to gain publicity b. to gain a strategic advantage c. to reduce unethical behaviour d. to treat employees fairly and equitably ANS: A

Chapter 14 The Dynamics of Labour Relations MULTIPLE CHOICE 1. The majority of workers in Canada are governed by legislation at which of the following levels/jurisdictions? a. provincial b. international c. municipal d. federal ANS: A

2. Mary Hart works for the federal government in the immigration department. Her office is located in Toronto. Which of the following pieces of labour legislation applies to her workplace? a. the Ontario Labour Relations Code b. the City of Toronto Labour Code c. the Ontario Labour Relations Act d. the Canada Labour Code ANS: D 3. Which of the following is NOT a duty of labour relations boards? a. to hear complaints related to unfair labour practices b. to remedy violations of collective bargaining legislation c. to amend labour relations legislation d. to determine if bargaining was done in good faith ANS: C 4. Labour boards generally have representatives from which of the following groups? a. third-party representatives and managers b. academia and management c. academia and public servants d. labour and management ANS: D 5. Which of the following is NOT one of the key reasons why workers join unions in Canada? a. to earn higher pay b. to fulfill social needs c. to get a voice in their work lives d. to change the government ANS: D

6. Jason Thomas recently joined ABC Inc. as loader to work on the shipping wharf. He has been told that he must join the union as a condition of employment. Which of the following is this employment provision called? a. a union shop b. a bully provision c. an agency shop d. an unfair labour practice ANS: A 7. Mary works in the basement of her employer’s home sewing pants. Which of the following is one of the biggest challenges facing workers like Mary in becoming unionized? a. They do not have any political party to help them with organizing. b. They work in scattered locations. c. They are satisfied with their working conditions. d. They are satisfied with their pay.

ANS: B 8. Which of the following is the strongest reason to join a union? a. dissatisfaction with wages, benefits, and working conditions b. personal preference for a union and social pressure to join c. the need to fraternize with similar employees and assert personal leadership skills d. favouritism shown by supervisors in promotions, shift assignments, and transfers ANS: A 9. Which of the following is a key difference between unionized and nonunionized work in Canada? a. Nonunionized workers get higher wages and benefits. b. Unionized workers get higher wages and benefits. c. Unionized workers get more benefits but less in wages. d. Unionized workers get better pay but less in benefits.

ANS: B 10. According to the text, in terms of employment relations, which of the following is a key reason why employers may begin employee involvement and empowerment programs? a. to satisfy employment relations legislation b. to satisfy their obligation for good faith bargaining c. to avoid collective action by employees d. to consolidate decision making ANS: C 11. Which of the following groups initiate most organizing campaigns? a. employees b. union organizers c. rival unions d. Human Resources Development Canada ANS: A

12. Yorkville Tire Manufacturing Company has been experiencing really bad management–employee relations for almost two years. Jack Spratt, one of the leaders among the employees, wants to help in unionizing the employees. He has met with most of the employees. What next should he do? a. ask the workers to go on strike to put pressure on the company b. form an in-house organizing committee c. appeal to a broader community—including academics and international agencies—to put pressure on the employer d. ask the labour relations board to intervene ANS: B 13. Employees indicate their willingness to be represented by a union by signing which of the following? a. a selection card b. an agreement card c. an authorization card d. a stipulation card ANS: C 14. In which organizing step does the collection of signed authorization cards play a major role? a. initial organizational meeting b. application to the labour relations board c. formation of in-house organizing committee d. employee/union contract ANS: C 15. Louis, a union organizer in Ontario, needs what minimum percentage of signed authorization cards before the union can apply for a certification election? a. 40 percent b. 50 percent c. 75 percent d. 30 percent ANS: A 16. In certification elections in Canada, how many employees must vote in favour of unions for them to become certified in workplaces? a. 50 percent, plus one b. 40 percent, plus one c. 41 percent d. 51 percent ANS: A 17. Who is responsible for administering the union certification elections in Canada? a. the labour relations board b. the Canada Elections Commission c. the union d. the employer ANS: A

18. According to Canadian labour relations legislation, all of the following employer actions are prohibited EXCEPT which one? a. threatening to close the business b. stating the employer is ready to listen to and discuss any issue c. increasing wages during the certification process d. promising increased vacation if the employees vote for no union ANS: B 19. According to federal labour law, which of the following tactics can employers use in opposing unionization? a. review union authorization cards b. attend union meetings c. bargain in good faith d. change working conditions of employees who work for the union ANS: C 20. Which of the following conditions and/or actions may result in labour relations boards imposing a union on an employer in some Canadian jurisdictions, even with as low as 5 percent of the authorization cards signed? a. Threats by other unions to go on strike if the workplace does not get its own union. b. Unfair labour practices committed by the employer in the organizing process. c. The need by government for labour relations peace in workplaces. d. Advice from the International Labour Office.

ANS: B 21. Strategies to remain union-free include all of the following EXCEPT which one? a. institute formal procedures to resolve employee complaints. b. give attention to employee growth and development needs. c. allow supervisors to adopt their own approaches to employee motivation and job design. d. offer competitive wages and benefits.

ANS: C 22. Which of the following is an employer required to do once a union becomes certified? a. notify employees of the bargaining relationship b. deduct union dues from the employees’ paycheques c. begin negotiations leading toward a collective agreement d. sign a collective agreement ANS: C 23. Within a bargaining unit, how many workers must vote against the union so as to decertify it? a. 41 percent b. 40 percent, plus one c. 51 percent d. 50 percent, plus one ANS: D

24. Which of the following is NOT a usual effect of unions in the workplace? a. restrictions on unilateral human resource policy b. increases in accident rates and sabotage c. increases in wages d. restrictions on management rights ANS: B 25. The full-time professors at McMaster University are usually represented by a group of nonunionized faculty in wage negotiations with management. What is this group of faculty called? a. a certified union b. a craft union c. an employee association d. a negotiations association ANS: C 26. Which of the following may represent professional and white-collar employees? a. a management right association b. the Canadian Labour Congress c. a professional agency d. an employee associations ANS: D 27. In the United States, the key central federation of unions is called the AFL-CIO. In Canada, what is the name of the organization that does similar work? a. the Canadian Auto Workers Union b. the Canadian Labour Congress c. the Labour Organization d. the Trades Union Congress ANS: B 28. Unlike many unions in Europe, most of the bargaining and decision making for unions in Canada occurs at which of the following levels? a. the provincial level b. the local level c. the international level d. the national level ANS: B 29. Which of the following labour organizations is most likely to provide professional and financial assistance during organizing drives and strikes, help negotiate labour agreements, and train union leaders? a. a local unions b. the Department of Labour c. Human Resources Development Canada d. the Canadian Labour Congress (CLC) ANS: D

30. Tony Lee has been involved on behalf of the national union with negotiating the collective bargaining agreement with the employer for Local 1240. Which of the following is Mr. Lee’s most likely job title or role? a. a negotiator b. a union agent c. a business agent d. a union steward ANS: C 31. Omar Mohammed represents the interests of union members in their relations with their immediate supervisors and other members of management. Which of the following is Mr. Mohammed’s most likely job title or role? a. mediator b. union steward c. union leader d. conciliator ANS: B 32. Who has the major responsibility in negotiating and administering the labour agreement and working to resolve problems arising in connection with it? a. the bargaining agent b. the shop steward c. the national union executive d. the business agent ANS: D 33. Approximately what percentage of Canadian public employees are unionized? a. 70 percent b. 25 percent c. 50 percent d. 90 percent ANS: A 34. Assume that the Canadian Union of Public Employees (CUPE) is representing essential workers in a hospital. The hospital’s administration and the union are deadlocked in negotiations. What is a likely solution to this impasse? a. decertification of CUPE b. compulsory binding arbitration c. a strike d. counselling ANS: B 35. Strikes, boycotts, lockouts, and plant closures may all be included in which of the following? a. negotiation preparation b. compulsory binding arbitration c. public sector bargaining d. the collective bargaining process

ANS: D

36. Which of the following is a requirement of interest-based bargaining? a. An agreement must be reached within a reasonable amount of time. b. Each side’s negotiators meet at any time and a reasonable place to discuss issues. c. Each side’s negotiators meet at any time and place to discuss issues. d. Each side’s negotiators meet at a reasonable time and reasonable place to discuss issues.

ANS: D 37. Developing likely union proposals, lists of demands, and a contingency plan for operating in the event of a strike are part of which of the following? a. compulsory binding arbitration b. an employer’s bargaining strategy c. a union’s bargaining strategy d. good faith bargaining ANS: B 38. In the bargaining model, what is the area within which the union and employer are willing to concede when bargaining? a. bargaining team b. bargaining committee c. bargaining zone d. contingency operating plan ANS: C 39. Which of the following is interest-based bargaining based upon? a. the identification and resolution of mutual interests b. a give-and-take philosophy c. suspicion and compromise d. the area within which union and management are willing to concede ANS: A 40. The creation of a relationship for the future based on trust, understanding, and mutual respect is the basis of which of the following? a. interest-based bargaining b. adversarial bargaining c. good faith bargaining d. traditional bargaining ANS: A 41. Unions tend to hold strike votes to assess whether members are willing to go on strike for their demands.

What does a high vote in favour of a strike (e.g., 95 percent) mean? a. Management will most likely have to lock out the union. b. The union will definitely go on strike because it has an overwhelming mandate to do so. c. Management will lose the bargaining. d. The union will have strengthened its bargaining power.

ANS: D

42. How can the bargaining power of a union be exercised? a. lockout or relocation b. striking, picketing, or boycotting c. union merger d. legal injunction ANS: B 43. Pickets may prevent trucks and railcars from entering a struck business because of which of the following? a. Picketing during a strike carries a legal obligation on the part of the employer to cease operations, including delivery of goods and materials. b. Unions often refuse to cross another union’s picket line. c. The union has a legal right to obstruct the business of the employer the union is striking against. d. Operators of trucks and railcars must get permission from the picketing union to enter the premises.

ANS: B 44. Which of the following is the term for a union’s use of radio and newspaper ads to discourage the purchase of an employer’s products? a. picketing b. an unfair labour practice c. a boycott d. a bargaining zone ANS: C 45. Which of the following actions is compulsory before a strike or lockout in all Canadian jurisdictions? a. mediation b. communication c. arbitration d. conciliation ANS: D 46. Which of the following is the term for a third-party neutral who resolves labour disputes by issuing a final decision that the parties must accept? a. a mediator b. a conciliator c. an arbitrator d. a union steward ANS: C 47. Which of the following clauses holds that “management’s authority is supreme in all matters except those conceded in the collective agreement or in those areas where its authority is restricted by law”? a. the supreme rights clause b. the defined rights clause c. the management rights clause d. the explicit rights clause

ANS: C

48. Which of the following do dues checkoff, the union shop, and the agency shop represent? a. management rights b. union security c. management prerogatives d. unfair labour practices ANS: B 49. Which of the following is the arbitrator’s responsibility in a dispute? a. to interpret the intent of the labour agreement b. to get the parties to work together to solve their differences c. to mandate how the grievance will be resolved d. to decide the case without passing judgment ANS: C 50. In which of the following situations is grievance handling most successful? a. in nonunionized businesses b. in unionized businesses c. when supervisors are formally trained in the terms of the labour agreement and the development of counselling skills d. when union stewards are selected by management ANS: C 51. Which of the following is necessary for an employee’s grievance to be considered formally? a. It must be in direct violation of the collective agreement. b. It must be filed with the labour relations board. c. It must be expressed orally or in writing. d. It must have resulted in loss of pay or economic benefit to the employee.

ANS: C 52. The factors that arbitrators use when deciding cases are the wording of the labour agreement, the submission agreement, the testimony and evidence offered, and Which of the following? a. the truthfulness of witnesses b. the preferences of the grievant c. arbitration criteria or standards d. the concept of reasonable doubt ANS: C

Chapter 15 International Human Resources Management MULTIPLE CHOICE 1. ABM is an international firm with headquarters in the United States. Its operations in other parts of the world are fully autonomous. What type of firm is ABM? a. a multinational corporation b. an international corporation c. a transnational corporation d. a global enterprise

ANS: A 2. Rand Computers is a mid-sized firm located in Toronto. As a result of personal connections, Rand Computers has started a division in Buffalo, New York. What type of corporation is Rand Computers? a. a multinational corporation b. a global corporation c. an international corporation d. a transnational corporation ANS: C 3. While GH Motors is located in Canada, it has allowed management in all of international operations to make independent decisions on how they conduct business in their different environments. How would you classify GH Motors? a. as a global corporation b. as an international corporation c. as a transnational corporation d. as a multinational corporation ANS: D 4. Think about a spider’s web with the spider in the middle. In this scenario, the spider controls the web from the centre. What type of corporation does this web resemble the most? a. an international corporation b. a multinational corporation c. a global corporation d. a transnational corporation ANS: C 5. Some Japanese firms, such as Matsushita and NEC, tend to operate as domestic firms but see the whole world domestically—that is, as their market. What type of firms are these? a. transnational firms b. multinational firms c. global firms d. international firms ANS: C

6. Which of the following organizations is pursuing a transnational strategy? a. a car company developing a “world” car to gain scale economies b. a brewery trying to achieve scale economies while simultaneously customizing its taste and marketing efforts for local markets c. a company producing customized fashions for multiple regions of the world d. a steel company trying to simultaneously gain scale economies and increase the quality of its products ANS: B 7. Cultural environment includes all of the following components EXCEPT which one? a. education/human capital b. religious beliefs c. corporate structure d. values and ideologies ANS: C 8. Which of the following is the main purpose of free trade agreements, such as NAFTA? a. to facilitate the free movement of goods, services, capital, and people across borders b. to help fight terrorism c. to help the United Nations with its work d. to increase tourism ANS: A 9. MAGNA is a Canadian firm located in Ontario. In this instance, what does Canada represent? a. the adaptive country b. the host country c. the resource country d. the receptive country ANS: B 10. Cultural environments differ across the world. What does this imply for business firms? a. Canadian corporations have an advantage over firms from other nations. b. The culture must adapt to the goods and services offered by transnational corporations. c. Their management styles must remain consistent. d. Strategies, structures, and management styles that work in one area of the world may be inappropriate in another.

ANS: D 11. Which of the following is an attribute of an effective global HR information system? a. It can be adapted for cultural training. b. It must meet challenges of administrative and cultural issues. c. It should be established according to home country standards. d. It should reproduce labour agreements for each country in which the company operates.

ANS: B

12. General Motors, headquartered in the United States, has operations in many parts of the world. Jimmy Lee, an IT manager from its Canadian operations, has been posted to India to oversee a start-up operation.

What type of employee is Jimmy? a. a host-country national b. an Indian national c. a third-country national d. a home country national ANS: C 13. Anna works as a compensation manager for IDL Inc., a multinational firm located in British Columbia.

She has been posted to Hong Kong on an assignment. What type of employee is Anna? a. a host-country national b. an expatriate c. an international manager d. a third-country national ANS: B 14. When a Canadian multinational corporation hires an employee from Australia to work in its office in Sydney, this employee referred to as which of the following? a. an expatriate b. a host-country national c. a third-country national d. an international manager ANS: B 15. Which of the following is the source of overseas employees that provides the advantages of less cost and greater facility in the language? a. home-country nationals b. expatriates c. third-country nationals d. host-country nationals ANS: D 16. If Canadian company Bombardier transferred Karl Hammer, a native German, away from his assignment in Bonn, Germany, to a new assignment in Paris, France, Karl would then be considered which of the following? a. a host-country national b. a home-host-country national c. a third-country national d. a home-country national ANS: C 17. Deccan Hardware Company, a Canadian firm, is now establishing a subsidiary in Mexico. As with many organizations at the early stages of international expansion, what type of employees would Deccan most likely use? a. third-country nationals b. host-country nationals c. home-country nationals

d. expatriates ANS: C 18. Many nannies come to Canada to work for a period of time. What is the name of the document issued by the government granting authority to these nannies to seek employment in Canada? a. a work permit b. a passport c. an allowance permit d. a birth certificate ANS: A 19. According to your text, which of the following is NOT a core skill that is critical for success abroad? a. prudent decision-making skills b. mental maturity c. cultural sensitivity d. strategic thinking ANS: D 20. Which of the following is the major reason for failure among expatriates? a. inability to cope with larger responsibilities b. a manager’s personality c. a spouse’s inability to adapt d. distaste for travel ANS: C 21. Heineken recently organized a group of individuals with specialized skills representing each major region within Europe. This group an example of which of the following? a. a transfunctional team b. a multinational team c. a multicultural team d. a transnational team ANS: D 22. Which of the following best describes transnational teams? a. They tend to be focused on projects that span multiple countries. b. They tend to be homogenous. c. They are usually comprised of members with generalized skills. d. They are usually comprised of members from the same region.

ANS: A 23. Which of the following is NOT one of the attributes of successful global managers that Levi Strauss identified? a. ability to seize strategic opportunities b. sensitivity to issues of diversity c. interpersonal competency d. capability to manage a highly centralized organization

ANS: D

24. IAM Inc. has operations in many countries. Recently, it used staff from four of these countries to work on a project. What type of team would this be? a. a transnational team b. a global team c. an integrated team d. a borderless team ANS: A 25. Individuals working internationally need to know as much as possible about all of the following hostcountry characteristics EXCEPT which one? a. social and business etiquette b. political structure c. cultural values and priorities d. popular fashion trends ANS: D 26. Which of the following is associated with cultural conditioning? a. It does not include the formal education or training a person receives. b. It influences the attitudes, behaviours, and reactions of both workers and their managers. c. It has little impact on international HRM. d. It helps people react positively to tastes and behaviours similar to their own.

ANS: B 27. According to cross-cultural studies, nations tend to cluster according to similarities in all of the following cultural dimensions EXCEPT which one? a. work goals b. values c. laws d. job attitudes ANS: C 28. Compared to North American managers, European managers—especially those in France, Germany, and Italy—tend use which of the following decision-making styles? a. a more autocratic style b. about the same style c. a more participatory style d. a solitary style ANS: A 29. Compared to Canadian managers, Japanese managers tend to use which of the following decision-making styles in the workplace? a. a more autocratic style b. a more participatory style c. a more decentralized style d. about the same style ANS: B

30. Which of the following is a recent trend in expatriate assignments? a. shorter, project-based assignments b. more long-term assignments c. increased heading of operations in foreign countries d. permanent, full-time placements ANS: A 31. If you were concerned about maximizing your career benefits with a foreign assignment, which of the following questions would be the most important to ask? a. Will the assignment afford me the opportunity to learn a new language? b. How long will the assignment last? c. How much will the assignment increase my salary? d. How many executives within my organization have a foreign-service assignment in their background?

ANS: D 32. Which of the following is the key purpose of repatriation? a. to train expatriates prior to their first international assignment b. to help employees make the transition back home c. to adapt leadership and decision-making styles to the host country d. to reduce communication errors in foreign assignments ANS: B 33. Which of the following is most likely to happen when companies fail to use the knowledge, skills, and understanding that expatriate managers acquire in international assignments? a. Language training is viewed as unnecessary. b. The expatriates often take lower-level jobs upon return or leave the company. c. Repatriation is no longer recommended. d. Home-country nationals are used more often in favour of expatriates.

ANS: B 34. If you were developing a performance appraisal system for individuals on international assignments, it would be best to base individuals’ appraisals on information from which of the following? a. home-country evaluations b. peer evaluations c. both home- and host-country evaluations d. host-country evaluations ANS: C 35. Which of the following is one of the most common problems that occur with performance appraisals of international assignees? a. criterion estimation b. criterion deficiency c. criterion contamination d. lack of validity ANS: B

36. Which of the following factors is NOT a reason why firms may want to use host-country nationals? a. They are mobile. b. They are preferred by host-country governments. c. They are less costly. d. They have knowledge of the culture.

ANS: A 37. In collectivist societies such as Japan and Taiwan, which of the following is a key focus of the pay system? a. internal equity and personal needs b. nonfinancial incentives c. weekly or monthly salary guarantees d. individual performance ANS: A 38. In designing compensation systems, what does the philosophy of “thinking globally and acting locally” mean? a. Expatriates should be rewarded primarily for their local actions. b. Pay plans should be originated at the local level but global organizational issues should be considered in pay plan development. c. Expatriates should be rewarded for their local actions as well as their performance that impacts the entire organization. d. Pay plans should be designed to support the overall strategic intent of the organization and also provide enough flexibility to customize certain policies to meet the needs of employees in specific locations.

ANS: D 39. In some countries, such as India, profit sharing is mandated by law. Thus, companies have to distribute some of their profits to the employees. Which of the following is the key reason for this requirement? a. These countries are corrupt, and thus they require foreign firms to bribe the workers. b. This is a requirement for all new foreign investments, as mandated by the United Nations. c. It is done to punish these companies for colonialism. d. It allows for a redistribution of wealth at the firm level.

ANS: D 40. When comparing European countries such as Norway and Denmark with North America, which of the following trends is evident in terms of compensation systems? a. There are higher wages but lower benefits in North America. b. There are lower wages and better benefits in North America. c. There are higher wages and benefits in Europe. d. There are higher wages and benefits in North America.

ANS: C

41. Which of the following is a current trend among multinational corporations when setting compensation levels for host-country managers? a. paying the host-country managers considerably more than the expatriate managers b. widening the salary gap between the host-country and the expatriate managers c. paying only according to the local salary levels d. narrowing the salary gap between the host-country and the expatriate managers ANS: D 42. Which of the following is the key purpose of the balance-sheet approach to compensating expatriate managers? a. to enhance the skills of the expatriate b. to ensure that the expatriate does not lose financially in his or her international assignment c. to balance the social costs of the assignment d. to ensure that there is work–life balance ANS: B 43. In using the balance-sheet approach to compensating expatriate managers, the term “incentive premiums” refers to which of the following concepts? a. compensating the managers for separation from family and friends b. offsetting the higher costs of overseas goods and services c. paying essentially the same as home-country counterparts are paid in similar jobs d. covering moving, storage, and educational expenses ANS: A 44. There are several ways in which expatriates can be compensated for their services. At one end, their pay can be based on their earnings in the home country. Which of the following is at the other end of expatriate pay? a. host-based pay b. skill-based pay c. balance-sheet pay d. third-country-based pay ANS: A 45. Which of the following best describes the difference between labour relations in Canada and those in Europe? a. In some European countries, government intervenes in all aspects of collective bargaining. b. Salaried employees, including managerial employees, have a greater tendency to be unionized in Europe. c. Unions in Canada have more political power than in most European countries. d. European unions typically negotiate the agreement at the national rather than the local level.

ANS: C

46. The International Labour Organization has set itself a new agenda—called the “Decent Work Agenda.”

Which of the following is the main purpose behind this move? a. to illustrate the decency embedded in international organizations b. to stop itself from becoming irrelevant c. to chart laws for international firms d. to highlight the ethical dimension of work ANS: D 47. A very high level of worker participation in management is found in Germany, where national law requires that labour be part of the boards of directors of companies. What is this participative arrangement called? a. codetermination b. worker councils c. German unionization d. the shop steward movement ANS: A

Human Resource Planning Test 1 Guide - Answers Test Summary (50 marks)  6 of 10 SHORT ANSWER questions (5 marks each – Total 30)  20 Multiple Choice & True/False questions (1 mark each – Total 20) CHAPTER 1—STRATEGIC MANAGEMENT Multiple Choice 1. What type of strategy is an agreed-upon plan that is arrived at through formal planning processes? a. Discarded b. Emergent c. Realized d. Intended 2. Managers in a department store have decided that the shoe department is not a profitable part of the store and it would be better suited to being an independent organization that rented space from the store. What type of strategy is demonstrated if the shoe department is separated from the department store into a separate entity? a. merger b. divestiture c. bankruptcy d. growth 3. Which of the following represents either a growth or a stability strategy? a. b. c. d.

merger turnaround bankruptcy liquidation

4. If a formulated plan is called an intended strategy, what strategy depicts the implemented plan? a. intentional b. ideal c. realized d. predicted 5. Which of the following represents either a restructuring or stability strategy? a. Merger b. liquidation c. incremental d. joint venture

6. In order for senior managers to determine who the company’s customers are, where they are located, and what product or service characteristics the customers’ value, the managers must develop a statement of the fundamental benefits of the products or services being offered in the marketplace. What is this statement known as? a. value proposition b. vision statement c. value statement d. vision proposition True/False 7. A company can have one corporate strategy but many business strategies. T 8. When a company can no longer pay its creditors, the company may file for bankruptcy. T 9. The strategic planning process is dynamic and evolves as environmental conditions change. T 10. An acquisition is seen as two organizations joining to gain economies of scale, whereas a merger occurs when one company acquires another. F (OPPOSITE)

CHAPTER 2—ALIGNING HR WITH STRATEGY Multiple Choice 1. What is the purpose of strategic HRM? a. to ensure the effective functioning and survival of the organization and its members b. to implement the planning, timing, and delivery of an effective organizational strategy c. to motivate and attract employees who will internalize the organization’s culture d. to emerge as an industry leader with numerous distinct competencies and a competitive advantage 2. a. b. c. d.

To the HR practitioner, what does human capital incorporate? knowledge, commitment, values commitment, experience, culture experience, knowledge, skills skills, values, culture

3. What does it mean if an organization’s human capital ROI is $3? a. For every dollar an organization invests in human capital, the employees will generate $3 in return. b. For every dollar an organization invests in human capital, the employees will generate $3 in revenue. c. For every dollar an organization invests in human capital, the employees will generate $3 in capital assets. d. For every dollar an organization invests in human capital, the employees will generate $3 in productivity.

4. If IBM introduces a new software package in January, Microsoft can probably imitate or duplicate this package by February of the same year. However, if IBM technical support people are trained and motivated to provide “knock your socks off service”, Microsoft will have a difficult time imitating this service within a month. This is an example of how employees can provide a competitive advantage. What theory is being applied here? a. behavioural perspective pg 33 b. resource-based view c. human capital d. strategic management 5. What two items does an organization match together in the human capital perspective of HRM? a. values of employees and the organization’s budget b. capacity of employees and the organization’s motivation c. capabilities of employees and the organization’s strategy d. creativity of the employees and the organization’s goals

6. In many ways, HR strategy generates the business strategy, and business strategy determines the HR strategy. What is the concept that describes this relationship? a. reciprocal strategy b. reciprocal partnerships c. reciprocal dependence d. reciprocal interdependence True/False 7. A possible drawback to strategic HR planning includes a greater amount of time required for decision making. T 8. The aggregate of all employees’ knowledge is an example of human capital. T 9. According to the resources-based view, the less a resource can be imitated, the more it contributes to competitive advantage. T 10. Professional certification is NOT a human capital asset. F 11. Traditionally the HRM program influenced the creation of the corporate strategy. F 12. From the human capital perspective, companies should invest in their employees. T 13. Human resources create competitive advantage for organizations, which reflects a resourcebased view. T CHAPTER 3—ENVIRONMENTAL INFLUENCES ON HRM Multiple Choice 2. a. b. c. d.

What does an organization do once it has completed its environmental scan?

It alters the perceptions of stakeholders to match the scan.

It modifies the goals and objectives of the organization.

It analyzes the external environment further for more details.

It determines the impact on the organization.

3. A company wants to change its strategy to include “high tech” services. The HR manager then discovers that there is a shortage of technologically trained people and informs the CEO that the company may have to abandon its new strategy. What is the major environmental factor that has affected the company’s strategy implementation? a. technology b. labour force c. globalization d. legislation

4. What is demographics? a. the study of social influences b. the study of economic climate c. the study of geographic migration d. the study of population statistics 5. A new regulation issued by the government requires certain safety training of employees.

What is the major environmental factor that will affect the company’s HR strategy in this case? a. economics b. globalization c. demographics d. legislation 6. If the HR manager has noticed growth in flows of trade and financial capital across borders, what major environmental factor is the HR manager concerned with? a. economics b. labour force c. globalization d. demographics 7. a. b. c. d.

What are the four stages that can be used to analyze the external environment? scanning, monitoring, forecasting, assessing monitoring, forecasting, assessing, extrapolating scanning, forecasting, monitoring, analyzing monitoring, scanning, assessing, extrapolating

8. According to the text, what are some of the major HR trends that were difficult to forecast more than twenty years ago? a. e-learning, online recruitment, and technology b. mandatory retirement, localization, and ethics c. brain drain, diversity, and work-life balance d. downsizing, outsourcing, and telecommuting 9. Given its more than 50 percent of market share over 50 years ago, why did General Motors (“GM”) fail? a. GM did not cut fixed operating costs deeply enough. b. GM did not understand how external factors interact. c. GM did not look for clues to explain its efficiencies. d. GM did not forecast the number of cars sold in China.

10. What trend is occurring in the labour market with baby boomers?

a. Baby boomers may be eligible for retirement but will delay it. b. Baby boomers will be the only generation to have organizational pensions. c. Baby boomers will live longer than younger generations. d. Baby boomers require greater accommodations in the workplace.

11. Which of the following is a source of information that human resource professionals may rely on when scanning and monitoring an organization’s external environment? a. scenario planning b. conference and seminars c. strategic indicators d. competitive indicators 12. What is the most influential effect of technology on organizations and HRM? a. enhanced automated services and access to information b. increased use of contract employment c. increased concerns about ethical practices d. increased issues related to diversity management True/False 13. According to the textbook, it has been estimated that one in ten jobs in Canada is related to international trade. F 14. A drop in demand for contingent, temporary, and contract employees can predict an economic slowdown. T 15. The labour market influences an organization’s ability to implement strategy. T 16. Stakeholders are also known as constituent groups. T 17. One of the challenges facing environmental scanners is that so much change is happening in so many areas that it is difficult to isolate critical events from insignificant ones. T CHAPTER 4 — THE HR FORECASTING PROCESS Multiple Choice 1. If an organization does not incorporate information from the external environment, what impact will this have on HR forecasting? a. lack of specificity in HR forecasting from top management b. elimination of personnel policies that are irrelevant to competitors c. incompatibility between organizational goals and HR planning

d. avoidance of producing environmental scans with organizational input 2. Which of the following would NOT be considered a “designated group”? a. immigrants b. women c. Aboriginals d. disabled people 3. What type of forecasting is concerned with tracking internal change instituted by the organization’s managers? a. process-based b. event-based c. scenario-based d. transaction-based 4. What HR concept is defined as several HR estimates based on a variety of assumptions? a. projection b. prediction c. predetermination d. presumption 5. Which of the following is NOT a source of external HR supply for an organization? a. current staff b. competitors’ employees c. unemployed persons d. university students 6. What is the first element an organization needs to consider in deriving its external supply calculation for HR forecasting? a. to meet its replacement needs b. to consider the change component c. to predict attrition and retirements d. to forecast HR demand accurately 7. What type of forecasting occurs in the range of two to five years?

a. current b. short-run c. medium-run d. long-run 8. Which concept refers to a prohibition on all external recruiting activities? a. attrition b. hiring freeze c. downsizing d. HR surplus 9. What is created when the HR demand exceeds the current personnel resources available in the organization’s workforce? a. HR surplus b. HR shortage c. HR scarcity d. HR supply 10. What is the external HR supply, given that the organization has a workforce of 500, its historical annual replacement/loss rate is 7 percent, and its corporate downsizing policy will reduce staffing levels by 10 percent? Round to the nearest whole number. a. –85 b. –15 c. 15 d. 85 11. How can organizations reduce their HR costs? a. use contingent workers whenever possible b. pay overtime only when necessary c. ensure that there are more than enough employees d. take a long-run planning approach to HR issues 12. Why are some individuals categorized into designated groups? a. because they are exceptionally skilled and need challenges b. because of their fragile emotional states c. because they require special attention

d. because they need to be protected from discrimination 13. Which of the following is NOT related to attrition? a. retirements b. voluntary turnover c. terminations d. deaths 14. Which of the following is NOT an internal factor that will affect HR demand? a. downsizing management b. vacations and sick days c. planned redundancy d. training and development 15. Which concept refers to a proposed sequence of events with its own set of assumptions and associated program details? a. contingency plans b. predictions c. projections d. scenarios 16. Which of the following is used by companies to minimize the negative impact on individuals during downsizing? a. flextime b. job sharing c. laying off employees equitably based on performance d. outsourcing 17. What is the first step taken in an effective HR forecasting process? a. determining internal and external supply of labour b. identifying the gap between demand and supply c. forecasting demand for labour d. developing an action plan to address future needs True/False

18. HR supply is defined as the organization’s projected requirement for human resources. F (DEMAND) 19. An advantage to internal recruitment is that the employee does not need extensive socialization within the organization. T 20. A serious problem develops in some organizations when the personnel planning process becomes connected to the overall business goals of the organization. F 21. Effective HR forecasting focuses on a comparison between the organization’s current stock of workforce knowledge, skills, and abilities and the numbers and skill competencies desired in the workforce in the future. T 22. HR forecasting is referred to as the “heart” of the HR planning process. T 23. Forecasting is an accurate reflection of future states and is an activity that strongly favours quantitative and easily codified techniques. F Short Answer

CHAPTER 5—DETERMINING HR DEMAND Multiple Choice 1. Which forecasting technique provides a long-run qualitative forecast where experts meet and give their assessments about the future? a. Delphi technique b. critical incident technique c. repatriation technique d. nominal group technique 2. What type of analysis reveals the historical relationship between the operational index and the demand for labour? a. Correlation b. multivariate c. Trend d. Regression 3. In a simple regression prediction model, what does B represent? a. dependent variable

b. constant or intercept c. slope of the linear relationship between X and Y d. independent variable 4. Typically, how is most of the expert information gathered using the Delphi technique? a. Interviews b. discussion groups c. Teleconferencing d. Questionnaires 5. What technique should be used if you want all the participants to have equal participation in the sessions and to minimize dominance, personal attacks, and defensive behaviour? a. Delphi technique b. critical incident technique c. repatriation technique d. nominal group technique 6. a. b. c. d.

How do the experts finally agree on a solution in the nominal group technique? by defending their perspectives by meeting to discuss the options by lobbying the other group members by ranking the solutions with a secret vote

7. What stage in the nominal group technique would typically ask a question like, “What will ABC Corporation’s demand for production workers be in the year 2017?” a. select the experts b. meet face to face c. define the question d. discuss demand estimates 8. In the Delphi technique, why does the project coordinator continue to issue questionnaires to the experts? a. Current information has not been optimal, and so further information is required. b. Additional information still needs to be gathered regarding the predetermined questions. c. Information gathered to date has not led the group to make a consensual decision. d. Current information is insufficient in some way that is required to make future supply estimates.

9. Which of the following demand forecasting methods is NOT a quantitative method? a. trend analysis b. Delphi technique

c. regression analysis d. staffing table 10. What type of analysis presupposes that a linear relationship exists between sales and the number of employees? a. ratio b. multivariate c. trend d. regression True/False 11. A staffing table forecasts the total HR demand required for operational or short-run time periods. T 12. In the Delphi method experts do not meet, but they do in the nominal group technique. T 13. A ratio analysis is a quantitative method of projecting HR demand by analyzing the relationship between an operational index and the number of employees required. T 14. The Delphi technique is a quantitative method for deriving detailed assumptions of long-run HR demand. F 15. Scenario forecasting is based on the premise that because the future course of events is not known with certainty, it is necessary to develop several plausible sets of outcomes. T 16. The last stage in the nominal group technique is a secret vote that determines the highest ranking for the group’s HR demand solution. T 17. Unlike trend analysis, impact analysis relies on subjective, but expert, judgements. T 18. The demand for human capital resources is determined by the strategic and operational requirements of the firm or business unit. T

CHAPTER 6—ASCERTAINING HR SUPPLY Multiple Choice 1. Why do organizations prefer to hire an employee from within the organization rather than from outside the organization? a. to select candidates with new ideas and skills

b. to stabilize the HR supply with external sources c. to maintain a ratio of internal to external candidates d. to reinforce employee loyalty and performance 2. Why is succession planning critical for effective HR planning? a. It helps to develop employees with new experiences and jobs in case they are laid off. b. It helps employees to stay motivated because it promotes them for their performance. c. It helps an organization to stabilize its organizational structures and flexibility. d. It saves time and money and helps employees to smooth their movement for external hiring.

3. What is the first step in a HR supply analysis? a. to examine skills and management inventories b. to determine the HR demand available c. to calculate the ratio of hires to retires d. to analyze the external environment 4. What type of model utilizes a series of matrices that detail the various patterns of movement to and from the various jobs in an organization? a. recency b. Markov c. probabilistic d. vacancy 5. If the organization’s goal is to monitor and control absenteeism and employee turnover, what is another term for this HR strategy called? a. attrition b. succession c. absenteeism d. retention 6. Which of the following is a hard cost associated with replacing workers? a. lost customer contacts b. increased turnover c. lost production d. orientation and training time 7. If you wanted to know the best technique for tracking the number of individuals who move annually between various job levels in an organization, which one would you choose? a. Markov model

b. Delphi technique c. succession planning d. ripple effect 8. An organization requires experienced civil engineers, resulting in the HR demand for engineers exceeding its current engineering personnel resources. What is this called? a. HR surplus b. HR shortage c. HR scarcity d. HR supply 9. Which of the following is NOT a reason that links succession planning to effective HR planning? a. It enables smooth internal employee movement and continuity. b. It improves employee opportunities for management. c. It supports new organizational structures and flexibility. d. It motivates employees and promotes them for performance.

10. An organization is experiencing a shortage of certain key positions. What would be the first step it would take in conducting a HR supply analysis? a. examine skills and management inventories b. determine the HR demand available c. calculate the ratio of hires to retires d. analyze the external environment True/False 11. A skills inventory is an individualized personnel record held on each employee including those currently in management or professional positions. F 12. Succession readiness codes state what the employee’s level of performance will be in the future. F 13. Linear programming is a complex mathematical procedure commonly used for project analysis in engineering and business applications. T 14. When an individual is transferred or promoted, the resulting changes are referred to as chain effects. T 15. A management inventory is used for professional or technical personnel. T

16. In the vacancy model, personnel supply requirements are considered for many levels simultaneously. F Short Answer

Chapter 2 Strategy and Human Resources Planning MULTICHOICE 1. What is the first step in the strategic planning process?

(A) putting together the human resource management team (B) executing the human resource plan (C) establishing the mission, vision, and values of the organization (D) aligning the human resource plan and the strategic plan Answer : (C)

2. Kramer Athletic Equipment is planning the future of the organization. In this process, the firm is making decisions such as whether to maintain its current path as industry leader in the running shoe business, or branch out to include casual footwear. In addition, the company is also discussing the various needs it will have for new staff if it does choose to go in a new direction. What is Kramer Athletic Equipment doing?

(A) strategic planning (B) human resources planning (C) applying principles of strategic human resources management (D) planning both its business needs and its HR needs Answer : (C)

3. Organization Z is planning its future. In the process, the firm is making decisions such as what type of market it wants to be the leader in and what path to take to achieve this goal. What is Organization Z doing?

(A) strategic planning (B) human resources planning (C) performing a Markov analysis (D) applying principles of strategic human resources management Answer : (A)

4. Eldorado Electronics wants to move from the stagnant calculator industry into the smart phone industry. To do so, however, it would have to make significant changes to its approach to product development in order to gain an edge in this competitive industry. What is the smartest next step for Eldorado Electronics?

(A) It should consider how its strategic plans will affect its HR needs.

(B) It should engage in human resources planning.

(C) It should apply principles of strategic human resources management.

(D) It should consider how its strategic plans will affect HR needs and also how its current HR status will affect its strategic plans.

Answer : (D)

5. HR planning requires HR managers to focus more on an alignment between HR plans and which of the following?

(A) the organization's financial strategy (B) the organization's marketing position (C) the organization's strategic plan (D) the competitive environment Answer : (C)

6. On the entrance to Mac Pencils' factory are the words "to provide the world with high-quality and dependable pencils." What is this an example of?

(A) strategic vision (B) mission (C) core values (D) core resources Answer : (B)

7. Which of the following best captures the strategic intent of the organization?

(A) its mission (B) its vision (C) its core values (D) its strategic human resource plan Answer : (B)

8. Which of the following best describes the core values of a company?

(A) They represent the alignment of the strategic plan with the human resource plan.

(B) They are strong enduring beliefs and principles of the company.

(C) They are the basic purpose of the organization.

(D) They provide a perspective on where the company is headed.

Answer : (B)

9. During its strategic retreat, the top management team at IAMME Gold Corporation pondered on the question "What's the organization reason for being?" What was the team most likely focusing on?

(A) the firm's strategic vision (B) the firm's core values (C) the firm's mission (D) the firm's competitive position Answer : (C)

10. As part of its strategic planning process, TJX Corporation is involved in a systematic, regular monitoring of major external forces influencing the organization. What is this process called?

(A) external forecasting (B) human resource planning (C) Markov analysis (D) environmental scanning Answer : (D)

11. Which of the following is NOT generally considered a component of a firm's competitive environment?

(A) rival firms (B) new entrants (C) labour laws (D) suppliers Answer : (C)

12. Which of the following deliberations on the competitive environment generally involves an active

role by HR managers?

(A) an analysis of new entrants (B) an analysis of the supply and demand for labour (C) coordination with suppliers (D) minimizing the technical advantages of rival firms Answer : (B)

13. What do we call integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers?

(A) core capabilities (B) competitive advantage (C) human capital (D) organizational competencies Answer : (A)

14. An organizations' core capabilities consist of three components. Which of the following is NOT one of them?

(A) processes (B) systems (C) people (D) cultural audit Answer : (D)

15. What do we consider the firm's resources to be when they improve the efficiency or effectiveness of the company?

(A) difficult to imitate (B) valuable (C) organized (D) rare Answer : (B)

16. Which statement best describes strategic knowledge workers?

(A) They have skills that are valuable but not unique.

(B) They have firm-specific skills directly related to company strategy.

(C) They have unique skills directly linked to the company's strategy.

(D) As consultants, they have strategic skills.

Answer : (C)

17. Which statement best describes the skills of core employees?

(A) Their skills are not directly related to company strategy.

(B) They have firm-specific skills directly related to company strategy.

(C) They have skills that are valuable but not unique.

(D) Their skills are available to all firms.

Answer : (C)

18. From an organization's perspective, what is an important shortcoming of having to rely on parttime employees?

(A) limited benefits (B) costs of continuous replacement (C) lack of training (D) no job security Answer : (B)

19. As part of the strategic planning process, XYZ Inc. recently examined the attitudes and activities of the company's workforce. What was XYZ doing?

(A) an environmental scan (B) a cultural audit (C) a trend analysis (D) a demand forecast Answer : (B)

20. Smith Frozen Foods performs a yearly employee survey to assess how its employees feel about

safety on the job, the comfort of the working conditions, and their general level of satisfaction with their work, managers, and coworkers. What is Smith Frozen Foods most likely performing?

(A) a job satisfaction survey (B) an environmental analysis (C) a cultural audit (D) an engagement measure Answer : (C)

21. What is values-based hiring?

(A) hiring employees whose values correspond to their corporate cultures (B) hiring employees based on good ethical values (C) hiring decisions that lead to new values being adopted by the company (D) hiring executives who then instill their values in the company Answer : (A)

22. Which of the following best describes forecasting human resources needs?

(A) It is scientific and relatively error-free.

(B) It is difficult and should only be done on rare occasions.

(C) It should rely strictly on quantitative approaches, which utilize sophisticated analytical models.

(D) It estimates the number and type of people that are needed to meet organizational objectives.

Answer : (D)

23. Which of the following should you take into account when forecasting demand?

(A) absenteeism (B) turnover (C) business cycles (D) labour mobility Answer : (C)

24. Kappa Technology is a firm in the high-technology sector. It needs to hire individuals with very specific knowledge and abilities, and it needs to do so quickly. Which aspect of employee forecasting

will be most important for this company?

(A) skills inventories (B) staffing tables (C) Markov analysis (D) succession planning Answer : (A)

25. XYZ Corporation wants to track the percentage and actual number of employees who remain in each of the firm's job from one year to the next. Which of the following would XYZ Corporation benefit from?

(A) a replacement chart (B) a skills inventory (C) a Markov analysis (D) a succession plan Answer : (C)

26. Manning Logistics laid off nine employees from data-entry positions in its finance division. Two weeks later, it hired 15 employees into data-entry positions in the inventory division. What mistake has the company committed?

(A) faulty cultural audit (B) not forecasting properly (C) faulty goal alignment (D) not analyzing the internal labour force Answer : (B)

27. What is the difference between trend analysis and management forecasts?

(A) Trend analysis is used to analyze the business environment and management forecasts predict labour needs.

(B) Trend analysis uses organizational indexes and management forecasts utilize statistical techniques.

(C) Trend analysis is quantitative and management forecasts are qualitative.

(D) Trend analysis has proven success and management forecasts have major shortcomings.

Answer : (C)

28. Which of the following is a graphical representation of all organizational jobs along with the numbers of employees currently occupying those jobs and future employment requirements?

(A) a Markov analysis (B) a trend analysis (C) a skills inventory (D) a staffing table Answer : (D)

29. What is the most important information obtained from a Markov analysis?

(A) human capital readiness (B) what types of attitudes employees have (C) what positions are going to be coming open and will require a new hire (D) how many individuals are ready for promotion Answer : (C)

30. Which of the following is NOT a qualitative approach to demand forecasting?

(A) trend analysis (B) Delphi technique (C) soliciting expert opinion (D) management forecast Answer : (A)

31. Which of the following is the process of identifying, developing, and tracking key individuals so that they may eventually assume top-level positions?

(A) target forecasting (B) predicted change (C) succession planning (D) replacement selection Answer : (C)

32. As part of the SWOT analysis, the internal analyses of the firm would include an analysis of which of the following?

(A) opportunities (B) strategy (C) threats (D) weaknesses Answer : (D)

33. Vindal Fabrics has determined that its organizational strength is being an industry leader in producing upholstery fabrics for automobiles. The company believes its weakness is its performance in Southeast Asia. It has also determined that it is missing an opportunity by not yet branching into upholstery for public transit seats. In order to complete a SWOT analysis, does Vindal Fabrics need to do next?

(A) It needs to see that its major threat is the economic downturn of the auto industry.

(B) Its HR department needs to address the company's major weakness.

(C) It needs to perform a revenue analysis in order to see what chances it can take.

(D) Its HR department needs to address the company's missed opportunity.

Answer : (A)

34. Which of the following is a cooperative strategy pursued by firms?

(A) joint ventures (B) mergers (C) acquisitions (D) diversification Answer : (A)

35. In what way can HR best help ensure that a strategic alliance or joint venture goes smoothly in the beginning?

(A) plan labour supply needs for both organizations (B) systematically monitor employee morale for both organizations (C) teach employees about the other organization (D) assess the compatibility of the two organizational cultures

Answer : (D)

36. What do we call the internal alignment of HR practices to establish a configuration that is mutually enforcing?

(A) vertical fit (B) horizontal fit (C) HR alignment (D) enforcing fit Answer : (B)

37. What do we call reducing the workforce through the departure of employees who resign or retire?

(A) attrition (B) contraction (C) contracting out (D) termination Answer : (A)

38. Organization Y is a unionized textiles manufacturing company that is downsizing. What will Organization Y most likely use when deciding whom to lay off first?

(A) seniority (B) the payroll (C) what skills and abilities the company needs to thrive (D) talent Answer : (A)

39. Severance pay is usually calculated based on which of the following?

(A) the employee's years of service and salary (B) complex formulas administered by the federal government (C) the employee's skills and abilities (D) the employee's education and performance

Answer : (A)

40. ATM Company has experienced a recent growth in its business. Which of the following is NOT a likely response to its new HR demands?

(A) Hire full-time employees (B) Ask employees to work over-time (C) Allow for attrition (D) Use contract workers Answer : (C)

41. What is an HR "dashboard"?

(A) a strategic tool developed by the Boston Consulting Group (B) a SWOT analysis at the HR level (C) a balanced scorecard (D) a software that tracks and graphically displays HR statistics so they can be viewed by managers at a glance Answer : (D)

42. Which of the following is a method for measuring a firm's strategic alignment?

(A) Markov analysis (B) a balanced scorecard (C) benchmarking (D) an HR "dashboard" Answer : (B)

43. Which term refers to an enthusiastically adopted tool for mapping a firm's strategy in order to ensure strategic alignment?

(A) target forecasting (B) predicted focus (C) balanced scorecard (D) replacement selection

Answer : (C)

44. Which of the following is an important use of the balanced scorecard?

(A) to help balance internal and external fit (B) to help managers translate their firms' strategic goals into operational objectives (C) to help managers balance the costs and benefits of HR strategies (D) to help with the SWOY analysis Answer : (B)

45. An organization states that teamwork and working together are important in its strategy but gives bonuses to individuals who excel independently. What is this an example of?

(A) a misalignment of internal fit (B) a misalignment of external fit (C) a misalignment of internal and external strategy (D) a misalignment of strategy and HR Answer : (A)

46. Scenario 2.1 Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and Rogers On Demand, Blockbuster struggled to stay relevant in a techsavvy environment where videos and games could now be rented conveniently from the comfort of one's couch via computer or TV. Despite efforts to try to stay relevant, Blockbuster did not leverage technology that had become an important part of their consumer base's daily lives. As a result, Blockbuster was not able to fight off the competition.

Refer to Scenario 2.1. To remain competitive, Blockbuster Canada needed to systematically monitor the major external forces influencing the movie/game rental business. Which of the following would be important to its success?

(A) analysis of the internal environment (B) environmental scanning (C) changes in demographics (D) changes in its mission, vision, and values Answer : (B)

47. Scenario 2.1 Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and Rogers On Demand, Blockbuster struggled to stay relevant in a techsavvy environment where videos and games could now be rented conveniently from the comfort of one's couch via computer or TV. Despite efforts to try to stay relevant, Blockbuster did not leverage technology that had become an important part of their consumer base's daily lives. As a result, Blockbuster was not able to fight off the competition.

Refer to Scenario 2.1. Blockbuster Canada managers could have successfully advanced the company and remained relevant by focusing on which of the following?

(A) an environmental analysis (B) what they do best, traditional rentals (C) technological changes including information technology and innovations (D) incentives to keep consumers coming back Answer : (C)

48. Scenario 2.1 Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and Rogers On Demand, Blockbuster struggled to stay relevant in a techsavvy environment where videos and games could now be rented conveniently from the comfort of one's couch via computer or TV. Despite efforts to try to stay relevant, Blockbuster did not leverage technology that had become an important part of their consumer base's daily lives. As a result, Blockbuster was not able to fight off the competition.

Refer to Scenario 2.1. What is one of the most important assessments a firm like Blockbuster could have made in order to stay relevant?

(A) identifying the needs of its customers (B) identifying the needs of its producers (C) identifying the needs of its employees (D) teaming up with the competition Answer : (A)

49. Scenario 2.1 Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and Rogers On Demand, Blockbuster struggled to stay relevant in a tech-

savvy environment where videos and games could now be rented conveniently from the comfort of one's couch via computer or TV. Despite efforts to try to stay relevant, Blockbuster did not leverage technology that had become an important part of their consumer base's daily lives. As a result, Blockbuster was not able to fight off the competition.

Refer to Scenario 2.1. Blockbuster's competitive environment includes which of the following?

(A) its customers, HR strategy, new entrants, core capabilities (B) its environmental scanning and analysis (C) its environmental analysis, strategic planning, and HR strategy (D) its customers, rival firms, new entrants, substitutes, and suppliers Answer : (D)

50. Scenario 2.1 Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and Rogers On Demand, Blockbuster struggled to stay relevant in a techsavvy environment where videos and games could now be rented conveniently from the comfort of one's couch via computer or TV. Despite efforts to try to stay relevant, Blockbuster did not leverage technology that had become an important part of their consumer base's daily lives. As a result, Blockbuster was not able to fight off the competition.

Refer to Scenario 2.1. For years, Blockbuster survived as a successful entity with various competitors until Netflix and Rogers On Demand began making movies and games available online.

Which of the following most likely contributed to Blockbuster going out of business?

(A) economic, global, political, and environmental factors (B) technological, psychological, and physical factors (C) technological changes, social concerns, and demographic and labour market trends (D) the lack of knowledge workers Answer : (C)

51. Scenario 2.2 Avie Products Inc. is planning to add a third shift to its production schedule. It currently has 450 workers involved in all aspects of its fertilizer business, best done in Canada. A recent surge in demand from its global customers is driving the need for more workers; however, Simi Meher, the CEO, is concerned that the surge may be temporary, especially in light of the recent economic downturns in the global environment where Avie does business.

Refer to Scenario 2.2. Which approach could Avie use to forecast demand for its products?

(A) staffing tables (B) Markov analysis (C) skill inventories (D) trend analysis Answer : (D)

52. Scenario 2.2 Avie Products Inc. is planning to add a third shift to its production schedule. It currently has 450 workers involved in all aspects of its fertilizer business, best done in Canada. A recent surge in demand from its global customers is driving the need for more workers; however, Simi Meher, the CEO, is concerned that the surge may be temporary, especially in light of the recent economic downturns in the global environment where Avie does business.

Refer to Scenario 2.2. What would assist Avie in determining how many additional workers it would need for the third shift?

(A) reconciling supply and demand (B) Markov analysis (C) replacement charting (D) trend analysis Answer : (A)

53. Scenario 2.2 Avie Products Inc. is planning to add a third shift to its production schedule. It currently has 450 workers involved in all aspects of its fertilizer business, best done in Canada. A recent surge in demand from its global customers is driving the need for more workers; however, Simi Meher, the CEO, is concerned that the surge may be temporary, especially in light of the recent economic downturns in the global environment where Avie does business.

Refer to Scenario 2.2. What is the best strategy for Avie to follow with respect to workers on the third shift?

(A) hire full-time employees to get their commitment (B) hire part-time staff (C) get management to do the extra work (D) outsource the work to India Answer : (B)

54. Scenario 2.2 Avie Products Inc. is planning to add a third shift to its production schedule. It currently has 450 workers involved in all aspects of its fertilizer business, best done in Canada. A recent surge in demand from its global customers is driving the need for more workers; however, Simi Meher, the CEO, is concerned that the surge may be temporary, especially in light of the recent economic downturns in the global environment where Avie does business.

Refer to Scenario 2.2. Assume that Avie goes ahead with the third shift. What can the company use to evaluate the effectiveness of this strategy in a year's time?

(A) Markov analysis (B) trend analysis (C) skill inventories (D) benchmarking Answer : (D)

TRUEFALSE 55. HR planning is the process of setting major organizational objectives and developing comprehensive plans to achieve those objectives.

(A) True (B) False Answer : (B)

56. Increased emphasis on HR issues becomes especially critical when organizations consider global strategies, relocation of plants, product innovation plans, and so forth.

(A) True (B) False Answer : (A)

57. Human resources planning plays a key role in organizational strategy implementation because organizational leaders must make decisions regarding resource allocations to human capital, among other things.

(A) True (B) False

Answer : (A)

58. Strategic plans have a strong external orientation that covers major portions of the organization, focusing mainly on how the organization will position itself globally.

(A) True (B) False Answer : (B)

59. Human resources planning (HRP) is the conducting of recruitment and selection methods according to a strategic plan.

(A) True (B) False Answer : (B)

60. The mission statement of an organization is a description of the organization's vision and values.

(A) True (B) False Answer : (B)

61. Organizational core values are the strong enduring beliefs and principles that a company uses as a foundation for its decisions.

(A) True (B) False Answer : (A)

62. Environmental scanning involves the systematic monitoring of internal factors influencing the organization.

(A) True (B) False Answer : (B)

63. Economic factors in environmental scanning include general and global conditions.

(A) True (B) False Answer : (A)

64. The number of hours that Canadians work per week has been trending downward and now hovers around 33 hours a week.

(A) True (B) False Answer : (A)

65. Nearly one-fifth of the workforce is made up of part-time, temporary, and self-employed workers.

(A) True (B) False Answer : (A)

66. National and regional unemployment rates are often considered a general barometer of labour supply.

(A) True (B) False Answer : (A)

67. Human Resources and Skills Development Canada (HRSDC) analyzes labour markets to determine the supply and demand for labour.

(A) True (B) False Answer : (A)

68. External supply of labour is central to strategic planning.

(A) True (B) False Answer : (B)

69. Internal analysis provides strategic decision makers with an inventory of organizational skills and resources.

(A) True (B) False Answer : (A)

70. A cultural audit asks questions such as "How do employees spend their time?"

(A) True (B) False Answer : (A)

71. Core capabilities are integrated skills and knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.

(A) True (B) False Answer : (A)

72. Core capabilities provide a long-term basis for technological innovation, product development, and service delivery.

(A) True (B) False Answer : (A)

73. In general, contract labour possesses skills and knowledge of less strategic value to the organization than core knowledge workers.

(A) True (B) False Answer : (A)

74. Organizations such as Canadian Tire and CIBC conduct cultural audits to examine the attitudes and activities of the external workforce.

(A) True

(B) False Answer : (B)

75. A cultural audit may examine how people are empowered.

(A) True (B) False Answer : (A)

76. A cultural audit asks questions such as "What is the ethnic make-up of my workforce?"

(A) True (B) False Answer : (B)

77. There are two approaches to HR forecasting: quantitative and qualitative.

(A) True (B) False Answer : (A)

78. Trend analysis is a qualitative approach to labour demand forecasting.

(A) True (B) False Answer : (B)

79. Trend analysis relies on a single business factor.

(A) True (B) False Answer : (A)

80. Forecasting may be as informal as having one person familiar with the organization anticipate HR needs.

(A) True

(B) False Answer : (A)

81. Management forecasts are quantitative measurements of future employment needs.

(A) True (B) False Answer : (B)

82. The Delphi technique works best in organizations where dynamic technological changes affect staffing levels.

(A) True (B) False Answer : (A)

83. Staffing tables provide data on external labour supply sources.

(A) True (B) False Answer : (B)

84. Markov analysis is a systematic monitoring of the major external forces influencing an organization.

(A) True (B) False Answer : (B)

85. Markov analysis focuses on the number of employees in particular jobs and their skill levels, compensation, and job tenure.

(A) True (B) False Answer : (B)

86. Succession planning is the process of identifying, developing, and tracking key individuals so

that they may eventually assume top-level positions.

(A) True (B) False Answer : (A)

87. Replacement charts are listings of current jobholders who are potential replacements if an opening occurs.

(A) True (B) False Answer : (A)

88. SWOT analysis includes the strengths only for strategy formulation purposes.

(A) True (B) False Answer : (B)

89. The stages of HR activity associated with a merger are (1) precombination, (2) combination, and (3) solidification and assessment.

(A) True (B) False Answer : (A)

90. Value creation is what the firm adds to a product or service by virtue of making it; it's the amount of benefits provided by the product or service once the costs of making it are subtracted.

(A) True (B) False Answer : (A)

91. Through human resources planning, organizations strive for a proper balance between demand considerations and supply considerations.

(A) True (B) False

Answer : (A)

92. Decisions about employee layoffs are usually based on seniority and/or performance.

(A) True (B) False Answer : (A)

93. A disadvantage of overemphasizing seniority is that less competent employees receive the same rewards and security as more competent employees.

(A) True (B) False Answer : (A)

94. Attrition is the fastest way to achieve workforce reduction.

(A) True (B) False Answer : (B)

95. In unionized firms, layoffs are typically based on performance.

(A) True (B) False Answer : (B)

96. Attrition and early retirement are means for organizations to reduce excess labour.

(A) True (B) False Answer : (A)

97. Under the umbrella of layoff strategies are several work reduction options: reduced workweek, reduced shifts, transfers to related companies, and so on.

(A) True

(B) False Answer : (A)

98. The use of part-time employees creates a problem of labour costs at fast-food restaurants.

(A) True (B) False Answer : (B)

99. Over time, organizations may try to reduce their workforce by relying on attrition.

(A) True (B) False Answer : (B)

100. Severance pay is a lump-sum payment given to terminated employees.

(A) True (B) False Answer : (A)

101. Benchmarking is the process of comparing the organization's processes and practices with those of other companies.

(A) True (B) False Answer : (A)

102. Internal fit (or alignment) means that HR practices are aligned with one another in a mutually reinforcing configuration.

(A) True (B) False Answer : (A)

ESSAY

103. Describe how human resources planning is integrated with strategic planning.

Graders Info : Through strategic planning, organizations set major objectives and develop plans to achieve those objectives. HRP provides a set of inputs that determine what is or is likely to be possible, given the number of available people, training needs, and other people-related issues. HR strategies and action plans are developed according to the overall strategic goals that evolve from the strategy formulation process. During the strategy implementation phase, HRP must make resource allocation decisions, and implement policy, practices, and training that support the decisions and outcomes of the strategic planning process.

104. Describe the three key elements of the HRP model.

Graders Info : The three key elements in the HR planning process are (1) forecasting demand, (2) forecasting supply, and (3) balancing supply and demand considerations.

Forecasting demand involves estimating in advance the number and type of people needed to meet organizational objectives. It may involve a quantitative approach using statistical analysis and mathematical models or a qualitative approach focusing on employee performance and promotability.

Forecasting supply determines if there are sufficient numbers and types of employees available to staff anticipated openings. Sources of supply can be external or internal.

HR planning should strive for a proper balance between the emphasis placed on demand considerations and that placed on supply considerations. Demand considerations are based on the forecast of trends in business activity. Supply considerations involve the determination of where and how candidates with the required qualifications are to be found to fill vacancies.

105. Identify and briefly describe three strategies that managers frequently use to cope with a labour shortage.

Graders Info : (1) Overtime (i.e., asking employees to work extra hours) is a strategy used by most firms during peak periods. (2) Increasingly, organizations are using part-time employees to increase flexibility in scheduling and reducing payroll costs. Many organizations use part-time or contract employees to cover the absences of regular, full-time employees. (3) In addition, nine out of ten Canadian companies-both large and small-make some use of temporary employees. "Temps" are typically used for short-term assignments, vacation fill-ins, for peak work periods, or to cover for employees taking sick leave, pregnancy leave, and so forth.

106. What are the advantages and disadvantages of using attrition as a downsizing strategy?

Graders Info : The primary advantage of using attrition (combined with a hiring freeze) is the ability to control and predict compensation expenses that go beyond the salaries and benefits redeemed from departing employees. When the organization does not replace departing employees, the reduction in recruitment, orientation and training, office space costs, and so forth, can result in substantial savings.

However, the disadvantages of attrition are significant. Current employees may be overburdened with the work of departing employees; their skills may not match the skill sets of the departed workers; and no new skills or ideas are infiltrating the organization. In addition, the organization is unable to control who leaves and who stays, which may result in valuable employees leaving, while less needed ones remain. Attrition also poses the disadvantage of taking a long time, compared to processes that can be accomplished rapidly, such as layoffs.

Indicate whether the statement is true or false.

1. According to the Society for Human Resources Management, more than 75 percent of its companies use

virtual work. a. True b. False 2. Emerging economies such as China and India have many workers who are willing to work longer hours for

less pay than workers in developed countries such as Canada. a. True b. False 3. The labour market influences an organization’s ability to implement strategy. a. True b. False 4. There are more households in Canada with children than without. a. True b. False 5. Canadian newspapers and magazines provide a good source of information for HR professionals. a. True b. False 6. A collective agreement is an example of common law. a. True b. False 7. According to the textbook, it has been estimated that one in ten jobs in Canada is related to international

trade. a. True b. False 8. The ease of transferring information electronically has made concerns about safeguarding company secrets

and intellectual property relatively worry-free. a. True b. False 9. A drop in demand for contingent, temporary, and contract employees can predict an economic slowdown. a. True b. False 10. One of the challenges facing environmental scanners is that so much change is happening in so many areas

that it is difficult to isolate critical events from insignificant ones. a. True b. False 11. The baby boomers are the most important demographic factor that should be monitored by HR professionals. a. True

b. False 12. Stakeholders are also known as constituent groups. a. True b. False 13. Canadian HR trends lag three to five years behind U.S. trends. a. True b. False 14. Economic climate may influence different industries and businesses in a different way and to a different

extent. a. True b. False 15. When HR managers group together and try to change legislation, they are taking a reactive stance. a. True b. False 16. Environmental scanning is the frequent monitoring of trends affecting the organization in the external

environment. a. True b. False 17. In order to increase diversity with visible minorities, organizations can use inclusion programs such as

customizing their communication styles and benefits. a. True b. False 18. Key issues for unions include job security, income security, working hours, and inflation protection. a. True b. False 19. American HR publications are not applicable to Canadian companies because what happens in the U.S. is

not relevant to Canada. a. True b. False 20. According to the text, only 13 percent of organizations were able to learn about their competitors’ moves

early enough to respond to them. a. True b. False 21. “Baby Boomers” are those who were born in between World War I and World War II. a. True b. False 22. Professional consultants provide a limited source of information for HR professionals who are developing

organizational strategies.

a. True b. False 23. Every HR function has the potential to become managed electronically. a. True b. False 24. Whether in Vancouver or New Delhi, managers are influenced by the culture in which they operate. a. True b. False 25. The employer–employee relationship is governed by a legal framework that includes common law, contract

law, and criminal law. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

26. According to the text, what are some of the major HR trends that were difficult to forecast more than twenty

years ago? a. e-learning, online recruitment, and technology b. mandatory retirement, localization, and ethics c. brain drain, diversity, and work-life balance d. downsizing, outsourcing, and telecommuting 27. In light of the Occupy Wall Street protests, what are two major issues that human resources departments

need organizations to address? a. Organizations need to comply with labour legislation and reduce executive bonuses. b. Organizations need to ensure pay equity and discourage high-risk executive behaviours. c. Organizations need to increase hiring of disadvantaged groups and monitor executive compensation. d. Organizations need to continue to support globalization and communicate ethical violations of executives.

28. What timeframe is most relevant for HR strategists? a. 2 to 3 years b. 5 to 6 years c. 9 to 10 years d. 12 to 13 years 29. How many years does Canada lag behind the U.S. in identifying HR trends? a. 1 to 2 years b. 2 to 3 years c. 4 to 5 years d. 6 to 7 years 30. Green Septic and Water Systems Inc.

Green Septic and Water Systems Inc., a British Columbia-based company, designs and manufactures innovative recycled plastic septic and water holding systems that are sold to projects in more than 20 countries. Its

primary business is rotational moulding of polyethylene products, including water/chemical tanks, rainwater tanks, septic tanks, traffic safety barricades, and secure bicycle lockers. Regulation septic and chemical holding tanks are certified by the Canadian Standards Association. Green Septic and Water Systems Inc. hires people based on their specialized technical skills and on their broader innovation and communication skills. The company recruits both nationally and globally. It also continues to provide training to its employees in leadingedge septic and water holding systems technology and provide workplace environments that encourage innovation. The company defines its mission and strategy as being competitive through leading-edge technical ability. Green Septic and Water Systems Inc. gathers information about its environment in order to exploit opportunities or cope with threats.

What internal organizational factors are influencing Green Septic and Water Systems Inc.’s human resource planning? a. technological advances b. legislation c. demographic and social concerns d. staffing policies 31. What is demographics? a. the study of social influences b. the study of economic climate c. the study of geographic migration d. the study of population statistics 32. Which of the following would NOT help governments improve the climate for job creation? a. increasing public debt b. creating balanced labour legislation c. increasing job-training opportunities d. providing tax incentives 33. If an organization is debating over “doing the right thing” with respect to laying off some of the staff in a

department because it is less expensive to outsource the work, what type of issue is the organization dealing with? a. political b. ethical c. social d. economic 34. What makes protecting intellectual property and safeguarding company secrets more difficult? a. ease of transferring technology b. built-in obsolescence of technology c. the small number of employees who control the technology d. accessibility to technology day and night 35. What statement depicts the importance of the labour market and its influence on an organization’s ability to

implement strategy? a. The labour market is the most important demographic factor that should be monitored. b. The labour market is the most important economic factor that should be monitored.

c. The labour market is the most important social factor that should be monitored. d. The labour market is the most important global factor that should be monitored.

36. What are the most important factors to consider when scanning the environment in strategic planning? a. the competition, customers, rival firms, new entrants, substitutes, suppliers, and external labour

supply b. the competition, the global landscape, rival firms, new entrants, substitutes, suppliers, and external labour supply c. the competition, the global landscape, rival firms, new entrants, the business context, suppliers, and external labour supply d. the competition, customers, rival firms, the workforce, substitutes, suppliers, and external labour supply 37. Green Septic and Water Systems Inc.

Green Septic and Water Systems Inc., a British Columbia-based company, designs and manufactures innovative recycled plastic septic and water holding systems that are sold to projects in more than 20 countries. Its primary business is rotational moulding of polyethylene products, including water/chemical tanks, rainwater tanks, septic tanks, traffic safety barricades, and secure bicycle lockers. Regulation septic and chemical holding tanks are certified by the Canadian Standards Association. Green Septic and Water Systems Inc. hires people based on their specialized technical skills and on their broader innovation and communication skills. The company recruits both nationally and globally. It also continues to provide training to its employees in leadingedge septic and water holding systems technology and provide workplace environments that encourage innovation. The company defines its mission and strategy as being competitive through leading-edge technical ability. Green Septic and Water Systems Inc. gathers information about its environment in order to exploit opportunities or cope with threats.

Green Septic and Water Systems Inc. gathers information about its environment in order to exploit opportunities or cope with threats. What is this called? a. environmental scanning b. SWOT c. environmental reporting d. strategic analysis 38. What type of law is the Charter of Rights and Freedoms an example of? a. contract law b. constitutional law c. common law d. criminal law 39. Green Septic and Water Systems Inc.

Green Septic and Water Systems Inc., a British Columbia-based company, designs and manufactures innovative recycled plastic septic and water holding systems that are sold to projects in more than 20 countries. Its primary business is rotational moulding of polyethylene products, including water/chemical tanks, rainwater tanks, septic tanks, traffic safety barricades, and secure bicycle lockers. Regulation septic and chemical holding tanks are certified by the Canadian Standards Association. Green Septic and Water Systems Inc. hires people based on their specialized technical skills and on their broader innovation and communication skills. The company recruits both nationally and globally. It also continues to provide training to its employees in leadingedge septic and water holding systems technology and provide workplace environments that encourage innovation. The company defines its mission and strategy as being competitive through leading-edge technical

ability. Green Septic and Water Systems Inc. gathers information about its environment in order to exploit opportunities or cope with threats.

What important environmental concerns and/or opportunities would influence Green Septic and Water Systems Inc.’s strategic planning? a. environmental concerns of customers b. globalization and localization c. competitive intelligence d. employees’ attitudes toward environmental health 40. How long did it take for the World Wide Web to reach fifty million users? a. 4 years b. 6 years c. 8 years d. 10 years 41. Although the majority of companies have vision statements that emphasize diversity, what percentage of

these companies failed to allocate resources for diversity programs? a. 54 percent b. 64 percent c. 74 percent d. 84 percent 42. According to the textbook, what percentage of HR functions has the potential to become managed

electronically? a. 25 percent b. 50 percent c. 75 percent d. 100 percent 43. A new regulation issued by the government requires certain safety training of employees. What is the major

environmental factor that will affect the company’s HR strategy in this case? a. economics b. globalization c. demographics d. legislation 44. Green Septic and Water Systems Inc.

Green Septic and Water Systems Inc., a British Columbia-based company, designs and manufactures innovative recycled plastic septic and water holding systems that are sold to projects in more than 20 countries. Its primary business is rotational moulding of polyethylene products, including water/chemical tanks, rainwater tanks, septic tanks, traffic safety barricades, and secure bicycle lockers. Regulation septic and chemical holding tanks are certified by the Canadian Standards Association. Green Septic and Water Systems Inc. hires people based on their specialized technical skills and on their broader innovation and communication skills. The company recruits both nationally and globally. It also continues to provide training to its employees in leadingedge septic and water holding systems technology and provide workplace environments that encourage innovation. The company defines its mission and strategy as being competitive through leading-edge technical ability. Green Septic and Water Systems Inc. gathers information about its environment in order to exploit

opportunities or cope with threats.

What would be one of Green Septic and Water Systems Inc.’s most significant current business challenges? a. diverse languages and cultures b. human resource planning c. the global economy d. the environment 45. In what way are HRM responsibilities affected by the economic climate? a. They are concerned about balancing complicated issues related to diversity management. b. They must know the various legislation and workplace quality and safety standards. c. They must ensure privacy, ethics, and culture management policies. d. They are concerned about the effect of unemployment and interest rates on HR planning.

46. What is the most influential effect of technology on organizations and HRM? a. enhanced automated services and access to information b. increased use of contract employment c. increased concerns about ethical practices d. increased issues related to diversity management 47. What is an external environmental factor facing organizations and human resource management? a. employee work–life balance initiatives and programs b. company compensation and reward systems c. economic climate d. competitive intelligence 48. What is another name for stakeholders? a. company shareholders b. business owners c. constituent groups d. lobby groups 49. Green Septic and Water Systems Inc.

Green Septic and Water Systems Inc., a British Columbia-based company, designs and manufactures innovative recycled plastic septic and water holding systems that are sold to projects in more than 20 countries. Its primary business is rotational moulding of polyethylene products, including water/chemical tanks, rainwater tanks, septic tanks, traffic safety barricades, and secure bicycle lockers. Regulation septic and chemical holding tanks are certified by the Canadian Standards Association. Green Septic and Water Systems Inc. hires people based on their specialized technical skills and on their broader innovation and communication skills. The company recruits both nationally and globally. It also continues to provide training to its employees in leadingedge septic and water holding systems technology and provide workplace environments that encourage innovation. The company defines its mission and strategy as being competitive through leading-edge technical ability. Green Septic and Water Systems Inc. gathers information about its environment in order to exploit opportunities or cope with threats.

Green Septic and Water Systems Inc. regularly monitors major external environmental forces influencing its organization. What is this process called? a. demand forecasting

b. influence analysis c. exception reporting d. environmental scanning 50. Which of the following is a source of information that human resource professionals may rely on when

scanning and monitoring an organization’s external environment? a. scenario planning b. conference and seminars c. strategic indicators d. competitive indicators 51. Green Septic and Water Systems Inc.

Green Septic and Water Systems Inc., a British Columbia-based company, designs and manufactures innovative recycled plastic septic and water holding systems that are sold to projects in more than 20 countries. Its primary business is rotational moulding of polyethylene products, including water/chemical tanks, rainwater tanks, septic tanks, traffic safety barricades, and secure bicycle lockers. Regulation septic and chemical holding tanks are certified by the Canadian Standards Association. Green Septic and Water Systems Inc. hires people based on their specialized technical skills and on their broader innovation and communication skills. The company recruits both nationally and globally. It also continues to provide training to its employees in leadingedge septic and water holding systems technology and provide workplace environments that encourage innovation. The company defines its mission and strategy as being competitive through leading-edge technical ability. Green Septic and Water Systems Inc. gathers information about its environment in order to exploit opportunities or cope with threats.

Green Septic and Water Systems Inc. monitors demographic and labour market trends as well as technological and IT changes. Which of the following is it most likely performing? a. a competitive environment scan b. an environment scan c. a strategic plan d. a labour market scan 52. Green Septic and Water Systems Inc.

Green Septic and Water Systems Inc., a British Columbia-based company, designs and manufactures innovative recycled plastic septic and water holding systems that are sold to projects in more than 20 countries. Its primary business is rotational moulding of polyethylene products, including water/chemical tanks, rainwater tanks, septic tanks, traffic safety barricades, and secure bicycle lockers. Regulation septic and chemical holding tanks are certified by the Canadian Standards Association. Green Septic and Water Systems Inc. hires people based on their specialized technical skills and on their broader innovation and communication skills. The company recruits both nationally and globally. It also continues to provide training to its employees in leadingedge septic and water holding systems technology and provide workplace environments that encourage innovation. The company defines its mission and strategy as being competitive through leading-edge technical ability. Green Septic and Water Systems Inc. gathers information about its environment in order to exploit opportunities or cope with threats.

Green Septic and Water Systems Inc. systematically monitors key indicators that may affect its organization.

Which of the following is a most important key indicator that Green Septic and Water Systems Inc. monitors? a. safety technical advances b. competitive intelligence c. Canadian Standards Association (CSA)

d. safety policies and procedures 53. Green Septic and Water Systems Inc.

Green Septic and Water Systems Inc., a British Columbia-based company, designs and manufactures innovative recycled plastic septic and water holding systems that are sold to projects in more than 20 countries. Its primary business is rotational moulding of polyethylene products, including water/chemical tanks, rainwater tanks, septic tanks, traffic safety barricades, and secure bicycle lockers. Regulation septic and chemical holding tanks are certified by the Canadian Standards Association. Green Septic and Water Systems Inc. hires people based on their specialized technical skills and on their broader innovation and communication skills. The company recruits both nationally and globally. It also continues to provide training to its employees in leadingedge septic and water holding systems technology and provide workplace environments that encourage innovation. The company defines its mission and strategy as being competitive through leading-edge technical ability. Green Septic and Water Systems Inc. gathers information about its environment in order to exploit opportunities or cope with threats.

What external organizational factors are influencing Green Septic and Water Systems Inc.’s human resource planning? a. compensation policies b. human resource information systems c. global economy d. environmental practices and procedures 54. What trend is occurring in the labour market with baby boomers? a. Baby boomers may be eligible for retirement but will delay it. b. Baby boomers will be the only generation to have organizational pensions. c. Baby boomers will live longer than younger generations. d. Baby boomers require greater accommodations in the workplace.

55. Which of the following HR publications is published in Canada? a. HR Magazine b. People

Management c. Personnel Journal d. Workplace Today 56. Which demographic change is of concern to organizations and human resource professionals? a. compensation and benefits b. information systems c. health and safety policies d. older workers 57. According to the Global Wood Group, which of the following is NOT part of its environmental scanning? a. external consultants and trainers b. trade publications c. professional associations d. current legislation 58. Given its more than 50 percent of market share over 50 years ago, why did General Motors (“GM”) fail?

a. GM did not cut fixed operating costs deeply enough. b. GM did not understand how external factors interact. c. GM did not look for clues to explain its efficiencies. d. GM did not forecast the number of cars sold in China.

59. What does an organization do once it has completed its environmental scan? a. It alters the perceptions of stakeholders to match the scan. b. It modifies the goals and objectives of the organization. c. It analyzes the external environment further for more details. d. It determines the impact on the organization.

60. Which of the following is a source of information that human resource professionals may rely on when

developing strategies and determining their likely impact on the organization? a. publications b. professional designations c. Delphi analysis d. nominal group technique 61. If the HR manager has noticed growth in flows of trade and financial capital across borders, what major

environmental factor is the HR manager concerned with? a. economics b. labour force c. globalization d. demographics 62. Green Septic and Water Systems Inc.

Green Septic and Water Systems Inc., a British Columbia-based company, designs and manufactures innovative recycled plastic septic and water holding systems that are sold to projects in more than 20 countries. Its primary business is rotational moulding of polyethylene products, including water/chemical tanks, rainwater tanks, septic tanks, traffic safety barricades, and secure bicycle lockers. Regulation septic and chemical holding tanks are certified by the Canadian Standards Association. Green Septic and Water Systems Inc. hires people based on their specialized technical skills and on their broader innovation and communication skills. The company recruits both nationally and globally. It also continues to provide training to its employees in leadingedge septic and water holding systems technology and provide workplace environments that encourage innovation. The company defines its mission and strategy as being competitive through leading-edge technical ability. Green Septic and Water Systems Inc. gathers information about its environment in order to exploit opportunities or cope with threats.

The Vice President of HR at Green Septic and Water Systems Inc. is focused on ensuring that Green Septic and Water Systems Inc. is staffed with the most effective human resources to achieve the organization’s strategic goals. Which term best characterizes the Vice President of HR’s role? a. operational b. strategic c. staffing d. administrative 63. Green Septic and Water Systems Inc.

Green Septic and Water Systems Inc., a British Columbia-based company, designs and manufactures innovative

recycled plastic septic and water holding systems that are sold to projects in more than 20 countries. Its primary business is rotational moulding of polyethylene products, including water/chemical tanks, rainwater tanks, septic tanks, traffic safety barricades, and secure bicycle lockers. Regulation septic and chemical holding tanks are certified by the Canadian Standards Association. Green Septic and Water Systems Inc. hires people based on their specialized technical skills and on their broader innovation and communication skills. The company recruits both nationally and globally. It also continues to provide training to its employees in leadingedge septic and water holding systems technology and provide workplace environments that encourage innovation. The company defines its mission and strategy as being competitive through leading-edge technical ability. Green Septic and Water Systems Inc. gathers information about its environment in order to exploit opportunities or cope with threats.

Green Septic and Water Systems Inc. believes its weakness is its performance in the U.S.A. It has also determined that it is missing an opportunity by not yet branching into children’s plastic kayaks. In addressing these questions, what type of analysis/review is Green Septic and Water Systems Inc. conducting? a. a SWOT analysis b. an analysis of the company’s internal weaknesses c. a revenue analysis in order to see what chances it can take d. a review of the company’s strategic plans 64. What is the purpose of stakeholder groups? a. to generate shareholder wealth and to ensure their investments are paid dividends b. to manage diverse groups of individuals who shape the perceptions of the organization c. to follow the actions of the organization and to lobby to have their interests satisfied d. to influence HR strategy and practices by withholding their votes at the annual meeting 65. What are the four stages that can be used to analyze the external environment? a. scanning, monitoring, forecasting, assessing b. monitoring, forecasting, assessing, extrapolating c. scanning, forecasting, monitoring, analyzing d. monitoring, scanning, assessing, extrapolating 66. Green Septic and Water Systems Inc.

Green Septic and Water Systems Inc., a British Columbia-based company, designs and manufactures innovative recycled plastic septic and water holding systems that are sold to projects in more than 20 countries. Its primary business is rotational moulding of polyethylene products, including water/chemical tanks, rainwater tanks, septic tanks, traffic safety barricades, and secure bicycle lockers. Regulation septic and chemical holding tanks are certified by the Canadian Standards Association. Green Septic and Water Systems Inc. hires people based on their specialized technical skills and on their broader innovation and communication skills. The company recruits both nationally and globally. It also continues to provide training to its employees in leadingedge septic and water holding systems technology and provide workplace environments that encourage innovation. The company defines its mission and strategy as being competitive through leading-edge technical ability. Green Septic and Water Systems Inc. gathers information about its environment in order to exploit opportunities or cope with threats.

What issues does globalization raise for Green Septic and Water Systems Inc.’s human resource planning? a. balancing complicated issues related to language and communication b. differences in country legislations and business practices c. concerns about privacy, ethics, and culture d. employee concerns about compensation and outsourcing

67. Which of the following is a forecasting method that human resource professionals may rely on when

generating predictions about an organization’s future? a. scenario planning b. professional consultants c. strategic indicators d. competitive indicators 68. What are the key issues that unions hope to resolve on behalf of their members? a. telecommuting, flextime, job sharing, and workplace privacy b. asset-backed pensions, job satisfaction, career planning, and diversity c. wages, work–life balance, quality of life, and environmental friendliness d. job security, income security, working hours, and inflation protection 69. If a group of HR managers decides to lobby government in order to change the legislation in their favour,

what type of stance is the group taking? a. reactive b. passive c. proactive d. recursive 70. A company wants to change its strategy to include “high tech” services. The HR manager then discovers that

there is a shortage of technologically trained people and informs the CEO that the company may have to abandon its new strategy. What is the major environmental factor that has affected the company’s strategy implementation? a. technology b. labour force c. globalization d. legislation 71. When was the North American Free Trade Agreement (NAFTA) established? a. 1974 b. 1984 c. 1994 d. 2004 72. Green Septic and Water Systems Inc.

Green Septic and Water Systems Inc., a British Columbia-based company, designs and manufactures innovative recycled plastic septic and water holding systems that are sold to projects in more than 20 countries. Its primary business is rotational moulding of polyethylene products, including water/chemical tanks, rainwater tanks, septic tanks, traffic safety barricades, and secure bicycle lockers. Regulation septic and chemical holding tanks are certified by the Canadian Standards Association. Green Septic and Water Systems Inc. hires people based on their specialized technical skills and on their broader innovation and communication skills. The company recruits both nationally and globally. It also continues to provide training to its employees in leadingedge septic and water holding systems technology and provide workplace environments that encourage innovation. The company defines its mission and strategy as being competitive through leading-edge technical ability. Green Septic and Water Systems Inc. gathers information about its environment in order to exploit opportunities or cope with threats.

What are the technological concerns that affect Green Septic and Water Systems Inc.’s human resource planning? a. increased contracting out, outsourcing, and employee leasing b. concerns about privacy, ethics, and culture c. complicated issues related to language and communication d. operational (i.e., automation), enhanced services, and increased access to information 73. WestJet Airlines studies the websites of other airlines for information about their strategic plans. What

forecasting approach is the company using to obtain information about its competitors? a. impact analysis b. competitive intelligence c. strategic indicators d. competitive indicators 74. Which of the following is NOT one of the top-ten trends that will have a strategic impact on the workplace? a. increasing employee rights due to legislation b. increasing global competition for jobs c. increasing complexity of legal compliance d. increasing growth in national deficit 75. What are two environmental factors facing organizations? a. global economy and demographics b. organizational culture and employee assistance c. human resource planning and training d. labour relations and organizational culture 76. According to Statistics Canada, nine percent of managers are now unionized. What are the two main reasons

that managers are becoming part of unions? a. to deal with compensation and workload issues b. to deal with organizational stress and burnout c. to deal with work–life balance and vacations d. to deal with overload and promotions 77. Which of the following is NOT a factor in determining the number of people available for work? a. percentage of women in the workforce b. unemployment rate c. geographic migration d. graduation rates from educational institutions

78. Describe three actions that can be taken by HR managers to cope with economic uncertainty 79. Identify and briefly describe the four criteria suggested for HR planners to use for identifying significant

trends.

80. Define “stakeholders” and identify five major stakeholders influencing strategy in today’s workplace.

81. Illustrate the environmental analysis process.

82. Identify and briefly describe the four stages that HR planners use to analyze the external environment.

83. Identify and describe two of the six environmental factors affecting HRM. 84. Identify and briefly describe the four sources that HR planners use to keep current with business and HR

trends.

85. Identify three challenges in environmental scanning.

Answer Key 1. False 2. True 3. True 4. False 5. True 6. False 7. False 8. False 9. True 10. True 11. False 12. True 13. False 14. True 15. False 16. False 17. True 18. True 19. True 20. False 21. False 22. False 23. True 24. True 25. False 26. d 27. b

28. a 29. a 30. d 31. d 32. a 33. b 34. a 35. a 36. a 37. a 38. b 39. a 40. a 41. c 42. d 43. d 44. c 45. d 46. a 47. c 48. c 49. d 50. b 51. b 52. d 53. c 54. a 55. d

56. d 57. d 58. b 59. d 60. a 61. c 62. b 63. a 64. c 65. a 66. b 67. a 68. d 69. c 70. b 71. c 72. d 73. b 74. a 75. a 76. a 77. a 78. Actions taken by HR managers to cope with economic uncertainty include linking employee performance

with organizational goals, increasing expectations of employee productivity, putting emphasis on succession planning and readiness, investing in leadership development, using non-cash rewards such as time off, time flexibility, learning opportunities, and retraining employees for new jobs.

79. 1. Are there ripple effects (change in one aspect impacts another, such as social networking sites affecting

both friendships and professional relationships)?

2. How profound are the impacts on people’s priorities, roles, and expectations?

3. How large is the impact scope (number of people impacted)?

4. Will the changes endure over time?

80. Stakeholders are groups of people who have an interest in the projects, policies, or outcomes of an

organization’s decisions. Stakeholders are also known as constituent groups. Some stakeholders are more powerful in influencing an organization.

Typically, the most powerful stakeholders will include: ∙ the board of directors and senior executives ∙ senior management ∙ supervisors ∙ employees ∙ unions Other stakeholders will include: shareholders, customers, vendors/suppliers, the public, government, nongovernment organizations, and any interested party who might be influenced by an organization’s decisions.

81. Refer to “Figure 3.1 – The Environmental Analysis Process” in the textbook.

82. 1. Scanning: an attempt to identify early signals of changes and trends in the environment. This information

is ambiguous, incomplete, and unconnected.

2. Monitoring: a systematic approach to following some key indicators that may affect the organization, such as legislative changes.

3. Forecasting: after monitoring a trend, an attempt to project the possible impact on the organization.

4. Assessing: an attempt to describe the impact of the monitored trend on the organization and make a judgment of the probability of each of several possible outcomes. For example, what would be the impact of a trend in the increase of social networking sites?

83. 1. Economic climate – Several economic factors, such as unemployment rates, the value of the Canadian

dollar, and interest rates, may have an impact on HRM. Two economic trends discussed in the text are globalization and the knowledge economy.

2. Globalization – This is the growth in flows of trade and financial capital across borders. Globalization affects sovereignty, prosperity, jobs, wages, and social legislation. The shift in the global economy has been marked by the rapid growth of emerging economies such as India and China. These countries had workers who were willing to work longer hours for less money than workers in more developed countries.

3. Political and legislative factors – Governments, both provincial and federal, can influence the business environment through political programs that result in changes to laws and regulations. Examples of these are the changes to mandatory retirement in Ontario and tax cuts for job creation.

4. Technological factors – Technology is the process by which inputs from an organization’s environments are transferred to outputs. Technology includes tools, machinery, equipment, and software.

5. Demographic factors – Population changes affect HR significantly. Examples of these are the retirement of baby boomers, the influence of women in the workforce, and Generation X and Y employees. The most important demographic factor is the labour market. The labour market is the area from which an organization recruits its employees. This could include local, regional, provincial, national, or international areas. The number of people available for work depends on factors such as unemployment rates, geographic migration, and graduation rates. In the 21st century, labour markets are becoming more and more international.

6. Social and cultural factors – Social and cultural factors are extremely complex. Social factors are those that specifically define a social group, entity, or stakeholder group. These factors might be formally or informally determined by laws and regulations or through organizational channels such as discipline and terminations.

Cultural factors typically encompass the belief systems (values, attitudes, ethics, norms) attached to certain ethnicities, social groups, or organizational groups.

84. 1. Publications – HR professionals can actively scan Canadian newspapers, business publications, and HR

magazines, journals, and newsletters. These publications can originate in Canada and/or the U.S. 2. Professional associations – These are organizations that professionals join to keep current with what is going

on in their fields of study. Examples of these include the Human Resources Professionals Association (HRPA), the Canadian Society for Training and Development (CSTD), and The Canadian Payroll Association.

3. Conferences and seminars – Conferences, seminars, and workshops are an excellent way to stay current within the field. These have an educational component and usually include information on leading-edge trends and changes in the field.

4. Professional consultants – Experts in particular fields specialize in certain areas, such as human resource information systems or organizational development. Organizations that want the most up-to-date information on a particular area will hire external consultants to assist them.

85. 1. It is not possible to accurately predict the future and to isolate what is really important to HR.

2. So much change is occurring in so many areas that scanners have trouble selecting the significant events.

3. Few trends exist in isolation. It is difficult to correlate a particular issue such as a labour shortage in a particular area with one particular causal factor.

Chapter 4 Job Analysis and Work Design MULTICHOICE 1. What is a key expected benefit of reengineering and less bureaucracy in organizations?

(A) improved access to government programs (B) accelerated decision-making (C) better access to markets (D) better leadership Answer : (B)

2. What is a position?

(A) a group of related activities and duties (B) the different duties and responsibilities performed by one employee (C) a statement of the knowledge, skills, and abilities required to perform work (D) a statement of the tasks, duties, and responsibilities associated with work Answer : (B)

3. What is a job specification?

(A) a statement of the knowledge, skills, and abilities required to perform the job (B) a statement of the tasks, duties, and responsibilities associated with the job (C) a group of related activities and duties (D) the different duties and responsibilities performed by one employee Answer : (A)

4. Which of the following is an example of a job specification?

(A) To be a grocery store cashier, you need to know how to work a cash register, know the

rules of the store, and know basic math.

(B) To be a grocery store cashier, you have to deal with the public and be able to stand on

your feet for long hours.

(C) A grocery store cashier assists customers in paying for their grocery items and

answering questions about products.

(D) A grocery store cashier is responsible for making sure items are bagged or tagged, and

that all customers pay for their items.

Answer : (A)

5. In a newspaper ad, Company A stated that for the HRIS Supervisor's job, the following

are required: an appropriate university degree, five years of corporate experience, and working knowledge of statistical analysis and software." What are these requirements an example of?

(A) a job requirement (B) a job description (C) a position (D) a job specification Answer : (D)

6. "The IT specialist is responsible for the smooth running of all staff computers" is most

likely an excerpt from which of the following?

(A) a job description (B) a job specification (C) a job analysis (D) a job position Answer : (A)

7. Which of the following would be a useful approach for organizations to use in addressing

discrepancies between the knowledge, skills, and abilities of the jobholder and the KSAs required for the job?

(A) rewards (B) corporate reorganization (C) cooperation (D) training Answer : (D)

8. If the criteria used to evaluate employee performance are vague and not job related, what

is the most likely result?

(A) The organization can be charged with unfair discrimination.

(B) The organization can suffer productivity losses.

(C) The organization can suffer from bad publicity.

(D) The organization can suffer from lack of trust and commitment from employees.

Answer : (A)

9. There could be legal challenges if specific performance requirements of a job are not

based on which of the following?

(A) best practices in industry (B) peer evaluations (C) interview data (D) valid job-related criteria Answer : (D)

10. Why is job analysis considered the cornerstone of HRM? (A) because the information collected serves many HRM functions (B) because it is done in a scientifically sound and valid way (C) because the information comes from job incumbents who know the job the best (D) because it is required by law Answer : (A)

11. What is a key advantage of division of labour in organizations?

(A) improved efficiency (B) less need for managers (C) greater creativity (D) increased employee autonomy Answer : (A)

12. What is the ultimate purpose of job analysis?

(A) to make sure that societal decisions are fair (B) to increase performance and productivity of the organization (C) to have a sense of what employees should be or are doing in their jobs (D) to organize work in a meaningful way Answer : (B)

13. Which of the following is most correct when it comes to job analysis?

(A) Artificial inflation of job duties must always be double-checked against the NOC. (B) A job analyst must weigh information obtained from the NOC above incumbent data.

(C) A job analyst must weigh manager information more heavily than job incumbent data.

(D) More information about the job is always better.

Answer : (D)

14. What is a key objective of the National Occupational Classification compiled by the

federal government?

(A) It helps to speed up audits by the government.

(B) It allows for greater uniformity of job titles and job descriptions across the country.

(C) It serves as the base for the Job Classification Guide.

(D) It transforms career planning.

Answer : (B)

15. Which of the following is NOT a method to conduct job analysis?

(A) task inventory development (B) the critical incident method (C) the position analysis questionnaire (D) divisional job analysis Answer : (D)

16. In doing its job analyses, ABC Company, interviews its accountants on the factors that

contribute to their success as accountants in the firm. Which job analytic technique is being used by the company?

(A) competency-based analysis (B) task inventory analysis (C) critical incident method (D) the position analysis questionnaire Answer : (C)

17. Sally is interviewing an employee, asking him to describe his job, how it is performed,

what work is done, and what tools and equipment are used. What style of job analysis is Sally performing?

(A) the critical incidents style of job analysis (B) the task analysis style of job analysis (C) the PAQ style of job analysis (D) the occupation classification style of job analysis Answer : (A)

18. Which of the following job analysis methods utilize "interviews"?

(A) critical incidents, PAQ, and competency-based analysis (B) critical incidents and competency based analysis (C) task analysis and competency-based analysis (D) PAQ, task analysis, and critical incidents Answer : (B)

19. What do we call an analysis in which the emphasis is placed on characteristics of

successful performers rather than standard duties?

(A) a person-based job analysis (B) a competency-based analysis (C) a performance-based job analysis

(D) a team-based analysis Answer : (B)

20. What is the most important difference between competency-based analysis and all other

forms of job analysis discussed in the textbook?

(A) Competency-based analysis is better at keeping pace with the quickly changing nature of

work.

(B) Competency-based analysis relies solely on information obtained from job incumbents.

(C) Competency-based analysis focuses on how the job is currently done.

(D) Competency-based analysis requires a very high degree of training on the part of the

analyst.

Answer : (A)

21. What can result from generically written job descriptions?

(A) restructuring (B) openness to change (C) role ambiguity (D) role precision Answer : (C)

22. Kirk is learning a new job by watching his co-workers and asking questions. He notices

that some of his co-workers stress the importance of certain tasks, while others don't do these tasks at all. This has left Kirk somewhat stressed by what he should and should not be doing in his new role. What does Kirk need?

(A) a job description (B) a job analysis (C) information from the NOC (D) job specifications Answer : (A)

23. As part of its restructuring efforts, XYZ Company is redesigning its jobs. What should be

a basic consideration in this process?

(A) the impact on the environment (B) the costs to restructure (C) the costs to restructure and the benefits of redesigned jobs (D) the organizational objectives the job was created to fulfill Answer : (D)

24. What is the main difference between job analysis and job design?

(A) Job analysis looks at jobs as they currently are; job design is about reorganizing work.

(B) Job analysis is required to ensure that HR functions are based on sound and valid data;

job design is focused on compensation and the financial worth of the work.

(C) Job analysis is a process; job design is a function.

(D) Job analysis is the study of jobs as currently performed; job design is concerned with

changing job structures to improve efficiency.

Answer : (D)

25. In which situation would a job design be recommended?

(A) New technology has drastically changed the way that work is done in a manufacturing

plant shop floor and employees are finding there is a lot more spare time.

(B) Due to a recent change in upper management and benefit policies, several hundred

highly skilled employees have recently left the organization and moved to a competitor.

(C) The culture of the organization is deemed by an external consultant to be "stagnant" and

in need of a change.

(D) Members of the organization are trying to form a union.

Answer : (A)

26. In discussing how jobs can be enriched, Frederick Hertzberg suggested several factors

that can help in this process. Which of the following is NOT one such factor?

(A) increasing the level of difficulty of the job (B) allowing employees to retain more authority over work outcomes (C) adding new tasks to the job that require employee growth (D) increasing the pay for work done

Answer : (D)

27. An owner of a mall-based retail shop chain has asked front-line sales associates to attend

a twice-yearly all-day meeting where they share ideas about possible new products, innovations, and ideas about improving work flow. What is the owner most likely attempting to implement?

(A) job involvement (B) job enrichment (C) brainstorming (D) a culture audit Answer : (B)

28. Which of the following is an accurate description of the five core job dimensions of

Hackman and Oldham's job characteristics model?

(A) skill variety, task identity, task significance, autonomy, and feedback (B) feedback, task identity, job identity, skill variety, and autonomy (C) autonomy, feedback, job security, task identity, and skill variety (D) skill variety, task identity, job security, autonomy, and feedback Answer : (A)

29. What factors does Herzberg describe as key to enriching jobs?

(A) pay, promotion, pension, purpose, and perks (B) achievement, recognition, growth, responsibility, and performance of the whole job (C) safety needs, social needs, self-esteem needs, and self-actualization (D) skill variety, task identity, task significance, autonomy, and feedback Answer : (B)

30. According to the work of Herzberg, which of the following methods can managers use to

enrich the jobs of employees?

(A) improving pay (B) increasing benefits

(C) adding more responsibility to jobs (D) improving leadership Answer : (C)

31. ABC Inc. wants to enrich its jobs vertically. Which of the following can this be

accomplished through?

(A) forming teams that have greater authority for self-management (B) providing performance results to employees (C) assigning less work to each employee (D) increasing salaries and benefits for employees Answer : (A)

32. According to the job characteristics model, what three psychological states of a

jobholder result in motivated, satisfied, and productive employees?

(A) meaningfulness of work, responsibility for completion of a whole identifiable piece of

work, and knowledge of work results (B) meaningfulness of work, task significance, and autonomy (C) meaningfulness of work, responsibility for outcomes, and fair compensation (D) meaningfulness of work, responsibility for outcomes, and knowledge of work results Answer : (D)

33. Behavioural-based job design studies focus on two key simultaneous outcomes. What are

these?

(A) organizational efficiency and employee job satisfaction (B) organizational efficiency and effectiveness (C) organizational restructuring and job design (D) employee autonomy and job design Answer : (A)

34. What is often cited as the most important factor contributing to the success of employee

involvement groups?

(A) team pay and benefits (B) appropriate job design (C) organizational design (D) comprehensive training of employees Answer : (D)

35. Employee empowerment is a technique of involving employees in their work through

which of the following processes?

(A) development (B) inclusion (C) team building (D) banding Answer : (B)

36. Which organizational situation is most likely to result in employees who feel most

empowered?

(A) The employees are allowed to set their own work schedules so they can have better

work-life balance.

(B) The employees are allowed to spend a few minutes every day coming up with creative

ideas for the suggestion box.

(C) The employees have access to sensitive information so they can make more informed

decisions about their work.

(D) The employees have a large training budget and they are allowed to spend their training

dollars on courses they choose and as they see fit.

Answer : (C)

37. What is the concept called when "the interaction and outcome of team members are

greater than the sum of their individual efforts"?

(A) optimal performance (B) positive culture (C) energy

(D) synergy Answer : (D)

38. What two characteristics do group/team techniques have in common?

(A) enhancing collaboration and increasing synergy (B) enhancing collaboration and improving morale (C) improving morale and increasing synergy (D) enhancing communication and increasing synergy Answer : (A)

39. Which of the following is an example of an employee involvement group?

(A) a group of employees who come together once a year to brainstorm new workflow ideas (B) a group of employees who meet after work hours to discuss their interest in hiking and

other outdoor activities (C) a group of employees who are allowed to take specialized training courses in statistical

analysis (D) a group of employees who meet weekly to brainstorm a sequel to a popular product line Answer : (D)

40. What are the four phases in team development?

(A) forming, storming, norming, and performing (B) forming, norming, performing and dying (C) forming, storming, norming and dying (D) forming, norming, storming and dying Answer : (A)

41. Which of the following is NOT a synergistic team characteristic?

(A) support (B) consensus

(C) acceptance (D) agreement Answer : (D)

42. XYZ Corporation recently formed a team comprising a mix of specialists tasked with the

specific objective of developing a new product. What is this type of team called?

(A) a self-directed team (B) a specialist team (C) a cross-functional team (D) a process improvement team Answer : (C)

43. Team synergy is heightened when team members engage in behaviours such as support,

active listening, consensus decision making, and which of the following?

(A) disagreement (B) prioritizing options (C) charismatic leadership (D) unanimity Answer : (A)

44. Company A is planning to set up a "virtual team" for a project. Which of the following is

the best advice for this team to be successful?

(A) Team members should be selected based on certain personal characteristics such as a

collaborative mindset.

(B) All team members should understand advanced computer and telecommunications

technology so that breakdowns in communication do not occur frequently.

(C) Team members should all have Skype accounts.

(D) Team members should NOT meet in person.

Answer : (A)

45. What is the typical method used by organizations to design compressed work weeks?

(A) giving employees the work to do at home (B) giving a free day off (C) increasing the number of hours worked per day (D) giving a week off every month Answer : (C)

46. Which of the following is a benefit of job sharing?

(A) reduced employee layoffs (B) less turnover (C) less absenteeism (D) less conflict Answer : (A)

47. What do we call the type of work schedule in which employees can adjust their daily

starting and quitting times, provided that they work a certain number of hours per day or week?

(A) a compressed workweek (B) a shorter workweek (C) a flextime arrangement (D) an adaptable schedule Answer : (C)

48. Which of the following is a downside of job sharing?

(A) increased compensation (B) less innovation (C) potential distrust among employees (D) reduced employee appraisals Answer : (C)

49. What is an important drawback of allowing employees to telecommute?

(A) difficulty in developing appropriate performance standards (B) less work?0?life balance (C) increased work conflict (D) increased absenteeism Answer : (A)

50. Which of the following is most likely to result in a successful telecommuting situation?

(A) The telecommuters have to check in frequently throughout the day to let their managers

know exactly what they are working on and how it is going.

(B) The managers who are trained in formalized telecommuting procedures make random

calls to the telecommuters at home to ensure all is going well and work is getting done.

(C) The telecommuters are expected to attend regular on-site meetings and are trained in

technical aspects of telecommuting.

(D) Telecommuting is only allowed when the work at hand does not involve interaction of

any kind.

Answer : (C)

51. Scenario 4.1

Mike Brassington is the CEO of Canada Steel, a firm that produces steel products for a global market. To improve on one of its products that has received some criticisms on its quality, Canada Steel wants to put together a team that will involve different people in the organization, across different departments, so as to utilize their skills in a manner that would be more productive than if they worked separately. Mike has two ideas on how to design these teams. First, he can put together a group of experienced people from different departments (e.g., marketing, engineering, etc.) to solve the problem (Team 1). Second, he can allow interested employees to have online discussions voluntarily (Team 2). He also has to decide on how to measure the success of the team's efforts.

Refer to Scenario 4.1. Which of the following occurs when the interaction and outcome of team members is greater than the sum of their individual parts?

(A) job sharing (B) cooperation (C) synergy

(D) team enrichment Answer : (C)

52. Scenario 4.1

Mike Brassington is the CEO of Canada Steel, a firm that produces steel products for a global market. To improve on one of its products that has received some criticisms on its quality, Canada Steel wants to put together a team that will involve different people in the organization, across different departments, so as to utilize their skills in a manner that would be more productive than if they worked separately. Mike has two ideas on how to design these teams. First, he can put together a group of experienced people from different departments (e.g., marketing, engineering, etc.) to solve the problem (Team 1). Second, he can allow interested employees to have online discussions voluntarily (Team 2). He also has to decide on how to measure the success of the team's efforts.

Refer to Scenario 4.1. What is the term for the first type of team Mike is considering, where he will put together different people from different units (Team 1)?

(A) a self-directed team (B) a process improvement team (C) a virtual team (D) a quality improvement team Answer : (B)

53. Scenario 4.1

Mike Brassington is the CEO of Canada Steel, a firm that produces steel products for a global market. To improve on one of its products that has received some criticisms on its quality, Canada Steel wants to put together a team that will involve different people in the organization, across different departments, so as to utilize their skills in a manner that would be more productive than if they worked separately. Mike has two ideas on how to design these teams. First, he can put together a group of experienced people from different departments (e.g., marketing, engineering, etc.) to solve the problem (Team 1). Second, he can allow interested employees to have online discussions voluntarily (Team 2). He also has to decide on how to measure the success of the team's efforts.

Refer to Scenario 4.1. According to the textbook, what is a potential challenge for Team 1?

(A) different cultures among group members (B) leadership support (C) Web/Internet support

(D) determining compensation for team accomplishments Answer : (D)

54. Scenario 4.1

Mike Brassington is the CEO of Canada Steel, a firm that produces steel products for a global market. To improve on one of its products that has received some criticisms on its quality, Canada Steel wants to put together a team that will involve different people in the organization, across different departments, so as to utilize their skills in a manner that would be more productive than if they worked separately. Mike has two ideas on how to design these teams. First, he can put together a group of experienced people from different departments (e.g., marketing, engineering, etc.) to solve the problem (Team 1). Second, he can allow interested employees to have online discussions voluntarily (Team 2). He also has to decide on how to measure the success of the team's efforts.

Refer to Scenario 4.1. What does research demonstrate as key to ensuring the success of the team?

(A) ensuring a common workplace "language" for team members (B) establishing ground rules to guide the team's work (C) ensuring cultural cohesion among team members (D) establishing a fair pay system Answer : (A)

55. Scenario 4.1

Mike Brassington is the CEO of Canada Steel, a firm that produces steel products for a global market. To improve on one of its products that has received some criticisms on its quality, Canada Steel wants to put together a team that will involve different people in the organization, across different departments, so as to utilize their skills in a manner that would be more productive than if they worked separately. Mike has two ideas on how to design these teams. First, he can put together a group of experienced people from different departments (e.g., marketing, engineering, etc.) to solve the problem (Team 1). Second, he can allow interested employees to have online discussions voluntarily (Team 2). He also has to decide on how to measure the success of the team's efforts.

Refer to Scenario 4.1. Which of the following is NOT a way for Mike to measure the success of the team?

(A) through the level of cooperation and trust of team members (B) through whether the goals of the team are achieved

(C) through the pay increases of the team (D) through the way in which conflicts are resolved Answer : (C)

56. Scenario 4.2

CanBank is a new financial institution with a workforce that values work-life balance. The CEO, Aren Ami, wants to experiment with different work schedules so as to address the needs of the employees. He is considering several options: a four-day, 40-hour workweek; allowing employees to choose start and end times for the workday provided they work a certain number of hours per week; allowing two or more employees to perform a job normally done by one person; and allowing some employees to do work from home that is normally done in the office. The CEO knows that there are pros and cons of each option that he has to weigh.

Refer to Scenario 4.2. What is the term for the option where employees choose start and end times for their workdays provided they work a specified number of hours in the week?

(A) job sharing (B) telecommuting (C) shortened workweek (D) flextime Answer : (D)

57. Scenario 4.2

CanBank is a new financial institution with a workforce that values work-life balance. The CEO, Aren Ami, wants to experiment with different work schedules so as to address the needs of the employees. He is considering several options: a four-day, 40-hour workweek; allowing employees to choose start and end times for the workday provided they work a certain number of hours per week; allowing two or more employees to perform a job normally done by one person; and allowing some employees to do work from home that is normally done in the office. The CEO knows that there are pros and cons of each option that he has to weigh.

Refer to Scenario 4.2. What is the term for the option where employees work four-day, 40hour workweeks?

(A) flextime (B) telecommuting

(C) job sharing (D) compressed workweek Answer : (D)

58. Scenario 4.2

CanBank is a new financial institution with a workforce that values work-life balance. The CEO, Aren Ami, wants to experiment with different work schedules so as to address the needs of the employees. He is considering several options: a four-day, 40-hour workweek; allowing employees to choose start and end times for the workday provided they work a certain number of hours per week; allowing two or more employees to perform a job normally done by one person; and allowing some employees to do work from home that is normally done in the office. The CEO knows that there are pros and cons of each option that he has to weigh.

Refer to Scenario 4.2. Which of the following is NOT a reason cited for flextime?

(A) improving organizational culture (B) meeting the challenges of age diversity (C) improving customer service by extending operating hours (D) improving quality of employees' work Answer : (A)

TRUEFALSE 59. A job consists of different duties and responsibilities performed by one person.

(A) True (B) False Answer : (B)

60. A statement of the different duties, tasks, and responsibilities of a job is known as a job

description.

(A) True (B) False Answer : (A)

61. An example of a job-related specification might be to require three to five years'

experience for a job as senior compensation analyst.

(A) True (B) False Answer : (A)

62. Discrepancies between knowledge, skills, and abilities (KSAs) and job requirements

provide clues to training needs.

(A) True (B) False Answer : (A)

63. Job analysis is the process of obtaining information about jobs by determining what the

duties, tasks, or activities of those jobs are.

(A) True (B) False Answer : (A)

64. Ultimately, the purpose of job analysis is to value a job and establish its pay rate.

(A) True (B) False Answer : (B)

65. Job analysis is now considered outdated because it can't keep up with the current state

of change in today's fast-paced work world.

(A) True (B) False Answer : (B)

66. Job analysis is an important step toward ensuring an organization's HR practices are

valid and job-related.

(A) True

(B) False Answer : (A)

67. To promote uniformity across organizations, the National Occupational Classification

should be used as the sole source for classifying jobs.

(A) True (B) False Answer : (B)

68. The critical incident method focuses on employee behaviours critical to job success.

(A) True (B) False Answer : (A)

69. The critical incidents method of job analysis is based on interviewing the job

incumbent/employee.

(A) True (B) False Answer : (A)

70. Common methods of analyzing jobs include interviews, questionnaires, observation, and

diaries.

(A) True (B) False Answer : (A)

71. There are many methods of job analysis and many different ways of compiling the data,

but all of the methods rely on some form of employee/job incumbent interview.

(A) True (B) False Answer : (B)

72. Employee interviewing is the most accurate method of job analysis because the

employee is least likely to exaggerate essential job functions.

(A) True (B) False Answer : (B)

73. The competency-based approach to job analysis focuses on standard job duties, tasks,

and the like.

(A) True (B) False Answer : (B)

74. Human resource information systems have limited potential to impact the job analysis

process.

(A) True (B) False Answer : (B)

75. The job title is of psychological importance as well as descriptive.

(A) True (B) False Answer : (A)

76. The standard format for job descriptions is contained in the Dictionary of Occupational

Titles.

(A) True (B) False Answer : (B)

77. Relying on generic job descriptions tends to reduce role ambiguity.

(A) True

(B) False Answer : (B)

78. Most job descriptions include a job title, a job identification section, and a job duties

section.

(A) True (B) False Answer : (A)

79. Job specifications usually cover two areas: (1) the skill required to perform the job and

(2) the level of autonomy inherent in the position.

(A) True (B) False Answer : (B)

80. A problem with job descriptions is that they tend to broaden the scope of activities

performed by a jobholder.

(A) True (B) False Answer : (B)

81. When writing a job description, it is essential to use statements that are terse, direct,

and simply worded.

(A) True (B) False Answer : (A)

82. Job specifications describe the duties, tasks, and responsibilities performed on the job

and therefore play a key role in performance appraisal.

(A) True (B) False Answer : (B)

83. Job design is concerned with changing, modifying, and enriching jobs in order to capture

the talents of employees while improving performance.

(A) True (B) False Answer : (A)

84. Job design should facilitate the achievement of organizational goals while recognizing

the capabilities and needs of those who are to perform it.

(A) True (B) False Answer : (A)

85. Job design considers organizational objectives, industrial engineering considerations,

ergonomic concerns, and job descriptions.

(A) True (B) False Answer : (B)

86. Job design is concerned with changing, modifying, and enriching jobs in order to capture

the talents of employees while improving performance.

(A) True (B) False Answer : (A)

87. Job enrichment is a way of increasing employee empowerment.

(A) True (B) False Answer : (A)

88. Job enrichment can improve employee performance in cases of dissatisfaction with pay

and benefits.

(A) True

(B) False Answer : (B)

89. Job enrichment incorporates the behavioural needs of employees into their jobs.

(A) True (B) False Answer : (A)

90. The real advantage of job enrichment is that it applies to all employees.

(A) True (B) False Answer : (B)

91. The job characteristics model suggests that the motivated, satisfied, and productive

employee is one who (1) experiences meaningful work; (2) experiences responsibility for work outcomes; and (3) has knowledge of the results of his or her work activities.

(A) True (B) False Answer : (A)

92. In the job characteristics model, skill variety refers to the amount of freedom held by the

employee to schedule work and perform activities.

(A) True (B) False Answer : (B)

93. As a manager, if you designed a job so that an employee could perform the job from

beginning to end according to the job characteristics model, you would be creating task identity.

(A) True (B) False Answer : (A)

94. Adding more meaningful tasks to an employee's job in an effort to make it more

rewarding is an example of job enrichment.

(A) True (B) False Answer : (A)

95. Empowerment encourages employees to become innovators and managers of their own

work.

(A) True (B) False Answer : (A)

96. Employee empowerment grows in an organizational culture that promotes satisfaction,

support, and recognition.

(A) True (B) False Answer : (A)

97. Industrial engineering is a technique of job design that is concerned with efficiency and

behavioural considerations of a job.

(A) True (B) False Answer : (B)

98. All group-based work techniques have two things in common: enhancing communication

and increasing synergy.

(A) True (B) False Answer : (B)

99. Employee involvement groups (EIs) are groups of highly trained individuals using

consensus decision making to perform independent job tasks and solve problems.

(A) True (B) False Answer : (B)

100. Inherent in the concept of work teams is that employees, not managers, are in the best

position to contribute to work performance.

(A) True (B) False Answer : (A)

101. At Eastman Kodak Company, teams are responsible for manufacturing entire product

lines. This type of team is referred to as a "task force."

(A) True (B) False Answer : (B)

102. Adjustments in work schedules are considered to be a part of job analysis and job

design.

(A) True (B) False Answer : (B)

103. Managers cite one of the reasons for implementing compressed workweek schedules as

that it can improve employee job satisfaction and morale.

(A) True (B) False Answer : (A)

104. Employees participate in flextime when they do entirely different jobs on a rotating

schedule.

(A) True (B) False

Answer : (B)

105. Job sharing is effective for employees who desire to phase in to retirement.

(A) True (B) False Answer : (A)

106. Telecommuting is the use of personal computers, networks, and other communications

technology to do work in the home that is traditionally done in the workplace.

(A) True (B) False Answer : (A)

ESSAY 107. What is the role of job analysis in HRM, and how does it relate to other HRM functions?

Graders Info :

Job analysis involves a systematic process of obtaining information about jobs to determine the duties, tasks, and activities involved in the job. This information is useful in a variety of HRM functions including recruitment, selection, training, development, performance appraisal, compensation, and labour relations.

Job analysis permits HR managers to identify job specifications or qualifications required by the job. This information enables recruiters to target sources that are most likely to generate qualified candidates. It also allows HR managers to design appropriate selection programs.

Information provided by job analysis may identify discrepancies between the knowledge, skills, and abilities of the jobholder and the requirements contained in the specifications for the job. This can provide clues about training and development needs.

Job analysis reveals the requirements of a job and can serve as a basis for developing criteria to be used in performance evaluation and determining the relative worth of a job.

Job descriptions generated by job analysis also allow the organization to identify those jobs subject to union jurisdiction.

108. What factors should be considered in designing a job?

Graders Info :

Job design is concerned with structuring jobs to improve organizational efficiency and employee job satisfaction. Considerations should include (1) the organizational objectives the job was created to fulfill; (2) industrial engineering considerations, including ways to make the job technologically efficient; (3) ergonomic concerns, including workers' physical and mental capabilities; and (4) employee contributions reflected in the participation of employees in making job improvements or enhanced operational decisions.

109. Discuss the job characteristics that motivate employees.

Graders Info :

The job characteristics model proposes that three psychological states-(1) meaningfulness of work, (2) responsibility for work outcomes, and (3) knowledge of results-result in improved performance and motivation of workers. The five characteristics that produce these states are: • Skill Variety: The degree to which a job entails a variety of activities and the use of different skills or talents by the jobholder.

• Task Identity: The degree to which the job requires the completion of a whole, identifiable piece of work.

• Task Significance: The degree to which the job has an impact on the lives or work of other people.

• Autonomy: The degree to which the job provides freedom, independence, and discretion to the jobholder in scheduling and completing the work.

• Feedback: the degree to which the jobholder is given clear information about the effectiveness of his or her performance.

110. What are the advantages and disadvantages of flextime or flexible working hours?

Graders Info :

Advantages of flextime or flexible working hours include: • Employers reduce some of the traditional causes of tardiness and absenteeism.

• Employees gain greater job satisfaction through the ability to adjust their work to accommodate their lifestyle.

• Employees can schedule their working hours for the time of day they are most productive.

• Traffic congestion may be reduced by variations in arrival and departure times.

• Flexible schedules can be helpful in recruiting and retaining personnel.

• They are invaluable to organizations that wish to improve service to customers or clients

by extending operating hours.

Disadvantages of flextime or flexible working hours include: • Flexible schedules are not suited to some jobs, such as those where specific workstations must be staffed at all times.

• They can create problems for managers in communicating with and instructing employees.

• They can force managers to extend their workweek to work directly with employees.

Chapter 8 Performance Management MULTICHOICE 1. What is the key purpose of performance evaluations when they are used for pay-for-performance decisions?

(A) signalling purpose (B) symbolic purpose (C) administrative purpose (D) developmental purpose Answer : (C)

2. How often should performance feedback be delivered?

(A) It should be done at least annually.

(B) It depends on the organizational culture, industry, and supervisor's style.

(C) It should be done at regular intervals-the more frequent the better.

(D) It should be an ongoing, regular part of supervisor-subordinate interactions.

Answer : (D)

3. Which of the following is NOT a developmental purpose of performance evaluation?

(A) meeting legal requirements (B) providing performance feedback (C) improving communication (D) identifying an individual's strengths and weaknesses Answer : (A)

4. Which of the following are the two primary purposes of performance evaluations?

(A) informative and developmental purposes (B) administrative and developmental purposes (C) administrative and informative purposes (D) managerial and administrative purposes

Answer : (B)

5. Why is performance evaluation important?

(A) because it is key to the validation of selection procedures, which are the foundation of all HR practices (B) because all organizations need to weed out lower-performing individuals at a rate of about 10 percent of employees per annum (C) because employees need to know that they are being evaluated in order to perform at an appropriate level (D) because the success of the entire HR program depends on knowing how the performance of employees compares with the goals established for them Answer : (D)

6. Which of the following is a reason why performance evaluation programs fail?

(A) Managers use them for administrative purposes.

(B) Performance standards may not be clear.

(C) The program is usually based on a job analysis rather than a competency analysis.

(D) There is too much employee input into the development of the evaluation program.

Answer : (B)

7. Magee was rated higher than she deserved by her supervisor; her supervisor wanted to look good in the eyes of her own superiors. Which of the following is illustrated in this example?

(A) criterion deficiency (B) criterion exaggeration (C) criterion contamination (D) organizational politics Answer : (D)

8. What is the foundation for performance standards in the development of effective performance management systems?

(A) the knowledge and experience of HR managers (B) feedback from customers

(C) job-related requirements derived from a job analysis (D) job evaluations Answer : (C)

9. What are four basic elements that must be considered when establishing performance standards?

(A) criterion deficiency, criterion contamination, strategic relevance, and reliability (B) feedback, accuracy, reliability, and validity (C) supervisory ratings, reliability, validity, and peer evaluations (D) performance ratings, peer evaluations, reliability and validity Answer : (A)

10. What does the strategic relevance of performance evaluations refer to?

(A) the extent to which individuals tend to maintain a certain level of performance over time (B) the extent to which standards capture the entire range of an employee's responsibilities (C) the extent to which standards relate to the overall objectives of the organization (D) the extent to which internal and external strategic factors can influence performance Answer : (C)

11. Suppose the performance evaluations that salespeople receive are based solely on sales revenue to the exclusion of other important factors. Which of the following would these performance evaluations suffer from?

(A) criterion contamination (B) lack of reliability (C) criterion deficiency (D) lack of criterion relevance Answer : (C)

12. Jay is a polite, helpful, conscientious employee who often helps his fellow auto sales representatives make sales, and is popular with customers due to his customer service orientation.

Based on his performance evaluation, which is focused on sales, Jay is being fired because he has not sold enough cars this month. What is the problem at the root of his poor performance evaluation?

(A) criterion contamination (B) lack of reliability (C) criterion deficiency (D) lack of relevance Answer : (C)

13. If a performance standard is found to be stable or consistent over time, it is said to be which of the following?

(A) reliable (B) relevant (C) steady (D) valid Answer : (A)

14. Farah, a waitress at OMG Restaurant, was appraised only on the quality of the food she delivered to the customers. Which type of problem does this evaluation illustrate?

(A) criterion deficiency (B) criterion reliability (C) reliability (D) criterion contamination Answer : (D)

15. Suppose the performance evaluations that delivery drivers receive are partially influenced by the fact that some drivers operate in areas where there are major traffic problems while others operate in areas with few traffic problems. Which of the following would these performance evaluations suffer from?

(A) criterion contamination (B) lack of relevance (C) lack of reliability (D) rater bias Answer : (A)

16. ABC Corporation uses several raters to assess their employees' performance, after which the company does correlation analyses on the various ratings. What is ABC Corporation trying to figure out?

(A) the level of contamination of the ratings (B) whether the ratings are deficient (C) the rewards that will be associated with good performance (D) the reliability of the ratings Answer : (D)

17. Which of the following processes would help to improve the consistency and reliability of employee ratings?

(A) job evaluations (B) external validation (C) strategic rewards (D) calibration Answer : (D)

18. In developing a new performance evaluation system, Organization C made an evaluation plan, decided who would be doing the appraising and how it would be done, and even included evaluation training. Which one of the following is an important step that Organization C missed?

(A) clearly communicating in advance the company's plans for employees who do not meet standards.

(B) gaining support from top management, which should occur near the beginning of the process (C) informing employees how the process would go to alleviate anxiety (D) examining the performance standards through job analysis Answer : (D)

19. Which of the following has been shown to be true in court?

(A) Vague performance standards can be acceptable when clearly written.

(B) Organizations should have carefully defined and measurable performance standards.

(C) While performance standards should be somewhat specific, there should be room for individual interpretation.

(D) Descriptions of traits such as attitude and cooperation are acceptable performance standards.

Answer : (B)

20. What is the most important thing an organization can do to ensure that a performance evaluation process achieves standards that are legally defensible if challenged in courts?

(A) Use calibration and train the managers on how to deliver feedback.

(B) Make sure the tool is reliable.

(C) Base the standards on a sound job analysis and make sure all involved know what the standards are.

(D) Make sure managers are not biased in their delivery of evaluation feedback.

Answer : (C)

21. Why are self-evaluations better for developmental versus administrative purposes?

(A) because the evaluations are inflated because employees tend to rate themselves highly (B) because the evaluations are accurate (C) because employees prefer using them for developmental purposes (D) because legal challenges would be difficult to successfully defend Answer : (A)

22. Managers tend to be more open to the use of subordinate evaluations when they are used for which of the following?

(A) promotional purposes (B) regulatory purposes (C) administrative purposes (D) developmental purposes Answer : (D)

23. Which of the following are peer evaluations best suited for?

(A) administrative purposes (B) developmental purposes (C) strategic purposes

(D) budgetary purposes Answer : (B)

24. What advantage do peer evaluations have over other types of evaluations?

(A) Peers may have a more intimate view of the performance of fellow employees.

(B) Peers don't have to worry about meeting standards for distributions.

(C) Peers know the job better than most managers do.

(D) Peers do not have a conflict of interest over honestly appraising a fellow employee.

Answer : (A)

25. Tracy was evaluated by multiple raters in her last job, including her supervisor, customers, peers, and clients. What performance evaluation system was most likely used in this instance?

(A) whole-team evaluations (B) peer evaluations (C) 360-degree feedback (D) multiplicative feedback Answer : (C)

26. Which of the following is an important weakness of 360-degree feedback?

(A) In cases where feedback is not positive, it has been shown to increase voluntary turnover.

(B) It is hard to know what to conclude if the evaluation results in conflicting opinions.

(C) The quality of information is not as good as other types of evaluation systems.

(D) The training can be demoralizing because it is so intense.

Answer : (B)

27. Some organizations ask managers to place a percentage of their employees in the bottom performance category on every performance evaluation exercise, which in some cases may mean they are fired. Which type of performance evaluation method does this exemplify?

(A) forced-distribution system (B) checklist method (C) percent method

(D) forced-choice method Answer : (A)

28. John, an average performer, was inaccurately assessed as excellent because he was compared to Alex, a very poor performer. What type of evaluation error is evident in this example?

(A) recency error (B) halo error (C) contrast error (D) similar-to-me error Answer : (C)

29. Performance evaluation methods can be broadly classified in which of the following categories of approaches?

(A) trait, behavioural, and judgmental approaches (B) behavioural, judgmental, and results approaches (C) behavioural, judgmental, and results approaches (D) trait, behavioural, and results approaches Answer : (D)

30. Which of the following performance evaluation methods are considered as the most subjective?

(A) traits methods (B) behavioural methods (C) behaviourally anchored rating methods (D) results methods Answer : (A)

31. Every time Sandy makes a mistake at work, her manager writes it down in detail in her employee record. Sandy thinks this is a form of harassment. More likely, what is the manager trying to do?

(A) collect information in order to build a BARS (B) substantiate her termination in case Sandy files a complaint

(C) evaluate her performance (D) collect critical incidents Answer : (D)

32. Which of the following methods require an appraiser to rate the degree to which the employee possesses a trait or characteristic?

(A) behaviourally anchored rating scale (B) graphic rating scale (C) forced-choice method (D) critical incident method Answer : (B)

33. The primary objective for performance evaluations at ABC Corporation is to give employees developmental feedback. Which of the following evaluation methods should the HR manager use?

(A) trait methods (B) behavioural methods (C) results methods (D) attitudinal methods Answer : (B)

34. Which of the following uses critical incidents as examples at different points along the scale?

(A) the global rating (B) the mixed-standard scale (C) dimensional rating (D) the behaviourally anchored rating scale Answer : (D)

35. In order to keep track of employees' performance, which of the following performance evaluation methods would a supervisor use a log or diary for?

(A) critical incidents method (B) forced-choice method

(C) essay method (D) graphic rating scale Answer : (A)

36. Which of the following is a major advantage of a behaviourally anchored rating scale?

(A) It has high acceptance rates by employees, management, and unions.

(B) The rating scale can be used across many jobs.

(C) It requires a great deal of employee participation, which leads to acceptance.

(D) It allows the appraiser to observe rather than judge.

Answer : (C)

37. What is a key disadvantage of behaviourally anchored rating scales?

(A) They do not involve employee participation.

(B) They have low content validity.

(C) They can only be used in the public sector.

(D) They require considerable time and effort to develop.

Answer : (D)

38. Max Weber works for ABC Corporation a sales agent. The company uses his actual sales numbers to rate his performance. What performance evaluation method is ABC Corporation using?

(A) trait method (B) behavioural method (C) outcome method (D) results method Answer : (D)

39. Which of the following performance evaluation methods involves a mutual agreement of goals and metrics between supervisor and subordinate?

(A) all behavioural methods (B) productivity measures (C) forced distribution

(D) management by objectives Answer : (D)

40. The HR managers at Organization M are very keen to tie all their HR practices in with organizational strategy, and performance evaluation is no exception. They would like to make clear the link between individual performance and organizational performance. Which of the following is the best type of evaluation method for the HR managers at Organization M? (A) trait-based methods (B) results-based methods (C) behaviour-based methods (D) performance-based methods Answer : (B)

41. Which of the following appraisal systems is based on the concept that learning helps organizations improve their internal processes and allows individuals to see how their performance ties in with the firm?

(A) balanced scorecard approach (B) 360-degree evaluation (C) customer-oriented approach (D) management by objectives Answer : (A)

42. The evaluation interview should be divided into two sessions. What should those two sessions contain?

(A) positive comments and negative comments (B) establishing performance standards and reviewing performance (C) performance review and compensation discussion (D) performance review and employee growth plans Answer : (D)

43. Which of the following is an essential component of an evaluation interview?

(A) It should take place in one session in order to give the employee a complete view of his or her performance.

(B) The supervisor must discuss changes to the employee's compensation as a result of his or her performance.

(C) It is a time for the supervisor to give feedback on past performance and should not be used for developmental purposes.

(D) It should be held in two segments because the rater must perform the role of both evaluator and counsellor.

Answer : (D)

44. In delivering a performance evaluation interview, Manuel is attempting to convince his direct report that she needs to be more communicative with her peers about her work. The other aspects of her performance are excellent, so he is willing to provide incentives for her if she can improve in this aspect of her performance. What type of performance evaluation interview is Manuel delivering?

(A) tell-and-listen (B) tell-and-sell (C) tell-and-train (D) problem-solving Answer : (B)

45. In delivering a performance evaluation interview, Jacqui is taking a listening perspective. She wants to stimulate growth and development by discussing the problems, needs, satisfactions, and dissatisfactions the employee has encountered on the job. What type of performance evaluation interview is Jacqui delivering?

(A) tell-and-listen (B) tell-and-sell (C) tell-and-train (D) problem-solving Answer : (D)

46. Of the following interview methods, which is the most proactive on the part of the interviewer?

(A) tell-and-listen (B) tell-and-sell (C) problem solving (D) essay

Answer : (C)

47. Which of the following is the most accurate description of the possible facets of an evaluation interview?

(A) It should minimize criticism, change the person not the behaviour, and encourage feedback.

(B) It should change the person not the behaviour, minimize criticism, express appreciation, and invite participation.

(C) It should ask for a self-assessment, invite participation, express appreciation, and minimize criticism.

(D) It should ask for a self-assessment, change the person not the behaviour, and encourage feedback.

Answer : (C)

48. Which of the following is a major issue surrounding "stretch goals"?

(A) They demoralize the employee.

(B) They increase voluntary turnover.

(C) They could be considered unethical for several reasons.

(D) They cause disruptive behaviours to the point that they are more costly to the organization than they are financially advantageous.

Answer : (C)

49. Which of the following is an accurate listing of the factors that affect performance?

(A) motivation, organizational culture, and leadership factors (B) motivation, environment, and ability factors (C) organizational culture, motivation, and ability factors (D) ability, job design, and motivation factors Answer : (B)

50. Which of the following is NOT an ability factor that may be a source of ineffective performance?

(A) interpersonal skill (B) career ambition (C) technical skill

(D) physical limitation Answer : (B)

51. Which of the following is NOT an environmental factor that may be a source of ineffective performance?

(A) rules and policies (B) economic conditions (C) boredom and lack of ability (D) laws and regulations Answer : (C)

52. Managers often first assume poor performance of subordinates is due to which of the following?

(A) lack of ability (B) pay dissatisfaction (C) poor motivation (D) poor work?0?life balance Answer : (A)

53. Scenario 8.1 Med Supplies Ltd. is a manufacturer and distributor of over-the-counter medical devices such as blood pressure monitors. Med Supplies relies heavily on its sales team to push these products to pharmacies and medical clinics across Canada. Sales reps are paid a yearly bonus based on the team's performance, coupled with annual performance evaluations done by managers. Over the last three years, they have been paid bonuses based on the previous year's performance if it is similar in dollar figure despite losing shelf space in stores or declining individual performances. The managers claim that they do not have the time to do the evaluations, but their superiors think these evaluations are key and need to be the link between employees' goals and the organization's objectives.

Refer to Scenario 8.1. The VP Sales suggests the use of peer evaluations to ensure that each member of the team pulls his or her weight. Which of the following is NOT a reason why peer evaluations are not frequently used?

(A) Those receiving low ratings might retaliate against their peers.

(B) Peer ratings are simply a popularity contest.

(C) Managers want to give up control over the evaluation process.

(D) Peers rely on stereotypes in ratings.

Answer : (C)

54. Scenario 8.1 Med Supplies Ltd. is a manufacturer and distributor of over-the-counter medical devices such as blood pressure monitors. Med Supplies relies heavily on its sales team to push these products to pharmacies and medical clinics across Canada. Sales reps are paid a yearly bonus based on the team's performance, coupled with annual performance evaluations done by managers. Over the last three years, they have been paid bonuses based on the previous year's performance if it is similar in dollar figure despite losing shelf space in stores or declining individual performances. The managers claim that they do not have the time to do the evaluations, but their superiors think these evaluations are key and need to be the link between employees' goals and the organization's objectives.

Refer to Scenario 8.1. Med Supplies should consider using team evaluations to evaluate the team as a whole. Which of the following is true about team evaluations?

(A) They can help break down barriers and encourage joint effort.

(B) They make it easier to separate individual contributions.

(C) They readily identify leadership and interpersonal skills.

(D) They provide 360-degree feedback.

Answer : (A)

55. Scenario 8.2 Jane is manager to 10 direct reports. She is currently concerned that she is perceived as a softy and so she has decided not to give out very many high ratings on this year's performance evaluation exercise. However, she doesn't want anyone to be fired either, so she has also decided not to give out any very low ratings.

Refer to Scenario 8.2. Which of the following will Jane's ratings suffer from?

(A) similar-to-self bias (B) leniency error (C) forced distribution (D) central tendency error Answer : (D)

56. Scenario 8.2

Jane is manager to 10 direct reports. She is currently concerned that she is perceived as a softy and so she has decided not to give out very many high ratings on this year's performance evaluation exercise. However, she doesn't want anyone to be fired either, so she has also decided not to give out any very low ratings.

Refer to Scenario 8.2. How can Jane correct for this error?

(A) by rating the reports highly if they displayed characteristics similar to her own (B) by rating everyone leniently (C) by collecting critical incidents (D) by rating everyone highly Answer : (C)

57. Scenario 8.3 Canadian Fasteners Inc. has recently implemented a human resource (HR) system that assists with the recruitment and selection process, as well as administering a pension and benefits program.

Included with these programs are training and development programs as well as yearly performance evaluations for both managers and agents who are jointly responsible for bringing in new accounts and maintaining existing ones. While these performance evaluations are done each year, mangers and agents do not receive feedback unless they are unhappy with their salary increases or bonuses.

However, HR is now pushing the need for ongoing feedback as it is a key component of its compensation process.

Refer to Scenario 8.3. Canadian Fasteners wants to embark on feedback sessions. Which of the following is NOT one of the key points to address?

(A) direct the feedback toward behaviour the employee can control (B) give specific examples of desirable and undesirable behaviours (C) provide timely feedback (D) focus feedback on the person, not behaviour Answer : (D)

58. Scenario 8.3 Canadian Fasteners Inc. has recently implemented a human resource (HR) system that assists with the recruitment and selection process, as well as administering a pension and benefits program.

Included with these programs are training and development programs as well as yearly performance evaluations for both managers and agents who are jointly responsible for bringing in new accounts and maintaining existing ones. While these performance evaluations are done each year, mangers and agents do not receive feedback unless they are unhappy with their salary increases or bonuses.

However, HR is now pushing the need for ongoing feedback as it is a key component of its compensation process.

Refer to Scenario 8.3. According to research, which of the following is most accurate about providing feedback?

(A) Employees who receive no feedback from their supervisors exhibit the least amount of engagement.

(B) Feedback is least useful when it is immediate.

(C) You should only provide positive feedback to employees.

(D) Feedback should not be specific to a particular situation.

Answer : (A)

59. Scenario 8.3 Canadian Fasteners Inc. has recently implemented a human resource (HR) system that assists with the recruitment and selection process, as well as administering a pension and benefits program.

Included with these programs are training and development programs as well as yearly performance evaluations for both managers and agents who are jointly responsible for bringing in new accounts and maintaining existing ones. While these performance evaluations are done each year, mangers and agents do not receive feedback unless they are unhappy with their salary increases or bonuses.

However, HR is now pushing the need for ongoing feedback as it is a key component of its compensation process.

Refer to Scenario 8.3. If Canadian Fasteners were to provide ongoing performance feedback to its employees, this would be a key step in which of the following?

(A) strategic and managerial process (B) performance management process (C) compensation rating process (D) promotion process Answer : (B)

TRUEFALSE 60. Feedback is most useful when it is immediate and general in nature.

(A) True (B) False Answer : (B)

61. Depending on the industry, managers should provide performance feedback on an annual basis.

(A) True (B) False Answer : (B)

62. In general, performance evaluation can be classified as either administrative or developmental.

(A) True (B) False Answer : (A)

63. Developmental purposes for performance evaluation include validating selection criteria and meeting legal requirements.

(A) True (B) False Answer : (B)

64. Administrative purposes for performance evaluations include documenting personnel decisions and identifying individual training needs.

(A) True (B) False Answer : (B)

65. Most performance evaluations focus on long-term improvement, rather than short-term achievements.

(A) True (B) False Answer : (B)

66. A performance evaluation program can be used for many purposes, including salary recommendations and the retention and termination of employees.

(A) True (B) False Answer : (A)

67. If an evaluation program is used to provide a written evaluation for salary action and at the same time used as a means of motivating employees to improve upon their performance, the administrative and developmental purposes may be in conflict.

(A) True (B) False Answer : (A)

68. Developmental approaches to performance evaluation recognize that a manager's purpose is to improve job behaviours, not just evaluate past performance.

(A) True (B) False Answer : (A)

69. Organizational politics can introduce bias into even the most fairly administered performance evaluations.

(A) True (B) False Answer : (A)

70. Ideally, performance evaluations should be linked to the strategic objectives of the organization.

(A) True (B) False Answer : (A)

71. Criterion deficiency occurs when performance standards focus on a single criterion to the exclusion of other important but less quantifiable performance dimensions.

(A) True (B) False Answer : (A)

72. Criterion contamination occurs when correlations between two raters of an employee are inconsistent.

(A) True

(B) False Answer : (B)

73. Criterion contamination occurs when factors outside an employee's control influence his or her performance.

(A) True (B) False Answer : (A)

74. Reliability refers to measures that are consistent across raters and over time.

(A) True (B) False Answer : (A)

75. In order to increase employee motivation levels, written performance standards should be objective but not defined in quantifiable and measurable terms.

(A) True (B) False Answer : (B)

76. Ineffective handling of performance evaluations may result in court cases or other legal action.

(A) True (B) False Answer : (A)

77. In most instances, one person can easily observe and evaluate an employee's performance.

(A) True (B) False Answer : (B)

78. Surprisingly, self-evaluations are typically equal to or lower than the traditional approach to evaluations where a manager fills them out.

(A) True (B) False Answer : (B)

79. Self-evaluations should be used primarily for developmental purposes.

(A) True (B) False Answer : (A)

80. Peer evaluations should be used primarily for developmental purposes.

(A) True (B) False Answer : (A)

81. Peer evaluations are useful for ratings on dimensions such as leadership and interpersonal skills.

(A) True (B) False Answer : (A)

82. One disadvantage of peer evaluations is that they furnish less valid information than evaluations by superiors.

(A) True (B) False Answer : (B)

83. A team evaluation approach is well suited for a company advocating a total-quality management philosophy.

(A) True (B) False Answer : (A)

84. Team evaluations are a collection of the individual evaluations of a work unit.

(A) True (B) False Answer : (B)

85. Internal customers are the most important source of valuable performance information for both developmental and administrative purposes.

(A) True (B) False Answer : (A)

86. Most organizations that implement 360-degree evaluation start with an exclusive focus on development.

(A) True (B) False Answer : (A)

87. A significant weakness of 360-degree evaluation is the complexity associated with combining all the responses.

(A) True (B) False Answer : (A)

88. One weakness of many performance evaluation programs is that supervisors are not adequately trained; consequently, they provide little meaningful feedback to subordinates.

(A) True (B) False Answer : (A)

89. Using the evaluation system for compensation decisions rather than developmental purposes may affect how the rater evaluates the employee.

(A) True

(B) False Answer : (A)

90. An error of central tendency is a performance-rating error in which all employees are more or less rated as average.

(A) True (B) False Answer : (A)

91. Requiring raters to use a forced distribution reduces the chance of leniency or strictness errors.

(A) True (B) False Answer : (A)

92. Contrast errors are most likely when raters are required to rank employees in order from the best to the poorest.

(A) True (B) False Answer : (A)

93. The similar-to-me error occurs when appraisers inflate the evaluations of people with whom they have something in common.

(A) True (B) False Answer : (A)

94. The similar-to-me error, like contrast, results in less-than-accurate performance ratings, but would not be considered discriminatory.

(A) True (B) False Answer : (B)

95. Feedback training for raters should include communicating effectively, diagnosing causes of performance problems, and setting goals.

(A) True (B) False Answer : (A)

96. Results-oriented approaches are the most widely used, despite their subjectivity.

(A) True (B) False Answer : (B)

97. Trait evaluation approaches continue to be the most popular systems despite their inherent subjectivity.

(A) True (B) False Answer : (A)

98. Graphic rating scales include sets of statements between which the rater must choose, such as "works hard" vs. "works quickly."

(A) True (B) False Answer : (B)

99. A potential drawback of a trait-oriented performance evaluation is that it may be biased and subjective.

(A) True (B) False Answer : (A)

100. One of the benefits of the forced-choice method is the relatively small cost of establishing and maintaining its validity.

(A) True

(B) False Answer : (B)

101. A major drawback of the essay method is that composing an essay that attempts to cover all of an employee's essential characteristics is very time-consuming.

(A) True (B) False Answer : (A)

102. Behavioural methods are often useful for providing employees with developmental feedback.

(A) True (B) False Answer : (A)

103. One of the disadvantages of the critical incident method is that it tends to lead to recency error.

(A) True (B) False Answer : (B)

104. The critical incident method facilitates employee feedback and development.

(A) True (B) False Answer : (A)

105. The main advantage of a BARS is that it requires minimal time and effort to develop.

(A) True (B) False Answer : (B)

106. Results evaluations give employees more responsibility for outcomes and discretion over how to accomplish them.

(A) True (B) False Answer : (A)

107. One of the primary strengths of results evaluations is that they are not likely to suffer from contamination by external factors that employees cannot influence.

(A) True (B) False Answer : (B)

108. Measurable and quantifiable performance objectives are requirements for a successful MBO program.

(A) True (B) False Answer : (A)

109. One of the primary strengths of results evaluations is that they encourage employees to focus on long-term performance indicators.

(A) True (B) False Answer : (B)

110. "Management-by-objectives" is one of the best performance evaluation approaches to use if a company's production system is surrounded by uncertainty and variability.

(A) True (B) False Answer : (B)

111. The balanced scorecard approach integrates four categories: financial, customer, processes, and outcomes.

(A) True (B) False

Answer : (B)

112. The balanced scorecard approach translates broad goals into increasingly specific goals, so that individuals can see how their performance relates to the overall performance of the firm.

(A) True (B) False Answer : (A)

113. The best evaluation method to use depends upon the purpose of the evaluation.

(A) True (B) False Answer : (A)

114. Dividing the evaluation interview into two sessions, one for the performance review and the other for the employee's growth plans, is a good strategy to improve communication between the parties.

(A) True (B) False Answer : (A)

115. Three types of evaluation interviews are tell-and-sell, tell-and-listen, and problem-solving.

(A) True (B) False Answer : (A)

116. Because the evaluation interview is for developmental purposes, the interviewer rather than the employee should spend the majority of the time sharing information.

(A) True (B) False Answer : (B)

117. Self-assessment is useful to ensure the employee knows against what criteria he or she is evaluated, thus eliminating surprises.

(A) True (B) False Answer : (A)

118. Performance is a function of ability, motivation, and environment.

(A) True (B) False Answer : (A)

ESSAY 119. Identify and discuss the two general purposes of performance evaluation.

Graders Info : Performance evaluation programs serve many purposes, which in general terms fall into two categories: administrative and developmental. Administrative purposes relate to who will be promoted, transferred, or laid off, and compensation decisions. Developmental purposes relate to improving and enhancing an individual's capabilities (e.g., identifying a person's strengths and weaknesses, eliminating external performance obstacles, and establishing training needs). These two purposes of performance evaluation reflect HRM's larger role, which is to integrate the individual with the organization.

120. Why do employee evaluation programs sometimes fail?

Graders Info : In many organizations, performance evaluations are seen as a necessary evil. Managers frequently avoid conducting evaluations because they dislike playing the role of judge. Further, if managers are not adequately trained, subjectivity and politics can distort the reviews. This situation tends to be self-defeating in that such managers frequently do not develop good feedback skills and are often not prepared to conduct an evaluation. As a consequence, the evaluation is done once a year and then forgotten about.

121. What are the four basic considerations for establishing performance standards?

Graders Info : Before any evaluation is conducted, the standards by which performance is to be evaluated should

be clearly defined and communicated to the employee. These standards should be based on jobrelated requirements derived from job analysis and reflected in the job descriptions and job specifications. In establishing performance standards, there are four basic considerations.

First, performance standards should have strategic relevance. Strategic relevance refers to the extent to which performance standards relate to the strategic objectives of the organization. A second consideration in establishing performance standards is the extent to which the standards capture the entire range of an employee's responsibilities. When performance standards focus on a single criterion to the exclusion of other important performance dimensions, then the evaluation system is said to suffer from criterion deficiency. Third, performance standards can also be contaminated. When performance standards include factors outside an employee's control that can influence his or her performance, then the evaluation system is said to suffer from criterion contamination. Fourth, performance standards should be reliable. Reliability refers to the stability or consistency of a performance standard, or the extent to which individuals tend to maintain a certain level of performance over time.

122. Why are evaluation interviews important? What are some guidelines for effectiveness?

Graders Info : The degree to which the performance evaluation program benefits the organization and its members is directly related to the quality of the evaluation interviews that are conducted. Interviewing skills are best developed through instruction and supervised practice. Although there are various approaches to the interview, research suggests that employee participation and goal setting lead to higher satisfaction and improved performance. Discussing problems, showing support, minimizing criticism, and rewarding effective performance are also beneficial practices. In the interview, deficiencies in employee performance can be discussed and plans for improvement can be made.

CHAPTER 10—DOWNSIZING AND RESTRUCTURING MULTIPLE CHOICE 1.

According to the textbook, what is the least commonly used restructuring and organizational change tactic? a. across-the-board cuts b. eliminating tasks c. contracting out d. use of part-time employees ANS: A

BLM: REMEMBER

REF: Page 264

2.

What time horizon is generally associated with systematic change related to downsizing and restructuring? a. immediate b. short-term c. medium-term d. long-term ANS: D

BLM: REMEMBER

REF: Page 263

3.

What should union officials and management protect when anticipating potential downsizing and restructuring? a. human rights of employees b. positive labour relations programs c. wage and benefit concessions d. labour-management climate ANS: B

BLM: HIGHER ORDER

REF: Page 282

4.

According to Pfeffer, which of the following happens first when a layoff is announced? a.

Companies lose people they don’t want to lose. b.

Morale declines and fear rises in the workplace. c.

People head for the door who have not been laid off. d.

Motivation, commitment, and job satisfaction decline.

ANS: C

BLM: HIGHER ORDER

REF: Page 264

a. b. c. d.

5.

Which of the following is a medium-term alternative to downsizing? exit incentives hiring freeze mandatory vacation reduced overtime

ANS: A

BLM: REMEMBER

REF: Page 265

6.

According to the textbook, what is the most common benefit provided to displaced workers? a. job referral service b. benefits continuation c. family counselling d. severance pay ANS: D

BLM: REMEMBER

REF: Page 266

7.

According to a poll of almost 7 000 employees discussed in the text, what personal strategy would the majority of individuals implement if they heard that their company was planning layoffs? a. visit a lawyer and be aware of their legal rights b. search for a new job before the layoffs occur c. make sure that they remain invisible to the managers d. spend more time at the office and less with family ANS: B

a. b. c. d.

BLM: HIGHER ORDER

REF: Page 269

8.

How do you define job insecurity? expectations about continuity and life employment overall concern about the future existence of a job inability to predict future employment understanding of negative implications of job analysis

ANS: B

BLM: HIGHER ORDER

REF: Page 271

9.

Perceptions of fairness and equity play a key role in understanding how survivors react to a downsizing. What type of justice is associated with the fairness of a downsizing decision? a. procedural b. interactional c. distributive d. manipulative

ANS: C

BLM: REMEMBER

REF: Page 271

10.

In the Bowater Mersey downsizing in 2011, what was the most significant ethical departure, from the employees’ perspective? a.

Employees linked their concerns to the “Occupy Wall Street” movement. b.

Only 52% of union members voted in favour of the downsizing initiatives. c.

More than 56% of the workforce was scheduled to be reduced. d.

Two senior executives received multi-million severance packages.

ANS: D

BLM: HIGHER ORDER

REF: Page 272

11. What is one HR program associated with embeddedness, given that downsizing is unavoidable? a. flex-time b. off-site child care c. defined-contribution plans d. severance pay ANS: A

BLM: HIGHER ORDER

REF: Page 276

12.

What is one challenge that managers must confront when managing in times of uncertainty and potential downsizing? a. focus on the short-term b. pay attention to middle-management c. control the rumour mill d. take charge and minimize involvement ANS: C

BLM: HIGHER ORDER

REF: Page 278

13.

Which of the following programs is NOT typically associated with high involvement human resource management? a. self-managed work teams b. continuous improvement c. incentive compensation d. selective training ANS: D

BLM: REMEMBER

REF: Page 280

14.

If employees believe that they will be rewarded for loyal service and feel protected by job security, what type of contract do they have? a. employment contract b. psychological contract c. union contract d. long-term contract

ANS: B

BLM: REMEMBER

REF: Page 279

15.

What organizational initiative provides a program of counselling and jobsearch assistance for workers who have been terminated? a. ethics b. succession c. outplacement d. re-integration ANS: C

BLM: HIGHER ORDER

REF: Page 266

16.

What do you call an employee who remains with an organization after a downsizing? a. employed b. victim c. survivor d. talented ANS: C

BLM: REMEMBER

REF: Page 260

17.

Downsizing became a huge phenomenon in the 1990s and then it waned.

Which year did downsizing make a comeback? a.

2008 b.

2009 c.

2010 d.

2011 ANS: A

BLM: REMEMBER

REF: Page 260

18.

When survivors of downsizing continue to work for an organization, there are several impacts on them personally. Which of the following is NOT an impact experienced by survivors? a. compliance with workplace safety b. negative attitudes and behaviours c. reduced performance capabilities d. lower organizational productivity ANS: A

BLM: HIGHER ORDER

REF: Page 273

19.

If an organization wants to achieve an effective restructuring, what is one strategy that it might implement? a. outsourcing b. rightsizing

c. d.

designing rationalizing

ANS: B

BLM: HIGHER ORDER

REF: Page 277

20.

Why do organizations with high-involvement work practices suffer more from downsizing than those with fewer such practices? a.

High-involvement work practices are costly to maintain. b.

High-involvement work practices are for elite employees. c.

High-involvement work practices require a cultural buy-in. d.

High-involvement work practices are linked to competitive advantage.

ANS: D

BLM: HIGHER ORDER

REF: Page 280

21.

What type of strategy requires an organization to focus on work process and to assess whether specific functions, products, and/or services should be eliminated? a. downsizing b. workforce reduction c. work redesign d. systematic change ANS: C

BLM: REMEMBER

REF: Page 262

22.

According to the textbook, what is the main goal to be achieved if an organization is downsizing and restructuring with a systematic change strategy? a. competitive advantage b. environmental scanning c. scenario planning d. continuous improvement ANS: D

BLM: HIGHER ORDER

REF: Page 263

23.

What type of justice focuses on the interpersonal treatment employees receive during the implementation of the downsizing decision? a. procedural justice b. interactional justice c. distributive justice d. manipulative justice ANS: B

a. b.

BLM: REMEMBER

REF: Page 271

24.

What is one issue that has received little attention relative to downsizing? reputation for corporate social performance pension contributions and defined benefits

c. d.

effects on long-term profitability and debt employee satisfaction of survivors

ANS: A

BLM: HIGHER ORDER

REF: Page 276

25.

What is the relationship between downsizing and workplace safety for employees? a.

Downsizing results in greater safety for employees because there are fewer employees to monitor. b.

Downsizing results in lower levels of job satisfaction, which results in lower safety motivation. c.

Downsizing results in more job insecurity, which produces more turnover and sick days. d.

Downsizing results in higher safety compliance, which produces higher productivity.

ANS: B

BLM: HIGHER ORDER

REF: Page 277

26.

What is an essential component that is necessary for senior management prior to developing a downsizing strategy? a. knowing financial indicators b. scanning the external environment c. communicating with employees d. creating a culture of trust ANS: D

BLM: HIGHER ORDER

REF: Page 278

27.

According to the textbook, what is the relationship between job loss and social withdrawal? a. inverse relationship b. no relationship c. negative relationship d. positive relationship ANS: D

a. b. c. d.

BLM: HIGHER ORDER

REF: Page 279

28.

In the research by Classen and Dunn, what is one of their major findings?

The risk for suicide increases with long periods of unemployment.

Losing a job can have positive benefits.

Employees are more likely to quit following a downsizing.

Cost cutting is unlikely to disappear in the future.

ANS: A

BLM: HIGHER ORDER

REF: Page 270

29.

What is another term that experienced downsizers might use to describe a workforce reduction or realignment? a. reinventing b. reorganizing c. redistributing d. revectoring ANS: D

BLM: HIGHER ORDER

REF: Page 274

30.

What is one historic issue that necessitates so much emphasis on downsizing today? a.

Organizations focused on growth. b.

Organizations focused on the bottom line. c.

Organizations focused on competitive advantage. d.

Organizations focused on stock prices.

ANS: A

BLM: HIGHER ORDER

REF: Page 260

TRUE/FALSE 1.

Offshoring occurs when an organization moves work to foreign entities outside the company.

ANS: T

BLM: REMEMBER

REF: Page 273

2.

Systematic change is a short-term strategy, whereas work redesign is a medium-term strategy.

ANS: F BLM: REMEMBER (systematic change is a long-term strategy)

REF: Pages 262–263

3.

Outplacement is providing a program of counselling and job-search assistance for workers who have been terminated.

ANS: T

BLM: REMEMBER

REF: Page 266

4.

Interactional justice refers to the interpersonal treatment employees receive during the implementation of the downsizing decision.

ANS: T

BLM: REMEMBER

REF: Page 271

5.

A psychological contract is a written commitment between employers and their employees that guarantees job security and rewards for loyal behaviour.

ANS: F (unwritten)

BLM: REMEMBER

REF: Page 281

6.

“High involvement human resource management” deals with treating people as expenditures.

ANS: F BLM: HIGHER ORDER (treat people as assets)

REF: Page 280

7.

There are three types of restructuring: portfolio, human capital, and organizational.

ANS: F BLM: REMEMBER (portfolio, financial, and organizational)

REF: Page 263

8.

There are three types of downsizing strategies: workforce reduction, work redesign, and systemic change.

ANS: F

BLM: REMEMBER

REF: Pages 261–262

(systematic change) 9.

Many organizations are reactive to downsizing instead of proactive.

ANS: T

BLM: HIGHER ORDER

REF: Page 265

10.

Downsizing is unlikely to disappear in the future because it helps to alleviate the huge financial burdens facing many organizations.

ANS: T

BLM: HIGHER ORDER

REF: Page 260

11.

Some researchers have found evidence that the longer a person is unemployed, the higher the person’s risk for suicide.

ANS: T

BLM: REMEMBER

REF: Page 270

12.

There is considerable evidence that workforce reduction programs ultimately achieve their objectives of cutting costs.

ANS: F BLM: HIGHER ORDER (ultimately fail to achieve their objectives)

REF: Page 264

13.

Work redesign is a short-term strategy, whereas workforce reduction is a medium-term strategy.

ANS: F BLM: REMEMBER REF: Pages 264–265 (medium-term strategy and short-term strategy respectively) 14.

Outsourcing refers to the re-absorbing of excess or inappropriately placed workers into a restructured organization.

ANS: F (inplacement)

BLM: REMEMBER

REF: Page 266

15.

Downsizing may be considered a breach of the unwritten employment contract between employers and their employees.

ANS: F BLM: HIGHER ORDER (psychological contract)

REF: Page 267

16.

Inplacement provides a program of counselling and job-search assistance for workers who have been terminated.

ANS: F (outplacement)

BLM: REMEMBER

REF: Page 266

17.

Asking employees to take voluntary sabbaticals is one medium-term solution to avoid downsizing.

ANS: T

BLM: HIGHER ORDER

REF: Page 265

18.

When rationalizing decisions about downsizing, many managers will rely on economic, accounting, and revenue-based rationales.

ANS: T

BLM: HIGHER ORDER

REF: Page 267

19.

Distributive justice refers to the rules used to determine which employees will be downsized.

ANS: F BLM: REMEMBER (procedural justice)

REF: Page 271

20.

Negative consequences of downsizing might be minimized with greater communication and employee participation.

ANS: T

BLM: HIGHER ORDER

REF: Page 277

21.

Research evidence indicates that downsizing creates job insecurity and low job satisfaction, which are related to greater safety compliance because employees do not wish to be hurt on the job.

ANS: F BLM: HIGHER ORDER (less safety compliance)

REF: Page 277

22.

One issue that has received little attention is the effect of downsizing on the organization’s reputation for corporate social responsibility.

ANS: F BLM: HIGHER ORDER (reputation for corporate social performance – RCSP) 23.

REF: Page 276

Downsizing can be linked to less innovation and more protection of one’s

turf.

ANS: T

BLM: HIGHER ORDER

REF: Page 276

SHORT ANSWER 1.

Define “downsizing” and identify and describe THREE types of downsizing strategies.

ANS: Downsizing involves activities undertaken to improve organizational efficiency, productivity, and/or competitiveness by reducing the size of the firm’s workforce, the costs, and the work processes.

Three Types of Downsizing: Downsizing strategy – is the strategy to improve an organization’s efficiency by reducing the workforce, redesigning the work, or changing the systems of the organization. a.

Workforce Reduction A short-term strategy to cut the number of employees through attrition, early retirement or voluntary severance packages, and layoffs or terminations.

b.

Work Redesign Medium-term strategy in which organizations focus on work processes and assess whether specific functions, products, and/or services should be reconfigured or changed.

c.

Systematic Change Long-term strategy that changes the organization’s culture and attitudes and values of employees with the goal of reducing costs and enhancing quality.

BLM: REMEMBER 2.

REF: Pages 260–263

What are FOUR of the reasons that organizations downsize?

ANS: The most common reasons for organizational downsizing include: • Declining profits • Business downturn or increased pressure from competitors • Merging with another organization, resulting in duplication of efforts • Introduction of new technology • The need to reduce operating costs • The desire to decrease levels of management • Getting rid of employee “deadwood” BLM: REMEMBER

REF: Page 263

3.

What are FIVE of the more insidious consequences of organizational restructuring and downsizing?

ANS: • Reduced job satisfaction, organizational commitment, safety compliance, retention, morale, performance, productivity • Increased turnover, absenteeism, theft and sabotage, uncertainty, job instability • Deteriorating organizational climate and culture • Impact of negative employees on clients and customers • Inability for organizations to reliably cut costs • Inability for reduction programs to meet objectives • Higher potential incidents for depression and suicide • Erosion of community fabric socially and financially • Short-term reaction to a long-term, complex problem – not proactive • Stimulate the loss of good employees in anticipation of further downsizing • The majority of downsized individuals would never work for the downsized company ever again • Violation of the psychological contract • Job loss can lead to greater social withdrawal, even with one incident • Unions also suffer during downsizing and restructuring if there are perceptions of injustice • Union-management relations also suffer during downsizing and restructuring because there are so many negative outcomes BLM: HIGHER ORDER

REF: Pages – whole chapter

CHAPTER 11—STRATEGIC INTERNATIONAL HRM MULTIPLE CHOICE 1.

Which strategy has French lodging giant ACCOR followed for its U.S. subsidiaries in order to attract and retain local employees? a.

Global IHRM strategy b.

Integrative IHRM strategy c.

Exportive IHRM strategy d.

Adaptive IHRM strategy ANS: D

BLM: HIGHER ORDER

REF: Page 300

2.

Canada’s workforce diversity produces a wide range of HR-related challenges for international placements. Which of the following is typical of those challenges? a. increased number of younger workers b. employees with disabilities c. cultural assimilation in the new country d. family and divorce issues for expatriates ANS: B

BLM: REMEMBER

REF: Page 295

3.

If a company introduces culturally sensitive products in chosen countries with the least amount of cost, what type of strategy is the company adopting? a. multinational b. multidomestic c. global d. domestic ANS: C

BLM: REMEMBER

REF: Page 300

4.

What do you call individuals from the subsidiary country who know the foreign cultural environment well? a. home-country nationals b. third-country nationals c. parent-country nationals d. host-country nationals ANS: A

BLM: REMEMBER

REF: Page 301

5.

When an individual returns to his or her home headquarters or home subsidiaries after working in a foreign country, what is this process called? a. enculturation b. repatriation c. culture shock d. alienation ANS: B

BLM: HIGHER ORDER

REF: Page 307

6.

If an individual has an ability to acquire certain skills to a desired level of performance, what is this capability called? a. pliability b. flexibility c. trainability d. adaptability ANS: C

BLM: HIGHER ORDER

REF: Page 303

7.

When an individual moves to a foreign country to work, the individual may experience an overwhelming sense of alienation from the new culture. What is this experience called? a. depression b. culture shock c. ethnocentrism d. post-traumatic stress ANS: B

BLM: HIGHER ORDER

REF: Page 307

8.

What was the major finding that the 2011 Global Relocation Trends Survey reported? a.

There is an increasing wage gap between home-country and third-country nationals. b.

Reverse culture shock upon repatriation leads to several serious consequences for the employee and organization. c.

Most companies do not have repatriation strategies linked to career management and retention. d.

Many global managers are remaining as international employees for the duration of their careers.

ANS: C

BLM: REMEMBER

REF: Page 307

9.

Which of the following is typically excluded from an expatriate’s compensation package? a. goods and services b. shipment and storage c. food and clothing d. taxes and insurance ANS: D

BLM: REMEMBER

REF: Page 312

10.

What type of strategy concentrates on the development of foreign markets by selling to foreign nationals? a. multidomestic b. domestic c. multinational d. global ANS: A

BLM: REMEMBER

REF: Page 301

11.

According to a 2011 Canadian survey, what is the greatest major challenge that management faces with international relocation? a. family and tax issues b. dual-income spouses c. terrorism and security d. hardship allowances ANS: A

a. b. c. d.

BLM: HIGHER ORDER

REF: Page 313

12.

What is the host-based policy approach for international compensation?

A policy that links the base salary to the salary structure of the home country but retains the host-country salary structure for other international supplements.

A policy that links the base salary to the salary structure of the local country but retains the global country salary structure for other international supplements.

A policy that links the base salary to the salary structure of the home country but retains the parent-country salary structure for other international supplements.

A policy that links the base salary to the salary structure of the host country but retains the home-country salary structure for other international supplements.

ANS: D

BLM: REMEMBER

REF: Pages 312–313

a. b. c. d.

13.

What is one benefit of cross-cultural training? self-development self-monitoring self-sacrifice self-adjustment

ANS: A

BLM: REMEMBER

REF: Page 305

14.

What is the main reason that companies have NOT benefited from expatriate training? a.

Expatriates have had their training needs evaluated and assessed. b.

Expatriates have clarified their purpose and goals of training. c.

Expatriates are selected too quickly and receive little training. d.

Expatriates have had training programs designed to meet their needs.

ANS: C

BLM: HIGHER ORDER

REF: Page 305

15.

What are the three international training approaches promoted by the textbook? a. case studies; lecture-based briefings; vicarious learning b. information giving; behavioural modelling; experiential forms c. role-playing; field experiences; sensitivity training d. culture assimilators; on-the-job; area studies ANS: B

BLM: REMEMBER

REF: Page 306

16.

What are individuals called who are from headquarters and are highly familiar with the firm’s products and services, as well as with its corporate culture? a. host-country nationals b. home-country nationals c. third-country nationals d. parent-country nationals ANS: D

BLM: REMEMBER

REF: Page 301

17.

If a company is looking for a strategy that would create the highest internal fit, which International Human Resources Management (IHRM) approach should be chosen? a. exportive IHRM approach b. adaptive IHRM approach c. integrative IHRM approach d. global IHRM approach

ANS: A

BLM: HIGHER ORDER

REF: Page 301

18.

What type of strategy deals with internationalizing by exporting goods abroad as a means of seeking new markets? a. multidomestic b. domestic c. multinational d. global ANS: B

a. b. c. d.

BLM: REMEMBER

REF: Page 299

19.

What did Colgate-Palmolive Co. do to capitalize on its expatriate skills?

It created a global succession-planning database.

It developed cross-cultural training for critical incidents.

It committed funds to improve failed expatriate assignments.

It improved its pre-assignment and post-assignment communication.

ANS: A

BLM: REMEMBER

REF: Page 309

20.

Which of the following is NOT considered a part of Canada’s union structure? a. industrial b. craft c. conglomerate d. professional ANS: D

a. b. c. d.

BLM: REMEMBER

REF: Page 313

21.

In 2010, which country had the highest unionization rate in the world?

Canada Germany Finland Sweden

ANS: C

BLM: REMEMBER

REF: Page 313

22.

Which of the following is NOT typically found in an organization’s approach to international compensation? a. region-based policy b. global-based policy c. host-based policy d. home-based policy ANS: B

BLM: REMEMBER

REF: Page 312

23.

In general, why have levels of union density declined throughout the world? a.

Lack of usefulness representing all interests in a global society. b.

Politicization of unions has been linked to local governments. c.

Decentralization and fragmentation of union organizations. d.

Erosion of power and negative public sentiment towards unions.

ANS: C

BLM: HIGHER ORDER

REF: Page 313

24.

According to the textbook, and in light of the ongoing economic crisis in the United States, which country might Canada concentrate on to add greater diversification to its exports? a.

Germany b.

Japan c.

South Africa d.

India ANS: C

BLM: HIGHER ORDER

REF: Page 295

25.

What is one of the internal factors with which international HR planning must fit? a. local economy b. host country culture c. competitors’ strategies d. existing HR system ANS: D

BLM: REMEMBER

REF: Page 297

26.

Which of the following is NOT one of the factors outlined in the FiveFactor Model of Personality, which is used to demonstrate the probability of expatriate adjustment in overseas assignments? a. introversion b. openness c. agreeableness d. conscientiousness ANS: A

BLM: REMEMBER

REF: Page 303

27.

Which dimension of cross-cultural competencies refers to the capability to substitute sources of reinforcement when necessary and deal with alienation and isolation? a. relationship competencies b. self-maintenance competencies

c. d.

perceptual competencies stress management competencies

ANS: B

BLM: HIGHER ORDER

REF: Page 304

28.

Which type of training plays a crucial role in the pre-assignment process for an expatriate? a. field experiences b. behavioural modelling c. on-the-job d. cross-cultural ANS: D

BLM: REMEMBER

REF: Page 305

29.

Which of the following is NOT considered to be a symptom of reverse culture shock? a.

Increased levels of anxiety about the adjustment to return home. b.

Increased satisfaction with the standard of living upon returning home. c.

Decreased interest from co-workers to hear of the repatriate’s experience. d.

Decreased use of repatriate’s international knowledge, skills, and abilities (KSAs) upon returning home.

ANS: B

BLM: HIGHER ORDER

REF: Page 307

30.

In the multidomestic stage of internationalization, what single perspective is a trademark of this stage? a. ethnocentric perspective b. polycentric perspective c. geocentric perspective d. egocentric perspective ANS: B

BLM: REMEMBER

REF: Page 299

TRUE/FALSE 1.

If the needs and goals of one component are consistent with the needs and goals of another component, then the two components are said to fit.

ANS: T 2.

ANS: F (does)

BLM: HIGHER ORDER

REF: Page 298

An adaptive IHRM approach does not focus on local laws.

BLM: HIGHER ORDER

REF: Page 299

3.

A multinational strategy involves having unique products and services for each geographical area where the company has outlets across the globe.

ANS: F BLM: HIGHER ORDER (standardized globally)

REF: Page 299

4.

A multidomestic strategy is a strategy that concentrates on the development of foreign markets by selling to foreign nationals.

ANS: T

BLM: REMEMBER

REF: Page 299

5.

To maintain security in foreign countries, it is important for Canadian organizations to establish close relationships with embassies, consultants, chambers of commerce, and high commissions.

ANS: T

BLM: REMEMBER

REF: Page 297

6.

If management wants to adopt a global strategy for the organization, this would involve introducing culturally sensitive products in chosen countries with the least amount of cost.

ANS: T

BLM: HIGHER ORDER

REF: Page 300

7.

Parent-country nationals are individuals from the subsidiary country who know the foreign cultural environment well.

ANS: F BLM: REMEMBER (home-country nationals)

REF: Page 301

8.

Trainability refers to an individual’s ability to acquire certain skills to a desired level of performance.

ANS: T

BLM: REMEMBER

REF: Page 303

9.

When an individual moves to a foreign country to work, the individual may experience repatriation, which refers to the overwhelming sense of alienation with the new culture.

ANS: F (culture shock)

BLM: HIGHER ORDER

REF: Page 307

10.

Most organizations involved in international operations do not have welldeveloped repatriation processes for their expatriate employees.

ANS: T

BLM: REMEMBER

REF: Page 307

11.

In the article entitled The Would-Be Pioneer, the main issue for HR professional Linda Myers was that she was that she was not a Korean man.

ANS: T BLM: HIGHER ORDER (she did not “fit” the Korean environment)

REF: Page 294

12.

A multinational strategy concentrates on the development of foreign markets by selling to foreign nationals.

ANS: F BLM: REMEMBER (multidomestic strategy)

REF: Page 299

13.

When an individual leaves his or her home country to work in a foreign country, this individual is considered a repatriate.

ANS: F (expatriate)

BLM: HIGHER ORDER

REF: Page 307

14.

Cross-cultural training for global managers and their accompanying relatives plays a crucial role in the post-assignment process common to IHRM. ANS: F (pre-assignment) 15.

ANS: T

BLM: HIGHER ORDER

REF: Page 305

There is a global trend of union density decrease.

BLM: REMEMBER

REF: Page 313

16.

Compensation to expatriates for goods and services, housing and taxes, are the outlay categories where the least discrepancies can arise for an organization.

ANS: F BLM: HIGHER ORDER (most discrepancies)

REF: Page 312

17.

A key disadvantage of home-based compensation policies is that international staff performing the same function may be paid at different salaries.

ANS: T

BLM: HIGHER ORDER

REF: Page 312

18.

The exportive IHRM approach transfers home HRM systems to foreign subsidiaries without modifying or adapting to the local environment.

ANS: T 19.

BLM: REMEMBER

REF: Page 299

The adaptive IHRM approach has the highest internal fit.

ANS: F BLM: REMEMBER (highest external fit)

REF: Page 301

20.

Antecedent factors of cross-cultural adjustment include items like cultural knowledge, stress-management skills, and psychological flexibility.

ANS: F BLM: REMEMBER (cognitive flexibility not psychological flexibility)

REF: Page 304

21.

The Four Seasons’ “Golden Rule” was not successfully implemented in its other locations outside North America because it was culturally sensitive and value-laden.

ANS: F BLM: HIGHER ORDER (Golden Rule was the key to Four Seasons’ success)

REF: Page 300

22.

The Five-Factor personality model has been demonstrated as irrelevant to expatriate adjustment because it is based on North American research.

ANS: F BLM: HIGHER ORDER (demonstrated as being crucial)

REF: Page 303

23.

Many authors believe that there are three areas of competencies that are necessary for cross-cultural adjustment: self-maintenance, relationship, and perceptual.

ANS: T

BLM: REMEMBER

REF: Page 304

SHORT ANSWER 1.

What are THREE of the key challenges facing strategic international

HRM? ANS: Workforce Diversity • Integration and accommodation of an increased number of older workers and employees with disabilities, gender issues, and aspects related to ethnic and cultural differences among employees; • The complexity of workforce diversity will grow with each foreign market Canadian organizations decide to enter; • IHRM systems must consider and accommodate the needs of an increasingly diverse labour force and tailor international HR policies and practices accordingly.

Employment Legislation • HR managers are faced with a complex legislation framework; • When crossing national borders, Canadian HR managers encounter additional, hostcountry employment legislation.

The Role of the HR Function • HR departments are often understaffed, underfunded, and limited to a supporting role with little key decision-making power; • Employment legislation, socioeconomic, and technological differences in local markets demand sophisticated IHRM systems; • The increased complexity of the HR function requires HR managers to redefine their role and outsource some of their responsibilities to specialists and consultants (e.g., international employment lawyers).

Flexibility • Defined as the firm’s ability to respond to various demands from a dynamic, competitive environment; • Advanced IHRM systems can obtain a high level of fit and flexibility by developing a strategic approach toward the management of international workforces.

Security • Business environments are becoming increasingly unsafe and so it is important to consider the security of employees overseas; • SIHRM policies should include risk assessments, precautions, safety procedures, contingency plans for employees and their families; • Establishing relationships with Canadian government representatives is essential; like embassies, chambers of commerce, consulates, high commissions, etc.; • Knowledge of the local laws is also reinforced here,

BLM: HIGHER ORDER REF: Pages 295–296 2.

Define strategic international HR planning and strategic international human resources management.

ANS: Strategic international HR planning involves projecting global competence supply, forecasting global competence needs, and developing a blueprint to establish competence pools within companies.

Strategic international HRM encompasses human resource issues, functions, and policies and practices that result from the strategic activities of multinational enterprises and that affect the international concerns and goals of these enterprises.

BLM: REMEMBER 3.

REF: Page 297

Identify and briefly explain the THREE different approaches to SIHRM.

ANS: Adaptive HRM Approach • Local cultural, political, and legal issues will be considered and local HR practices will be adopted; • A local executive is usually hired to take care of the subsidiaries’ HR management; • The local manager is familiar with the local issues, and there is no language barrier between the HR manager, local partners, and employees; • Hiring a local manager can also guarantee the consistency of HR practices with the local legal system and the environment; • The disadvantage is that the local manager does not know the company’s culture as well.

Exportive IHRM Approach • MNCs will have standardized HR systems across their subsidiaries all over the world; • Transaction costs are reduced, corporate policies are consistent, and control over subsidiaries is maintained; • Advantage is that the HR managers at headquarters have a “tried and true” HR system and can readily implement it at subsidiaries across the world; • Disadvantage is that the local environment will not have been considered in the HR system and the fit with the local system will be missing.

Integrative IHRM Approach • Combines home HR practices with local practices; • The best HR policies and practices will be chosen for foreign subsidiaries; • Context-free HR practices will be transferred to subsidiaries; • Decision-making regarding HR policies and practices will be jointly in the hands of headquarters and foreign subsidiaries;

•

HR managers in the headquarters must have a geocentric or global perspective, be culturally sensitive, and be able to move HR resources strategically around the subsidiaries and headquarters.

BLM: HIGHER ORDER

REF: Pages 299–300

4.

What is cross-cultural training (CCT)? What are the benefits of CCT? What are the FIVE steps that must be planned and implemented to ensure successful training?

ANS: Cross-cultural training is the orientation and training provided to those individuals selected by a MNC to work internationally. Some of the primary benefits of CCT are: • CCT positively influences the potential success of the expatriate • Training helps with adjustment and effectiveness of expatriate managers • Strategic HR planning is needed for training to focus on the development of global competencies Training should emphasize FIVE points: • assess and evaluate the needs of training for expatriates • clarify the purpose and goals of the training that are relevant to the participants’ daily activities • plan and design the training programs to meet training goals • implement the training plan • use several techniques to increase the effectiveness of the training BLM: HIGHER ORDER 5.

REF: Page 305

What is repatriation? What are some of the issues facing repatriates?

ANS: Repatriation occurs when the PCNs, TCNs, or even the HCNs return to their home headquarters or home subsidiaries after the completion of their assignment. “Reverse culture shock” is often experienced upon return from an international assignment. Some common consequences when people repatriate: • Increased levels of anxiety about the adjustment “back home”; • Dissatisfaction with the standard of living upon returning home; • Co-workers may not be interested in hearing about the repatriate’s experiences; • The repatriates’ job does not make as much use of the repatriate’s international KSAs as it could; • There is a high rate of turnover among repatriates.

• Although there is considerable evidence of need, companies continue to have poorly developed repatriation strategies and pay little attention to their returning expatriates.

BLM: HIGHER ORDER

REF: Page 307

Chapter 13 Organizational Structure 13.1 Multiple-Choice Questions 1) How job tasks are formally divided, grouped and coordinated is termed A) organizational structure.

B) organizational behaviour.

C) formalization.

D) span of control.

E) work specialization.

2) Terri is upset because tasks that previously were part of her job are now subdivided into separate jobs as a result of recent reorganization. This is an example of A) work specialization.

B) departmentalization.

C) infrastructure.

D) chain of command.

E) decentralization.

3) Now that Terri's tasks have been divided up to create separate jobs, the next step that her organization took was to group these jobs together so that common tasks could be coordinated. This is an example of A) infrastructure.

B) decentralization.

C) centralization.

D) departmentalization.

E) chain of command.

4) Bob works for a manufacturer that has separate departments for engineering, accounting, manufacturing, purchasing, and human resources. This is reflective of departmentalization by A) product.

B) osmosis.

C) function.

D) service.

E) process.

5) Ted works for an aluminum tubing manufacturer that has separate departments for casting, press, tubing, inspecting, and shipping. This is known as departmentalization by A) osmosis.

B) product.

C) function.

D) process.

E) service.

6) Estee Lauder has a separate department for Clinique, Origins, and MAC such that each is operated as a separate company. This is known as departmentalization by A) osmosis.

B) product.

C) function.

D) process.

E) service.

7) The assignment of authority to another person to carry out specific duties and make the decisions required to successfully complete those duties is known as A) chain of command.

B) departmentalization.

C) work specialization.

D) delegation.

E) centralization.

8) Donna works in sales for an office supplies firm that has separate retail, wholesale, and government departments. This is known as departmentalization by

A) geography.

B) service.

C) process.

D) customer.

E) function.

9) Raghib just started working for a new organization, and he asked the person training him "To whom do I go if I have a problem?" Raghib wants to understand the company's A) peer pressure.

B) organizational structure.

C) chain of command.

D) departmentalization.

E) centralization.

10) One of the best attributes of Francois in the eyes of his employees is that he gives them the authority to carry out specific duties; this allows the employees to make some decisions on their own.

This is known as A) passing the buck.

B) chain of command.

C) giving orders.

D) delegation.

E) groupthink.

11) After a recent reorganization, Steve's boss is wondering whether he has too many people reporting to him. His boss is concerned about his A) delegation.

B) span of control.

C) command and control.

D) motivation.

E) decentralization.

12) Daniella is frustrated after working for her new company for a few weeks. It is clear to her that, unlike her past employer, upper management makes the decisions affecting her work. This is an example of A) specialization.

B) chain of command.

C) authority.

D) centralization.

E) decentralization.

13) The degree to which tasks are subdivided into separate jobs is termed A) departmentalization.

B) formalization.

C) work specialization.

D) span of control.

E) task structure.

SCENARIO 13-1 You are developing a training manual that will assist managers in designing an appropriate organizational structure for new organizations. You have included information and references for all of the key questions that managers need to answer.

14) You suggest that one of the questions to be answered is "To what degree should tasks be subdivided into separate jobs?" The answer to this question is provided by A) formalization.

B) work specialization.

C) span of control.

D) chain of command.

E) work diversity.

15) The degree to which rules and regulations are used to direct employees and managers in their work is termed

A) chain of command.

B) formalization.

C) span of control.

D) departmentalization.

E) division of labour.

16) You suggest that one of the questions to be answered is "On what basis should jobs be grouped together?" The answer to this question is provided by A) departmentalization.

B) work specialization.

C) centralization.

D) formalization.

E) decentralization.

17) Evidence indicates that work specialization contributes to higher employee productivity at the price of A) reduced job coordination.

B) increased job complexity.

C) increased job satisfaction.

D) reduced job satisfaction.

E) reduced creativity.

18) Which of the following questions relates to work specialization?

A) To what degree are tasks subdivided into separate jobs?

B) On what basis will jobs be grouped together?

C) To whom do individuals and groups report?

D) How many individuals can a manager efficiently and effectively direct?

E) Where does decision-making authority lie?

19) What sort of departmentalization sees companies create separate work groups based on different types of goods?

A) product B) process C) geographic D) functional E) customer 20) A manufacturing manager who organizes the plant by separating engineering, accounting, manufacturing, personnel, and purchasing into departments is practicing which type of departmentalization?

A) customer B) product C) functional D) geographic E) process 21) Sun Petroleum Products departmentalizes by fuels, lubricants, and waxes and chemicals. This is an example of departmentalization by A) functions.

B) process.

C) customer.

D) product.

E) job design.

22) Which type of departmentalization results in increased accountability for merchandise performance?

A) geographic B) customer C) process

D) product E) market 23) An office supply firm that has three departments to service retail, wholesale, and government customers is practicing which type of departmentalization?

A) functional B) customer C) process D) geographic E) product SCENARIO 13-2 You have divided the jobs done by your department through work specialization and are now trying to decide how to best group them for efficiency and service to the customer. You are considering grouping activities by functions, product, process or customer.

24) You have decided that since you are a novice at departmentalization, you will go with the most popular method. You will probably choose which type of departmentalization?

A) function B) product C) process D) customer E) task 25) You find that there seem to be a common set of problems among certain types of buyers of your product. To help resolve this problem, you should choose A) function departmentalization.

B) product departmentalization.

C) process departmentalization.

D) customer departmentalization.

E) geographic departmentalization.

26) You are organizing into West Coast, Prairie/Northern, Ontario, Quebec, and Atlantic regions. This is termed A) process departmentalization.

B) customer departmentalization.

C) geographic departmentalization.

D) functional departmentalization.

E) technical departmentalization.

27) The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom is termed A) chain of command.

B) authority.

C) power.

D) unity of command.

E) power and authority structure.

28) Which of the following refers to the number of subordinates a manager can efficiently and effectively direct?

A) span of control B) unity of command C) chain of command D) organizational chart E) structure of command 29) If you have a narrow span of control, you have what type of organization?

A) multi-level B) short C) tall D) matrix E) wide

30) Which of the following is a drawback of a small span of control?

A) It reduces effectiveness.

B) It is more efficient.

C) It is expensive.

D) It empowers employees.

E) It encourages employee autonomy.

31) When a manager assigns some of their authority to another person to carry out specific duties, allowing that employee to make some decisions, the process is called A) chain of command.

B) span of control.

C) permissive environment.

D) discretionary powers.

E) delegation.

32) The best definition for centralization is A) Decision discretion is pushed down to lower-level employees.

B) Decision making is concentrated at a single point in the organization.

C) Decision making depends on the situation.

D) Decision making is done in each department and then sent to the president for the final decision.

E) Decision making is largely concentrated within teams.

33) The degree to which decision making is distributed to lower-level employees is termed A) centralization.

B) decentralization.

C) departmentalization.

D) work specialization.

E) task specialization.

34)When decision-making authority is concentrated in a single point, the organization is structured using A) delegation.

B) formalization.

C) complexity.

D) centralization.

E) span of control.

35) The more that lower-level personnel provide input or are actually given the discretion to make decisions, the more ________ there is.

A) centralization B) decentralization C) work specialization D) departmentalization E) functional specialization 36) In an organization that has high centralization A) the corporate headquarters is located centrally to branch offices.

B) all top level officials are located within the same geographic area.

C) top managers make all the decisions–lower-level managers merely carry out directions.

D) decision discretion is widely dispersed throughout the organization.

E) problems can be quickly and efficiently solved.

37) If a job is highly formalized, it would NOT include A) clearly defined procedures on work processes.

B) an explicit job description.

C) high employee job discretion.

D) a large number of organizational rules.

E) consistent and uniform output.

38) Where there is high formalization, there is (are) A) explicit job descriptions.

B) few rules and regulations.

C) a variety of tasks in progress.

D) few personnel policies.

E) job flexibility and freedom.

39) In a highly formalized organization, job behaviours are relatively A) programmed.

B) nonprogrammed.

C) discretionary.

D) non-existent.

E) flexible.

40) Employee discretion is inversely related to A) complexity.

B) standardization.

C) centralization.

D) technology.

E) decentralization.

41) Which of the following structures is characterized by extensive departmentalization, high formalization, a limited information network, as well as centralization?

A) mechanistic model B) organic model C) technology model D) job structure model E) job satisfaction model 42) Kim thinks that she is going to love working for her new company, as it is very informal with a lot of cross-functional teams with members from different departments. This is an example of what kind of structure?

A) mechanistic B) flat C) organic D) transitional E) hybrid 43) A structure that is flat, uses cross-functional teams, and has low formalization is known as A) informal.

B) unstructured.

C) organic.

D) mechanistic.

E) amorphous.

44) Wazi feels very comfortable working for an organization that has a clear chain of command, a lot of departmentalization , and a narrow span of control, as this suits his personality. This is an example of what kind of structure?

A) mechanistic B) flat C) organic D) transitional E) hybrid 45) What is a major difference between a mechanistic model and an organic model?

A) One involves new products and services.

B) One has high formalization.

C) They vary greatly in organizational size.

D) One is for technological firms.

E) One is characteristic of the service industry.

46) Which of the following is uncharacteristic of a mechanistic structure?

A) extensive departmentalization B) high formalization C) limited information network D) flexibility E) little participation 47) An organic structure is typically characterized by A) high complexity.

B) low formalization.

C) a limited information network.

D) little participation by lower-level members in decision making.

E) no cross-functional teams.

48) If there are low formalization, a comprehensive information network and many participants in decision making, one would expect A) a bureaucracy.

B) a mechanistic structure.

C) an organic structure.

D) a stable structure.

E) a typical government organization.

49) ________ is characterized by a comprehensive information network and many participants in decision making.

A) A bureaucracy B) A mechanistic structure C) A stable structure D) An organic structure E) A boundaryless organization 50) Which of the following is inconsistent with the organic model?

A) cross-functional teams B) rigid departmentalization C) cross-hierarchical teams D) free flow of information E) high participation in decision making 51) Which of the following is characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization?

A) bureaucracy B) matrix organization C) simple structure D) team structure E) mechanistic structure 52) Kara works for a company that has a flat organizational structure; authority is centralized in a single person who has a wide span of control and authority. This is an example of what kind of structure?

A) organic B) simple C) matrix D) bureaucratic E) hybrid 53) Luigi works for an advertising agency and the organizational structure is such that he has two bosses; his direct boss is the manager of the department he is assigned to and his other boss is the manager responsible for the new product that is his main focus. This is an example of what kind of structure?

A) organic

B) simple C) matrix D) bureaucratic E) hybrid 54) An organizational design that combines functional and product departmentalization is known as A) matrix.

B) organic.

C) mechanistic.

D) hybrid.

E) bureaucratic.

55) Which of the following is consistent with a simple structure?

A) high centralization B) high horizontal differentiation C) high formalization D) high departmentalization E) high vertical differentiation 56) Simple structures are characterized by A) shared authority.

B) narrow spans of control.

C) lots of formalization.

D) low degrees of departmentalization.

E) diverse accountability.

57) An organizational structure characterized by highly routine operating tasks, very formalized rules and regulations, narrow span of control, and centralized authority is known as a A) simple structure.

B) team structure.

C) bureaucracy.

D) matrix.

E) virtual structure.

58) The characteristic underlying all bureaucracies is A) flexibility.

B) standardization.

C) dual lines of authority.

D) decentralization.

E) low efficiencies.

59) The structure that creates dual lines of authority and combines functional and product departmentalization is the A) simple structure.

B) bureaucracy.

C) matrix structure.

D) virtual organization.

E) organic structure.

60) The matrix structure combines the A) functional and simple structures.

B) functional and product structures.

C) simple and product structures.

D) organic and mechanistic structures.

E) bureaucracy and mechanistic structures.

SCENARIO 13-3 You are interested in explaining the different types of organizational designs to students of basic management. These students need to know the advantages and disadvantages of each structure as well as the structure's characteristics.

61) You have just described a structure that is flat, has little formalization and is fast, flexible, and inexpensive to maintain. This is the A) matrix structure.

B) simple structure.

C) bureaucracy.

D) team structure.

E) job enhancement structure.

62) You describe virtues of standardization. The structure that you are most likely describing is the A) matrix structure.

B) simple structure.

C) bureaucracy.

D) team structure.

E) modular structure.

63) The structure that is used in hospitals, universities and entertainment companies is the A) matrix structure.

B) simple structure.

C) bureaucracy.

D) team structure.

E) modular structure.

64) Which of the following problems is most likely to occur in a matrix structure?

A) decreased response to environmental change B) decreased employee motivation C) loss of economies of scale D) employees receiving conflicting directives E) decreased coordination efforts 65) A structure of evolving networks of independent companies linked together to share skills and costs is called A) virtual organization.

B) team.

C) boundaryless.

D) feminine organization.

E) modular.

66) Todd works for a manufacturer that outsources all of its production to another organization for cost reasons. This is an example of what kind of organization?

A) team-based B) hybrid C) matrices D) virtual E) boundaryless 67) Don can't believe how progressive his new company is. It tries to eliminate the chain of command, have limitless spans of control, and it replaces departments with empowered teams. This is known as what type of organization?

A) virtual B) hybrid C) matrix D) mechanistic E) boundaryless 68)a small core organization that outsources major business functions is known as ___ organization.

A) matrix B) virtual C) organic D) bureaucratic E) mechanistic

69) Which organization is opposite to the typical bureaucracy that has many vertical levels of management and where ownership of the means of production is an example of control?

A) virtual B) team C) boundaryless D) matrix E) matrices 70) If you wanted to outsource many of the functions that are currently performed within your organization, which organizational structure would make the most sense?

A) matrix organization B) virtual organization C) team structure D) organic structure E) simple organization 71) An organization that seeks to eliminate the chain of command, have limitless spans of control and replace departments with empowered teams is the A) virtual organization.

B) boundaryless organization.

C) matrix organization.

D) team structure.

E) simple structure.

SCENARIO 13-4 After extensively researching both traditional and new design options for organizational structures, you have decided that one of the designs developed since the early 1980s is probably the most appropriate for your newly formed organization.

72) You wish to outsource many of the functions that are usually performed internally. You have chosen to operate your business as a A) matrix organization.

B) virtual organization.

C) team structure.

D) matrix structure.

E) simple organization.

73) Your new organization is looking to network with a variety of independent companies so that you can share skills, costs and access to other markets. The most appropriate structure is probably A) matrix organization.

B) virtual organization.

C) team structure.

D) matrix structure.

E) modular organization.

74) You have eliminated horizontal, vertical, and external barriers. You are operating as a A) matrix organization.

B) virtual organization.

C) team structure.

D) boundaryless organization.

E) decentralized organization.

75) Changes in corporate strategy precede and lead to A) changes in the environment.

B) better communication.

C) increased productivity.

D) changes in an organization's structure.

E) satisfying management's demands.

76) Which strategy emphasizes the introduction of major new products and services?

A) innovation

B) cost-minimization C) imitation D) organic E) mechanistic 77) Which term refers to how an organization transfers its inputs to outputs?

A) technology B) structure C) strategy D) environment E) innovation 78) An organization's environment represents A) the organizational culture.

B) anything outside the organization itself.

C) the accounting system.

D) everything both inside and outside the organization.

E) a relatively certain future.

79) Lea's company pursues a strategy of cost minimization, but it has not been succeeding. Its structure is quite loose, informal, and decentralized. A better organizational structure for it might be A) organic.

B) matrix.

C) mechanistic.

D) imitation.

E) simple.

80) Emilio's company is very innovative and seeks to defeat its competition by introducing a steady stream of new products. The best organizational structure for this company would likely be A) organic.

B) matrix.

C) mechanistic.

D) imitation.

E) simple.

81) Quinton's company follows an imitation strategy; it only produces new products and moves into new markets after their viability has already been proven. The best organizational structure for it would likely be A) organic.

B) matrix.

C) mechanistic.

D) mechanistic and organic.

E) simple.

82) If an environment is one that can support growth, it can be said that it has the ________ for growth.

A) capacity B) volatility C) complexity D) technology E) desire what relationship between work specialization, productivity and job satisfaction?

A) the greater the work specialization, the lower employee productivity will be and the higher job satisfaction will be B) the greater the work specialization, the higher employee productivity will be and the higher job satisfaction will be C) the greater the work specialization, the higher employee productivity will be and the lower job satisfaction will be D) the greater the work specialization, the lower employee productivity will be and the lower job satisfaction will be

E) the lower the work specialization, the higher employee productivity will be and the higher the job satisfaction will be 84) Research tends to support that a wide span of control and the autonomy this provides to employees, gives ________ employees ________ job satisfaction.

A) all, lower B) most, lower C) all, higher D) most, higher E) no, any 85) National culture does seem to influence the preference for structure; employees of high powerdistance cultures are more accepting of which type of structure?

A) mechanistic B) organic C) matrix D) virtual E) simple 13.2 True/False Questions 1) Organizations have different structures, but the structure has little bearing on employee attitudes and behaviour.

2) It is very clear to Jake whom he has to speak within his organization to get approval for expenditures that he want s to make. Thus, it can be said that there is a clear chain of command in place.

3) Mike is frustrated because it seems that every decision that he wants to make has to be approved by his boss' boss. Thus, it can be said that his organization is highly decentralized.

4) Managers need to address six key elements when they design their organization's structure: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization.

5) The degree to which tasks in the organization are subdivided into separate jobs is referred to as departmentalization.

6) Work specialization, when overutilized, results in employee boredom, stress and absenteeism.

7) There is fairly strong evidence linking work specialization to increased job satisfaction.

8) The grouping of jobs by common tasks is termed departmentalization.

9) The strength of functional departmentalization is that it separates specialists to avoid groupthink.

10) Geographic departmentalization can be valuable if an organization's customers are dispersed over a large geographic area.

11) Process departmentalization can be used for processing products but has little application to processing customers.

12) The assumption underlying customer departmentalization is that customers in each department have a common set of problems or needs.

13) Organizations may choose only one of the forms of departmentalization.

14) Span of control refers to the number of employees a manager can efficiently and effectively direct.

15) Flat organizational structures result from narrow spans of control.

16) Widening the span of control can make the organization flatter and less bureaucratic.

17) A review of the research indicates that there is no evidence to support a relationship between span of control and employee performance.

18) Decentralized organizations tend to allow low-level personnel to make discretionary decisions.

19) In organizations with low levels of formalization, job behaviours are relatively non-programmed.

20) The less the specialization, the less input the employee has into how his or her work is to be done.

21) Increase in the number of rules and regulations results in increased formalization.

22) University textbook sellers have highly formalized jobs.

23) Autonomy and formalization are inversely related.

24) The greater the formalization, the less discretion employees have over how their work is accomplished.

25) A structure characterized by extensive departmentalization, high formalization, limited information network and centralization is organic.

26) The mechanistic model and the organic model are at opposite extremes on a continuum.

27) Mechanistic structures are high in formalization.

28) Edie is part of no fewer than six cross-functional teams at her company and she meets regularly with all of them. It is likely that she works for a mechanistic organization.

29) Fiona is uncomfortable working for her new organization because she is not used to such a high degree of formalization and centralization. It is likely that she is working for an organic organization.

30) Organic structures rely on managerial hierarchy to facilitate co-ordination.

31) McDonald's is an example of a company where employee routines are highly formalized.

32) The simple structure is fast, flexible, and inexpensive to maintain, and accountability is clear.

33) Joshua feels confused because he answers to his own boss as well as to another boss who is in charge of one of the company's main products. He is likely working in a matrix structure.

34) Leroy is frustrated because he has to go through so much "red tape" just to get authorization to buy a new stapler. It is likely that he is working for a bureaucratic organization.

35) One major strength of the simple structure is that it is easy to maintain in any size.

36) Larger organizations are developing structures with fewer layers of hierarchy and open boundaries.

37)characteristic of a virtual organization are that it breaks down department barriers and decentralizes decision making to the level of the work team.

38) Thad is concerned because his company is increasingly in the habit of outsourcing major business functions. It is likely that the company is moving towards a virtual structure.

39) Justin's company is very progressive as it is a continually evolving network of independent companies. It is likely that he is working for a virtual organization.

SCENARIO 13-5 You have decided to change your organization to a "boundaryless" organization because you believe fewer barriers would increase efficiency and effectiveness.

40) You can expect to eliminate barriers within your organization, as well as breaking down barriers to external constituencies and barriers created by geography.

41) Customers will be given the opportunity to participate in employee appraisals.

42) An organization that tightly controls costs, refrains from incurring unnecessary innovation or marketing expenses, and cuts prices in selling a basic product pursues a cost-minimization strategy.

43) An innovation strategy works well only for simple change.

44) Norma's company is keen to expand into the Australian market, but does not plan to do so until other companies have proved the viability of the Australian market. This company is likely following an imitation strategy.

45) The more scarce, dynamic and complex the environment, the more organic a structure should be.

13.3 Essay Questions 1) Identify and describe, using examples, the six key questions managers need to answer in designing the proper organizational structure.

Answer: Suggested answer: - Work specialization—to what degree are tasks subdivided into separate jobs?

- Departmentalization—on what basis will jobs be grouped together?

- Chain of command—to whom do individuals and groups report?

- Span of control—how many individuals can a manager efficiently and effectively direct?

- Centralization and decentralization—–where does decision-making authority lie?

- Formalization—to what degree will rules and regulations direct employees and managers?

(Examples can be drawn from text, class discussion, Internet, newspapers such as Globe and Mail, etc.)

2) Define and describe both the mechanistic and organic models of organizational design.

Answer: Suggested answer: - The mechanistic model is a structure characterized by extensive departmentalization, high formalization, a clear chain of command, narrow spans of control, limited information network, and centralization. It is also marked by little participation for lower-level employees and downward communication.

- The organic model is a structure that is flat; cross-hierarchical and cross-functional teams; has low formalization; possesses a comprehensive information network; involves high participation in decision making. High-tech firms use this since it utilizes collaboration.

3) Using examples, define and describe the advantages and disadvantages of the matrix structure of organizational development.

Answer: Suggested answer: - Definition—dual lines of authority; combines functional and product departmentalization; breaks the unity-of-command concept.

- Advantages—puts together similar specialists and minimizes the number necessary; pooling and sharing of specialized resources; facilitate coordination of a multiplicity of complex and interdependent activities; reduces bureaucracy; achieves favourable economies of scale.

- Disadvantages—can create confusion; can foster power struggles, places stress on individuals; ambiguity can be significantly increased; role conflict; unclear expectations; comfort of predictability is absent(Examples can be drawn from text, class discussion, Internet, newspapers such as Globe and Mail, etc.)

4) Using examples, define and describe the advantages and disadvantages of the boundaryless organization.

Answer: Suggested answer: - Definition—breaks down internal and external boundaries; eliminates vertical and horizontal boundaries.

- Advantages—replaces departments with empowered teams; eliminates chain of command; sets up limitless spans of control; minimizes status and rank; use of cross-hierarchical teams; participative decision making; 360-degree performance appraisals; lateral transfers and rotation of people into and out of different functional areas; specialists turned into generalists; customers perform functions previously done by management; common technological thread can be established to share information simultaneously; offers quicker response time; enhances cooperation across functions, divisions and external groups.

- Disadvantages—difficult to manage; difficult to overcome political and authority boundaries; timeconsuming.(Examples can be drawn from text, class discussion, Internet, newspapers such as Globe and Mail, etc.)

5) List and describe three strategy dimensions of organizations which shape organizational structure.

Answer: 1. Innovation — emphasizes the introduction of major new products and services.

2. Cost-minimization — emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting.

3. Imitation — emphasizes moving into new products and markets but only after their viability has been proven.

6) Explain how a wide or narrow span of control affects employee autonomy.

Answer: Span of control refers to the number of employees who report to a manager. The wider the span of control the more efficient the organization as each manager has many employees to supervise; the organization has fewer managers which is a cost savings, but the employees need to have higher skills and abilities because they likely have greater autonomy. A narrow span of control gives a manager close control — thus the employees have low autonomy.

Indicate whether the statement is true or false.

1. HR can affect the probability of survival of a new venture by as much as 32 percent. a. True b. False 2. Return on investment is a key financial ratio computed by an organization to determine its relative success in

achieving its goals. a. True b. False 3. The costs of turnover include termination, replacement, reduced customer satisfaction, and time for a new

employee to become productive. a. True b. False 4. There are four sources of benchmarking partners: internal, competitive, sector, and external. a. True b. False 5. A balanced scorecard is a measure that can enhance organizational performance by establishing standards

against which processes, products, and performance can be compared and improved a. True b. False 6. HR professionals are resistant to measuring their work because they have limited knowledge of measurement

models and limited skills of measurement ratios. a. True b. False 7. There are three typical measures for efficiency: time, quality, and cost. a. True b. False 8. Corporate scorekeeping allows organizations to make a plan that fits organizational strategy. a. True b. False 9. Many HR departments were originally set up because of the need to comply with employment legislation and

standards. a. True b. False 10. The 5C model of HRM impact includes five areas for evaluating HRM: compliance, client satisfaction,

culture management, cost control, and commitment. a. True b. False 11. The HR profession is like the accounting profession because they both rely on generic measures and

principles.

a. True b. False 12. Direct costs are harder to measure than indirect costs. a. True b. False 13. Organizational survival is the first measure of effectiveness and is considered a “life-or-death” index. a. True b. False 14. Sarbanes-Oxley requirements force HR to provide information about executive compensation, pension

plans, and employee benefits. a. True b. False 15. There are three ways to reduce labour expenses by reducing the size of the labour force: technology,

outsourcing, and mergers. a. True b. False 16. Measuring and benchmarking HR activities will result in the fulfillment of management-by-objectives. a. True b. False 17. HR analytics is an evidence-based approach for making better decisions about employees and HR policies,

using a variety of tools to report HR metrics and to predict outcomes of HR programs. a. True b. False 18. Efficiency is defined as the results achieved compared to resource inputs. a. True b. False 19. Kim has to move to another city. Kim has decided to compare and contrast different moving companies in

terms of their charges and the times that they are available. Kim is conducting an informal utility analysis. a. True b. False 20. The goal of surveying clients is to identify gaps between their expectations and their satisfaction. a. True b. False 21. Benchmarking enhances organizational performance by establishing standards against which processes,

products, and performance can be compared and improved. a. True b. False 22. An audit is a measurement method that assesses progress against plan.

a. True b. False 23. With respect to the HR scorecard, deliverables should be linked to strategy. a. True b. False 24. By focusing on the alignment of HR practices with organizational strategy, a company will achieve greater

performance and fit than by focusing on best practices and benchmarking. a. True b. False 25. Indirect costs are the hard costs that can be measured by expenditures. a. True b. False 26. Most organizations do undertake the evaluation of HRM effectiveness because the problems of measurement

are difficult to resolve. a. True b. False 27. Attitudes in an organizational context can be defined as perceptions or opinions about organizational

characteristics. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

28. What is a problem with measuring client satisfaction? a. low expectations of clients b. conflicting expectations c. use of broad techniques d. use of critical incident methods 29. Why are measures of managerial perceptions necessary when evaluating HRM effectiveness? a. because other measures are time-consuming and meaningless b. because management has a unique, comprehensive perspective c. because management can give rich, qualitative information d. because financial measures are neither available nor appropriate 30. What type of costs can be measured by financial expenditures? a. direct b. indirect c. tangible d. intangible 31. If HRM is effective, it can cause numerous effects on employee behaviour. What is one such effect? a. improving customer satisfaction

b. enhancing employee attrition c. reducing employee shirking d. eliminating high-potentials 32. What is the underlying assumption of the culture management model that is used to determine the

effectiveness of HRM? a. HR professionals are employed 20 to 30 percent of the time to ensure compliance with laws and legislation. b. Organizational effectiveness is directly correlated to the size of the human resources budget. c. HR practices can have a positive influence on employee attitudes, which in turn influence employee performance. d. Highly committed employees will make personal sacrifices for the job and will not leave the organization for personal gain.

33. What are three of the main employee attitudes that are measured in HRM effectiveness surveys? a. motivation, commitment, and work–life balance b. satisfaction, advocacy, and engagement c. empowerment, commitment, and advocacy d. engagement, satisfaction, and motivation 34. What is the perennial problem in measuring the impact of HRM practices? a. separating cause and effect b. finding financial resources c. overcoming the conservative nature of HRM d. attracting individuals with knowledge 35. What is one way that an HR department can reduce expenses associated with employees without reducing

the headcount? a. increase employees’ efficiencies b. eliminate the costs associated with absenteeism c. purchase technology that improves productivity d. initiate a hiring freeze and a wage freeze 36. Why is there interest in measuring HR? a. the need for competitive measurements b. the need to measure human resource productivity c. the need to measure change initiatives d. the need for objective indicators of success to accompany the analysis of HR activities 37. Which of the following is NOT a type of mimicry that organizations use to adopt HR practices? a. outcome-based mimicry b. frequency-based mimicry c. trait-based mimicry d. knowledge-based mimicry 38. Which of the following is NOT an approach to measuring HRM practices?

a. activity-based measures b. costing measures c. client satisfaction d. balanced scorecard 39. Which of the following is NOT related to the Sarbanes-Oxley requirements? a. executive compensation b. pension plans c. employee benefits d. whistleblower protection 40. What organizational costs would be affected by a smoking cessation program? a. pension costs b. vacation costs c. presenteeism costs d. productivity costs 41. What are three ways to reduce labour expenses by reducing the size of the labour force? a. technology, job design, and outsourcing b. technology, outsourcing, and downsizing c. layoffs, downsizing, and restructuring d. outsourcing, layoffs, and downsizing 42. What percentage is typically added to an HR budget in order to regularly evaluate HR practices? a. 5 percent b. 10 percent c. 15 percent d. 20 percent 43. What costs did National Steel track over four years to determine the effectiveness of its safety programs? a. safety incentive payouts and needs assessment costs b. injuries on the job, and safety orientation and training c. cost of accidents and motivation for safe behaviour d. drug and alcohol addiction, and lost-time accidents 44. What is a leading indicator in HRM evaluation? a. an indicator that anticipates management action b. an indicator that predicts or affects the future c. an indicator that explains changes or events d. an indicator that represents current HR trends 45. What are the three stages of a fad’s lifecycle? a. introduction, growth, decline b. ascendency, maturity, decline c. introduction, growth, maturity

d. ascendency, growth, maturity 46. What is considered a zero-sum index when measuring HRM effectiveness? a. growth b. survival c. maturity d. stability 47. In the book titled Retooling HR, author Boudreau stated that HR evolution is challenged by the presence of

too much information. What solution did the author suggest? a. reducing the volume of information b. developing measures to summarize information c. focusing on relevant HR information d. creating frameworks to interpret the information 48. Why do some managers resist the need to measure the effectiveness of their performance? a. because it is impossible to calibrate meaningful measures b. because they know that they are underperforming in their jobs c. because they do not control the information that is produced d. because the time to gather information exceeds the benefits 49. What are two types of evidence that Enbridge Gas Distribution measures to determine overall customer

satisfaction? a. employee turnover and “presenteeism” b. employee commitment and engagement c. employee innovation and advocacy d. employee satisfaction and work–life balance 50. What are some of the necessary costs for human resources accounting? a. training, development, executive salaries, and benefits b. recruiting, selecting, training, and retaining c. technology, outsourcing, selecting, and orientation d. downsizing, training, recruiting, and development 51. What methods are typically used to measure client satisfaction? a. informal feedback and surveys b. Delphi technique and focus groups c. questionnaires and nominal group technique d. critical incident method and breakout groups 52. Which of the following is NOT a hurdle to the development of HR metrics? a. applying HR measures consistently and over time b. gaining acceptance of HR measures by stakeholders c. training managers to believe in the usefulness of HR measures d. identifying HR measures that are grounded in research and theory and are practical

53. What is a typical way of measuring HR activities? a. efficiency measures b. activity-based measures c. productivity measures d. health measures 54. Which of the following is one of the four basic questions used in the balanced HR scorecard? a. How do employees see us? b. Can we continue to remain profitable? c. How do we look to shareholders? d. Which areas need improvement?

55. If an organization wishes to monitor the costs of turnover, which two costs should it measure? a. lost revenue and productivity b. absenteeism and termination c. replacement and training d. learning time and recruitment 56. Which of the following is NOT a measure of efficiency? a. time b. quality c. volume d. cost 57. What is one benefit of benchmarking? a. It motivates employees to take performance to a higher standard. b. It stimulates a subjective review of processes, practices, and systems. c. It provides subjective comparative data with best-in-class organizations. d. It raises questions and stimulates discussion about better ways of strategizing.

58. The number of people interviewed to fill a job is an example of what kind of efficiency measurement? a. time b. labour c. volume d. cost 59. What type of costs can be estimated but not easily measured by financial expenditures? a. direct b. indirect c. tangible d. intangible 60. Typically, what is an organization’s largest controllable cost? a. technological costs b. capital costs

c. labour costs d. benefits costs 61. If an organization measures a decline in employee morale, approximately how long will it take to realize a

drop in customer satisfaction? a. 2 months b. 4 months c. 6 months d. 8 months 62. According to a recent study, what percentage increase in customer satisfaction did Sears stores realize with

every five percent increase in improved employee attitudes? a. 0.8 percent b. 1.3 percent c. 1.8 percent d. 2.3 percent 63. Which of the following is NOT part of the 5C model of HRM impact? a. contribution b. cost control c. compliance d. commitment 64. What are two of the main employee attitudes that are measured in HRM effectiveness surveys? a. initiative and satisfaction b. satisfaction and collaboration c. empowerment and commitment d. engagement and motivation 65. Which of the following is a part of the 5C model of HRM impact? a. change management b. commitment c. compliance d. communication 66. What are two main ways of measuring HR contributions to organizational performance? a. financial measures and managerial perceptions of effectiveness b. organizational efficiency and productivity c. worker productivity and efficiency d. managerial perceptions of effectiveness and worker productivity

67. Briefly describe three methods used to measure client satisfaction.

68. The Society for Human Resource Management identifies nine major reasons why it is important to measure

HRM programs and practices. Briefly state five of these reasons.

69. Identify and briefly describe the 5C model of HRM impact.

70. When evaluating the effectiveness of HRM practices, organizations have the choice of using two

approaches: fit or best practice. Briefly describe the difference between the two approaches.

71. Discuss the three ways HR practices can reduce labour expenses by reducing the size of the labour force.

72. Identify an organization you are familiar with (such as from your work experience or from the course

textbook). Discuss one measure that the organization uses to measure the efficiency of their HR practices.

Provide a concrete example. Ensure you define efficiency.

73. Identify and describe three different approaches to measuring HRM practices.

74. What does added value mean when measuring the impact of HRM practices?

Answer Key 1. False 2. True 3. False 4. False 5. False 6. False 7. False 8. False 9. True 10. False 11. False 12. False 13. True 14. False 15. False 16. False 17. True 18. True 19. True 20. True 21. True 22. True 23. True 24. True 25. False 26. True 27. True

28. b 29. d 30. a 31. c 32. c 33. d 34. a 35. a 36. d 37. d 38. d 39. c 40. d 41. b 42. a 43. a 44. b 45. b 46. b 47. d 48. a 49. a 50. b 51. a 52. c 53. b 54. c 55. a

56. b 57. a 58. c 59. b 60. c 61. c 62. b 63. d 64. d 65. c 66. a 67. 1. Informal Feedback: People can simply be asked if they are satisfied with the service. Informal feedback

has limited use due to the reluctance of people to give negative feedback.

2. Surveys: Surveys can be used to solicit feedback formally, confidentially, anonymously, and with a larger number of stakeholders.

3. Critical Incident Method: Clients are asked to describe a situation in which the HR department provided assistance that was particularly useful. In addition, they are asked to provide an example of when the assistance was not useful.

68. 1. Labour costs are most often a firm’s largest controllable cost.

2. Managers recognize that employees make the difference between success and failure and so good performance can be rewarded objectively.

3. Organizations have legal responsibilities to ensure compliance with laws governing the employer–employee relationship.

4. Evaluations are needed to determine which HR practices are effective (and not fads).

5. Measuring and benchmarking HR activities will result in continuous improvements. Performance gaps can be identified and eliminated.

6. Audits will bring HR closer to the line functions of the organization.

7. Data will be available to support resource allocations.

8. Investors want this information.

9. HR managers are more likely to be welcomed at the boardroom table and to influence strategy if they use measures to demonstrate the contribution of their function.

69. 1, Compliance: HR expertise is needed to ensure that organizational practices comply with laws such as

employment standards, health and safety, employment equity, etc.

2. Client Satisfaction: Many organizations are tracking their success by measuring client satisfaction.

Stakeholders, including internal and external clients, are those people who can influence, or must interact with, the HR department.

3. Culture Management: Organizations seek to influence employee attitudes through the development of an appropriate culture that will support optimum performance. Evaluation methods include attitude surveys of job satisfaction and commitment.

4. Cost Control: Costs of employees consist of pay, benefits, absenteeism, and turnover. Reducing the

workforce and attempting to maintain productivity through technology can reduce labour costs. Other ways to decrease costs are to increase efficiency and reduce behaviours such as absenteeism, turnover, etc.

5. Contribution: HRM practices shape the behaviour of employees in the organization and help the organization achieve its goals. Research has shown that HR practices can affect organizational performance in measurable ways.

70. See Figure 14.2 – Two Approaches: Fit or Best Practice on page 389.

Fit Approach: is an evaluation approach that focuses on the alignment of HR practices with organizational strategy. If they are in good alignment, then there should be corresponding effects seen in the HR outcomes such as employee satisfaction, motivation, productivity, and also the financial criteria such as profitability, added-value for shareholders, growth, etc. It is important also to note that environment scanning is an important first step in the fit approach.

Best Practice: is an evaluation approach that mimics or copies the best practices and benchmarks of other organizations that may or may not be similar to the evaluating organization. From there, these best practices and benchmarks will be factored into the business and HR strategies. Although this is a more generic approach that would be useful if the evaluating organization did not have the expertise to grow its own approach, the relevance to the evaluating organization may not be as useful as the customized fit approach. Using the best practices of one’s competitors might not necessarily support the goals and objectives of the organization.

71. ∙ Technology: One of the most frequently used ways to cut labour costs is to increase the use of technology.

Technology to process benefits claims and pursue e-learning has replaced HR staff, resulting in cost savings of about 30 percent. ∙ Outsourcing: Firms are also outsourcing major activities in order to manage the costs of labour. However, there are detrimental effects of cutting costs in this way. Core talent may be lost and the capacity for innovation diminished. See Chapter 13 for a more detailed discussion of outsourcing. ∙ Downsizing: Chapter 10 provides an analysis of the processes for restructuring.

72. Efficiency is expressed in terms of the results achieved (outputs) in comparison to the resource inputs.

Measures of efficiency include the following: ∙ Time (e.g., average time to fill an opening, process a benefits claim) ∙ Volume (e.g., number of people interviewed to fill a job, number of requests processed per employee) ∙ Cost (e.g., cost per training hour or per test).

Cost: ∙ ratio of compensation expense to total operating expense ∙ benefit cost per employee covered ∙ ratio of benefits expense to total operating expense ∙ processing costs per benefit claim ∙ administration costs per benefit claim ∙ cost per training day ∙ cost per trainee per program Volume: ∙ number of training days ∙ number of interviews per selection ∙ ratio of filled positions to authorized positions ∙ percentage of employees with formal performance evaluations ∙ percentage of designated employees Response Time: ∙ time between requisition and filling of position ∙ time to process benefits

∙ time from identifying a training need to program implementation ∙ time to respond to requests by category 73. 1. Cost–Benefit Analysis: examines the relationship between the costs of the program and its benefits. Direct

costs are those that are used to implement the program, such as the cost of selection tests or training materials.

Indirect costs are those that the organization absorbs, such as the employee’s time away from work to attend training.

2. Utility Analysis: a method of determining the gain or loss that results from different approaches. It calculates, in dollar terms, the costs and probable outcomes of decisions that assist HR managers to make decisions between programs.

3. Benchmarking or Auditing: an audit is a measurement method that assesses progress against a plan.

Benchmarking is an organized method for collecting data that can be used to improve organizational operations, through the comparison with other operations.

74. The following examples help explain the concept of value added:

∙ An activity measure for an HR professional would be the number of people trained. ∙ A performance measure for an HR professional would be the number of trainees who passed the training test or rated the training courses as above average. ∙ An added-value measure for an HR professional would be the increase in profits, sales, or customer satisfaction, or decrease in complaints, errors, or defects, as a result of the skills learned in the training course.

Indicate whether the statement is true or false.

1. Employee productivity is the result of a combination of employees’ abilities, motivation, and work environment, and the technology they have to work with. a. True b. False 2. Employee leasing shifts administrative costs from the company to a professional employer organization. a. True b. False 3. Family-friendly companies may risk alienating those employees who cannot utilize benefits provided. a. True b. False 4. Organizations own their human capital, including investments made in training and development. a. True b. False 5. HR programs and assignments are often the primary method by which knowledge is transferred among employees. a. True b. False 6. Reallocation of resources and assets is most often the reason for failed change management. a. True b. False 7. Women are heavily concentrated in managerial occupations. a. True b. False 8. Employee leasing refers to employing workers in their homes rather than within the traditional office environment. a. True b. False 9. Some companies report that offering family-friendly benefits is so successful there are virtually no drawbacks. a. True b. False 10. Managing diversity means ensuring all employees are treated equally. a. True b. False 11. A recent study suggests that about 55 percent of Canada’s workforce will be impacted by globalization, with knowledge workers and manufacturing jobs taking the brunt of the impact of the competition by lower-wage countries. a. True b. False 12. A human resource information system (HRIS) provides current and accurate data for control and decision making by managers.

a. True b. False 13. Due to increases in education, the gap between the educated and the non-educated is decreasing. a. True b. False 14. Managers in general and HR managers in particular should be concerned with the makeup and expectations of their employees. a. True b. False 15. HR professionals do not need to fully understand the economic and financial matters pertaining to their organization. a. True b. False 16. Currently, the percentage of women in the labour force is 35 percent. a. True b. False 17. One of the roles of HR managers is to act as employee advocates despite their positions as managers. a. True b. False 18. To be successful, organizations should seek to align their processes with customer needs. a. True b. False 19. Because HR managers function in an advisory role, they are responsible for issuing policy revisions and implementing them. a. True b. False 20. The introduction of advanced technology tends to increase the number of jobs that require basic skills. a. True b. False 21. The extent to which organizations are successful in focusing on internal management issues often separates the winners from the losers in today’s competitive world. a. True b. False 22. An HR manager is typically expected to function as an in-house consultant to supervisors, managers, and executives. a. True b. False 23. Because of its importance, HR managers in progressive organizations are frequently assuming sole responsibility for the implementation of information technology. a. True b. False

24. One of the main reasons change efforts fail is that organizations do not create a sense of urgency. a. True b. False 25. To launch a successful reengineering effort, it is important that managers build on existing processes. a. True b. False 26. Rather than simply laying off people in downsizing efforts, companies such as L.L. Bean rely upon voluntary separation programs to provide an incentive for employees to leave on their own accord. a. True b. False 27. Methods of reducing labour costs include downsizing, outsourcing, and employee leasing. a. True b. False 28. One of the responsibilities of HR managers is to provide advice and counsel to line managers. a. True b. False 29. Because of the “dot-com bust,” the initial explosive success of Internet business declined drastically and is still in a moderate decline. a. True b. False 30. The knowledge, skills, and capabilities that impact a company’s performance but do not necessarily show up on its balance sheet are known as human capital. a. True b. False 31. In general, many companies are realizing diminished demand for “touch labour” and an increasing demand for “knowledge workers.” a. True b. False 32. An important hidden cost of layoffs is a loss of institutional memory and trust in management. a. True b. False 33. Employee motivation, teamwork, corporate culture, employee education, performance management, and rewards are the six aspects in the quality improvement program known as “Six Sigma.” a. True b. False 34. Reengineering is a statistical method of translating customer needs into separate tasks and defining the best way to perform each task. a. True b. False 35. Outsourcing is positively related to improving key competencies of the firm.

a. True b. False 36. Most human resources issues have little relevance for line managers. a. True b. False 37. To successfully manage change, organizations, particularly in fast-growing industries, should wait to see how external forces impact performance, and then develop a plan to react to those changes. a. True b. False 38. Organizations known for product and service quality recognize the importance of employees in fostering quality improvements. a. True b. False 39. Labour costs are one of the largest expenditures of any organization. a. True b. False 40. Top management increasingly expects HR managers to reduce their level of involvement in the overall strategy of the organization and concentrate on improving administrative efficiency. a. True b. False 41. An increased reliance on outsourcing is likely to increase the morale and productivity of the employees that remain on the job. a. True b. False 42. Employees today are less likely to define success only in terms of financial gain. a. True b. False 43. It is quite possible that when managers increase costs productivity often rises. a. True b. False 44. Almost all Canadian employers have engaged in some type of downsizing. a. True b. False 45. According to the diagram in the text, courage is an important aspect of being an HR professional. a. True b. False 46. “Six Sigma” refers to the six criteria for the Malcolm Baldrige National Quality Award. a. True b. False

47. Employees and the public at large are demanding that employers demonstrate greater social responsibility. a. True b. False 48. Older workers now are choosing to work longer. a. True b. False 49. In a recent survey, only about two-thirds of companies reported having a formal change management program to support their change initiatives. a. True b. False 50. To achieve sustainable competitive advantage through people, an organization’s employees’ skills, knowledge, and abilities must be widely available in the labour market. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

51. Which of the following is an increasing source of success for organizations? a. the knowledge, skills, and abilities of its top executives b. the knowledge, skills, and abilities of its employees c. the proper management of the knowledge, skills, and abilities of its employees d. the knowledge, skills, and abilities of HR professionals 52. Which statement best reflects the current view on the efficacy of offshoring as a cost reduction measure? a. While organizations can save with this practice, hidden costs, such as productivity loss during the transition, can chew up much of the financial gains. b. The practice of offshoring has been one of the most positive HR trends of the last ten years. c. The continuous shifting of global economies makes offshoring a necessary function for organizations to survive. d. Offshoring only works if top managers begin early in the process to plan their key strategies, such as alternative talent pools and workforce training.

53. Which of the following is one of the largest expenditures of service companies? a. production costs b. marketing costs c. labour costs d. distribution costs Scenario 1.1 Canada Proud is a small food processing company located in northern British Columbia. Recently, it has faced pressures from competitors who have been able to produce similar products more cheaply. The owners of Canada Proud are looking into the possibility of starting a branch of the company in Mexico. Trade agreements among countries around the globe help companies like Canada Proud in becoming globally competitive. However, the company is aware that there may be opposition to such a move, especially if it affects the future viability of its current operations.

54. Refer to Scenario 1.1. Which trade agreement would be applicable in Canada Proud’s case? a. General Agreement on Tariffs and Trade (GATT)

b. North American Free Trade Agreement (NAFTA) c. North American Economic Cooperation (NAEC) d. Canada-Mexico Free Trade Agreement (CMFTA) 55. ABC Corporation wants to contain its costs while allowing it to maintain working relationships with the employees while shifting administrative costs to another firm. What is this practice an example of? a. professional employer organization b. gainsourcing c. employee leasing d. outsourcing 56. Organization C is attempting to manage reactive change within the organization. This organization is radically changing every process through redesigning and rethinking from the ground up. The firm needs a dramatic change in order to survive. What is Organization C implementing? a. Six Sigma b. continuous improvement c. reengineering d. total quality management 57. HRIS systems in some organizations, such as Corning Inc., are changing the way HR processes are designed

and executed. What type of technological effect is this? a. relational b. operational c. transformational d. configurational 58. Why does effective management of human resources provide a firm with competitive advantage? a. because it is financially cheaper to acquire people versus other resources b. because people help to accelerate the use of technology c. because it is difficult to replicate how we manage people in organizations d. because it is easier to manage people versus other resources Scenario 1.2 The leadership at ABS Inc. has been pondering on the use of higher levels and intensity of technology in their operations.

The organization has a close knit group of about 200 employees and a strong organizational culture. It is worried that its employees could become dependent on technology and this would affect the culture. The firm is also worried about the costs to implement the technology and whether the employees can be trained.

59. Refer to Scenario 1.2. While ABS is worried about technology’s effect on its culture, there is another potentially negative effect for some workers. What is it? a. There would be less need for unskilled workers. b. The organization would become more inefficient. c. The image of the firm would be adversely affected. d. There would be pay cuts.

Scenario 1.1 Canada Proud is a small food processing company located in northern British Columbia. Recently, it has faced pressures from competitors who have been able to produce similar products more cheaply. The owners of Canada Proud are looking into the possibility of starting a branch of the company in Mexico. Trade agreements among countries around the globe help companies like Canada Proud in becoming globally competitive. However, the company is aware that there may be opposition to such a move, especially if it affects the future viability of its current operations.

60. Refer to Scenario 1.1. One way to avoid or reduce criticism of potential exploitation of Mexican workers through the use of sweatshops and low wages would be to practise “good citizenship.” What is the term used to describe such “good citizenship”? a. corporate social responsibility b. corporate good citizenship c. organizational citizenship d. corporate philanthropy 61. Which of the following is NOT an approach generally used by organizations to try to lower labour costs? a. employee development b. outsourcing c. employee leasing d. relocating aspects of their operations to countries in the developing world 62. Which type of work would a knowledge worker most likely engage in? a. deciding which type of fertilizer to buy wholesale for a landscaping business b. counting the number of grocery items in carts leaving a wholesale store c. monitoring children on new daycare playground equipment d. installing new ink cartridges in colour photocopiers in an office environment 63. ABC Corporation wants to expand on its markets in its new strategic plan. The plan covers the use of key resources available to the firm, including technology, people, and access to capital. Which of the following would be a critical human capital component of the plan? a. capital investments b. employees’ skills c. new markets d. updated technology 64. Which of the following is a critical demographic-related problem facing Canadian firms? a. an increasingly homogenous population b. retirement of baby boomers c. migration from Ontario d. increasing salaries for employees 65. HRM plays an important role in organizations by balancing the sometimes competing demands of which of the following? a. competitive challenges and employee concerns b. international challenges and employee concerns c. employee concerns and employer challenges d. competitive and employee challenges 66. Which of the following is NOT a key benefit of corporate social responsibility? a. avoiding lawsuits b. improving earnings c. attracting more applicants

d. improving pay for employees 67. Information technology impacts HRM practices in several important ways. Which of the following is one such way? a. Paper waste from employee files is drastically decreased. b. Convenience in general has increased. c. Employee recording of all types is carried out much faster. d. Many HR functions can now be considered “self-serve.”

68. HRIS systems in some organizations help managers to connect with employees and with the HR data they need. What type of technological effect is this? a. relational b. operational c. transformationa l d. configurational 69. Many Canadian firms are shifting some of their work and jobs to overseas locations. What is this business practice called? a. nearshoring b. offshoring c. employee leasing d. downsizing 70. The importance of Six Sigma to HR extends to all of the following EXCEPT which one? a. performance management b. employee benefits c. training d. communication 71. In today’s highly competitive environment, managing organizational change has become which of the following? a. a core competency of the organization b. a product of globalization and technological advancement c. a proactive method of downsizing d. the preferred method of reacting to a decrease in organizational performance Scenario 1.1 Canada Proud is a small food processing company located in northern British Columbia. Recently, it has faced pressures from competitors who have been able to produce similar products more cheaply. The owners of Canada Proud are looking into the possibility of starting a branch of the company in Mexico. Trade agreements among countries around the globe help companies like Canada Proud in becoming globally competitive. However, the company is aware that there may be opposition to such a move, especially if it affects the future viability of its current operations.

72. Refer to Scenario 1.1. How can setting up a branch in Mexico affect the future viability of Canada Proud’s current operations? a. Trade agreements do not allow companies to run exactly the same operations in two countries. b. Public pressure in Canada would force the closure of the current operations. c. The cost advantages in Mexico may lead the company to close its operations in British Columbia. d. The pressure to manage more than one set of operations is always too much for a single company.

73. What is the changing nature of the HR manager’s role increasingly focused on?

a. policy formulation b. international issues c. privacy issues, global management issues, HR planning, and downsizing issues d. basic practices like staffing, but also policy development, employee advocacy, and advice 74. Dave Ulrich, a professor of management, is quoted as saying that, in terms of learning and development: “Learning capability is g times g….” What does this mean? a. an employee’s knowledge, measured as g, multiplied by the employer’s goodwill b. an organization’s goodwill multiplied by its generosity to employees in terms of salaries and benefits c. an organization’s grand image and brand multiplied by its goodwill d. an organization’s ability to generate new ideas multiplied by its adeptness at generalizing them throughout the company 75. Which organization has the BEST chance of implementing a successful change initiative? a. one that has ensured the employees are not overburdened with work relating to the change and have time to focus on their jobs b. one that has been very positive and relaxed throughout, ensuring not to establish a sense of urgency and always reporting positive effects c. one that has ensured good news is shared and the change victory is celebrated as soon as some indicators appear positive d. one that has ensured the changes are aligned with the organizational culture in important ways 76. Which of the following groups is responsible for building an organization’s skilled and motivated workforce? a. HR managers b. line managers and supervisors c. department managers d. HR and line managers 77. Which statement best describes the relationship among gender, education, and pay? a. Women generally earn less than men do; however, when they have an advanced degree they earn the same amount as men. b. Men and women generally earn the same amount except when neither group has any higher education. c. Women consistently and in every category earn less than men with an equivalent amount of education. d. Men with a university degree earn approximately the same as women with an advanced degree.

Scenario 1.2 The leadership at ABS Inc. has been pondering on the use of higher levels and intensity of technology in their operations.

The organization has a close knit group of about 200 employees and a strong organizational culture. It is worried that its employees could become dependent on technology and this would affect the culture. The firm is also worried about the costs to implement the technology and whether the employees can be trained.

78. Refer to Scenario 1.2. What is a key advantage for ABS Inc. if they install better HRIS systems? a. They will outperform all competitors. b. HR personnel can concentrate on strategic issues versus routine. c. Employees will be better paid. d. Application rates will increase.

79. Which of the following trends is causing a major organizational concern that the expertise of employees will be rapidly drained from their companies?

a. Generation nexus is thus far not demonstrating a dedication to training and education. b. There is an increase of uneducated women entering the workforce. c. Recruitment of lower-skilled immigrant workers is increasing. d. Large proportions of some workforces are nearing retirement.

80. Which of the following is an example of corporate social responsibility? a. providing career counselling to outsourced employees to increase their ability to find work b. installing noise-reduction baffling in plants to decrease anticipated community complaints c. sharing knowledge freely throughout the organization to improve employee efficiency and workflow d. providing speed-reading courses for front-line staff to improve their abilities in absorbing new information 81. What was the first major trade agreement of the twentieth century to establish rules and guidelines for global

commerce? a. NAFTA (North American Free Trade Agreement) b. GATT (General Agreement on Tariffs and Trade) c. FTAA (Free Trade Area of the Americas) d. APEC (Asia Pacific Economic Cooperation) 82. Organization A is attempting to foster proactive change within the firm. This organization is forming teams and extending its processes to include training, performance management, communication, culture, and even rewards. The organization hopes to improve its ability to catch mistakes before they happen. What is Organization A implementing? a. Six Sigma b. continuous improvement c. reengineering d. total quality management 83. ABC Bank is experiencing rapid retirement of baby boomers. The bank needs to retain its employment levels because of the volume of work, and it does not want to increase the workload of its employees. Which of the following is a good strategy for the bank to pursue to address this situation? a. Do nothing as the situation will rectify itself. b. Offer higher compensation packages to attract qualified candidates. c. Downsize the firm to save on labour costs. d. Increase production efforts so as to gain more revenue.

84. What are the competencies of the human resources manager? a. business mastery, HR mastery, and executive mastery b. business mastery, HR mastery, and personal credibility c. business mastery, HR mastery, personal credibility, and change mastery d. change mastery, personal credibility, union mastery, and HR mastery 85. Which of the following best captures the list of modern social issues in HRM? a. changing work structures, attitudes toward work and family, and increasing labour costs b. changing demographics, employer/employee rights, and attitudes toward work and family c. changing demographics, increasing labour costs, and global economic pressures d. corporate social responsibility, organizational citizenship behaviour, and changing work structures 86. In an effort to prevent downsizing its employees, ABC Inc. has asked its staff to accept reduced pay. What strategy is ABC Inc. using?

a. furloughing b. employee leasing c. reduced downsizing d. outsourcing 87. In an effort to take advantage of a market opportunity, Apple created the iPhone in open-source format so that anyone can develop and sell an iPhone application. What is this an example of? a. proactive change b. reactive change c. managing change d. transformational change 88. Company A has decided to hire someone outside the company to perform tasks that could be done internally. What is this practice called? a. contracting b. outplacement c. employee leasing d. outsourcing 89. XYZ Inc., a new manufacturing company, wants to build its human capital base. Which of the following staffing programs should it rely upon? a. identifying and hiring cheap sources of qualified labour in order to fill front-line positions quickly b. identifying and hiring individuals with highly specialized skills who can train others in the organization c. identifying college graduates with the requisite skills who can be promoted to management positions quickly d. identifying and hiring the best and brightest individuals Scenario 1.1 Canada Proud is a small food processing company located in northern British Columbia. Recently, it has faced pressures from competitors who have been able to produce similar products more cheaply. The owners of Canada Proud are looking into the possibility of starting a branch of the company in Mexico. Trade agreements among countries around the globe help companies like Canada Proud in becoming globally competitive. However, the company is aware that there may be opposition to such a move, especially if it affects the future viability of its current operations.

90. Refer to Scenario 1.1. What would be a big challenge for Canada Proud’s HRM professionals if the company decides to open a division in Mexico? a. convincing the Canadian government that it would be better to do business in Mexico b. acquiring the physical facilities in Mexico c. laying off workers in its current operations d. hiring employees in Mexico with the relevant skills 91. Employee productivity is directly driven by three key factors. Which of the following is NOT one of these factors? a. low labour costs b. employees’ abilities c. employee motivation d. the work environment 92. What is the Canadian workforce expected to exhibit by 2031?

a. It is expected to exhibit about the same demographic mix as it does today. b. It is expected to exhibit a decrease in ethnic diversity. c. It is expected to exhibit an increase in ethnic diversity. d. It is expected to exhibit a decrease in retirements.

93. Which of the following is a major strength of employee leasing? a. Employee leasing shifts employment costs to the PEO. b. With employee leasing, the PEO allows organizations to increase their productivity. c. Employee leasing allows organizations to offer better job security through the strength of the PEO. d. With employee leasing, the PEO can manage employee issues.

94. What are millennials also known as? a. Generation A b. Generation B c. Generation X d. Generation Y 95. Approximately what percentage of the Canadian economy is affected by global competition? a. 70-85% b. 60-75% c. 50-65% d. 40-55% 96. Many prospective employees are interested in obtaining a job where they can learn new skills and improve existing skills. What type of organization would be the most attractive to such candidates? a. an organization that provides many formal training programs that are not easily transferable to other organizations b. an organization that provides many formal training programs that are very easily transferred to any job the applicant might want to apply for later in his or her career c. an organization that provides mentorship programs where employees attempt challenging situations under the guidance of experienced senior staffers d. an organization that provides “grow and learn” sessions where classroom sessions are backed up by on-the-job training 97. Which of the following is a key motivator for offshoring? a. increased productivity b. better just-in-time operations c. better access to technology d. lowered labour costs 98. Which of the following best summarizes the competency model for HR professionals? a. HR professionals require change mastery, HR mastery, personal credibility, and business mastery. b. HR professionals require HR mastery, business mastery, global acumen, and change mastery. c. HR professionals require IT mastery, HR mastery, business mastery, and ethics. d. HR professionals require IT mastery, HR mastery, global acumen, and change mastery.

Scenario 1.1 Canada Proud is a small food processing company located in northern British Columbia. Recently, it has faced pressures from competitors who have been able to produce similar products more cheaply. The owners of Canada Proud are looking

into the possibility of starting a branch of the company in Mexico. Trade agreements among countries around the globe help companies like Canada Proud in becoming globally competitive. However, the company is aware that there may be opposition to such a move, especially if it affects the future viability of its current operations.

99. Refer to Scenario 1.1. How can locating a new division in Mexico help the company become more competitive? a. It can reduce labour costs. b. It will help the image of the company. c. It will help the company become larger and better able to challenge competitors. d. It will ensure access to Latin American markets for its products.

100. Which of the following is a key responsibility of the human resources manager? a. ensuring the credit rating of the organization b. balancing the organization’s accounts c. policy formulation and implementation d. securing new markets 101. XYZ Inc. decided to lay off a relatively large proportion of their employees due to poorer-than-anticipated financial performance. What is this an example of? a. proactive change b. transformational change c. transitional change d. reactive change 102. Which of the following is a key benefit for organizations when they rehire retirees? a. lower health care costs b. better strategic planning c. improved group performance d. lower turnover

103. What implications do the anticipated changes in demographics have for the management of human resources?

104. What are the six competitive challenges facing human resources management departments?

Answer Key 1. True 2. True 3. True 4. False 5. True 6. False 7. False 8. False 9. False 10. False 11. False 12. True 13. False 14. True 15. False 16. False 17. True 18. True 19. False 20. False 21. False 22. True 23. False 24. True 25. False 26. True 27. True

28. True 29. False 30. True 31. True 32. True 33. False 34. False 35. True 36. False 37. False 38. True 39. True 40. False 41. False 42. True 43. False 44. False 45. True 46. False 47. True 48. True 49. True 50. False 51. b 52. a 53. c 54. b 55. c

56. c 57. c 58. c 59. a 60. a 61. a 62. a 63. b 64. b 65. a 66. d 67. d 68. a 69. b 70. b 71. a 72. c 73. d 74. d 75. d 76. d 77. c 78. b 79. d 80. b 81. b 82. a 83. b

84. c 85. b 86. a 87. a 88. d 89. d 90. d 91. a 92. c 93. a 94. d 95. a 96. c 97. d 98. a 99. a 100. c 101. d 102. d 103. Demographically, the labour force is expected to age (with the aging of the baby boomers), creating a larger number of older workers and a shrinking pool of young workers. HRM implications for aging workers include (1) increases in the competition for entry-level workers; (2) increased costs of compensation, health care, and retirement benefits; (3) career plateau and related motivational concerns; and (4) training techniques that help senior workers “unlearn” old behaviours while acquiring new ones.

Diversity in the workplace will continue, with a higher proportion of women and minorities in the workforce. HRM efforts that will be required to accommodate the needs of these workers include (1) flexible schedules, parental leave, and daycare options for dual-career families; and (2) training for supervisors in the management of a diverse workforce.

Educational levels are expected to rise, but functional and technological illiteracy will continue to be a problem for employers. HR managers will need to plan training programs to assist employees in attaining basic and developmental skills and overcoming these deficiencies.

Managing diversity involves managing employees as individuals while maintaining awareness of characteristics common to all employees.

104. The six competitive challenges facing human resources departments are (1) globalization, (2) embracing new

technology, (3) managing change, (4) developing human capital, (5) responding to the market, and (6) containing costs.

(1) First, in order to grow and prosper, many companies are seeking business opportunities in global markets. HR issues underlie concerns related to managing diverse cultures, geographies, laws, and business practices.

(2) Second, the introduction of advanced technology has created a shift from touch labour to knowledge workers, impacting the way in which workers are managed. In addition, technology has altered the methods of collecting employment information, speeding up the processing of that data, and improving the process of internal and external communication.

(3) Third, to become faster and more adaptable, many organizations are seeking ways to manage change. Programs such as TQM, downsizing, reengineering, outsourcing, and the like are examples of changes that organizations are making to modify the way they operate to be more successful. Each of these change efforts depends heavily on the adjustment of HR practices to facilitate and manage evolving issues related to an organization’s workforce.

(4) Fourth, organizational success is increasingly recognized as resting upon a firm’s ability to manage human capital. HR practices are the fundamental tools by which organizations build, enhance, and maintain their stock of human capital.

(5) Fifth, meeting the demands of the market is an important criterion for organizational success. Management innovations such as TQM and reengineering represent two prominent approaches to responding to customer demands.

(6) Finally, containing costs, especially labour costs, is an important component of organizational success. As a result, many firms have engaged in initiatives such as downsizing, outsourcing, and employee leasing as a means to realize greater cost controls. Each of these practices has significant implications for HR practices. For example, during a downsizing initiative, HR has an obligation to help maintain a healthy relationship between a company and its employees through services such as outplacement.

Indicate whether the statement is true or false.

1. SWOT analysis includes the strengths only for strategy formulation purposes. a. True b. False 2. Markov analysis focuses on the number of employees in particular jobs and their skill levels, compensation, and job tenure. a. True b. False 3. Attrition is the fastest way to achieve workforce reduction. a. True b. False 4. Attrition and early retirement are means for organizations to reduce excess labour. a. True b. False 5. External supply of labour is central to strategic planning. a. True b. False 6. In unionized firms, layoffs are typically based on performance. a. True

b. False 7. Replacement charts are listings of current jobholders who are potential replacements if an opening occurs. a. True b. False 8. A cultural audit asks questions such as “How do employees spend their time?” a. True b. False 9. The mission statement of an organization is a description of the organization’s vision and values. a. True b. False 10. Severance pay is a lump-sum payment given to terminated employees. a. True b. False 11. Over time, organizations may try to reduce their workforce by relying on attrition. a. True b. False 12. Benchmarking is the process of comparing the organization’s processes and practices with those of other companies. a. True b. False 13. Trend analysis is a qualitative approach to labour demand forecasting. a. True b. False 14. Nearly one-fifth of the workforce is made up of part-time, temporary, and self-employed workers. a. True b. False 15. HR planning is the process of setting major organizational objectives and developing comprehensive plans to achieve those objectives. a. True b. False 16. The use of part-time employees creates a problem of labour costs at fast-food restaurants. a. True b. False 17. Succession planning is the process of identifying, developing, and tracking key individuals so that they may eventually assume top-level positions. a. True b. False 18. Staffing tables provide data on external labour supply sources. a. True

b. False 19. Environmental scanning involves the systematic monitoring of internal factors influencing the organization. a. True b. False 20. Core capabilities are integrated skills and knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. a. True b. False 21. Strategic plans have a strong external orientation that covers major portions of the organization, focusing mainly on how the organization will position itself globally. a. True b. False 22. Trend analysis relies on a single business factor. a. True b. False 23. Core capabilities provide a long-term basis for technological innovation, product development, and service delivery. a. True b. False 24. Forecasting may be as informal as having one person familiar with the organization anticipate HR needs. a. True b. False 25. National and regional unemployment rates are often considered a general barometer of labour supply. a. True b. False 26. Organizational core values are the strong enduring beliefs and principles that a company uses as a foundation for its decisions. a. True b. False 27. The stages of HR activity associated with a merger are (1) precombination, (2) combination, and (3) solidification and assessment. a. True b. False 28. In general, contract labour possesses skills and knowledge of less strategic value to the organization than core knowledge workers. a. True b. False 29. A cultural audit asks questions such as “What is the ethnic make-up of my workforce?” a. True b. False

30. Management forecasts are quantitative measurements of future employment needs. a. True b. False 31. Human resources planning (HRP) is the conducting of recruitment and selection methods according to a strategic plan. a. True b. False 32. The number of hours that Canadians work per week has been trending downward and now hovers around 33 hours a week. a. True b. False 33. A cultural audit may examine how people are empowered. a. True b. False 34. The Delphi technique works best in organizations where dynamic technological changes affect staffing levels. a. True b. False 35. Decisions about employee layoffs are usually based on seniority and/or performance. a. True b. False 36. Under the umbrella of layoff strategies are several work reduction options: reduced workweek, reduced shifts, transfers to related companies, and so on. a. True b. False 37. Increased emphasis on HR issues becomes especially critical when organizations consider global strategies, relocation of plants, product innovation plans, and so forth. a. True b. False 38. Human Resources and Skills Development Canada (HRSDC) analyzes labour markets to determine the supply and demand for labour. a. True b. False 39. Markov analysis is a systematic monitoring of the major external forces influencing an organization. a. True b. False 40. There are two approaches to HR forecasting: quantitative and qualitative. a. True b. False 41. Internal analysis provides strategic decision makers with an inventory of organizational skills and resources. a. True

b. False 42. Internal fit (or alignment) means that HR practices are aligned with one another in a mutually reinforcing configuration. a. True b. False 43. Through human resources planning, organizations strive for a proper balance between demand considerations and supply considerations. a. True b. False 44. Organizations such as Canadian Tire and CIBC conduct cultural audits to examine the attitudes and activities of the external workforce. a. True b. False 45. Economic factors in environmental scanning include general and global conditions. a. True b. False 46. Human resources planning plays a key role in organizational strategy implementation because organizational leaders must make decisions regarding resource allocations to human capital, among other things. a. True b. False 47. A disadvantage of overemphasizing seniority is that less competent employees receive the same rewards and security as more competent employees. a. True b. False 48. Value creation is what the firm adds to a product or service by virtue of making it; it’s the amount of benefits provided by the product or service once the costs of making it are subtracted. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

49. Severance pay is usually calculated based on which of the following? a. the employee’s years of service and salary b. complex formulas administered by the federal government c. the employee’s skills and abilities d. the employee’s education and performance 50. In what way can HR best help ensure that a strategic alliance or joint venture goes smoothly in the beginning? a. plan labour supply needs for both organizations b. systematically monitor employee morale for both organizations c. teach employees about the other organization d. assess the compatibility of the two organizational cultures

51. Which of the following best captures the strategic intent of the organization? a. its mission b. its vision c. its core values d. its strategic human resource plan 52. Smith Frozen Foods performs a yearly employee survey to assess how its employees feel about safety on the job, the comfort of the working conditions, and their general level of satisfaction with their work, managers, and coworkers. What is Smith Frozen Foods most likely performing? a. a job satisfaction survey b. an environmental analysis c. a cultural audit d. an engagement measure 53. As part of the strategic planning process, XYZ Inc. recently examined the attitudes and activities of the company’s workforce. What was XYZ doing? a. an environmental scan b. a cultural audit c. a trend analysis d. a demand forecast 54. Which term refers to an enthusiastically adopted tool for mapping a firm’s strategy in order to ensure strategic alignment? a. target forecasting b. predicted focus c. balanced scorecard d. replacement selection 55. Kappa Technology is a firm in the high-technology sector. It needs to hire individuals with very specific knowledge and abilities, and it needs to do so quickly. Which aspect of employee forecasting will be most important for this company? a. skills inventories b. staffing tables c. Markov analysis d. succession planning 56. An organization states that teamwork and working together are important in its strategy but gives bonuses to individuals who excel independently. What is this an example of? a. a misalignment of internal fit b. a misalignment of external fit c. a misalignment of internal and external strategy d. a misalignment of strategy and HR 57. Which of the following is a method for measuring a firm’s strategic alignment? a. Markov analysis b. a balanced scorecard c. benchmarking

d. an HR “dashboard” 58. An organizations’ core capabilities consist of three components. Which of the following is NOT one of them? a. processes b. systems c. people d. cultural audit 59. What is an HR “dashboard”? a. a strategic tool developed by the Boston Consulting Group b. a SWOT analysis at the HR level c. a balanced scorecard d. a software that tracks and graphically displays HR statistics so they can be viewed by managers at a glance 60. HR planning requires HR managers to focus more on an alignment between HR plans and which of the following? a. the organization’s financial strategy b. the organization’s marketing position c. the organization’s strategic plan d. the competitive environment 61. What do we call the internal alignment of HR practices to establish a configuration that is mutually enforcing? a. vertical fit b. horizontal fit c. HR alignment d. enforcing fit Scenario 2.1 Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and Rogers On Demand, Blockbuster struggled to stay relevant in a tech-savvy environment where videos and games could now be rented conveniently from the comfort of one’s couch via computer or TV. Despite efforts to try to stay relevant, Blockbuster did not leverage technology that had become an important part of their consumer base’s daily lives. As a result, Blockbuster was not able to fight off the competition.

62. Refer to Scenario 2.1. To remain competitive, Blockbuster Canada needed to systematically monitor the major external forces influencing the movie/game rental business. Which of the following would be important to its success? a. analysis of the internal environment b. environmental scanning c. changes in demographics d. changes in its mission, vision, and values 63. Which of the following best describes the core values of a company? a. They represent the alignment of the strategic plan with the human resource plan. b. They are strong enduring beliefs and principles of the company. c. They are the basic purpose of the organization. d. They provide a perspective on where the company is headed.

64. ATM Company has experienced a recent growth in its business. Which of the following is NOT a likely response to its new HR demands? a. Hire full-time employees b. Ask employees to work over-time c. Allow for attrition d. Use contract workers 65. What is the difference between trend analysis and management forecasts? a. Trend analysis is used to analyze the business environment and management forecasts predict labour needs. b. Trend analysis uses organizational indexes and management forecasts utilize statistical techniques. c. Trend analysis is quantitative and management forecasts are qualitative. d. Trend analysis has proven success and management forecasts have major shortcomings.

66. Organization Z is planning its future. In the process, the firm is making decisions such as what type of market it wants to be the leader in and what path to take to achieve this goal. What is Organization Z doing? a. strategic planning b. human resources planning c. performing a Markov analysis d. applying principles of strategic human resources management 67. Manning Logistics laid off nine employees from data-entry positions in its finance division. Two weeks later, it hired 15 employees into data-entry positions in the inventory division. What mistake has the company committed? a. faulty cultural audit b. not forecasting properly c. faulty goal alignment d. not analyzing the internal labour force 68. On the entrance to Mac Pencils’ factory are the words “to provide the world with high-quality and dependable pencils.” What is this an example of? a. strategic vision b. mission c. core values d. core resources 69. Which of the following is an important use of the balanced scorecard? a. to help balance internal and external fit b. to help managers translate their firms’ strategic goals into operational objectives c. to help managers balance the costs and benefits of HR strategies d. to help with the SWOY analysis 70. Which of the following is a graphical representation of all organizational jobs along with the numbers of employees currently occupying those jobs and future employment requirements? a. a Markov analysis b. a trend analysis c. a skills inventory d. a staffing table

71. What is the first step in the strategic planning process? a. putting together the human resource management team b. executing the human resource plan c. establishing the mission, vision, and values of the organization d. aligning the human resource plan and the strategic plan 72. As part of the SWOT analysis, the internal analyses of the firm would include an analysis of which of the following? a. opportunities b. strategy c. threats d. weaknesses 73. What is the most important information obtained from a Markov analysis? a. human capital readiness b. what types of attitudes employees have c. what positions are going to be coming open and will require a new hire d. how many individuals are ready for promotion 74. Which of the following is NOT a qualitative approach to demand forecasting? a. trend analysis b. Delphi technique c. soliciting expert opinion d. management forecast Scenario 2.1 Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and Rogers On Demand, Blockbuster struggled to stay relevant in a tech-savvy environment where videos and games could now be rented conveniently from the comfort of one’s couch via computer or TV. Despite efforts to try to stay relevant, Blockbuster did not leverage technology that had become an important part of their consumer base’s daily lives. As a result, Blockbuster was not able to fight off the competition.

75. Refer to Scenario 2.1. Blockbuster’s competitive environment includes which of the following? a. its customers, HR strategy, new entrants, core capabilities b. its environmental scanning and analysis c. its environmental analysis, strategic planning, and HR strategy d. its customers, rival firms, new entrants, substitutes, and suppliers 76. Which of the following deliberations on the competitive environment generally involves an active role by HR managers? a. an analysis of new entrants b. an analysis of the supply and demand for labour c. coordination with suppliers d. minimizing the technical advantages of rival firms 77. During its strategic retreat, the top management team at IAMME Gold Corporation pondered on the question “What’s

the organization reason for being?” What was the team most likely focusing on? a. the firm’s strategic vision b. the firm’s core values c. the firm’s mission d. the firm’s competitive position 78. Which of the following should you take into account when forecasting demand? a. absenteeism b. turnover c. business cycles d. labour mobility 79. Which of the following is NOT generally considered a component of a firm’s competitive environment? a. rival firms b. new entrants c. labour laws d. suppliers 80. Which statement best describes the skills of core employees? a. Their skills are not directly related to company strategy. b. They have firm-specific skills directly related to company strategy. c. They have skills that are valuable but not unique. d. Their skills are available to all firms.

81. Which of the following best describes forecasting human resources needs? a. It is scientific and relatively error-free. b. It is difficult and should only be done on rare occasions. c. It should rely strictly on quantitative approaches, which utilize sophisticated analytical models. d. It estimates the number and type of people that are needed to meet organizational objectives.

Scenario 2.2 Avie Products Inc. is planning to add a third shift to its production schedule. It currently has 450 workers involved in all aspects of its fertilizer business, best done in Canada. A recent surge in demand from its global customers is driving the need for more workers; however, Simi Meher, the CEO, is concerned that the surge may be temporary, especially in light of the recent economic downturns in the global environment where Avie does business.

82. Refer to Scenario 2.2. What would assist Avie in determining how many additional workers it would need for the third shift? a. reconciling supply and demand b. Markov analysis c. replacement charting d. trend analysis 83. Kramer Athletic Equipment is planning the future of the organization. In this process, the firm is making decisions such as whether to maintain its current path as industry leader in the running shoe business, or branch out to include casual footwear. In addition, the company is also discussing the various needs it will have for new staff if it does choose to go in a new direction. What is Kramer Athletic Equipment doing? a. strategic planning

b. human resources planning c. applying principles of strategic human resources management d. planning both its business needs and its HR needs 84. What do we consider the firm’s resources to be when they improve the efficiency or effectiveness of the company? a. difficult to imitate b. valuable c. organized d. rare 85. From an organization’s perspective, what is an important shortcoming of having to rely on part-time employees? a. limited benefits b. costs of continuous replacement c. lack of training d. no job security 86. Vindal Fabrics has determined that its organizational strength is being an industry leader in producing upholstery fabrics for automobiles. The company believes its weakness is its performance in Southeast Asia. It has also determined that it is missing an opportunity by not yet branching into upholstery for public transit seats. In order to complete a SWOT analysis, does Vindal Fabrics need to do next? a. It needs to see that its major threat is the economic downturn of the auto industry. b. Its HR department needs to address the company’s major weakness. c. It needs to perform a revenue analysis in order to see what chances it can take. d. Its HR department needs to address the company’s missed opportunity.

87. Which of the following is the process of identifying, developing, and tracking key individuals so that they may eventually assume top-level positions? a. target forecasting b. predicted change c. succession planning d. replacement selection Scenario 2.2 Avie Products Inc. is planning to add a third shift to its production schedule. It currently has 450 workers involved in all aspects of its fertilizer business, best done in Canada. A recent surge in demand from its global customers is driving the need for more workers; however, Simi Meher, the CEO, is concerned that the surge may be temporary, especially in light of the recent economic downturns in the global environment where Avie does business.

88. Refer to Scenario 2.2. Which approach could Avie use to forecast demand for its products? a. staffing tables b. Markov analysis c. skill inventories d. trend analysis 89. Which statement best describes strategic knowledge workers? a. They have skills that are valuable but not unique. b. They have firm-specific skills directly related to company strategy.

c. They have unique skills directly linked to the company’s strategy. d. As consultants, they have strategic skills.

Scenario 2.2 Avie Products Inc. is planning to add a third shift to its production schedule. It currently has 450 workers involved in all aspects of its fertilizer business, best done in Canada. A recent surge in demand from its global customers is driving the need for more workers; however, Simi Meher, the CEO, is concerned that the surge may be temporary, especially in light of the recent economic downturns in the global environment where Avie does business.

90. Refer to Scenario 2.2. What is the best strategy for Avie to follow with respect to workers on the third shift? a. hire full-time employees to get their commitment b. hire part-time staff c. get management to do the extra work d. outsource the work to India 91. What is values-based hiring? a. hiring employees whose values correspond to their corporate cultures b. hiring employees based on good ethical values c. hiring decisions that lead to new values being adopted by the company d. hiring executives who then instill their values in the company 92. As part of its strategic planning process, TJX Corporation is involved in a systematic, regular monitoring of major external forces influencing the organization. What is this process called? a. external forecasting b. human resource planning c. Markov analysis d. environmental scanning 93. What do we call integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers? a. core capabilities b. competitive advantage c. human capital d. organizational competencies 94. Organization Y is a unionized textiles manufacturing company that is downsizing. What will Organization Y most likely use when deciding whom to lay off first? a. seniority b. the payroll c. what skills and abilities the company needs to thrive d. talent 95. XYZ Corporation wants to track the percentage and actual number of employees who remain in each of the firm’s job from one year to the next. Which of the following would XYZ Corporation benefit from? a. a replacement chart b. a skills inventory

c. a Markov analysis d. a succession plan Scenario 2.1 Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and Rogers On Demand, Blockbuster struggled to stay relevant in a tech-savvy environment where videos and games could now be rented conveniently from the comfort of one’s couch via computer or TV. Despite efforts to try to stay relevant, Blockbuster did not leverage technology that had become an important part of their consumer base’s daily lives. As a result, Blockbuster was not able to fight off the competition.

96. Refer to Scenario 2.1. What is one of the most important assessments a firm like Blockbuster could have made in order to stay relevant? a. identifying the needs of its customers b. identifying the needs of its producers c. identifying the needs of its employees d. teaming up with the competition 97. Refer to Scenario 2.1. Blockbuster Canada managers could have successfully advanced the company and remained relevant by focusing on which of the following? a. an environmental analysis b. what they do best, traditional rentals c. technological changes including information technology and innovations d. incentives to keep consumers coming back 98. Eldorado Electronics wants to move from the stagnant calculator industry into the smart phone industry. To do so, however, it would have to make significant changes to its approach to product development in order to gain an edge in this competitive industry. What is the smartest next step for Eldorado Electronics? a. It should consider how its strategic plans will affect its HR needs. b. It should engage in human resources planning. c. It should apply principles of strategic human resources management. d. It should consider how its strategic plans will affect HR needs and also how its current HR status will affect its strategic plans.

99. What do we call reducing the workforce through the departure of employees who resign or retire? a. attrition b. contraction c. contracting out d. termination 100. Which of the following is a cooperative strategy pursued by firms? a. joint ventures b. mergers c. acquisitions d. diversificatio n Scenario 2.2 Avie Products Inc. is planning to add a third shift to its production schedule. It currently has 450 workers involved in all

aspects of its fertilizer business, best done in Canada. A recent surge in demand from its global customers is driving the need for more workers; however, Simi Meher, the CEO, is concerned that the surge may be temporary, especially in light of the recent economic downturns in the global environment where Avie does business.

101. Refer to Scenario 2.2. Assume that Avie goes ahead with the third shift. What can the company use to evaluate the effectiveness of this strategy in a year’s time? a. Markov analysis b. trend analysis c. skill inventories d. benchmarking Scenario 2.1 Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and Rogers On Demand, Blockbuster struggled to stay relevant in a tech-savvy environment where videos and games could now be rented conveniently from the comfort of one’s couch via computer or TV. Despite efforts to try to stay relevant, Blockbuster did not leverage technology that had become an important part of their consumer base’s daily lives. As a result, Blockbuster was not able to fight off the competition.

102. Refer to Scenario 2.1. For years, Blockbuster survived as a successful entity with various competitors until Netflix and Rogers On Demand began making movies and games available online. Which of the following most likely contributed to Blockbuster going out of business? a. economic, global, political, and environmental factors b. technological, psychological, and physical factors c. technological changes, social concerns, and demographic and labour market trends d. the lack of knowledge workers

103. What are the advantages and disadvantages of using attrition as a downsizing strategy?

104. Describe how human resources planning is integrated with strategic planning.

105. Identify and briefly describe three strategies that managers frequently use to cope with a labour shortage.

106. Describe the three key elements of the HRP model.

Answer Key 1. False 2. False 3. False 4. True 5. False 6. False 7. True 8. True 9. False 10. True 11. False 12. True 13. False 14. True 15. False 16. False 17. True 18. False 19. False 20. True 21. False 22. True 23. True 24. True 25. True 26. True 27. True

28. True 29. False 30. False 31. False 32. True 33. True 34. True 35. True 36. True 37. True 38. True 39. False 40. True 41. True 42. True 43. True 44. False 45. True 46. True 47. True 48. True 49. a 50. d 51. b 52. c 53. b 54. c 55. a

56. a 57. b 58. d 59. d 60. c 61. b 62. b 63. b 64. c 65. c 66. a 67. b 68. b 69. b 70. d 71. c 72. d 73. c 74. a 75. d 76. b 77. c 78. c 79. c 80. c 81. d 82. a 83. c

84. b 85. b 86. a 87. c 88. d 89. c 90. b 91. a 92. d 93. a 94. a 95. c 96. a 97. c 98. d 99. a 100. a 101. d 102. c 103. The primary advantage of using attrition (combined with a hiring freeze) is the ability to control and predict compensation expenses that go beyond the salaries and benefits redeemed from departing employees. When the organization does not replace departing employees, the reduction in recruitment, orientation and training, office space costs, and so forth, can result in substantial savings.

However, the disadvantages of attrition are significant. Current employees may be overburdened with the work of departing employees; their skills may not match the skill sets of the departed workers; and no new skills or ideas are infiltrating the organization. In addition, the organization is unable to control who leaves and who stays, which may result in valuable employees leaving, while less needed ones remain. Attrition also poses the disadvantage of taking a long time, compared to processes that can be accomplished rapidly, such as layoffs.

104. Through strategic planning, organizations set major objectives and develop plans to achieve those objectives. HRP provides a set of inputs that determine what is or is likely to be possible, given the number of available people, training needs, and other people-related issues. HR strategies and action plans are developed according to the overall strategic goals that evolve from the strategy formulation process. During the strategy implementation phase, HRP must make resource allocation decisions, and implement policy, practices, and training that support the decisions and outcomes of the strategic planning process.

105. (1) Overtime (i.e., asking employees to work extra hours) is a strategy used by most firms during peak periods. (2) Increasingly, organizations are using part-time employees to increase flexibility in scheduling and reducing payroll costs.

Many organizations use part-time or contract employees to cover the absences of regular, full-time employees. (3) In addition, nine out of ten Canadian companies—both large and small—make some use of temporary employees. “Temps” are typically used for short-term assignments, vacation fill-ins, for peak work periods, or to cover for employees taking sick leave, pregnancy leave, and so forth.

106. The three key elements in the HR planning process are (1) forecasting demand, (2) forecasting supply, and (3) balancing supply and demand considerations.

Forecasting demand involves estimating in advance the number and type of people needed to meet organizational objectives. It may involve a quantitative approach using statistical analysis and mathematical models or a qualitative approach focusing on employee performance and promotability.

Forecasting supply determines if there are sufficient numbers and types of employees available to staff anticipated openings. Sources of supply can be external or internal.

HR planning should strive for a proper balance between the emphasis placed on demand considerations and that placed on supply considerations. Demand considerations are based on the forecast of trends in business activity. Supply considerations involve the determination of where and how candidates with the required qualifications are to be found to fill vacancies.

Indicate whether the statement is true or false.

1. The Charter of Rights and Freedoms guarantees the right to bargain collectively and to strike. a. True b. False 2. The Employment Equity Act of 1995 only affects employers under federal jurisdiction. a. True b. False 3. Employment equity involves changing the composition of an organization’s workforce to better reflect the workforce. a. True b. False 4. Employment equity makes good business sense since it contributes to the bottom line. a. True b. False 5. Under the Canadian Human Rights Act, the Canadian Human Rights Commission is authorized to prohibit discrimination against members of the designated groups in the establishment of federally regulated businesses. a. True b. False 6. An employer should try to eliminate unintentional discrimination, but is not legally accountable for such discrimination. a. True b. False 7. Transforming an organizational culture into a culture that embraces diversity is relatively simple and can be done in a relatively short period of time. a. True

b. False 8. An example of a BFOQ for age is the argument that a younger employee will project a better, more energetic image to the public. a. True b. False 9. Concentration occurs when the numbers of a protected class in a particular occupation or level are high relative to their numbers in the labour market. a. True b. False 10. Implementation of pay equity is based on comparing the work of female and male employees doing the same job. a. True b. False 11. Employment equity involves the implementation of special measures and reasonable accommodation. a. True b. False 12. The four traditionally disadvantaged groups could be brought into the mainstream of Canada’s labour force through employment equity. a. True b. False 13. In 2002, women aged 15 and over who had employment income made 55 cents for every $1 earned by their male counterparts. a. True b. False 14. The concept of employment equity is rooted in the federal Charter of Rights and Freedoms, and in federal and provincial human rights codes. a. True b. False 15. The first step in the implementation of employment equity is data collection and analysis. a. True b. False 16. Federal law prohibits discrimination based on sexual orientation. a. True b. False 17. The labour movement in Canada has generally been opposed to the concept of employment equity. a. True b. False 18. Reasonable accommodation benefits all employees. a. True b. False

19. Prohibited grounds of discrimination in employment include race, religion, sex, age, national or ethnic origin, disability, and marital status. a. True b. False 20. The overall goal for an organization with respect to employment equity is to achieve a workforce representative of the demographic composition of the external workforce. a. True b. False 21. Pay equity law makes it illegal for employers to discriminate against individuals on the basis of job content. a. True b. False 22. Pay equity is based on the principles of equal pay for equal work and equal pay for work of comparable worth. a. True b. False 23. The main cost of sexual harassment in the workplace is legal settlements a. True b. False 24. The Canadian Human Rights Commission (CHRC) may choose to act on its own if it feels there are sufficient grounds for a finding of discrimination. a. True b. False 25. Targeted recruitment aimed primarily at correcting employment inequities is an example of a special measure designed to accelerate the entry and promotion of members of designated groups discriminated against in the past. a. True b. False 26. The Employment Equity Act stipulates that employers and Crown corporations with 200 employees or more, who are regulated under the Canada Labour Code, must implement employment equity and report on results attained. a. True b. False 27. Employers are permitted to discriminate if there is a bona fide occupational qualification. a. True b. False 28. A religious organization is permitted to discriminate on the basis of religion. a. True b. False 29. Employment equity involves the identification and removal of systemic barriers to employment opportunities that adversely affect the four designated groups. a. True b. False 30. Reasonable accommodation involves making changes to the workplace so that no individual is disadvantaged with

respect to employment. a. True b. False 31. The concept of harassment has been broadened to include bullying in at least one provincial jurisdiction. a. True b. False 32. The only difference between federal and provincial human rights laws is that the former cover federally regulated industries and the latter cover provincially regulated industries. a. True b. False 33. The development of an external workforce profile is an important tool in employment equity planning. a. True b. False 34. As an HR professional, if you lie or are otherwise involved in obstructing an investigation by the Canadian Human Rights Commission, you can serve jail time. a. True b. False 35. Once a complaint has been accepted by the Canadian Human Rights Commission (CHRC), an investigator is assigned the task of fact finding from both the complainant and the accused. a. True b. False 36. Leadership is one of the key variables in a firm’s ability to incorporate the value of diversity into its business strategy. a. True b. False 37. The optimization of an organization’s multicultural workforce in order to reach business objectives is known as diversity management. a. True b. False 38. Federally regulated employers are required to conduct a workforce analysis to identify underrepresentation of members of designated groups. a. True b. False 39. Diversity initiatives should be directly linked to the business objectives of top management. a. True b. False 40. According to one study, only one of every ten Canadian women who suffer sexual harassment at work takes any formal action. a. True b. False 41. In Canada, the four designated groups that have not received equitable treatment in employment are women,

Aboriginal people, people with disabilities, and visible minorities. a. True b. False 42. A crucial element of any diversity management initiative is proper training across the organization. a. True b. False 43. The Canadian Human Rights Commission (CHRC) must accept all complaints except those not filed within a prescribed period of time. a. True b. False 44. Employers covered by the federal Employment Equity Act are required to consult with designated employees’ representatives or, in a unionized setting, with bargaining agents. a. True b. False 45. Women are underrepresented as technicians and semi-skilled professionals. a. True b. False 46. Recent statistics indicate that visible minorities are lacking in educational qualifications, which has resulted in their high unemployment rates. a. True b. False 47. An employment equity program is a process requiring senior management commitment and involvement. a. True b. False 48. Human rights legislation is the cornerstone of equity legislation. a. True b. False 49. An example of sexual harassment is having to listen to comments made by co-workers about their sexual conquests every Monday morning even when you have told them that their remarks make you extremely uncomfortable. a. True b. False 50. Diversity initiatives are most successful when they are perceived to be human resources programs. a. True b. False 51. Managing diversity is primarily a moral issue. a. True b. False 52. Firms under provincial jurisdiction with 100 or more employees, wishing to bid for goods and services contracts with the federal government valued at $200 000 or more, must implement an employment equity plan. a. True

b. False 53. Employers are guilty of sexual harassment if they permit their customers to sexually harass their employees. a. True b. False 54. Every workplace in Canada is covered by human rights legislation. a. True b. False 55. The federal pay equity legislation applies to all employees in Canada. a. True b. False 56. Prohibited grounds of discrimination in employment vary between provinces. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

57. Organization Z is about to undertake an organization-wide process of ensuring equitable representation in terms of designated groups, including an analysis and redressing of past discriminations. What is Organization Z undertaking? a. affirmative action policy implementation b. employment equity policy implementation c. pay equity policy implementation d. an employment systems review 58. Which of the following is the best example of how an organization’s leadership can demonstrate its commitment to an employment equity plan? a. allowing employees to fill out the employment equity survey on company time b. offering a full explanation of the employment equity policy to top managers c. offering a guarantee of confidentiality d. publicly describing the organization’s commitment to employment equity Scenario 3.2 Metro Business is a growing firm located in Calgary, Alberta. The CEO, Niri Malo, has noticed that most of the recent applications for positions in the organization are self-identified persons from the four designated groups covered by employment equity legislation in Canada. Ms. Malo has heard of the benefits of a diversity workforce and wants to implement an employment equity plan. She understands, however, that there may be challenges in implementing it.

59. Refer to Scenario 3.2. Which of the following is NOT one of the four designated groups covered by the federal Employment Equity Act? a. Aboriginals b. persons with disabilities c. Women d. war veterans 60. According to the textbook, which group is most likely to view the Canadian Charter of Rights and Freedoms as a

disappointment? a. unions b. women c. employers d. religious groups Scenario 3.2 Metro Business is a growing firm located in Calgary, Alberta. The CEO, Niri Malo, has noticed that most of the recent applications for positions in the organization are self-identified persons from the four designated groups covered by employment equity legislation in Canada. Ms. Malo has heard of the benefits of a diversity workforce and wants to implement an employment equity plan. She understands, however, that there may be challenges in implementing it.

61. Refer to Scenario 3.2. What is one reason for Metro Business to have an employment equity plan? a. They would like access to the Federal Contractors Program. b. It is required for all firms in Canada. c. It will address pay equity problems. d. It will prevent racism in the organization.

62. Organization Z is planning a formal process of examining its workforce in terms of religion, personality, lifestyle, and education. The company plans to gain a strategic advantage by harnessing the differences that exist within the organization. What is Organization Z planning to do? a. implement an employment equity program b. implement a pay equity program c. initiate a cultural assessment d. employ diversity management 63. In Canada, what is a key characteristic of the occupations where women tend to be concentrated? a. They are occupations in advanced technologies and education. b. There is a heavy concentration of immigrants. c. They are occupations that are increasingly becoming extinct. d. They are occupations with lower pay compared to men.

64. Ross Metals Inc. is claiming that it would cost the organization more than half its revenues to build a ramp to accommodate one of its employees with a disability. What is likely the argument Ross Metals Inc. is making to seek exemption from the duty to accommodate? a. undue hardship to the employer b. going out of business c. incompatibility with the law d. sale of business 65. ABC Inc. is experiencing problems with recruiting and retaining Aboriginals. Based on the research on cultural values exemplified by Aboriginals, which of the following managerial practices may help with its problems? a. increased executive pay b. collective decision making c. counselling d. individual merit-based pay

66. Which of the following compounds the employment barriers facing Aboriginals in Canada? a. negative past employment experience b. illiteracy c. reluctance to leave the area in which they grew up d. language and culture 67. Green Grass Hospital pays its hallway painters/technicians nearly twice the hourly rate that it pays the nurses. Under which of the following circumstances is this fact likely to cause further investigation in a pay equity program implementation? a. if the nurses have more seniority b. if the painters have more training c. if the nurses are predominantly women and the painters are predominantly men d. if the painters’ union becomes involved in the process Scenario 3.1 The Furniture Emporium Inc. is a Canadian-based international manufacturer and distributor of high-end furniture for offices and homes. Since 2010, it has been expanding into the emerging markets across the globe. The company’s workforce is representative of the population. As well, women make up 58 percent of the company’s workforce. However, while these groups are well represented in the organization, they are not seen in the same percentage as a part of the senior management structure of the organization. While Furniture Emporium hires for diversity, it does not use its employees’ diverse skills and abilities to enhance its global potential, given the international nature of its business.

68. Refer to Scenario 3.1. Which of the following is a good way for Furniture Emporium to gain a strategic and competitive advantage, through its employees, in the international furniture market? a. hire for diversity b. ensure pay equity is implemented c. manage diversity effectively d. promote employees from the designated groups 69. Which of the following is true in terms of the relationship between employment equity and diversity management? a. The terms are used interchangeably as they are the same. b. Diversity management goes beyond the four groups covered in employment equity. c. The focus of diversity management is economic but for employment equity it is morality. d. Diversity management is more restricted in terms of groups covered.

70. Once an employment equity program has been implemented, what is the most important thing to do? a. evaluate and monitor it closely b. keep up to date on new developments and laws in employment equity c. inform the CHRA of progress d. limit revisions to the program to one per year 71. Which legal defence can a religious organization use if it insists on hiring a member from its own faith? a. adverse effect b. adverse impact c. bona fide occupation qualification d. reasonable accommodation

72. What are the primary business reasons for diversity management? a. acting in accordance with CHRA legislation; better utilization of talent; better teamwork; better marketplace understanding; better leadership b. enhanced creativity; better synergy; better utilization of talent; better leadership; better teamwork c. acting in accordance with CHRA legislation; better utilization of talent; better leadership; better work ethic; better marketplace understanding d. better utilization of talent; better marketplace understanding; enhanced creativity; better leadership; better teamwork 73. When is an organization’s workforce “representative”? a. when it reflects an improvement from the previous year’s results b. when numerical goals have been established c. when it reflects the demographic composition of the external workforce d. when the process used to hire is similar across all units 74. What is a recent change in the Federal Contractors Program? a. Refugee status was added as a new designated group. b. The contract threshold was increased to $1 million. c. It was discontinued. d. The provinces are now required to administer it.

75. Implementing a flexible work schedule is an example of which of the following? a. reasonable accommodation b. a special measure c. an employment equity goal d. a workplan 76. Which of the following is the fastest growing demographic group in Canada? a. visible minorities b. Aboriginals c. women d. persons with disabilities 77. Which of the following is NOT true in relation to diversity management? a. It is broad and inclusive. b. It has economic benefits. c. It requires top leadership support for its success. d. It is the same as employment equity.

Scenario 3.1 The Furniture Emporium Inc. is a Canadian-based international manufacturer and distributor of high-end furniture for offices and homes. Since 2010, it has been expanding into the emerging markets across the globe. The company’s workforce is representative of the population. As well, women make up 58 percent of the company’s workforce. However, while these groups are well represented in the organization, they are not seen in the same percentage as a part of the senior management structure of the organization. While Furniture Emporium hires for diversity, it does not use its employees’

diverse skills and abilities to enhance its global potential, given the international nature of its business.

78. Refer to Scenario 3.1. If Furniture Emporium wants to create an environment for success in the international furniture market by leveraging their employees, what do they need to fully understand? a. the need for a systematic approach to managing diversity b. how to reward their executives for success c. how to incorporate short-term diversity initiatives d. employment equity legislation 79. Phil’s Antique Superstore is hiring ten new customer service agents. All three of Phil’s stores are housed in historic landmark buildings that are “heritage” sites and do not have wheelchair ramp access. What is this an example of? a. a systemic barrier b. the need for special measures c. lack of reasonable accommodation d. the duty to accommodate 80. What is the first step in the employment equity implementation process? a. conduct a strategic discrimination gap analysis b. establishment of a workplan c. employment systems review d. senior management commitment Scenario 3.1 The Furniture Emporium Inc. is a Canadian-based international manufacturer and distributor of high-end furniture for offices and homes. Since 2010, it has been expanding into the emerging markets across the globe. The company’s workforce is representative of the population. As well, women make up 58 percent of the company’s workforce. However, while these groups are well represented in the organization, they are not seen in the same percentage as a part of the senior management structure of the organization. While Furniture Emporium hires for diversity, it does not use its employees’ diverse skills and abilities to enhance its global potential, given the international nature of its business.

81. Refer to Scenario 3.1. Which of the following accurately represents diversity management if Furniture Emporium were to use it as a strategic tool? a. It is required by law in Canada. b. It is a big part of managing human resources. c. It is relatively simple and requires little time to implement. d. It can be a complex and lengthy process to embark on.

82. Which statement best describes the enforcement of provincial human rights laws? a. Provincial laws are enforced in a similar manner except there is no court prosecution permitted. b. Provincially regulated employers tend to be larger and more sophisticated. c. HR professionals in provincially regulated firms tend to be very knowledgeable about human rights legislation. d. Independent boards of inquiry have similar powers as a federal tribunal.

83. Employers that pay men and women a different salary for performing jobs of comparable value violate the Pay Equity Act (Ontario) only if the differences are based on which of the following? a. gender b. merit c. seniority

d. incentive plans Scenario 3.1 The Furniture Emporium Inc. is a Canadian-based international manufacturer and distributor of high-end furniture for offices and homes. Since 2010, it has been expanding into the emerging markets across the globe. The company’s workforce is representative of the population. As well, women make up 58 percent of the company’s workforce. However, while these groups are well represented in the organization, they are not seen in the same percentage as a part of the senior management structure of the organization. While Furniture Emporium hires for diversity, it does not use its employees’ diverse skills and abilities to enhance its global potential, given the international nature of its business.

84. Refer to Scenario 3.1. Why can the ethnic groups help Furniture Emporium leverage its diverse workforce to gain competitive advantage? a. They are easier to work with. b. They possess knowledge of foreign cultures and business practices. c. They are time-oriented. d. They are performance driven.

Scenario 3.2 Metro Business is a growing firm located in Calgary, Alberta. The CEO, Niri Malo, has noticed that most of the recent applications for positions in the organization are self-identified persons from the four designated groups covered by employment equity legislation in Canada. Ms. Malo has heard of the benefits of a diversity workforce and wants to implement an employment equity plan. She understands, however, that there may be challenges in implementing it.

85. Refer to Scenario 3.2. What is the first step in establishing the employment equity plan at Metro Business? a. collecting data on Metro’s demographics b. ensuring senior management commitment c. ensuring reasonable accommodation d. getting the government’s approval 86. What is another term used for unintentional discrimination by organizations? a. overt discrimination b. job-related discrimination c. systemic discrimination d. personal discrimination 87. Which of the following people would be the best choice for an organizational employment equity representative? a. Bill has belonged to the organization for 15 years, beginning on the shop floor, and is now a manager. He is well known and respected within the organization. Bill’s sister, who lives with him, is disabled and uses a wheelchair. b. Sandeep is a member of a designated group, is new to the organization, and works in management. He is an active member of his religious group. c. Candy is a member of designated group and has been with the organization for 25 years as a telephone receptionist. She knows everyone and is very popular due to her friendliness and great memory. d. Antonia, who has been with the organization for 15 years, is very interested in becoming the employment equity representative because she is very organized and wants an opportunity to demonstrate this to management so she can be considered for a promotion.

88. Which of the following is done during the data collection phase for employment equity purposes? a. voluntary self-identification

b. mandatory selfidentification c. surveys of similar employers d. surveys of supervisors 89. What are two sources of the employer’s duty to prevent sexual harassment? a. human rights legislation and employment standards legislation b. pay equity legislation and common law obligations c. pay equity legislation and common law obligations d. human rights legislation and common law obligations 90. “Phil’s Antique Superstore” is hiring ten new customer service agents. All three of Phil’s stores are housed in historic landmark buildings that are “heritage” sites and do not have wheelchair ramp access. Phil, the owner, has indicated that city bylaws will not allow him to renovate and add a wheelchair ramp to his buildings because of their heritage status.

This fact makes the ability to “go upstairs” which of the following in relation to working at Phil’s? a. an undue hardship b. a reasonable accommodation c. a bona fide occupational qualification d. a system barrier 91. Proponents of diversity management contend that diversity-related initiatives can help Canada with enlarging its global markets. What is this argument an example of? a. reverse discrimination b. the business case c. reasonable accommodation d. employment equity 92. What is the most serious possible occurrence if an HR professional is dishonest in a human rights investigation? a. The organization could be fined up to $50 000. b. The HR professional could be imprisoned. c. The HRPA would remove certification for a year. d. The HR professional would be denied employment in the future.

93. Which of the following is an important reason behind implementing a diversity initiative? a. to help train organizational leaders b. to avoid human rights complaints c. to comply with Canadian legal requirements in relation to pay d. to capitalize on emerging markets around the world 94. Which of the following is a possible outcome of a human rights complaint filed by an individual? a. A settlement may be arranged, even if the complaint is unsubstantiated. b. The Equal Rights Compliance Agency (ERCA) may become involved. c. It is deemed as trivial by the CHRC and refused. d. It can be waitlisted for years depending on how busy the CHRC is.

95. What is the first step for the establishment of a workplan for the development of an employment equity program? a. doing a job analysis

b. examining the workforce analysis c. developing a strategic plan d. setting numerical goals 96. Which organizational situation best represents the principle of the duty to accommodate? a. renovating so that the building has wheelchair access, even if it is through a rear-entrance loading dock b. equipping washrooms with lower mirrors and faucets, and wider doors c. having regular employee surveys for disabled employees to ensure their needs are met d. following the uniform guidelines for accommodation Scenario 3.1 The Furniture Emporium Inc. is a Canadian-based international manufacturer and distributor of high-end furniture for offices and homes. Since 2010, it has been expanding into the emerging markets across the globe. The company’s workforce is representative of the population. As well, women make up 58 percent of the company’s workforce. However, while these groups are well represented in the organization, they are not seen in the same percentage as a part of the senior management structure of the organization. While Furniture Emporium hires for diversity, it does not use its employees’ diverse skills and abilities to enhance its global potential, given the international nature of its business.

97. Refer to Scenario 3.1. By strategically incorporating a diverse workforce into all levels of the organization, what can Furniture Emporium benefit from? a. increased profitability and share prices b. employee loyalty and retention c. the spending power of these groups d. the diverse educational background of these groups 98. A large accounting firm has 30 percent female UFE-certified accountants on staff. Women make up approximately 51 percent of the population and UFE-certified women make up approximately 15 percent of the labour force. Based on this information, what is the best description of the situation for women at this large accounting firm? a. They are concentrated. b. They are underrepresented. c. They are underutilized. d. They are discriminated against.

99. The concepts of harassment in the workplace are being broadened to include which one of the following? a. psychological harassment such as bullying b. compensation decisions c. privacy d. unequal pay for equal work 100. Which of the following is NOT normally done in implementing employment equity in organizations? a. collecting/analyzing data b. establishing a workplan c. ensuring pay equity d. getting senior management commitment 101. An effective sexual harassment policy includes all of the following EXCEPT which one? a. a comprehensive, well-publicized, organization-wide policy on sexual harassment

b. a formal complaint procedure that spells out the methods used to investigate charges c. emphasis on follow-up and discipline for supported charges d. a policy to dismiss any employee accused of sexual harassment 102. Which term refers to a snapshot of the organization that includes where members of designated groups are employed, their salaries, and their status? a. stock data b. HR spreadsheet c. flow data d. employer profile 103. Which of the following recruiting methods is very susceptible to creating systemic discrimination? a. word-of-mouth b. online ads c. ads in widely circulated newspapers d. ads in community newspapers 104. A key goal of employment equity is to ensure that an organization has a representative workforce. What does “representative” mean in this context? a. when there are equal numbers of all groups represented in all jobs b. when there are equal numbers of the four designated groups in the organization c. when males and females are equally represented d. when the organization’s workforce reflects the demographic composition of the external workforce 105. How is the Canadian Human Rights Act typically enforced? a. by specially designated police officers b. through proactive measures by the RCMP c. through complaints by individuals d. by human rights organizations 106. Which of the following requires large firms bidding on federal government contracts worth $1 million or more to have an employment equity plan? a. the Canada Labour Code b. the Federal Contractors Program c. the Abella Commission d. the Pay Equity Act 107. What is the difference between pay equity and pay equality? a. Equity is equal pay for work of comparable worth; equality is equal pay for equal work. b. Equality is equal pay for work of comparable worth; equity is equal pay for equal work. c. Equity is about fair pay for individual women employees; pay equality is required of all federally regulated employers. d. Equality is about fair pay for entire occupations; equity is required by law in every jurisdiction in Canada.

108. Which of the following is NOT a characteristic of labour force statistics in Canada today? a. increased participations rates for women b. changing immigration patterns

c. an aging population d. increasing proportion of Aboriginals 109. In a legal sense, what are two key concepts of justice? a. courts and tribunals b. transparency and the glass ceiling c. ethics and fairness d. fair and foul play

110. What are the steps involved in filing and investigating a human rights complaint?

111. What can employers do to deter sexual harassment?

112. What are some of the disadvantages in employment faced by the four designated groups in Canada?

Answer Key 1. False 2. True 3. True 4. True 5. True 6. False 7. False 8. False 9. True 10. False 11. True 12. True 13. False 14. True 15. False 16. True 17. False 18. True 19. True 20. True 21. True 22. True 23. False 24. True 25. True 26. False 27. True

28. True 29. True 30. True 31. True 32. False 33. False 34. True 35. True 36. True 37. True 38. True 39. True 40. False 41. True 42. True 43. False 44. True 45. True 46. False 47. True 48. True 49. True 50. False 51. False 52. True 53. True 54. True 55. False

56. True 57. b 58. d 59. d 60. a 61. a 62. d 63. d 64. a 65. b 66. d 67. c 68. c 69. b 70. a 71. c 72. d 73. c 74. b 75. a 76. a 77. d 78. a 79. a 80. d 81. d 82. d 83. a

84. b 85. a 86. c 87. a 88. a 89. d 90. c 91. b 92. b 93. d 94. c 95. b 96. b 97. c 98. a 99. a 100. c 101. d 102. a 103. a 104. d 105. c 106. b 107. a 108. d 109. c 110. Individuals under federal jurisdiction have the right to file a complaint with the Canadian Human Rights Commission (CHRC) if they feel they have been discriminated against on any of the prohibited grounds. The complainant must first complete a written report describing the discriminatory action. A CHRC representative reviews the facts and determines if the claim is legitimate. Once a complaint has been accepted by the CHRC, an investigator is assigned to the case in order

to gather more facts, from both the complainant and the accused. The investigator submits a report to the CHRC, recommending a finding of either substantiation or non-substantiation of the allegation. If the allegation is substantiated, a settlement may be arranged in the course of the investigation. If the parties are unable to reach agreement, a human rights tribunal consisting of up to three members may be appointed to further investigate the complaint. If the tribunal finds that a discriminatory practice did take place, it may order the person or organization responsible to compensate the victim. Any person who obstructs an investigation or a tribunal, or fails to comply with the terms of a settlement, can be fined and/or jailed.

Provincial human rights laws are enforced in a very similar manner. Individuals who feel they have been discriminated against on any of the prohibited grounds file a written complaint with the applicable human rights commission, which then investigates the claim. The majority of cases are resolved at the investigation stage. If agreement cannot be reached, the case is presented to the province’s human rights commission. The members of the commission study the evidence and then submit a report to the minister in charge of administering the human rights legislation. The minister may appoint an independent board of inquiry, which has similar powers to a federal tribunal. Failure to comply with the remedies prescribed by the board of inquiry may result in prosecution in provincial court.

111. Employers must develop an effective sexual harassment policy if they wish to deter sexual harassment. The policy should be clear and comprehensive, publicizing to all organizational members that sexual harassment will not be tolerated.

Supervisors and managers should be trained to understand human rights legislative requirements and their role in providing an environment free from harassment. A formal complaint procedure should be established that allows employees to report harassment occurrences without fear of retaliation. All charges should be investigated immediately and, if warranted, discipline should be administered. Cases should be followed up to ensure a satisfactory resolution of the problem.

112. There are four designated groups in Canada that have not received equitable treatment in employment: (1) women, (2) Aboriginal peoples, (3) people with disabilities, and (4) visible minorities.

(1) Women tend to be concentrated in occupations that are accorded lower status and pay.

(2) Many Aboriginal workers are concentrated in low-paying, unstable employment.

(3) The unemployment rate for employable people with disabilities is much higher than the national unemployment rate.

People with disabilities face attitudinal barriers, physical demands that are unrelated to actual job requirements, and inadequate access to technical- and human-support systems that would make productive employment possible.

(4) Visible minority groups vary in their labour force profiles; however, studies have shown that Latin Americans and Southeast Asians experience lower-than-average incomes, higher rates of unemployment, and reduced access to job interviews, even when they have the same qualifications as other candidates. Culturally biased aptitude tests, lack of recognition of foreign credentials, and excessively high language requirements pose systemic barriers for visible minority groups.

Indicate whether the statement is true or false.

1. A job consists of different duties and responsibilities performed by one person. a. True b. False 2. Job analysis is an important step toward ensuring an organization’s HR practices are valid and job-related. a. True b. False 3. Job analysis is the process of obtaining information about jobs by determining what the duties, tasks, or

activities of those jobs are. a. True

b. False 4. Job design is concerned with changing, modifying, and enriching jobs in order to capture the talents of

employees while improving performance. a. True b. False 5. Adding more meaningful tasks to an employee’s job in an effort to make it more rewarding is an example of

job enrichment. a. True b. False 6. Employee empowerment grows in an organizational culture that promotes satisfaction, support, and

recognition. a. True b. False 7. Industrial engineering is a technique of job design that is concerned with efficiency and behavioural

considerations of a job. a. True b. False 8. Job design should facilitate the achievement of organizational goals while recognizing the capabilities and

needs of those who are to perform it. a. True b. False 9. Employee involvement groups (EIs) are groups of highly trained individuals using consensus decision

making to perform independent job tasks and solve problems. a. True b. False 10. Discrepancies between knowledge, skills, and abilities (KSAs) and job requirements provide clues to

training needs. a. True b. False 11. Human resource information systems have limited potential to impact the job analysis process. a. True b. False 12. At Eastman Kodak Company, teams are responsible for manufacturing entire product lines. This type of

team is referred to as a “task force.” a. True b. False 13. The critical incident method focuses on employee behaviours critical to job success. a. True b. False

14. The job characteristics model suggests that the motivated, satisfied, and productive employee is one who (1)

experiences meaningful work; (2) experiences responsibility for work outcomes; and (3) has knowledge of the results of his or her work activities. a. True b. False 15. Job design is concerned with changing, modifying, and enriching jobs in order to capture the talents of

employees while improving performance. a. True b. False 16. The real advantage of job enrichment is that it applies to all employees. a. True b. False 17. The critical incidents method of job analysis is based on interviewing the job incumbent/employee. a. True b. False 18. Most job descriptions include a job title, a job identification section, and a job duties section. a. True b. False 19. Job sharing is effective for employees who desire to phase in to retirement. a. True b. False 20. In the job characteristics model, skill variety refers to the amount of freedom held by the employee to

schedule work and perform activities. a. True b. False 21. Empowerment encourages employees to become innovators and managers of their own work. a. True b. False 22. Job design considers organizational objectives, industrial engineering considerations, ergonomic concerns,

and job descriptions. a. True b. False 23. The job title is of psychological importance as well as descriptive. a. True b. False 24. Job enrichment is a way of increasing employee empowerment. a. True b. False

25. Common methods of analyzing jobs include interviews, questionnaires, observation, and diaries. a. True b. False 26. An example of a job-related specification might be to require three to five years’ experience for a job as

senior compensation analyst. a. True b. False 27. All group-based work techniques have two things in common: enhancing communication and increasing

synergy. a. True b. False 28. Relying on generic job descriptions tends to reduce role ambiguity. a. True b. False 29. Ultimately, the purpose of job analysis is to value a job and establish its pay rate. a. True b. False 30. Inherent in the concept of work teams is that employees, not managers, are in the best position to contribute

to work performance. a. True b. False 31. To promote uniformity across organizations, the National Occupational Classification should be used as the

sole source for classifying jobs. a. True b. False 32. Managers cite one of the reasons for implementing compressed workweek schedules as that it can improve

employee job satisfaction and morale. a. True b. False 33. Job enrichment incorporates the behavioural needs of employees into their jobs. a. True b. False 34. A statement of the different duties, tasks, and responsibilities of a job is known as a job description. a. True b. False 35. As a manager, if you designed a job so that an employee could perform the job from beginning to end

according to the job characteristics model, you would be creating task identity. a. True b. False

36. Employees participate in flextime when they do entirely different jobs on a rotating schedule. a. True b. False 37. When writing a job description, it is essential to use statements that are terse, direct, and simply worded. a. True b. False 38. The competency-based approach to job analysis focuses on standard job duties, tasks, and the like. a. True b. False 39. Job analysis is now considered outdated because it can’t keep up with the current state of change in today’s

fast-paced work world. a. True b. False 40. A problem with job descriptions is that they tend to broaden the scope of activities performed by a jobholder. a. True b. False 41. Job specifications usually cover two areas: (1) the skill required to perform the job and (2) the level of

autonomy inherent in the position. a. True b. False 42. Job enrichment can improve employee performance in cases of dissatisfaction with pay and benefits. a. True b. False 43. There are many methods of job analysis and many different ways of compiling the data, but all of the

methods rely on some form of employee/job incumbent interview. a. True b. False 44. Employee interviewing is the most accurate method of job analysis because the employee is least likely to

exaggerate essential job functions. a. True b. False 45. The standard format for job descriptions is contained in the Dictionary of Occupational Titles. a. True b. False 46. Adjustments in work schedules are considered to be a part of job analysis and job design. a. True b. False 47. Job specifications describe the duties, tasks, and responsibilities performed on the job and therefore play a

key role in performance appraisal. a. True b. False 48. Telecommuting is the use of personal computers, networks, and other communications technology to do

work in the home that is traditionally done in the workplace. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

49. What is a key objective of the National Occupational Classification compiled by the federal government? a. It helps to speed up audits by the government. b. It allows for greater uniformity of job titles and job descriptions across the country. c. It serves as the base for the Job Classification Guide. d. It transforms career planning.

50. What is the typical method used by organizations to design compressed work weeks? a. giving employees the work to do at home b. giving a free day off c. increasing the number of hours worked per day d. giving a week off every month 51. An owner of a mall-based retail shop chain has asked front-line sales associates to attend a twice-yearly all-

day meeting where they share ideas about possible new products, innovations, and ideas about improving work flow. What is the owner most likely attempting to implement? a. job involvement b. job enrichment c. brainstorming d. a culture audit 52. According to the work of Herzberg, which of the following methods can managers use to enrich the jobs of

employees? a. improving pay b. increasing benefits c. adding more responsibility to jobs d. improving leadership 53. What is often cited as the most important factor contributing to the success of employee involvement

groups? a. team pay and benefits b. appropriate job design c. organizational design d. comprehensive training of employees 54. Which of the following is an example of an employee involvement group? a. a group of employees who come together once a year to brainstorm new workflow ideas

b. a group of employees who meet after work hours to discuss their interest in hiking and other outdoor

activities c. a group of employees who are allowed to take specialized training courses in statistical analysis d. a group of employees who meet weekly to brainstorm a sequel to a popular product line 55. Which of the following is an example of a job specification? a. To be a grocery store cashier, you need to know how to work a cash register, know the rules of the

store, and know basic math. b. To be a grocery store cashier, you have to deal with the public and be able to stand on your feet for long hours. c. A grocery store cashier assists customers in paying for their grocery items and answering questions about products. d. A grocery store cashier is responsible for making sure items are bagged or tagged, and that all customers pay for their items.

Scenario 4.1 Mike Brassington is the CEO of Canada Steel, a firm that produces steel products for a global market. To improve on one of its products that has received some criticisms on its quality, Canada Steel wants to put together a team that will involve different people in the organization, across different departments, so as to utilize their skills in a manner that would be more productive than if they worked separately. Mike has two ideas on how to design these teams. First, he can put together a group of experienced people from different departments (e.g., marketing, engineering, etc.) to solve the problem (Team 1). Second, he can allow interested employees to have online discussions voluntarily (Team 2). He also has to decide on how to measure the success of the team’s efforts.

56. Refer to Scenario 4.1. According to the textbook, what is a potential challenge for Team 1? a. different cultures among group members b. leadership support c. Web/Internet support d. determining compensation for team accomplishments 57. If the criteria used to evaluate employee performance are vague and not job related, what is the most likely

result? a. The organization can be charged with unfair discrimination. b. The organization can suffer productivity losses. c. The organization can suffer from bad publicity. d. The organization can suffer from lack of trust and commitment from employees.

58. Sally is interviewing an employee, asking him to describe his job, how it is performed, what work is done,

and what tools and equipment are used. What style of job analysis is Sally performing? a. the critical incidents style of job analysis b. the task analysis style of job analysis c. the PAQ style of job analysis d. the occupation classification style of job analysis 59. What is the main difference between job analysis and job design? a. Job analysis looks at jobs as they currently are; job design is about reorganizing work.

b. Job analysis is required to ensure that HR functions are based on sound and valid data; job design is

focused on compensation and the financial worth of the work. c. Job analysis is a process; job design is a function. d. Job analysis is the study of jobs as currently performed; job design is concerned with changing job structures to improve efficiency.

Scenario 4.1 Mike Brassington is the CEO of Canada Steel, a firm that produces steel products for a global market. To improve on one of its products that has received some criticisms on its quality, Canada Steel wants to put together a team that will involve different people in the organization, across different departments, so as to utilize their skills in a manner that would be more productive than if they worked separately. Mike has two ideas on how to design these teams. First, he can put together a group of experienced people from different departments (e.g., marketing, engineering, etc.) to solve the problem (Team 1). Second, he can allow interested employees to have online discussions voluntarily (Team 2). He also has to decide on how to measure the success of the team’s efforts.

60. Refer to Scenario 4.1. What is the term for the first type of team Mike is considering, where he will put

together different people from different units (Team 1)? a. a self-directed team b. a process improvement team c. a virtual team d. a quality improvement team 61. What is a key advantage of division of labour in organizations? a. improved efficiency b. less need for managers c. greater creativity d. increased employee autonomy 62. In a newspaper ad, Company A stated that for the HRIS Supervisor’s job, the following are required: an

appropriate university degree, five years of corporate experience, and working knowledge of statistical analysis and software.” What are these requirements an example of? a. a job requirement b. a job description c. a position d. a job specification 63. What is the ultimate purpose of job analysis? a. to make sure that societal decisions are fair b. to increase performance and productivity of the organization c. to have a sense of what employees should be or are doing in their jobs d. to organize work in a meaningful way

Scenario 4.1 Mike Brassington is the CEO of Canada Steel, a firm that produces steel products for a global market. To improve on one of its products that has received some criticisms on its quality, Canada Steel wants to put together a team that will involve different people in the organization, across different departments, so as to

utilize their skills in a manner that would be more productive than if they worked separately. Mike has two ideas on how to design these teams. First, he can put together a group of experienced people from different departments (e.g., marketing, engineering, etc.) to solve the problem (Team 1). Second, he can allow interested employees to have online discussions voluntarily (Team 2). He also has to decide on how to measure the success of the team’s efforts.

64. Refer to Scenario 4.1. Which of the following is NOT a way for Mike to measure the success of the team? a. through the level of cooperation and trust of team members b. through whether the goals of the team are achieved c. through the pay increases of the team d. through the way in which conflicts are resolved 65. What is a position? a. a group of related activities and duties b. the different duties and responsibilities performed by one employee c. a statement of the knowledge, skills, and abilities required to perform work d. a statement of the tasks, duties, and responsibilities associated with work 66. There could be legal challenges if specific performance requirements of a job are not based on which of the

following? a. best practices in industry b. peer evaluations c. interview data d. valid job-related criteria 67. What is a job specification? a. a statement of the knowledge, skills, and abilities required to perform the job b. a statement of the tasks, duties, and responsibilities associated with the job c. a group of related activities and duties d. the different duties and responsibilities performed by one employee 68. In discussing how jobs can be enriched, Frederick Hertzberg suggested several factors that can help in this

process. Which of the following is NOT one such factor? a. increasing the level of difficulty of the job b. allowing employees to retain more authority over work outcomes c. adding new tasks to the job that require employee growth d. increasing the pay for work done 69. What do we call the type of work schedule in which employees can adjust their daily starting and quitting

times, provided that they work a certain number of hours per day or week? a. a compressed workweek b. a shorter workweek c. a flextime arrangement d. an adaptable schedule 70. What is the most important difference between competency-based analysis and all other forms of job

analysis discussed in the textbook?

a. Competency-based analysis is better at keeping pace with the quickly changing nature of work. b. Competency-based analysis relies solely on information obtained from job incumbents. c. Competency-based analysis focuses on how the job is currently done. d. Competency-based analysis requires a very high degree of training on the part of the analyst.

71. Why is job analysis considered the cornerstone of HRM? a. because the information collected serves many HRM functions b. because it is done in a scientifically sound and valid way c. because the information comes from job incumbents who know the job the best d. because it is required by law 72. Company A is planning to set up a “virtual team” for a project. Which of the following is the best advice for

this team to be successful? a. Team members should be selected based on certain personal characteristics such as a collaborative mindset. b. All team members should understand advanced computer and telecommunications technology so that breakdowns in communication do not occur frequently. c. Team members should all have Skype accounts. d. Team members should NOT meet in person.

73. Team synergy is heightened when team members engage in behaviours such as support, active listening,

consensus decision making, and which of the following? a. disagreement b. prioritizing options c. charismatic leadership d. unanimity 74. Which of the following is NOT a method to conduct job analysis? a. task inventory development b. the critical incident method c. the position analysis questionnaire d. divisional job analysis 75. Employee empowerment is a technique of involving employees in their work through which of the

following processes? a. development b. inclusion c. team building d. banding 76. Which of the following is a downside of job sharing? a. increased compensation b. less innovation c. potential distrust among employees d. reduced employee appraisals

77. Which of the following is most correct when it comes to job analysis? a. Artificial inflation of job duties must always be double-checked against the NOC. b. A job analyst must weigh information obtained from the NOC above incumbent data. c. A job analyst must weigh manager information more heavily than job incumbent data. d. More information about the job is always better.

78. What factors does Herzberg describe as key to enriching jobs? a. pay, promotion, pension, purpose, and perks b. achievement, recognition, growth, responsibility, and performance of the whole job c. safety needs, social needs, self-esteem needs, and self-actualization d. skill variety, task identity, task significance, autonomy, and feedback 79. Which of the following is most likely to result in a successful telecommuting situation? a. The telecommuters have to check in frequently throughout the day to let their managers know exactly

what they are working on and how it is going. b. The managers who are trained in formalized telecommuting procedures make random calls to the telecommuters at home to ensure all is going well and work is getting done. c. The telecommuters are expected to attend regular on-site meetings and are trained in technical aspects of telecommuting. d. Telecommuting is only allowed when the work at hand does not involve interaction of any kind.

Scenario 4.2 CanBank is a new financial institution with a workforce that values work–life balance. The CEO, Aren Ami, wants to experiment with different work schedules so as to address the needs of the employees. He is considering several options: a four-day, 40-hour workweek; allowing employees to choose start and end times for the workday provided they work a certain number of hours per week; allowing two or more employees to perform a job normally done by one person; and allowing some employees to do work from home that is normally done in the office. The CEO knows that there are pros and cons of each option that he has to weigh.

80. Refer to Scenario 4.2. What is the term for the option where employees choose start and end times for their

workdays provided they work a specified number of hours in the week? a. job sharing b. telecommuting c. shortened workweek d. flextime 81. Refer to Scenario 4.2. What is the term for the option where employees work four-day, 40-hour workweeks? a. flextime b. telecommuting c. job sharing d. compressed workweek 82. Behavioural-based job design studies focus on two key simultaneous outcomes. What are these? a. organizational efficiency and employee job satisfaction b. organizational efficiency and effectiveness c. organizational restructuring and job design

d. employee autonomy and job design 83. What is an important drawback of allowing employees to telecommute? a. difficulty in developing appropriate performance standards b. less work?0?life balance c. increased work conflict d. increased absenteeism 84. What is the concept called when “the interaction and outcome of team members are greater than the sum of

their individual efforts”? a. optimal performance b. positive culture c. energy d. synergy Scenario 4.2 CanBank is a new financial institution with a workforce that values work–life balance. The CEO, Aren Ami, wants to experiment with different work schedules so as to address the needs of the employees. He is considering several options: a four-day, 40-hour workweek; allowing employees to choose start and end times for the workday provided they work a certain number of hours per week; allowing two or more employees to perform a job normally done by one person; and allowing some employees to do work from home that is normally done in the office. The CEO knows that there are pros and cons of each option that he has to weigh.

85. Refer to Scenario 4.2. Which of the following is NOT a reason cited for flextime? a. improving organizational culture b. meeting the challenges of age diversity c. improving customer service by extending operating hours d. improving quality of employees’ work 86. “The IT specialist is responsible for the smooth running of all staff computers” is most likely an excerpt

from which of the following? a. a job description b. a job specification c. a job analysis d. a job position 87. Which of the following job analysis methods utilize “interviews”? a. critical incidents, PAQ, and competency-based analysis b. critical incidents and competency based analysis c. task analysis and competency-based analysis d. PAQ, task analysis, and critical incidents 88. What can result from generically written job descriptions? a. restructuring b. openness to change c. role ambiguity

d. role precision

Scenario 4.1 Mike Brassington is the CEO of Canada Steel, a firm that produces steel products for a global market. To improve on one of its products that has received some criticisms on its quality, Canada Steel wants to put together a team that will involve different people in the organization, across different departments, so as to utilize their skills in a manner that would be more productive than if they worked separately. Mike has two ideas on how to design these teams. First, he can put together a group of experienced people from different departments (e.g., marketing, engineering, etc.) to solve the problem (Team 1). Second, he can allow interested employees to have online discussions voluntarily (Team 2). He also has to decide on how to measure the success of the team’s efforts.

89. Refer to Scenario 4.1. Which of the following occurs when the interaction and outcome of team members is

greater than the sum of their individual parts? a. job sharing b. cooperation c. synergy d. team enrichment 90. Which of the following is NOT a synergistic team characteristic? a. support b. consensus c. acceptance d. agreement 91. What do we call an analysis in which the emphasis is placed on characteristics of successful performers

rather than standard duties? a. a person-based job analysis b. a competency-based analysis c. a performance-based job analysis d. a team-based analysis 92. According to the job characteristics model, what three psychological states of a jobholder result in

motivated, satisfied, and productive employees? a. meaningfulness of work, responsibility for completion of a whole identifiable piece of work, and knowledge of work results b. meaningfulness of work, task significance, and autonomy c. meaningfulness of work, responsibility for outcomes, and fair compensation d. meaningfulness of work, responsibility for outcomes, and knowledge of work results 93. In doing its job analyses, ABC Company, interviews its accountants on the factors that contribute to their

success as accountants in the firm. Which job analytic technique is being used by the company? a. competency-based analysis b. task inventory analysis c. critical incident method d. the position analysis questionnaire

94. Kirk is learning a new job by watching his co-workers and asking questions. He notices that some of his co-

workers stress the importance of certain tasks, while others don’t do these tasks at all. This has left Kirk somewhat stressed by what he should and should not be doing in his new role. What does Kirk need? a. a job description b. a job analysis c. information from the NOC d. job specifications 95. What are the four phases in team development? a. forming, storming, norming, and performing b. forming, norming, performing and dying c. forming, storming, norming and dying d. forming, norming, storming and dying 96. Which organizational situation is most likely to result in employees who feel most empowered? a. The employees are allowed to set their own work schedules so they can have better work–life

balance. b. The employees are allowed to spend a few minutes every day coming up with creative ideas for the suggestion box. c. The employees have access to sensitive information so they can make more informed decisions about their work. d. The employees have a large training budget and they are allowed to spend their training dollars on courses they choose and as they see fit.

97. Which of the following would be a useful approach for organizations to use in addressing discrepancies

between the knowledge, skills, and abilities of the jobholder and the KSAs required for the job? a. rewards b. corporate reorganization c. cooperation d. training 98. In which situation would a job design be recommended? a. New technology has drastically changed the way that work is done in a manufacturing plant shop

floor and employees are finding there is a lot more spare time. b. Due to a recent change in upper management and benefit policies, several hundred highly skilled employees have recently left the organization and moved to a competitor. c. The culture of the organization is deemed by an external consultant to be “stagnant” and in need of a change. d. Members of the organization are trying to form a union.

99. Which of the following is an accurate description of the five core job dimensions of Hackman and Oldham’s

job characteristics model? a. skill variety, task identity, task significance, autonomy, and feedback b. feedback, task identity, job identity, skill variety, and autonomy c. autonomy, feedback, job security, task identity, and skill variety d. skill variety, task identity, job security, autonomy, and feedback

Scenario 4.1 Mike Brassington is the CEO of Canada Steel, a firm that produces steel products for a global market. To improve on one of its products that has received some criticisms on its quality, Canada Steel wants to put together a team that will involve different people in the organization, across different departments, so as to utilize their skills in a manner that would be more productive than if they worked separately. Mike has two ideas on how to design these teams. First, he can put together a group of experienced people from different departments (e.g., marketing, engineering, etc.) to solve the problem (Team 1). Second, he can allow interested employees to have online discussions voluntarily (Team 2). He also has to decide on how to measure the success of the team’s efforts.

100. Refer to Scenario 4.1. What does research demonstrate as key to ensuring the success of the team? a. ensuring a common workplace “language” for team members b. establishing ground rules to guide the team’s work c. ensuring cultural cohesion among team members d. establishing a fair pay system 101. What is a key expected benefit of reengineering and less bureaucracy in organizations? a. improved access to government programs b. accelerated decision-making c. better access to markets d. better leadership 102. As part of its restructuring efforts, XYZ Company is redesigning its jobs. What should be a basic

consideration in this process? a. the impact on the environment b. the costs to restructure c. the costs to restructure and the benefits of redesigned jobs d. the organizational objectives the job was created to fulfill 103. ABC Inc. wants to enrich its jobs vertically. Which of the following can this be accomplished through? a. forming teams that have greater authority for self-management b. providing performance results to employees c. assigning less work to each employee d. increasing salaries and benefits for employees 104. XYZ Corporation recently formed a team comprising a mix of specialists tasked with the specific objective

of developing a new product. What is this type of team called? a. a self-directed team b. a specialist team c. a cross-functional team d. a process improvement team 105. Which of the following is a benefit of job sharing? a. reduced employee layoffs b. less turnover c. less absenteeism

d. less conflict 106. What two characteristics do group/team techniques have in common? a. enhancing collaboration and increasing synergy b. enhancing collaboration and improving morale c. improving morale and increasing synergy d. enhancing communication and increasing synergy

107. What factors should be considered in designing a job?

108. Discuss the job characteristics that motivate employees.

109. What is the role of job analysis in HRM, and how does it relate to other HRM functions?

110. What are the advantages and disadvantages of flextime or flexible working hours?

Answer Key 1. False 2. True 3. True 4. True 5. True 6. True 7. False 8. True 9. False 10. True 11. False 12. False 13. True 14. True 15. True 16. False 17. True 18. True 19. True 20. False 21. True 22. False 23. True 24. True 25. True 26. True 27. False

28. False 29. False 30. True 31. False 32. True 33. True 34. True 35. True 36. False 37. True 38. False 39. False 40. False 41. False 42. False 43. False 44. False 45. False 46. False 47. False 48. True 49. b 50. c 51. b 52. c 53. d 54. d 55. a

56. d 57. a 58. a 59. d 60. b 61. a 62. d 63. b 64. c 65. b 66. d 67. a 68. d 69. c 70. a 71. a 72. a 73. a 74. d 75. b 76. c 77. d 78. b 79. c 80. d 81. d 82. a 83. a

84. d 85. a 86. a 87. b 88. c 89. c 90. d 91. b 92. d 93. c 94. a 95. a 96. c 97. d 98. a 99. a 100. a 101. b 102. d 103. a 104. c 105. a 106. a 107. Job design is concerned with structuring jobs to improve organizational efficiency and employee job

satisfaction. Considerations should include (1) the organizational objectives the job was created to fulfill; (2) industrial engineering considerations, including ways to make the job technologically efficient; (3) ergonomic concerns, including workers’ physical and mental capabilities; and (4) employee contributions reflected in the participation of employees in making job improvements or enhanced operational decisions.

108. The job characteristics model proposes that three psychological states—(1) meaningfulness of work, (2)

responsibility for work outcomes, and (3) knowledge of results—result in improved performance and motivation of workers. The five characteristics that produce these states are:

• Skill Variety: The degree to which a job entails a variety of activities and the use of different skills or talents by the jobholder.

• Task Identity: The degree to which the job requires the completion of a whole, identifiable piece of work.

• Task Significance: The degree to which the job has an impact on the lives or work of other people.

• Autonomy: The degree to which the job provides freedom, independence, and discretion to the jobholder in scheduling and completing the work.

• Feedback: the degree to which the jobholder is given clear information about the effectiveness of his or her performance.

109. Job analysis involves a systematic process of obtaining information about jobs to determine the duties,

tasks, and activities involved in the job. This information is useful in a variety of HRM functions including recruitment, selection, training, development, performance appraisal, compensation, and labour relations.

Job analysis permits HR managers to identify job specifications or qualifications required by the job. This information enables recruiters to target sources that are most likely to generate qualified candidates. It also allows HR managers to design appropriate selection programs.

Information provided by job analysis may identify discrepancies between the knowledge, skills, and abilities of the jobholder and the requirements contained in the specifications for the job. This can provide clues about training and development needs.

Job analysis reveals the requirements of a job and can serve as a basis for developing criteria to be used in performance evaluation and determining the relative worth of a job. Job descriptions generated by job analysis also allow the organization to identify those jobs subject to union jurisdiction.

110. Advantages of flextime or flexible working hours include:

• Employers reduce some of the traditional causes of tardiness and absenteeism.

• Employees gain greater job satisfaction through the ability to adjust their work to accommodate their lifestyle.

• Employees can schedule their working hours for the time of day they are most productive.

• Traffic congestion may be reduced by variations in arrival and departure times.

• Flexible schedules can be helpful in recruiting and retaining personnel.

• They are invaluable to organizations that wish to improve service to customers or clients by extending operating hours.

Disadvantages of flextime or flexible working hours include: • Flexible schedules are not suited to some jobs, such as those where specific workstations must be staffed at all times.

• They can create problems for managers in communicating with and instructing employees.

• They can force managers to extend their workweek to work directly with employees.

Indicate whether the statement is true or false.

1. In addition to the positive morale benefits, recruiting from within the organization also attempts to capitalize on HR and human capital investments. a. True b. False 2. Excessive reliance upon internal sources can create the risk of employee cloning. a. True b. False

3. Organizations tend to integrate their promotion-from-within policy and their employment equity programs. a. True b. False 4. Nepotism is a problem with executive search firms. a. True b. False 5. Mentoring functions can be divided into two broad categories: (1) technical development and (2) career planning. a. True b. False 6. Outplacement services help terminated employees find a job elsewhere. a. True b. False 7. Labour unions can be a recruiting source for some professional job openings. a. True b. False 8. Human resources information systems can be used to predict the career paths of employees. a. True b. False 9. It is the responsibility of the organization to supply information about its mission, policies, and plans for providing support for employee self-assessment, training, and development. a. True b. False 10. There is a correlation between the accuracy and completeness of an advertisement and recruitment success. a. True b. False 11. Recruiters sent to university and college campuses must be properly trained and prepared to talk to candidates about their company and job requirements of specific openings. a. True b. False 12. The placement of an employee in another job at a higher level in the organization with an increase in pay and status is known as a job rotation. a. True b. False 13. A recruiting strategy that works for one form might not work for another. a. True b. False 14. Applicants who find employment through an employee referral tend to be a problem because they tend to quit more often. a. True

b. False 15. Career planning workbooks are popular means of helping employees identify their potential. a. True b. False 16. Yield ratios should be calculated for each recruiting source. a. True b. False 17. A recruiter’s job is to “sell” applicants on the organization, but they have no influence on their decision. a. True b. False 18. Advertisements can allow selectivity in attracting applicants. a. True b. False 19. The realistic job preview informs applicants about all aspects of the job, including both its desirable and its undesirable facets. a. True b. False 20. The lines of advancement for an individual within an organization are known as job paths. a. True b. False 21. Private employment agencies often specialize in particular occupations or professions. a. True b. False 22. Some career development paths provide new assignments that increase skill areas and assignments in different functional areas. a. True b. False 23. In many cases, hiring someone from outside is seen as essential for revitalizing the organization. a. True b. False 24. Yield ratios can help indicate which recruitment sources are most effective at producing qualified job candidates. a. True b. False 25. If career development is to succeed, it must receive the complete support of top management. a. True b. False 26. It is the responsibility of the employee to identify his or her own knowledge, skills, abilities, interests, and values and to seek out information about career options in order to set goals and develop career plans.

a. True b. False 27. The most common method used by job searchers is responding to printed advertisements. a. True b. False 28. A common approach to establishing a career development program is to integrate it with the existing HR functions and structures in the organization. a. True b. False 29. An assessment centre is a place where people are evaluated. a. True b. False 30. Job posting and bidding can be done via electronic bulletin boards or on regular bulletin boards, employee publications, special handouts, direct mail, and public address messages. a. True b. False 31. For technical and managerial positions, community colleges are generally the primary source of recruitment. a. True b. False 32. Realistic job previews reduce turnover, but also reduce job acceptance rates. a. True b. False 33. Often, applicants will respond to an advertisement even if they don’t meet the job requirements. a. True b. False 34. The effectiveness and attractiveness of recruiters is often a main reason why applicants select one organization over another. a. True b. False 35. Mentoring is one important indicator of management support in career development. a. True b. False 36. Educational institutions are typically a source of young applicants with formal training but relatively little full-time work experience. a. True b. False 37. Career management involves a good deal of analysis and planning. a. True b. False

38. Placement is the process of attempting to locate and encourage potential applicants to apply for existing or anticipated job openings. a. True b. False 39. At least one research study has found that managers often hire external candidates rather than promote their current employees because they have a tendency to overvalue unfamiliar candidates and undervalue known ones. a. True b. False 40. The most commonly used search tactic for job seekers is Internet recruiting. a. True b. False 41. Transfers usually provide the same motivational value as promotions. a. True b. False 42. Recruiters usually have minimal influence on an applicant’s decision to work for one organization or another. a. True b. False 43. When unemployment levels are low, employers may need to use more sources of recruitment. a. True b. False 44. Skill inventories are an important tool for succession planning. a. True b. False 45. Mentoring programs develop over time and on an informal basis. a. True b. False 46. Public employment agencies work closely with private employment agencies. a. True b. False 47. Employability refers to the skills and support needed to find a job. a. True b. False 48. The best source for recruitment will vary depending on the industry. a. True b. False 49. A dual career path is for couples who are both working professionals in the same field. a. True b. False

50. Fast-track programs were initiated in some organizations as a way to retain young managers with high potential. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

51. When Mark applied for a job as an engineer in a small town in Northern Canada, he was told that the pay was good, but that it can be very lonely and cold in the winter. Which of the following approaches to recruiting is the employer using? a. realistic job preview b. balanced scorecard c. balanced recruiting d. negative/positive job assessment 52. What is the practice of hiring relatives called? a. insourcing b. nepotism c. favouritism d. inbreeding 53. Which of the following best describes private employment agencies? a. They commonly provide services only to college graduates. b. They do not charge a fee for their services. c. They are administered through the provincial governments. d. They commonly specialize in providing services for a specific occupational area.

54. Which of the following is a characteristic of a tight labour market? a. high unemployment b. low unemployment c. declining compensation rates d. low productivity 55. ABC Corporation identifies the top 10 of its junior engineers and allows them to select a top executive to work with on their career development, including goals, expectations, and standards. How would you describe the resulting relationship between the executive and the junior engineer? a. formal mentoring b. controlled development c. dual career planning d. career networking 56. Which of the following is the most important disadvantage of using employee referrals for recruitment? a. It makes human resource planning near impossible due to the unpredictable nature of the talent pool. b. Training recruiters to recognize potential in candidates in this way is difficult and costly. c. Discrimination may result because people tend to refer others from similar backgrounds. d. It is likely that individuals will refer weak candidates in order to lessen internal competition for promotions.

57. If you are to offer advice to an employer for an effective newspaper advertisement, which of the following is NOT

something that you should advise? a. Overlook community newspapers or classified publications that target a specific market segment. b. Try to be too creative. c. Provide a lot of information about the position. d. Mention that the company is an equal opportunity employer.

58. Which external recruiting source normally provides applicants who stay with the organization the longest? a. newspaper ads b. search firms c. job fairs d. employee referrals 59. What is the first stage in the career stage model? a. early childhood b. organizational entry c. preparation for work d. early career 60. What is often the greatest criticism of search firms? a. They allow for too much “inbreeding.” b. Their clients have to pay them even if the search is unsuccessful. c. Their search is not sufficiently wide. d. They attract too many lawsuits.

61. When Mary was recruited for her position, she was evaluated in a series of situations that resembled what she would likely experience on the job. Which recruitment method was the employer using? a. skills inventory b. management talent inventory c. assessment centre d. performance appraisal 62. Which organizational situation is most likely to benefit from using realistic job previews? a. in the financial industry where there are few jobs but the training is arduous and jobs are not very lucrative despite the promise of wealth in the long run b. in creative organizations, such as symphony orchestras, where the work is not well paid and the training is intense c. in a high-tech organization where despite being in a very competitive industry engineers are allowed to explore their creative side and are motivated financially to suggest innovative products d. in a meat-processing plant where the work is very messy, the smell is strong and unpleasant, and a lot of expensive training is needed to do the job well Scenario 5.2 Star Bright Consulting, a Canadian private employment agency specializing in IT staffing, has been successfully providing qualified IT employees to various firms in the Greater Toronto Area. Recently, the agency has been experiencing problems with its selection process. Primarily, the agency’s clients are not happy with the length of time it takes to fill positions that become available. Even though Star Bright has been successful over the years, it is not fully leveraging technology to aid in its recruitment and selection efforts.

63. Refer to Scenario 5.2. Which of the following tools can Star Bright use to promote the IT careers it offers? a. blogs and articles in industry publications b. chat lines in cyberspace c. an intranet where positions can be quickly viewed and applied for d. links to current employees’ Facebook profiles 64. Organization W has had an opening in a key managerial role for three weeks, which is viewed as a long time. In situations like this in the past, Organization W has had to resort to hiring external to the organization, which is less preferable to the company, in order to fill the position in question. What is Organization W likely suffering from? a. poor HR planning b. a weak training and development program in the organization c. a weak talent bench d. a lack of value for promotions in the organization 65. In identifying career opportunities and requirements within an organization, what is the vital first step? a. preparing a competency or job analysis b. preparing performance appraisals of existing staff in those positions c. ensuring the job progressions within the organization are clear d. identifying career paths 66. Linda has advanced through several roles with increasing responsibilities at ABC Corporation, including HR assistant, HR generalist, and HR manager. What is the term for this line of advancement? a. line path b. career line c. job line progression d. career path 67. What determines the effectiveness of a computerized record system (such as SAP and PeopleSoft) for locating qualified internal job candidates? a. the extent to which data in the system is kept current b. the extent to which the system is “user-friendly” c. the costs for updating the system d. the availability of the system to line personnel 68. Company A sometimes recruits employees from its network of past employees/alumni. What is this process called? a. retiree recruiting b. re-recruiting c. network recruiting d. employee leasing 69. Which of the following best captures the “Peter Principle”? a. Through natural selection, incompetent employees tend to turn over. b. When promoting based on past performance and seniority, employees will be promoted regularly until they are promoted to a position where they cannot perform well. c. Incompetence breeds incompetence. d. Managers who are incompetent tend to produce situations where there are more grievances, more voluntary turnover, more absenteeism, and more harassment.

70. Sukhi is an excellent engineer and has been promoted three times within her current organization—she is now at the top level of engineering. She loves being an engineer, but the organization has now offered her a very lucrative position as a manager. If she wants to continue to be promoted, the only way is to move into management, since there are no higher engineering jobs for her. Which of the following programs would benefit Sukhi? a. a boundaryless career b. competency analysis c. dual career tracking d. a structural career plateau 71. Which recruitment method is more likely than the others to result in discrimination against members of protected groups? a. executive search firms b. social media c. employee referrals d. educational institutions 72. Hamid is a professional engineer. He is not permanently in a management role, but is paid at management rate, and can choose to take up management roles without sacrificing his engineering role. How would you describe his career path? a. complex career path b. boundaryless career path c. dual career path d. divergent career path Scenario 5.1 Beloitte Industries Inc. (BI Inc.) has been one of Canada’s leading financial advisory firms for over 50 years. Staffed by roughly 4000 employees in most major cities across the country, BI Inc. prides itself on hiring recent graduates from renowned business schools and offering them competitive salaries, excellent benefits and perks, and limitless training and development opportunities. Employees also have the opportunity to work from home a couple days a week. Over the years, the company realized that while it has no problems recruiting top candidates to the firm, it is having a harder time retaining them. Exit surveys reveal that while employees appreciate all the perks, benefits, and top salaries that attracted them to the organization, they are not able to enjoy them due to six-day workweeks and 14-hour days, leaving very little time for friends and family. They did not know of these work situations when they were hired.

73. Refer to Scenario 5.1. Adopting a realistic job preview at BI Inc. can lead to which of the following? a. turnover of employees who are more driven by the money b. better job satisfaction and lower turnover c. inaccurately reflecting the culture for which the candidate is signing up d. negative effect on the socialization process 74. What is a key factor in the success of any employee referral program? a. measuring results b. paying employees well for good referrals c. increasing the visibility of the program d. ensuring nepotism

75. Luba is developing a mentoring program for her organization. She has put a great deal of effort into making sure that all protégés are matched demographically with their mentor (gender, race, etc.), educating participants about facts such as the reciprocal nature of the relationship, and that the relationship can be used for personal and professional development.

In her plans, which myth about mentors has Luba fallen victim to? a. A mentor has to be the same gender and race as the protégé. b. Mentoring should focus on the professional and not the personal. c. Although mentoring can be reciprocal, that is just a by-product. The focus should be on the protégé. d. Highly profiled people make the best mentors.

76. What is the key reason why the quality of employee-referred applicants tends to be high? a. Employees are hesitant to recommend applicants who might not perform well. b. Employees train the applicants. c. Employees tend to refer their friends and relatives. d. Inbreeding improves the quality.

Scenario 5.2 Star Bright Consulting, a Canadian private employment agency specializing in IT staffing, has been successfully providing qualified IT employees to various firms in the Greater Toronto Area. Recently, the agency has been experiencing problems with its selection process. Primarily, the agency’s clients are not happy with the length of time it takes to fill positions that become available. Even though Star Bright has been successful over the years, it is not fully leveraging technology to aid in its recruitment and selection efforts.

77. Refer to Scenario 5.2. Which of the following is not useful in assisting Star Bright with efforts to improve its recruitment and selection process? a. yield ratio b. time to fill a position c. realistic job preview d. cost per hire 78. What is the most likely outcome of hiring an external candidate for a position in an organization? a. It would lead to an increase in information about the market. b. It would increase morale among executives. c. It would lead to revitalization of the organization. d. It would decrease creativity.

79. Trade schools can be a good source for recruits for what types of positions? a. entrepreneurial and managerial b. managerial and executive c. entrepreneurial and executive d. entry level and highly skilled employees 80. Which of the following is NOT a service generally offered by public employment agencies? a. compensation surveys b. evaluation programs c. employment testing d. apprenticeship programs 81. Which of the following positions would most likely be filled by external candidates?

a. intermediate IT technicians b. senior accounting clerks c. supervisors d. head coaches of professional sports teams 82. Which of the following refers to those artificial barriers based on attitudinal or organizational bias that prevent qualified individuals from advancing upward in their organizations into management positions? a. artificial barriers b. the glass floor c. the job plateau d. the glass ceiling 83. Which of the following is NOT a factor included in a self-evaluation for successful career development? a. your interests b. academic achievement c. academic aptitude d. organizational opportunities for advancement 84. Which of the following is the best example of a person with a boundaryless career? a. When Deborah become pregnant with her third child, she decided that working less would be best for her family. She now shares her job with another person who also works part-time. b. Yusef quit his job of 10 years to open his own business and work from home. He has the freedom of being his own boss and being flexible with his schedule. c. Bill works in a creative role within an organization with a flat structure. In such an organization there are opportunities to contribute at all levels. d. Sally has worked for three different organizations in five years. Each time she moves to a new organization, and usually a higher position, she takes with her the skills and abilities she learned in her previous role.

85. Which of the following groups is most likely to respond to advertisements placed through social media? a. Generation X b. Generation Y c. retirees d. baby boomers 86. Sandeep has been fired from his managerial position. His organization provides services to help him become employable and find a suitable position elsewhere. What are these services called? a. coaching b. mentoring c. outplacement d. relocation 87. Which of the following best describes outplacement services? a. They are useful methods of attracting individuals into a career. b. They are designed to help terminated employees find a job elsewhere. c. They are rarely given to executive employees. d. They are vital parts of any career management system.

88. In order to identify qualified candidates for the job of “tennis teaching professional,” Canmay Tennis Clubs have job candidates face a series of situations while they are observed, such as dealing with a series of emails from an unhappy club client in a difficult situation, role-playing a lesson, and a behavioural interview. Which method of identifying qualified candidates is Canmay using? a. in-basket exercises b. interviewing c. a work sample d. an assessment centre 89. Which of the following is a potential limitation when an organization practises promotion from within? a. “inbreeding” b. increased cost-per-hire by using the firm’s job posting system c. reduced employee morale d. increased employee turnover Scenario 5.1 Beloitte Industries Inc. (BI Inc.) has been one of Canada’s leading financial advisory firms for over 50 years. Staffed by roughly 4000 employees in most major cities across the country, BI Inc. prides itself on hiring recent graduates from renowned business schools and offering them competitive salaries, excellent benefits and perks, and limitless training and development opportunities. Employees also have the opportunity to work from home a couple days a week. Over the years, the company realized that while it has no problems recruiting top candidates to the firm, it is having a harder time retaining them. Exit surveys reveal that while employees appreciate all the perks, benefits, and top salaries that attracted them to the organization, they are not able to enjoy them due to six-day workweeks and 14-hour days, leaving very little time for friends and family. They did not know of these work situations when they were hired.

90. Refer to Scenario 5.1. Which of the following is helpful in achieving retention at BI Inc.? a. highlighting only the positive aspects of the job when hiring b. not providing a tour of the working facility during the recruitment process c. providing a recruitment package that covers desirable and undesirable attributes d. discussion of how to compensate for any negative consideration 91. Learning in Development (LID) is a high-tech firm that specializes in applications for hand-held devices. It is looking for a cheap, fast, and effective way of recruiting new candidates. Which strategy would best suit LID? a. Internet recruiting b. executive search firms c. labour unions d. walk-in job applicants 92. Some organizations that want to focus on their core functions, including small businesses that lack time or HR personnel, sometimes use outside firms for their recruiting functions. What is this process called? a. delegation of recruiting b. core function planning c. recruitment channelling d. recruiting process outsourcing 93. Sarah is not actively looking for a job but she could be persuaded to take a new job if given the right opportunity.

What is the term we used to describe Sarah? a. reluctant candidate

b. job hopper c. passive job seeker d. active job seeker 94. Which of the following sources of applicants is associated with temporary employees more than the other sources? a. search firms b. walk-ins c. private employment agencies d. job fairs Scenario 5.1 Beloitte Industries Inc. (BI Inc.) has been one of Canada’s leading financial advisory firms for over 50 years. Staffed by roughly 4000 employees in most major cities across the country, BI Inc. prides itself on hiring recent graduates from renowned business schools and offering them competitive salaries, excellent benefits and perks, and limitless training and development opportunities. Employees also have the opportunity to work from home a couple days a week. Over the years, the company realized that while it has no problems recruiting top candidates to the firm, it is having a harder time retaining them. Exit surveys reveal that while employees appreciate all the perks, benefits, and top salaries that attracted them to the organization, they are not able to enjoy them due to six-day workweeks and 14-hour days, leaving very little time for friends and family. They did not know of these work situations when they were hired.

95. Refer to Scenario 5.1. BI Inc.’s problems stem from which of the following? a. not providing all the realities of the job when hiring b. lack of flexibility for employees c. too many unexpected surprises d. providing unrealistic rewards 96. Which of the following is an important limitation of using educational institutions for recruitment? a. The education students receive is not relevant to the workplace. b. Basing recruitment of candidates on grade transcripts is not a valid selection tool. c. Recruitment is limited to sales and retail. d. Candidates generally have limited full-time job experience.

97. ABC Corporation needs a new CEO. What is an important advantage of getting this person externally? a. It helps to promote outbreeding. b. It helps the organization maintain a rich organizational culture. c. It helps to lower initial pay, thus saving on compensation costs. d. It helps the organization gain access to knowledge from previous employers.

98. Which of the following is NOT a method generally used to improve the effectiveness of recruitment? a. surveys b. yield ratios c. realistic job previews d. employment testing Scenario 5.2 Star Bright Consulting, a Canadian private employment agency specializing in IT staffing, has been successfully providing qualified IT employees to various firms in the Greater Toronto Area. Recently, the agency has been

experiencing problems with its selection process. Primarily, the agency’s clients are not happy with the length of time it takes to fill positions that become available. Even though Star Bright has been successful over the years, it is not fully leveraging technology to aid in its recruitment and selection efforts.

99. Refer to Scenario 5.2. Which of the following can be used to speed up the recruitment process while providing valuable information such as time and costs related to hiring? a. quality of fill statistics b. online software application c. leveraging technology d. applicant tracking system 100. What is the most likely outcome of recruiting from within? a. It would increase recruiting costs. b. It would reduce employee motivation. c. It would inhibit creativity. d. It would increase an organization’s technology.

101. What are the advantages and disadvantages of internal recruitment?

102. What can managers do to improve the effectiveness of external recruitment?

103. Describe the five stages of career development, particularly stages one and two, and briefly describe what stages three through five have in common.

Answer Key 1. True 2. True 3. True 4. False 5. False 6. True 7. True 8. True 9. True 10. True 11. True 12. False 13. True 14. False 15. True 16. True 17. False 18. True 19. True 20. False 21. True 22. True 23. True 24. True 25. True 26. True 27. False

28. True 29. False 30. True 31. False 32. True 33. True 34. True 35. True 36. True 37. True 38. False 39. True 40. True 41. False 42. False 43. True 44. True 45. True 46. False 47. True 48. True 49. False 50. True 51. a 52. b 53. d 54. b 55. a

56. c 57. b 58. d 59. c 60. b 61. c 62. d 63. a 64. c 65. a 66. d 67. a 68. b 69. b 70. c 71. c 72. c 73. b 74. a 75. a 76. a 77. c 78. c 79. d 80. a 81. d 82. d 83. d

84. d 85. b 86. c 87. b 88. d 89. a 90. c 91. a 92. d 93. c 94. c 95. a 96. d 97. d 98. d 99. d 100. c 101. The use of internal source applicants provides motivation and enhances the morale of the current workforce by linking performance to rewards. Also, internal applicants are well known to management and require less training than external applicants. Disadvantages or limitations of internal recruitment include the inability to be able to fill certain jobs (e.g., jobs that require specialized training or experience). Internal recruitment may also perpetuate inbreeding of ideas and attitudes. Excessive reliance on internal sources can create the risk of “employee cloning” and may limit the organization from gaining knowledge. External source applicants often bring new and innovative ideas to the workplace.

They are less likely to think in the same old ways as current employees. Also, external candidates can be used to provide knowledge, skills, and abilities that are lacking in the current workforce.

102. There are several things that managers can do to maximize the probability of successful external recruiting. First, managers may calculate yield ratios to help indicate which recruitment sources are most effective at producing qualified job candidates. Second, the cost of various recruiting procedures can be computed using a fairly simple set of calculations.

Third, managers can take steps to ensure that their recruiters have a good understanding of the knowledge, skills, abilities, experiences, and other characteristics required for the job. In addition, it is important to remember that recruiters have an influence on an applicant’s job decision. Because recruiters can often enhance the perceived attractiveness of a job and an organization, they are often a main reason why applicants select one organization over another. Another way organizations may be able to increase the effectiveness of their recruitment efforts is to provide job applicants with a realistic job preview. A realistic job preview informs applicants about all aspects of the job, including both its desirable and undesirable facets.

103. The first stage, preparation for work, encompasses the period prior to entering an organization, often extending until age 25. It is a period in which individuals must acquire the knowledge, skills, and abilities they will need to compete in

the marketplace. Careful planning based on sound information should be the focus.

The second stage, organizational entry, typically from age 18 to 25, is devoted to soliciting job offers and selecting an appropriate job. During this period, one may also be involved in preparing for work.

The next three stages—early career, midcareer, and late career—entail fitting into a chosen occupation and organization, modifying goals, making choices, remaining productive, and finally, preparing for retirement.

Indicate whether the statement is true or false.

1. Online applications can speed up the selection process, combine information, and disseminate promising leads to hiring managers more efficiently. a. True b. False 2. Because of the physical differences between the genders, physical ability tests should be carefully validated on the basis on the essential functions of the job. a. True b. False 3. Aptitude tests measure what a person knows or can do right now. a. True b. False 4. Typically, a computer interview requires candidates to answer a series (75–125) of multiple-choice questions tailored to the job. a. True b. False 5. Predictive validity is assessed when the test scores of job applicants are held against the performance data for existing employees. a. True b. False 6. Strategies for selecting managerial and technical people are relatively similar. a. True b. False 7. Measuring construct validity requires linking a psychological test to job performance. a. True b. False 8. Situational interviews ask applicants how they would respond, while behavioural description interviews ask applicants how they did respond a. True b. False 9. A comprehensive analysis of honesty tests reveals that they are valid for predicting theft, disciplinary problems, absenteeism, and job performance. a. True b. False

10. Conscientiousness refers to the degree to which someone is trusting, amiable, cooperative, and flexible. a. True b. False 11. Medical examinations are usually conducted before an offer of employment is made. a. True b. False 12. Employers are required by law to provide references for former employees. a. True b. False 13. If an organization’s selection procedures yield comparable data over a period of time, the procedures are valid. a. True b. False 14. A situational interview asks the applicant what he or she actually did in a given situation. a. True b. False 15. Most organizations require application forms to be completed because they provide a fairly quick and systematic means of obtaining a variety of information about the applicant. a. True b. False 16. Since biographical information blanks rarely have obviously right or wrong answers, they are difficult to fake. a. True b. False 17. Measuring KSAOs of an applicant against the competencies required for the job is called person–organization fit. a. True b. False 18. The premise of a behavioural interview is that “past performance is the best predictor of future performance.” a. True b. False 19. Credit checks are the most common form of reference check. a. True b. False 20. Data obtained from nondirective interviews are difficult to validate. a. True b. False 21. The Scholastic Aptitude Test (SAT) is an example of a cognitive ability test. a. True b. False

22. Human rights legislation severely limits the types of medical inquiries and examinations that employers may use. a. True b. False 23. Concurrent validity involves testing applicants and obtaining criterion data after they have been on the job for some indefinite period. a. True b. False 24. Drug testing is used much more frequently in Canada than in the United States. a. True b. False 25. The closer the content of the selection instrument to actual work samples or behaviours, the higher the content validity. a. True b. False 26. “Tell me about the last time you disciplined an employee” could be a behavioural description interview question. a. True b. False 27. Validity refers to what a selection procedure measures and how well it measures it. a. True b. False 28. Content validity is the most direct and least complicated type of validity to assess. a. True b. False 29. In large organizations, supervisors are usually responsible for making job offers and notifying applicants of selection decisions. a. True b. False 30. Video interviews have the advantages of speed and cost-effectiveness. a. True b. False 31. In general, a criterion-related method of assessing selection test validity is preferred over other methods because it is based on empirical data. a. True b. False 32. HRM specialists have found that panel interviews lead to higher reliability and faster decision times than one-to-one interviews. a. True b. False 33. Person–organization fit has become more of a focus in firms that need teamwork and flexibility. a. True

b. False 34. Reliability refers to the extent to which two methods yield similar results, but not to the agreement between two or more raters. a. True b. False 35. The situational interview is a variation of the unstructured interview. a. True b. False 36. “Tell me more about your experiences on your last job” is an example of a nondirective interview question. a. True b. False 37. It is much easier to measure what individuals can do than what they will do. a. True b. False 38. Application forms should always require relevant dates, including date of birth. a. True b. False 39. If a work sample test includes major job functions and predicts job success, it has content validity. a. True b. False 40. In most instances, employers can legally use polygraph tests to screen applicants. a. True b. False 41. Predictive and concurrent validity are determined by comparing test scores with supervisor performance ratings. a. True b. False 42. It is estimated that at least 30 percent of applicants stretch the truth on their résumés. a. True b. False 43. Written letters of reference are very valid in the selection of employees. a. True b. False 44. Studies have shown that an objective scoring of biographical information blanks and application forms is one of the most potentially valid methods that can be used to predict job success. a. True b. False 45. Asking an applicant for an accounting position to solve accounting problems similar to those encountered on the job is an example of construct validity.

a. True b. False 46. When trying to achieve person–organization fit, managers will pass up potential employees who don’t embrace the values of the company even if they have excellent job skills. a. True b. False 47. Criterion-related validity is the extent to which a selection tool predicts or correlates with important elements of work behaviour. a. True b. False 48. Personality tests measure such things as agreeableness, extroversion, and openness to experience. a. True b. False 49. The federal government relies extensively on employment testing in the selection process. a. True b. False 50. Although many organizations are encouraging applicants to apply for jobs online, this practice slows down the application process. a. True b. False 51. Behavioural description interviews appear to be more effective than situational interviews, especially for higher-level positions. a. True b. False 52. Behavioural description interviews are based on hypothetical situations. a. True b. False 53. Although widely used, employment interviews pose potential concerns about validity. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

54. A university uses several criteria for accepting students. There is a minimum score that students have to achieve on each of the criteria to get admitted. What type of selection model is being used? a. moving criteria model b. multiple criteria model c. multiple cutoff model d. compensatory model 55. What is a key reason to ensure that selection procedures are valid? a. to ensure comprehensive training for HR professionals

b. to test reliability c. because validity guarantees the success of the selection procedure d. because validity is related to employee productivity 56. Which of the following types of tests measure dispositional characteristics such as extroversion, inquisitiveness, and dependability? a. mental ability tests b. cognitive ability tests c. personality tests d. biodata tests 57. What do we call the process whereby a test or test battery is administered to a different sample (drawn from the same population) for the purpose of verifying the results obtained from the original validation study? a. repeat validation b. cross-validation c. construct validation d. inferential validation 58. Questions contained in structured job interviews should be based on which of the following? a. job design b. job analysis c. job specialization d. job knowledge 59. Which of the following is a key basis for the use of biodata tests? a. Family history is important to job success. b. They are required by law. c. Past behaviour is the best predictor of future behaviour. d. There are no right or wrong answers.

60. Organization C has developed a new selection system. The company is interested in determining if the system predicts performance on the job, so Organization C gave the selection tests to 100 existing employees. What is the best way to describe this process? a. assessing concurrent validity through a cross-validation study b. assessing concurrent validity through a criterion-related validity study c. assessing predictive validity through a criterion-related validity study d. assessing predictive validity through a cross-validation study 61. Validity tests related to such things as intelligence and anxiety typically asses which of the following? a. criterion validity b. content validity c. concurrent validity d. construct validity 62. According to many experts, what are cognitive ability tests are connected to?

a. personality b. past exposure to a job c. situational knowledge d. general intelligence 63. Which of the following is the most objective approach in making employee selection decisions? a. “can-do” approach b. statistical approach c. clinical approach d. “will-do” approach 64. Which of the following do personality tests measure? a. disposition and temperament b. likability and attitude to work c. intelligence and knowledge d. attitudes and behaviours 65. Which of the following types of interviews allows applicants the most freedom in discussing a response to an interview question? a. a structured interview b. a non-directive interview c. an open interview d. a situational interview 66. Which of the following measures mental capabilities such as general intelligence, verbal fluency, numerical ability, or reasoning ability? a. a personality and interest inventory b. a physical ability test c. a cognitive ability test d. a job sample 67. Organization T uses a decision-making model in which an applicant is allowed to score poorly in one area of the selection tests, as long as he or she scores very high in another area. What is this type of decision-making model called? a. a statistical model b. a multiple hurdle model c. a compensatory model d. a multiple cutoff model Scenario 6.1 Canadian Fasteners is an Ottawa-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies. The firm started operations in 2003 with 13 employees and has grown to over 150 employees today.

Employees are paid hourly rates with benefits similar to other packing firms across Ontario. The work does not need previous experience. Canadian Fasteners has been struggling to recruit and hire the right employees to take the company into the new millennium. Part of the problem is that workers, especially floor workers, are hired by word of mouth with no formal application process or even an interview. As a result, the company faces a high turnover rate and spends valuable time training new employees who may not have the prerequisite skills to effectively do the job in the first place.

68. Refer to Scenario 6.1. Which of the following does Canadian Fasteners need to do to gather information about its

candidates? a. administer a lie detector test b. run background and credit checks on all employees c. gather résumés and applications and conduct interviews d. continue as it is currently doing things 69. The HR manager and the training manager separately interviewed five applicants for a position. They both ended scoring the five of them very similarly. What is this result an example of? a. high concurrent validity b. high inter-rater reliability c. high construct validity d. high inter-personal reliability 70. Mary was asked a question in an interview about a hypothetical incident and was asked how she would respond to it.

What is this type of interview called? a. a situational interview b. a panel interview c. a mock interview d. a nondirective interview Scenario 6.2 Computer Direct Inc. is a mid-sized technology firm that specializes in designing, manufacturing, and selling computers.

The organization staff complement is very diverse, and most of the company’s employees are in the development and design, sales, and marketing departments. Computer Direct has been using only one method to make recruitment decisions for all of its employees, from managerial to technical to clerical. Data is gathered on each candidate, and a committee assigns scores to candidates based on its understanding of the job. Candidates, however, are not given the opportunity to be tested and hired based on their respective scores. Essentially, decisions are made based on personal judgments.

71. Refer to Scenario 6.2. If Computer Direct wants to use more objective methods of decision making, which of the following is the best approach? a. demonstrated approach b. compensatory approach c. subjective iterative approach d. statistical approach 72. Giving applicants a clerical aptitude test and then tracking their performance one year later is an example of which of the following? a. construct validity b. concurrent validity c. content validity d. predictive validity 73. What type of interview allows the applicant the maximum amount of freedom in determining the course of discussion? a. a structured interview b. a depth interview c. a situational interview d. a nondirective interview

74. Which of the following best describes drug testing in the selection process? a. It is conducted by very few Canadian organizations b. It is illegal in Canada. c. It is required by law. d. It is conducted in most Canadian workplaces.

75. The “will do” factors of an applicant include which of the following? a. knowledge and skills b. cognitive abilities c. aptitude d. motivation and interests 76. During her interview for a position as a secretary, Nikki was asked to answer a real phone call from a client. The interviewer used her performance to help with the selection decision. Which of the following types of tests was used in this instance? a. a personality test b. a work sample test c. an assessment centre test d. a cognitive ability test 77. Which of the following is appropriate to ask on an application form? a. whether the applicant has prior arrests b. whether the applicant is eligible to be bonded c. whether the applicant has ever been in jail d. whether the applicant has ever been caught stealing Scenario 6.1 Canadian Fasteners is an Ottawa-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies. The firm started operations in 2003 with 13 employees and has grown to over 150 employees today.

Employees are paid hourly rates with benefits similar to other packing firms across Ontario. The work does not need previous experience. Canadian Fasteners has been struggling to recruit and hire the right employees to take the company into the new millennium. Part of the problem is that workers, especially floor workers, are hired by word of mouth with no formal application process or even an interview. As a result, the company faces a high turnover rate and spends valuable time training new employees who may not have the prerequisite skills to effectively do the job in the first place.

78. Refer to Scenario 6.1. Canadian Fasteners is trying to implement a process to recruit and hire workers. Which of the following would work best in this type of organization? a. a non-directive style b. a structured interview c. an open interview d. a contextual interview 79. What is the GMAT an example of? a. a work sample test b. a cognitive ability test c. a structured ability test d. an interest inventory

80. Six months ago, Organization A used a new selection system to hire 100 front-line staff members. With six months of performance data in hand, Organization A is interested in determining if its new selection system predicts performance on the job. What is the best way to describe this process? a. assessing concurrent validity through a cross-validation study b. assessing concurrent validity through a criterion-related validity study c. assessing predictive validity through a criterion-related validity study d. assessing predictive validity through a cross-validation study Scenario 6.1 Canadian Fasteners is an Ottawa-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies. The firm started operations in 2003 with 13 employees and has grown to over 150 employees today.

Employees are paid hourly rates with benefits similar to other packing firms across Ontario. The work does not need previous experience. Canadian Fasteners has been struggling to recruit and hire the right employees to take the company into the new millennium. Part of the problem is that workers, especially floor workers, are hired by word of mouth with no formal application process or even an interview. As a result, the company faces a high turnover rate and spends valuable time training new employees who may not have the prerequisite skills to effectively do the job in the first place.

81. Refer to Scenario 6.1. Assume Canadian Fasteners designates a person to review the applications and conduct the interviews. Which of the following is NOT helpful to the interviewer? a. non-standardized questions b. understanding the job c. establishing an interview plan d. controlling the course of the interview 82. Which of the following conditions represents a test that could be described as “construct valid”? a. A professor puts one essay question on the final exam, and that essay question is drawn from the chapter that she feels is the most important. b. A manager uses a work sample test used for selection that has facets that tap in to every major aspect of the job. c. A researcher gives a test of “job satisfaction” to a group of participants and checks to make sure that his results correlate with other measures of satisfaction. d. A manager assesses how effective his selection test is by checking the performance of successful candidates months after they are hired.

83. What is currently the most effective way to assess a person’s honesty during the selection process? a. graphology testing b. polygraph testing c. integrity testing d. background testing 84. Organization B is using an interview format that requires a panel of three interviewers. The company has found that about half of the time, the interviewers disagree in their ratings such that some members of the panel give the candidate a high rating, while others give the same candidate a low rating. What is the best way to describe the interview format that Organization B is using? a. It is not content valid. b. It is lacking predictive validity. c. It is not valid. d. It is not reliable.

85. Intelligence, mechanical comprehension, and anxiety are examples of which of the following? a. job requirements b. constructs c. theories d. personality traits 86. Organization Beta is hiring 20 new staff for front-line positions. The interview the company is using involves giving the applicant hypothetical incidents and asking how he or she would respond. What is this type of interview called? a. a behavioural description interview b. a panel interview c. a situational interview d. a structured interview 87. In the “Big Five” personality tests, what is the dimension captured by the degree to which someone is dependable and organized, and perseveres? a. conscientiousness b. agreeableness c. extroversion d. dependability 88. Tom Jones was not selected for a job at ABC Corporation. He was later hired at XYZ Inc. and proved to be an excellent employee. In terms of the selection decision, how would you describe this outcome? a. a lost cause b. an unpredictable miss c. a predictable miss d. an opportunity cost 89. Which of the following best describes credit reports? a. Organizations must advise and receive written consent from the applicant when they request a credit report. b. Organizations can request a report on any employee at any time without consent. c. Organizations do not have to inform applicants if adverse decisions are made based on information in the report. d. Organizations cannot make adverse decisions based on information in such a report.

90. Which of the following terms refers to the extent to which good performance on an employment selection test correlates with high marks on a performance review? a. construct validity b. content validity c. criterion-related validity d. cross-validation 91. Organization Omega is hiring 20 new front-line employees. The company is using an interview that involves three people taking turns asking questions and then pooling their scores of the responses. What is this type of interview called? a. a behavioural description interview b. a panel interview c. a situational interview d. a structured interview

92. What do we call the degree to which selection procedures yield comparable data over a period of time? a. conformity b. validity c. reliability d. consistency 93. Why would an organization use an integrity test? a. because even though such tests are not correlated with reduced disruptive behaviours, they have been correlated with reduced turnover b. because such tests are designed to identify thieves c. because these tests not only reduce theft, but also have been shown to have a relationship with performance on the job d. because in using an integrity test, you can avoid the use of most other selection tests, since it has been shown that these are good stand-alone predictors 94. Which of the following best describes the use of reference checks? a. They are no longer used because organizations won’t share information about previous employees for fear of litigation. b. Their usefulness is limited because most managers will not share performance data. c. Some organizations have detailed forms for previous employers to fill out in order to get the best information. d. New human rights laws prohibit their use.

Scenario 6.2 Computer Direct Inc. is a mid-sized technology firm that specializes in designing, manufacturing, and selling computers.

The organization staff complement is very diverse, and most of the company’s employees are in the development and design, sales, and marketing departments. Computer Direct has been using only one method to make recruitment decisions for all of its employees, from managerial to technical to clerical. Data is gathered on each candidate, and a committee assigns scores to candidates based on its understanding of the job. Candidates, however, are not given the opportunity to be tested and hired based on their respective scores. Essentially, decisions are made based on personal judgments.

95. Refer to Scenario 6.2. Which approach is considered superior and would best serve the needs of Computer Direct? a. objective approach b. clinical approach c. statistical approach d. personal judgment approach 96. During an interview, Seema was asked: “Tell me about the last time you helped to train an employee.” What is this an example of? a. a nondirective interview question b. a directive interview question c. a behavioural description interview question d. a closed response interview question 97. Abel scored high on an ability test used to hire him. He, however, turned out to be a poor employee. Which term refers to this outcome? a. a hit b. a miss c. a poor prediction rate d. an opportunity cost

98. When an organization hires a person who is described as high in predicted success and high in job performance, what do we call that situation? a. a hit b. a miss c. high prediction rate d. a successful selection system 99. What do we call the degree to which inferences drawn from interviews, test scores, and other selection procedures are supported by evidence (such as good job performance)? a. predictabilit y b. validity c. reliability d. accuracy 100. A manager is examining the number of applicants for a job compared to the number of people needed to be hired.

What is this figure called? a. the yield ratio b. the selection ratio c. the base ratio d. the validity coefficient 101. What does a selection ratio of .9 mean? a. It means 90 percent of the applicants applying to the position will be hired. b. It means 10 percent of the applicants applying to the position will be hired. c. It means 9 percent of the applicants applying to the position will be hired. d. It means 1 percent of the applicants applying to the position will be hired.

102. What type of interview provides the greatest consistency or standardization with respect to the questions asked? a. a structured interview b. a standardized interview c. a nondirective interview d. an unstructured interview Scenario 6.2 Computer Direct Inc. is a mid-sized technology firm that specializes in designing, manufacturing, and selling computers.

The organization staff complement is very diverse, and most of the company’s employees are in the development and design, sales, and marketing departments. Computer Direct has been using only one method to make recruitment decisions for all of its employees, from managerial to technical to clerical. Data is gathered on each candidate, and a committee assigns scores to candidates based on its understanding of the job. Candidates, however, are not given the opportunity to be tested and hired based on their respective scores. Essentially, decisions are made based on personal judgments.

103. Refer to Scenario 6.2. Which approach best reflects how decisions about recruiting are made at Computer Direct? a. psychological approach b. clinical approach c. statistical approach

d. behavioural approach 104. The “Big Five” factors are related to what type of employment tests? a. cognitive ability tests b. general intelligence tests c. personality tests d. mental awareness tests

105. Define the concepts of reliability and validity.

106. Identify and explain the five primary types of employment tests.

107. Compare and contrast the following four interview approaches: (1) nondirective interview, (2) structured interview, (3) situational interview, and (3) behavioural description interview.

Answer Key 1. True 2. True 3. False 4. True 5. False 6. False 7. True 8. False 9. True 10. False 11. False 12. False 13. False 14. False 15. True 16. True 17. False 18. True 19. False 20. True 21. True 22. True 23. False 24. False 25. True 26. True 27. True

28. True 29. False 30. True 31. True 32. True 33. True 34. False 35. False 36. True 37. True 38. False 39. True 40. False 41. True 42. True 43. False 44. True 45. False 46. True 47. True 48. True 49. True 50. False 51. True 52. False 53. True 54. c 55. d

56. c 57. b 58. b 59. c 60. b 61. d 62. d 63. b 64. a 65. b 66. c 67. c 68. c 69. b 70. a 71. d 72. d 73. d 74. a 75. d 76. b 77. b 78. b 79. b 80. c 81. a 82. c 83. c

84. d 85. b 86. c 87. a 88. d 89. a 90. c 91. b 92. c 93. c 94. c 95. c 96. c 97. b 98. a 99. b 100. b 101. a 102. a 103. b 104. c 105. Reliability describes the degree to which interviews, tests, and other selection procedures yield comparable data over a period of time. For example, if an interviewer judges the capabilities of a group of applicants differently today than yesterday, his or her judgment is unreliable. Reliability can also be determined by interrater reliability, or agreement between two or more raters. Selection decision data that are unreliable cannot be used as predictors of job success.

Validity refers to what a selection procedure measures and how well it measures it. For personnel selection, validity indicates the extent to which data from a selection procedure are predictive of job performance or other relevant criteria.

In order for a test to be valid, it must also be reliable. However, reliability does not assure validity.

106. ∙ Cognitive ability tests measure mental capabilities such as general intelligence, verbal fluency, numerical ability, and reasoning ability. ∙ Personality and interest inventories measure dispositional characteristics such as extroversion, inquisitiveness, and dependability. ∙ Physical ability tests assess a job candidate’s physical abilities such as strength and endurance.

∙ Job knowledge tests are a type of achievement test designed to measure a person’s level of understanding about a particular job. ∙ Work sample tests, or job sample tests, require the job applicant to perform tasks that are actually part of the work required on the job.

107. In a nondirective interview, the interviewer allows the applicant the maximum amount of freedom in determining the course of the discussion. The interviewer asks broad, general questions, but permits the applicant to talk freely with little interruption. The greater freedom afforded to the applicant in the nondirective interview is particularly valuable in bringing to the interviewer’s attention any information, attitudes, or feelings that may be concealed by a more structured approach. However, the unstructured nature of this approach limits the consistency of information provided and makes it difficult to cross-check agreement with other interviewers. Thus, the reliability and validity of the nondirective approach is suspect.

The structured interview has a number of standard questions asked of each job applicant. Questions are job-related based upon job analysis. Since applicants are asked identical questions, the structured interview provides a more consistent basis for evaluating job candidates. This interview strives to maximize the validity of selection decisions.

With the situational interview, the applicant is given a hypothetical incident and asked to respond how he or she would handle it. Responses are evaluated relative to pre-established standards.

Behavioural description interviews focus on actual work experiences in the applicant’s past. The behavioural questions ask the applicant what he or she actually did in a given situation. This interviewing approach assumes that past performance is the best predictor of future performance.

Indicate whether the statement is true or false.

1. Behaviour modification seeks to gradually shape trainee behaviour using reinforcement. a. True b. False 2. Most organizations choose and implement training programs based on their overall strategic objectives. a. True b. False 3. Apprenticeship programs are an extension of OJT that provide on- and off-the-job instruction. a. True b. False 4. The systems approach to training includes four phases: job analysis, job design, implementation, and evaluation. a. True b. False 5. Trainee readiness refers to both maturity and experience factors in a trainee’s background. a. True b. False 6. Case studies are a useful method of giving participants experience at analyzing and synthesizing facts. a. True b. False 7. Training plays a central role in strengthening the competencies that give organizations their competitive advantage. a. True

b. False 8. Although important in determining training program success, organizations conduct a needs assessment less than half the time before initiating a training program. a. True b. False 9. Classroom instruction is cost-effective because it allows the maximum number of trainees to be handled by the minimum number of instructors. a. True b. False 10. Person analysis involves determining what the content of the training program should be, based on a study of the tasks or duties involved in the job. a. True b. False 11. Trainees are better able to learn if they can connect the new material with things that are already familiar to them. a. True b. False 12. By increasing the anxiety of new employees, orientation efforts are more likely to be successful due to the effort/anxiety curve. a. True b. False 13. Orientation is an ongoing process. a. True b. False 14. The HR department has the most important role in the orientation program because it is the centre of the organization– employee interface. a. True b. False 15. The three different types of training needs analysis are organizational analysis, job knowledge analysis, and person analysis. a. True b. False 16. Training methods all tend to utilize similar learning principles. a. True b. False 17. Benchmarking is concerned with measuring employee retention of training materials at specific points in time. a. True b. False 18. Using participant reaction to evaluate training is the best way to determine training effectiveness. a. True b. False

19. Performance-centred objectives are not widely used due to concerns about the potential for biased evaluation of results. a. True b. False 20. Knowledge of the subject is the most critical characteristic that determines instructor effectiveness. a. True b. False 21. Data such as direct and indirect labour costs and unemployment rates determine an organization’s training needs. a. True b. False 22. Team building is a relatively simple process. a. True b. False 23. Most executives believe that formal orientation programs are effective in helping to retain and motivate employees. a. True b. False 24. Behaviour modelling is an approach that demonstrates desired behaviour and gives trainees the chance to practise and role-play those behaviours and receive feedback. a. True b. False 25. “We learn best by watching” summarizes the learning principle known as “modelling.” a. True b. False 26. Feedback to trainees is important for motivational purposes as well as knowledge of results. a. True b. False 27. Contrary to common thought, progressive organizations allow the supervisor to play a minor role in the new employee orientation process, since orientation is primarily the responsibility of the HR department. a. True b. False 28. Behaviour modelling appears to work in helping managers to interact with employees, introduce change, and handle discipline. a. True b. False 29. Organization analysis includes broad forces that impact the effectiveness of employees, such as mergers and acquisitions, technological change, and globalization. a. True b. False 30. The benefits of an orientation program include lower turnover, improved morale, and facilitation of learning.

a. True b. False 31. The distinction between simulation and simple computer-based training is blurring due to advances in information technology. a. True b. False 32. A solid training program should begin with effective design. a. True b. False 33. Psychological principles of learning refer to the characteristics of training programs that help employees grasp new material, make sense of it in their own lives, and transfer it back to the job. a. True b. False 34. Most employees prefer the freedom and flexibility of e-learning to traditional classroom training. a. True b. False 35. Managers should focus considerable efforts on the training topic, rather than the individual learning needs of the trainee, to create an optimal training environment that is conducive to learning. a. True b. False 36. The systems approach to training involves (1) needs assessment, (2) program design, (3) implementation, and (4) evaluation. a. True b. False 37. “Transfer of training” relates to the training evaluation criterion “behaviour.” a. True b. False 38. Internship programs benefit students, but rarely benefit employers. a. True b. False 39. The use of orientation checklists compels a supervisor to be more attentive to each employee. a. True b. False 40. Although on-the-job training (OJT) is generally regarded as the most effective means of facilitating learning at the workplace, it is often the most poorly implemented. a. True b. False 41. Orientation is the formal process of familiarizing new employees with the organization, their job, and their work unit. a. True

b. False 42. Due to its importance to planning future training initiatives, most organizations go to great lengths to accurately evaluate training programs. a. True b. False 43. Depending on the activities involved, classroom instruction is often referred to as “self-directed learning.” a. True b. False 44. The success of any training effort depends more upon the content of the program than on the teaching skills and personal characteristics of those conducting the training. a. True b. False 45. The primary purpose in training employees is to help them get socialized to the organization. a. True b. False 46. Role-playing consists of assuming the attitudes and behaviour of others, often a supervisor and a subordinate. a. True b. False 47. Orientation programs stress the “why” rather than the “what,” including the philosophy behind the organization’s rules. a. True b. False 48. The task analysis portion of organization analysis is shifting from emphasis on a fixed schedule of tasks to a flexible set of competencies needed for performance. a. True b. False 49. Behavioural and process skills needed for team training need to be acquired through participative exercises. a. True b. False 50. Practising job tasks enables the trainee to forget about distinct behaviours and become proficient on the subtleties of how they are used. a. True b. False 51. Training is oriented towards broadening employees’ individual skills for future responsibility. a. True b. False 52. Employees in similar jobs usually have similar levels of motivation with respect to learning. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

53. In assessing the effectiveness of a training program, which of the following is the most useful information for an HR manager to use? a. how many employees signed up for it b. the average employee reaction to it c. how it helped to reduce wasted materials d. the costs for running it 54. What is a common index used to calculate the benefits of a training program relative to its costs? a. cost of living index b. return on capital c. return on investment d. productivity index 55. Which of the following best describes orientation programs? a. The impact of an orientation program on new employees does not last a long time. b. There is no need for coordination between line and staff managers when it comes to orientation programs. c. Careful planning of orientation activities is essential. d. The most popular approach to orientation involves allowing new employees to be oriented by their peers.

56. Which training method is often used to train personnel to operate aircraft, spacecraft, and other highly technical and expensive equipment? a. the vestibule method b. the classroom method c. the simulation method d. the apprenticeship method 57. What is the most common training delivery method for formally training employees? a. traditional classroom instruction b. internship training c. online instruction d. on-the-job training 58. Which of the following best describes the strategic approach to training? a. It is the most cost-effective approach. b. It ensures that training investments have maximum impact on performance. c. It is called development. d. It includes the process of job analysis.

59. What are the steps in behaviour modelling? a. design, learning points, reinforcement, and feedback b. learning points, implementation, role-play, and feedback c. design, implementation, role-play, and feedback d. learning points, modelling, role-play, and feedback

60. Organization B is very keen to get the most benefit out of its training budgets and efforts. Which of the following plans is most likely to help Organization B’s employees utilize their new training when they are back at their desks? a. have employees hand in summaries of how they have used their training in their job b. devote a large part of the budget to vestibule training c. have the training mimic the actual work situation as closely as possible; train employees on how to implement their new training even when they are faced with roadblocks d. have employees exposed to both massed and distributed practice 61. A combination of on-the-job training, seminars, conferences, classroom instruction, and role-playing would be a good assortment of learning methods for which group of employees? a. interns b. new managers c. experienced front-line staff d. new employees at all levels 62. In which stage of needs assessment are issues such as technological change and globalization assessed in training programs? a. task analysis b. environmental analysis c. person analysis d. organization analysis 63. What is the main issue with organizations putting too much weight on the “reactions” aspect of training evaluation? a. Unless the training is linked to organizational strategy, it is not informative that reactions were good. b. Positive reaction data may not mean the training was effective. c. This information has to be integrated into an analysis with the other four phases of evaluation. d. This aspect of training is not measurable.

64. As part of his training, Alexandria had to assume the attitudes and behaviours of others. Which training method is evident in this example? a. blended learning b. role-playing c. simulation study d. case study 65. Which of the following organizations would be well-suited and likely to benefit from the implementation of “crosstraining” of teams? a. a document delivery company that has drivers and pilots who operate various trucks and aircraft b. a robotics company that needs each employee to have specific and high level skills and training c. an auto parts manufacturing company that has an assembly line where employees are likely to get bored d. a photocopy shop where there are various tasks to be performed all with one machine 66. Which learning method would be well-suited to teach air-traffic controllers how use the radar display? a. the simulation method b. programmed instruction c. audiovisual learning d. on-the-job training 67. In the design of training programs, what should instructional objectives centre on?

a. performance b. attitudes c. financial outcomes d. social outcomes 68. What position is most likely to benefit from implementing an ethics training program? a. an air traffic controller b. a weather forecaster c. a buyer of leather goods for a leading national retailer d. an HR manager 69. In which stage in the training needs assessment are job descriptions and job specifications reviewed? a. task analysis b. person analysis c. organizational analysis d. job analysis 70. What is the relationship of goal-setting to feedback and reinforcement? a. Goal setting and feedback are both important principles of learning. b. Goal setting is useless unless employees know how they performed through constant feedback. c. Goal-setting and feedback are symbiotic. d. Goal setting and feedback are reciprocal in nature.

Scenario 7.2 Blake Windows & Doors Inc. installs and repairs doors and windows for Green Park Homes. When the firm started back in the 1980s, its operations were based only in Vancouver. Today, Blake is the main contractor for Green Park Homes across British Columbia. Employees with Blake work long hours, especially when new subdivisions are being built. The company now wants to increase its staff complement to help deal with increasing demands while maintaining some work– life balance. Blake found that employees from agencies tend to need too much hands-on training, which is costly, and if they do have some experience it is very costly to hire them due to the specific set of skills required.

71. Refer to Scenario 7.2. Assume that on-the-job-training is the best option to help Blake increase its employee base.

Which of the following is NOT a drawback of on-the-job-training? a. the lack of a well-structured environment b. poor training skills on the part of the mangers c. the absence of well-defined job performance criteria d. hands-on experience and opportunities for trainers to build good relationships with new employees 72. Which of the following is the simplest method to evaluate a training program? a. learning b. reactions c. behaviour d. results 73. ABC Corporation measures its own services and practices against the recognized leaders in the industry in order to identify areas for improvement. What is this process called? a. benchmarking b. strategic imitation

c. modelling d. environmental analysis 74. As part of his training for a new manufacturing process, Lee Li had to attend classroom sessions taught by an instructor, as well as online sessions that included video recordings and a discussion forum. What method of training Lee has experienced? a. self-directed training b. blended learning c. simulated training d. e-learning Scenario 7.2 Blake Windows & Doors Inc. installs and repairs doors and windows for Green Park Homes. When the firm started back in the 1980s, its operations were based only in Vancouver. Today, Blake is the main contractor for Green Park Homes across British Columbia. Employees with Blake work long hours, especially when new subdivisions are being built. The company now wants to increase its staff complement to help deal with increasing demands while maintaining some work– life balance. Blake found that employees from agencies tend to need too much hands-on training, which is costly, and if they do have some experience it is very costly to hire them due to the specific set of skills required.

75. Refer to Scenario 7.2. Which of the following is the most appropriate method for developing workers who can effectively help Blake Windows & Doors deal with its increasing commitments while keeping payroll and training costs down? a. internship programs b. agency recruitment with more in-house training c. apprenticeship programs d. mentorship programs 76. When designers of training programs attempt to make conditions in the training program come as close as possible to those on the job, which of the following are they attempting to improve? a. reactions b. readiness c. transfer d. motivation Scenario 7.2 Blake Windows & Doors Inc. installs and repairs doors and windows for Green Park Homes. When the firm started back in the 1980s, its operations were based only in Vancouver. Today, Blake is the main contractor for Green Park Homes across British Columbia. Employees with Blake work long hours, especially when new subdivisions are being built. The company now wants to increase its staff complement to help deal with increasing demands while maintaining some work– life balance. Blake found that employees from agencies tend to need too much hands-on training, which is costly, and if they do have some experience it is very costly to hire them due to the specific set of skills required.

77. Refer to Scenario 7.2. If Blake adopts an apprenticeship program, which of the following is NOT true about how trainees are developed? a. It will occur through off-the-job-training. b. It will occur through on-the-job-training. c. It will occur through instruction and training. d. It will occur through an internship program.

78. Organization analysis, task analysis, and person analysis are all part of which phase of the strategic and systemic approach? a. the training and development phase b. the needs assessment phase c. the analysis phase d. the evaluation phase Scenario 7.1 Accounting Power Inc. is a Canadian employment agency that provides professional accounting services to various businesses across the country. In the last couple of years, the firm has been slowly losing clients, which is impacting its bottom line. Interviews done with some clients revealed that Accounting Power Inc. employees are not as sharp as they used to be and, lately, there have been too many inconsistencies and errors with their work. In the last recession, managers could not justify how the training was adding value to the agency. These programs were not viewed as strategic imperatives and most of them were cut.

79. Refer to Scenario 7.1. Accounting Power Inc. is losing its clients because it did not accurately do which of the following? a. design the right training programs to help its employees succeed b. hire the right trainers to run the programs c. assess the extent to which training programs improve learning and behaviour on the job and eventually impact their performance d. evaluate participants’ reactions 80. An effective onboarding program can best help with which of the following issues? a. culture shock b. exit interviews c. training transfer d. pay banding 81. In determining training needs, which statement best describes person analysis? a. It has shifted from a fixed sequence of tasks to a set of competencies. b. It involves self-improvement and self-directed training. c. It helps organizations decide which employees need training. d. It examines the external labour market for needed skills.

82. Which technique for training managers emphasizes handling real-life employee problems and receiving immediate feedback? a. the leaderless group b. the management game c. the case study d. behaviour modelling 83. Omega Organization is going through a very detailed process of looking at all the tasks or duties included in a job. It will then list all the steps performed by the employee to complete each task, and then look to examine the skills and knowledge necessary for the job. Which process is Omega Organization performing? a. task analysis b. job analysis

c. person analysis d. competency analysis 84. In terms of training techniques, on which of the following principles does behaviour modification operate? a. A behaviour that is rewarded will be exhibited more frequently. b. Equity and fairness are important motivators. c. Employees must change their behaviours to ensure organizational success. d. Successful trainers modify employees’ behaviours.

85. Organization W has adopted a new training strategy that it learned about because its very successful main competitor is also using this training strategy. Which of the following statements best captures this situation? a. This is very unusual; most organizations link training directly to their organizational goals. b. This is very unusual; data show that most organizations do not consider the training initiatives of others in their decisions. c. This is not significantly unusual; many organizations copy training strategy used by competitors. d. This is unusual; most organizations at least make attempts to link their training initiatives to their own organizational strategy.

86. What are the two key factors that affect the success of those who are identified to receive training? a. trainee readiness and trainee motivation b. trainee capacity and trainee motivation c. trainee readiness and trainee capacity d. trainee participation and trainee capacity 87. What do we call the process of grooming an employee to take over the supervisor’s job through gaining experience in handling important functions of the job? a. caretaking b. coaching c. understudy assignment d. role modelling 88. Microsoft has created hundreds of audio and video clips that the company’s sales professionals can download on their mobile devices whenever the need arises. Which learning method is illustrated in this case? a. the simulation method b. blended learning c. audiovisual learning d. just-in-time training 89. What are the phases of the systemic/strategic model of training? a. needs assessment, design, implementation, and evaluation b. planning, design, needs assessment, and evaluation c. design, needs assessment, management, and evaluation d. design, needs assessment, implementation, and evaluation 90. Which of the following is the most common method used for training non-managerial employees? a. classroom training b. on-the-job training c. computer-based instruction

d. apprenticeships 91. At which stage in the training program development process is content of the training program determined? a. job analysis b. individual analysis c. task analysis d. organization analysis Scenario 7.1 Accounting Power Inc. is a Canadian employment agency that provides professional accounting services to various businesses across the country. In the last couple of years, the firm has been slowly losing clients, which is impacting its bottom line. Interviews done with some clients revealed that Accounting Power Inc. employees are not as sharp as they used to be and, lately, there have been too many inconsistencies and errors with their work. In the last recession, managers could not justify how the training was adding value to the agency. These programs were not viewed as strategic imperatives and most of them were cut.

92. Refer to Scenario 7.1. The combination of these four criteria—reactions, learning, behaviour, and results—can give a total picture of the training program to help managers decide all of the following EXCEPT which one? a. where problem areas lie b. what to change about the program c. whether to continue with a program d. the method by which to evaluate the program 93. Which of the following statements best describes cross-training? a. There is a need for integrated teams to make it successful. b. Team rewards lay the basis for its implementation. c. It works best with departments that are integrated. d. It represents a shift from assembly-line production to flexible production.

94. Organization Z is attempting to initiate an on-the-job training program. Like many organizations, the company is aware that it suffers from a lack of well-defined job performance criteria. Which of the following is the best suggestion for Organization Z to overcome this problem and have a successful program? a. Develop realistic goals, a training schedule, and periodic evaluations. b. Hire trainers who have been in a similar situation and have been successful. c. Wait until proper job and organizational analysis can be done before implementing the training program. d. Use a different type of training.

95. Which term refers to assessing the sets of skills and knowledge employees need to be successful, particularly for decision-oriented and knowledge-intensive jobs? a. organizational assessment b. job assessment c. individual assessment d. competency assessment 96. The greatest proportion of training is spent on which groups of employees? a. executives and senior managers b. temporary and pat-time workers c. rank-and-file employees and supervisors

d. senior managers and middle managers 97. Which of the following training methods is the most poorly implemented? a. classroom instruction b. distributed learning c. mass learning d. on-the-job training 98. Which of the following tasks would be most conducive to whole-versus-part learning? a. for a tennis professional: teaching a tennis lesson b. for a cake decorator: putting a customer’s name on a birthday cake c. for a shoe salesperson: finding a certain pair of shoes in the stockroom d. for a grocery store cashier: looking up the register code for a grocery item 99. Which of the following is NOT part of a needs assessment in developing training programs? a. task analysis b. environmental analysis c. person analysis d. organization analysis Scenario 7.1 Accounting Power Inc. is a Canadian employment agency that provides professional accounting services to various businesses across the country. In the last couple of years, the firm has been slowly losing clients, which is impacting its bottom line. Interviews done with some clients revealed that Accounting Power Inc. employees are not as sharp as they used to be and, lately, there have been too many inconsistencies and errors with their work. In the last recession, managers could not justify how the training was adding value to the agency. These programs were not viewed as strategic imperatives and most of them were cut.

100. Refer to Scenario 7.1. If Accounting Power Inc. wanted to evaluate its training programs, what are the four basic criteria for such an evaluation? a. reactions, learning, behaviour, and results b. trainee readiness, aptitude to learn, feedback, and return on investment c. reactions, behaviour, feedback, and trainee readiness d. behaviour, trainee readiness, ability to learn, and attitude about learning 101. Which of the following is the best example of an assessment of the “learning” criterion in a training evaluation? a. testing grocery store clerks on training program knowledge before and after the training program b. having trainees fill in forms that describe their learning experience and whether or not the information is transferring to the workplace c. having employees fill out a training effectiveness index d. evaluating scores on training tests 102. What is the primary reason why organizations train new employees? a. to increase their knowledge, skill, and ability level b. to help trainees achieve personal career goals c. to comply with federal regulations d. to improve the work environment

103. What is the main difference between training and development? a. Training is more important than development. b. Development is a broader term used to describe learning processes in an organization. c. Development is more future-oriented and broadly focused. d. Development is more narrowly focused.

104. Identify and briefly describe the four criteria available to evaluate training.

105. On-the-job training (OJT) has three drawbacks. Briefly discuss these and the possible solutions suggested by experts in the field.

106. Explain the strategic approach to training.

Answer Key 1. True 2. False 3. True 4. False 5. True 6. True 7. True 8. True 9. True 10. False 11. True 12. False 13. True 14. False 15. False 16. False 17. False 18. False 19. False 20. False 21. False 22. False 23. True 24. True 25. True 26. True 27. False

28. True 29. True 30. True 31. True 32. False 33. True 34. False 35. False 36. True 37. True 38. False 39. True 40. True 41. True 42. False 43. False 44. False 45. False 46. True 47. True 48. True 49. True 50. True 51. False 52. False 53. c 54. c 55. c

56. c 57. a 58. b 59. d 60. c 61. b 62. d 63. b 64. b 65. c 66. a 67. a 68. c 69. a 70. a 71. d 72. b 73. a 74. b 75. b 76. c 77. d 78. b 79. c 80. a 81. c 82. d 83. a

84. a 85. c 86. a 87. c 88. d 89. a 90. b 91. c 92. d 93. d 94. a 95. d 96. c 97. d 98. a 99. b 100. a 101. a 102. a 103. c 104. (1) Reactions: One of the simplest and most common approaches to training evaluation is assessing participant reactions. Satisfied trainees will be more likely to want to focus on training principles and to utilize the information on the job. Potential questions include: Did you like this program? What suggestions do you have for improving the program?

(2) Learning: Involves testing knowledge and skills before a training program and then using this information as a baseline after training to determine improvement. It is also important to uncover “why” learning took place by revisiting the learning principles utilized. (3) Behaviour: Assesses transfer of training—that is, whether the principles learned are transferred back to the job. There are several methods for assessing transfer of learned skills back to the job—such as observations of trainees once they return to their regular positions, interviews with the trainees’ managers, and so forth.

(4) Results: Involves assessing the “bottom-line” results achieved as a result of the training, such as increased productivity, fewer employee complaints, decreased costs, and profitability.

105. Although all types of organizations use it, OJT is often one of the most poorly implemented training methods. Three common drawbacks are the lack of a well-structured training environment, poor training skills of supervisors, and the absence of well-defined job performance criteria. To overcome these problems, training experts suggest the following: develop realistic goals and/or measures for each OJT area; plan a specific training schedule for each trainee, including setting periods for evaluation and feedback; help supervisors to establish a nonthreatening atmosphere that is conducive to

learning; and conduct periodic evaluations, after training is completed, to prevent regression.

106. The strategic approach to training makes the critical connection between strategic objectives and training programs.

The systems approach involves four phases: needs assessment, program design, implementation, and evaluation.

Needs assessment involves (1) organization analysis, by which managers decide where training is needed, how it connects with goals, and what resources will be used; (2) task analysis, by which managers identify the KSAOs that are needed; and (3) person analysis, which is identifying who needs training and who does not.

Program design involves determining program objectives, preparing the readiness and motivation of trainees, and choosing instructors.

Implementation involves delivery of the training and can be done in a number of ways, or a combination of them. Possible delivery methods include on-the-job training, apprenticeships, internships, programmed instruction, computer-based instruction, simulations, seminars, case studies, management games, and behaviour modelling.

Evaluation consists of reactions, learning, behaviour change, and results. Reactions involve assessing the trainees’ comments and feedback about the program. Learning involves assessing whether participants actually learned anything from the program. Behaviour refers to application of principles from the training onto the job. Results refer to bottom-line utility and productivity improvements achieved by conducting the program.

Indicate whether the statement is true or false.

1. Behavioural methods are often useful for providing employees with developmental feedback. a. True b. False 2. Organizational politics can introduce bias into even the most fairly administered performance evaluations. a. True b. False 3. “Management-by-objectives” is one of the best performance evaluation approaches to use if a company’s production system is surrounded by uncertainty and variability. a. True b. False 4. Developmental approaches to performance evaluation recognize that a manager’s purpose is to improve job behaviours, not just evaluate past performance. a. True b. False 5. One weakness of many performance evaluation programs is that supervisors are not adequately trained; consequently, they provide little meaningful feedback to subordinates. a. True b. False 6. Ineffective handling of performance evaluations may result in court cases or other legal action. a. True b. False 7. Reliability refers to measures that are consistent across raters and over time. a. True

b. False 8. The best evaluation method to use depends upon the purpose of the evaluation. a. True b. False 9. One of the primary strengths of results evaluations is that they encourage employees to focus on long-term performance indicators. a. True b. False 10. Requiring raters to use a forced distribution reduces the chance of leniency or strictness errors. a. True b. False 11. Performance is a function of ability, motivation, and environment. a. True b. False 12. Criterion deficiency occurs when performance standards focus on a single criterion to the exclusion of other important but less quantifiable performance dimensions. a. True b. False 13. Because the evaluation interview is for developmental purposes, the interviewer rather than the employee should spend the majority of the time sharing information. a. True b. False 14. A significant weakness of 360-degree evaluation is the complexity associated with combining all the responses. a. True b. False 15. Most performance evaluations focus on long-term improvement, rather than short-term achievements. a. True b. False 16. Self-assessment is useful to ensure the employee knows against what criteria he or she is evaluated, thus eliminating surprises. a. True b. False 17. Administrative purposes for performance evaluations include documenting personnel decisions and identifying individual training needs. a. True b. False 18. Graphic rating scales include sets of statements between which the rater must choose, such as “works hard” vs. “works quickly.” a. True b. False

19. A team evaluation approach is well suited for a company advocating a total-quality management philosophy. a. True b. False 20. Feedback is most useful when it is immediate and general in nature. a. True b. False 21. Peer evaluations should be used primarily for developmental purposes. a. True b. False 22. The critical incident method facilitates employee feedback and development. a. True b. False 23. Developmental purposes for performance evaluation include validating selection criteria and meeting legal requirements. a. True b. False 24. Internal customers are the most important source of valuable performance information for both developmental and administrative purposes. a. True b. False 25. Criterion contamination occurs when factors outside an employee’s control influence his or her performance. a. True b. False 26. Surprisingly, self-evaluations are typically equal to or lower than the traditional approach to evaluations where a manager fills them out. a. True b. False 27. Depending on the industry, managers should provide performance feedback on an annual basis. a. True b. False 28. Measurable and quantifiable performance objectives are requirements for a successful MBO program. a. True b. False 29. Most organizations that implement 360-degree evaluation start with an exclusive focus on development. a. True b. False 30. One of the primary strengths of results evaluations is that they are not likely to suffer from contamination by external factors that employees cannot influence. a. True

b. False 31. Trait evaluation approaches continue to be the most popular systems despite their inherent subjectivity. a. True b. False 32. A major drawback of the essay method is that composing an essay that attempts to cover all of an employee’s essential characteristics is very time-consuming. a. True b. False 33. One of the disadvantages of the critical incident method is that it tends to lead to recency error. a. True b. False 34. The similar-to-me error occurs when appraisers inflate the evaluations of people with whom they have something in common. a. True b. False 35. An error of central tendency is a performance-rating error in which all employees are more or less rated as average. a. True b. False 36. One of the benefits of the forced-choice method is the relatively small cost of establishing and maintaining its validity. a. True b. False 37. Contrast errors are most likely when raters are required to rank employees in order from the best to the poorest. a. True b. False 38. One disadvantage of peer evaluations is that they furnish less valid information than evaluations by superiors. a. True b. False 39. Peer evaluations are useful for ratings on dimensions such as leadership and interpersonal skills. a. True b. False 40. Results evaluations give employees more responsibility for outcomes and discretion over how to accomplish them. a. True b. False 41. The balanced scorecard approach integrates four categories: financial, customer, processes, and outcomes. a. True b. False 42. In general, performance evaluation can be classified as either administrative or developmental. a. True

b. False 43. Feedback training for raters should include communicating effectively, diagnosing causes of performance problems, and setting goals. a. True b. False 44. Criterion contamination occurs when correlations between two raters of an employee are inconsistent. a. True b. False 45. Dividing the evaluation interview into two sessions, one for the performance review and the other for the employee’s growth plans, is a good strategy to improve communication between the parties. a. True b. False 46. In most instances, one person can easily observe and evaluate an employee’s performance. a. True b. False 47. The balanced scorecard approach translates broad goals into increasingly specific goals, so that individuals can see how their performance relates to the overall performance of the firm. a. True b. False 48. The similar-to-me error, like contrast, results in less-than-accurate performance ratings, but would not be considered discriminatory. a. True b. False 49. Results-oriented approaches are the most widely used, despite their subjectivity. a. True b. False 50. The main advantage of a BARS is that it requires minimal time and effort to develop. a. True b. False 51. If an evaluation program is used to provide a written evaluation for salary action and at the same time used as a means of motivating employees to improve upon their performance, the administrative and developmental purposes may be in conflict. a. True b. False 52. Self-evaluations should be used primarily for developmental purposes. a. True b. False 53. Using the evaluation system for compensation decisions rather than developmental purposes may affect how the rater evaluates the employee. a. True

b. False 54. Team evaluations are a collection of the individual evaluations of a work unit. a. True b. False 55. A potential drawback of a trait-oriented performance evaluation is that it may be biased and subjective. a. True b. False 56. In order to increase employee motivation levels, written performance standards should be objective but not defined in quantifiable and measurable terms. a. True b. False 57. Ideally, performance evaluations should be linked to the strategic objectives of the organization. a. True b. False 58. A performance evaluation program can be used for many purposes, including salary recommendations and the retention and termination of employees. a. True b. False 59. Three types of evaluation interviews are tell-and-sell, tell-and-listen, and problem-solving. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

60. What are four basic elements that must be considered when establishing performance standards? a. criterion deficiency, criterion contamination, strategic relevance, and reliability b. feedback, accuracy, reliability, and validity c. supervisory ratings, reliability, validity, and peer evaluations d. performance ratings, peer evaluations, reliability and validity 61. Magee was rated higher than she deserved by her supervisor; her supervisor wanted to look good in the eyes of her own superiors. Which of the following is illustrated in this example? a. criterion deficiency b. criterion exaggeration c. criterion contamination d. organizational politics 62. Of the following interview methods, which is the most proactive on the part of the interviewer? a. tell-and-listen b. tell-and-sell c. problem solving d. essay

63. Some organizations ask managers to place a percentage of their employees in the bottom performance category on every performance evaluation exercise, which in some cases may mean they are fired. Which type of performance evaluation method does this exemplify? a. forced-distribution system b. checklist method c. percent method d. forced-choice method 64. Which of the following processes would help to improve the consistency and reliability of employee ratings? a. job evaluations b. external validation c. strategic rewards d. calibration 65. Why is performance evaluation important? a. because it is key to the validation of selection procedures, which are the foundation of all HR practices b. because all organizations need to weed out lower-performing individuals at a rate of about 10 percent of employees per annum c. because employees need to know that they are being evaluated in order to perform at an appropriate level d. because the success of the entire HR program depends on knowing how the performance of employees compares with the goals established for them Scenario 8.3 Canadian Fasteners Inc. has recently implemented a human resource (HR) system that assists with the recruitment and selection process, as well as administering a pension and benefits program. Included with these programs are training and development programs as well as yearly performance evaluations for both managers and agents who are jointly responsible for bringing in new accounts and maintaining existing ones. While these performance evaluations are done each year, mangers and agents do not receive feedback unless they are unhappy with their salary increases or bonuses.

However, HR is now pushing the need for ongoing feedback as it is a key component of its compensation process.

66. Refer to Scenario 8.3. Canadian Fasteners wants to embark on feedback sessions. Which of the following is NOT one of the key points to address? a. direct the feedback toward behaviour the employee can control b. give specific examples of desirable and undesirable behaviours c. provide timely feedback d. focus feedback on the person, not behaviour 67. Which of the following are the two primary purposes of performance evaluations? a. informative and developmental purposes b. administrative and developmental purposes c. administrative and informative purposes d. managerial and administrative purposes 68. Why are self-evaluations better for developmental versus administrative purposes? a. because the evaluations are inflated because employees tend to rate themselves highly b. because the evaluations are accurate

c. because employees prefer using them for developmental purposes d. because legal challenges would be difficult to successfully defend 69. ABC Corporation uses several raters to assess their employees’ performance, after which the company does correlation analyses on the various ratings. What is ABC Corporation trying to figure out? a. the level of contamination of the ratings b. whether the ratings are deficient c. the rewards that will be associated with good performance d. the reliability of the ratings Scenario 8.1 Med Supplies Ltd. is a manufacturer and distributor of over-the-counter medical devices such as blood pressure monitors.

Med Supplies relies heavily on its sales team to push these products to pharmacies and medical clinics across Canada.

Sales reps are paid a yearly bonus based on the team’s performance, coupled with annual performance evaluations done by managers. Over the last three years, they have been paid bonuses based on the previous year’s performance if it is similar in dollar figure despite losing shelf space in stores or declining individual performances. The managers claim that they do not have the time to do the evaluations, but their superiors think these evaluations are key and need to be the link between employees’ goals and the organization’s objectives.

70. Refer to Scenario 8.1. The VP Sales suggests the use of peer evaluations to ensure that each member of the team pulls his or her weight. Which of the following is NOT a reason why peer evaluations are not frequently used? a. Those receiving low ratings might retaliate against their peers. b. Peer ratings are simply a popularity contest. c. Managers want to give up control over the evaluation process. d. Peers rely on stereotypes in ratings.

71. Which of the following methods require an appraiser to rate the degree to which the employee possesses a trait or characteristic? a. behaviourally anchored rating scale b. graphic rating scale c. forced-choice method d. critical incident method 72. Performance evaluation methods can be broadly classified in which of the following categories of approaches? a. trait, behavioural, and judgmental approaches b. behavioural, judgmental, and results approaches c. behavioural, judgmental, and results approaches d. trait, behavioural, and results approaches 73. Which of the following is an accurate listing of the factors that affect performance? a. motivation, organizational culture, and leadership factors b. motivation, environment, and ability factors c. organizational culture, motivation, and ability factors d. ability, job design, and motivation factors 74. The evaluation interview should be divided into two sessions. What should those two sessions contain?

a. positive comments and negative comments b. establishing performance standards and reviewing performance c. performance review and compensation discussion d. performance review and employee growth plans 75. What is the foundation for performance standards in the development of effective performance management systems? a. the knowledge and experience of HR managers b. feedback from customers c. job-related requirements derived from a job analysis d. job evaluations 76. In developing a new performance evaluation system, Organization C made an evaluation plan, decided who would be doing the appraising and how it would be done, and even included evaluation training. Which one of the following is an important step that Organization C missed? a. clearly communicating in advance the company’s plans for employees who do not meet standards. b. gaining support from top management, which should occur near the beginning of the process c. informing employees how the process would go to alleviate anxiety d. examining the performance standards through job analysis 77. Which of the following is NOT a developmental purpose of performance evaluation? a. meeting legal requirements b. providing performance feedback c. improving communication d. identifying an individual’s strengths and weaknesses 78. Which of the following uses critical incidents as examples at different points along the scale? a. the global rating b. the mixed-standard scale c. dimensional rating d. the behaviourally anchored rating scale Scenario 8.2 Jane is manager to 10 direct reports. She is currently concerned that she is perceived as a softy and so she has decided not to give out very many high ratings on this year’s performance evaluation exercise. However, she doesn’t want anyone to be fired either, so she has also decided not to give out any very low ratings.

79. Refer to Scenario 8.2. How can Jane correct for this error? a. by rating the reports highly if they displayed characteristics similar to her own b. by rating everyone leniently c. by collecting critical incidents d. by rating everyone highly 80. Tracy was evaluated by multiple raters in her last job, including her supervisor, customers, peers, and clients. What performance evaluation system was most likely used in this instance? a. whole-team evaluations b. peer evaluations

c. 360-degree feedback d. multiplicative feedback 81. Which of the following performance evaluation methods are considered as the most subjective? a. traits methods b. behavioural methods c. behaviourally anchored rating methods d. results methods Scenario 8.1 Med Supplies Ltd. is a manufacturer and distributor of over-the-counter medical devices such as blood pressure monitors.

Med Supplies relies heavily on its sales team to push these products to pharmacies and medical clinics across Canada.

Sales reps are paid a yearly bonus based on the team’s performance, coupled with annual performance evaluations done by managers. Over the last three years, they have been paid bonuses based on the previous year’s performance if it is similar in dollar figure despite losing shelf space in stores or declining individual performances. The managers claim that they do not have the time to do the evaluations, but their superiors think these evaluations are key and need to be the link between employees’ goals and the organization’s objectives.

82. Refer to Scenario 8.1. Med Supplies should consider using team evaluations to evaluate the team as a whole. Which of the following is true about team evaluations? a. They can help break down barriers and encourage joint effort. b. They make it easier to separate individual contributions. c. They readily identify leadership and interpersonal skills. d. They provide 360-degree feedback.

83. John, an average performer, was inaccurately assessed as excellent because he was compared to Alex, a very poor performer. What type of evaluation error is evident in this example? a. recency error b. halo error c. contrast error d. similar-to-me error 84. How often should performance feedback be delivered? a. It should be done at least annually. b. It depends on the organizational culture, industry, and supervisor’s style. c. It should be done at regular intervals—the more frequent the better. d. It should be an ongoing, regular part of supervisor–subordinate interactions.

85. Which of the following performance evaluation methods involves a mutual agreement of goals and metrics between supervisor and subordinate? a. all behavioural methods b. productivity measures c. forced distribution d. management by objectives 86. Which of the following is an important weakness of 360-degree feedback? a. In cases where feedback is not positive, it has been shown to increase voluntary turnover. b. It is hard to know what to conclude if the evaluation results in conflicting opinions. c. The quality of information is not as good as other types of evaluation systems.

d. The training can be demoralizing because it is so intense.

87. If a performance standard is found to be stable or consistent over time, it is said to be which of the following? a. reliable b. relevant c. steady d. valid 88. Which of the following is an essential component of an evaluation interview? a. It should take place in one session in order to give the employee a complete view of his or her performance. b. The supervisor must discuss changes to the employee’s compensation as a result of his or her performance. c. It is a time for the supervisor to give feedback on past performance and should not be used for developmental purposes. d. It should be held in two segments because the rater must perform the role of both evaluator and counsellor.

89. Which of the following is a major issue surrounding “stretch goals”? a. They demoralize the employee. b. They increase voluntary turnover. c. They could be considered unethical for several reasons. d. They cause disruptive behaviours to the point that they are more costly to the organization than they are financially advantageous.

90. Jay is a polite, helpful, conscientious employee who often helps his fellow auto sales representatives make sales, and is popular with customers due to his customer service orientation. Based on his performance evaluation, which is focused on sales, Jay is being fired because he has not sold enough cars this month. What is the problem at the root of his poor performance evaluation? a. criterion contamination b. lack of reliability c. criterion deficiency d. lack of relevance 91. Which of the following has been shown to be true in court? a. Vague performance standards can be acceptable when clearly written. b. Organizations should have carefully defined and measurable performance standards. c. While performance standards should be somewhat specific, there should be room for individual interpretation. d. Descriptions of traits such as attitude and cooperation are acceptable performance standards.

92. Farah, a waitress at OMG Restaurant, was appraised only on the quality of the food she delivered to the customers.

Which type of problem does this evaluation illustrate? a. criterion deficiency b. criterion reliability c. reliability d. criterion contamination 93. Managers tend to be more open to the use of subordinate evaluations when they are used for which of the following? a. promotional purposes b. regulatory purposes

c. administrative purposes d. developmental purposes 94. What does the strategic relevance of performance evaluations refer to? a. the extent to which individuals tend to maintain a certain level of performance over time b. the extent to which standards capture the entire range of an employee’s responsibilities c. the extent to which standards relate to the overall objectives of the organization d. the extent to which internal and external strategic factors can influence performance 95. Which of the following is the most accurate description of the possible facets of an evaluation interview? a. It should minimize criticism, change the person not the behaviour, and encourage feedback. b. It should change the person not the behaviour, minimize criticism, express appreciation, and invite participation. c. It should ask for a self-assessment, invite participation, express appreciation, and minimize criticism. d. It should ask for a self-assessment, change the person not the behaviour, and encourage feedback.

96. Which of the following appraisal systems is based on the concept that learning helps organizations improve their internal processes and allows individuals to see how their performance ties in with the firm? a. balanced scorecard approach b. 360-degree evaluation c. customer-oriented approach d. management by objectives 97. Max Weber works for ABC Corporation a sales agent. The company uses his actual sales numbers to rate his performance. What performance evaluation method is ABC Corporation using? a. trait method b. behavioural method c. outcome method d. results method 98. Which of the following is NOT an ability factor that may be a source of ineffective performance? a. interpersonal skill b. career ambition c. technical skill d. physical limitation 99. What advantage do peer evaluations have over other types of evaluations? a. Peers may have a more intimate view of the performance of fellow employees. b. Peers don’t have to worry about meeting standards for distributions. c. Peers know the job better than most managers do. d. Peers do not have a conflict of interest over honestly appraising a fellow employee.

100. What is a key disadvantage of behaviourally anchored rating scales? a. They do not involve employee participation. b. They have low content validity. c. They can only be used in the public sector.

d. They require considerable time and effort to develop.

101. The primary objective for performance evaluations at ABC Corporation is to give employees developmental feedback. Which of the following evaluation methods should the HR manager use? a. trait methods b. behavioural methods c. results methods d. attitudinal methods 102. In delivering a performance evaluation interview, Jacqui is taking a listening perspective. She wants to stimulate growth and development by discussing the problems, needs, satisfactions, and dissatisfactions the employee has encountered on the job. What type of performance evaluation interview is Jacqui delivering? a. tell-and-listen b. tell-and-sell c. tell-and-train d. problem-solving 103. Which of the following is NOT an environmental factor that may be a source of ineffective performance? a. rules and policies b. economic conditions c. boredom and lack of ability d. laws and regulations 104. Which of the following is a major advantage of a behaviourally anchored rating scale? a. It has high acceptance rates by employees, management, and unions. b. The rating scale can be used across many jobs. c. It requires a great deal of employee participation, which leads to acceptance. d. It allows the appraiser to observe rather than judge.

105. In order to keep track of employees’ performance, which of the following performance evaluation methods would a supervisor use a log or diary for? a. critical incidents method b. forced-choice method c. essay method d. graphic rating scale Scenario 8.3 Canadian Fasteners Inc. has recently implemented a human resource (HR) system that assists with the recruitment and selection process, as well as administering a pension and benefits program. Included with these programs are training and development programs as well as yearly performance evaluations for both managers and agents who are jointly responsible for bringing in new accounts and maintaining existing ones. While these performance evaluations are done each year, mangers and agents do not receive feedback unless they are unhappy with their salary increases or bonuses.

However, HR is now pushing the need for ongoing feedback as it is a key component of its compensation process.

106. Refer to Scenario 8.3. According to research, which of the following is most accurate about providing feedback? a. Employees who receive no feedback from their supervisors exhibit the least amount of engagement.

b. Feedback is least useful when it is immediate. c. You should only provide positive feedback to employees. d. Feedback should not be specific to a particular situation.

107. Managers often first assume poor performance of subordinates is due to which of the following? a. lack of ability b. pay dissatisfaction c. poor motivation d. poor work?0?life balance 108. The HR managers at Organization M are very keen to tie all their HR practices in with organizational strategy, and performance evaluation is no exception. They would like to make clear the link between individual performance and organizational performance. Which of the following is the best type of evaluation method for the HR managers at Organization M? a. trait-based methods b. results-based methods c. behaviour-based methods d. performance-based methods 109. In delivering a performance evaluation interview, Manuel is attempting to convince his direct report that she needs to be more communicative with her peers about her work. The other aspects of her performance are excellent, so he is willing to provide incentives for her if she can improve in this aspect of her performance. What type of performance evaluation interview is Manuel delivering? a. tell-and-listen b. tell-and-sell c. tell-and-train d. problem-solving Scenario 8.2 Jane is manager to 10 direct reports. She is currently concerned that she is perceived as a softy and so she has decided not to give out very many high ratings on this year’s performance evaluation exercise. However, she doesn’t want anyone to be fired either, so she has also decided not to give out any very low ratings.

110. Refer to Scenario 8.2. Which of the following will Jane’s ratings suffer from? a. similar-to-self bias b. leniency error c. forced distribution d. central tendency error 111. What is the key purpose of performance evaluations when they are used for pay-for-performance decisions? a. signalling purpose b. symbolic purpose c. administrative purpose d. developmental purpose 112. Which of the following is a reason why performance evaluation programs fail? a. Managers use them for administrative purposes. b. Performance standards may not be clear. c. The program is usually based on a job analysis rather than a competency analysis.

d. There is too much employee input into the development of the evaluation program.

113. Suppose the performance evaluations that delivery drivers receive are partially influenced by the fact that some drivers operate in areas where there are major traffic problems while others operate in areas with few traffic problems.

Which of the following would these performance evaluations suffer from? a. criterion contamination b. lack of relevance c. lack of reliability d. rater bias 114. Every time Sandy makes a mistake at work, her manager writes it down in detail in her employee record. Sandy thinks this is a form of harassment. More likely, what is the manager trying to do? a. collect information in order to build a BARS b. substantiate her termination in case Sandy files a complaint c. evaluate her performance d. collect critical incidents 115. What is the most important thing an organization can do to ensure that a performance evaluation process achieves standards that are legally defensible if challenged in courts? a. Use calibration and train the managers on how to deliver feedback. b. Make sure the tool is reliable. c. Base the standards on a sound job analysis and make sure all involved know what the standards are. d. Make sure managers are not biased in their delivery of evaluation feedback.

116. Suppose the performance evaluations that salespeople receive are based solely on sales revenue to the exclusion of other important factors. Which of the following would these performance evaluations suffer from? a. criterion contamination b. lack of reliability c. criterion deficiency d. lack of criterion relevance 117. Which of the following are peer evaluations best suited for? a. administrative purposes b. developmental purposes c. strategic purposes d. budgetary purposes Scenario 8.3 Canadian Fasteners Inc. has recently implemented a human resource (HR) system that assists with the recruitment and selection process, as well as administering a pension and benefits program. Included with these programs are training and development programs as well as yearly performance evaluations for both managers and agents who are jointly responsible for bringing in new accounts and maintaining existing ones. While these performance evaluations are done each year, mangers and agents do not receive feedback unless they are unhappy with their salary increases or bonuses.

However, HR is now pushing the need for ongoing feedback as it is a key component of its compensation process.

118. Refer to Scenario 8.3. If Canadian Fasteners were to provide ongoing performance feedback to its employees, this

would be a key step in which of the following? a. strategic and managerial process b. performance management process c. compensation rating process d. promotion process

119. Why do employee evaluation programs sometimes fail?

120. Why are evaluation interviews important? What are some guidelines for effectiveness?

121. What are the four basic considerations for establishing performance standards?

122. Identify and discuss the two general purposes of performance evaluation.

Answer Key 1. True 2. True 3. False 4. True 5. True 6. True 7. True 8. True 9. False 10. True 11. True 12. True 13. False 14. True 15. False 16. True 17. False 18. False 19. True 20. False 21. True 22. True 23. False 24. True 25. True 26. False 27. False

28. True 29. True 30. False 31. True 32. True 33. False 34. True 35. True 36. False 37. True 38. False 39. True 40. True 41. False 42. True 43. True 44. False 45. True 46. False 47. True 48. False 49. False 50. False 51. True 52. True 53. True 54. False 55. True

56. False 57. True 58. True 59. True 60. a 61. d 62. c 63. a 64. d 65. d 66. d 67. b 68. a 69. d 70. c 71. b 72. d 73. b 74. d 75. c 76. d 77. a 78. d 79. c 80. c 81. a 82. a 83. c

84. d 85. d 86. b 87. a 88. d 89. c 90. c 91. b 92. d 93. d 94. c 95. c 96. a 97. d 98. b 99. a 100. d 101. b 102. d 103. c 104. c 105. a 106. a 107. a 108. b 109. b 110. d 111. c

112. b 113. a 114. d 115. c 116. c 117. b 118. b 119. In many organizations, performance evaluations are seen as a necessary evil. Managers frequently avoid conducting evaluations because they dislike playing the role of judge. Further, if managers are not adequately trained, subjectivity and politics can distort the reviews. This situation tends to be self-defeating in that such managers frequently do not develop good feedback skills and are often not prepared to conduct an evaluation. As a consequence, the evaluation is done once a year and then forgotten about.

120. The degree to which the performance evaluation program benefits the organization and its members is directly related to the quality of the evaluation interviews that are conducted. Interviewing skills are best developed through instruction and supervised practice. Although there are various approaches to the interview, research suggests that employee participation and goal setting lead to higher satisfaction and improved performance. Discussing problems, showing support, minimizing criticism, and rewarding effective performance are also beneficial practices. In the interview, deficiencies in employee performance can be discussed and plans for improvement can be made.

121. Before any evaluation is conducted, the standards by which performance is to be evaluated should be clearly defined and communicated to the employee. These standards should be based on job-related requirements derived from job analysis and reflected in the job descriptions and job specifications. In establishing performance standards, there are four basic considerations.

First, performance standards should have strategic relevance. Strategic relevance refers to the extent to which performance standards relate to the strategic objectives of the organization. A second consideration in establishing performance standards is the extent to which the standards capture the entire range of an employee’s responsibilities. When performance standards focus on a single criterion to the exclusion of other important performance dimensions, then the evaluation system is said to suffer from criterion deficiency. Third, performance standards can also be contaminated.

When performance standards include factors outside an employee’s control that can influence his or her performance, then the evaluation system is said to suffer from criterion contamination. Fourth, performance standards should be reliable.

Reliability refers to the stability or consistency of a performance standard, or the extent to which individuals tend to maintain a certain level of performance over time.

122. Performance evaluation programs serve many purposes, which in general terms fall into two categories: administrative and developmental. Administrative purposes relate to who will be promoted, transferred, or laid off, and compensation decisions. Developmental purposes relate to improving and enhancing an individual’s capabilities (e.g., identifying a person’s strengths and weaknesses, eliminating external performance obstacles, and establishing training needs). These two purposes of performance evaluation reflect HRM’s larger role, which is to integrate the individual with the organization.

Indicate whether the statement is true or false.

1. Executives, administrators, and professional employees are exempt from overtime payments identified in employment standards acts. a. True

b. False 2. Pay equity is achieved when employees’ compensation is equal to the value of the work they perform. a. True b. False 3. The job classification system is commonly used by smaller employers. a. True b. False 4. To provide compensation estimates and ranges for jobs in an organization, all jobs should be surveyed. a. True b. False 5. Employees who earn pay for hourly work are referred to as salaried employees. a. True b. False 6. Competence-based pay systems represent a fundamental change in the attitude of management regarding how work should be organized and how employees should be paid for their work efforts. a. True b. False 7. The consumer price index tracks the change in price over time of a “market basket” of goods and services. a. True b. False 8. Wage-rate compression commonly occurs when organizations grant pay adjustments to lower-rated jobs but do not extend the adjustments up the hierarchy. a. True b. False 9. Among the goals of strategic compensation policy are rewarding past performance, attracting new employees, and reducing turnover. a. True b. False 10. Internal factors that influence wage rates include the worth of a job, and the employer’s ability to pay. a. True b. False 11. The employment standards acts set minimum requirements with respect to wages, hours of work, and overtime. a. True b. False 12. When employees are paid according to the skills and knowledge they have rather than the specific jobs they perform, they are paid according to competence-based compensation. a. True b. False

13. Steps within a rate range allow pay increases based on merit or seniority or a combination of the two. a. True b. False 14. Compensable factors include skills, effort, responsibilities, and working conditions. a. True b. False 15. Wages paid above the range maximum are called blue square rates. a. True b. False 16. HR professionals establish predetermined wage grades as a basis for evaluating jobs in the job classification system of job evaluation. a. True b. False 17. An advantage of published wage surveys is compatibility with the organization’s jobs. a. True b. False 18. A wage curve represents the relationship between the relative worth of jobs and their wage rates. a. True b. False 19. The use of job evaluation is widespread in the private sector but is rarely used in the public sector. a. True b. False 20. The expectancy theory of motivation predicts that one’s level of motivation depends on the attractiveness of the rewards sought by employees and the probability of obtaining those rewards. a. True b. False 21. Broadbanding refers to collapsing many traditional salary grades into a few wide salary bands. a. True b. False 22. A point manual can be used to determine the external equity of a job. a. True b. False 23. The jobs that are included in wage and salary surveys are referred to as “key jobs.” a. True b. False 24. Job ranking is a simple method that provides a precise measure of each job’s worth. a. True b. False

25. Wage-rate compression refers to the situation where employees perceive that there is too large a difference between their compensation and that of colleagues in higher-rated jobs. a. True b. False 26. Granting wage increases solely on the basis of the CPI helps compress pay rates within a pay structure, thereby ensuring equity among those who receive the wage increase. a. True b. False 27. Managers will group similar jobs into a pay grade in order to help with the setting of wages for all jobs. a. True b. False 28. Indirect compensation includes bonuses and commissions. a. True b. False 29. Expectancy theory predicts that people expect to be paid as much or more than individuals in a similar job class. a. True b. False 30. Rewarding an employee’s past performance is a goal of strategic compensation policy. a. True b. False 31. Equal pay for work of equal value involves providing equal pay to women when they perform work historically performed by men. a. True b. False 32. Competence-based pay systems compensate employees for the different skills or knowledge they possess rather than for the job they hold in a designated job category. a. True b. False 33. Wage survey data can be obtained from government sources, trade associations, or professional groups, or organizations can conduct their own surveys. a. True b. False 34. Labour market conditions have little impact on wage rates paid to employees. a. True b. False 35. The Hay profile method is useful for evaluating jobs of all types and levels. a. True b. False 36. When an employer operates in more than one province, it has to apply only the employment requirements of one province of its choosing.

a. True b. False 37. Pay levels are limited in part by profitability of the firm and productivity of employees. a. True b. False 38. Broadbands create more concern by employees with pay grades and steps. a. True b. False 39. Wage compression can be avoided by granting wage increases solely on the basis of the CPI. a. True b. False 40. Using job evaluation and wage survey data jointly improves the likelihood of both internal and external equity. a. True b. False 41. When time off is given in exchange for overtime work, it must be given hour-for-hour to the number of hours worked overtime. a. True b. False 42. Organizations may dodge the comparable worth issue by using one job evaluation system for clerical jobs frequently held by women, and another system for other jobs. a. True b. False 43. An advantage of competence-based pay from the employee’s perspective is that there is no limit to what they can earn by learning new skills. a. True b. False 44. The point system of job evaluation permits jobs to be evaluated quantitatively based on compensable factors. a. True b. False 45. Pay equity is covered only under federal jurisdiction. a. True b. False 46. Real wages represent the difference between wage increases and cost-of-living increases. a. True b. False 47. Job evaluation is a non-systematic, qualitative process of determining the relative worth of jobs in order to establish a comparison with the prevailing market and regional value of a job within a job family. a. True b. False

48. Strategic compensation is the compensation of employees in ways that enhance motivation and growth while concurrently aligning their efforts with the goals of the organization. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

49. Jambrone Foods and CUPE Local 5000 have a collective agreement in place that allows for wages to be paid at more than the minimum wage set by the Employment Standards Act. Which of the following best describes this agreement? a. It is illegal. b. It is legal. c. It is legal but ill-advised. d. It is acceptable under the Employment Standards Act but illegal under the Canada Labour Code.

50. ABC Corporation uses a job evaluation system that links the value of jobs directly with the goals of the organization.

Which job evaluation system is most likely being used by ABC Corporation? a. work evaluation b. goal setting c. point method d. goal system 51. Pay equity legislation is administered at what jurisdictional level? a. internationa l b. federal c. provincial d. municipal Scenario 9.1 Denton and Denton Inc. (D&D Inc.) is a small graphic design firm that designs tray liners for various small food chains across Canada and a major chain in the United States. D&D currently has 20 employees who are paid hourly rates for time worked, not projects completed. These workers consider themselves valuable, knowledge-based workers, and now that the company is expanding its client base they are not happy with the current pay structure. Management claims that this pay structure, ranging from $20 to $65 per hour, is based on collapsing the pay ranges for four job bands.

52. Refer to Scenario 9.1. Which of the following is NOT a benefit of competency-based pay system? a. greater productivity b. decreased compensation costs c. improved staffing flexibility to meet production or service demands d. reduced effects of absenteeism and turnover 53. Which term refers to the concept of equal pay for work of equal value? a. equal pay b. comparable pay c. compensable factor d. pay equity 54. For real wages to increase, what is necessary? a. An employee’s wage increase must be greater than the increase in the CPI.

b. An employee must receive a lump-sum wage increase equal to the increase in the CPI. c. An employee’s wage must simply increase. d. The CPI must increase at least as much as the employee’s wage.

55. Which of the following is NOT a potential outcome of wage-rate compression? a. decreased employee performance b. low employee morale c. delinquent employee behaviour d. lower absenteeism 56. According to the textbook, which job evaluation method is considered the most valid? a. job ranking b. the classification method c. the point method d. the factor comparison method 57. In developing a wage curve, what are market wage rates plotted against? a. job evaluation points b. employee benefits c. the size of a firm d. employee wages and salaries 58. Which type of legislation is concerned with minimum wage rates and overtime payments? a. employment standards b. employment equity c. equal pay d. pay equity 59. Vidya works at Paymore Shoes and is paid for time she works in the store. How would you classify Vidya? a. a salaried employee b. an hourly employee c. an exploited employee d. a white-collar employee 60. Some organizations can choose a strategy to pay higher than market wages and salaries. Which of the following will this likely help them do? a. be more selective in their employee hiring b. reduce their direct labour costs c. reduce their indirect labour costs d. achieve pay equity between men and women 61. Which of the following is an external factor that can influence the rates at which employees are paid? a. collective bargaining b. the employer’s ability to pay c. the employees’ relative worth

d. the worth of the job 62. How would you describe “an increase in real wages”? a. an increase in wages over the Consumer Price Index b. an increase in wages and benefits c. an increase in the monetary proportion of the compensation package d. an increase in collectively bargained wages 63. What do we call jobs that are selected to be included in salary surveys? a. higher-pay jobs b. equity jobs c. comparison jobs d. benchmark jobs 64. Which of the following clauses are found in some labour agreements that periodically adjust compensation rates to reflect increases in cost of living? a. maintenance clauses b. escalator clauses c. roll-up clauses d. guarantee clauses 65. Which of the following is a firm’s internal factor that can influence the rates at which employees are paid? a. labour market conditions b. collective bargaining c. the cost of living d. the employer’s strategy 66. ABC Corporation is a furniture firm based in Ontario that supplies its products to the federal government. What laws would apply to ABC Corporation? a. federal and provincial laws b. federal laws only c. provincial laws only d. international laws only 67. Wage compression may create problems related to which of the following? a. external equity b. internal equity c. gender discrimination d. racial discrimination Scenario 9.1 Denton and Denton Inc. (D&D Inc.) is a small graphic design firm that designs tray liners for various small food chains across Canada and a major chain in the United States. D&D currently has 20 employees who are paid hourly rates for time worked, not projects completed. These workers consider themselves valuable, knowledge-based workers, and now that the company is expanding its client base they are not happy with the current pay structure. Management claims that this pay structure, ranging from $20 to $65 per hour, is based on collapsing the pay ranges for four job bands.

68. Refer to Scenario 9.1. What type of pay system is D&D Inc. currently using to compensate its employees? a. broadbanding

b. competency-based c. red circle rates d. piece rate 69. In collective agreements, what are escalator clauses associated with? a. predetermined fixed increases in pay year-over-year b. a cost of living adjustment c. job evaluations d. succession planning 70. Which of the following is a relatively new job evaluation system? a. job classification system b. job ranking c. the point system d. work evaluation 71. What is the scope of the impacts of collective bargaining agreements? a. They extend beyond the segment of the labour force that is unionized. b. They are restricted to hourly employees only. c. They are restricted to members of the union. d. They are restricted to both exempt and non-exempt employees.

72. What types of jobs are usually evaluated using the Hay profile method? a. executive and managerial b. administrative and technical c. information technology and manufacturing d. sales and accounting 73. Which of the following issues does job evaluation helps to address? a. issues dealing with employees’ need for pay that is equal to their financial needs b. issues dealing with employers’ perceptions of the labour market c. issues dealing with employers’ need to match the market pay d. issues dealing with employees’ perceptions of equity 74. Desirée is a female receptionist employed by York University in Toronto. John is a male janitor with the same employer. Both jobs are evaluated as having 500 points, yet Desiree is paid less than John. She has decided to legally challenge the employer. Which of the following is relevant in this case? a. the Peter principle b. market matching c. equal pay for work of equal value d. equal pay for equal work 75. Tiffany works as an IT specialist at Nortel. She is compensated based on such skills as programming and service to clients. It is likely that she is paid under which of the following pay plans? a. a competency-based pay plan b. a performance-based pay plan

c. a merit-based pay plan d. a seniority-based pay plan 76. Which of the following terms is also used to describe competency-based pay? a. incentive pay b. commission pay c. skilled-based pay d. broadband pay 77. In geography, the water catchment area or watershed refers to the area that channels or supplies a specific area with its water. Catchment areas divide drainage basins. In wage surveys, what is this catchment area similar to? a. the labour market b. the region c. the recruiting area d. the supply region 78. To help achieve internal equity, factors such as skills, effort, responsibilities, and working conditions may be used to assess jobs. What do we call these factors? a. job specifications b. job classification factors c. compensable factors d. factor comparisons 79. Which of the following is NOT a method of comparison used in job evaluation? a. point system b. job ranking system c. job classification system d. comparable worth system 80. Which of the following is the simplest job evaluation system? a. job ranking b. point method c. job classification d. work valuation 81. What is a key implication of expectancy theory when applied to pay systems? a. Employees must get pay raises to cover increased living costs. b. Employees expect their managers to be competent. c. Employers expect their employees to be competent. d. Rewards must be valuable for motivation to occur.

82. Both Sam and Samantha work as cashiers at Modelo Hot Dogs. They do work of equal value to the firm, yet Sam receives less pay than Samantha. Sam is not happy because he perceives the system as being unfair to him. Which theory can you use to explain Sam’s perceptions? a. reverse discrimination theory b. pay equity theory

c. expectancy theory d. equity theory Scenario 9.2 Calendar “R” Us Ltd. is a small firm that manufactures yearly calendars with a specific focus on middle and high schools in Alberta. They started operations back in 2006 with just 12 employees, two machines, and a small warehouse that served as an office and production and storage facilities. Today, Calendar “R” Us has roughly 60 employees and supplies its calendars to most middle and high schools in Alberta. When employees join they are paid based on their relationship with the owners. Given the rapid growth in its staff complement, and the arbitrary way in which it normally compensates employees, payroll has proven to be quite a challenge for the company as management looks to expand into other provinces.

83. Refer to Scenario 9.2. Calendar “R” Us jobs range from management to administrative, to clerical to production to packing to delivering. Which of the following would be key to evaluating the worth of each job category? a. avoiding the use of job evaluation to establish wage structure b. evaluating the job based on market price c. evaluating the job based on total value delivered to the organization d. comparing each job with a competitor in the market 84. Assume Microsoft wants to link its overall organizational strategy to its wage and benefit policies in the strategic plan.

How can the company best do this? a. through the development of better performance standards b. through following federal strategic planning legislation c. through adhering to Harvard University’s Professor Porter model d. through formalized compensation goals 85. Which of the following is job classification often used to help determine pay for? a. merit bonuses b. the company’s CEO c. classified university professors’ jobs d. government jobs Scenario 9.2 Calendar “R” Us Ltd. is a small firm that manufactures yearly calendars with a specific focus on middle and high schools in Alberta. They started operations back in 2006 with just 12 employees, two machines, and a small warehouse that served as an office and production and storage facilities. Today, Calendar “R” Us has roughly 60 employees and supplies its calendars to most middle and high schools in Alberta. When employees join they are paid based on their relationship with the owners. Given the rapid growth in its staff complement, and the arbitrary way in which it normally compensates employees, payroll has proven to be quite a challenge for the company as management looks to expand into other provinces.

86. Refer to Scenario 9.2. Which of the following is a useful and cost-effective way for Calendar ‘R” Us to find information on wage and salary trends in similar industries? a. develop in-house surveys b. use surveys done by provincial governments and boards of trade c. purchase surveys done with global organizations d. set wages based on ability to pay only Scenario 9.1

Denton and Denton Inc. (D&D Inc.) is a small graphic design firm that designs tray liners for various small food chains across Canada and a major chain in the United States. D&D currently has 20 employees who are paid hourly rates for time worked, not projects completed. These workers consider themselves valuable, knowledge-based workers, and now that the company is expanding its client base they are not happy with the current pay structure. Management claims that this pay structure, ranging from $20 to $65 per hour, is based on collapsing the pay ranges for four job bands.

87. Refer to Scenario 9.1. Given that these employees are skilled-based/knowledge workers, which of the following is a more effective way to compensate them? a. piece rate pay system b. hourly rate based on task completed c. salaried employee system d. competency-based pay system 88. According to the textbook, what is the predominant approach to employee compensation in Canada? a. competency-based pay b. pay-for-performance c. individual contract d. job-based pay 89. What do we call payment rates above the maximum of a pay range? a. red circle rates b. unfair pay rates c. pay for talent d. broadband rates 90. One theory of motivation is based on the proposition that employees would exert greater work effort if they have reason to anticipate it (their effort) will result in a valued reward. What is this theory? a. instrumentality theory b. equity theory c. expectancy theory d. internal equity theory Scenario 9.2 Calendar “R” Us Ltd. is a small firm that manufactures yearly calendars with a specific focus on middle and high schools in Alberta. They started operations back in 2006 with just 12 employees, two machines, and a small warehouse that served as an office and production and storage facilities. Today, Calendar “R” Us has roughly 60 employees and supplies its calendars to most middle and high schools in Alberta. When employees join they are paid based on their relationship with the owners. Given the rapid growth in its staff complement, and the arbitrary way in which it normally compensates employees, payroll has proven to be quite a challenge for the company as management looks to expand into other provinces.

91. Refer to Scenario 9.2. Calendar “R” Us wants to develop a set of compensation policies that are internally fair. Which of the following is helpful in making this decision? a. job evaluation b. external competition c. global comparisons of pay d. market surveys 92. What’s a key objective of wage and salary surveys?

a. to help with job evaluations b. to help achieve gender pay equity c. to validate performance appraisals d. to help achieve external equity Scenario 9.2 Calendar “R” Us Ltd. is a small firm that manufactures yearly calendars with a specific focus on middle and high schools in Alberta. They started operations back in 2006 with just 12 employees, two machines, and a small warehouse that served as an office and production and storage facilities. Today, Calendar “R” Us has roughly 60 employees and supplies its calendars to most middle and high schools in Alberta. When employees join they are paid based on their relationship with the owners. Given the rapid growth in its staff complement, and the arbitrary way in which it normally compensates employees, payroll has proven to be quite a challenge for the company as management looks to expand into other provinces.

93. Refer to Scenario 9.2. Setting pay levels at Calendar “R” Us can be limited by all of the following factors EXCEPT which one? a. employee expectations and motivation b. profitability of the firm c. productivity of employees d. economic condition and competition 94. Which of the following is NOT a component of direct compensation? a. incentives b. wages c. benefits d. commission s 95. Sarah, Tariq, and Tatiana’s compensation packages are calculated and paid on the basis of weekly, biweekly, or monthly periods, respectively. How would you classify these employees? a. white-collar employees b. part-time employees c. hourly employees d. salaried employees 96. Using the point manual, how is the relative worth of a job determined? a. by benchmarking jobs contained in the point manual b. through the wage mix c. by the number of steps within the pay grade d. by the total points that have been assigned to that job 97. XYZ Company wants to pay its employees based on their skills that are valued by the company. Which of the following would it most likely use? a. commission pay b. stock-based pay c. profit sharing

d. competency-based pay 98. Which of the following is NOT a characteristic of “key jobs” used in wage and salary surveys? a. They contain a large number of positions. b. They have the same job content across many organizations. c. They are usually paid high rates. d. They have relatively stable job content.

99. Crystal Ball Inc. is a large information technology firm with many levels of management. The company would like to compensate its managers on factors such as knowledge and accountability. Which system would you recommend? a. market pricing b. the Hay profile method c. job classification as implemented in Microsoft d. work valuation 100. Accounting clerks, pay clerks, and junior secretaries are all classed in Grade 2 at Metroland Inc. Which of the following should apply to all these jobs? a. They should all receive the same wage rate in order to achieve equality. b. They should be paid within the same pay range. c. They should be paid similar to Grade 2 jobs at McDonald’s. d. They should be paid at different wage rates because the worth of these jobs to the organization may differ.

101. Which of the following is an example of nonfinancial compensation? a. bonuses b. employee recognition programs c. health insurance d. incentives 102. Expectancy theory posits that there are three conditions that must be met for employees to be motivated through rewards. Which is the following is NOT one of these conditions? a. high motivation need b. high instrumentality c. high expectancy d. high valence 103. As the year 2000 approached, many organizations hired “young” and “inexperienced” information technology (IT) specialists to help address the Y2K problem. Many of these new hires were paid high compensation that brought them very close to the compensation earned by experienced IT specialists working with these companies. Which of the following can such a practice lead to? a. wage inversion b. pay equity c. wage-rate compression d. high turnover across the board 104. What type of jobs do companies normally use to collect wage survey data? a. key jobs b. low-rated jobs c. high-rated

jobs d. strategic jobs 105. Which of the following is a potential problem of wage and salary surveys? a. The jobs in the surveys may not match those in the organization. b. They are discriminatory. c. They exclude key administrative jobs. d. They do not capture key sectoral data.

106. Briefly discuss the provisions of the employment standards acts pertaining to employee compensation.

107. How are the wages for jobs typically determined? Why is this process important?

108. Explain competency-based pay, including its advantages and disadvantages. Include in your discussion the practice of broadbanding.

109. Briefly explain the different job evaluation systems.

Answer Key 1. True 2. True 3. False 4. False 5. False 6. True 7. True 8. True 9. True 10. True 11. True 12. True 13. True 14. True 15. False 16. True 17. False 18. True 19. False 20. True 21. True 22. False 23. True 24. False 25. False 26. False 27. True

28. False 29. False 30. True 31. False 32. True 33. True 34. False 35. False 36. False 37. True 38. False 39. False 40. True 41. False 42. True 43. False 44. True 45. False 46. True 47. False 48. True 49. b 50. a 51. c 52. b 53. d 54. a 55. d

56. c 57. a 58. a 59. b 60. a 61. a 62. a 63. d 64. b 65. d 66. a 67. b 68. a 69. b 70. d 71. a 72. d 73. d 74. c 75. a 76. c 77. a 78. c 79. d 80. a 81. d 82. d 83. c

84. d 85. d 86. b 87. d 88. d 89. a 90. c 91. a 92. d 93. a 94. c 95. d 96. d 97. d 98. b 99. b 100. b 101. b 102. a 103. c 104. a 105. a 106. Each of the provinces and territories has employment standards legislation, which establishes minimum standards with a view to protecting employees and employers in certain work-related situations. Each province’s Employment Standards Act specifies minimum wage rates and stipulates that an overtime rate of 1.5 times the base rate must be paid for all hours worked in excess of a set number of hours, which varies by jurisdiction. Particular groups, including lawyers, doctors, engineers, and managers, are exempt from overtime requirements.

107. The basis on which compensation payments are determined, and the way they are administered, can significantly affect employee productivity and the achievement of organizational goals. Internal influences include the employer’s compensation policy, the worth of the job, the performance of the employee, and the employer’s ability to pay. External factors influencing wage rates include labour market conditions, area wage rates, cost of living, the outcomes of collective bargaining, and legal requirements.

108. Competency-based pay, also known as knowledge-based pay, pay-for-knowledge, or multi-skill-based pay, compensates employees for the different skills or increased knowledge they possess rather than for the job they hold in a designated job category. There are several advantages that stem from the use of competency-based pay plans. The most frequently cited benefits of competency-based pay include greater productivity, increased employee learning and commitment to work, improved staffing flexibility to meet production or service demands, and the reduced effects of absenteeism and turnover. Unfortunately, some competency-based pay plans limit the amount of compensation employees can earn, regardless of the new skills or competencies they acquire. Further, employees can become discouraged when they acquire new abilities but find there are no higher-rated jobs to which they can transfer.

Organizations that adopt a competency-based pay plan frequently use broadbanding. Broadbanding simply collapses many traditional salary grades into a few wide salary bands. This is done by organizations in an attempt to structure their compensation payments to employees, to encourage lateral skill building, and to address the need to pay employees performing multiple jobs with different skill level requirements. By broadbanding, organizations can consider job responsibilities, individual skills, and career mobility patterns in assigning employees to bands.

109. Organizations use four basic job evaluation techniques to determine the relative worth of jobs. The job ranking system arranges jobs in numerical order on the basis of the importance of the job’s duties and responsibilities to the organization. The job classification system slots jobs into pre-established grades. Higher-rated grades will require more responsibilities, working conditions, and job duties. The point system of job evaluation uses a point scheme based upon the compensable job factors of skill, effort, responsibility, and working conditions. The more compensable factors a job possesses, the more points are assigned to it. Jobs with higher accumulated points are considered more valuable to the organization. The factor comparison system evaluates jobs on a factor-by-factor basis against key jobs in the organization.

Indicate whether the statement is true or false.

1. Incentive plans can create an organizational environment of “shared commitment,” since individuals contribute to organizational success. a. True b. False 2. Standard hour plans are popular in service departments in automobile dealerships. a. True b. False 3. A weakness of profit-sharing plans is that employees do not have total control over the profitability of the organization. a. True b. False 4. Because of failing popularity and media scandals, the number of Canadian companies granting stock options to nonexecutive personnel has been decreasing in recent years. a. True b. False 5. Straight commission plans may induce salespeople to grant price concessions. a. True b. False 6. Employees working under a standard hour plan are paid on the basis of a predetermined time allowed to finish the job. a. True b. False 7. Sales incentives can be affected by external factors beyond the salesperson’s control.

a. True b. False 8. One clear trend in strategic compensation management is the growth of incentive programs for employees throughout the organization. a. True b. False 9. Under a straight piecework plan, five minutes is the standard time to produce one unit. The employee’s hourly rate is $7.50. The piece rate is $1.50 per unit. a. True b. False 10. Spot bonuses are usually provided for some employee effort that is not directly tied to an established performance standard. a. True b. False 11. The level of incentives given to executives may depend on their level in the firm. a. True b. False 12. A key advantage of incentive plans is that they represent variable costs that are linked to the realization of goals as opposed to a fixed cost such as salary that may be largely unrelated to true performance (i.e., output). a. True b. False 13. Employers use stock ownership incentive plans to increase employee “ownership” in the company. a. True b. False 14. Enterprise incentive plans allow all organizational members to participate in the plan’s payout. a. True b. False 15. Perquisites are special benefits given to executive employees. a. True b. False 16. The idea behind the Scanlon Plan is that employees not only should offer ideas to improve productivity, but also should be rewarded for those ideas. a. True b. False 17. Employees receive a specified payment for each unit produced under a straight piecework program. a. True b. False 18. Financial incentives for salespeople are widely used. a. True

b. False 19. Differential piece rate plans guarantee employees at least a base pay. a. True b. False 20. One philosophy of incentive systems is that tying compensation to employee effort will improve employee performance. a. True b. False 21. Under a straight commission plan, compensation is based entirely on a percentage of sales. a. True b. False 22. A salesperson with a sales volume of $275 000 earning a straight commission of 3 percent would receive $8250. a. True b. False 23. Balanced scorecards refer to the use of operational yardsticks as well as traditional financial measures as a basis for computing executive pay. a. True b. False 24. ESOPs can increase employees’ pride of ownership in the organization, providing an incentive for them to increase productivity and help the organization prosper and grow. a. True b. False 25. A potential difficulty with pay-for-performance programs is how to measure employee performance. a. True b. False 26. A merit raise is a form of bonus that is given to an employee beyond their base wage. a. True b. False 27. Team incentive plans reward team members when performance standards are met or exceeded; however, they tend to foster a psychological climate that negatively impacts team cooperation. a. True b. False 28. Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement. a. True b. False 29. Merit pay plans have been criticized because the merit increase may not be sufficient to raise the employee’s base pay. a. True b. False 30. The most important lesson learned from Scanlon and Improshare plans is that if management wants to gain the

cooperation of its employees in improving efficiency, they must permit the employees to become involved psychologically as well as financially in the organization. a. True b. False 31. Approximately 50 percent of Canadian companies offer some form of variable pay. a. True b. False 32. Employers using a lump-sum merit program will need to periodically increase base salaries in order for employees to keep pace with the cost of living or general market wages. a. True b. False 33. Piecework is inappropriate where technology changes are frequent. a. True b. False 34. Under a differential piece rate plan, employees whose performance (i.e., production) exceeds the standard amount of output receive a higher rate for all of their work than the rate paid to those who have not exceeded the standard amount. a. True b. False 35. A straight salary plan is the most frequently used type of sales incentive plan. a. True b. False 36. Gainsharing plans are designed to improve productivity through more effective use of organizational resources. a. True b. False 37. Meshing compensation and organizational objectives helps employees assume ownership of their jobs, improve effort, and improve performance. a. True b. False 38. In most profit-sharing plans, about 20 to 25 percent of net profits are shared with employees. a. True b. False 39. Lump-sum merit pay does not contribute to escalating base salary levels. a. True b. False 40. Performance measures are rather simple to develop and standardize, as sales volume is an objective measure of performance that is not dependent upon external factors. a. True b. False 41. Under the merit pay system, employees who have better political connections within the company may bear a threat to their supervisor and therefore may end up with a larger share of the “merit pie” than their performance would warrant.

a. True b. False 42. A bonus is supplemental to base wages. a. True b. False 43. Incentive plans are not effective in service and government organizations because of the difficulty in measuring productivity. a. True b. False 44. The operation of a merit pay plan depends on the effectiveness of the performance appraisal system. a. True b. False 45. Stock options are rights attached to the achievement of specific organizational objectives. a. True b. False 46. Incentive plans based on productivity can reduce labour costs. a. True b. False 47. For incentive plans to be successful, one of the most critical requirements is that managers be willing to grant incentives based on differences in individuals, teams, or organizational criteria. a. True b. False 48. Because profit-sharing plans often fail to pay off for several years in a row, they can have limited motivational value. a. True b. False 49. Professional employees are difficult to develop incentive plans for only because their outputs are difficult to measure. a. True b. False 50. Merit raises may be perpetuated year after year even if performance declines. a. True b. False 51. ESOPs have been criticized because of potential inabilities to pay back the stock of employees when they retire. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

Scenario 10.2 Meritas Financial Ltd. is a financial advisory firm located in downtown Toronto. Most of the firm’s senior employees (referred to as partners) are paid top dollar for bringing in huge accounts regardless of whether these accounts bring in the

appropriate amount of business to justify the incentives paid. The partners are compensated on the net worth of the companies that sign on to use Meritas as their financial advisor. The owner is now concerned about this pay arrangement and wants to make changes to the way he compensates his employees. However, he is worried that with a potential reduction of salary and short-term incentives, he might lose some of his most valuable employees and the accounts that they brought on board.

52. Refer to Scenario 10.2. Meritas may be able to increase short-term incentives and retain its most valuable employees by embarking on which of the following? a. an employee stock bonus plan b. an employee stock purchase plan c. profit-sharing plans d. employee stock option plans 53. Which of the following is NOT a type of stock plan? a. stock option plan b. stock bonus plan c. stock purchase plan d. stock incentive plan 54. Aren received a $500 pay bonus as a result of his job performance last year; however, this extra money was not added to his base pay. This is an example of which of the following? a. annual merit raise b. group incentive plan c. lump-sum merit pay d. percentage wage increase 55. Which of the following pay plans can be plagued by the “free rider” effect? a. piece rates b. team incentives c. base pay d. retirement plans 56. Several organizations have an incentive that managers can give to their employees for outstanding singular effort not tied to any planned performance standard. What is such an incentive usually called? a. a stock option b. a spot bonus c. merit pay d. a differential piece rate 57. According to research, which of the following best describes incentive plans? a. They can contribute to organizational performance if certain conditions are met. b. They usually improve organizational performance by at least 10 percent. c. They usually lead to negative outcomes such as confusion and competition. d. They tend to drive up organizational costs and decrease profits because more pay has to be given to employees.

58. Which of the following is a key condition for the success of merit pay raises? a. The amount must be fairly substantial. b. Employees must work in teams.

c. The performance goals must be tough to achieve. d. The raise should be awarded every two months.

59. Navin works as a sales representative for Rogers Pet Foods. He is on a commission plan. His individual performance has been steady over the past few months but he has noticed a decline in his pay. Which of the following is NOT a likely cause for Navin’s pay decline? a. changes in the economy b. increased competition from rival pet food suppliers c. his intrinsic motivation d. seasonal fluctuations in the demand for pet food 60. Amelia received a stellar performance appraisal in 2014, which translated to a 10 percent pay raise for 2015. Her 2014 base pay was $50 000. Which of the following applies to 2015? a. Her employer would give her a bonus of $5000. b. Her pay would remain $50 000 but she would most likely get a promotion. c. Her employer would add 10 percent to all her 2014 compensation components—base pay, incentives, benefits, and perks. d. $5000 would be added to her 2014 base pay.

61. Why are performance measures vital in incentive plan design? a. because they drive profitability b. because they ensure management support c. because they communicate the importance of the organizational goals d. because they are fair and equitable 62. Which of the following is a key objective of enterprise incentive plans? a. to limit “free ridership” b. to reward top performers c. to support government reward programs d. to create a “culture of ownership” 63. What is a major problem with profit sharing plans? a. They increase the fixed costs of organizations. b. The line of sight between employee performance and organizational profits is blurred. c. The profits distributed to employees can be too much. d. There is no agreed upon procedure to determine profits.

64. Which of the following is an advantage of merit increases on a lump-sum basis? a. They do not contribute to escalating base salary levels. b. They add a permanent sum to the base salary. c. They are done in conjunction with promotions. d. They reflect annual adjustments in base salary.

65. Mark recently received an incentive for a special contribution not directly tied to a performance standard. What is this incentive called? a. a piece rate plan

b. a spot bonus c. a special incentive d. a differential piece rate 66. It was revealed in the press that the former CEO of a Fortune 100 firm enjoyed special use of the company plane and a country club membership as a part of his reward package. Which of the following best describes these benefits? a. They are illegal, but executives usually get away without being caught. b. They are known as perquisites. c. They are known as golden parachutes. d. They are unusual for top executives.

67. Which of the following is NOT a reason that merit raises may fail to achieve their intended purpose? a. Merit raises may be based on seniority or favouritism. b. The performance appraisal system is deficient. c. Employees are unable to differentiate between merit and other pay increases. d. Incentive rewards are linked to organizational goals.

68. What’s the overarching philosophy of gainsharing plans? a. Gains that are shared with employees will multiply over time. b. Involved employees will improve productivity through more effective use of organizational resources. c. Organizations need to pay employees more. d. Individual incentives are motivational.

69. What is the philosophy behind the Scanlon Plan? a. Rewards are shared with employees based on improved profits. b. Employees should offer ideas and suggestions to improve productivity and, in turn, be rewarded for their constructive efforts. c. Organizational profits should improve through sales efforts. d. Managers and employees should establish quality and quantity goals for optimum organizational performance.

70. Who normally decides the compensation package for the Chief Executive Officer in a Fortune 500 firm? a. the vice-presidents or the second level of executives b. members of the Board of Directors c. the unions through collective bargaining d. the shareholders of the firm 71. Malo is an engineer. Her salary range was extended to the range used for administrative employees. What is this type of pay system? a. a hybrid wage system b. broadbanding c. extended range pay system d. a double-track wage system Scenario 10.2 Meritas Financial Ltd. is a financial advisory firm located in downtown Toronto. Most of the firm’s senior employees (referred to as partners) are paid top dollar for bringing in huge accounts regardless of whether these accounts bring in the appropriate amount of business to justify the incentives paid. The partners are compensated on the net worth of the

companies that sign on to use Meritas as their financial advisor. The owner is now concerned about this pay arrangement and wants to make changes to the way he compensates his employees. However, he is worried that with a potential reduction of salary and short-term incentives, he might lose some of his most valuable employees and the accounts that they brought on board.

72. Refer to Scenario 10.2. Meritas wants to keep these employees happy and motivated. Which of the following is NOT a positive impact of implementing profit sharing? a. having an adverse effect on productivity and employee morale b. helping stimulate employees to think and feel more like partners c. encouraging a total commitment from employees d. contributing to the growth of the organization’s profit 73. When setting performance measures for incentive systems, what can we say about the best measures? a. They are quantitative, simple to understand, and show a clear relationship to improved performance. b. They are qualitative, flexible, and create competition between employees. c. They are those measures that allow employers to “ratchet up” standards and base rewards on qualitative standards. d. They are unattainable in order to inspire increased levels of performance.

74. When is piecework most appropriate? a. when the job is fairly standardized b. when quality is more important than quantity c. when performance measures are difficult to define d. when technology changes are frequent 75. Which of the following is a major concern about executive compensation? a. the timing of the stock awards b. the lack of objective performance data c. the lack of perquisites d. the growing gap between leaders and the company’s lowest-paid employees 76. When employees receive a higher rate of pay for all of their work if production exceeds a standard level of output, what type of incentive plan is the employer using? a. higher piece rate b. standard piece rate c. exception bonus rate d. differential piece rate 77. What is a potential consequence of “rate busting”? a. production targets not being achieved b. increase in group incentives c. disapproval from fellow workers d. improved cooperation among workers 78. ABC Corporation has a sales compensation plan that requires salespeople to be paid for performing various duties not reflected in their sales volume. What type of pay plan does this exemplify? a. a straight salary plan b. a merit plan

c. lump-sum merit pay d. a standard hour plan 79. At Steelcase, an office furniture maker, employees can earn more than their base pay if they produce more units, such as upholstering more chairs. This part of their pay is determined on units produced. Which of the following plans is being used here? a. piece rate plan b. completion pay plan c. time division plan d. standard hour plan 80. As an incentive, Ahmed was offered the opportunity to buy shares of their organization’s stock at a discount price.

What type of compensation is this? a. share bonus b. stock bonus c. stock options d. stock purchase Scenario 10.2 Meritas Financial Ltd. is a financial advisory firm located in downtown Toronto. Most of the firm’s senior employees (referred to as partners) are paid top dollar for bringing in huge accounts regardless of whether these accounts bring in the appropriate amount of business to justify the incentives paid. The partners are compensated on the net worth of the companies that sign on to use Meritas as their financial advisor. The owner is now concerned about this pay arrangement and wants to make changes to the way he compensates his employees. However, he is worried that with a potential reduction of salary and short-term incentives, he might lose some of his most valuable employees and the accounts that they brought on board.

81. Refer to Scenario 10.2. In implementing a new profit-sharing plan, Meritas has various options by which payouts can be made to its employees. Which of the following is the best way for Meritas to distribute profits? a. deferred payment added to pension b. bonus payments added to yearly salaries c. disbursements in cash paid monthly d. a combination of deferred and cash payouts 82. What is the purpose of a profit-sharing plan? a. to allow workers to contribute ideas and suggestions b. to motivate a total commitment to the organization as a whole c. to enable workers to share in labour cost savings d. to instil commitment to the employee’s immediate work group 83. Recently, stock options have been strongly criticized in the press following controversies at several companies. What has this criticism focused on? a. the comparative low executive base pay b. the amount of the options granted and exercised c. the fact that mainly males are CEOs and that they get these options d. the stock prices in competitive firms 84. Many potential errors, as well as discrimination, can occur in the performance appraisal process. Which of the following can such errors lead to?

a. problematic stock options b. problematic merit pay c. problematic job evaluations d. problematic market pay rates 85. Which of the following is an important reason why employers use piece rate systems in their compensation strategy? a. It is difficult to predict labour costs accurately. b. It helps with desired team behaviours. c. Piece rates are simple to compute. d. Piece rates promote team work.

86. Lana works as a salesperson at Fashion Galore. She is paid on a percentage of her sales only. What type of pay plan is this? a. straight ratio plan b. straight salary plan c. straight bonus plan d. straight commission plan 87. A new start-up firm wants to encourage team behaviours and a “culture of ownership” among all employees in the organization. Which of the following types of pay plans is NOT advisable? a. differential piece rates b. employee stock ownership plans c. profit sharing d. stock options Scenario 10.1 BioMetrics Imaging Ltd. is a small Saskatoon-based firm that designs and produces one-of-a-kind machines that are capable of capturing medical imaging similar to that of MRI machines but with a higher percentage of accuracy. So far, the company has been able to sell various units to privately owned medical clinics and a few hospitals in the United States. The problem currently facing BioMetrics Imaging is finding salespeople with the appropriate experience who not only understand the equipment but are also trustworthy and willing to work extremely hard to bring the product to the marketplace. It takes roughly six months to convince potential clients to purchase the machines. Sales agents receive a hefty paycheque when a unit is sold based on a percentage of the unit price, and all travel expenses are covered. Still, the company is not able to retain its employees because the time lag between beginning to sell machines and getting paid is too long.

88. Refer to Scenario 10.1. Which of the following factors is least likely to affect sales for this equipment? a. economic and seasonal fluctuations b. sales competition and changes in demand c. producing the machines in a timely manner d. the nature of the sales territory 89. Profit-sharing plans represent one way that wealth can be redistributed at which of the following levels? a. the international level b. the regional level c. the national level d. the firm level 90. Last year, many CEOs of Canada’s largest companies earned less than $500,000 base pay, yet their overall

compensation was on average more than $9 million. What was the major source for the large total pay? a. stock options b. executive perquisites c. bonuses d. benefits 91. Which of the following is the most widely used sales incentive program? a. straight salary b. straight commission c. combined salary and commission d. commission plus bonus 92. What is a consequence of lump-sum merit raises? a. higher costs versus merit raises b. lower budgets c. increased performance standards d. no merit-based increase in base pay Scenario 10.1 BioMetrics Imaging Ltd. is a small Saskatoon-based firm that designs and produces one-of-a-kind machines that are capable of capturing medical imaging similar to that of MRI machines but with a higher percentage of accuracy. So far, the company has been able to sell various units to privately owned medical clinics and a few hospitals in the United States. The problem currently facing BioMetrics Imaging is finding salespeople with the appropriate experience who not only understand the equipment but are also trustworthy and willing to work extremely hard to bring the product to the marketplace. It takes roughly six months to convince potential clients to purchase the machines. Sales agents receive a hefty paycheque when a unit is sold based on a percentage of the unit price, and all travel expenses are covered. Still, the company is not able to retain its employees because the time lag between beginning to sell machines and getting paid is too long.

93. Refer to Scenario 10.1. What type of compensation plan is BioMetrics utilizing for its salespeople? a. a straight commission plan b. a straight salary plan c. a combination salary and commission plan d. a sales plus bonus plan 94. Refer to Scenario 10.1. One way to address the turnover problem that is driven by the frequency of payout would be to have some form of guaranteed pay. Which pay method for sales employees addresses this issue? a. straight commission b. salary and commission c. bonuses d. gainsharing 95. Which of the following is an advantage of piece rate pay systems? a. They allow for teamwork. b. They allow employees to break down their work piece by piece. c. They help to groom high performance managers. d. They have a direct link to performance.

96. Which of the following is a key factor that contributes to the success of incentive plans? a. employee entitlements b. management support c. high employee expectations for pay gains d. undefined performance measures 97. What’s the first step in the three-step approach in deciding on team incentives? a. performance measures are decided b. the size of the incentive is decided c. a payout formula is determined d. a survey is conducted 98. Which of the following is a major problem of ESOPs? a. Employees may become demotivated and frustrated if the share price falls, even though they have worked productively. b. ESOPs place employees’ pensions at risk because they are tied to the market performance of the organization. c. Because of the cash involved, ESOPs can be damaging to the financial well-being of the organization. d. Employees view the ESOP as a form of management control.

99. When is employee compensation referred to as variable pay? a. when employee pay is linked to performance b. when employer costs vary with the incentives offered c. when employee pay varies with market pay d. when employee pay is comprised of varying components 100. As part of her compensation package, Mariana was granted the rights to purchase shares of her organization’s stock at an established price for a fixed period of time. What type of compensation is this? a. Executive perks b. Share appreciation rights c. Stock options d. Phantom stock 101. All of following are reasons for earning a merit raise, EXCEPT which one? a. a profit merit decision b. successfully performing the job c. achieving an objective performance standard d. a superior’s subjective evaluation 102. Under which of the following conditions can incentive plans fail to achieve their objectives? a. when the goals are based on organizational performance b. when employees are too motivated c. when employees have little ability to affect performance standards d. when the objectives are too focused 103. Peter Drucker, the management expert, has argued that CEO pay should not be more than 20 times that of the rankand-file employee. What did his concern focus on?

a. the pay gap between CEOs and employees b. the perks that CEOs enjoy c. the need to raise the minimum wage for workers d. the relative basic education of executives versus the increasing sophistication of employees’ knowledge 104. What’s the range of net profits generally shared with employees in profit-sharing plans? a. 5?0?25% b. 5?0?50% c. 10?0?25% d. 10?0?50%

105. Briefly discuss three individual incentive plans. (Students should discuss three of the four following plans.)

106. Identify the principal methods for compensating salespeople and the advantages of each method.

107. Identify and briefly describe one gainsharing plan that encourages maximum effort and cooperation but is not tied to profit fluctuations, as are profit-sharing plans.

108. Discuss the problems identified with merit raises. As a manager, what would you do to ensure that merit raises fulfilled their intended value?

Answer Key 1. True 2. True 3. True 4. False 5. True 6. True 7. True 8. True 9. False 10. True 11. True 12. True 13. True 14. True 15. True 16. True 17. True 18. True 19. False 20. True 21. True 22. True 23. True 24. True 25. True 26. False 27. False

28. False 29. True 30. True 31. False 32. True 33. True 34. True 35. False 36. False 37. True 38. True 39. True 40. False 41. True 42. True 43. False 44. True 45. False 46. True 47. True 48. True 49. False 50. True 51. True 52. c 53. d 54. c 55. b

56. b 57. a 58. a 59. c 60. d 61. c 62. d 63. b 64. a 65. b 66. b 67. d 68. b 69. b 70. b 71. d 72. a 73. a 74. a 75. d 76. d 77. c 78. a 79. a 80. d 81. d 82. b 83. b

84. b 85. c 86. d 87. a 88. c 89. d 90. a 91. c 92. d 93. a 94. b 95. d 96. b 97. a 98. a 99. a 100. c 101. a 102. c 103. a 104. b 105. Piecework is one of the oldest incentive plans. When piecework is used, employees receive a certain rate for each unit they produce. Their compensation is then determined by the total number of units they produce during a given pay period. The piecework system is easier to implement and is more likely to succeed when output can be easily measured, the quality of the product is less critical, the job is fairly standardized, and a constant flow of work can be maintained.

Piecework has the advantage of motivating employees who want to increase their earnings. Although piecework has advantages, it is limited in that it cannot be used for certain types of jobs, such as where individual contributions are difficult to distinguish or where employees have little control over output as a result of mechanization. In addition to this limitation, piecework may not be an effective motivator at all times. For example, employees may not exert maximum effort if they feel it will lead to disapproval from coworkers.

The standard hour plan is an incentive technique that sets incentive rates based on a predetermined “standard time” for completing a job. If employees finish the work in less time than expected, they are still paid based on the standard time for the job multiplied by their hourly rate. Standard hour plans are easily suited to operations with a long cycle or to jobs that are nonrepetitive and require a variety of skills. While standard hour plans motivate employees to produce more, quality

may suffer if employees become careless and do their work too fast.

A bonus is an incentive that is given to an employee beyond one’s normal base wage. Bonuses do not become part of base pay. They can be paid out on the basis of cost reduction, quality improvements, or other performance criteria.

Merit pay is normally given on the basis of an employee having achieved some objective performance standard. In order to provide motivational value, merit pay plans should distinguish between an increase in base pay and the merit increase.

Merit increases are normally granted yearly in conjunction with an employee’s annual performance review. They can, however, be given out at any desired time period. Organizations may award lump-sum merit bonuses when they do not wish to raise an employee’s base pay.

106. Compensation plans for sales personnel may consist of a straight salary plan, a straight commission plan, or a combination salary and commission plan. The straight salary plan allows salespeople to be paid for performing duties not reflected immediately in their sales volume. It enables them to devote time to providing services and building customer goodwill without jeopardizing their income. A limitation of this plan is that employees may not be motivated to maximize their sales volume.

The straight commission plan bases compensation on a percentage of sales. This plan provides maximum incentive and is relatively easy to compute and understand. However, disadvantages of this type of plan include an emphasis on sales volume instead of profits. In addition, customer service after the sale is likely to be a lower priority.

When a combination salary and commission plan is used, the percentage of cash compensation paid out in commissions is called leverage. Leverage is a ratio of base salary to commission. The amount of leverage is determined after considering the constraining factors affecting performance. The combination plan has the advantages of both the straight salary and the straight commission plans, with few disadvantages.

107. Scanlon Plan. The Scanlon Plan enables employees who offer ideas and suggestions that improve productivity to be rewarded for these suggestions. The plan allows for employee participation primarily through shop committees established in each department. These committees consider production problems and make suggestions for improvement within their respective departments to an organization-wide screening committee. Both of these committees are composed of employees and managers. The screening committee reviews the data that serve as the basis for monthly bonuses, in addition to acting on suggestions received from the shop committees and advising top management. An established formula, based on increases in employee productivity as determined by a norm that has been established for labour costs, serves as the basis for financial incentives.

108. There are number of problems identified with merit raises. First, unlike a bonus, a merit raise may be perpetuated year after year even when performance declines. When this happens, employees come to expect the increase and see it as being unrelated to their performance. Second, employees in some organizations are opposed to merit raises because, among other reasons, they do not really trust management. What are referred to as merit raises often turn out to be increases based on seniority, organizational politics, favouritism, or raises to accommodate increases in cost of living or area wage rates. Third, money available for merit increases may be inadequate to satisfactorily raise employees’ base pay.

Fourth, managers may have no guidance in how to define and measure performance, resulting in vagueness regarding merit award criteria. Fifth, employees may be unable to differentiate between merit pay (i.e., compensation tied to effort and performance) and other types of pay increases. Sixth, there may be a lack of honesty and cooperation between management and employees. Finally, it has been shown that “overall” merit pay plans do not motivate higher levels of employee performance.

There are no easy solutions to these problems. However, organizations may establish a merit pay guidelines chart that functions as a “look-up” table for awarding merit increases on the basis of (1) employee performance, (2) position in the pay range, and in a few cases, (3) time since the last pay increase. In addition, organizations should strive to ensure that their performance appraisal system is reliable and valid. Any deficiencies in the performance appraisal system (as discussed in Chapter 8) can impair the operation of a merit pay plan. A third tactic that organizations may use is to implement a lump-sum merit pay plan. Under this type of plan, employees receive a single lump-sum increase at the time of their review, an increase that is not added to their base salary. This innovative approach provides financial control by maintaining annual salary expenses and helps to provide a clear link between pay and performance.

Indicate whether the statement is true or false.

1. Employer health plans are generally restricted to medical, surgical, and hospital expenses. a. True b. False 2. Employee benefits are a form of indirect compensation. a. True b. False 3. Some benefits are now considered rights to which employees are entitled, rather than a gift of the employer. a. True b. False 4. Many employers provide unneeded and unwanted types of medical benefits to their employees. a. True b. False 5. Since provincial health care benefits cover basic health care services, very few employers offer supplementary health benefits. a. True b. False 6. Legally required benefits amount to 50 percent of the benefits packages that Canadian employers provide. a. True b. False 7. Childcare, eldercare and extended leave policies are all examples of employee services. a. True b. False 8. In a defined-contribution pension plan, the amount an employee is to receive upon retirement is specifically set forth. a. True b. False 9. Severance pay is a one-time payment to employees who have been terminated. a. True b. False 10. Online benefits programs allow employees self-service freedom and availability virtually any time. a. True b. False 11. Employee assistance programs and wellness programs cannot help organizations cut the costs of health care benefits. a. True b. False 12. In addition to paid holidays, some employers give workers additional personal use days. a. True b. False

13. The Canada and Quebec Pension Plans both require employer and employee contributions. a. True b. False 14. Canadian organizations are expected to continue to implement a wider variety of employee benefits and services. a. True b. False 15. Many firms outsource their cafeteria plans to a professional vendor because of the complexity of administering the system. a. True b. False 16. To reflect the social changes Canada is facing, employers are increasingly tailoring their benefits programs to be family friendly. a. True b. False 17. People who have been resident in a Canadian province for three months are eligible to receive health care benefits. a. True b. False 18. It would be desirable for employers to enlist employee participation in modifying a benefits program. a. True b. False 19. The declining cost of health care benefits provides Canadian organizations opportunities to reduce employee benefit costs. a. True b. False 20. Canadian employees may retire at age 45 and begin drawing a reduced pension from CPP/QPP and other sources such as RRSPs. a. True b. False 21. When organizations need to reduce their workforce, “silver handshakes” are sometimes used to encourage employees to retire before they had originally planned. a. True b. False 22. Once extremely popular, group life insurance for employees has steadily declined in use. a. True b. False 23. It is primarily the responsibility of the employee to remain informed about the benefits he or she receives. a. True b. False 24. In the past two decades, more and more employees have been receiving dental care insurance as a benefit. a. True

b. False 25. Because of added expenses and complicated governmental rules, defined-benefit pension plans are falling out of use. a. True b. False 26. Health care benefits are considered “discretionary” because employers are not required by law to provide them. a. True b. False 27. CPP and QPP have universal portability—that is, an employee has the right to claim benefit credits wherever they are employed in Canada. a. True b. False 28. The growth in health care costs can be attributed to a number of factors, including the greater need for health care by an aging population. a. True b. False 29. Flexible benefits plans are also known as “cafeteria” plans. a. True b. False 30. Benefits programs should be based on specific objectives in line with the organization’s strategic compensation plan. a. True b. False 31. Long-term disability plans normally provide a disabled employee with 90–100 percent of their pre-disability income. a. True b. False 32. At the present time, employers are required to provide pension plans to all full-time employees. a. True b. False 33. Workers’ compensation insurance is based on a system of individual liability. a. True b. False 34. Employment insurance benefits are available for illness, injury, maternity, parental, and adoption leave. a. True b. False 35. Employees who resign from a position or who are terminated for cause may not be eligible to collect employment insurance (EI). a. True b. False 36. Once employees have two years of service, they are considered, in terms of their pension fund, fully vested and locked in.

a. True b. False 37. Benefit packages of any kind still help employers attract and retain quality employees. a. True b. False 38. Most of the pension plans in privately held organizations are contributory. a. True b. False 39. In Canada, the higher the household income, the lower the retirement age. a. True b. False 40. In a defined-benefit plan, the retirement benefit is determined according to a predetermined formula. a. True b. False 41. Company-sponsored preretirement programs force employees to think about what their lives will be like after they leave the organization. a. True b. False 42. Employee assistance programs (EAPs) help employees mainly with relocation costs. a. True b. False 43. Only employees contribute to the Employment Insurance (EI) fund. a. True b. False 44. With contributory pension plans, contributions are made jointly by employers and the government. a. True b. False 45. Many employers now offer additional health care benefits such as dental and prescription drug coverage. a. True b. False 46. Both employees and employers make contributions toward a workers’ compensation fund. a. True b. False 47. The Conference Board of Canada has concluded that it is not possible to contain the cost of employee benefit programs. a. True b. False 48. “Payment for time not worked” includes statutory holiday pay, time off for bereavement, military duty, vacation pay,

jury duty, rest periods, coffee breaks, and maternity leave (which usually involves some form of salary continuance). a. True b. False 49. A primary objective of most benefits programs is to increase turnover. a. True b. False 50. Approximately one-third of Canadians have eldercare responsibilities. a. True b. False 51. Employee benefits typically represent 40 percent of total payroll costs to employers. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

52. Which of the following is a fast, convenient, and interactive way employees can learn about or change their benefits? a. employee self-service (ESS) systems b. personal benefit profiles c. bulletin boards in the workplace d. benefits information packets 53. The Meat Shop, one of Canada’s best employers according to a recent survey, is considering ways to contain its rising benefits costs. Which of the following is NOT a wise option for the Meat Shop? a. making contribution changes, such as deductibles b. putting dollar limits on some benefits c. instituting flexible benefits d. making cuts to mandatory benefits 54. Which of the following benefits must be provided by employers in Canada because it is legally required? a. dental benefits b. employment insurance c. vision care d. out-of-country medical assistance 55. Management at ABC Inc. wants to introduce a new benefit that is not required by law. What should it do first? a. develop an HRIS system to help with its administration b. establish that there is a need for it c. lobby the government to make it mandatory d. hire a consulting firm to roll it out 56. Tommy Lee is recovering from a drug addiction problem. His employer has offered him services to help him with the recovery process. What is this service an example of? a. an employee assistance program

b. an outplacement service c. a defined-benefit plan d. a defined contribution plan 57. Which type of pension plan with fixed payouts is experiencing a decline in its use in Canada? a. defined-benefit plan b. defined-contribution plan c. contributory plan d. registered retirement savings plan (RRSP) 58. What is an important reason why employers need to communicate the extent and value of the benefits they provide? a. Such communication is required by the law. b. The HR department needs this information for its communication outlets. c. It immediately reduces the overall costs. d. Employees generally underestimate the value of the benefits offered.

59. Which of the following statements does NOT describe management concerns about benefits? a. Management is concerned with promoting a shift in mindset from self-responsibility to entitlement. b. Management is concerned with the escalating cost of health care benefits. c. Management is concerned with tax consequences. d. Management is concerned with union demands.

60. Which of the following is related to the recent use of employee assistance programs (EAPs) in Canada? a. They are increasing in use. b. They are decreasing in use. c. They add no costs to the employer. d. They are not geared for dealing with emotional problems.

61. What’s a major disadvantage of cafeteria benefit plans? a. They increase the complexity of the administration of the plans. b. They are rejected by most workers. c. Unions oppose them. d. They increase government costs.

62. A large portion of an organization’s total payroll is devoted to employee benefits and this figure has risen over the past few decades. Which of the following has NOT contributed to this increasing cost? a. additional benefits offered voluntarily by organizations b. legislation forcing employers to establish some benefits c. the use of online, interactive benefits programs d. employers trying to match the competition Scenario 11.2 Bradshaw, Petrilli & Blake Inc. (BPBI) is a Canadian financial planning firm that provides financial advice for companies

across Canada and the United States. The firm offers employees great benefits and excellent salaries. Its workforce is composed of predominantly “Generation Y” employees. These employees are very tech-savvy, achievement focused, and, most importantly, family centric (they value flexible schedules and work–life balance). While they understand the demands of the job, they often get caught between the needs of the organization’s clients and their family responsibilities, especially as related to their children. Currently, there is little flexibility if employees want to attend to family needs during work hours. BPBI is now looking into ways of helping its employees better meet these dual needs.

63. Refer to Scenario 11.2. BPBI would like to also set up an employee assistance program (EAP) to help employees solve their personal problems, or at least prevent those problems from turning into crises that are likely to affect their ability to work productively. Which of the following are programs offered by EAPs in today’s organizations? a. seminars and workshops to help prepare for retirement b. counselling and referral services for alcohol or drug problems, emotional problems, or financial or family crises c. increased pension benefits or cash bonuses d. salary continuance programs, sick leave credits, and weekly indemnity plans 64. What are the two critical factors considered when determining the amount of employment insurance to be paid to unemployed applicants? a. their education and experience b. the number of hours worked and their education c. the number of hours worked in the past year and regional unemployment rates d. the size of the firm and the salary of the employee 65. From a pension perspective, what is a key issue concerning the aging of baby boomers in Canada? a. There are more demands for dental benefits. b. Baby boomers are leaving management, thus there is a loss to the HR managers who oversee this benefit. c. There are fewer contributions to the pension fund by younger generations and more withdrawals for funding pensions for baby boomers, thus putting the fund at risk of depletion. d. Younger generations are demanding reduced pensions for those leaving the workforce.

66. Logan Wolverine works for RAY Vision Inc. The employer deducts money every month from Logan’s paycheque for his pension plan. RAY Vision matches this amount for his pension. What type of plan is this? a. a defined-benefit plan b. a defined-contribution plan c. a contributory plan d. a noncontributory plan 67. The collective bargaining agreement between ACME Inc. and the union CUPA 1003 Local requires the employer to provide a limited vision care package. Workers are demanding more. Who will determine any new package? a. the union and the government b. the government c. the employer and the union d. the employer Scenario 11.1 Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years.

Previously, all HR-related functions were extremely informal or almost nonexistent. With the rising turnover, and a constant struggle to retain employees during the company’s rapid growth, Canadian Fasteners has decided to implement

an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company’s future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients.

68. Refer to Scenario 11.1. Canadian Fasteners must ensure that the benefits it offers employees are fulfilling the legal requirements. Which of the following is not legally required? a. survivor benefits b. employer contributions to the Canada and Quebec pension plans c. employment insurance d. workers’ compensation insurance 69. Most pension plans are now viewed as providing deferred income that employees accumulate during their working life and that belongs to them after a specified number of years of service. What view is this based on? a. provincial law b. a pay-as-you-go philosophy c. a reward philosophy d. an earnings philosophy 70. In terms of childcare provisions, which of the following is considered the most visible and desired solution? a. short time-off for mothers b. on-site or near-site daycare centres c. short time-off for fathers d. grandparents to provide care 71. How are childcare programs and eldercare programs similar? a. Under both programs, most of the caregivers are men. b. Both types of programs typically offer on-site care facilities. c. Both programs are on the decline in Canada. d. Both programs help to maintain or increase employee productivity.

72. Which of the following statements is most applicable to the benefits costs to employers in Canada and the United States? a. Benefits costs are higher in Canada. b. Benefits costs are higher in the United States. c. Benefits costs are the same in Canada and the United States. d. Benefits costs are both negligible in Canada and the United States.

73. In Canada, registered retirement savings plans (RRSPs) have grown significantly over the past few years. What is a key reason for this growth? a. Minimum wage earners now have more disposable income and they are contributing. b. The funds accumulate tax-free until they are withdrawn. c. The rich–poor gap is narrowing, thus people have more money to invest. d. RRSPs are a part of stock plans, which are growing.

74. What is an important factor in determining the effectiveness of benefits programs in organizations? a. level of competition

b. employee motivation c. state of the broader economy d. effective administration 75. What are two of the largest health care costs in Canada for employers? a. administrative and infrastructure costs b. drugs and administrative costs c. drug and hospital costs d. administrative and hospital costs Scenario 11.1 Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years.

Previously, all HR-related functions were extremely informal or almost nonexistent. With the rising turnover, and a constant struggle to retain employees during the company’s rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company’s future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients.

76. Refer to Scenario 11.1. Canadian Fasteners wants to take into consideration changes in the diversity and lifestyles of its workforce. Which of the following would be the best option for the company? a. implementing a defined-benefit program b. tailoring its benefits programs to be family friendly c. paying employees money in lieu of benefits d. continuing with the way it is currently doing things 77. Which of the following is an example of a family-friendly benefit that is increasingly being used? a. defined benefits b. tuition reimbursements c. eldercare d. defined contributions 78. Susie Jones has definite preferences in terms of the benefits offered by her employer. Susie will be able to select the benefits she values highly and avoid those she does not need or want if her employer offers which benefit format? a. an employee selection plan b. a flexible benefits plan c. a benefit pool d. a modified benefits system 79. What’s a major problem facing the Canada Pension Plan? a. the aging population b. public disapproval c. decreased subsidies from government d. employer resistance 80. Omar Morales, an older employee, is considering an early retirement package that his employer has offered; it

includes improved benefits and cash bonuses. What do we call this type of inducement? a. a silver handshake b. a golden parachute c. a platinum cushion d. a severance pay 81. Canada has experienced a growth in the proportion of part-time workers (versus full-time) over the past decade. What is a key reason for this growth? a. Employers tend to save on compensation and benefits costs. b. The government is forcing firms to hire on a part-time basis. c. Unions prefer workers to have part-time jobs. d. Many full-time jobs are outsourced overseas.

82. James Callaghan has worked full-time for BC Metals for four years. He has learned from the HR manager that his earned pension benefits cannot be revoked by the employer. Why is this so? a. because the employer expects him to work until retirement b. because the benefits are vested c. because the union would strike if they are revoked d. because the benefits are defined 83. ABC Corporation allows employees the opportunity to try out retirement with a leave program, or gradually reduce their work hours as they approach retirement age. What is this an example of? a. retirement leave b. CPP/QPP c. family-friendly benefits d. a preretirement program 84. Stella Vickram will receive a pension of $2500 per month if she continues to work with ABC Media until she retires.

She is now 45 years old. What type of plan is this? a. a contributory plan b. a noncontributory plan c. a defined-contribution plan d. a defined-benefit plan 85. Bob Jones was recently permanently laid off. His company, ACME Manufacturing, has issued Bob a cheque that represents one month’s pay for every year Bob worked at ACME. What does this cheque represent? a. Bob’s unused vacation pay b. Bob’s unused benefits c. Bob’s unused sick leave d. Bob’s severance pay 86. A predetermined formula is used to calculate retirement benefits under what type of benefit plan? a. a defined benefit plan b. a defined contribution plan c. a specified benefit plan d. a non-specified benefit plan

87. Which of the following is NOT a benefit of family-friendly programs? a. improving productivity b. reducing tardiness c. increasing the risk of unionization d. reducing employee absenteeism Scenario 11.1 Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years.

Previously, all HR-related functions were extremely informal or almost nonexistent. With the rising turnover, and a constant struggle to retain employees during the company’s rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company’s future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients.

88. Refer to Scenario 11.1. Canadian Fasteners is a small-size firm that still needs to monitor its costs. Which of the following would be most cost-effective for the company? a. setting up its own in-house system to be administered by the new HR manager and new staff b. hiring a full-time benefits specialist c. hiring a professional benefits vendor to administer the plan d. declining to provide pension and benefits to it employees 89. In a non-contributory pension plan, who makes the financial contributions? a. the employer only b. the employee only c. the employer and the employee d. the employer, the employee, and the government Scenario 11.1 Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years.

Previously, all HR-related functions were extremely informal or almost nonexistent. With the rising turnover, and a constant struggle to retain employees during the company’s rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company’s future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients.

90. Refer to Scenario 11.1. Some of Canadian Fasteners’ employees have been around since its inception and are well into their late 40s. Which of the following pension plans would be most effective in allowing employees to have a decent pension when they retire? a. a noncontributory plan b. a contributory plan c. a registered retirement savings plans with only the employee contributing d. a defined noncontributory plan 91. Canada’s workforce is becoming increasingly diverse. How is this having an impact on benefits programs?

a. Greater pension contributions are required by employers. b. There are lower out-of-pocket costs for employees. c. Benefit programs are becoming more family-friendly. d. Benefits packages now cover part-time as well as full-time employees.

92. Which of the following do employers often use to obtain employee input regarding benefits packages? a. performance appraisals b. market surveys c. opinion surveys d. psychological tests 93. Justin Bryant worked for ABC Corporation for ten years before leaving. He was told that his benefits have vested.

What does this mean? a. He can withdraw the benefits at any time. b. He needs to cash out his benefits immediately or he will lose them. c. He has lost his pensions earned at ABC Corporation. d. He has accrued pension benefits at retirement age.

94. Great Parcel Inc. has numerous office locations across Canada, including isolated areas with no access to the Internet.

What would be the most efficient way for the company to communicate a new benefit to all its employees? a. online modules b. a meeting in a central location c. trips by the organization’s top executive team to all the locations d. payroll inserts 95. What are holiday pay, sick leave, and vacation pay examples of? a. categories of health care benefits b. benefits required by law c. payment for time not worked d. unearned benefits 96. Which statement best describes flexible benefit plans? a. They are offered as a bonus to executives. b. They are favoured by employers because they reduce administration costs. c. They allow employees to choose benefits suited to their needs. d. They are offered to employees who then must purchase each benefit they select.

97. ABC Corporation uses the services of professional benefits vendors to administer their benefits. What is this practice a form of? a. outsourcing b. shared services c. freelancing d. delegation Scenario 11.2 Bradshaw, Petrilli & Blake Inc. (BPBI) is a Canadian financial planning firm that provides financial advice for companies

across Canada and the United States. The firm offers employees great benefits and excellent salaries. Its workforce is composed of predominantly “Generation Y” employees. These employees are very tech-savvy, achievement focused, and, most importantly, family centric (they value flexible schedules and work–life balance). While they understand the demands of the job, they often get caught between the needs of the organization’s clients and their family responsibilities, especially as related to their children. Currently, there is little flexibility if employees want to attend to family needs during work hours. BPBI is now looking into ways of helping its employees better meet these dual needs.

98. Refer to Scenario 11.2. Which of the following is NOT a family-friendly benefit that will help BPBI develop and maintain work–life balance? a. allowing employees to work from home b. allowing flexible scheduling of work hours c. facilitating employer-paid on-site or near-site childcare facilities d. allowing time off for children’s school activities 99. Who contributes financially to the Employment Insurance Fund that is used to support unemployment insurance claims? a. employers and employees b. the government and employees c. unions and employees d. the government and employers 100. Ideally, which of the following should apply to an organization’s benefits system? a. It should mirror that of the competition, so as to attract top applicants. b. It should be restricted to mandatory benefits. c. It should be aligned to the overall strategy of the organization. d. It should be more than 50 percent of payroll costs, so as to be competitive.

101. Employer-sponsored employee assistance programs (EAPs) are created to help workers overcome hurdles in their personal lives. Which employee is the most likely to receive help under a typical EAP? a. John Jones, who needs assistance to overcome a chemical dependency problem. b. Steve Brown, who needs legal help in a personal bankruptcy proceeding. c. Cindy Savage, who needs a list of qualified daycare facilities near the office. d. Kate Johnson, who needs help choosing an appropriate M.B.A. program.

Scenario 11.2 Bradshaw, Petrilli & Blake Inc. (BPBI) is a Canadian financial planning firm that provides financial advice for companies across Canada and the United States. The firm offers employees great benefits and excellent salaries. Its workforce is composed of predominantly “Generation Y” employees. These employees are very tech-savvy, achievement focused, and, most importantly, family centric (they value flexible schedules and work–life balance). While they understand the demands of the job, they often get caught between the needs of the organization’s clients and their family responsibilities, especially as related to their children. Currently, there is little flexibility if employees want to attend to family needs during work hours. BPBI is now looking into ways of helping its employees better meet these dual needs.

102. Refer to Scenario 11.2. In order to promote work–life balance at BPBI, management has decided to adopt more creative and unusual benefits as a way to deter turnover. Which of the following would be most welcomed by “Generation Y” employees? a. on-site restaurants where employees can have dinner together b. extended childcare when employees work later hours c. free baseball tickets for families and friends

d. pay increases to offset the extra overtime hours worked each day 103. Which of the following is based on the perspective that work-related accidents and illnesses should be considered a cost of doing business and that employees should not bear the costs of their treatment? a. unpaid leave b. medical care benefits c. paid sick time d. workers’ compensation insurance

104. Compare and contrast the risks to the employee in regard to defined-contribution and defined-benefit pension plans.

105. Describe some of the ways employers have been trying to contain health care benefit costs.

106. What considerations should an organization make in implementing an effective benefits program?

107. Explain the concept of family-friendly benefits. Name and discuss at least five of these benefits employers offer their employees.

Answer Key 1. False 2. True 3. True 4. True 5. False 6. False 7. True 8. False 9. True 10. True 11. False 12. True 13. True 14. True 15. True 16. True 17. True 18. True 19. False 20. False 21. True 22. False 23. False 24. True 25. True 26. True 27. True

28. True 29. True 30. True 31. False 32. False 33. False 34. True 35. True 36. True 37. False 38. True 39. True 40. True 41. True 42. False 43. False 44. False 45. True 46. False 47. False 48. True 49. False 50. True 51. False 52. a 53. d 54. b 55. b

56. a 57. a 58. d 59. a 60. a 61. a 62. c 63. b 64. c 65. c 66. c 67. c 68. a 69. d 70. b 71. d 72. b 73. b 74. d 75. c 76. b 77. c 78. b 79. a 80. a 81. a 82. b 83. d

84. d 85. d 86. a 87. c 88. c 89. a 90. b 91. c 92. c 93. d 94. d 95. c 96. c 97. a 98. a 99. a 100. c 101. a 102. c 103. d 104. In a defined-benefit pension plan, retiring employees are guaranteed a particular payment level (i.e., the retirement benefit is “defined”). However, in a defined-contribution pension plan, the only guarantee to employees is that the employer will contribute a set dollar amount on their behalf to the pension plan (i.e., the contribution is “defined”). While the pension benefits under a defined-benefit plan are fixed, the pension benefits of the defined-contribution plan vary according to the success of the plan’s investments (i.e., superior investment decisions will yield greater pension payments than mediocre or poor decisions).

Under the defined-benefit plan, retiree risk is largely limited to whether the fund is properly funded and whatever effects inflation will have on their fixed pension cheques. Under the defined-contribution plan, retiree risk is associated with the general risks and rewards of investments, the quality of investment advice, and the risks commonly associated with the defined-benefit plans.

105. The cost of health care programs has become the major concern in the area of employee benefits. Several approaches can be used to contain health care costs, including reduction in coverage, increased coordination of benefits, and increased deductibles. Employee assistance programs (EAPs) and wellness programs can also help cut the costs of health care benefits.

106. Benefits are an established and integral part of the total compensation package. In order to have a sound benefits program, there are certain basic considerations. It is essential that a program be based on specific objectives that are compatible with the organization’s philosophy and policies, as well as affordable. Through committees and surveys, a benefits package can be developed to meet employees’ needs. Through the use of flexible benefit plans, employees are able to choose those benefits that are best suited to their individual needs. An important factor in how employees view the program is the full communication of benefits information through meetings, printed materials, and annual personalized statements of benefits.

107. Many organizations are seeking to create a family-friendly organizational environment that allows employees to balance work and personal needs. There are a wide variety of family-friendly benefits that organizations may offer. To help workers cope with a wide variety of problems that interfere with the way they perform their jobs, organizations have developed employee assistance programs. These programs provide diagnosis, counselling, and referral for advice or treatment when necessary for problems related to alcohol or drug abuse, emotional difficulties, and financial or family difficulties. Usually the organization covers—in part or totally—costs of tuition, books, and related fees. The increased employment of employees with dependent children and/or eldercare responsibilities has created an unprecedented demand for childcare and eldercare arrangements. In response, many organizations provide financial assistance and on-site childcare centres and support for eldercare. In addition, many organizations are implementing employee-accumulated leave days for dependant care and extended leave policies for child- and/or eldercare. In addition, organizations may also offer access to legal services, financial planning, housing and moving expenses, transportation pooling, credit unions, recreational and social services, and work-at-home arrangements/telecommuting to offer savings to employees and reduce stress.

Indicate whether the statement is true or false.

1. It is the supervisor’s duty to ensure that workers use or wear safety equipment, devices, or clothing. a. True b. False 2. Employees who work alone are at a lower risk of encountering workplace assaults. a. True b. False 3. Safety incentive programs are only effective when they are based on monetary rewards. a. True b. False 4. Burnout is an early stage of distress. a. True b. False 5. An employee’s supervisor is the primary source of safety-related information. a. True b. False 6. Employers have many responsibilities in providing safe workplaces for employees. a. True b. False 7. Once informed by the employer of safety hazards or health regulations, it is the employee’s responsibility to comply

with occupational health and safety legislation. a. True b. False 8. An individual who suffers clinical depression after a serious accident is eligible for workers’ compensation while receiving treatment for the accident. a. True b. False 9. Stress is any demand on the individual that requires coping behaviour. a. True b. False 10. If an injured employee has been off work for six months, that person has only a 20 percent chance of returning. a. True b. False 11. There is legislation pertaining to occupational health and safety in every province and territory in Canada. a. True b. False 12. In 2012, there were more than 950 Canadian workplace-related deaths. a. True b. False 13. Health and safety committees in the workplace are comprised only of management representatives. a. True b. False 14. If at all possible, one should avoid stress. a. True b. False 15. The goal of workers’ compensation is to return the employee to work as soon as possible. a. True b. False 16. Most employers are implementing extensive drug testing and immediately terminating employees that are found to be using illegal drugs. a. True b. False 17. A supervisor’s primary obligation to employee safety is to communicate safety standards and train employees in safe practices. a. True b. False 18. An occupational illness is any abnormal condition or disorder caused by exposure to environmental factors associated with employment. a. True

b. False 19. It is generally recognized that there is little that management can do to prevent cumulative trauma disorders (repetitive motion injuries). a. True b. False 20. To capitalize on the benefits of video display terminals while safeguarding employee health, employers should make sure that employees sit in a stable chair with the computer screen 10 to 25 cm (4 to 9 inches) above eye level. a. True b. False 21. Although there are over 65 000 chemicals used in the workplace, nearly all of these chemicals are safe and do not pose any concerns to workers. a. True b. False 22. In addition to rewards for safe behaviour, it is equally important that organizations enforce safety rules through penalties such as discipline. a. True b. False 23. Alcoholism primarily affects blue-collar workers. a. True b. False 24. Penalties for violations of health and safety regulations include substantial fines, as well as jail terms. a. True b. False 25. Stress that is harmful to some employees may be healthy for others. a. True b. False 26. Very few Canadian employers have a formal safety program. a. True b. False 27. Eustress is the feeling of euphoria one gets after a strenuous workout. a. True b. False 28. The Workplace Hazardous Materials Information System (WHMIS) was developed to provide a common information system for labelling dangerous work activities. a. True b. False 29. Employee morale can be affected by accidents and illnesses attributed to the workplace. a. True b. False

30. Health and safety procedures should be an important part of new employee orientation. a. True b. False 31. Crisis management teams are composed of both hourly and managerial employees who develop action plans to respond to violent situations. a. True b. False 32. The success of a safety program depends largely on the HR department. a. True b. False 33. The emphasis in workers’ compensation has been shifting to creating safer workplaces. a. True b. False 34. Improved employee health is associated with lower levels of absenteeism and increased efficiency. a. True b. False 35. The members of the safety committee should investigate only accidents resulting in serious injuries. a. True b. False 36. The definitions of accidents and injuries have expanded to include stress. a. True b. False 37. To minimize the negative effects of computer use, the monitor should be placed at an angle view, above the user’s line of sight. a. True b. False 38. Occupational health and safety are regulated solely by the federal government. a. True b. False 39. Personal crises involving marital, family, financial, or legal matters are the most prevalent employee problems. a. True b. False 40. Video display terminals (VDTs) have become a major safety concern within the office environment. a. True b. False 41. Inadequate recognition for a job well done can be a major stressor. a. True b. False

42. The Internet and other forms of information technology can play a key role in health and safety programs. a. True b. False 43. The rising use of video display terminals at work has led to the proliferation of visual difficulties, radiation hazards, muscular aches and pains, and increased job stress for employees using personal computers or network workstations on the job. a. True b. False 44. Nurses are victims of violence at a rate that is 16 times higher than other service workers. a. True b. False 45. Workplace signs of depression include decreased energy, irritability, and memory problems. a. True b. False 46. Under workers’ compensation, injured workers are entitled to a cash payout in the case of permanent disability. a. True b. False 47. A serious violation of a safety rule may be grounds for employee termination, even for a first offence. a. True b. False 48. Crisis management teams should also concern themselves with the aftermath of violence, such as the guilt and fear employees may have. a. True b. False 49. Employees do not have any specific duties related to their safety. a. True b. False 50. Employees who perform manual tasks on a continual basis are strong candidates for carpal tunnel syndrome. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

51. Managerial, technical, or public contact jobs may all experience a kind of stress that usually energizes them. What is this positive stress called? a. eustress b. pos-stress c. distress d. fight-or-flight stress 52. An employee has been diagnosed with depression and possible mental illness. Her manager has organized professional counselling for her as part of the organizational response to her problems. This counselling is most likely a form of which of the following?

a. an employee assistance program b. a depression diagnostic service c. a crisis prevention program d. a mental preparedness program 53. What is the key role for the supervisor with respect to safety? a. to administer employee disciplinary procedures b. to monitor actions of co-supervisors c. to inform management about workers who are doing unsafe work d. to communicate to an employee the need to work safely 54. Not so long ago, many workers suffered work-related health issues through contact with asbestos in workplaces. What is this an example of? a. industrial illnesses b. occupational injuries c. occupational illnesses d. industrial diseases Scenario 12.1 Safe Haven is a daycare facility that caters to teenagers and adults with severe disabilities. Employees with Safe Haven get extensive training on how to keep their clients relaxed, stress free, and happy, but the training does not take into consideration how stressful the job is on employees. Recently, there has been an increase in turnover, and employees who do stay for some time tend to take more time off than normal. Even when they return to work, they seem uptight and stressed out. The HR manager wants to design some programs that can assist these employees in dealing with the stress that is inherent with this type of work.

55. Refer to Scenario 12.1. Which of the following is a step in the right direction if Safe Haven wants to help its employees better deal with job-related stress? a. redesigning and enriching jobs as much as possible b. focusing on less important items and making them important c. recognizing that change is not always good, thus making no changes in the physical factors in the environment d. making employees’ work roles very defined 56. Cathy has been experiencing severe stress on the job, including depression, frustration, and a loss of productivity.

What is she most likely experiencing? a. burnout b. an alarm reaction c. eustress d. severe eustress 57. What program aims to help employees with nutrition, weight control, and avoidance of substances harmful to health? a. a fitness program b. an employee assistance program c. a health service program d. a wellness program

58. When is the ideal time for employee safety training to commence? a. before returning to work after an accident or injury b. immediately after an accident or injury c. with new employee orientation d. after receiving the first paycheque Scenario 12.2 Boat Xpress is a shipping firm in a small rural area in Northern Ontario. The company hires mainly part-time workers, but has them work full-time hours. This way, the firm does not have to pay employees benefits or provide them with more than 4 percent vacation pay. The working conditions at Boat Xpress are very bleak, and health and safety standards are nonexistent. If an employee is injured on the job, he or she goes home without pay until well enough to resume working.

Several employees have tried to organize but they end up getting fired, and the firm threatens to shut down if they continue trying or report incidents. Because employees need these jobs to survive and take care of their families, they believe they have no other choice but to continue working.

59. Refer to Scenario 12.2. Boat Xpress is violating the occupational health and safety regulations. Which of the following is accurate about the penalties for employer noncompliance? a. fines up to $500 000 and offenders can be sent to jail b. fines up to $1 000 000 but jail time is not part of any penalty c. only a warning for first-time offenders d. no criminal charges against coworkers, supervisors, or executives 60. Which category of employees is at the lowest risk of workplace violence? a. insurance agents who visit clients’ homes b. postal workers c. nurses d. bankers who work in offices 61. Who is the most likely perpetuator of workplace bullying? a. traumatized employees b. abused employees c. authority figures d. junior employees Scenario 12.2 Boat Xpress is a shipping firm in a small rural area in Northern Ontario. The company hires mainly part-time workers, but has them work full-time hours. This way, the firm does not have to pay employees benefits or provide them with more than 4 percent vacation pay. The working conditions at Boat Xpress are very bleak, and health and safety standards are nonexistent. If an employee is injured on the job, he or she goes home without pay until well enough to resume working.

Several employees have tried to organize but they end up getting fired, and the firm threatens to shut down if they continue trying or report incidents. Because employees need these jobs to survive and take care of their families, they believe they have no other choice but to continue working.

62. Refer to Scenario 12.2. Which of the following is a duty of supervisors at Boat Xpress? a. requesting and receiving information about safety and health conditions b. advising employees of potential workplace hazards c. exercising the right to refuse unsafe work without fear of reprisal d. reporting concerns of hazardous working conditions to supervisors, which will trigger investigations

63. Which of the following is a common requirement for employers in all jurisdictions in Canada? a. They have to employer a Safety Officer. b. They must store all the relevant data in files located in the human resource management departments. c. They have to devote at least 1% of their budgets to health-related prevention measures. d. They have to report all accidents that cause injuries and diseases to the Worker Compensation Boards.

Scenario 12.1 Safe Haven is a daycare facility that caters to teenagers and adults with severe disabilities. Employees with Safe Haven get extensive training on how to keep their clients relaxed, stress free, and happy, but the training does not take into consideration how stressful the job is on employees. Recently, there has been an increase in turnover, and employees who do stay for some time tend to take more time off than normal. Even when they return to work, they seem uptight and stressed out. The HR manager wants to design some programs that can assist these employees in dealing with the stress that is inherent with this type of work.

64. Refer to Scenario 12.1. Which of the following is NOT a useful tip in helping to reduce job-related stress at Safe Haven? a. set realistic deadlines and negotiate reasonable deadlines with managers b. build rewarding relationships with coworkers c. talk openly with managers and employees about job or personal concerns d. wait to act on problems or concerns of importance 65. Which of the following is NOT a high-risk work circumstance associated with workplace violence? a. working with information technology b. working alone c. interacting with the public d. dealing with the exchange of money 66. Which of the following work schedules/arrangements results in the most fatigue for workers? a. job rotation b. night shifts c. regular day shifts d. job sharing 67. Jenny Jones has been working at the same job—typing almost all day—for the past five years. She has now damaged her wrist as a result of the work. What is her problem most likely a form of? a. ambidextrosis b. muscular dysfunctions c. cumulative trauma disorder d. systematic trauma 68. When are overachievers most likely to experience burnout? a. when rewards are low b. when the work is not sufficiently challenging c. when unrealistic goals are unattainable d. when work?0?life balance is achieved 69. What is the key goal of workers’ compensation? a. to return the employee to the workplace as soon as possible b. to remind employers and employees about the need for a safe and healthy

workplace c. to ensure employers do not suffer significant financial losses d. to ensure that health care costs are kept at a minimum.

Scenario 12.2 Boat Xpress is a shipping firm in a small rural area in Northern Ontario. The company hires mainly part-time workers, but has them work full-time hours. This way, the firm does not have to pay employees benefits or provide them with more than 4 percent vacation pay. The working conditions at Boat Xpress are very bleak, and health and safety standards are nonexistent. If an employee is injured on the job, he or she goes home without pay until well enough to resume working.

Several employees have tried to organize but they end up getting fired, and the firm threatens to shut down if they continue trying or report incidents. Because employees need these jobs to survive and take care of their families, they believe they have no other choice but to continue working.

70. Refer to Scenario 12.2. Boat Xpress, like any other Canadian firm, has certain duties. Which of the following is NOT a duty of Boat Xpress? a. report all accidents that cause injuries to the Workers’ Compensation Board b. provide safety training to all employees c. reward employees for safe work practices d. prove due diligence has been carried out 71. Which of the following has a direct correlation with a decrease in workplace accidents? a. joint safety committees b. ISO certification c. safety notices in the workplace d. management’s commitment to safety 72. Which of the following is LEAST likely to be promoted through company programs and services? a. increased efficiency b. reduced absenteeism c. better morale d. exemption from safety inspection 73. On average, about how many work-related deaths are there in Canada every working day? a. 2 b. 4 c. 5 d. 10 74. What do we call the number of injuries and illnesses per 100 full-time employees during a given year? a. the incidence rate b. the accident rate c. the injury and illnesses rate d. the safety rate 75. What do joint health and safety committees consist of? a. management and government representatives b. employee (union) representatives c. health and safety officers

d. both employee (union) and management representatives 76. Mary is beginning to sense a loss of security and adequacy in her work at ABC Inc. What is it that she is beginning to experience? a. cumulative trauma disorders b. distress c. eustress d. dysfunctional adaptation 77. What is the best way to proactively manage workplace violence? a. develop a zero-tolerance policy for violence b. implement a strenuous disciplinary policy c. report violence to the police as soon as it happens d. hire armed guards to oversee workplace activities 78. Which of the following best describes employees who smoke versus those who are non-smokers? a. Health care costs are lower for employees who smoke than for non-smokers. b. Employees who smoke and non-smokers have similar levels of absenteeism and productivity. c. Non-smoking employees have lower levels of absenteeism than employees who smoke. d. Employees who smoke are typically more productive and have less absenteeism than nonsmokers.

79. What is the leading cause of worker fatalities each year? a. falls from buildings b. fire c. attacks by coworkers d. motor vehicle crashes 80. What is the best method to capitalize on the benefits of video display terminals while safeguarding employee health? a. placing the computer monitor to the side of the desk b. placing the computer screen 10 to 25 cm (4 to 9 inches) below eye level c. placing the computer screen 30 cm (12 inches) above eye level d. adjusting the brightness and contrast controls on the screen to be as high as possible 81. Assume that you are a new manager at a manufacturing plant. On your first day, you are on the factory floor and notice one employee verbally abusing another; a fight was imminent. Which of the following would NOT be a wise strategy for you to follow? a. try to separate the individuals and ask them to see you individually in private b. remain calm c. publicly ask the aggressor to back down, as this would help with developing your authority in the workplace d. listen and be nonjudgmental 82. Harry Davis has been found guilty of smoking around a volatile substance in his workplace. It is his first offence after 25 years. The employer, ABC Inc., has a progressive disciplinary system where employees are first given a written warning, then suspended for repeated violations, and dismissed as a last resort. What action should ABC Inc. take?

a. ABC Inc. must follow the progressive disciplinary system in punishing Harry. b. ABC Inc. may choose to terminate Harry, even though it is his first offence. c. ABC Inc. must involve the courts before making a decision. d. ABC Inc. must involve the government before making a decision.

83. Which category of service workers experiences the highest rate of violence against them? a. firefighters b. police c. nurses d. bankers Scenario 12.1 Safe Haven is a daycare facility that caters to teenagers and adults with severe disabilities. Employees with Safe Haven get extensive training on how to keep their clients relaxed, stress free, and happy, but the training does not take into consideration how stressful the job is on employees. Recently, there has been an increase in turnover, and employees who do stay for some time tend to take more time off than normal. Even when they return to work, they seem uptight and stressed out. The HR manager wants to design some programs that can assist these employees in dealing with the stress that is inherent with this type of work.

84. Refer to Scenario 12.1. If Safe Haven wants to design workshops to help its employees deal with the negative effect of job-related stress, it could include instructions in all of the following EXCEPT which one? a. relaxation techniques b. coping skills c. off-the-job-training d. listening skills 85. Which of the following statements best describes job-related stress? a. Burnout is the first stage of distress. b. Stress that is harmful to some employees may be healthy for others and improve their performance. c. Providing music of any kind will help relieve stress. d. Setting ever higher performance goals relieves employee stress by giving them self-esteem about their ability to achieve goals.

86. In British Columbia (BC), which of the following bodies regulate occupational health and safety? a. the BC provincial government only b. the federal government only c. the federal and BC governments d. the governments of Canada and all the provinces, including BC 87. Jack Spratt, the HR manager at Risky Bank Inc., has been working on a plan to prevent workplace violence. He has so far redesigned the workplace to include electronic surveillance and implemented new administrative practices, such as background checks. Which of the following would NOT be a good additional measure? a. keeping cash register funds to a minimum b. keeping track of immigrants in the workplace c. having a violence prevention policy in place d. forming crisis management teams 88. Which of the following is NOT usually considered an element of the Workplace Hazardous Materials Information System (WHMIS)? a. labels

b. material safety data sheets c. training d. compensation 89. An employee is showing signs of depression, including decreased energy, irritability, and hostility, in the workplace.

What should the HR manager do? a. suggest professional help b. diagnose the problem and urgently try to remedy it c. do nothing, as the problem will most likely go away d. suspend the employee so as to prevent workplace violence 90. What is burnout? a. a severe stage of eustress b. a mild stage of eustress c. a severe stage of distress d. a mild stage of distress 91. Who has the primary responsibility to inform employees about the health and safety requirements in the workplace? a. the employees themselves b. the employer c. the health and safety committee d. the safety officer 92. Most jurisdictions require the establishment of health and safety committees with both union and management representation. Which of the following is one of the expectations of this approach? a. It will educate the union about the problems their membership cause. b. It will show the union how tough management can be. c. It will help to develop a nonadversarial union–management climate. d. It will force the union not to strike.

93. With respect to the Joint Health and Safety Committees in organizations, which of the following is applicable? a. One member sits on the Board of Directors. b. There must be both union and employee representation. c. These committees can discipline the employer and employees. d. They are financially supported by the government.

94. Which of the following workers has only a limited right to refuse to do unsafe work? a. a firefighter b. a human resource management generalist c. a factory worker at an assembly plant d. a customer service representative at a bank 95. Which of the following statements best describes drug testing in the workplace? a. Managers are exempt from drug testing. b. Employees may use or abuse legal prescription drugs that affect their behaviour.

c. Managers have a right to test employees for any substance at any time. d. Human rights legislation encourages drug testing.

96. What’s a key issue in the debate on drug testing in Canadian workplaces? a. rewards for testing b. what types of drugs to test for c. who manages the testing d. potential for privacy violations 97. If an employee is experiencing personal problems, who is the individual most likely to refer the worker to the company’s employee assistance program? a. the employee himself or herself b. his or her spouse or significant other c. the CEO or president d. the employee’s supervisor 98. Tom Jones was recently injured on the job at ABC Steel Factory. Whose responsibility is it to report the accident to the Workers’ Compensation Board? a. Tom Jones himself b. Tom Jones’s coworkers c. the government’s safety officer d. ABC Steel Factory 99. Kent Factory Inc. is a sausage plant that has been receiving bad reports in the press related to its health and safety problems. The reports are causing a loss in profits. Assume that you are the new HR manager. Which of the following would be one of your first initiatives to deal with the problems? a. fire the HR staff because they have been ineffective in dealing with the problems b. alert the CEO that you are not a trained psychologist or a safety officer, so another department should handle the issue c. invite the press for a tour of the facilities d. diagnose the cause of the problems and formulate a plan to deal with them 100. Samantha works as a secretary at Bingo Bank and spends a significant period of her work day in front of a computer.

She is at risk of experiencing various problems associated with video display terminal use. Which of the following is Samantha NOT at risk of experiencing? a. disorientation b. muscle ache c. job stress d. visual difficulty

101. Compare and contrast the two general types of stress. Include an example of each.

102. You have just been asked by your department manager to write a violence prevention policy for your department.

What areas should be covered in the policy?

103. Briefly describe the duties of employers, supervisors, and workers with respect to health and safety legislation.

104. List and describe techniques for coping with stress.

Answer Key 1. True 2. False 3. False 4. False 5. True 6. True 7. False 8. True 9. True 10. False 11. True 12. True 13. False 14. False 15. True 16. False 17. False 18. True 19. False 20. False 21. False 22. True 23. False 24. True 25. True 26. False 27. False

28. False 29. True 30. True 31. True 32. False 33. True 34. True 35. False 36. True 37. False 38. False 39. True 40. True 41. True 42. True 43. True 44. True 45. True 46. True 47. True 48. True 49. False 50. True 51. a 52. a 53. d 54. c 55. a

56. a 57. d 58. c 59. a 60. d 61. c 62. b 63. d 64. d 65. a 66. b 67. c 68. c 69. a 70. c 71. d 72. d 73. b 74. a 75. d 76. b 77. a 78. c 79. d 80. b 81. c 82. b 83. c

84. c 85. b 86. c 87. b 88. d 89. a 90. c 91. b 92. c 93. b 94. a 95. b 96. d 97. d 98. d 99. d 100. a 101. Distress is a negative type of stress characterized by feelings of inadequacy, overwork, desperation, lack of control, fear, depression, and so forth. If left unchecked, distress may eventually result in fatigue, exhaustion, or burnout.

Example: John Jones has been working overtime on a major project for his boss. He learns that the due date for his project has been changed from next Friday to tomorrow. Because John has strong doubts that he will be able to complete his assignment on time, he feels his annual raise may be in jeopardy. John is likely experiencing distress at this time.

Eustress is a situation where an individual feels challenged and energized by the environment. Eustress is characterized by feelings of achievement, accomplishment, and/or exhilaration. Without a minimal level of eustress, life would likely be considered boring. Too much eustress, however, may develop into the more destructive distress. Example: Sue Smith just received a major promotion. While the new job will require a much longer workweek as well as a higher level of professional risk, Sue feels “charged up” to assume her new responsibilities.

102. To develop a policy on violence prevention, it would be wise to draw upon the Canadian Centre for Occupational Health and Safety prevention measures. These guidelines include holding managers responsible for commitment to and employee involvement in preventing acts of violence, analyzing the workplace to uncover areas of potential violence, preventing violence by designing safe workplaces and work practices, providing violence prevention training, and conducting evaluations of violence program effectiveness. Managers must effectively communicate a zero-tolerance policy for violence and encourage employees to report any possible or observed incidents. Finally, there is a need to ensure a meaningful reporting procedure with clear lines of responsibility is implemented to ensure that management is promptly notified of potential security risks in order to take immediate steps to resolve issues that may arise.

103. The fundamental duty of every employer is to take every reasonable precaution to ensure employee safety. In

addition to providing a hazard-free workplace and complying with the applicable statutes and regulations, employers must inform their employees about safety and health requirements. Employers are also required to keep certain records, compile an annual summary of work-related injuries and illnesses, and ensure that supervisors are familiar with the work and its associated hazards. Employers in all jurisdictions are required to report accidents that cause injuries and diseases to the Workers’ Compensation Board. Accidents resulting in death or critical injuries must be reported immediately; the accident must then be investigated and a written report submitted. Finally, employers must provide safety training and be prepared to discipline employees for failing to comply with safety rules.

Supervisors are required to advise employees of potential workplace hazards; ensure that workers use or wear safety equipment, devices, or clothing; provide written instructions where applicable; and take every reasonable precaution to guarantee the safety of workers.

Workers are required to comply with all applicable acts and regulations; report hazardous conditions or defective equipment; and follow all employer safety and health rules and regulations, including those prescribing the use of protective equipment.

104. In recognizing the need for reducing stress, employers can develop stress management programs that assist employees in acquiring techniques for coping with stress. In addition, organizations need to take action to redesign and enrich jobs, to clarify the employee’s work role, to correct physical factors in the environment, and other actions to reduce stress on the job.

Helpful tips for reducing stress include: ∙ Build rewarding relationships with coworkers. ∙ Prepare for changes in job demands by keeping up-to-date on new information. ∙ Do not exceed your skill level. ∙ Set realistic goals and deadlines. ∙ Do not put off work, problems, or concerns. ∙ Reduce or eliminate interruptions. ∙ Take breaks and practise relaxation techniques.

Indicate whether the statement is true or false.

1. Organizations are required by law to comply with ethical guidelines. a. True b. False 2. Because personnel files are the employer’s property, an employee may be barred from seeing his or her file. a. True b. False 3. Employees do not have the right to have an attorney present during an investigative interview. a. True b. False 4. Mediation is a formal process resulting in compromise. a. True b. False 5. Employees have statutory rights that are derived from contracts. a. True b. False 6. It is not necessary that the employee be given an opportunity to explain his or her side of the issue during the

investigative interview. a. True b. False 7. An example of a statutory right is an employee right to a safe workplace. a. True b. False 8. It is standard practice for employers and contingent employees to utilize formal employment contracts. a. True b. False 9. Progressive discipline is designed to force an employee to improve his or her performance. a. True b. False 10. HR departments strive to ensure ethical treatment of employees by communicating the organization’s values and communicating and enforcing standards throughout the organization. a. True b. False 11. A major responsibility of the HR department is to develop, and to have top management approve, its disciplinary policies and procedures. a. True b. False 12. Canadians’ privacy with respect to personal information is protected by federal legislation that came into effect January 1, 2001. a. True b. False 13. One of the major reasons for investigative interviews is to establish the facts surrounding an employee’s offence. a. True b. False 14. Alternative dispute resolution (ADR) is a relatively recent development utilized in non-union workplaces. a. True b. False 15. Managers have virtually unlimited discretion in taking disciplinary action against an employee. a. True b. False 16. A peer-review system, also called a “complaint committee,” is composed only of people whose jobs are similar to the person appearing before the board. a. True b. False 17. Management’s failure to communicate rules to employees is one of the major reasons for reversing disciplinary action. a. True

b. False 18. In law, negligence is the failure to honour established contracts. a. True b. False 19. Documentation of employee misconduct includes stating the improvement expected by the employer. a. True b. False 20. Employees are correct in assuming that their rights to privacy extend to email and voice mail messages. a. True b. False 21. Employees are rarely successful when they attempt to sue employees for wrongful dismissal. a. True b. False 22. An ombudsperson helps management by providing a check on itself. a. True b. False 23. Constructive dismissal occurs when an employer unilaterally changes an employee’s working conditions such that compensation, status, or prestige is reduced. a. True b. False 24. Peer-review boards consist only of people whose jobs are similar to that of the person appearing before the board. a. True b. False 25. Decision-making leave is typically paid leave, and eliminates the negative effects of loss of pay. a. True b. False 26. The employment-at-will doctrine states that either the employee or the employer may terminate the employment relationship for any reason. a. True b. False 27. Employee rights issues frequently involve an employer’s alleged invasion of an employee’s right to privacy. a. True b. False 28. With an open-door policy, decisions tend to be consistent across managers. a. True b. False 29. Positive discipline is different from progressive discipline in that it is based on a “problem-solving” approach to discipline.

a. True b. False 30. Bill has been found guilty of theft, a termination offence. Before he is dismissed, his manager must apply all the steps of progressive discipline. a. True b. False 31. When applying either progressive or positive discipline, it is important to maintain complete records of each step of the procedure. a. True b. False 32. The Juniper Corporation wishes to establish an alternative dispute-resolution procedure that will provide a sense of justice for employees. A peer-review board would offer this benefit. a. True b. False 33. Implied contract terms are terms that judges read into employment contracts when the written contract does not expressly deal with the matter. a. True b. False 34. The correct sequence of progressive discipline is as follows: (1) written warning, (2) oral warning, (3) suspension, and (4) discharge. a. True b. False 35. In an organizational setting, discipline should be viewed as an educational process rather than a punishment. a. True b. False 36. The step between a verbal warning and termination in progressive discipline is the disciplinary interview. a. True b. False 37. The HR department is responsible for developing disciplinary policies and procedures. a. True b. False 38. Dismissal is the final disciplinary action. a. True b. False 39. An ombudsperson solves problems through negotiation and mediation activities between supervisors and subordinates. a. True b. False 40. The primary responsibility for preventing or correcting disciplinary problems rests with the HR department. a. True

b. False 41. Ethics can be defined as a set of standards of acceptable conduct and moral judgment. a. True b. False 42. During her interview, Angela is told by her future manager that if she is a good worker she will have a permanent job with the company. Her manager has likely created an implied contract with Angela. a. True b. False 43. An employee’s legal and moral rights to privacy are clear and well-defined. a. True b. False 44. The failure to document earlier actions often results in management not imposing disciplinary penalty when a transgression is committed. a. True b. False 45. Whatever the reason for dismissal, it should be done with primary concern for the organization. a. True b. False 46. Employee rights are granted to workers by the courts, legislatures, and/or employers. a. True b. False 47. Positive discipline is based on a mutual problem-solving approach, but resolutions are still mandated by the HR department. a. True b. False 48. Step-review systems involving non-union employees are very similar to grievance procedures used in union contracts. a. True b. False 49. In order to be effective, employee discipline must take place as soon as possible after the problem is verified. a. True b. False 50. Wrongful dismissal is a lawsuit filed in a court by an employee alleging that he or she was dismissed without proper contractual or reasonable notice. a. True b. False 51. Positive discipline relies on encouragement given to employees as a way to improve performance. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

52. What is another term used to describe a body of decisions from court cases that has developed over time? a. common law b. court law c. judicial law d. statutory law 53. After an investigation by the relevant bodies, it was found that Darren, who works in a unionized organization, was dismissed without just cause. Who can order reinstatement after an investigation? a. an arbitrator b. a mediator c. a conciliator d. Darren’s lawyer 54. What is the key purpose of the investigative interview with an employee in a disciplinary case against him or her? a. to train HR managers with their investigative skills b. to give the employee an opportunity to explain his or her actions and behaviours in the case c. to ensure that there is a recording of the interview for the courts if the employer is challenged d. to get the police involved early in the case 55. Tammy Faye, a university student, is doing research on cases decided by the Supreme Court on employee dismissals for theft. Which of the following regimes of employment law is Tammy researching? a. criminal law b. civil law c. statutory regulation d. common law 56. What is a key objective for employers in using a peer-review process in disciplinary cases with employees? a. to avoid costs incurred in court cases b. to help train HR managers for tribunal hearings c. to get evidence for the courts in the event that dismissals are challenged by employees d. to give employees a sense of justice 57. In a disciplinary case against Mandy, her employer has set up a committee to hear the case. The committee includes two of Mandy’s coworkers and two management personnel. What type of disciplinary process is most likely being used here? a. a peer-review system b. a positive discipline system c. an expedited review system d. a grievance procedure 58. Using a positive discipline approach, which of the following is the best reason for giving an employee a paid decisionmaking leave? a. It gives an employee time to consider a new job offer. b. It is often used to allow an organization to start the process of finding a replacement employee. c. It is mandatory because of the law. d. It gives an employee time to consider whether he or she wishes to remain with the organization

Scenario 13.1 The Beer Pitt Inc. is a Canadian brewery that distributes premium lager beers across the country. Over the years, the company has been having problems with employees drinking on the job, resulting in arguments, fights, and back-ups on the production line. Because employees are unionized, it has always been difficult to determine that drinking on the job is the cause of the problems the company is experiencing since these problems have been occurring for decades. Recently, however, an employee was injured. The HR department wants to develop and implement new sets of disciplinary policies and procedures to help curb these problems.

59. Refer to Scenario 13.1. Which of the following accurately represents some of the steps in the disciplinary model that the Beer Pitt needs to implement? a. violation of rules, collective agreements, investigation, documenting the results b. violation of rules, investigation of offences, disciplinary interviews, progressive discipline c. intoxication, insubordination, gambling at work, smoking in authorized places d. due process, burden of proof, ensuring compliance 60. Claire is concerned that her performance evaluations were incorrectly entered into her personnel file. Which of the following pieces of legislation provides for Claire to ask her employer to see her personnel file? a. the Performance Evaluation Protection Act b. the Right to Protect Privacy Act c. the Personal Information Protection and Electronic Documents Act (PIPEDA) d. the Freedom of Information Act 61. British Columbia Gold Inc. is planning to implement an open-door policy to deal with employee complaints. Which of the following is a key criterion for this policy to be successful? a. Managers must ensure that employees come to them only with job-related concerns. b. Managers must encourage employees to voice their complaints and listen honestly to those concerns. c. Managers must formalize the procedure and encourage employees to “start at the top.” d. Managers must emphasize that they can offer solutions only on an advisory basis.

62. Which of the following is a major weakness of an open-door policy of settling grievances in the workplace? a. Managers tend to be too busy to use this policy. b. The courts have ruled that open-door policies are legally questionable. c. It is generally too expensive for organizations to use. d. Workers are reluctant to approach managers with their complaints.

63. ABC Inc. has a disciplinary system whereby its programs are designed to motivate an employee to correct his or her misconduct voluntarily. What type of disciplinary program is ABC Inc. most likely using? a. a self-help program b. a progressive discipline program c. a hot-stove program d. a positive discipline program 64. To keep organizational rules effective, employers should do all of the following EXCEPT which one? a. ensure that employees understand the reasons for the rules b. restate any rules that have not been enforced on a consistent basis

c. remove any rules that do not involve the safe and efficient operation of the organization d. make certain that all rules are communicated orally to all employees 65. In British Columbia, members of the provincial parliament (MPPs) voted to implement new anti-bullying rules for workplaces. What type of employment law does this represent? a. ethical law b. statutory legislation c. anti-discrimination law d. common law Scenario 13.2 Woodbridge Group Inc. (WG), a Canadian consultancy firm, is having a hard time keeping all its employees as a result of the last recession. Most of its clients are based in the United States, and tighter restrictions there have led to some clients severing business ties with WG. With the loss of business, the company claims it cannot afford to continue paying employees even though the company is still profitable. Management is planning to let some of them go, and plans to give them four weeks’ pay in lieu of notice. While these employees are not unionized, they do have contracts that entitle them to fixed numbers of weeks worked for each year they have been with WG. 66. Refer to Scenario 13.2. WG wants to avoid being sued for wrongful dismissal as it may cost the company more than what is stipulated in the contract. Which of the following is NOT accurate? a. Nonmanagerial employees may be entitled to up to 12 months’ notice. b. Managerial employees may be entitled to as much as 24 months’ notice. c. An employer needs just cause to terminate a nonunionized employee. d. Legal and court fees can be very costly and potentially embarrassing.

67. Based on the research evidence on summary dismissal cases, in which of the following scenarios does the employer stand the least chance of winning in the courts? a. An accountant is dismissed because of theft from the workplace. b. A clerk is dismissed because of insubordination. c. A manager is dismissed because he was found doing work for a competitor. d. A secretary is dismissed because of poor typing skills.

68. Which of the following processes involves the use of a third party to settle disputes and where the parties voluntarily try to settle the issue? a. mediation b. arbitration c. court orders d. strikes 69. The HR manager at Stacco Ltd. is planning to fire Paul for poor job performance. He is aware that he has to give “reasonable notice” to Paul. What are two factors that he has to consider when determining the amount of notice? a. Paul’s salary and the amount of leave previously taken b. Paul’s length of service and the nature of his work c. Paul’s education and position in the firm d. Paul’s education and length of service 70. Where should termination meetings with employees be held? a. at the employee’s workstation

b. in a neutral location, such as a conference room c. outside the employer’s premises d. in the HR manager’s office 71. The University of Lalaland has decided to move to a new system in dealing with employee complaints. It has hired a retired judge whose job is to listen to employees’ complaints and then try to seek solutions through negotiation and mediation. What is the most likely title of this person’s job? a. complaint officer b. hearing judge c. arbitrator d. ombudsperson 72. The human resource manager has invited Tammy for a meeting to discuss reports of her misconduct. The two parties will have joint discussion and problem-solving activities to address and overcome any proven misconduct. What type of disciplinary program is evident here? a. an open-door discipline program b. a nondirective discipline program c. a positive discipline program d. a progressive discipline program 73. What is a key difference between a step-review process of dealing with employee complaints in nonunionized workplaces versus a grievance procedure in a collective bargaining agreement? a. A step-review process allows for better outcomes for both sides. b. Step-reviews do not provide for a neutral third party as a judge of last resort. c. A grievance procedure generally allows for a legal strike by employees. d. Step-reviews lead to less workplace conflict.

74. Johnny Damon, the human resource manager at Damon Electric Utility, wants to reduce the pay for one of his employees. The pay is included in the employee’s employment contract. How can Mr. Damon legally change the employee’s pay? a. get the employee to agree to the change and provide a new benefit b. adjust the pay unilaterally, as Mr. Damon is the human resource manager c. get a lawyer to make the change d. get top management to make the change 75. John was dismissed by his organization after he was caught on live TV cameras making racist and sexist comments after a soccer game. If he challenges his dismissal in courts, what would the employer have to prove, among other things, to successfully argue its case? a. that John usually does the same at work b. that John caused damage to the reputation of the organization c. that John is not a good employee d. that John was not given permission to attend the game 76. In a unionized organization, it is generally expected that employers will follow the procedures laid out in which of the following before they dismiss an employee? a. challenges through the courts b. government investigations

c. the grievance process d. job evaluations 77. The courts have ruled that employers can monitor the computer use and Internet access of employees when they are at work. What is a key reason the courts give for this? a. Employers need to protect themselves against lawsuits. b. It is integral to the implied employment contract. c. Organizations need this right so as to compete globally. d. The employer owns the computer.

78. Mary has been given a reminder to self-evaluate her actions in a recent disciplinary case against her. What type of disciplinary procedure is the most likely being used here? a. progressive discipline b. positive discipline c. step-review discipline d. cooperative discipline Scenario 13.2 Woodbridge Group Inc. (WG), a Canadian consultancy firm, is having a hard time keeping all its employees as a result of the last recession. Most of its clients are based in the United States, and tighter restrictions there have led to some clients severing business ties with WG. With the loss of business, the company claims it cannot afford to continue paying employees even though the company is still profitable. Management is planning to let some of them go, and plans to give them four weeks’ pay in lieu of notice. While these employees are not unionized, they do have contracts that entitle them to fixed numbers of weeks worked for each year they have been with WG. 79. Refer to Scenario 13.2. If WG terminates the contracts as planned and employees sue for wrongful dismissal, which of the following does NOT play a role in the judge’s decision to award reasonable notice? a. the employee’s age and availability of similar employment given the employee’s experience and training b. the employer’s ability to pay c. the nature of the job performed by the employee d. the length of service with the employer 80. ABC Corporation induced engineers to leave their old jobs through the promise of better benefits. However, when the engineers started to work for ABC, the company denied making any promises to them. Through its behaviour, what has ABC likely violated? a. implied contract rules b. Its code of conduct c. the job-as-right concept d. implied covenant rules 81. What is a common reason why dismissed employees tend to accept minimum statutory rights for notice of termination rather than better outcomes sometimes provided through implied contractual rights? a. because employees get access to their accrued benefits b. because it can be expensive and time consuming to challenge the employer c. because employees often lose these cases in courts d. because it is the law Scenario 13.1

The Beer Pitt Inc. is a Canadian brewery that distributes premium lager beers across the country. Over the years, the company has been having problems with employees drinking on the job, resulting in arguments, fights, and back-ups on the production line. Because employees are unionized, it has always been difficult to determine that drinking on the job is the cause of the problems the company is experiencing since these problems have been occurring for decades. Recently, however, an employee was injured. The HR department wants to develop and implement new sets of disciplinary policies and procedures to help curb these problems.

82. Refer to Scenario 13.1. The Beer Pitt must document all misconduct. Which of the following is NOT true about the completeness of the information? a. names of witnesses to the incident are not needed b. behaviour exhibited by employees need not be included c. consequences for action or behaviour are not important d. date, time, and location of the incident are not important 83. Which of the following best describes an open-door policy? a. It identifies various levels of management above an employee’s immediate supervisor that an aggrieved employee may contact. b. It is based on a pre-established set of steps for the review of an employee complaint to successively higher levels of management. c. It is a requirement of the alternative dispute resolution process. d. It is the best resolution to any employee complaint by the HR department.

84. According to a study cited in the textbook, what is the most important driver of employee trust and loyalty? a. the organization’s disciplinary system b. employees’ benefits c. employees’ perceptions of ethical behaviour by leaders d. the strategy of the organization Scenario 13.2 Woodbridge Group Inc. (WG), a Canadian consultancy firm, is having a hard time keeping all its employees as a result of the last recession. Most of its clients are based in the United States, and tighter restrictions there have led to some clients severing business ties with WG. With the loss of business, the company claims it cannot afford to continue paying employees even though the company is still profitable. Management is planning to let some of them go, and plans to give them four weeks’ pay in lieu of notice. While these employees are not unionized, they do have contracts that entitle them to fixed numbers of weeks worked for each year they have been with WG. 85. Refer to Scenario 13.2. Either the employer or the employee can terminate the employment contract. What does WG need to do to avoid expensive lawsuits for wrongful dismissal? a. pay employees what the company can afford b. pay only the amount stipulated by employment standards legislation c. allow the court to decide what is reasonable notice d. provide employees with the amount of notice specified in the contract 86. Assume that the governing political party does not like how some employers have been taking advantage of a loophole in the law to pay women discriminatory wages and it wants this situation corrected. What should the government do? a. introduce a motion in the legislature to amend the legislation b. ask women to challenge their employers in court c. call the judges and instruct them to change their decisions

d. appeal to the cases to the International Labour Office 87. In regard to the documentation in employee disciplinary cases, what is the most significant cause of inadequate documentation? a. The courts have ruled that documentation be limited. b. Organizations do not want to spend too much money for documentation. c. Managers do not have enough time to do the documentation. d. Managers have problems understanding what’s good documentation.

88. Which of the following is an example of an employee’s statutory right? a. a collective bargaining agreement b. the implied contract c. the right to due notice d. employment standards legislation 89. Bob Parker’s employer has moved him to a job that is three to four levels below his previous position; it also pays much less. He has been advised by his lawyer that he can challenge this decision in the courts. What do you think Bob will claim happened to him? a. lack of due process b. constructive dismissal c. termination d. wrongful dismissal 90. Which of the following processes involves the use of a third party to settle disputes and where the parties are bound by the decision? a. mediation b. arbitration c. conciliation d. strikes 91. What type of work environment is essential for positive discipline to be successfully conducted? a. confrontational work environment b. adjudicative work environment c. cooperative work environment d. judicial work environment 92. Under the employment-at-will concept, who can terminate the employment relationship? a. employees, unions, or employers b. employers or the government c. employees or employers d. employees or the government 93. What is the term for discipline programs designed to motivate an employee to correct his or her misconduct by taking responsibility for his or her actions? a. hot-stove programs b. progressive discipline c. respect-discipline programs d. positive discipline

94. In a typical progressive discipline program, what step immediately precedes the termination of the employee? a. suspension b. formal discussions c. a “pre-warning” d. a written warning 95. Which of the following conditions must be met for an employer to summarily dismiss an employee in a non-union environment for off-duty conduct? a. The employer would have to prove that its interests are adversely affected by the conduct. b. The employee must be employed on a full-time basis. c. The employer must have a good human resource management department in place. d. The employee cannot be from a minority group, as this would be discrimination.

Scenario 13.1 The Beer Pitt Inc. is a Canadian brewery that distributes premium lager beers across the country. Over the years, the company has been having problems with employees drinking on the job, resulting in arguments, fights, and back-ups on the production line. Because employees are unionized, it has always been difficult to determine that drinking on the job is the cause of the problems the company is experiencing since these problems have been occurring for decades. Recently, however, an employee was injured. The HR department wants to develop and implement new sets of disciplinary policies and procedures to help curb these problems.

96. Refer to Scenario 13.1. Assume that the Beer Pitt might be better off using positive discipline given that the company has allowed employees to behave this way for decades. Which of the following is NOT a focus of this approach? a. employees take total responsibility for resolving the problems b. nothing is imposed by management c. all solutions and affirmations are made by management d. nonpunitive discipline replaces threats and punishment with encouragement 97. In a nonunion workplace, which of the following complaint processes is most similar to a grievance procedure in a collective agreement? a. step-review system b. open-door management system c. at-will complaint process d. peer-review system 98. Which of the following is a key characteristic of an implied employment contract? a. It is valid only if in writing. b. It contains terms that judges read into employment contracts when the written contract does not expressly deal with the matter. c. It exists after an employee passes his or her probation period. d. It covers approximately 90 percent of the Canadian workforce.

99. In which of the following scenarios can an employer summarily dismiss an employee in a non-union environment for his or her activities outside of the workplace? a. The employee talks to fellow workers about the possible benefits of a union in the workplace. b. The employee has a fight with someone at a bar. c. The employee discloses confidential information on a personal blog.

d. The employee attends a press conference hosted by the union.

100. Which of the following best describes alternative dispute resolution mechanisms? a. They are used only in unionized organizations. b. They will likely replace the need for grievance procedures. c. They are used in nonunion organizations. d. They are forms of progressive discipline.

101. The step-review procedure in non-unionized organizations is similar to which of the following disciplinary approaches? a. collective bargaining b. hot-stove discipline c. positive discipline d. progressive discipline

102. What are some of the pros and cons of “open-door” policies?

103. What is progressive discipline? How does it differ from positive discipline?

104. Susan is a fast-track employee slotted for a vice-president position. Her next job assignment is a foreign position in a South American country as director of your manufacturing division. Unfortunately, this position requires supervising foreign male managers who are largely opposed to supervision by females. To not send Susan on this assignment would “short-step” her promotion to vice-president, and possibly be viewed as discriminatory. How would you handle this ethical situation? Be specific.

Answer Key 1. False 2. False 3. True 4. False 5. False 6. False 7. True 8. True 9. False 10. True 11. True 12. True 13. True 14. True 15. False 16. False 17. True 18. False 19. True 20. False 21. False 22. True 23. True 24. False 25. True 26. True 27. True

28. False 29. True 30. False 31. True 32. True 33. True 34. False 35. True 36. False 37. True 38. True 39. True 40. False 41. True 42. True 43. False 44. True 45. False 46. True 47. False 48. True 49. True 50. True 51. True 52. a 53. a 54. b 55. d

56. d 57. a 58. d 59. b 60. c 61. b 62. d 63. d 64. d 65. b 66. c 67. d 68. a 69. b 70. b 71. d 72. c 73. b 74. a 75. b 76. c 77. d 78. b 79. b 80. a 81. b 82. a 83. a

84. c 85. d 86. a 87. d 88. d 89. b 90. b 91. c 92. c 93. d 94. a 95. a 96. c 97. a 98. b 99. c 100. c 101. d 102. On the positive side, open-door policies provide an avenue for employees to voice complaints about their work.

Open-door policies are especially useful when the subject of the complaint is an employee’s immediate supervisor.

Moreover, complaints made through an open-door program can provide valuable information to upper-level management.

While open-door policies can work quite well, problems are not unusual under these programs. First, there may be large differences in managers’ commitment to the policy. This situation creates doubt in the minds of employees. Second, some employees may be reluctant to raise a complaint under this system. If an employee has concerns about the supervisors “hanging together” against complainants, it is unlikely that he or she will issue a complaint. Furthermore, there may be inconsistencies between managers in terms of their decisions. Perceptions of inequity and unfairness will prevent employees from using the open-door system effectively. Finally, there are concerns that some managers do not listen honestly to employees who raise complaints through this system.

103. Progressive discipline is the application of corrective measures by increasing degrees. The intent is to stop the undesired behaviour using the minimum amount of corrective action necessary. In practice, progressive discipline starts as a low-key, informal reminder and moves through several levels of more intensive measures until the behaviour is extinguished. If the behaviour cannot or will not be altered, the progression ends at terminating the employee. In short, using progressive discipline allows the employer several opportunities to correct undesired employee behaviour before terminating the employment relationship.

Positive discipline is similar to progressive discipline in that both methods involve a multistep approach to employee

discipline that favours early correction of problem behaviours. However, positive discipline differs in several ways. First, under positive discipline, the employee has primary responsibility for resolving his or her behavioural problem. Second, positive discipline involves a spirit of cooperation and problem solving rather than confrontation. Instead of being strictly punitive, supervisors are expected to encourage and work with employees with performance problems. In sum, the positive discipline relationship seems more like parental guidance than the adversarial relationship inherent in the progressive model.

104. To treat Susan in a fair and equitable manner, a sound decision would be to send Susan to the next job assignment in South America. There are two primary issues involved in this decision. First, it is critical that managers comply with government regulations to promote an environment free from discrimination. If a manager does not send Susan on the foreign assignment, he or she could face the possibility of being accused of gender discrimination. As a consequence, her manager must provide Susan with the same opportunities that would be provided to a male in her position.

Second, beyond what is required by the law is the question of organizational ethics. Ethics are defined as the set of standards of acceptable conduct and moral judgment that provide cultural guidelines that help decide between proper and improper behaviour. In this situation, the ethical decision is not an easy one to make because there are multiple cultures, countries, and ethical standards involved. However, one possible solution to handling this situation would be to refer to the organization’s code of ethics. Many organizations have their own code of ethics that governs relations with employees that may prove useful. Even if a code of ethics does not exist, from an ethical perspective, it is important that Susan’s personal and work-related rights are respected and valued.

Indicate whether the statement is true or false.

1. The first step in the labour relations process is a union organizing campaign. a. True b. False 2. Management rights are those decisions over which management claims exclusive rights. a. True b. False 3. Public employees unionize for very different reasons than their private-sector counterparts. a. True b. False 4. A bargaining book is a case history used by an arbitrator to decide a grievance. a. True b. False 5. Employees are most likely to seek unionization if they believe that doing so will achieve results they cannot achieve acting individually. a. True b. False 6. If employers interfere with the union certification process, the labour relations board can recognize a union regardless of the percentage of employees that have signed authorization cards. a. True b. False 7. A strike vote by union members does not always mean a strike will take place. a. True b. False

8. It is possible for a union to be decertified if the majority of bargaining unit members decide they would rather be represented by another union. a. True b. False 9. Arbitration hearings are formal court proceedings, held in a court of law. a. True b. False 10. Labour relations boards are responsible for administering labour law. a. True b. False 11. Mediation is the only form of third-party resolution that results in binding recommendations. a. True b. False 12. Grievance handling is more successful when supervisors are trained formally in resolving grievances. a. True b. False 13. More than 70 percent of all public employees are unionized. a. True b. False 14. If an employee personally decides that the benefits will outweigh the costs of joining the union, then she or he is likely to join. a. True b. False 15. Both employers and unions can be accused of an unfair labour practice. a. True b. False 16. Canadian employers tend to be supportive of union organizing drives. a. True b. False 17. During collective bargaining, each side normally places only their primary negotiator at the table. a. True b. False 18. Unions that represent various groups of professional and white-collar workers are called industrial unions. a. True b. False 19. Good faith bargaining requires that employers and union counterparts be willing to meet at any time and reasonable place to discuss proposals. a. True

b. False 20. The Canada Industrial Relations Board administers and enforces the Canada Labour Code. a. True b. False 21. The largest union in Canada is the Canadian Union of Public Employees (CUPE). a. True b. False 22. Unionization restricts the freedom of management to formulate HR policy unilaterally. a. True b. False 23. Compulsory membership provisions and dues checkoff are forms of union security. a. True b. False 24. Unionization may restrict the freedom of management in many areas. a. True b. False 25. Most labour relations activity comes from the day-to-day administration of the collective agreement. a. True b. False 26. If a manager or supervisor violates a labour law, an appropriate defence is that he or she was not familiar with labour legislation. a. True b. False 27. Bargaining power consists of economic, political, and social influence to achieve demands. a. True b. False 28. Public-sector unions contend that denying their legal right to strike reduces their power during collective bargaining. a. True b. False 29. In Canada, a majority of unions are certified without a vote if the labour relations board finds that at least 50 percent of employees have signed authorization cards. a. True b. False 30. A grievance procedure is a formal process that is often considered the heart of a bargaining agreement. a. True b. False 31. A union will not usually take a weak case to arbitration for fear of losing member support. a. True

b. False 32. The minimum term of the first collective agreement after certification is three years. a. True b. False 33. Joining a union is a way for employees to put leadership skills to use. a. True b. False 34. It is the arbitrator’s responsibility to ensure that each side receives a fair hearing. a. True b. False 35. As a manager of XYZ Company, you would most likely expect an organizing drive to be started by your employees rather than a union organizer. a. True b. False 36. Employers are obligated to negotiate in good faith with the union. a. True b. False 37. Labour organizations are diverse in type and in structure; therefore, each may have its own mode of governance and objectives. a. True b. False 38. National unions retain most of the decision-making authority over local unions. a. True b. False 39. Compulsory binding arbitration is often available in the public sector as an acceptable way to settle collective bargaining deadlocks. a. True b. False 40. An employer’s bargaining power may rest on its ability to continue its operations despite a strike by its workers. a. True b. False 41. The first step in organizing begins when employees and union officials meet to explore the possibility of unionization. a. True b. False 42. Interest-based bargaining usually leads to suspicion and compromise. a. True b. False 43. A boycott is a refusal to cross a union picket line.

a. True b. False 44. The collective bargaining process may include activities such as strikes and boycotts. a. True b. False 45. Union stewards are full-time employees at the workplace and generally are not paid by the union. a. True b. False 46. Agency shops provide for voluntary union membership, but require all bargaining unit members to pay union dues and fees. a. True b. False 47. An arbitration award should include not just a decision, but the rationale for it, in order to provide guidance for future interpretation. a. True b. False 48. Pickets may further disrupt an employer’s business because one union member, such as a truck driver, may refuse to cross the other’s picket line. a. True b. False 49. Unions influence labour legislation and HR policies and practices. a. True b. False 50. As long as employers do not object to unionization, they can influence employees to vote for one union rather than another. a. True b. False 51. Employees might consider organizing and joining a union an effective alternative to quitting a job in which they feel they are being treated unfairly. a. True b. False 52. Unions that represent skilled craft workers are called craft unions. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

Scenario 14.2 Calendar “R” Us Ltd. produces calendars for middle and high schools in Ontario. Calendar started back in 2006 and today has over 60 employees. About two years ago, the employees organized and obtained union certification. To date, the union has not successfully negotiated a collective agreement. Employees are not happy with the progress the union has made, and much of the concerns they have had (wages, benefits, training, etc.) have not been addressed. Calendar “R” Us

employees feel that the union is more interested in serving the needs of the company and are looking to find a replacement.

53. Refer to Scenario 14.2. Calendar “R” Us employees want to change their union. Before they can decertify, all of the following must be in place EXCEPT which one? a. determine whether bargaining was done in good faith b. determine whether the union has failed to bargain c. determine whether employees want to be represented by another union d. decision by the majority of bargaining unit members that they do not want to be represented by the union 54. Lee Chen works is an employee of the national union. He is involved with negotiating the collective bargaining agreement with the employer for Local 1240. What is Mr. Lee’s most likely job title or role? a. a business agent b. a union agent c. a mediator d. a union steward 55. Which of the following administers the Canada Labour Code? a. the Supreme Court b. the Federal Human Rights Commission c. Canada Industrial Relations Board d. the federal government 56. What is interest-based bargaining based upon? a. the area within which union and management are willing to concede b. a give-and-take philosophy c. adversarial bargaining d. the identification and resolution of mutual interests 57. Unions try to ensure that unionized employees get similar wages and benefits across unionized organizations. What is the effect of this strategy? a. Pay equality is ensured for all male and female jobs. b. Higher wages are removed as a source of competitive advantage. c. Pay bands are increased. d. Turnover increases.

58. In which of the following situations is grievance handling most successful? a. when union stewards are selected by management b. when supervisors are formally trained in the terms of the labour agreement and counselling skills c. in paternalistic management systems d. in nonunionized businesses 59. What is the overarching reason why employees unionize? a. to change governments b. to advance social agendas c. to achieve work outcomes that they cannot achieve individually d. to advance their political views

60. Developing likely union proposals, lists of demands, and a contingency plan for operating in the event of a strike are part of which of the following? a. compulsory binding arbitration b. an employer’s bargaining strategy c. a union’s bargaining strategy d. good faith bargaining 61. How can the bargaining power of an employer be exercised during collective bargaining? a. through lockout of employees b. through organizing a strike vote c. through raising wages d. through legal injunction 62. What is a key benefit of the grievance procedure in unionized organizations? a. It allows for the settlement of a dispute without strikes and lockouts. b. It reduces turnover. c. It is usually completed within one or two weeks. d. It is usually used by management to settle issues related to the management rights clause.

63. In Ontario, what is the minimum percentage of signed authorization cards before the union can apply for a certification election? a. 30 percent b. 40 percent c. 50 percent d. 50 percent plus one 64. Which of the following is NOT a strategy a union can use to increase its bargaining power? a. picketing exercises b. a strike c. a boycott of products produced by the firm d. a lockout 65. ABC Corporation and the union are locked in a dispute that they cannot resolve by themselves. Ms. Reza Shah, a third party, has been asked to help them with a binding decision. She has informed them that the final settlement will be one that either ABC Corporation or the union offers. What is this settlement an example of? a. binding conciliation b. compulsory binding arbitration c. final offer arbitration d. compulsory conciliation Scenario 14.1 Boat Xpress, a Canadian shipping firm, has been treating employees unfairly for decades. Employees work full-time hours but are hired as part-timers with no benefits other than 4 percent vacation pay. Health and safety standards are nonexistent, and the list goes on. Employees have tried to organize before, but management fired them and threatened the remaining workers. A new employee decided that the working conditions are intolerable and wants to get other employees organized in order to obtain union representation. All employees now believe that their interests will be better served with collective agreements.

66. Refer to Scenario 14.1. Management does not have the right to fire employees for organizing. The right of workers to join unions was established back in 1948 by which of the following? a. the Industrial Relations Disputes and Investigation Act b. Ontario Labour Relations Act c. Canada Labour Code d. Labour Relations Board 67. The factors that arbitrators use when deciding cases are the wording of the labour agreement, the submission agreement, the testimony and evidence offered, and which of the following? a. the truthfulness of witnesses b. the preferences of the grievant c. arbitration criteria or standards d. the concept of reasonable doubt 68. ABC Inc. has exclusive rights, as reflected in the collective agreement, to hire senior staff. What is the term used for such exclusive rights? a. management rights b. human rights c. management power d. collective bargaining rights 69. Yorkville Tire Manufacturing Company has been experiencing really bad management–employee relations for almost two years. Jack Pratt, one of the leaders among the employees, wants to help in unionizing the employees. He has met with most of the employees. What should he do next? a. ask the workers to go on strike to put pressure on the company b. form an in-house organizing committee c. appeal to a broader community—including academics and international agencies—to put pressure on the employer d. ask the labour relations board to intervene 70. Within a bargaining unit, how many workers must vote against the union so as to decertify it? a. 40 percent, plus one b. 41 percent c. 50 percent, plus one d. 51 percent 71. What type of bargaining is characterized by a “give-and-take” philosophy, where one side receives the “short end of the stick”? a. interest-based bargaining b. adversarial bargaining c. results-oriented bargaining d. cooperative bargaining 72. A union was recently certified at ABC Corporation after 55 percent of the employees signed authorization cards for the union to represent them. There was no vote. What is this system called when unions are certified in this manner? a. union shop b. card-check c. authorization system d. mandatory unionization

73. Why might pickets prevent trucks and railcars from entering a struck business? a. because picketing during a strike carries a legal obligation on the part of the employer to cease operations, including delivery of goods and materials b. because unions often refuse to cross another union’s picket line c. because the union has a legal right to obstruct the business of the employer the union is striking against d. because operators of trucks and railcars must get permission from the picketing union to enter the premises 74. Unions tend to hold strike votes to assess whether members are willing to go on strike for their demands. What does a high vote in favour of a strike (e.g., 95 percent) mean? a. Management will most likely have to lock out the union. b. The union will definitely go on strike because it has an overwhelming mandate to do so. c. Management will lose in the bargaining. d. The union will have strengthened its bargaining power.

75. Which of the following labour organizations is most likely to provide professional and financial assistance during organizing drives and strikes, help negotiate labour agreements, and train union leaders? a. a local union b. the Department of Labour c. Human Resources and Skills Development Canada d. the Canadian Labour Congress (CLC) 76. Jason Thomas recently joined ABC Inc. to work on the shipping wharf as a loader. He has been told that he must join the union as a condition of employment. What is this employment provision called? a. a union shop b. a bully provision c. an agency shop d. an unfair labour practice 77. What do we call a neutral third party who resolves labour disputes by issuing a final decision that the parties must accept? a. an arbitrator b. a conciliator c. a mediator d. a chief executive officer 78. Sasha Hernandez works for the federal government in the immigration department. Her office is located in Vancouver.

Which piece of labour legislation applies to her workplace? a. the Canada Labour Code b. the City of Vancouver Labour Code c. the British Columbia Labour Relations Act d. the British Columbia Labour Relations Code Scenario 14.1 Boat Xpress, a Canadian shipping firm, has been treating employees unfairly for decades. Employees work full-time hours but are hired as part-timers with no benefits other than 4 percent vacation pay. Health and safety standards are nonexistent, and the list goes on. Employees have tried to organize before, but management fired them and threatened the remaining workers. A new employee decided that the working conditions are intolerable and wants to get other employees organized in order to obtain union representation. All employees now believe that their interests will be better served with collective

agreements.

79. Refer to Scenario 14.1. Employees are very concerned about the repercussions of the company finding out that they are seeking union representation. Which of the following can Boat Xpress legally do? a. attend union meetings and spy on employees b. threaten or terminate employees because of their union affiliation or beliefs c. change the working conditions of employees because they actively work for the union d. voluntarily recognize and accept a union 80. In the United States, the key central federation of unions is called the AFL-CIO. In Canada, what is the name of the organization that does similar work? a. the Canadian Auto Workers Union b. the Canadian Labour Congress c. the Labour Organization d. the Trades Union Congress 81. Which of the following groups do labour boards generally have representatives from? a. third-party representatives and managers b. academia and management c. academia and public servants d. labour and management 82. Approximately what percentage of Canadian public employees are unionized? a. 25 percent b. 50 percent c. 70 percent d. 90 percent Scenario 14.1 Boat Xpress, a Canadian shipping firm, has been treating employees unfairly for decades. Employees work full-time hours but are hired as part-timers with no benefits other than 4 percent vacation pay. Health and safety standards are nonexistent, and the list goes on. Employees have tried to organize before, but management fired them and threatened the remaining workers. A new employee decided that the working conditions are intolerable and wants to get other employees organized in order to obtain union representation. All employees now believe that their interests will be better served with collective agreements.

83. Refer to Scenario 14.1. Why do workers at Boat Xpress want to organize in a union? a. for economic reasons b. for political reasons c. for social reasons d. for ideological reasons 84. What is the arbitrator’s responsibility in a dispute? a. to interpret the intent of the labour agreement b. to get the parties to work together to solve their differences c. to mandate how the grievance will be resolved d. to decide the case without passing judgment

85. What do we call the actions of a third party who has the power to impose a settlement when the issue relates to the administration of the collective agreement? a. mediation b. rights arbitration c. interest arbitration d. conciliation 86. Unlike many unions in Europe, most of the bargaining and decision making for unions in Canada occurs at which of the following levels? a. the international level b. the national level c. the sectoral level d. the local level 87. In certification elections in Canada, how many employees must vote in favour of unions for them to become certified in workplaces? a. 40 percent, plus one b. 41 percent c. 50 percent, plus one d. 51 percent Scenario 14.1 Boat Xpress, a Canadian shipping firm, has been treating employees unfairly for decades. Employees work full-time hours but are hired as part-timers with no benefits other than 4 percent vacation pay. Health and safety standards are nonexistent, and the list goes on. Employees have tried to organize before, but management fired them and threatened the remaining workers. A new employee decided that the working conditions are intolerable and wants to get other employees organized in order to obtain union representation. All employees now believe that their interests will be better served with collective agreements.

88. Refer to Scenario 14.1. Which step is NOT part of the organizing process before Boat Xpress employees can choose to become unionized? a. employee/union contact b. initial organizational meeting c. formation of an in-house bargaining committee d. application to a labour relations board 89. Which of the following conditions and/or actions may result in labour relations boards imposing a union on an employer in some Canadian jurisdictions, even with as few as 5 percent of the authorization cards signed? a. threats by other unions to go on strike if the workplace does not get its own union b. unfair labour practices committed by the employer in the organizing process c. the need by government for labour relations peace in workplaces d. advice from the International Labour Office 90. In which organizing step does the collection of signed authorization cards play a major role? a. initial organizational meeting b. application to the labour relations board c. formation of in-house organizing committee d. employee/union contact

91. Assume that the Canadian Union of Public Employees (CUPE) is representing essential workers in a hospital. The hospital’s administration and the union are deadlocked in negotiations. What is a likely solution to this impasse? a. decertification of CUPE b. compulsory binding arbitration c. a strike d. counselling 92. In organizing campaigns, which tactic can employers use in opposing unionization? a. increasing benefits b. attending union meetings c. changing working conditions of employees who work for the union d. bargaining in good faith 93. Which of the following is the strongest reason to join a union? a. personal preference for a union and social pressure to join b. dissatisfaction with wages, benefits, and working conditions c. favouritism shown by supervisors in promotions, shift assignments, and transfers d. the need to fraternize with similar employees and assert personal leadership skills 94. The full-time professors at McMaster University are usually represented by a group of nonunionized faculty in wage negotiations with management. What is this group of faculty called? a. a certified union b. a craft union c. an employee association d. a negotiations association 95. According to Canadian labour relations legislation, all of the following employer actions are prohibited EXCEPT which one? a. threatening to close the business b. stating the employer is ready to listen to employees and discuss any issue c. increasing wages during the certification process d. promising increased vacation if the employees vote for no union 96. Mary works in the basement of her employer’s home sewing pants. What is one of the biggest challenges facing workers like Mary in becoming unionized? a. They do not have any political party to help them with organizing. b. They work in scattered locations. c. They are not well-educated. d. They do not work in teams.

97. Which of the following groups may represent professional and white-collar employees? a. an employee association b. the Canadian Labour Congress c. a professional agency d. a management rights association

98. Which of the following groups are most likely to initiate organizing campaigns? a. labour relations boards b. union organizers c. social activists d. employees 99. Which clause holds that “management’s authority is supreme in all matters except those conceded in the collective agreement or in those areas where its authority is restricted by law”? a. the supreme rights clause b. the defined rights clause c. the management rights clause d. the explicit rights clause 100. Tim James is allowed choose whether he wants to become a member of the union or not but still has to pay union dues. What is this type of union security arrangement called? a. agency shop b. union shop c. undemocratic unionism d. unfair labour practice 101. Wilem Corporation is considering strategies to remain union-free. Which of the following is NOT a useful strategy in this respect?? a. offering competitive wages and benefits b. allowing supervisors to adopt their own approaches to employee motivation and job design c. giving attention to employee growth and development needs d. instituting formal procedures to resolve employee complaints 102. In the collective bargaining model, what is the area within which the union and employer are willing to concede when bargaining? a. bargaining scope b. bargaining range c. contingency operating plan d. bargaining zone 103. Gary Walters has applied for a job at a factory. He was told that he has to join the union if he wants the job. What do you call this provision in the collective agreement? a. an illegal clause b. a union shop c. compulsory unionization d. an unfair labour practice 104. In Canada, who is responsible for administering union certification elections? a. the employer b. the Human Rights Commission c. the union d. the labour relations board 105. Omar Mohammed represents the interests of union members in their relations with their immediate supervisors and

other members of management. What is Mr. Mohammed’s most likely job title or role? a. a mediator b. a union steward c. a union leader d. a conciliator 106. In collective bargaining, what does the term “bread-and-butter issues” reflect? a. wages, benefits, and working conditions b. inflationary prices in basic commodities c. the grievance procedure d. items that complement each other like bread and butter 107. Which of the following is a key difference between unionized and nonunionized work in Canada? a. Nonunionized workers get higher wages and benefits. b. Unionized workers get higher wages and benefits. c. Unionized workers get more benefits but less in wages. d. Unionized workers get better pay but less in benefits.

108. The creation of a relationship for the future based on trust, understanding, and mutual respect is the basis of which of the following? a. good faith bargaining b. traditional bargaining c. interest-based bargaining d. adversarial bargaining 109. What type of unions do carpenters and masons usually belong to? a. industrial unions b. regional unions c. central unions d. craft unions Scenario 14.2 Calendar “R” Us Ltd. produces calendars for middle and high schools in Ontario. Calendar started back in 2006 and today has over 60 employees. About two years ago, the employees organized and obtained union certification. To date, the union has not successfully negotiated a collective agreement. Employees are not happy with the progress the union has made, and much of the concerns they have had (wages, benefits, training, etc.) have not been addressed. Calendar “R” Us employees feel that the union is more interested in serving the needs of the company and are looking to find a replacement.

110. Refer to Scenario 14.2. What are the steps in the collective bargaining process that the union and Calendar “R” Us need to go through? a. union proposals, management responses, management demands, limits of concessions b. prepare for negotiations, develop strategies, conduct negotiations, formalize agreement c. union demands, database to support management proposals, union responses d. prepare for negotiations, review proposals, determine counteroffer

111. Explain the impact of unionization on managers.

112. What are the primary reasons for employee unionization?

113. Briefly describe the six steps in the organizing process.

114. How do unions and management employ bargaining power in negotiations?

Answer Key 1. False 2. True 3. True 4. False 5. True 6. True 7. True 8. True 9. False 10. True 11. False 12. True 13. True 14. True 15. True 16. False 17. False 18. False 19. False 20. True 21. True 22. True 23. True 24. True 25. True 26. False 27. True

28. True 29. True 30. True 31. False 32. False 33. True 34. True 35. True 36. True 37. True 38. False 39. True 40. True 41. True 42. False 43. False 44. True 45. True 46. True 47. True 48. True 49. True 50. False 51. True 52. True 53. a 54. a 55. c

56. d 57. b 58. b 59. c 60. b 61. a 62. a 63. b 64. d 65. c 66. a 67. c 68. a 69. b 70. c 71. b 72. b 73. b 74. d 75. d 76. a 77. a 78. a 79. d 80. b 81. d 82. c 83. a

84. c 85. b 86. d 87. c 88. c 89. b 90. c 91. b 92. d 93. b 94. c 95. b 96. b 97. a 98. d 99. c 100. a 101. b 102. d 103. b 104. d 105. b 106. a 107. b 108. c 109. d 110. b 111. The unionization of employees can affect managers in several ways: ∙ Can affect management’s prerogatives in making decisions about employees.

∙ Restricts management’s freedom to formulate HR policy unilaterally. ∙ Typically, unions will try to achieve greater participation in management decisions that affect their members (e.g., productivity standards, job content, etc.). Employers may claim these decisions are management rights; however, these rights are subject to challenge and erosion by the union. ∙ Terms of the collective agreement determine how employees can be directed and how they can be disciplined. ∙ Specific content language of the collective agreement can reduce the manager or supervisor’s ability to manage in such areas as scheduling, training, transfers, performance evaluation, promotions, etc.

112. Some employees join unions because of the union-shop provisions of the collective agreement, which specify that union membership is a condition of employment. Studies have generally concluded that those who unionize voluntarily do so for three key reasons: economic needs, dissatisfaction with management practices, and/or as a way to fulfill social and affiliation needs.

Economic needs. Dissatisfaction with wages, benefits, and working conditions appears to provide the strongest reason to join a union. It is these traditional issues on which unions are built.

Dissatisfaction with management. Employees may seek unionization when they perceive that managerial practices regarding promotion, transfer, shift assignment, or other job-related policies are administered in an unfair or biased manner. Favouritism is particularly resented when it concerns the HR areas of discipline, promotion, and wage increases.

Failure to give employees an opportunity to participate in decisions affecting their welfare may also encourage union membership.

Social and affiliation needs. Employees whose needs for social affiliation and recognition are being frustrated may join unions as a means of satisfying these needs. Through their union, they have an opportunity to fraternize with other employees who have similar desires, interests, problems, and complaints. Joining the union also enables some individuals to put leadership talents to use.

The limited studies conducted on employee unionization in the public sector generally find that public employees unionize for reasons similar to those of their private-sector counterparts. The only difference is that other issues, such as professional development and participation in decision making, are also perceived as important.

In the final analysis, the extent to which employees perceive that the benefits of joining a union outweigh the costs associated with membership is likely to be the deciding factor.

113. Employee/union contact. The first step begins when employees and union officials make contact to explore the possibility of unionization. Employees investigate the advantages of labour representation, and union officials begin to gather information about employee needs, problems, and grievances. Labour organizers also seek information about the employer’s financial health, supervisory styles, and policies and practices. To win employee support, the organizers must build a case against the employer and for the union.

Initial organizational meeting. As the organizing campaign gathers momentum, the organizer schedules an initial union meeting to attract more supporters. The organizer uses the information gathered in step one to address employee needs and explain how the union can meet them. The organizational meeting also enables the organizer to identify employees who can help run the campaign and to establish communication chains that reach all employees.

Formation of an in-house organizing committee. The in-house committee is composed of employees who are willing to provide leadership to the campaign. Their role is to interest other employees in joining the union and supporting its campaign. An important task of committee members is to have employees sign an authorization card indicating their willingness to be represented by the union. The number of signed authorization cards demonstrates the potential strength of the union. The number of cards required for automatic certification and the number required in order to qualify for a representation vote varies by jurisdiction.

Application to the labour relations board. After the required number of authorization cards have been signed, application for certification is made to the applicable labour relations board. Depending on the number of cards signed, the labour relations board may grant automatic certification or hold a secret-ballot vote. If 50 percent of those casting ballots vote in favour of the union, the union is certified.

Issuance of certificate by the labour relations board. A certificate is then issued granting the union the right to represent the employees as a recognized union under the applicable labour relations legislation.

Election of a bargaining committee and contract negotiations. Once the certificate has been issued, a bargaining committee is elected by the union membership. A national or international union representative generally works with this local union committee to negotiate a collective agreement with the company. Bargaining committees are often assisted by specialists in benefits and health and safety.

114. The bargaining power of the union may be exercised by striking or picketing, boycotting the employer’s products and by obtaining strike authorization from their members to strengthen the position of union leaders in negotiations.

The employer’s power rests largely on being able to continue operations in the face of a strike or to shut down operations entirely. Methods include operating using supervisory and non-striking personnel, utilizing technology and automation, transferring operations to other locations, outsourcing, and hiring replacement workers where permitted by law.

Indicate whether the statement is true or false.

1. A global corporation has fully autonomous units operating in multiple countries. a. True b. False 2. Learning how people think and act in their relations with others is a part of cultural training that prepares employees for working internationally. a. True b. False 3. The balance-sheet approach to compensation refers to designing pay systems that equalize the purchasing power of employees at comparable position levels living overseas and in the home country. a. True b. False 4. Only 20 percent of people globally are covered by any sort of social insurance programs. a. True b. False 5. NAFTA has spurred job growth in all three member countries. a. True b. False 6. The failure of expatriate assignments is usually due to technical or managerial concerns. a. True b. False 7. In some countries, unions are part of alliances between political parties, churches, or governments. a. True b. False 8. English is almost universally accepted as the language for international business. a. True b. False

9. One of the biggest causes of expatriate failure is a spouse’s inability to adjust to his or her new surroundings. a. True b. False 10. In Europe, most union negotiations occur at the company level. a. True b. False 11. Some of the advantages of using home-country nationals for overseas managerial assignments are that the talent is already available within the organization and that the organization can have greater control. a. True b. False 12. The employment of guest workers may result in indirect costs that may be substantial. a. True b. False 13. A Canadian firm with fully autonomous operating units in Korea, Spain, and Sweden would be classified as a multidomestic corporation. a. True b. False 14. Transnational teams are composed of members from multiple nationalities working on projects that span multiple countries. a. True b. False 15. One reason to employ host-country nationals is that local governments want good jobs for their citizens. a. True b. False 16. Employee benefits in Canada are among the highest in the world. a. True b. False 17. Global managers must be capable of managing highly decentralized organizations. a. True b. False 18. Canadian companies have been conducting business on an international basis longer than anyone else. a. True b. False 19. The European Union (EU) was established to facilitate free trade with North America. a. True b. False 20. A work permit or work certificate allows a foreign individual to seek employment in another country. a. True b. False

21. Repatriation refers to the training a manager receives before taking an international assignment. a. True b. False 22. Expatriates should not be expected to evaluate their own performance. a. True b. False 23. Managers in Latin American countries can encourage performance by using personal influence and working through individual members of a group. a. True b. False 24. International HRM is virtually identical to domestic HRM. a. True b. False 25. Performance evaluations of expatriates should occur in both the home and the host countries. a. True b. False 26. Different cultural environments require different organizational behaviours. a. True b. False 27. In appraising the performance of an employee on an international assignment, many appraisers resort to using criteria that are easy to measure rather than criteria that capture all responsibilities. a. True b. False 28. In general, it is typically better to hire host-country nationals when operating abroad because it is less expensive, it pleases the local government, and it eliminates the problem of employees adjusting to the culture. a. True b. False 29. North American managers tend to have highly autocratic decision-making styles. a. True b. False 30. Culture shock refers to the disorientation people experience adjusting to a new culture. a. True b. False 31. The International Labour Organization enforces international labour standards. a. True b. False 32. An advantage of home country nationals is that they have intimate knowledge of the environment and culture. a. True b. False

33. If an organization wanted to decrease the failure rate of its expatriates, one good strategy would be to give more women international assignments. a. True b. False 34. Cultural differences have little impact on international compensation. a. True b. False 35. Expressions such as “tabling a subject” and “it is inconvenient” may have meanings in other cultures that are very different from their North American meanings. a. True b. False 36. Subsidiaries of multidomestic corporations are usually run as independent companies. a. True b. False 37. The source of overseas employees that provides the advantages of less cost and greater facility in the language is hostcountry nationals. a. True b. False 38. The host country is the country in which an international business operates. a. True b. False 39. Production manager Jim McIntyre has been successful in his Canadian assignment using a participative management style. If he uses this same style in some other countries, he may be regarded as an incompetent manager. a. True b. False 40. Repatriation is usually a planned and positive experience for employees returning from an international assignment. a. True b. False 41. China has only one union. a. True b. False 42. Women expatriates are thought to succeed in part because they are visible and distinctive. a. True b. False 43. Lack of training is one of the principal causes of failure among employees working internationally. a. True b. False 44. A multidomestic corporation is essentially a domestic firm that builds on its existing capabilities to penetrate overseas markets. a. True

b. False 45. Multinational corporations tend to use different kinds of external recruitment sources than are used in their home countries. a. True b. False 46. Managers’ attitudes and behaviours are influenced by the society in which they received their education and training. a. True b. False 47. Pay plans in Japan tend to focus on individual performance and achievement. a. True b. False 48. At early stages of international expansion, many organizations prefer to use host-country nationals. a. True b. False 49. Codetermination refers to the training an expatriate manager receives before an international assignment. a. True b. False 50. The first step in selecting expatriates should be self-selection, where employees who volunteer to go abroad are given the chance to do so. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

51. Compared to North American managers, what kind of decision-making style do South American managers tend to use in the workplace? a. a more participatory style b. a more democratic style c. a more inclusionary style d. a more autocratic style 52. What is the first step in selecting individuals for an international assignment? a. self-selection b. assessing core skills c. assessing augmented skills d. creating a candidate pool Scenario 15.1 From 2008, ForEx Inc. has shifted some of its operations to China and Malaysia, where production costs are considerably lower compared to Canada. Since then, 35 managers have been sent to those countries either on short- or long-term assignments to head up operations, conduct training and development, or just to oversee specific projects. Of the 35 managers only five were women, even though women make up 40 percent of the management team. Expatriates on longterm assignments are given financial incentives to offset any qualitative differences between the costs of living in the two locations.

53. Refer to Scenario 15.1. All of the following represent important information that they will need to know and understand EXCEPT which one? a. the pay structure of the organization abroad b. the country where they are going c. the culture of the country where they are going d. the history, values, and dynamics of their own organization 54. Which of the following is the source of overseas employees that provides the advantages of less cost and greater facility in the language? a. home-country nationals b. expatriates c. third-country nationals d. host-country nationals 55. In some countries, such as India, profit sharing is mandated by law. Thus, companies have to distribute some of their profits to the employees. What is the key reason for this requirement? a. These countries are corrupt, and thus they require foreign firms to bribe the workers. b. This is a requirement for all new foreign investments, as mandated by the United Nations. c. It is done to punish these companies for colonialism. d. It allows for a redistribution of wealth at the firm level.

56. In many European countries, including Germany, a very high level of worker participation can be found, where national law requires that labour be part of, for instance, the boards of directors of companies. What is this participative arrangement called? a. socialism b. codetermination c. quality circles d. bipartite participation 57. Think about a spider’s web with the spider in the middle. In this scenario, the spider controls the web from the centre.

What type of corporation does this web resemble the most? a. an international corporation b. a multidomestic corporation c. a global corporation d. a transnational corporation 58. Which type of expatriate pay system is localization associated with? a. the balance-sheet approach b. host-based pay c. the global pay system d. performance-based pay 59. What is repatriation? a. a process to train expatriates prior to their first international assignment

b. adaptation of leadership and decision-making styles to the host country c. a process to help employees make the transition back home d. the ability of employees to settle in their international assignments 60. What is the key purpose of the balance-sheet approach to compensating expatriate managers? a. to enhance the skills of the expatriate b. to ensure that the expatriate does not lose financially in his or her international assignment c. to balance the social costs of the assignment d. to ensure that there is work–life balance 61. Heineken recently organized a group of individuals with specialized skills representing each major region within Europe. Which of the following is this group an example of? a. a transfunctional team b. a multinational team c. a multicultural team d. a transnational team 62. What is most likely to happen when companies fail to use the knowledge, skills, and understanding that expatriate managers acquire in international assignments? a. Language training is viewed as unnecessary. b. The expatriates often take lower-level jobs upon return or leave the company. c. Repatriation is no longer recommended. d. Home-country nationals are used more often in favour of expatriates.

63. In designing compensation systems, what does the philosophy of “thinking globally and acting locally” mean? a. Expatriates should be rewarded primarily for their local actions. b. Pay plans should be originated at the local level but global organizational issues should be considered in pay plan development. c. Expatriates should be rewarded for their local actions as well as their performance that impacts the entire organization. d. Pay plans should be designed to support the overall strategic intent of the organization and also provide enough flexibility to customize certain policies to meet the needs of employees in specific locations.

64. To produce the Tata-Nano, one of the cheapest cars in the world, Tata Motors used teams from different countries to put together cheap and reliable parts. What is this type of team called? a. an international team b. a transnational team c. a product team d. a third-country national team 65. What do we call the country in which an international business operates? a. the host country b. the adaptive country c. the resource country d. the receptive country 66. What is a global compensation system?

a. a system where employees for a multinational firm in different countries are paid exactly the same b. a system where host-country employees are paid similarly to employees in the home country c. a system where expatriates are paid at the global rates for their services d. a system where expatriates enjoy the balance-sheet approach to their pay 67. Which of the following is a major reason for failure among expatriates? a. inability to cope with larger responsibilities b. a manager’s personality c. a spouse’s inability to adapt d. distaste for travel 68. Some Japanese firms, such as Matsushita and NEC, tend to operate as domestic firms but see the whole world domestically—that is, as their market. What type of firms are these? a. transnational firms b. multidomestic firms c. international firms d. global firms 69. BC Computers is a Canadian firm located in British Columbia. In this instance, what does Canada represent? a. the adaptive country b. the resource country c. the host country d. the receptive country 70. When an American multidomestic corporation hires a Canadian to work in its offices in India, what is this employee known as? a. a third-country national b. a Canadian national c. a home country national d. a host-country national 71. The International Labour Organization has set itself an agenda—called the “Decent Work Agenda.” What is the main purpose behind this move? a. to push globalization b. to illustrate the decency embedded in international work c. to highlight the ethical dimension of work d. to chart laws for international firms 72. Rand Computers is a mid-sized firm located in Toronto. As a result of personal connections, Rand Computers has started a division in Buffalo, New York. What type of corporation is Rand Computers? a. a multidomestic corporation b. a global corporation c. an international corporation d. a transnational corporation 73. What is evident when you compare wages and benefits for employees in European countries such as Norway and Denmark to employees in North America?

a. There are higher wages and benefits in Europe. b. There are lower wages and better benefits in North America. c. There are higher wages but lower benefits in North America. d. There are higher wages and benefits in North America.

74. UVW is an international firm with headquarters in Germany. Its operations in other parts of the world are fully autonomous. What type of firm is UVW? a. a transnational corporation b. a global enterprise c. a multidomestic corporation d. an international corporation Scenario 15.1 From 2008, ForEx Inc. has shifted some of its operations to China and Malaysia, where production costs are considerably lower compared to Canada. Since then, 35 managers have been sent to those countries either on short- or long-term assignments to head up operations, conduct training and development, or just to oversee specific projects. Of the 35 managers only five were women, even though women make up 40 percent of the management team. Expatriates on longterm assignments are given financial incentives to offset any qualitative differences between the costs of living in the two locations.

75. Refer to Scenario 15.1. Based on material in the text, which of the following would be an inaccurate assumption by ForEx for its women expatriates? a. They will fail at higher rates than men because of the tough conditions. b. They will be subject to more sexual assaults than their male counterparts. c. They are visible and distinctive and may even receive special treatment not given to their male colleagues. d. Locals assume the company would not have sent a woman unless she was the very best.

76. Compared to Canadian managers, what kind of decision-making style do Japanese managers tend to use in the workplace? a. a more participatory style b. a more decentralized style c. a more autocratic style d. about the same style 77. Which of the following organizations is pursuing a transnational strategy? a. a car company developing a “world” car to gain scale economies b. a brewery trying to achieve scale economies while simultaneously customizing its taste and marketing efforts for local markets c. a company producing customized fashions for multiple regions of the world d. a steel company trying to simultaneously gain scale economies and increase the quality of its products 78. What is the main purpose of free trade agreements, such as NAFTA? a. to facilitate the free movement of goods, services, capital, and people across borders b. to help fight terrorism c. to help the United Nations with its work d. to increase tourism

79. Which of the following is a common problem with performance appraisals of international assignees? a. criterion deficiency b. criterion contamination c. lack of inter-rater reliability d. lack of validity Scenario 15.2 Coffee Emporium has been one of Canada’s premium coffee shops for decades. Recently, the company has been losing market share to giant multinational corporations such as McDonald’s, which has now moved into the coffee business with its signature McCafe. Coffee Emporium recognizes that the only way to stay relevant and competitive is to expand its business across international borders and capitalize on its brand recognition and loyalty. The company wants to start off in the United States (US) and the United Kingdom (UK), where the cultures are somewhat similar to Canada’s. Coffee Emporium will now be adapting its existing products for overseas markets without changing much else about its normal operations.

80. Refer to Scenario 15.2. If Coffee Emporium expands its business across the United States to begin with, what type of corporation would it become? a. a multinational corporation b. a transnational corporation c. a global corporation d. an international corporation 81. According to the textbook, what is NOT an augmented skill that is critical for success abroad? a. technical skill b. negotiation c. decision-making d. delegation 82. What is the term used to refer to the religion, values and attitudes, politics, technology, education, and social organization of a nation? a. ritual environment b. general environment c. task environment d. cultural environment 83. What was one of GE’s recruitment problems when it first entered India? a. finding locals with good English language skills b. not using family ties and friendship networks c. reward systems that were culturally biased d. understanding the transportation systems 84. What is a key advantage of hiring home-country nationals for firms with international operations? a. They have better technical knowledge. b. They are less costly than relocating expatriates. c. They know more about the firm. d. They have better chances of being promoted.

Scenario 15.2

Coffee Emporium has been one of Canada’s premium coffee shops for decades. Recently, the company has been losing market share to giant multinational corporations such as McDonald’s, which has now moved into the coffee business with its signature McCafe. Coffee Emporium recognizes that the only way to stay relevant and competitive is to expand its business across international borders and capitalize on its brand recognition and loyalty. The company wants to start off in the United States (US) and the United Kingdom (UK), where the cultures are somewhat similar to Canada’s. Coffee Emporium will now be adapting its existing products for overseas markets without changing much else about its normal operations.

85. Refer to Scenario 15.2. All of the following are advantages of Coffee Emporium hiring host-country nationals EXCEPT which one? a. It is generally more costly than relocating expatriates. b. Locals have more experience running the business. c. Customers want to do business with companies/people they perceive to be local. d. Local citizens also know the cultural and political landscape of the country.

Scenario 15.1 From 2008, ForEx Inc. has shifted some of its operations to China and Malaysia, where production costs are considerably lower compared to Canada. Since then, 35 managers have been sent to those countries either on short- or long-term assignments to head up operations, conduct training and development, or just to oversee specific projects. Of the 35 managers only five were women, even though women make up 40 percent of the management team. Expatriates on longterm assignments are given financial incentives to offset any qualitative differences between the costs of living in the two locations.

86. Refer to Scenario 15.1. While overseas assignments can be very rewarding, it is also important to ensure that the feeling continues after repatriation. Which of the following is NOT true? a. Thirty-six percent of Canadian companies have a repatriation plan. b. One-third of Canadian companies have programs to facilitate appropriate career positions on repatriation. c. Fifty percent of Canadian companies provide this assistance after repatriation. d. One-fifth of Canadian companies start planning for repatriation even before the candidate leaves 87. Refer to Scenario 15.1. Assume that ForEx will use the balance-sheet approach to compensate expatriates. Which of the following is NOT one of the steps in this approach? a. add incentive premiums b. figure cost-of-living adjustment c. add assistance programs d. calculate commission pay Scenario 15.2 Coffee Emporium has been one of Canada’s premium coffee shops for decades. Recently, the company has been losing market share to giant multinational corporations such as McDonald’s, which has now moved into the coffee business with its signature McCafe. Coffee Emporium recognizes that the only way to stay relevant and competitive is to expand its business across international borders and capitalize on its brand recognition and loyalty. The company wants to start off in the United States (US) and the United Kingdom (UK), where the cultures are somewhat similar to Canada’s. Coffee Emporium will now be adapting its existing products for overseas markets without changing much else about its normal operations.

88. Refer to Scenario 15.2. Coffee Emporium HR managers will be responsible for staffing the international expansions.

Which of the following is used for staffing by most corporations? a. home-country nationals b. host-country nationals c. a combination of home-country, host-country, and third-country nationals

d. third-country nationals 89. In using the balance-sheet approach to compensating expatriate managers, the term “incentive premiums” refers to which of the following concepts? a. extra money for enduring the culture shock b. offsetting the higher costs of overseas goods and services c. compensating the managers for separation from family and friends and doing hazardous duty d. covering moving, storage, and educational expenses 90. Many farm workers come to Canada to work during the summer period. What is the name of the document issued by the government granting authority to these farm workers to seek employment in Canada? a. a short stay permit b. an H2 visa c. a work permit d. a passport 91. Dimitri works as a compensation manager for IDL Inc., a multidomestic firm located in Nova Scotia. He has been posted to Brazil on an assignment. What type of employee is Dimitri? a. a host-country national b. a third-country national c. an international manager d. a home-country national 92. NBC Petroleum Corporation, a French firm, is now establishing a subsidiary in Bangladesh. This represents an early stage of international expansion for the company. What type of employees would NBC Petroleum most likely use? a. home-country nationals b. third-country nationals c. host-country nationals d. expatriates 93. Expatriates can be compensated for their services in several ways. At one end, their pay can be based on their earnings in the home country. What is at the other end of expatriate pay? a. host-based pay b. skill-based pay c. balance-sheet pay d. third-country-based pay 94. Manuela is from Brazil. She was hired by a Canadian multinational corporation to work in its office in Rio (located in Brazil). What is Manuela referred to as? a. an expatriate b. a third-country national c. a host-country national d. an international manager 95. What is the specialized agency of the United Nations that promotes the rights of workers? a. the International Labour Organization b. the World Trade Organization

c. the Centre for Labour Standards d. the Security Council 96. ABC Inc., a firm located in Tokyo, Japan, is likely to emphasize which of the following in its pay system? a. nonfinancial incentives b. weekly or monthly salary guarantees c. internal equity and personal needs d. individual performance 97. Avinash, a Canadian who was sent on an international assignment to Brazil, experienced severe disorientation that caused perpetual stress during his posting. What was Avinash most likely experiencing? a. dietary problems b. lack of work?0?life balance c. organizational disorientation d. culture shock 98. A PEST analysis refers to an assessment of which of the following types of factors? a. political, environmental, sociocultural, and technological b. technological, political, sociocultural, and economic c. environmental, social, political, and economic d. political, economic, social, and technological 99. IAM Inc. has operations in many countries. Recently, it used staff from four of these countries to work on a project.

What type of team would this be? a. a transnational team b. a global team c. an integrated team d. a borderless team 100. If Canadian company Bombardier transferred Karl Hammer, a native German, away from his assignment in Bonn, Germany, to a new assignment in Paris, France, Karl would then be considered which of the following? a. a host-country national b. a home-host-country national c. a third-country national d. a home-country national 101. Under which of the following conditions would a firm continue to use expatriates in its international operations even after a few years? a. when the labour costs of expatriates increase b. when local employees are fully trained c. when it wants to send a signal that it values third-country nationals d. when host-country nationals continue to experience difficulties with marketing the firm’s products 102. Which of the following best describes cultural conditioning? a. It does not include the formal education or training a person receives. b. It influences the attitudes, behaviours, and reactions of both workers and their managers. c. It has little impact on international HRM.

d. It helps people react positively to tastes and behaviours similar to their own.

103. According to the textbook, which of the following is NOT one of the five essential components of training and development programs for employees going on international assignments? a. expatriation b. repatriation c. language training d. managing personal and family life 104. While IT Motors is located in China, it has allowed management in all of its international operations to make independent decisions on how they conduct business in their different environments. What kind of corporation is IT Motors? a. a multidomestic corporation b. an international corporation c. a global corporation d. a transnational corporation

105. Define and describe the balance-sheet approach used by many multinational corporations to calculate the compensation they wish to offer to their expatriates.

106. What are the primary differences among international, multinational, global, and transnational corporations?

107. A multidomestic corporation (MDC) has three basic sources to use when staffing its foreign operation. Name the three sources of overseas managers and state advantages and disadvantages of each.

Answer Key 1. False 2. True 3. True 4. True 5. True 6. False 7. True 8. True 9. True 10. False 11. True 12. True 13. True 14. True 15. True 16. False 17. True 18. False 19. False 20. True 21. False 22. False 23. True 24. False 25. True 26. True 27. True

28. True 29. False 30. True 31. False 32. False 33. True 34. False 35. True 36. True 37. True 38. True 39. True 40. False 41. True 42. True 43. True 44. False 45. False 46. True 47. False 48. False 49. False 50. True 51. d 52. a 53. a 54. d 55. d

56. b 57. c 58. b 59. c 60. b 61. d 62. b 63. d 64. b 65. a 66. b 67. c 68. d 69. c 70. a 71. c 72. c 73. a 74. c 75. a 76. a 77. b 78. a 79. a 80. d 81. c 82. d 83. b

84. b 85. a 86. c 87. d 88. c 89. c 90. c 91. d 92. a 93. a 94. c 95. a 96. c 97. d 98. b 99. a 100. c 101. d 102. b 103. a 104. a 105. The balance-sheet approach is a system designed to equalize the purchasing power of employees at comparable levels living overseas and in the home country, and to provide incentives to offset qualitative differences between assignment locations.

The four elements of this approach are (1) base pay, which should be equal to the domestic pay for a comparable job; (2) differentials, a cost-of-living-type adjustment generally computed from U.S. Department of State data; (3) incentives, an adjustment often at about 15 percent of base pay, used to compensate the expatriate for separation from his or her family and friends; and (4) assistance programs, used to cover costs of moving and storage as well as car and education expenses.

106. The international corporation is essentially a domestic firm that builds on its existing capabilities to penetrate overseas markets. A multidomestic corporation (MDC) is a more complex form that usually has fully autonomous units operating in multiple countries. The global corporation can be viewed as a multinational firm that maintains control of operations back in the home office. Finally, a transnational corporation attempts to achieve the local responsiveness of an MDC while also achieving the efficiencies of a global firm through the use of a network structure that coordinates

specialized facilities positioned around the world.

107. Host-country nationals cost less to place, are preferred by the local governments, know the language, and have an excellent knowledge of and feel for the local/national environment. However, host-country nationals must have the managerial ability and technical skills the MDC needs.

Home-country nationals, known as expatriates, are already known quantities within the MDC. The MDC expects to have greater control over them, since they have provided the expatriates with work experiences. Offering mobility and international experience is often desirable to the MDC and the manager. However, the cost of relocation is extremely high, expatriates or their families may not adjust well, and many expatriates fear they will be passed over for promotions when they return.

Third-country nationals, who are from one country, are working for an MDC located in a second, and are now assigned to yet a third country, bring a very broad experience and background to foreign assignments. They have an international outlook and are multilingual. However, their cost of relocation might be as high as an expatriate’s. Further, unless operating within their own “zone,” they may not bring with them any of the advantages a host-country national would offer.