Test Bank for Managing Human Resources 9th Canadian Edition By Monica Belcourt, Parbudyal Singh, Sco

Date: TESTClass: BANK Managing Human Resources 9th Canadian Edition TESTBy BANK FOR Belcourt, Parbudyal Singh, Scott Snell, Monica Managing Human Resources 9th Canadian Edition By Monica Belcourt, Shad Morris Parbudyal Singh, Scott Snell, Shad Morris Chapter 1-15 Name:

Chapter 1 - The World of Human Resources Management 1. Employers have to blend competitive challenges and employee concerns. Which of the following pairs these two aspects of management? a. globalization and technology b. technology and privacy issues c. job security and employee attitudes d. globalization and cost containment ANSWER: b 2. 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 ANSWER: b 3. 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 ANSWER: b 4. 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 ANSWER: d 5. What are the components of human capital? a. employees‘ skills, abilities, and behaviours b. employees‘ knowledge, skills, and abilities c. employees‘ knowledge, skills, and behaviours d. employees‘ knowledge, abilities, and behaviours ANSWER: b 6. 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 Copyright Cengage Learning. Powered by Cognero.

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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 ANSWER: c 7. 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 ANSWER: a 8. Compared with the past, what are two new areas for HR managers today? a. streamlining costs and helping with organizational strategy b. managing administrative issues and streamlining costs c. managing administrative issues and adhering to employment laws d. adhering to employment laws and streamlining costs ANSWER: a 9. 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 ANSWER: d 10. 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 ANSWER: a 11. 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) ANSWER: b 12. 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 ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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13. 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 ANSWER: d 14. 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 ANSWER: b 15. HRISs 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 16. HRISs 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 ANSWER: c 17. 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 ANSWER: a 18. 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 ANSWER: c 19. 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 ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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20. 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 ANSWER: d 21. 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 ANSWER: a 22. ABC Inc. is planning to sell its products to new markets outside North America in anticipation of changes in NAFTA. What type of change management is ABC Inc. practising? a. inertia b. proactive c. reactive d. passive ANSWER: b 23. 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 ANSWER: b 24. 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 25. 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.‖ ANSWER: d 26. 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 ANSWER: b Copyright Cengage Learning. Powered by Cognero.

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27. What are millennials also known as? a. Generation A b. Generation B c. Generation X d. Generation Y ANSWER: d 28. 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.

ANSWER: b 29. 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 30. 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 31. 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 32. 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 ANSWER: a 33. 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 past ten years. c. The continuous shifting of global economies makes offshoring a necessary function for organizations to survive.

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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 34. 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. gain sourcing c. employee leasing d. outsourcing ANSWER: c 35. 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.

ANSWER: a 36. 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.

ANSWER: c 37. 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.

ANSWER: d 38. Which generation should organizations target the most for recruitment with the use of social media? a. baby boomers b. echo boomers c. Generation X d. Generation Z ANSWER: d 39. 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.

ANSWER: c Copyright Cengage Learning. Powered by Cognero.

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40. 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 ANSWER: b 41. 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 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. What are the competencies of the human resources manager? a. business mastery, HR mastery, and executive mastery b. business mastery, HR mastery, and personal mastery c. business mastery, HR mastery, personal credibility, and change mastery d. change mastery, personal credibility, union mastery, and HR mastery ANSWER: c 44. 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 ANSWER: d 45. 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.

ANSWER: a 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.

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46. 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) ANSWER: b 47. 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.

ANSWER: a 48. 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 ANSWER: d 49. 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 ANSWER: a 50. 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 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.

51. 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?

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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.

ANSWER: a 52. Refer to Scenario 1.2. What is a key advantage for ABS Inc. if they install better HRISs? 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.

ANSWER: b 53. 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 a. True b. False ANSWER: False 54. 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 a. True b. False ANSWER: True 55. Organizations own their human capital, including investments made in training and development. a. True b. False a. True b. False ANSWER: False 56. Human resource management issues can be managed by human resource managers only. a. True b. False 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 Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: False 58. One of the main reasons change efforts fail is that organizations do not create a sense of urgency. a. True b. False a. True b. False ANSWER: True 59. Human capital is a tangible asset. a. True b. False a. True b. False ANSWER: False 60. All departments are responsible for managing employees. a. True b. False a. True b. False ANSWER: True 61. To be successful, organizations should seek to align their processes with customer needs. a. True b. False a. True b. False ANSWER: True 62. ―Six Sigma‖ refers to the six criteria for the Malcolm Baldrige National Quality Award. a. True b. False a. True b. False ANSWER: False 63. Organizations known for product and service quality recognize the importance of employees in fostering quality improvements. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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64. 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 a. True b. False ANSWER: False 65. 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 a. True b. False ANSWER: False 66. In the past, HR departments focused mainly on managing administrative issues. a. True b. False a. True b. False ANSWER: True 67. 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 a. True b. False ANSWER: False 68. HR managers help the organization with strategy formulation and implementation. a. True b. False a. True b. False ANSWER: True 69. ―Brexit‖ is the term used to refer to the United States renegotiating NAFTA. a. True b. False a. True b. False ANSWER: False 70. Employees and the public at large are demanding that employers demonstrate greater social responsibility. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: True 71. The introduction of advanced technology tends to increase the number of jobs that require basic skills. a. True b. False a. True b. False ANSWER: False 72. 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 a. True b. False ANSWER: False 73. In general, many companies are realizing diminished demand for ―touch labour‖ and an increasing demand for ―knowledge workers.‖ a. True b. False a. True b. False ANSWER: True 74. A human resource information system (HRIS) provides current and accurate data for control and decision making by managers. a. True b. False a. True b. False ANSWER: True 75. Because of its importance, HR managers in progressive organizations are frequently assuming sole responsibility for the implementation of information technology. a. True b. False a. True b. False ANSWER: False 76. An important hidden cost of layoffs is a loss of institutional memory and trust in management. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: True 77. Labour costs are one of the largest expenditures of many organizations. a. True b. False a. True b. False ANSWER: True 78. Outsourcing has been one of the most prominent trends in HR for the past 15 years. a. True b. False a. True b. False ANSWER: True 79. Almost all Canadian employers have engaged in some type of downsizing. a. True b. False a. True b. False ANSWER: False 80. Methods of reducing labour costs include downsizing, outsourcing, and employee leasing. a. True b. False a. True b. False ANSWER: True 81. Off-shoring is also called ―global sourcing.‖ a. True b. False a. True b. False ANSWER: True 82. 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 a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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83. Employee leasing refers to employing workers in their homes rather than within the traditional office environment. a. True b. False a. True b. False ANSWER: False 84. Employee leasing shifts administrative costs from the company to a professional employer organization. a. True b. False a. True b. False ANSWER: True 85. 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 a. True b. False ANSWER: True 86. It is quite possible that when managers increase costs, productivity often rises. a. True b. False a. True b. False ANSWER: False 87. Older workers now are choosing to work longer. a. True b. False a. True b. False ANSWER: True 88. Today, a larger percentage of university graduates are women compared to men. a. True b. False a. True b. False ANSWER: True 89. Women are heavily concentrated in managerial occupations. a. True b. False a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False 90. The most recent census (2016) shows that more Canadians have a university or college education than in the past. a. True b. False a. True b. False ANSWER: True 91. Managing diversity means ensuring all employees are treated equally. a. True b. False a. True b. False ANSWER: False 92. Managers in general and HR managers in particular should be concerned with the makeup and expectations of their employees. a. True b. False a. True b. False ANSWER: True 93. Employees today are less likely to define success only in terms of financial gain. a. True b. False a. True b. False ANSWER: True 94. Family-friendly companies may risk alienating those employees who cannot utilize benefits provided. a. True b. False a. True b. False ANSWER: True 95. Most human resources issues have little relevance for line managers. a. True b. False a. True b. False ANSWER: False 96. Some companies report that offering family-friendly benefits is so successful there are virtually no drawbacks.

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a. True b. False a. True b. False ANSWER: False 97. One of the responsibilities of HR managers is to provide advice and counsel to line managers. a. True b. False a. True b. False ANSWER: True 98. An HR manager is typically expected to function as an in-house consultant to supervisors, managers, and executives. a. True b. False a. True b. False ANSWER: True 99. Because HR managers function in an advisory role, they are responsible for issuing policy revisions and implementing them. a. True b. False a. True b. False ANSWER: False 100. 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 a. True b. False ANSWER: False 101. One of the roles of HR managers is to act as employee advocates despite their positions as managers. a. True b. False a. True b. False ANSWER: True 102. Business mastery is a key competency of HR managers. a. True b. False a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True 103. What are the six competitive challenges facing human resources management departments?

ANSWER: 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.

104. Describe the key competencies of HR managers and professionals.

ANSWER: HR managers and professionals are expected to have four key competencies: 1. Business mastery. HR professionals need to know the business of their organizations. This may involve aspects of business acumen, customer and client orientation, and a good understanding of external relations.

They require an understanding of the organization‘s 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. HR professionals also need skills in external relations focused on their customers.

2. HR mastery. HR professionals are the organization‘s behavioural science experts. They need to be proficient in the core aspects of the field/HR function, including staffing, development, appraisals, rewards, team building, and communication.

3. Change mastery. HR professionals must be able to recognize the need for change and understand how effective change can be implemented. Such change efforts should be grounded in HR managers‘/professionals‘ interpersonal skills and influence, their problem-solving skills, and their effective use of rewards systems, among others. They need to manage change processes so that their firm‘s HR activities are effectively merged with the business needs of their organizations.

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4. Personal credibility. HR professionals must establish personal credibility in the eyes of internal and external stakeholders. Credibility and trust are earned through ethical personal relationships with one‘s customers, demonstrating the values of the firm, standing up for one‘s own beliefs, and being fair-minded when dealing with others.

Chapter_2_Strategy_and_Human_Resources_Planning

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. What is the relationship between human resource planning and strategic human resource management? a. Strategic human resource management is narrower in scope than human resource planning. b. Strategic human resource management is broader in scope than human resource planning. c. Human resource planning is the same as strategic human resource management. d. Human resource planning is more important than strategic human resource management.

ANSWER: b 3. Which of the following is a typical activity undertaken by human resource management professionals in a SWOT analysis? a. gauging the external supply of labour b. analyzing the organization‘s core competencies c. reconciling labour supply and demand d. analyzing the industry and competitors ANSWER: a 4. Which of the following is a typical activity undertaken by human resource management professionals at the strategy implementation stage? a. conducting human resource forecasting for the demand of labour b. helping to capture the underlying business philosophy c. helping to analyze the workforce‘s culture d. using performance management to achieve organizational strategy 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?

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a. strategic vision c. core values ANSWER: b

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b. mission d. core resources

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 Copyright Cengage Learning. Powered by Cognero.

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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 part-time 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. Which of these groups is a secondary stakeholder of an organization? a. investors b. employees c. suppliers d. news reporters ANSWER: d 21. What is values-based hiring? a. hiring employees whose values correspond to their corporate cultures b. hiring employees based on good ethical values Copyright Cengage Learning. Powered by Cognero.

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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. Which of the following is used in forecasting the demand of labour? a. replacement charts b. Markov analysis c. trend analysis d. succession planning ANSWER: c 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 Copyright Cengage Learning. Powered by Cognero.

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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. Which of the following is included in an external analysis of an organization in a SWOT analysis? a. An analysis of its strengths. b. An analysis of its core capabilities. c. An analysis of its weaknesses. d. An analysis of its opportunities.

ANSWER: d 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 Copyright Cengage Learning. Powered by Cognero.

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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 ANSWER: d 42. What is the term for the process that is used to identify ―best practices‖? a. benchmarking b. balancing the scorecard c. HR ―dashboard‖ d. Markov analysis ANSWER: a 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 Copyright Cengage Learning. Powered by Cognero.

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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. Which of the following can be used to translate strategic goals to operational objectives? a. a Markov analysis b. a replacement chart c. a skills inventory d. a balanced scorecard ANSWER: d 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.

46. 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. 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. 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. 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 Copyright Cengage Learning. Powered by Cognero.

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ANSWER: d 50. 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 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.

51. 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. 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. 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. 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 55. Strategic human resource management combines human resource planning and strategic planning. a. True b. False a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True 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 a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 58. Forecasting labour supply is an aspect of human resource planning. a. True b. False a. True b. False ANSWER: True 59. Human resources planning (HRP) is the conducting of recruitment and selection methods according to a strategic plan. a. True b. False a. True b. False ANSWER: False 60. The mission statement of an organization is a description of the organization‘s vision and values. a. True b. False a. True b. False ANSWER: False 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 a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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62. Environmental scanning involves the systematic monitoring of internal factors influencing the organization. a. True b. False a. True b. False ANSWER: False 63. Economic factors in environmental scanning include general and global conditions. a. True b. False a. True b. False ANSWER: True 64. Gauging demographic trends is an aspect of the external analysis in a SWOT analysis. a. True b. False a. True b. False ANSWER: True 65. Utilizing a balanced scorecard is an aspect of the internal analysis in a SWOT analysis. a. True b. False a. True b. False ANSWER: False 66. National and regional unemployment rates are often considered a general barometer of labour supply. a. True b. False a. True b. False ANSWER: True 67. Investors are primary stakeholders of an organization. a. True b. False a. True b. False ANSWER: True 68. Suppliers are secondary stakeholders of an organization. a. True b. False a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False 69. Internal analysis provides strategic decision makers with an inventory of organizational skills and resources. a. True b. False a. True b. False ANSWER: True 70. A cultural audit asks questions such as ―How do employees spend their time?‖ a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 72. Core capabilities provide a long-term basis for technological innovation, product development, and service delivery. a. True b. False a. True b. False ANSWER: True 73. In general, contract labour possesses skills and knowledge of less strategic value to the organization than core knowledge workers. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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75. A cultural audit may examine how people are empowered. a. True b. False a. True b. False ANSWER: True 76. A cultural audit asks questions such as ―What is the ethnic make-up of my workforce?‖ a. True b. False a. True b. False ANSWER: False 77. There are two approaches to HR forecasting: quantitative and qualitative. a. True b. False a. True b. False ANSWER: True 78. Trend analysis is a qualitative approach to labour demand forecasting. a. True b. False a. True b. False ANSWER: False 79. Trend analysis relies on a single business factor. a. True b. False a. True b. False ANSWER: True 80. Forecasting may be as informal as having one person familiar with the organization anticipate HR needs. a. True b. False a. True b. False ANSWER: True 81. Management forecasts are quantitative measurements of future employment needs. a. True b. False a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False 82. The Delphi technique works best in organizations where dynamic technological changes affect staffing levels. a. True b. False a. True b. False ANSWER: True 83. Staffing tables provide data on external labour supply sources. a. True b. False a. True b. False ANSWER: False 84. Markov analysis is a systematic monitoring of the major external forces influencing an organization. a. True b. False a. True b. False ANSWER: False 85. Markov analysis focuses on the number of employees in particular jobs and their skill levels, compensation, and job tenure. a. True b. False a. True b. False ANSWER: False 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 a. True b. False ANSWER: True 87. Replacement charts are listings of current jobholders who are potential replacements if an opening occurs. a. True b. False a. True b. False ANSWER: True 88. SWOT analysis includes the strengths only for strategy formulation purposes.

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a. True b. False a. True b. False ANSWER: False 89. For Microsoft, brand recognition can be classified as a strength in the SWOT analysis. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 91. Through human resources planning, organizations strive for a proper balance between demand considerations and supply considerations. a. True b. False a. True b. False ANSWER: True 92. Decisions about employee layoffs are usually based on seniority and/or performance. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 94. Attrition is the fastest way to achieve workforce reduction. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: False 95. In unionized firms, layoffs are typically based on performance. a. True b. False a. True b. False ANSWER: False 96. Attrition and early retirement are means for organizations to reduce excess labour. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 98. The use of part-time employees creates a problem of labour costs at fast-food restaurants. a. True b. False a. True b. False ANSWER: False 99. Over time, organizations may try to reduce their workforce by relying on attrition. a. True b. False a. True b. False ANSWER: False 100. Severance pay is a lump-sum payment given to terminated employees. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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101. Benchmarking is the process of comparing the organization‘s processes and practices with those of other companies. a. True b. False a. True b. False ANSWER: True 102. Internal fit (or alignment) means that HR practices are aligned with one another in a mutually reinforcing configuration. a. True b. False a. True b. False ANSWER: True 103. Describe how human resources planning is integrated with strategic planning.

ANSWER: 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.

ANSWER: 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.

ANSWER: (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, fulltime 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. Explain how the balanced scorecard can be used by HR professionals in measuring a firm‘s strategic alignment?

ANSWER: The balanced scorecard (BSC) can be used by HR professionals to map a firm‘s strategy to ensure strategic Copyright Cengage Learning. Powered by Cognero.

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alignment. The BSC is a framework that helps managers translate their firm‘s strategic goals into operational objectives. The model has four related cells: (1) financial, (2) customer, (3) processes, and (4) learning.

The logic behind BSC is firmly rooted in HRM. People management and learning help organizations improve their internal processes and provide excellent customer service. Internal processes—product development, service, and the like—are critical for creating customer satisfaction and loyalty; they are also important for ensuring productivity to contain costs for better financial performance. Customer value creation, in turn, drives up revenues, which enhances profitability.

At Starbucks, for example, key metrics can be used to help translate strategic goals to operational imperatives.

For instance, under customer metrics, Starbucks might look at the percentage of repeat customers, the number of new customers, and growth rate. Under people metrics, HR professionals might measure the numbers of suggestions provided by employees, participation in Starbucks‘ stock-sharing program, employee turnover, and training hours spent. Each of these cells links vertically. HR management issues such as rewards, training, and suggestions can be linked to efficient processes (e.g., brewing the perfect cup, delivering top-notch customer service). These processes then lead to better customer loyalty and growth. Growth and customer loyalty in turn lead to higher profitability and market value.

Chapter_3_Equity_and_Diversity_in_Human_Resources_Management

1. Which of the following is the fastest growing demographic group in Canada? a. visible minorities b. Aboriginals c. women d. persons with disabilities ANSWER: 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. 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 ANSWER: b 3. Which group is projected to be one-third of all Canadians by 2036? a. visible minorities b. women c. Aboriginals d. persons with disabilities ANSWER: a 4. 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.

ANSWER: a 5. In comparative terms, what is the median pay for Aboriginals in Canada? a. more than the median pay for the Canadian population b. less than the median pay for the Canadian population c. about the same as the median pay for the Canadian population Copyright Cengage Learning. Powered by Cognero.

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d. about the same as the mean pay for the Canadian population ANSWER: b 6. How does representation of the four designated groups in the labour force compare with the Canadian population? a. All four groups are underrepresented in the labour force. b. Only women are underrepresented in the labour force. c. Only Aboriginals are underrepresented in the labour force. d. Women are overrepresented in the labour force.

ANSWER: a 7. 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 ANSWER: a 8. In Canada, what is a key characteristic of the occupations in which 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.

ANSWER: d 9. 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 ANSWER: c 10. Which of the following are two factors that compound barriers to employment for Aboriginals? a. low educational attainment and lack of job experience b. merit pay and cultural values c. teamwork and lack of job experience d. cultural values and teamwork ANSWER: a 11. ―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 ANSWER: c 12. 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.

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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.

ANSWER: c 13. 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.

ANSWER: d 14. Which organization is responsible for investigating complaints of violations of the Canadian Human Rights Act? a. the Employment Equity Commission b. the Canadian Human Rights Association c. the Canadian Human Rights Commission d. the Canadian Labour Relations Board ANSWER: c 15. 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.

ANSWER: b 16. Green Acres 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 ANSWER: c 17. 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 ANSWER: a 18. 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.

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d. Equality is about fair pay for entire occupations; equity is required by law in every jurisdiction in Canada.

ANSWER: a 19. Which of these jurisdictions has no pay equity legislation or formal pay equity policy? a. Quebec b. Newfoundland and Labrador c. Manitoba d. Alberta ANSWER: d 20. 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 ANSWER: b 21. 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 ANSWER: d 22. 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 ANSWER: c 23. 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 ANSWER: 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.

ANSWER: a Copyright Cengage Learning. Powered by Cognero.

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25. 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 ANSWER: a 26. What is another term used for unintentional discrimination by organizations? a. overt discrimination b. job-related discrimination c. systemic discrimination d. personal discrimination ANSWER: c 27. Which of the following is done during the data collection phase for employment equity purposes? a. voluntary self-identification b. mandatory self-identification c. surveys of similar employers d. surveys of supervisors ANSWER: a 28. 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 ANSWER: d 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. 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 ANSWER: a 30. 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 ANSWER: a 31. 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 ANSWER: a 32. 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 Copyright Cengage Learning. Powered by Cognero.

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d. following the uniform guidelines for accommodation ANSWER: b 33. 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 ANSWER: c 34. 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 ANSWER: b 35. 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 ANSWER: a 36. 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 ANSWER: a 37. 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 ANSWER: d 38. 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.

ANSWER: b 39. An effective sexual harassment policy includes all of the following EXCEPT which one? a. a comprehensive, well-publicized, organization-wide policy on sexual harassment Copyright Cengage Learning. Powered by Cognero.

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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 ANSWER: d 40. 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 ANSWER: a 41. 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 ANSWER: d 42. 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 ANSWER: b 43. 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 ANSWER: d 44. 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.

ANSWER: d 45. 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 Copyright Cengage Learning. Powered by Cognero.

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ANSWER: d 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.

46. 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 ANSWER: c 47. 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.

ANSWER: d 48. 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.

ANSWER: b 49. 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 ANSWER: c 50. 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 Copyright Cengage Learning. Powered by Cognero.

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c. how to incorporate short-term diversity initiatives d. employment equity legislation ANSWER: a 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.

51. 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.

ANSWER: a 52. 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 ANSWER: a 53. 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 ANSWER: d 54. 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 a. True b. False ANSWER: True 55. Women are underrepresented as technicians and semi-skilled professionals. a. True b. False a. True b. False ANSWER: True 56. Visible minorities are the fastest growing of the four designated employment equity groups in Canada. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: True 57. Recent statistics indicate that visible minorities are lacking in educational qualifications, which has resulted in their high unemployment rates. a. True b. False a. True b. False ANSWER: False 58. Equity implies fairness and impartiality. a. True b. False a. True b. False ANSWER: True 59. Human rights legislation is the cornerstone of equity legislation. a. True b. False a. True b. False ANSWER: True 60. The Charter of Rights and Freedoms guarantees the right to bargain collectively and to strike. a. True b. False a. True b. False ANSWER: False 61. Federal law prohibits discrimination based on sexual orientation. a. True b. False a. True b. False ANSWER: True 62. Every workplace in Canada is covered by human rights legislation. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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63. 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 a. True b. False ANSWER: False 64. Prohibited grounds of discrimination in employment vary between provinces. a. True b. False a. True b. False ANSWER: True 65. Prohibited grounds of discrimination in employment include race, religion, sex, age, national or ethnic origin, disability, and marital status. a. True b. False a. True b. False ANSWER: True 66. Employers are permitted to discriminate if there is a bona fide occupational qualification. a. True b. False a. True b. False ANSWER: True 67. The Charter guarantees certain rights for all Canadians. a. True b. False a. True b. False ANSWER: True 68. An example of a bona fide occupational qualification (BFOQ) for age is the argument that a younger employee will project a better, more energetic image to the public. a. True b. False a. True b. False ANSWER: False 69. 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.

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a. True b. False a. True b. False ANSWER: True 70. The Canadian Human Rights Commission (CHRC) must accept all complaints EXCEPT those not filed within a prescribed period of time. a. True b. False a. True b. False ANSWER: False 71. 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 a. True b. False ANSWER: True 72. 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 a. True b. False ANSWER: True 73. Pay equity means equal pay for men and women. a. True b. False a. True b. False ANSWER: False 74. Pay equity legislation has ensured that there is no pay gap between men and women. a. True b. False a. True b. False ANSWER: False 75. Pay equity is based on the principle of equal pay for work of comparable value. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: True 76. Implementation of pay equity is based on comparing the work of female and male employees doing the same job. a. True b. False a. True b. False ANSWER: False 77. The federal pay equity legislation applies to all employees in Canada. a. True b. False a. True b. False ANSWER: False 78. The Employment Equity Act of 1995 only affects employers under federal jurisdiction. a. True b. False a. True b. False ANSWER: True 79. 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 a. True b. False ANSWER: False 80. 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 a. True b. False ANSWER: True 81. Employment equity involves the identification and removal of systemic barriers to employment opportunities that adversely affect the four designated groups. a. True b. False a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True 82. Employment equity involves the implementation of special measures and reasonable accommodation. a. True b. False a. True b. False ANSWER: True 83. Federally regulated employers are required to conduct a workforce analysis to identify underrepresentation of members of designated groups. a. True b. False a. True b. False ANSWER: True 84. Firms under provincial jurisdiction with 100 or more employees that wish to bid for goods and services contracts with the federal government valued at $1,000,000 or more must implement an employment equity plan. a. True b. False a. True b. False ANSWER: True 85. 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 a. True b. False ANSWER: True 86. Employment equity involves changing the composition of an organization‘s workforce to better reflect wider demographics. a. True b. False a. True b. False ANSWER: True 87. An employment equity program is a process requiring senior management commitment and involvement. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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88. 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 a. True b. False ANSWER: True 89. The labour movement in Canada has generally been opposed to the concept of employment equity. a. True b. False a. True b. False ANSWER: False 90. The first step in the implementation of employment equity is data collection and analysis. a. True b. False a. True b. False ANSWER: False 91. The development of an external workforce profile is an important tool in employment equity planning. a. True b. False a. True b. False ANSWER: False 92. 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 a. True b. False ANSWER: True 93. An employer should try to eliminate unintentional discrimination, but is not legally accountable for such discrimination. a. True b. False a. True b. False ANSWER: False 94. Reasonable accommodation involves making changes to the workplace so that no individual is disadvantaged with Copyright Cengage Learning. Powered by Cognero.

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respect to employment. a. True b. False a. True b. False ANSWER: True 95. 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 a. True b. False ANSWER: True 96. Reasonable accommodation benefits all employees. a. True b. False a. True b. False ANSWER: True 97. 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 a. True b. False ANSWER: True 98. Many employment barriers are hidden. a. True b. False a. True b. False ANSWER: True 99. 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 a. True b. False ANSWER: True 100. Employers are guilty of sexual harassment if they permit their customers to sexually harass their employees. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: True 101. The main cost of sexual harassment in the workplace is legal settlements a. True b. False a. True b. False ANSWER: False 102. The concept of harassment has been broadened to include bullying in at least one provincial jurisdiction. a. True b. False a. True b. False ANSWER: True 103. The optimization of an organization‘s multicultural workforce in order to reach business objectives is known as diversity management. a. True b. False a. True b. False ANSWER: True 104. Managing diversity is primarily a moral issue. a. True b. False a. True b. False ANSWER: False 105. 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 a. True b. False ANSWER: False 106. Diversity initiatives may be directly linked to the business objectives of top management. a. True b. False a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True 107. 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 a. True b. False ANSWER: True 108. Diversity initiatives are most successful when they are perceived to be human resources programs. a. True b. False a. True b. False ANSWER: False 109. A crucial element of any diversity management initiative is proper training across the organization. a. True b. False a. True b. False ANSWER: True 110. What are some of the disadvantages in employment faced by the four designated groups in Canada?

ANSWER: 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.

111. What are the steps involved in filing and investigating a human rights complaint?

ANSWER: 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 Copyright Cengage Learning. Powered by Cognero.

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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.

112. What is systemic discrimination?

ANSWER: Systemic discrimination refers to the exclusion of members of certain groups through the application of employment policies or practices based on criteria that are neither job related nor required for the safe and efficient operation of the business. In many instances, these policies may appear to be ―neutral‖ but they have negative effects on specific groups. For instance, a height requirement of 5'8" may appear to be neutral and objective, but it may have a negative effect on women and some racial groups.

Systemic discrimination can create legal concerns for an organization. Many employment barriers are unintentionally hidden in the rules, procedures, and even facilities that employers provide to manage their human resources. These barriers include, among others, physical access that restricts those who are mobility challenged and recruitment practices that limit applications from designated groups (e.g., word of mouth).

Inequity can result if these barriers encourage or discourage individuals based on their membership in certain groups rather than on their ability to do a job that the employer needs done.

Chapter_4_Job_Analysis_and_Work_Design

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 Copyright Cengage Learning. Powered by Cognero.

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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. In determining the pay for employees, what is the starting point in evaluating the relative worth of a job? a. a job analysis b. a market analysis c. a person analysis d. a skills analysis ANSWER: a 8. What is the best source of criteria for evaluating employee job performance? a. job descriptions b. balanced scorecards c. training programs d. special assignments 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 Copyright Cengage Learning. Powered by Cognero.

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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 type of analysis can be used to help determine the best processes, types, and mix of jobs, and how they should ideally be organized to execute the firm‘s mission? a. a job analysis b. a Markov analysis c. a workflow analysis d. a SWOT analysis ANSWER: c 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 a method used to do job analysis? a. workflow analysis b. stacked incident method c. position analysis questionnaire d. divisional job analysis ANSWER: c 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 Copyright Cengage Learning. Powered by Cognero.

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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 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.

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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. Which job analytic method focuses on what workers do with regard to ―information, people, and things‖? a. functional job analysis b. position analysis questionnaire c. critical incidents technique d. task inventory analysis ANSWER: a 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 Copyright Cengage Learning. Powered by Cognero.

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c. adding more responsibility to jobs ANSWER: c

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d. improving leadership

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.

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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. Which of the following is another term for employee involvement groups? a. project teams b. cross-functional teams c. synergistic groups d. quality circles ANSWER: d 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. What type of team is formed by management to resolve a major problem immediately? a. a self-directed team b. a project team c. a process-improvement team d. a task force team ANSWER: d 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?

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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–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.

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ANSWER: c 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.

51. 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. 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. 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. 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. 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 Scenario 4.2 Copyright Cengage Learning. Powered by Cognero.

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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.

56. 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. 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 ANSWER: d 58. 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 59. A job consists of different duties and responsibilities performed by one person. a. True b. False a. True b. False ANSWER: False 60. A statement of the different duties, tasks, and responsibilities of a job is known as a job description. a. True b. False a. True b. False ANSWER: True 61. A job specification is a statement of the knowledge, skills, and abilities required of the person performing the job. a. True b. False a. True b. False ANSWER: True 62. Discrepancies between knowledge, skills, abilities, and other factors (KSAOs) and job requirements provide clues to Copyright Cengage Learning. Powered by Cognero.

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training needs. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 64. A workflow analysis is a type of job analysis. a. True b. False a. True b. False ANSWER: False 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 a. True b. False ANSWER: False 66. Job analysis is an important step toward ensuring an organization‘s HR practices are valid and job-related. a. True b. False a. True b. False ANSWER: True 67. To promote uniformity across organizations, the National Occupational Classification should be used as the sole source for classifying jobs. a. True b. False a. True b. False ANSWER: False 68. The critical incident method focuses on employee behaviours critical to job success. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: True 69. Diaries can be used to collect information for a job analysis. a. True b. False a. True b. False ANSWER: True 70. Common methods of analyzing jobs include interviews, questionnaires, observation, and diaries. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: False 72. The position analysis questionnaire (PAQ) is a qualitative job analysis method. a. True b. False a. True b. False ANSWER: False 73. The competency-based approach to job analysis focuses on standard job duties, tasks, and the like. a. True b. False a. True b. False ANSWER: False 74. The objective of the critical incident method is to identify critical job tasks. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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75. The job title is of psychological importance as well as descriptive. a. True b. False a. True b. False ANSWER: True 76. The standard format for job descriptions is contained in the Dictionary of Occupational Titles. a. True b. False a. True b. False ANSWER: False 77. Relying on generic job descriptions tends to reduce role ambiguity. a. True b. False a. True b. False ANSWER: False 78. Most job descriptions include a job title, a job identification section, and a job duties section. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: False 80. The functional job analysis approach utilizes an inventory of the various types of work activities that can constitute any job. a. True b. False a. True b. False ANSWER: True 81. When writing a job description, it is essential to use statements that are terse, direct, and simply worded. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: False 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 a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 85. Job design considers organizational objectives, industrial engineering considerations, ergonomic concerns, and job descriptions. a. True b. False a. True b. False ANSWER: False 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 a. True b. False ANSWER: True 87. Job enrichment is a way of increasing employee empowerment. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: True 88. Job enrichment can improve employee performance in cases of dissatisfaction with pay and benefits. a. True b. False a. True b. False ANSWER: False 89. Job enrichment incorporates the behavioural needs of employees into their jobs. a. True b. False a. True b. False ANSWER: True 90. Job design is an outgrowth of job analysis. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 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 a. True b. False ANSWER: False 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 Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 95. Empowerment encourages employees to become innovators and managers of their own work. a. True b. False a. True b. False ANSWER: True 96. Employee empowerment succeeds when the culture of the organization is open and receptive to change. a. True b. False a. True b. False ANSWER: True 97. Industrial engineering is a technique of job design that is concerned with efficiency and behavioural considerations of a job. a. True b. False a. True b. False ANSWER: False 98. All group-based work techniques have two things in common: enhancing communication and increasing synergy. a. True b. False a. True b. False ANSWER: False 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 a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False 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 a. True b. False ANSWER: True 101. Industrial engineering is concerned with analyzing work methods and establishing time standards. a. True b. False a. True b. False ANSWER: True 102. Adjustments in work schedules are considered to be a part of job analysis and job design. a. True b. False a. True b. False ANSWER: False 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 a. True b. False ANSWER: True 104. Employees participate in flextime when they do entirely different jobs on a rotating schedule. a. True b. False a. True b. False ANSWER: False 105. Job sharing is effective for employees who desire to phase in to retirement. a. True b. False a. True b. False ANSWER: True 106. Telecommuting is the use of personal computers, networks, and other communications technology to do work in the Copyright Cengage Learning. Powered by Cognero.

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home that is traditionally done in the workplace. a. True b. False a. True b. False ANSWER: True 107. What is the role of job analysis in HRM, and how does it relate to other HRM functions?

ANSWER: 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. How can an organization enrich the jobs of employees?

ANSWER: Jobs can be enriched through efforts that make work more rewarding or satisfying by adding more meaningful tasks to an employee‘s job. Job enrichment, originally popularized by Frederick Herzberg, is aimed at fulfilling the high motivational needs of employees, such as self-fulfillment and self-esteem, while achieving long-term job satisfaction and performance goals. Jobs can be enriched through vertical expansion by increasing the autonomy and responsibility of employees. Herzberg discussed five factors for enriching jobs and thereby motivating employees: achievement, recognition, growth, responsibility, and performance of the whole job versus only parts of the job. For example, managers can use these five factors to enrich the jobs of employees by • Increasing the level of difficulty and responsibility of the job • Allowing employees to retain more authority and control over work outcomes • Providing unit or individual job performance reports directly to employees • Adding new tasks to the job that require training and growth • Assigning individuals specific tasks, enabling them to use their particular competencies or skills These factors allow employees to assume a greater role in the decision-making process and become more involved in planning, organizing, directing, and controlling their own work. Vertical job enrichment can also be accomplished by organizing workers into teams and giving these teams greater authority for selfmanagement.

109. Discuss the job characteristics that motivate employees.

ANSWER: 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 Copyright Cengage Learning. Powered by Cognero.

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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?

ANSWER: 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_5_Expanding_the_Talent_Pool_Recruitment_and_Careers

1. 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 ANSWER: d 2. Which of the following can be used to best identify candidates for internal recruitment and promotion? a. a Markov analysis b. a 9-box grid c. social media d. employee referrals ANSWER: b 3. What is another term for executive search firms? a. headhunters b. re-recruiters c. passive job seekers d. active job seekers ANSWER: a 4. 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 ANSWER: b Copyright Cengage Learning. Powered by Cognero.

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5. 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 ANSWER: a 6. 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.

ANSWER: d 7. 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 ANSWER: d 8. 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 ANSWER: a 9. 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 ANSWER: c 10. 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 ANSWER: d 11. Which of the following groups is most likely to respond to advertisements placed through social media? a. Generation X b. Generation Y Copyright Cengage Learning. Powered by Cognero.

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d. baby boomers

12. 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 ANSWER: a 13. 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 ANSWER: c 14. 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.

ANSWER: b 15. 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 ANSWER: d 16. 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 ANSWER: c 17. 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.

ANSWER: a 18. 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.

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ANSWER: c 19. What is a good way to cast a wide net for diverse applicants in a certain region? a. employee referrals b. job fairs c. re-recruiting d. nepotism ANSWER: b 20. What is the practice of hiring relatives called? a. insourcing b. nepotism c. favouritism d. inbreeding ANSWER: b 21. Hiring halls are associated with which type of work environment? a. unionized b. high technology c. stock trading d. educational ANSWER: a 22. 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.

ANSWER: d 23. 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 ANSWER: c 24. 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 ANSWER: b 25. 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.

ANSWER: d 26. 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 ANSWER: a Copyright Cengage Learning. Powered by Cognero.

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27. 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 ANSWER: a 28. 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 ANSWER: d 29. 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 ANSWER: d 30. 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 ANSWER: d 31. 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 ANSWER: c 32. What is the first stage in the career stage model? a. early childhood b. organizational entry c. preparation for work d. early career ANSWER: c 33. What type of individual is most associated with a boundaryless career? a. retiree b. someone highly committed to an organization Copyright Cengage Learning. Powered by Cognero.

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c. someone who does not take risks d. self-directed ―free agents‖ ANSWER: d 34. 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 ANSWER: d 35. 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.

ANSWER: b 36. 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 ANSWER: c 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.

ANSWER: b 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. outplacement d. relocation ANSWER: c 39. 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.

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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.

ANSWER: d 40. 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 ANSWER: c 41. 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 ANSWER: d 42. 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 ANSWER: a 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 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.

ANSWER: a 44. Which of these types of program can be used to retain high potential employees? a. a fast-track program b. a referral program c. a counselling program d. an outplacement program ANSWER: a 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 Copyright Cengage Learning. Powered by Cognero.

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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.

45. 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 ANSWER: a 46. 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 ANSWER: c 47. 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 ANSWER: b 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.

48. 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 ANSWER: d 49. 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 ANSWER: c Copyright Cengage Learning. Powered by Cognero.

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50. 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 ANSWER: a 51. A recruiting strategy that works for one form might not work for another. a. True b. False a. True b. False ANSWER: True 52. The effectiveness and attractiveness of recruiters is often a main reason why applicants select one organization over another. a. True b. False a. True b. False ANSWER: True 53. 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 a. True b. False ANSWER: True 54. Excessive reliance upon internal sources can create the risk of employee cloning. a. True b. False a. True b. False ANSWER: True 55. In many cases, hiring someone from outside is seen as essential for revitalizing the organization. a. True b. False a. True b. False ANSWER: True 56. The effectiveness of recruitment strategies can change over time. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: True 57. When unemployment levels are low, employers may need to use more sources of recruitment. a. True b. False a. True b. False ANSWER: True 58. The size of an organization can affect who performs the recruitment function. a. True b. False a. True b. False ANSWER: True 59. A tight labour market is one with low unemployment. a. True b. False a. True b. False ANSWER: True 60. Recruiters usually have minimal influence on an applicant‘s decision to work for one organization or another. a. True b. False a. True b. False ANSWER: False 61. A recruiter‘s job is to ―sell‖ applicants on the organization, but they have no influence on their decision. a. True b. False a. True b. False ANSWER: False 62. Using the Internet is an inexpensive way to brand and recruit. a. True b. False a. True b. False ANSWER: True 63. Human resources information systems can be used to predict the career paths of employees.

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a. True b. False a. True b. False ANSWER: True 64. Online games are not effective in branding. a. True b. False a. True b. False ANSWER: False 65. Skill inventories are an important tool for succession planning. a. True b. False a. True b. False ANSWER: True 66. Placement is the process of attempting to locate and encourage potential applicants to apply for existing or anticipated job openings. a. True b. False a. True b. False ANSWER: False 67. Employee referrals are associated with high employee turnover rates. a. True b. False a. True b. False ANSWER: False 68. There is a correlation between the accuracy and completeness of an advertisement and recruitment success. a. True b. False a. True b. False ANSWER: True 69. Often, applicants will respond to an advertisement even if they don‘t meet the job requirements. a. True b. False a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True 70. The most commonly used search tactic for job seekers is Internet recruiting. a. True b. False a. True b. False ANSWER: True 71. Applicants who find employment through an employee referral tend to be a problem because they tend to quit more often. a. True b. False a. True b. False ANSWER: False 72. Nepotism is a problem with executive search firms. a. True b. False a. True b. False ANSWER: False 73. Yield ratios are used to assess the effectiveness of recruitment sources. a. True b. False a. True b. False ANSWER: True 74. 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 a. True b. False ANSWER: True 75. For technical and managerial positions, community colleges are generally the primary source of recruitment. a. True b. False a. True b. False ANSWER: False 76. Public employment agencies work closely with private employment agencies.

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a. True b. False a. True b. False ANSWER: False 77. Private employment agencies often specialize in particular occupations or professions. a. True b. False a. True b. False ANSWER: True 78. Labour unions can be a recruiting source for some professional job openings. a. True b. False a. True b. False ANSWER: True 79. The realistic job preview informs applicants about all aspects of the job, including both its desirable and its undesirable facets. a. True b. False a. True b. False ANSWER: True 80. Realistic job previews reduce turnover, but also reduce job acceptance rates. a. True b. False a. True b. False ANSWER: True 81. Yield ratios can help indicate which recruitment sources are most effective at producing qualified job candidates. a. True b. False a. True b. False ANSWER: True 82. Yield ratios should be calculated for each recruiting source. a. True b. False a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True 83. An assessment centre is a place where people are evaluated. a. True b. False a. True b. False ANSWER: False 84. 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 a. True b. False ANSWER: True 85. Career management involves a good deal of analysis and planning. a. True b. False a. True b. False ANSWER: True 86. An applicant tracking system can help a firm automatically track and calculate recruitment statistics. a. True b. False a. True b. False ANSWER: True 87. If career development is to succeed, it must receive the complete support of top management. a. True b. False a. True b. False ANSWER: True 88. 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 a. True b. False ANSWER: True 89. Some career development paths provide new assignments that increase skill areas and assignments in different Copyright Cengage Learning. Powered by Cognero.

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functional areas. a. True b. False a. True b. False ANSWER: True 90. The lines of advancement for an individual within an organization are known as job paths. a. True b. False a. True b. False ANSWER: False 91. Employability refers to the skills and support needed to find a job. a. True b. False a. True b. False ANSWER: True 92. Transfers usually provide the same motivational value as promotions. a. True b. False a. True b. False ANSWER: False 93. Outplacement services help terminated employees find a job elsewhere. a. True b. False a. True b. False ANSWER: True 94. 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 a. True b. False ANSWER: False 95. A dual career path is for couples who are both working professionals in the same field. a. True b. False a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False 96. Career planning workbooks are popular means of helping employees identify their potential. a. True b. False a. True b. False ANSWER: True 97. Fast-track programs were initiated in some organizations as a way to retain young managers with high potential. a. True b. False a. True b. False ANSWER: True 98. Mentoring functions can be divided into two broad categories: (1) technical development and (2) career planning. a. True b. False a. True b. False ANSWER: False 99. Mentoring is one important indicator of management support in career development. a. True b. False a. True b. False ANSWER: True 100. Mentoring programs develop over time and on an informal basis. a. True b. False a. True b. False ANSWER: True 101. What are the advantages and disadvantages of internal recruitment?

ANSWER: 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 Copyright Cengage Learning. Powered by Cognero.

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the current workforce.

102. What can organizations do to retain top talent?

ANSWER: Organizations can retain top talent by offering competitive pay and benefits. While pay is not always the top reason for employees quitting, competitive compensation packages, including benefits, can help to retain employees. Many organizations are becoming creative with the benefits they offer. For instance, Google offers employees free massages and rides back and forth to work. Some organizations are attracting and retaining employees by offering them student-loan repayment assistance. Programs such as these are helping companies retain Generation Z and millennial workers, who tend to switch employers frequently.

But for many firms, especially smaller ones, matching pay and benefits such as these isn‘t possible. Perks that don‘t cost a lot can go a long way toward retaining employees though. Flextime, telecommuting, relaxed dress codes or no dress codes, summer hours, and modest performance bonuses are examples. Requiring employees to shut off their mobile phones after hours is another work–life balance perk firms are increasingly giving their employees.

Factors other than pay and benefits also prompt employees to quit: They quit their jobs because they think their input isn‘t valued, they were a poor fit for the job in the first place, or they have too few growth and advancement opportunities.

The Carnegie study found that leadership is the key reason for turnover. Managers and leaders have to demonstrate interest in and empathy toward their employees. They also need to help employees grow and develop.

Some firms conduct ―stay‖ interviews with long-time employees to determine why they have remained with the firm for as long as they have. What do they like about it, and what needs improving? Organizations can then use that information to develop retention strategies.

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: 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.

Chapter_6_Employee_Selection

1. 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 ANSWER: a 2. 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?

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a. a hit c. a poor prediction rate ANSWER: b

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b. a miss d. an opportunity cost

3. What is a key drawback of values-based hiring? a. It increases selection ―misses.‖ b. It is associated with a large volume of lawsuits. c. It can result in a lack of diversity. d. It increases opportunity costs.

ANSWER: c 4. 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.

ANSWER: d 5. 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 ANSWER: b 6. What is a key purpose of ―name-blind‖ resumes? a. to align them with organizational pay systems b. to help stop unconscious bias c. to prevent hacking d. to improve consistency ANSWER: b 7. 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. predictability b. validity c. reliability d. accuracy ANSWER: b 8. 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 ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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9. 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 ANSWER: b 10. 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 ANSWER: b 11. 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 ANSWER: c 12. What type of interview is associated with open-ended questions? a. a structured interview b. a standardized interview c. a nondirective interview d. a situational interview ANSWER: c 13. 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 ANSWER: d 14. 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 ANSWER: b 15. 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 ANSWER: a 16. 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 Copyright Cengage Learning. Powered by Cognero.

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d. a closed response interview question ANSWER: c 17. 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 ANSWER: b 18. 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.

ANSWER: c 19. 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.

ANSWER: a 20. 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 ANSWER: b 21. What type of employment test measures ―general intelligence‖? a. a work sample test b. an assessment test c. a structured ability test d. a cognitive ability test ANSWER: d 22. 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 ANSWER: c 23. The Myers-Briggs Type Indicator (MBTI) is an example of what type of employment test? a. work assessment test b. cognitive ability test Copyright Cengage Learning. Powered by Cognero.

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c. biodata test ANSWER: d

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d. personality test

24. 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.

ANSWER: c 25. 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 ANSWER: a 26. 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 ANSWER: c 27. 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 ANSWER: c 28. 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 ANSWER: c 29. 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 ANSWER: c 30. 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 Copyright Cengage Learning. Powered by Cognero.

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ANSWER: a 31. 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.

ANSWER: a 32. 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 ANSWER: c 33. 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 ANSWER: b 34. 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 ANSWER: c 35. 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 ANSWER: d 36. Which of these statements is a good description of content validity? a. The selection instrument looks like actual work samples. b. Performance on the test is related to work performance. c. Two or more raters concur on the validity of the instrument. d. A battery of the tests is administered to a different sample of people.

ANSWER: a Copyright Cengage Learning. Powered by Cognero.

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37. 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 ANSWER: b 38. 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 ANSWER: d 39. 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.

ANSWER: c 40. Intelligence, mechanical comprehension, and anxiety are examples of which of the following? a. job requirements b. constructs c. theories d. personality traits ANSWER: b 41. 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 ANSWER: b 42. 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 ANSWER: c 43. 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 ANSWER: c 44. 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?

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a. the yield ratio c. the base ratio ANSWER: b

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b. the selection ratio d. the validity coefficient

45. 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.

ANSWER: a 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.

46. 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 ANSWER: c 47. 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 ANSWER: b 48. 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 ANSWER: a 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 Copyright Cengage Learning. Powered by Cognero.

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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.

49. 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 ANSWER: b 50. 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 ANSWER: d 51. 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 ANSWER: c 52. 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 a. True b. False ANSWER: False 53. If an organization‘s selection procedures yield comparable data over a period of time, the procedures are valid. a. True b. False a. True b. False ANSWER: False 54. Validity refers to what a selection procedure measures and how well it measures it. a. True b. False a. True b. False ANSWER: True 55. Research suggests that employers lose a majority of discrimination lawsuits. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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56. Application forms should always require relevant dates, including date of birth. a. True b. False a. True b. False ANSWER: False 57. Applicants who ―whiten‖ their names in their resumes stand a better chance to get called for interviews. a. True b. False a. True b. False ANSWER: True 58. Although many organizations are encouraging applicants to apply for jobs online, this practice slows down the application process. a. True b. False a. True b. False ANSWER: False 59. Online applications can speed up the selection process, combine information, and disseminate promising leads to hiring managers more efficiently. a. True b. False a. True b. False ANSWER: True 60. Although widely used, employment interviews pose potential concerns about validity. a. True b. False a. True b. False ANSWER: True 61. Data obtained from nondirective interviews are difficult to validate. a. True b. False a. True b. False ANSWER: True 62. The situational interview is a variation of the unstructured interview. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: False 63. A situational interview asks the applicant what he or she actually did in a given situation. a. True b. False a. True b. False ANSWER: False 64. Situational interviews ask applicants how they would respond, while behavioural description interviews ask applicants how they did respond a. True b. False a. True b. False ANSWER: False 65. Behavioural description interviews are based on hypothetical situations. a. True b. False a. True b. False ANSWER: False 66. ―Tell me about the last time you disciplined an employee‖ could be a behavioural description interview question. a. True b. False a. True b. False ANSWER: True 67. ―Tell me more about your experiences on your last job‖ is an example of a nondirective interview question. a. True b. False a. True b. False ANSWER: True 68. The premise of a behavioural interview is that ―past performance is the best predictor of future performance.‖ a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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69. Structured interviews have standardized questions. a. True b. False a. True b. False ANSWER: True 70. HRM specialists have found that panel interviews lead to higher reliability and faster decision times than one-to-one interviews. a. True b. False a. True b. False ANSWER: True 71. Video interviews have the advantages of speed and cost-effectiveness. a. True b. False a. True b. False ANSWER: True 72. Hypothetical incidents are used in situational interviews. a. True b. False a. True b. False ANSWER: True 73. Employers are required by law to provide references for former employees. a. True b. False a. True b. False ANSWER: False 74. Written letters of reference are very valid in the selection of employees. a. True b. False a. True b. False ANSWER: False 75. Credit checks are the most common form of reference check. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: False 76. The federal government relies extensively on employment testing in the selection process. a. True b. False a. True b. False ANSWER: True 77. Aptitude tests measure what a person knows or can do right now. a. True b. False a. True b. False ANSWER: False 78. The Scholastic Aptitude Test (SAT) is an example of a cognitive ability test. a. True b. False a. True b. False ANSWER: True 79. Since biographical information blanks rarely have obviously right or wrong answers, they are difficult to fake. a. True b. False a. True b. False ANSWER: True 80. Job sample tests require the applicant to perform tasks that are part of the work required on the job. a. True b. False a. True b. False ANSWER: True 81. Personality tests measure such things as agreeableness, extroversion, and openness to experience. a. True b. False a. True b. False ANSWER: True 82. Conscientiousness refers to the degree to which someone is trusting, amiable, cooperative, and flexible.

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a. True b. False a. True b. False ANSWER: False 83. In most instances, employers can legally use polygraph tests to screen applicants. a. True b. False a. True b. False ANSWER: False 84. Paper-and-pencil tests can be used to measure cognitive ability. a. True b. False a. True b. False ANSWER: True 85. Human rights legislation severely limits the types of medical inquiries and examinations that employers may use. a. True b. False a. True b. False ANSWER: True 86. Medical examinations are usually conducted before an offer of employment is made. a. True b. False a. True b. False ANSWER: False 87. Drug testing is used much more frequently in Canada than in the United States. a. True b. False a. True b. False ANSWER: False 88. 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 a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True 89. Predictive validity is assessed when the test scores of job applicants are held against the performance data for existing employees. a. True b. False a. True b. False ANSWER: False 90. 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 a. True b. False ANSWER: True 91. Criterion-related validity is the extent to which a selection tool predicts or correlates with important elements of work behaviour. a. True b. False a. True b. False ANSWER: True 92. Concurrent validity involves testing applicants and obtaining criterion data after they have been on the job for some indefinite period. a. True b. False a. True b. False ANSWER: False 93. Predictive and concurrent validity are determined by comparing test scores with supervisor performance ratings. a. True b. False a. True b. False ANSWER: True 94. If a work sample test includes major job functions and predicts job success, it has content validity. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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95. The closer the content of the selection instrument to actual work samples or behaviours, the higher the content validity. a. True b. False a. True b. False ANSWER: True 96. Personality tests measure disposition and temperament. a. True b. False a. True b. False ANSWER: True 97. 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 a. True b. False ANSWER: False 98. Measuring construct validity requires linking a psychological test to job performance. a. True b. False a. True b. False ANSWER: True 99. It is much easier to measure what individuals can do than what they will do. a. True b. False a. True b. False ANSWER: True 100. Strategies for selecting managerial and technical people are relatively similar. a. True b. False a. True b. False ANSWER: False 101. In the clinical approach to decision making in employee selection, decision makers review all the data on the applicants.

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a. True b. False a. True b. False ANSWER: True 102. 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 a. True b. False ANSWER: True 103. Person–organization fit has become more of a focus in firms that need teamwork and flexibility. a. True b. False a. True b. False ANSWER: True 104. In large organizations, supervisors are usually responsible for making job offers and notifying applicants of selection decisions. a. True b. False a. True b. False ANSWER: False 105. Define the concepts of reliability and validity.

ANSWER: 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. Compare and contrast the following four interview approaches: (1) nondirective interview, (2) structured interview, (3) situational interview, and (3) behavioural description interview.

ANSWER: 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 Copyright Cengage Learning. Powered by Cognero.

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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 jobrelated 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.

107. Compare and contrast the clinical and statistical approaches to decision making in employee selection.

ANSWER: In the clinical approach to decision making, those making the selection decision review all the data on the applicants. Then, based on their understanding of the job and what it takes to be successful in that job, they make a decision. Different individuals may arrive at different decisions about an applicant when they use this approach because each evaluator assigns different weights to judge the applicant. A drawback of this approach is that personal biases and stereotypes are frequently covered up by what appear to be rational reasons for either accepting or rejecting a candidate. Moreover, it can lead to a homogeneous workforce because people are often tempted to hire applicants like themselves.

In contrast to the clinical approach, the statistical approach to decision making tends to be more objective. It involves identifying the most valid predictors and weighting them using statistical methods, such as multiple regression. Quantified data, such as scores or ratings from interviews, tests, and other procedures, are then combined according to their weighted value. Individuals with the highest combined scores are selected. A comparison of the clinical approach with the statistical approach in a wide variety of situations has shown that the statistical approach is superior. Although this superiority has been recognized for many decades, the clinical approach continues to be the one most commonly used.

Chapter_7_Training_and_Development

1. 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.

ANSWER: c 2. 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 ANSWER: a 3. What do some large organizations call their top leaders who are responsible for employee training?

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b. Head of Operations d. Chief Human Development Officers

4. Which of the following is a mandatory training program in Canada? a. sensitivity training b. Workplace Hazardous Materials Information System training c. ethics training d. team building training ANSWER: b 5. 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 ANSWER: a 6. 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.

ANSWER: b 7. Which of the following is part of a needs assessment in developing training programs? a. task analysis b. environmental analysis c. analysis of training methods d. analysis of trainee readiness ANSWER: a 8. 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 ANSWER: d 9. 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 ANSWER: b 10. 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 Copyright Cengage Learning. Powered by Cognero.

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ANSWER: a 11. 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 ANSWER: a 12. At which stage in the training program development process are issues such as technological change and globalization considered? a. job analysis b. individual analysis c. task analysis d. organization analysis ANSWER: d 13. 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 ANSWER: d 14. 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.

ANSWER: c 15. In the design of training programs, what should instructional objectives centre on? a. performance b. attitudes c. financial outcomes d. social outcomes ANSWER: a 16. 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 ANSWER: a 17. What type of learning corresponds to ―involve me and I will learn‖? a. modelling b. whole learning c. part learning d. experiential learning ANSWER: d 18. Which technique for training managers emphasizes handling real-life employee problems and receiving immediate feedback? a. the leaderless group b. the management game Copyright Cengage Learning. Powered by Cognero.

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d. behaviour modelling

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 ANSWER: a 20. 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.

ANSWER: a 21. 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 ANSWER: a 22. 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 ANSWER: d 23. 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 ANSWER: b 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.

ANSWER: a 25. 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 Copyright Cengage Learning. Powered by Cognero.

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ANSWER: d 26. 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 ANSWER: b 27. 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 ANSWER: a 28. 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 ANSWER: c 29. 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 ANSWER: c 30. 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 ANSWER: b 31. 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 ANSWER: b 32. 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 ANSWER: d 33. Which of the following is the simplest method to evaluate a training program?

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b. reactions d. results

34. 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.

ANSWER: b 35. 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 ANSWER: a 36. 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 ANSWER: c 37. 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 ANSWER: c 38. 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 ANSWER: c 39. 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 ANSWER: c Copyright Cengage Learning. Powered by Cognero.

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40. 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 ANSWER: a 41. 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 ANSWER: a 42. What is the relationship between orientation and onboarding programs? a. They are the same. b. Onboarding goes beyond orientation. c. Orientation goes beyond onboarding. d. Onboarding is a part of orientation.

ANSWER: b 43. 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.

ANSWER: d 44. 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 ANSWER: c 45. What is the process called when organizations familiarize new employees with the organization, their jobs, and their work units? a. orientation b. performance appraisal c. job assessment d. job appraisal ANSWER: a 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.

46. Refer to Scenario 7.1. Accounting Power Inc. is losing its clients because it did not accurately do which of the following?

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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 ANSWER: c 47. 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 ANSWER: a 48. 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 ANSWER: d 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.

49. 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 ANSWER: b 50. 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 managers c. the absence of well-defined job performance criteria Copyright Cengage Learning. Powered by Cognero.

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d. hands-on experience and opportunities for trainers to build good relationships with new employees ANSWER: d 51. 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.

ANSWER: d 52. Training plays a central role in strengthening the competencies that give organizations their competitive advantage. a. True b. False a. True b. False ANSWER: True 53. Training is oriented towards broadening employees‘ individual skills for future responsibility. a. True b. False a. True b. False ANSWER: False 54. The primary purpose in training employees is to help them get socialized to the organization. a. True b. False a. True b. False ANSWER: False 55. Businesses spend more on informal instruction in training employees than they do on formal instruction. a. True b. False a. True b. False ANSWER: True 56. Most organizations choose and implement training programs based on their overall strategic objectives. a. True b. False a. True b. False ANSWER: False

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57. The systems approach to training involves (1) needs assessment, (2) program delivery, (3) assessment, and (4) evaluation. a. True b. False a. True b. False ANSWER: False 58. The systems approach to training includes four phases: job analysis, job design, implementation, and evaluation. a. True b. False a. True b. False ANSWER: False 59. 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 a. True b. False ANSWER: True 60. A solid training program should begin with effective design. a. True b. False a. True b. False ANSWER: False 61. A competency assessment focuses on the sets of skills and knowledge employees need to be successful. a. True b. False a. True b. False ANSWER: True 62. The three different types of training needs analysis are organizational analysis, job knowledge analysis, and person analysis. a. True b. False a. True b. False ANSWER: False 63. Data such as direct and indirect labour costs and unemployment rates determine an organization‘s training needs. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: False 64. 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 a. True b. False ANSWER: True 65. 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 a. True b. False ANSWER: False 66. In training programs, instructional objectives should be performance-centred. a. True b. False a. True b. False ANSWER: True 67. Trainee readiness refers to both maturity and experience factors in a trainee‘s background. a. True b. False a. True b. False ANSWER: True 68. 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 a. True b. False ANSWER: False 69. Employees in similar jobs usually have similar levels of motivation with respect to learning. a. True b. False a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False 70. Modelling exemplifies how people learn by mimicking other people. a. True b. False a. True b. False ANSWER: True 71. 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 a. True b. False ANSWER: True 72. ―We learn best by watching‖ summarizes the learning principle known as ―modelling.‖ a. True b. False a. True b. False ANSWER: True 73. 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 a. True b. False ANSWER: True 74. Experiential learning is the same as hands-on learning. a. True b. False a. True b. False ANSWER: False 75. Behaviour modification seeks to gradually shape trainee behaviour using reinforcement. a. True b. False a. True b. False ANSWER: True 76. The success of any training effort depends more upon the content of the program than on the teaching skills and Copyright Cengage Learning. Powered by Cognero.

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personal characteristics of those conducting the training. a. True b. False a. True b. False ANSWER: False 77. Training methods all tend to utilize similar learning principles. a. True b. False a. True b. False ANSWER: False 78. Knowledge of the subject is the most critical characteristic that determines instructor effectiveness. a. True b. False a. True b. False ANSWER: False 79. On-the-job training (OJT) is generally regarded as the most effective means of facilitating learning at the workplace, and thus it is the best implemented. a. True b. False a. True b. False ANSWER: False 80. Games are becoming more popular for training purposes. a. True b. False a. True b. False ANSWER: True 81. Internship programs benefit students, but rarely benefit employers. a. True b. False a. True b. False ANSWER: False 82. 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 Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: True 83. Depending on the activities involved, classroom instruction is often referred to as ―self-directed learning.‖ a. True b. False a. True b. False ANSWER: False 84. Most employees prefer the freedom and flexibility of e-learning to traditional classroom training. a. True b. False a. True b. False ANSWER: False 85. The distinction between simulation and simple computer-based training is blurring due to advances in information technology. a. True b. False a. True b. False ANSWER: True 86. Case studies are a useful method of giving participants experience at analyzing and synthesizing facts. a. True b. False a. True b. False ANSWER: True 87. Role-playing consists of assuming the attitudes and behaviour of others, often a supervisor and a subordinate. a. True b. False a. True b. False ANSWER: True 88. Behaviour modelling appears to work in helping managers to interact with employees, introduce change, and handle discipline. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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89. Due to its importance to planning future training initiatives, most organizations go to great lengths to accurately evaluate training programs. a. True b. False a. True b. False ANSWER: False 90. Using participant reaction to evaluate training is the best way to determine training effectiveness. a. True b. False a. True b. False ANSWER: False 91. Many organizations today measure their training in terms of its return on investment. a. True b. False a. True b. False ANSWER: True 92. Benchmarking is concerned with measuring employee retention of training materials at specific points in time. a. True b. False a. True b. False ANSWER: False 93. Orientation is an ongoing process. a. True b. False a. True b. False ANSWER: True 94. Orientation is the formal process of familiarizing new employees with the organization, their job, and their work unit. a. True b. False a. True b. False ANSWER: True 95. Orientation programs stress the ―why‖ rather than the ―what,‖ including the philosophy behind the organization‘s rules. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: True 96. 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 a. True b. False ANSWER: False 97. 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 a. True b. False ANSWER: False 98. Most executives believe that formal orientation programs are effective in helping to retain and motivate employees. a. True b. False a. True b. False ANSWER: True 99. The benefits of an orientation program include lower turnover, improved morale, and facilitation of learning. a. True b. False a. True b. False ANSWER: True 100. 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 a. True b. False ANSWER: False 101. The use of orientation checklists compels a supervisor to be more attentive to each employee. a. True b. False a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True 102. Team building is a relatively simple process. a. True b. False a. True b. False ANSWER: False 103. Behavioural and process skills needed for team training need to be acquired through participative exercises. a. True b. False a. True b. False ANSWER: True 104. Explain the strategic approach to training.

ANSWER: 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.

105. Briefly describe the basic components of behaviour modelling.

ANSWER: Behaviour modelling combines several different training methods and therefore multiple principles of learning. It consists of four basic components: 1. Learning points. For example, the learning points might describe the recommended steps for managers to give employees feedback.

2. Modelling. For instance, participants may view videos in which a model manager is portrayed dealing with an employee in an effort to improve his or her performance. The model shows specifically how to deal with the situation and demonstrates the learning points.

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3. Practice. Trainees then practise the behaviours demonstrated by the models.

4. Feedback and reinforcement. The trainer and other trainees reinforce the behaviour with praise, approval, encouragement, and attention. Recording the sessions can also be very instructive.

106. Identify and briefly describe the four criteria available to evaluate training.

ANSWER: (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.

Chapter_8_Performance_Management

1. What is the key purpose of performance reviews/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 a developmental purpose of performance reviews? a. meeting legal requirements b. promoting employees c. improving communication d. determining transfers ANSWER: c 4. Which of the following are the two primary purposes of performance reviews? 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 review 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 Copyright Cengage Learning. Powered by Cognero.

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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 reviews 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 is the problem when a performance standard focuses on one performance criterion and excludes others that are important? a. The performance standard suffers from criterion contamination. b. The performance standard suffers from criterion deficiency. c. The performance standard is not of strategic relevance. d. The performance standard has low criterion relevance.

ANSWER: b 10. Which of the following is a key advantage of 360-degree feedback systems? a. They are simple to administer. b. They cannot be legally challenged. c. Raters do not have to be trained. d. They may lessen bias and prejudice.

ANSWER: d 11. Suppose the performance reviews 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 Copyright Cengage Learning. Powered by Cognero.

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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 review? 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 review illustrate? a. criterion deficiency b. criterion reliability c. reliability d. criterion contamination ANSWER: d 15. Suppose the performance reviews 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 reviews 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 Copyright Cengage Learning. Powered by Cognero.

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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. Under which one of these conditions are managers more open to subordinate evaluations of their performance? a. when the evaluations are used for compensation decisions b. when the evaluations are used for promotions c. when the evaluations are used for legal decisions d. when the evaluations are used to improve communications ANSWER: d 21. Under which one of these conditions are employee self-evaluations more acceptable to management? a. when the evaluations are used for promotions b. when the evaluations are used for compensation c. when the evaluations are used to identify developmental goals d. when the evaluations are used for legal purposes ANSWER: c 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 Copyright Cengage Learning. Powered by Cognero.

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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 review 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 review 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 Copyright Cengage Learning. Powered by Cognero.

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33. Which performance review methods usually requires raters to evaluate characteristics such as dependability and initiative? a. trait methods b. behavioural methods c. results methods d. attitudinal methods ANSWER: a 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 review 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 performance review method captures behaviour that results in unusual success or unusual failure? a. graphic ratings method b. critical incidents method c. mixed ratings method d. essay method ANSWER: b 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 Copyright Cengage Learning. Powered by Cognero.

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c. behaviour-based methods ANSWER: b

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d. performance-based methods

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. Which of the following is a good way to start a problem-solving performance review meeting with an employee? a. Let the employee start with a self-evaluation. b. Point out the employee‘s problem areas. c. Inform the employee about the compensation implications. d. Tell the employee that standards must be met.

ANSWER: a 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.

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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 an ability factor that may be a source of ineffective employee performance? a. goals and expectations b. career ambition c. technical skill d. job design ANSWER: c 51. Which of the following is an environmental factor that may be a source of ineffective performance? a. rules and policies b. career ambition c. technical skills d. job satisfaction ANSWER: a 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 life balance ANSWER: a 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.

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53. 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. 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 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.

55. 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. 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 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, managers 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.

57. 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 Copyright Cengage Learning. Powered by Cognero.

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ANSWER: d 58. 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. 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 60. Feedback is most useful when it is immediate and general in nature. a. True b. False a. True b. False ANSWER: False 61. Depending on the industry, managers should provide performance feedback on an annual basis. a. True b. False a. True b. False ANSWER: False 62. In general, performance evaluation can be classified as either administrative or developmental. a. True b. False a. True b. False ANSWER: True 63. Developmental purposes for performance evaluation include validating selection criteria and meeting legal requirements. a. True b. False a. True b. False ANSWER: False 64. Administrative purposes for performance evaluations include documenting personnel decisions and identifying individual training needs. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: False 65. Performance standards should be based on job-related requirements derived from a job analysis. a. True b. False a. True b. False ANSWER: True 66. With respect to performance standards, reliability refers to the stability or consistency of a standard. a. True b. False a. True b. False ANSWER: True 67. Correlations can be used to measure reliability. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 69. Organizational politics can introduce bias into even the most fairly administered performance evaluations. a. True b. False a. True b. False ANSWER: True 70. Ideally, performance evaluations should be linked to the strategic objectives of the organization. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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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 a. True b. False ANSWER: True 72. Criterion contamination occurs when correlations between two raters of an employee are inconsistent. a. True b. False a. True b. False ANSWER: False 73. Criterion contamination occurs when factors outside an employee‘s control influence his or her performance. a. True b. False a. True b. False ANSWER: True 74. Reliability refers to measures that are consistent across raters and over time. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: False 76. Ineffective handling of performance evaluations may result in court cases or other legal action. a. True b. False a. True b. False ANSWER: True 77. In most instances, one person can easily observe and evaluate an employee‘s performance. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: False 78. Calibration can be used to make sure managers are rating employees consistently. a. True b. False a. True b. False ANSWER: True 79. Self-evaluations should be used primarily for developmental purposes. a. True b. False a. True b. False ANSWER: True 80. Peer evaluations should be used primarily for developmental purposes. a. True b. False a. True b. False ANSWER: True 81. Peer evaluations are useful for ratings on dimensions such as leadership and interpersonal skills. a. True b. False a. True b. False ANSWER: True 82. One disadvantage of peer evaluations is that they furnish less valid information than evaluations by superiors. a. True b. False a. True b. False ANSWER: False 83. A team evaluation approach is well suited for a company advocating a total-quality management philosophy. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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84. Team evaluations are a collection of the individual evaluations of a work unit. a. True b. False a. True b. False ANSWER: False 85. A self-evaluation can increase an employee‘s involvement in the performance review process. a. True b. False a. True b. False ANSWER: True 86. Most organizations that implement 360-degree evaluation start with an exclusive focus on development. a. True b. False a. True b. False ANSWER: True 87. A significant weakness of 360-degree evaluation is the complexity associated with combining all the responses. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 89. Using the evaluation system for compensation decisions rather than developmental purposes may affect how the rater evaluates the employee. a. True b. False a. True b. False ANSWER: True 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 Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: True 91. The 360-degree evaluation is a multi-rater approach to performance evaluations. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 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 a. True b. False ANSWER: False 95. Feedback training for raters should include communicating effectively, diagnosing causes of performance problems, and setting goals. a. True b. False a. True b. False ANSWER: True 96. Results-oriented approaches are the most widely used, despite their subjectivity. a. True b. False a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False 97. Trait evaluation approaches continue to be the most popular systems despite their inherent subjectivity. a. True b. False a. True b. False ANSWER: True 98. Trait methods in performance evaluations can be biased and subjective. a. True b. False a. True b. False ANSWER: True 99. A potential drawback of a trait-oriented performance evaluation is that it may be biased and subjective. a. True b. False a. True b. False ANSWER: True 100. A forced distribution method in rating employees‘ performance is similar to a professor grading on a curve. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 102. Behavioural methods are often useful for providing employees with developmental feedback. a. True b. False a. True b. False ANSWER: True 103. One of the disadvantages of the critical incident method is that it tends to lead to recency error. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: False 104. The critical incident method facilitates employee feedback and development. a. True b. False a. True b. False ANSWER: True 105. The main advantage of a BARS is that it requires minimal time and effort to develop. a. True b. False a. True b. False ANSWER: False 106. Results evaluations give employees more responsibility for outcomes and discretion over how to accomplish them. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: False 108. Measurable and quantifiable performance objectives are requirements for a successful MBO program. a. True b. False a. True b. False ANSWER: True 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 a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False 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 a. True b. False ANSWER: False 111. The balanced scorecard approach integrates four categories: financial, customer, processes, and outcomes. a. True b. False a. True b. False ANSWER: False 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 a. True b. False ANSWER: True 113. The best evaluation method to use depends upon the purpose of the evaluation. a. True b. False a. True b. False ANSWER: True 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 a. True b. False ANSWER: True 115. Three types of evaluation interviews are tell-and-sell, tell-and-listen, and problem-solving. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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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 a. True b. False ANSWER: False 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 a. True b. False ANSWER: True 118. Performance is a function of ability, motivation, and environment. a. True b. False a. True b. False ANSWER: True 119. Identify and discuss the two general purposes of performance evaluation.

ANSWER: 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. How can organizations manage performance reviews so that they minimize or avoid legal challenges?

ANSWER: To avoid or minimize legal challenges and problems • Managers should ensure that performance ratings are job related, with performance standards developed through a job analysis. Managers should evaluate only those areas that are necessary for effective job performance.

• Employees must be provided with clear, written job standards in advance of their evaluations so they understand what they need to do to get top ratings.

• Managers who conduct the reviews must be able to observe the behaviour they are rating. This implies having measurable standards with which to compare employee behaviour.

• Organizations should not allow performance problems to continue unchecked. Document problems when they occur and refer to them in employees‘ reviews. This information may prove decisive should an employee take legal action. An employer‘s credibility is strengthened when it can support performance evaluation ratings by documenting instances of poor performance.

• Supervisors should be trained to use review forms correctly and to apply the evaluation standards when making judgments.

• A firm‘s HR department should review the evaluations to see if minority groups are being adversely impacted. Having evaluations reviewed by a supervisor‘s superior can also reduce the chance of biased reviews and reviews that could be problematic legally.

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• The reviews should be discussed openly with employees, and counselling or corrective guidance offered to help poor performers improve their performance. Be open to the possibility that employees could be transferred to other positions that better suit their abilities.

• An appeals procedure should be established to enable employees to express their disagreement with the reviews.

121. What are the four basic considerations for establishing performance standards?

ANSWER: 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. Why are evaluation interviews important? What are some guidelines for effectiveness?

ANSWER: 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_9_Managing_Compensation

1. 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 ANSWER: a 2. Which of the following is an example of nonfinancial compensation? a. bonuses b. employee recognition programs c. health insurance d. incentives ANSWER: b 3. Which of the following is a component of indirect compensation? a. benefits b. wages Copyright Cengage Learning. Powered by Cognero.

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c. incentives ANSWER: a

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d. commissions

4. Assume Microsoft wants to link its overall organizational strategy to its wage and benefit policies in thestrategic plan.

How can thecompany best do this? a. through thedevelopment 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 ANSWER: d 5. Both Sam and Samantha work as cashiers at Modelo Hot Dogs. They do work of equal value to thefirm, yet Sam receives less pay than Samantha. Sam is not happy because he perceives thesystem 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 ANSWER: d 6. Which term refers to theconcept of equal pay for work of equal value? a. equal pay b. comparable pay c. compensable factor d. pay equity ANSWER: d 7. According to expectancy theory, which of thefollowing is a condition that must be met for employees to be motivated through rewards? a. high motivation need b. high instrumentality c. high reinforcement d. high procedural justice ANSWER: b 8. One theory of motivation is based on theproposition 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 ANSWER: c 9. Mohammed‘s compensation and benefits are calculated and paid on thebasis of monthly periods. How would you classify this employee? a. salaried employee b. hourly employee c. piece-rated employee d. directly compensated employee ANSWER: a 10. 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.

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d. Rewards must be valuable for motivation to occur.

ANSWER: d 11. Which job category is considered nonexempt? a. clerk b. manager c. vice-president d. president ANSWER: a 12. Which of thefollowing is a firm‘s internal factor that can influence therates at which employees are paid? a. labour market conditions b. collective bargaining c. the cost of living d. the employer‘s strategy ANSWER: d 13. Which of thefollowing is an external factor that can influence therates at which employees are paid? a. collective bargaining b. the employer‘s ability to pay c. the employees‘ relative worth d. the worth of thejob ANSWER: a 14. How would you describe ―an increase in real wages‖? a. an increase in wages over theConsumer Price Index b. an increase in wages and benefits c. an increase in themonetary proportion of thecompensation package d. an increase in collectively bargained wages ANSWER: a 15. 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 ANSWER: b 16. Which of thefollowing 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 ANSWER: b 17. For real wages to increase, what is necessary? a. An employee‘s wage increase must be greater than theincrease in theCPI. b. An employee must receive a lump-sum wage increase equal to theincrease in theCPI. c. An employee‘s wage must simply increase. d. The CPI must increase at least as much as theemployee‘s wage.

ANSWER: a Copyright Cengage Learning. Powered by Cognero.

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18. What is thescope of theimpacts of collective bargaining agreements? a. They extend beyond thesegment of thelabour force that is unionized. b. They are restricted to hourly employees only. c. They are restricted to members of theunion. d. They are restricted to both exempt and nonexempt employees.

ANSWER: a 19. Which of thefollowing 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 thelabour market c. issues dealing with employers‘ need to match themarket pay d. issues dealing with employees‘ perceptions of equity ANSWER: d 20. Which of thefollowing is thesimplest job evaluation system? a. job ranking b. point method c. job classification d. skilled based ANSWER: a 21. Which of thefollowing describes a job evaluation method? a. a skilled-based system b. a job ranking system c. a market evaluation system d. a comparable worth system ANSWER: b 22. Which of thefollowing 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 ANSWER: d 23. Which of thefollowing is a relatively new job evaluation system? a. job classification system b. job ranking c. the point system d. work evaluation ANSWER: d 24. 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 ANSWER: c 25. According to thetextbook, which job evaluation method is considered themost valid? a. job ranking b. the classification method c. the point method d. the factor comparison method ANSWER: c Copyright Cengage Learning. Powered by Cognero.

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26. Using thepoint manual, how is therelative worth of a job determined? a. by benchmarking jobs contained in thepoint manual b. through thewage mix c. by thenumber of steps within thepay grade d. by thetotal points that have been assigned to that job ANSWER: d 27. ABC Corporation uses a job evaluation system that links thevalue of jobs directly with thegoals of theorganization.

Which job evaluation system is most likely being used by ABC Corporation? a. work evaluation b. goal setting c. point method d. goal system ANSWER: a 28. What types of jobs are usually evaluated using theHay profile method? a. executive and managerial b. administrative and technical c. information technology and manufacturing d. sales and accounting ANSWER: a 29. Crystal Ball Inc. is a large information technology firm with many levels of management. thecompany 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 ANSWER: b 30. In geography, thewater catchment area or watershed refers to thearea 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 ANSWER: a 31. 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 ANSWER: d 32. Which of thefollowing is a potential problem of wage and salary surveys? a. The jobs in thesurveys may not match those in theorganization. b. They are discriminatory. c. They exclude key administrative jobs. d. They do not capture key sectoral data.

ANSWER: a 33. What type of jobs do companies normally use to collect wage survey data?

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a. key jobs c. high-rated jobs ANSWER: a

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b. low-rated jobs d. strategic jobs

34. 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 ANSWER: a 35. Accounting clerks, pay clerks, and junior secretaries are all classed in Grade 2 at Metroland Inc. Which of thefollowing should apply to all these jobs? a. They should all receive thesame wage rate in order to achieve equality. b. They should be paid within thesame 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 theworth of these jobs to theorganization may differ.

ANSWER: b 36. 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 ANSWER: d 37. What do job evaluations help to ensure? a. internal equity b. external equity c. individual equity d. comparative equity ANSWER: a 38. 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 thefollowing 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 ANSWER: a 39. According to thetextbook, what is thepredominant approach to employee compensation in Canada? a. competency-based pay b. pay-for-performance c. individual contract d. job-based pay ANSWER: d 40. XYZ Company wants to pay its employees based on their skills that are valued by thecompany. Which of thefollowing would it most likely use? a. commission pay b. stock-based pay c. profit sharing d. competency-based pay ANSWER: d 41. What do we call payment rates above themaximum of a pay range?

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a. red circle rates c. pay for talent ANSWER: a

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b. unfair pay rates d. broadband rates

42. Which of thefollowing terms is also used to describe competency-based pay? a. incentive pay b. commission pay c. skilled-based pay d. broadband pay ANSWER: c 43. What is thekey purpose of pay equity legislation? a. to achieve equal pay for work of comparable value b. to achieve equal pay for equal work c. to eliminate thegender pay gap d. to ensure more women in top management ANSWER: a 44. Jambrone Foods and CUPE Local 5000 have a collective agreement in place that allows for wages to be paid at more than theminimum wage set by theEmployment Standards Act. Which of thefollowing best describes this agreement? a. It is illegal. b. It is legal. c. It is legal but ill-advised. d. It is acceptable under theEmployment Standards Act but illegal under theCanada Labour Code.

ANSWER: b 45. 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 ANSWER: a 46. Desirée is a female receptionist employed by Trent University in Ontario. John is a male janitor with thesame employer. Both jobs are evaluated as having 500 points, yet Desiree is paid less than John. She has decided to legally challenge theemployer. Which of thefollowing 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 ANSWER: c 47. ABC Corporation is a furniture firm based in Ontario that supplies its products to thefederal 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 ANSWER: a 48. As theyear 2000 approached, many organizations hired ―young‖ and ―inexperienced‖ information technology (IT) specialists to help address theY2K problem. Many of these new hires were paid high compensation that brought them very close to thecompensation earned by experienced IT specialists working with these companies. Which of thefollowing can such a practice lead to?

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a. wage inversion c. wage-rate compression ANSWER: c

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b. pay equity d. high turnover across theboard

49. Which of thefollowing is a potential outcome of wage-rate compression? a. increased motivation b. low employee morale c. decreased employee theft d. lower absenteeism ANSWER: b 50. Wage compression may create problems related to which of thefollowing? a. external equity b. internal equity c. gender discrimination d. racial discrimination ANSWER: b 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 theUnited 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 thecompany is expanding its client base they are not happy with thecurrent pay structure. Management claims that this pay structure, ranging from $20 to $65 per hour, is based on collapsing thepay ranges for four job bands.

51. Refer to Scenario 9.1. Given that these employees are skilled-based/knowledge workers, which of thefollowing 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 ANSWER: d 52. 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 ANSWER: a 53. Refer to Scenario 9.1. Which of thefollowing 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 ANSWER: b Scenario 9.2 Calendars ―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, Calendars ―R‖ Us has roughly 60 employees and supplies its Copyright Cengage Learning. Powered by Cognero.

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calendars to most middle and high schools in Alberta. When employees join they are paid based on their relationship with theowners. Given therapid growth in its staff complement, and thearbitrary way in which it normally compensates employees, payroll has proven to be quite a challenge for thecompany as management looks to expand into other provinces.

54. Refer to Scenario 9.2. Calendars ―R‖ Us wants to develop a set of compensation policies that are internally fair.

Which of thefollowing is helpful in making this decision? a. job evaluation b. external competition c. global comparisons of pay d. market surveys ANSWER: a 55. Refer to Scenario 9.2. Calendars ―R‖ Us jobs range from management to administrative, to clerical to production to packing to delivering. Which of thefollowing would be key to evaluating theworth of each job category? a. avoiding theuse of job evaluation to establish wage structure b. evaluating thejob based on market price c. evaluating thejob based on total value delivered to theorganization d. comparing each job with a competitor in themarket ANSWER: c 56. Refer to Scenario 9.2. Setting pay levels at Calendars ―R‖ Us can be limited by all of thefollowing factors EXCEPT which one? a. employee expectations and motivation b. profitability of thefirm c. productivity of employees d. economic condition and competition ANSWER: a 57. Refer to Scenario 9.2. Which of thefollowing is a useful and cost-effective way for Calendars ‗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 ANSWER: b 58. Indirect compensation includes bonuses and commissions. a. True b. False a. True b. False ANSWER: False 59. Strategic compensation may involve market pricing. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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60. Strategic compensation links an organization‘s compensation systems to its mission and business objectives. a. True b. False a. True b. False ANSWER: True 61. Among thegoals of strategic compensation policy are rewarding past performance, attracting new employees, and reducing turnover. a. True b. False a. True b. False ANSWER: True 62. Pay equity is achieved when thecompensation of female job classes is equal to male jobs of comparable worth. a. True b. False a. True b. False ANSWER: True 63. Expectancy theory predicts that people expect to be paid as much or more than individuals in a similar job class. a. True b. False a. True b. False ANSWER: False 64. When time off is given in exchange for overtime work, it must be given hour-for-hour to thenumber of hours worked overtime. a. True b. False a. True b. False ANSWER: False 65. Employees who earn pay for hourly work are referred to as salaried employees. a. True b. False a. True b. False ANSWER: False 66. theexpectancy theory of motivation predicts that one‘s level of motivation depends on theattractiveness of therewards sought by employees and theprobability of obtaining those rewards. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: True 67. Internal factors that influence wage rates include theworth of a job, and theemployer‘s ability to pay. a. True b. False a. True b. False ANSWER: True 68. theuse of job evaluation is widespread in theprivate sector but is rarely used in thepublic sector. a. True b. False a. True b. False ANSWER: False 69. Pay levels are limited in part by profitability of thefirm and market pay. a. True b. False a. True b. False ANSWER: True 70. Labour market conditions have little impact on wage rates paid to employees. a. True b. False a. True b. False ANSWER: False 71. 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 a. True b. False ANSWER: True 72. theconsumer price index tracks thechange in price over time of a ―market basket‖ of goods and services. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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73. Wage compression can be avoided by granting wage increases solely on thebasis of theCPI. a. True b. False a. True b. False ANSWER: False 74. Granting wage increases solely on thebasis of theCPI helps compress pay rates within a pay structure, thereby ensuring equity among those who receive thewage increase. a. True b. False a. True b. False ANSWER: False 75. Real wages represent thedifference between wage increases and cost-of-living increases. a. True b. False a. True b. False ANSWER: True 76. Job evaluation is a non-systematic, qualitative process of determining therelative worth of jobs in order to establish a comparison with theprevailing market and regional value of a job within a job family. a. True b. False a. True b. False ANSWER: False 77. Job ranking is a simple method that provides a precise measure of each job‘s worth. a. True b. False a. True b. False ANSWER: False 78. HR professionals establish predetermined wage grades as a basis for evaluating jobs in thejob classification system of job evaluation. a. True b. False a. True b. False ANSWER: True 79. thejob classification system is commonly used by smaller employers.

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a. True b. False a. True b. False ANSWER: False 80. thepoint system of job evaluation permits jobs to be evaluated quantitatively based on compensable factors. a. True b. False a. True b. False ANSWER: True 81. Compensable factors include skills, effort, responsibilities, and working conditions. a. True b. False a. True b. False ANSWER: True 82. A point manual can be used to determine theexternal equity of a job. a. True b. False a. True b. False ANSWER: False 83. theHay profile method is used for clerical employees only. a. True b. False a. True b. False ANSWER: False 84. Using job evaluation and wage survey data jointly improves thelikelihood of both internal and external equity. a. True b. False a. True b. False ANSWER: True 85. thejobs that are included in wage and salary surveys are referred to as ―key jobs.‖ a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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86. An advantage of published wage surveys is compatibility with theorganization‘s jobs. a. True b. False a. True b. False ANSWER: False 87. To provide compensation estimates and ranges for jobs in an organization, all jobs should be surveyed. a. True b. False a. True b. False ANSWER: False 88. A wage curve represents therelationship between therelative worth of jobs and their wage rates. a. True b. False a. True b. False ANSWER: True 89. Managers will group similar jobs into a pay grade in order to help with thesetting of wages for all jobs. a. True b. False a. True b. False ANSWER: True 90. Wages paid above therange maximum are called red circle rates. a. True b. False a. True b. False ANSWER: True 91. Steps within a rate range allow pay increases based on merit or seniority or a combination of thetwo. a. True b. False a. True b. False ANSWER: True 92. When employees are paid according to theskills and knowledge they have rather than thespecific jobs they perform, they are paid according to competency-based compensation. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: True 93. Competency-based pay systems compensate employees for thedifferent skills or knowledge they possess rather than for thejob they hold in a designated job category. a. True b. False a. True b. False ANSWER: True 94. Competency-based pay systems represent a fundamental change in theattitude of management regarding how work should be organized and how employees should be paid for their work efforts. a. True b. False a. True b. False ANSWER: True 95. Broadbanding refers to collapsing many traditional salary grades into a few wide salary bands. a. True b. False a. True b. False ANSWER: True 96. Broadbands are salary grades collapsed into fewer and wider salary bands. a. True b. False a. True b. False ANSWER: True 97. An advantage of competency-based pay from theemployee‘s perspective is that there is no limit to what they can earn by learning new skills. a. True b. False a. True b. False ANSWER: False 98. theemployment standards acts set minimum requirements with respect to wages, hours of work, and overtime. a. True b. False a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True 99. When an employer operates in more than one province, it has to apply only theemployment requirements of one province of its choosing. a. True b. False a. True b. False ANSWER: False 100. Executives, administrators, and professional employees are exempt from overtime payments identified in employment standards acts. a. True b. False a. True b. False ANSWER: True 101. Pay equity is covered only under federal jurisdiction. a. True b. False a. True b. False ANSWER: False 102. 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 a. True b. False ANSWER: False 103. In Canada, thegender pay gap is larger for women with disabilities versus when all women are considered. a. True b. False a. True b. False ANSWER: True 104. Wage-rate compression refers to thesituation 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 a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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105. Wage-rate compression can occur when organizations grant pay adjustments to lower-rated jobs but do not extend theadjustments up thehierarchy. a. True b. False a. True b. False ANSWER: True 106. Briefly explain expectancy theory as it relates to organizational rewards.

ANSWER: Expectancy theory relates to employees‘ motivation. thetheory suggests that for a reward to be motivational, three conditions must exist: thereward must have high valence (must be valued by employees); there must be high instrumentality (employees must trust that they will get therewards if they perform thetask); and there must be high expectancy (employees must have an expectancy that they can do thetask).

The theory predicts that one‘s level of motivation depends on theattractiveness of therewards sought and theprobability of obtaining those rewards. Expectancy theory posits that employees will exert greater work effort if they have reason to expect that it will result in a reward that is valued. To motivate this effort, thevalue of any monetary reward should be attractive. Employees also must believe that good performance is valued by their employer and will result in their receiving theexpected reward.

107. Briefly explain thedifferent job evaluation systems.

ANSWER: Organizations use four basic job evaluation techniques to determine therelative worth of jobs. thejob ranking system arranges jobs in numerical order on thebasis of theimportance of thejob‘s duties and responsibilities to theorganization. thejob classification system slots jobs into pre-established grades. Higher-rated grades will require more responsibilities, working conditions, and job duties. thepoint system of job evaluation uses a point scheme based upon thecompensable job factors of skill, effort, responsibility, and working conditions. themore compensable factors a job possesses, themore points are assigned to it. Jobs with higher accumulated points are considered more valuable to theorganization. thefactor comparison system evaluates jobs on a factor-by-factor basis against key jobs in theorganization.

108. Explain competency-based pay, including its advantages and disadvantages.

ANSWER: Competency-based pay, also known as knowledge-based pay, pay-for-knowledge, or multi-skill-based pay, compensates employees for thedifferent skills or increased knowledge they possess rather than for thejob they hold in a designated job category. There are several advantages that stem from theuse of competency-based pay plans. themost 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 thereduced effects of absenteeism and turnover. Unfortunately, some competency-based pay plans limit theamount of compensation employees can earn, regardless of thenew 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.

109. Briefly discuss theprovisions of theemployment standards acts pertaining to employee compensation.

ANSWER: Each of theprovinces 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 thebase 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.

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Chapter_10_Pay_for_Performance_Incentive_Rewards

1. When is employee compensation referred to as variable pay? a. when employee pay is linked to performance b. when employer costs vary with theincentives offered c. when employee pay varies with market pay d. when employee pay is comprised of varying components ANSWER: a 2. According to research, which of thefollowing 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. d. They tend to drive up organizational costs and decrease profits.

ANSWER: a 3. Under which of thefollowing conditions can incentive plans fail to achieve their objectives? a. when thegoals are based on organizational performance b. when employees are too motivated c. when employees have little ability to affect performance standards d. when theobjectives are too focused ANSWER: c 4. Which of thefollowing is a key factor that contributes to thesuccess of incentive plans? a. employee entitlements b. management support c. high employee expectations for pay gains d. undefined performance measures ANSWER: b 5. Why are performance measures vital in incentive plan design? a. because they drive profitability b. because they ensure management support c. because they communicate theimportance of theorganizational goals d. because they are fair and equitable ANSWER: c 6. In setting up incentive systems, what is thekey consideration in establishing performance standards? a. They should be qualitative. b. They should be measurable. c. They must be motivational. d. They must be set by outside consultants.

ANSWER: b 7. 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 theemployer using? a. higher piece rate b. standard piece rate c. exception bonus rate d. differential piece rate ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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8. 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 thefollowing plans is being used here? a. piece rate plan b. completion pay plan c. time division plan d. standard hour plan ANSWER: a 9. Which of thefollowing would promote team behaviours and a ―culture of ownership‖ among all employees in theorganization? a. differential piece rates b. commissions c. bonuses d. employee stock ownership plans ANSWER: d 10. Which of thefollowing 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.

ANSWER: c 11. Which of thefollowing 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.

ANSWER: d 12. 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 ANSWER: c 13. When is piecework most appropriate? a. when thejob 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 ANSWER: a 14. 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 ANSWER: b Copyright Cengage Learning. Powered by Cognero.

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15. Which of thefollowing is tied to formal employee performance appraisals? a. profit sharing b. merit pay c. stock options d. spot bonuses ANSWER: b 16. 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 commission d. a differential piece rate ANSWER: b 17. Which of thefollowing is a key condition for thesuccess 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.

ANSWER: a 18. Many potential errors, as well as discrimination, can occur in theperformance appraisal process. Which of thefollowing can such errors lead to? a. problematic stock options b. problematic merit pay c. problematic job evaluations d. problematic market pay rates ANSWER: b 19. 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 ANSWER: d 20. Which of thefollowing is a reason why merit raises may fail to achieve their intended purpose? a. Objective performance measures are used. b. The performance appraisal system is deficient. c. The compensation system is strategic. d. Incentive rewards are linked to organizational goals.

ANSWER: b 21. 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 thefollowing? a. annual merit raise b. group incentive plan c. lump-sum merit pay d. percentage wage increase ANSWER: c 22. Amelia received a stellar performance appraisal in 2016 that translated to a 10 percent pay raise for 2017. Her 2016 base pay was $50,000. Which of thefollowing applies to 2017? a. Her employer would give her a bonus of $5,000.

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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 2016 compensation components—base pay, incentives, benefits, and perks. d. Her starting pay would be $55,000.

ANSWER: d 23. From an employer‘s perspective, which of thefollowing 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 thebase salary. c. They are done in conjunction with promotions. d. They reflect annual adjustments in base salary.

ANSWER: a 24. What is a likely external factor that would affect theincentives of sales employees? a. the organization‘s strategy b. job evaluations c. a salesperson‘s intrinsic motivation d. seasonal fluctuations in demand ANSWER: d 25. 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 ANSWER: a 26. 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 ANSWER: d 27. Which of thefollowing is themost widely used sales incentive program? a. straight salary b. straight commission c. combined salary and commission d. commission plus bonus ANSWER: c 28. Malo is an engineer. Her salary range was extended to therange 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 ANSWER: d 29. Who normally decides thecompensation package for theChief Executive Officer in a Fortune 500 firm? a. the vice-presidents or thesecond level of executives b. members of theBoard of Directors c. the unions through collective bargaining Copyright Cengage Learning. Powered by Cognero.

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d. the shareholders of thefirm ANSWER: b 30. What is thelargest component (in dollars) of CEO compensation in Canada‘s largest firms? a. stock options b. executive perquisites c. bonuses d. benefits ANSWER: a 31. As part of her compensation package, Mariana was granted therights 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 ANSWER: c 32. It was revealed in thepress that theformer CEO of a Fortune 100 firm enjoyed special use of thecompany plane and a country club membership as a part of his reward package. Which of thefollowing 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.

ANSWER: b 33. Which of thefollowing is a major concern about executive compensation? a. the timing of thestock awards b. the lack of objective performance data c. the lack of perquisites d. the growing gap between leaders and thecompany‘s lowest-paid employees ANSWER: d 34. Peter Drucker, themanagement expert, has argued that CEO pay should not be more than 20 times that of therank-andfile 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 theminimum wage for workers d. the relative basic education of executives versus theincreasing sophistication of employees‘ knowledge ANSWER: a 35. As an incentive, Ahmed was offered theopportunity 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 ANSWER: d 36. What‘s thefirst step in thethree-step approach in deciding on team incentives? a. Performance measures are decided. b. The size of theincentive is decided.

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c. A payout formula is determined.

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d. A survey is conducted.

37. Which of thefollowing pay plans can be plagued by the―free rider‖ effect? a. piece rates b. team incentives c. base pay d. retirement plans ANSWER: b 38. What‘s theoverarching 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.

ANSWER: b 39. What is thephilosophy behind theScanlon 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.

ANSWER: b 40. Which of thefollowing 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‖ ANSWER: d 41. What is a major problem with profit-sharing plans? a. They increase thefixed 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.

ANSWER: b 42. What is thepurpose of a profit-sharing plan? a. to allow workers to contribute ideas and suggestions b. to motivate a total commitment to theorganization as a whole c. to enable workers to share in labour cost savings d. to instill commitment to theemployee‘s immediate work group ANSWER: b 43. An ―Owners Care‖ branding message would be linked to which type of compensation system? a. profit-sharing b. commissions c. piece rates d. perks Copyright Cengage Learning. Powered by Cognero.

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ANSWER: a 44. Profit-sharing plans represent one way that wealth can be redistributed at which of thefollowing levels? a. the international level b. the regional level c. the national level d. the firm level ANSWER: d 45. Recently, stock options have been strongly criticized in thepress following controversies at several companies. What has this criticism focused on? a. the comparative low executive base pay b. the amount of theoptions granted and exercised c. the fact that mainly males are CEOs and that they get these options d. the stock prices in competitive firms ANSWER: b 46. Which of thefollowing is a type of stock plan? a. stock gainsharing plan b. stock bonus plan c. stock commission plan d. stock incentive plan ANSWER: b 47. Which of thefollowing is a major problem of ESOPs? a. Employees may become demotivated and frustrated if theshare price falls, even though they have worked productively. b. ESOPs place employees‘ pensions at risk because they are tied to themarket performance of theorganization. c. Because of thecash involved, ESOPs can be damaging to thefinancial well-being of theorganization. d. Employees view theESOP as a form of management control.

ANSWER: a 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, thecompany has been able to sell various units to privately owned medical clinics and a few hospitals in theUnited States. theproblem currently facing BioMetrics Imaging is finding salespeople with theappropriate experience who not only understand theequipment but are also trustworthy and willing to work extremely hard to bring theproduct to themarketplace. It takes roughly six months to convince potential clients to purchase themachines. Sales agents receive a hefty paycheque when a unit is sold based on a percentage of theunit price, and all travel expenses are covered. Still, thecompany is not able to retain its employees because thetime lag between beginning to sell machines and getting paid is too long.

48. 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 ANSWER: a 49. Refer to Scenario 10.1. Which of thefollowing factors is least likely to affect sales for this equipment? a. economic and seasonal fluctuations Copyright Cengage Learning. Powered by Cognero.

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b. sales competition and changes in demand c. producing themachines in a timely manner d. the nature of thesales territory ANSWER: c 50. Refer to Scenario 10.1. One way to address theturnover problem that is driven by thefrequency 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 ANSWER: b Scenario 10.2 Meritas Financial Ltd. is a financial advisory firm located in downtown Toronto. Most of thefirm‘s senior employees (referred to as partners) are paid top dollar for bringing in huge accounts regardless of whether these accounts bring in theappropriate amount of business to justify theincentives paid. thepartners are compensated on thenet worth of thecompanies that sign on to use Meritas as their financial advisor. theowner is now concerned about this pay arrangement and wants to make changes to theway 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 theaccounts that they brought on board.

51. 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 thefollowing? a. an employee stock bonus plan b. an employee stock purchase plan c. profit-sharing plans d. employee stock option plans ANSWER: c 52. Refer to Scenario 10.2. Meritas wants to keep these employees happy and motivated. Which of thefollowing 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 thegrowth of theorganization‘s profit ANSWER: a 53. 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 thefollowing is thebest 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 ANSWER: d 54. Strategic compensation links organizational goals with employee compensation. a. True b. False a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True 55. Approximately 50 percent of Canadian companies offer some form of variable pay. a. True b. False a. True b. False ANSWER: False 56. Incentive plans can create an organizational environment of ―shared commitment,‖ since individuals contribute to organizational success. a. True b. False a. True b. False ANSWER: True 57. Meshing compensation and organizational objectives helps employees assume ownership of their jobs, improve effort, and improve performance. a. True b. False a. True b. False ANSWER: True 58. One philosophy of incentive systems is that tying compensation to employee effort will improve employee performance. a. True b. False a. True b. False ANSWER: True 59. Incentive plans are not effective in service and government organizations because of thedifficulty in measuring productivity. a. True b. False a. True b. False ANSWER: False 60. A key advantage of incentive plans is that they represent variable costs that are linked to therealization 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 a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True 61. Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement. a. True b. False a. True b. False ANSWER: False 62. For incentive plans to be successful, one of themost critical requirements is that managers be willing to grant incentives based on differences in individuals, teams, or organizational criteria. a. True b. False a. True b. False ANSWER: True 63. Incentive plans based on productivity can reduce labour costs. a. True b. False a. True b. False ANSWER: True 64. Employees receive a specified payment for each unit produced under a straight piecework program. a. True b. False a. True b. False ANSWER: True 65. Differential piece rate plans guarantee employees at least a base pay. a. True b. False a. True b. False ANSWER: False 66. Under straight piecework, employees receive a certain rate for each unit produced. a. True b. False a. True b. False ANSWER: True 67. Piecework pay plans permit an organization to predict its labour costs with considerable accuracy.

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a. True b. False a. True b. False ANSWER: True 68. Piecework is inappropriate where technology changes are frequent. a. True b. False a. True b. False ANSWER: True 69. Employees working under a standard hour plan are paid on thebasis of a predetermined time allowed to finish thejob. a. True b. False a. True b. False ANSWER: True 70. Standard hour plans are popular in service departments in automobile dealerships. a. True b. False a. True b. False ANSWER: True 71. A bonus is supplemental to base wages. a. True b. False a. True b. False ANSWER: True 72. Spot bonuses are usually provided for some employee effort that is not directly tied to an established performance standard. a. True b. False a. True b. False ANSWER: True 73. A merit raise is a form of bonus that is given to an employee beyond their base wage. a. True b. False a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False 74. Merit raises may be perpetuated year after year even if performance declines. a. True b. False a. True b. False ANSWER: True 75. Under themerit pay system, employees who have better political connections within thecompany 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 a. True b. False ANSWER: True 76. Merit pay plans have been criticized because themerit increase may not be sufficient to raise theemployee‘s base pay. a. True b. False a. True b. False ANSWER: True 77. theoperation of a merit pay plan depends on theeffectiveness of theperformance appraisal system. a. True b. False a. True b. False ANSWER: True 78. Employers using a lump-sum merit program will need to periodically increase base salaries in order for employees to keep pace with thecost of living or general market wages. a. True b. False a. True b. False ANSWER: True 79. Lump-sum merit pay does not contribute to escalating base salary levels. a. True b. False a. True b. False ANSWER: True 80. Financial incentives for salespeople are widely used.

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a. True b. False a. True b. False ANSWER: True 81. Incentive systems for salespeople are complicated by wide differences in thetypes of sales jobs. a. True b. False a. True b. False ANSWER: True 82. Sales incentives can be affected by external factors beyond thesalesperson‘s control. a. True b. False a. True b. False ANSWER: True 83. Under a straight commission plan, compensation is based entirely on a percentage of sales. a. True b. False a. True b. False ANSWER: True 84. A salesperson with a sales volume of $100,000 earning a straight commission of 3 percent would receive $3,000. a. True b. False a. True b. False ANSWER: True 85. A straight salary plan is themost frequently used type of sales incentive plan. a. True b. False a. True b. False ANSWER: False 86. Straight commission plans may induce salespeople to grant price concessions. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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87. Professional employees are difficult to develop incentive plans for only because their outputs are difficult to measure. a. True b. False a. True b. False ANSWER: False 88. thelevel of incentives given to executives may depend on their level in thefirm. a. True b. False a. True b. False ANSWER: True 89. Balanced scorecards refer to theuse of operational yardsticks as well as traditional financial measures as a basis for computing executive pay. a. True b. False a. True b. False ANSWER: True 90. Stock options are rights attached to theachievement of specific organizational objectives. a. True b. False a. True b. False ANSWER: False 91. A potential difficulty with pay-for-performance programs is how to measure employee performance. a. True b. False a. True b. False ANSWER: True 92. Perquisites are special benefits given to executive employees. a. True b. False a. True b. False ANSWER: True 93. Gainsharing is a type of team compensation. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: True 94. Gainsharing plans are designed to improve productivity through more effective use of organizational resources. a. True b. False a. True b. False ANSWER: False 95. theidea behind theScanlon Plan is that employees not only should offer ideas to improve productivity, but also should be rewarded for those ideas. a. True b. False a. True b. False ANSWER: True 96. themost important lesson learned from Scanlon and Improshare plans is that if management wants to gain thecooperation of its employees in improving efficiency, they must permit theemployees to become involved psychologically as well as financially in theorganization. a. True b. False a. True b. False ANSWER: True 97. Enterprise incentive plans allow all organizational members to participate in theplan‘s payout. a. True b. False a. True b. False ANSWER: True 98. In most profit-sharing plans, about 50 percent of net profits are shared with employees. a. True b. False a. True b. False ANSWER: False 99. A weakness of profit-sharing plans is that employees do not have total control over theprofitability of theorganization. a. True b. False a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True 100. 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 a. True b. False ANSWER: True 101. Because of failing popularity and media scandals, thenumber of Canadian companies granting stock options to nonexecutive personnel has been decreasing in recent years. a. True b. False a. True b. False ANSWER: False 102. Employers use stock ownership incentive plans to increase employee ―ownership‖ in thecompany. a. True b. False a. True b. False ANSWER: True 103. ESOPs can increase employees‘ pride of ownership in theorganization, providing an incentive for them to increase productivity and help theorganization prosper and grow. a. True b. False a. True b. False ANSWER: True 104. ESOPs have been criticized because of potential inabilities to pay back thestock of employees when they retire. a. True b. False a. True b. False ANSWER: True 105. Briefly discuss three individual incentive plans. (Students should discuss three of thefour following plans.)

ANSWER: Piecework is one of theoldest incentive plans. When piecework is used, employees receive a certain rate for each unit they produce. Their compensation is then determined by thetotal number of units they produce during a given pay period. thepiecework system is easier to implement and is more likely to succeed when output can be easily measured, thequality of theproduct is less critical, thejob is fairly standardized, and a constant flow of work can be maintained. Piecework has theadvantage 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 Copyright Cengage Learning. Powered by Cognero.

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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 thework in less time than expected, they are still paid based on thestandard time for thejob 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 thebasis of cost reduction, quality improvements, or other performance criteria.

Merit pay is normally given on thebasis 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 themerit 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. Discuss theproblems identified with merit raises. As a manager, what would you do to ensure that merit raises fulfilled their intended value?

ANSWER: 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 theincrease 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 thebasis of (1) employee performance, (2) position in thepay range, and in a few cases, (3) time since thelast pay increase. In addition, organizations should strive to ensure that their performance appraisal system is reliable and valid. Any deficiencies in theperformance appraisal system (as discussed in Chapter 8) can impair theoperation 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 thetime 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.

107. Identify theprincipal methods for compensating salespeople and theadvantages of each method.

ANSWER: Compensation plans for sales personnel may consist of a straight salary plan, a straight commission plan, or a combination salary and commission plan. thestraight 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.

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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 thesale is likely to be a lower priority.

When a combination salary and commission plan is used, thepercentage of cash compensation paid out in commissions is called leverage. Leverage is a ratio of base salary to commission. theamount of leverage is determined after considering theconstraining factors affecting performance. thecombination plan has theadvantages of both thestraight salary and thestraight commission plans, with few disadvantages.

108. Describe thekey goals of profit-sharing plans.

ANSWER: In profit-sharing plans, employers pay, or make available to defined groups of employees, special current or deferred sums based on theorganization‘s profits.

Profit-sharing plans are intended to give employees theopportunity to increase their earnings by sharing in theprofits of thefirm; in this way, employees contribute to thegrowth of their organization‘s profits. These contributions may be directed toward improving product quality, reducing operating costs, improving work methods, and building goodwill rather than just increasing rates of production.

Profit sharing can help stimulate employees to think and feel more like partners in theenterprise and thus concern themselves with thewelfare of theorganization as a whole. Its purpose therefore is to motivate a total commitment from employees rather than simply to have them contribute in specific areas.

Chapter_11_Employee_Benefits

1. What is an important reason why employers need to communicate theextent and value of thebenefits they provide? a. Such communication is required by thelaw. b. The HR department needs this information for its communication outlets. c. It immediately reduces theoverall costs. d. Employees generally underestimate thevalue of thebenefits offered.

ANSWER: d 2. Which of thefollowing statements is most applicable to thebenefits costs to employers in Canada and theUnited States? a. Benefits costs are higher in Canada. b. Benefits costs are higher in theUnited States. c. Benefits costs are thesame in Canada and theUnited States. d. Benefits costs are both negligible in Canada and theUnited States.

ANSWER: b 3. Ideally, which of thefollowing should apply to an organization‘s benefits system? a. It should mirror that of thecompetition, so as to attract top applicants. b. It should be restricted to mandatory benefits. c. It should be aligned to theoverall strategy of theorganization. d. It should be more than 50 percent of payroll costs, so as to be competitive.

ANSWER: c 4. What is an important factor in determining theeffectiveness of benefits programs in organizations?

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a. level of competition c. state of thebroader economy ANSWER: d

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b. employee motivation d. effective administration

5. What is thekey reason why employers‘ benefits costs are less in Canada versus theUnited States? a. Doctors are cheaper in Canada. b. Healthcare is subsidized by governments in Canada. c. Hospitals are better managed in Canada. d. Canadians have better eating habits.

ANSWER: b 6. Susie Jones has definite preferences in terms of thebenefits offered by her employer. Susie will be able to select thebenefits 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 ANSWER: b 7. 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.

ANSWER: c 8. 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.

ANSWER: c 9. 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 to help with its administration b. establish that there is a need for it c. lobby thegovernment to make it mandatory d. hire a consulting firm to roll it out ANSWER: b 10. ABC Corporation uses theservices of professional benefits vendors to administer their benefits. What is this practice a form of? a. outsourcing b. shared services c. freelancing d. delegation ANSWER: a 11. Who has thekey responsibility of communicating benefits information to employees?

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b. the government d. the benefits provider

12. Great Parcel Inc. has numerous office locations across Canada, including isolated areas with no access to theInternet.

What would be themost efficient way for thecompany to communicate a new benefit to all its employees? a. online modules b. a meeting in a central location c. trips by theorganization‘s top executive team to all thelocations d. payroll inserts ANSWER: d 13. Which of thefollowing is thebest explanation of theincreasing cost of employee benefits? a. the rising educational levels of theworkforce b. the treatment of employees‘ benefits as strategic c. the use of online, interactive benefits programs d. employers trying to match thecompetition ANSWER: d 14. Which of these statements best describes management concerns about benefits? a. Management is concerned with promoting a shift in mindset from self-responsibility to entitlement. b. Management is concerned with employees not using their benefits. c. Management is concerned with tax consequences. d. Management is concerned with employee turnover because of benefits.

ANSWER: c 15. Which of thefollowing 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 ANSWER: b 16. What‘s a major disadvantage of cafeteria benefit plans? a. They increase thecomplexity of theadministration of theplans. b. They are rejected by most workers. c. Unions oppose them. d. They increase government costs.

ANSWER: a 17. What‘s a major problem facing theCanada Pension Plan? a. the aging population b. public disapproval c. decreased subsidies from government d. employer resistance ANSWER: a 18. Which of thefollowing is a method to contain thecosts of benefits? a. making contribution changes, such as deductibles Copyright Cengage Learning. Powered by Cognero.

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b. eliminating benefit caps c. increasing benefits coverage d. making cuts to mandatory benefits ANSWER: a 19. What are thetwo critical factors considered when determining theamount 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 thepast year and regional unemployment rates d. the size of thefirm and thesalary of theemployee ANSWER: c 20. Who contributes financially to theEmployment 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 ANSWER: a 21. Which of thefollowing is based on theperspective that work-related accidents and illnesses should be considered a cost of doing business and that employees should NOT bear thecosts of their treatment? a. unpaid leave b. medical care benefits c. paid sick time d. workers‘ compensation insurance ANSWER: d 22. What are two of thelargest 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 ANSWER: c 23. 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 ANSWER: c 24. 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 ANSWER: d 25. 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 ANSWER: a Copyright Cengage Learning. Powered by Cognero.

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26. 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 ANSWER: a 27. In a non-contributory pension plan, who makes thefinancial contributions? a. the employer only b. the employee only c. the employer and theemployee d. the employer, theemployee, and thegovernment ANSWER: a 28. ABC Corporation allows employees theopportunity 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 ANSWER: d 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. What view is this based on? a. provincial law b. a pay-as-you-go philosophy c. a reward philosophy d. an earnings philosophy ANSWER: d 30. Logan Wolverine works for RAY Vision Inc. theemployer 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 non-contributory plan ANSWER: c 31. Tommy Lee is recovering from a drug addiction problem. His employer has offered him services to help him with therecovery 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 ANSWER: a 32. Raj Vickram is receiving a pension of $3,500 per month. This figure was based on a predetermined formula. What type of plan is this? a. a contributory plan b. a non-contributory plan c. a defined-contribution plan d. a defined-benefit plan ANSWER: d 33. In Canada, registered retirement savings plans (RRSPs) have grown significantly over thepast few years. What is a key reason for this growth? a. Minimum wage earners now have more disposable income and they are contributing.

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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.

ANSWER: b 34. 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) ANSWER: a 35. James Callaghan has worked full-time for BC Metals for four years. He has learned from theHR manager that his earned pension benefits cannot be revoked by theemployer. Why is this so? a. because theemployer expects him to work until retirement b. because thebenefits are vested c. because theunion would strike if they are revoked d. because thebenefits are defined ANSWER: b 36. From a pension perspective, what is a key issue concerning theaging 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 theHR managers who oversee this benefit. c. There are fewer contributions to thepension fund by younger generations and more withdrawals for funding pensions for baby boomers. d. Younger generations are demanding reduced pensions for those leaving theworkforce.

ANSWER: c 37. 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 thebenefits 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.

ANSWER: d 38. Employer-sponsored employee assistance programs (EAPs) are created to help workers overcome hurdles in their personal lives. Which employee is themost 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 theoffice d. Kate Johnson, who needs help choosing an appropriate M.B.A. program ANSWER: a 39. Which of thefollowing is related to therecent use of employee assistance programs (EAPs) in Canada?

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a. They are increasing in use. b. They are decreasing in use. c. They add no costs to theemployer. d. They are not geared for dealing with emotional problems.

ANSWER: a 40. In terms of childcare provisions, which of thefollowing is considered themost 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 ANSWER: b 41. Which of thefollowing is a potential outcome of family-friendly programs? a. increase in conflict b. increase in turnover c. increase in risk of unionization d. reduction of employee absenteeism ANSWER: d 42. Which of thefollowing is an example of a family-friendly benefit that is increasingly being used? a. defined benefits b. tuition reimbursements c. eldercare d. defined contributions ANSWER: c 43. How are childcare programs and eldercare programs similar? a. Under both programs, most of thecaregivers are men. b. Both types of programs typically offer on-site care facilities. c. Both programs are on thedecline in Canada. d. Both programs help to maintain or increase employee productivity.

ANSWER: d 44. thecollective bargaining agreement between ACME Inc. and theunion CUPA 1003 Local requires theemployer to provide a limited vision care package. Workers are demanding more. Who will determine any new package? a. the union and thegovernment b. the government c. the employer and theunion d. the employer ANSWER: c 45. Canada has experienced a growth in theproportion of part-time workers (versus full-time) over thepast 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.

ANSWER: a Scenario 11.1 Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian Copyright Cengage Learning. Powered by Cognero.

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furniture companies across thecountry. thecompany has been growing at a rapid rate in thepast couple of years.

Previously, all HR-related functions were extremely informal or almost non-existent. With therising turnover, and a constant struggle to retain employees during thecompany‘s rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with therecruitment and selection process, but also will help to administer a pension and benefit program. thenewly promoted HR manager is excited about thecompany‘s future and is looking forward to thenew challenges, but hopes efforts to more effectively capture and retain theright talent will be worth it, as turnover has caused thefirm to lose one of its biggest clients.

46. Refer to Scenario 11.1. Canadian Fasteners wants to take into consideration changes in thediversity and lifestyles of its workforce. Which of thefollowing would be thebest option for thecompany? 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 theway it is currently doing things ANSWER: b 47. Refer to Scenario 11.1. Canadian Fasteners is a small-size firm that still needs to monitor its costs. Which of thefollowing would be most cost-effective for thecompany? a. setting up its own in-house system to be administered by thenew HR manager and new staff b. hiring a full-time benefits specialist c. hiring a professional benefits vendor to administer theplan d. declining to provide pension and benefits to it employees ANSWER: c 48. Refer to Scenario 11.1. Canadian Fasteners must ensure that thebenefits it offers employees are fulfilling thelegal requirements. Which of thefollowing is NOT legally required? a. survivor benefits b. employer contributions to theCanada and Quebec pension plans c. employment insurance d. workers‘ compensation insurance ANSWER: a 49. 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 thefollowing pension plans would be most effective in allowing employees to have a decent pension when they retire? a. a non-contributory plan b. a contributory plan c. a registered retirement savings plans with only theemployee contributing d. a defined non-contributory plan ANSWER: b Scenario 11.2 Bradshaw, Petrilli & Blake Inc. (BPBI) is a Canadian financial planning firm that provides financial advice for companies across Canada and theUnited States. thefirm 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 Copyright Cengage Learning. Powered by Cognero.

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thedemands of thejob, they often get caught between theneeds of theorganization‘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.

50. Refer to Scenario 11.2. Which of thefollowing 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 ANSWER: a 51. 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 thefollowing 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 ANSWER: b 52. 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 thefollowing 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 theextra overtime hours worked each day ANSWER: c 53. Employee benefits typically represent 40 percent of total payroll costs to employers. a. True b. False a. True b. False ANSWER: False 54. Benefits can help employers get branded as ―best employers.‖ a. True b. False a. True b. False ANSWER: True 55. Benefits programs should be based on specific objectives in line with theorganization‘s strategic compensation plan. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: True 56. A primary objective of most benefits programs is to increase turnover. a. True b. False a. True b. False ANSWER: False 57. Employee benefits are a form of indirect compensation. a. True b. False a. True b. False ANSWER: True 58. It would be desirable for employers to enlist employee participation in modifying a benefits program. a. True b. False a. True b. False ANSWER: True 59. Many employers provide unneeded and unwanted types of medical benefits to their employees. a. True b. False a. True b. False ANSWER: True 60. Benefit packages of any kind still help employers attract and retain quality employees. a. True b. False a. True b. False ANSWER: False 61. To reflect thesocial changes Canada is facing, employers are increasingly tailoring their benefits programs to be family friendly. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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62. Flexible benefits plans are also known as ―cafeteria‖ plans. a. True b. False a. True b. False ANSWER: True 63. Many firms outsource their cafeteria plans to a professional vendor because of thecomplexity of administering thesystem. a. True b. False a. True b. False ANSWER: True 64. It is primarily theresponsibility of theemployee to remain informed about thebenefits he or she receives. a. True b. False a. True b. False ANSWER: False 65. Online benefits programs allow employees self-service freedom and availability virtually any time. a. True b. False a. True b. False ANSWER: True 66. thedeclining cost of health care benefits provides Canadian organizations opportunities to reduce employee benefit costs. a. True b. False a. True b. False ANSWER: False 67. theConference Board of Canada has concluded that it is not possible to contain thecost of employee benefit programs. a. True b. False a. True b. False ANSWER: False 68. Legally required benefits amount to 50 percent of thebenefits packages that Canadian employers provide. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: False 69. theCanada and Quebec Pension Plans both require employer and employee contributions. a. True b. False a. True b. False ANSWER: True 70. CPP and QPP have universal portability—that is, an employee has theright to claim benefit credits wherever they are employed in Canada. a. True b. False a. True b. False ANSWER: True 71. Since provincial health care benefits cover basic health care services, very few employers offer supplementary health benefits. a. True b. False a. True b. False ANSWER: False 72. 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 a. True b. False ANSWER: True 73. thegovernment provides financial contributions for theCanada Pension Plan. a. True b. False a. True b. False ANSWER: False 74. Only employees contribute to theEmployment Insurance (EI) fund. a. True b. False a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False 75. Workers‘ compensation insurance is based on a system of individual liability. a. True b. False a. True b. False ANSWER: False 76. Both employees and employers make contributions toward a workers‘ compensation fund. a. True b. False a. True b. False ANSWER: False 77. Self-employed individuals can contribute to theCanada Pension Plan. a. True b. False a. True b. False ANSWER: True 78. Many employers now offer additional health care benefits such as dental and prescription drug coverage. a. True b. False a. True b. False ANSWER: True 79. thegrowth in health care costs can be attributed to a number of factors, including thegreater need for health care by an aging population. a. True b. False a. True b. False ANSWER: True 80. Employer health plans are generally restricted to medical, surgical, and hospital expenses. a. True b. False a. True b. False ANSWER: False 81. Health care benefits are considered ―discretionary‖ because employers are not required by law to provide them.

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a. True b. False a. True b. False ANSWER: True 82. Employee assistance programs and wellness programs cannot help organizations cut thecosts of health care benefits. a. True b. False a. True b. False ANSWER: False 83. Employers are increasingly using healthcare spending accounts to cover employee benefits. a. True b. False a. True b. False ANSWER: True 84. In thepast two decades, more and more employees have been receiving dental care insurance as a benefit. a. True b. False a. True b. False ANSWER: True 85. ―Payment for time not worked‖ includes pension. a. True b. False a. True b. False ANSWER: False 86. In addition to paid holidays, some employers give workers additional personal use days. a. True b. False a. True b. False ANSWER: True 87. Long-term disability plans normally provide a disabled employee with 90–100 percent of their pre-disability income. a. True b. False a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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88. Severance pay is a one-time payment to employees who have been terminated. a. True b. False a. True b. False ANSWER: True 89. Once extremely popular, group life insurance for employees has steadily declined in use. a. True b. False a. True b. False ANSWER: False 90. In Canada, thehigher thehousehold income, thelower theretirement age. a. True b. False a. True b. False ANSWER: True 91. 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 a. True b. False ANSWER: True 92. Company-sponsored preretirement programs force employees to think about what their lives will be like after they leave theorganization. a. True b. False a. True b. False ANSWER: True 93. At thepresent time, employers are required to provide pension plans to all full-time employees. a. True b. False a. True b. False ANSWER: False 94. With contributory pension plans, contributions are made jointly by employers and thegovernment. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: False 95. Most of thepension plans in privately held organizations are contributory. a. True b. False a. True b. False ANSWER: True 96. In a defined-benefit plan, theretirement benefit is determined according to a predetermined formula. a. True b. False a. True b. False ANSWER: True 97. In a defined-contribution pension plan, theamount an employee is to receive upon retirement is specifically set forth. a. True b. False a. True b. False ANSWER: False 98. 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 a. True b. False ANSWER: False 99. In Canada, women are retiring at a younger age compared to men. a. True b. False a. True b. False ANSWER: True 100. Employee assistance programs (EAPs) help employees mainly with relocation costs. a. True b. False a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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101. Because of added expenses and complicated governmental rules, defined-benefit pension plans are falling out of use. a. True b. False a. True b. False ANSWER: True 102. Childcare, eldercare and extended leave policies are all examples of employee services. a. True b. False a. True b. False ANSWER: True 103. Defined-benefit plans are declining in use in Canada. a. True b. False a. True b. False ANSWER: True 104. What considerations should an organization make in implementing an effective benefits program?

ANSWER: Benefits are an established and integral part of thetotal 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 theorganization‘s philosophy and policies, as well as affordable. Through committees and surveys, a benefits package can be developed to meet employees‘ needs. Through theuse 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 theprogram is thefull communication of benefits information through meetings, printed materials, and annual personalized statements of benefits.

105. List thekey advantages and disadvantages of flexible benefits plans.

ANSWER: Advantages • Employees select benefits to match their individual needs. This increases their satisfaction with thebenefits.

• Benefit selections adapt to a constantly changing (diversified) workforce.

• Employees gain greater understanding of thebenefits offered to them and thecosts incurred.

• Employers maximize thepsychological value of their benefits program by paying only for thehighly desired benefits.

• Employers limit benefit costs by allowing employees to ―buy‖ benefits only up to a maximum (defined) amount.

• Employers gain competitive advantage in therecruiting and retention of employees.

Disadvantages • Poor employee benefits selection results in unwanted financial costs.

• Employees can get confused and overwhelmed with their choices.

• There are certain added costs to establishing and maintaining theflexible plan.

• Employees may choose benefits of high use to them that might increase employer premium costs.

106. Compare and contrast therisks to theemployee in regard to defined-contribution and defined-benefit pension plans.

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theretirement benefit is ―defined‖). However, in a defined-contribution pension plan, theonly guarantee to employees is that theemployer will contribute a set dollar amount on their behalf to thepension plan (i.e., thecontribution is ―defined‖). While thepension benefits under a defined-benefit plan are fixed, thepension benefits of thedefined-contribution plan vary according to thesuccess of theplan‘s investments (i.e., superior investment decisions will yield greater pension payments than mediocre or poor decisions).

Under thedefined-benefit plan, retiree risk is largely limited to whether thefund is properly funded and whatever effects inflation will have on their fixed pension cheques. Under thedefined-contribution plan, retiree risk is associated with thegeneral risks and rewards of investments, thequality of investment advice, and therisks commonly associated with thedefined-benefit plans.

107. Explain theconcept of family-friendly benefits. Name and discuss at least five of these benefits employers offer their employees.

ANSWER: 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 theway 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 theorganization covers—in part or totally— costs of tuition, books, and related fees. theincreased 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.

Chapter_12_Promoting_Safety_and_Health

1. Which of thefollowing is an outcome of effective health programs in theworkplace? a. increased disability payments b. increased absenteeism c. increased employee productivity d. increased health-related employee complaints ANSWER: c 2. 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 ANSWER: c 3. In British Columbia (BC), which of thefollowing 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 theprovinces, including BC ANSWER: c Copyright Cengage Learning. Powered by Cognero.

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4. Tom Jones was recently injured on thejob at ABC Steel Factory. Whose responsibility is it to report theaccident to theWorkers‘ Compensation Board? a. Tom Jones himself b. Tom Jones‘s coworkers c. the government‘s safety officer d. ABC Steel Factory ANSWER: d 5. Which of thefollowing is a common requirement for employers in all jurisdictions in Canada? a. They have to employ a Safety Officer. b. They must store all therelevant data in files located in thehuman 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 theWorker Compensation Boards.

ANSWER: d 6. With respect to theJoint Health and Safety Committees in organizations, which of thefollowing is applicable? a. One member sits on theBoard of Directors. b. There must be both union and employee representation. c. These committees can discipline theemployer and employees. d. They are financially supported by thegovernment.

ANSWER: b 7. 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 ANSWER: d 8. What is thekey goal of workers‘ compensation? a. to return theemployee to theworkplace as soon as possible b. to remind employers and employees about theneed 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.

ANSWER: a 9. Most jurisdictions require theestablishment of health and safety committees with both union and management representation. Which of thefollowing is one of theexpectations of this approach? a. It will educate theunion about theproblems their membership cause. b. It will show theunion how tough management can be. c. It will help to develop a nonadversarial union–management climate. d. It will force theunion not to strike.

ANSWER: c 10. When is theideal time for employee safety training to commence? a. before returning to work after an accident or injury Copyright Cengage Learning. Powered by Cognero.

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b. immediately after an accident or injury c. with new employee orientation d. after receiving thefirst paycheque ANSWER: c 11. Who has theprimary responsibility to inform employees about thehealth and safety requirements in theworkplace? a. the employees themselves b. the employer c. the health and safety committee d. the safety officer ANSWER: b 12. Which of thefollowing 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 ANSWER: a 13. What is thekey role for thesupervisor 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 theneed to work safely ANSWER: d 14. Harry Davis has been found guilty of smoking around a volatile substance in his workplace. It is his first offence after 25 years. theemployer, 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 theprogressive 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 thecourts before making a decision. d. ABC Inc. must involve thegovernment before making a decision.

ANSWER: b 15. Apart from thehuman resource management department, which other unit typically has responsibility for an organization‘s health and safety programs? a. the industrial relations department b. the marketing department c. the operations department d. the finance department ANSWER: a 16. Which of thefollowing work schedules/arrangements results in themost fatigue for workers? a. job rotation b. night shifts c. regular day shifts d. job sharing ANSWER: b 17. What do we call thenumber of injuries and illnesses per 100 full-time employees during a given year?

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a. the incidence rate c. the injury and illnesses rate ANSWER: a

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b. the accident rate d. the safety rate

18. What is theleading cause of worker fatalities each year? a. falls from buildings b. fire c. attacks by coworkers d. motor vehicle crashes ANSWER: d 19. Which of thefollowing is a high-risk work circumstance associated with workplace violence? a. working with information technology b. working as a politician c. working as a teacher d. dealing with theexchange of money ANSWER: d 20. Which category of service workers experiences thehighest rate of violence against them? a. firefighters b. police c. nurses d. bankers ANSWER: c 21. Which of thefollowing is a good measure to prevent workplace violence? a. keeping cash register funds to a minimum b. keeping track of immigrants in theworkplace c. delivering cash by theorganization itself, versus a delivery firm d. keeping a fixed time when cash is picked up ANSWER: a 22. Which category of employees is at thelowest risk of workplace violence? a. insurance agents who visit clients‘ homes b. postal workers c. nurses d. bankers who work in offices ANSWER: d 23. What is thebest way to proactively manage workplace violence? a. develop a zero-tolerance policy for violence b. implement a strenuous disciplinary policy c. report violence to thepolice as soon as it happens d. hire armed guards to oversee workplace activities ANSWER: a 24. Assume that you are a new manager at a manufacturing plant. On your first day, you are on thefactory floor and notice one employee verbally abusing another; a fight was imminent. Which of thefollowing is a wise strategy for you to follow? a. try to separate theindividuals and ask them to see you individually in private b. do not intervene but report it later to theCEO/President c. publicly ask theaggressor to back down, as this would help with developing your authority in theworkplace d. do not get involved as this may escalate thesituation ANSWER: a Copyright Cengage Learning. Powered by Cognero.

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25. What is a common example of a repetitive-motion injury in theworkplace? a. burnout b. carpal tunnel syndrome c. eustress d. depression ANSWER: b 26. Jenny Jones has been working at thesame job—typing almost all day—for thepast five years. She has now damaged her wrist as a result of thework. What is her problem most likely a form of? a. ambidextrosis b. muscular dysfunctions c. cumulative trauma disorder d. systematic trauma ANSWER: c 27. Who is themost likely perpetuator of workplace bullying? a. traumatized employees b. abused employees c. authority figures d. junior employees ANSWER: c 28. What is thebest method to capitalize on thebenefits of video display terminals while safeguarding employee health? a. placing thecomputer monitor to theside of thedesk b. placing thecomputer screen 10 to 25 cm (4 to 9 inches) below eye level c. placing thecomputer screen 30 cm (12 inches) above eye level d. adjusting thebrightness and contrast controls on thescreen to be as high as possible ANSWER: b 29. Which of thefollowing 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 non-smokers.

ANSWER: c 30. Which of thefollowing 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 ANSWER: d 31. Which of thefollowing is considered an element of theWorkplace Hazardous Materials Information System (WHMIS)? a. training b. accidents c. leadership d. compensation ANSWER: a 32. 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 Copyright Cengage Learning. Powered by Cognero.

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ANSWER: d 33. An employee has been diagnosed with depression and possible mental illness. Her manager has organized professional counselling for her as part of theorganizational response to her problems. This counselling is most likely a form of which of thefollowing? a. an employee assistance program b. a depression diagnostic service c. a crisis prevention program d. a mental preparedness program ANSWER: a 34. An employee is showing signs of depression, including decreased energy, irritability, and hostility, in theworkplace.

What should theHR manager do? a. suggest professional help b. diagnose theproblem and urgently try to remedy it c. do nothing, as theproblem will most likely go away d. suspend theemployee so as to prevent workplace violence ANSWER: a 35. If an employee is experiencing personal problems, who is theindividual most likely to refer theworker to thecompany‘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 ANSWER: d 36. Which of thefollowing statements best describes drug testing in theworkplace? 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.

ANSWER: b 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. eustress b. pos-stress c. distress d. fight-or-flight stress ANSWER: a 38. 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 ANSWER: b 39. What‘s a key issue in thedebate on drug testing in Canadian workplaces? a. rewards for testing b. what types of drugs to test for c. who manages thetesting d. potential for privacy violations Copyright Cengage Learning. Powered by Cognero.

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ANSWER: d 40. What is burnout? a. a severe stage of eustress c. a severe stage of distress ANSWER: c

b. a mild stage of eustress d. a mild stage of distress

41. Cathy has been experiencing severe stress on thejob, 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 ANSWER: a 42. When are overachievers most likely to experience burnout? a. when rewards are low b. when thework is not sufficiently challenging c. when unrealistic goals are unattainable d. when work-life balance is achieved ANSWER: c 43. Which of thefollowing statements best describes job-related stress? a. Burnout is thefirst 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.

ANSWER: b 44. Kent Factory Inc. is a sausage plant that has been receiving bad reports in thepress related to its health and safety problems. thereports are causing a loss in profits. Assume that you are thenew HR manager. Which of thefollowing would be one of your first initiatives to deal with theproblems? a. fire theHR staff because they have been ineffective in dealing with theproblems b. alert theCEO that you are not a trained psychologist or a safety officer, so another department should handle theissue c. invite thepress for a tour of thefacilities d. diagnose thecause of theproblems and formulate a plan to deal with them ANSWER: d 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 thetraining does not take into consideration how stressful thejob 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. theHR manager wants to design some programs that can assist these employees in dealing with thestress that is inherent with this type of work.

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45. Refer to Scenario 12.1. If Safe Haven wants to design workshops to help its employees deal with thenegative effect of job-related stress, it could include instructions in all of thefollowing EXCEPT which one? a. relaxation techniques b. coping skills c. off-the-job-training d. listening skills ANSWER: c 46. Refer to Scenario 12.1. Which of thefollowing is a step in theright 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 thephysical factors in theenvironment d. making employees‘ work roles very defined ANSWER: a 47. Refer to Scenario 12.1. Which of thefollowing 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 ANSWER: d Scenario 12.2 Boat Xpress is a shipping firm in a small rural area in Northern Ontario. thecompany hires mainly part-time workers, but has them work full-time hours. This way, thefirm does not have to pay employees benefits or provide them with more than 4 percent vacation pay. theworking conditions at Boat Xpress are very bleak, and health and safety standards are nonexistent. If an employee is injured on thejob, 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 thefirm 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.

48. Refer to Scenario 12.2. Boat Xpress, like any other Canadian firm, has certain duties. Which of thefollowing is NOT a duty of Boat Xpress? a. report all accidents that cause injuries to theWorkers‘ Compensation Board b. provide safety training to all employees c. reward employees for safe work practices d. prove due diligence has been carried out ANSWER: c 49. Refer to Scenario 12.2. Which of thefollowing 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 theright to refuse unsafe work without fear of reprisal d. reporting concerns of hazardous working conditions to supervisors, which will trigger investigations ANSWER: b Copyright Cengage Learning. Powered by Cognero.

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50. Refer to Scenario 12.2. Boat Xpress is violating theoccupational health and safety regulations. Which of thefollowing is accurate about thepenalties 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 ANSWER: a 51. Costs associated with sick leave, disability payments, replacement of employees who are injured or killed, and workers‘ compensation far exceed thecosts of maintaining a safety and health program. a. True b. False a. True b. False ANSWER: True 52. Occupational health and safety are regulated solely by thefederal government. a. True b. False a. True b. False ANSWER: False 53. An occupational illness is any abnormal condition or disorder caused by exposure to environmental factors associated with employment. a. True b. False a. True b. False ANSWER: True 54. There is legislation pertaining to occupational health and safety in every province and territory in Canada. a. True b. False a. True b. False ANSWER: True 55. Employers have many responsibilities in providing safe workplaces for employees. a. True b. False a. True b. False ANSWER: True 56. Employees do not have any specific duties related to their safety. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: False 57. Once informed by theemployer of safety hazards or health regulations, it is theemployee‘s responsibility to comply with occupational health and safety legislation. a. True b. False a. True b. False ANSWER: False 58. Health and safety committees in theworkplace are comprised only of management representatives. a. True b. False a. True b. False ANSWER: False 59. Penalties for violations of health and safety regulations include substantial fines, as well as jail terms. a. True b. False a. True b. False ANSWER: True 60. In Canada, there are over 1 million work-related injuries each year. a. True b. False a. True b. False ANSWER: True 61. thegoal of workers‘ compensation is to return theemployee to work as soon as possible. a. True b. False a. True b. False ANSWER: True 62. An occupational injury is any cut, fracture, sprain, or amputation resulting from a workplace accident. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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63. thedefinitions of accidents and injuries have expanded to include stress. a. True b. False a. True b. False ANSWER: True 64. theemphasis in workers‘ compensation has been shifting to creating safer workplaces. a. True b. False a. True b. False ANSWER: True 65. An individual who suffers clinical depression after a serious accident is eligible for workers‘ compensation while receiving treatment for theaccident. a. True b. False a. True b. False ANSWER: True 66. Very few Canadian employers have a formal safety program. a. True b. False a. True b. False ANSWER: False 67. thesuccess of a safety program depends largely on theHR department. a. True b. False a. True b. False ANSWER: False 68. Health and safety procedures should be an important part of new employee orientation. a. True b. False a. True b. False ANSWER: True 69. It is thesupervisor‘s duty to ensure that workers use or wear safety equipment, devices, or clothing. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: True 70. An employee‘s supervisor is theprimary source of safety-related information. a. True b. False a. True b. False ANSWER: True 71. A supervisor‘s primary obligation to employee safety is to communicate safety standards and train employees in safe practices. a. True b. False a. True b. False ANSWER: False 72. theInternet and other forms of information technology can play a key role in health and safety programs. a. True b. False a. True b. False ANSWER: True 73. Safety incentive programs are only effective when they are based on monetary rewards. a. True b. False a. True b. False ANSWER: False 74. 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 a. True b. False ANSWER: True 75. A serious violation of a safety rule may be grounds for employee termination, even for a first offence. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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76. themembers of thesafety committee should investigate only accidents resulting in serious injuries. a. True b. False a. True b. False ANSWER: False 77. In Canada, provinces can make changes to health and safety laws. a. True b. False a. True b. False ANSWER: True 78. Employees who work alone are at a lower risk of encountering workplace assaults. a. True b. False a. True b. False ANSWER: False 79. Crisis management teams are composed of both hourly and managerial employees who develop action plans to respond to violent situations. a. True b. False a. True b. False ANSWER: True 80. Crisis management teams should also concern themselves with theaftermath of violence, such as theguilt and fear employees may have. a. True b. False a. True b. False ANSWER: True 81. Research suggests that exposure to psychological aggression at work is associated with reduced work performance. a. True b. False a. True b. False ANSWER: True 82. It is generally recognized that there is little that management can do to prevent cumulative trauma disorders (repetitive motion injuries).

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a. True b. False a. True b. False ANSWER: False 83. Video display terminals (VDTs) have become a major safety concern within theoffice environment. a. True b. False a. True b. False ANSWER: True 84. Employees who perform manual tasks on a continual basis are strong candidates for carpal tunnel syndrome. a. True b. False a. True b. False ANSWER: True 85. One way to help eliminate health hazards in theworkplace is via ergonomics. a. True b. False a. True b. False ANSWER: True 86. Cumulative trauma disorders are repetitive-motion injuries. a. True b. False a. True b. False ANSWER: True 87. To minimize thenegative effects of computer use, themonitor should be placed at an angle view, above theuser‘s line of sight. a. True b. False a. True b. False ANSWER: False 88. theWorkplace Hazardous Materials Information System (WHMIS) was developed to provide a common information system for labelling dangerous work activities. a. True b. False a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False 89. Employee morale can be affected by accidents and illnesses attributed to theworkplace. a. True b. False a. True b. False ANSWER: True 90. Improved employee health is associated with lower levels of absenteeism and increased efficiency. a. True b. False a. True b. False ANSWER: True 91. Personal crises involving marital, family, financial, or legal matters are themost prevalent employee problems. a. True b. False a. True b. False ANSWER: True 92. Workplace signs of depression include decreased energy, irritability, and memory problems. a. True b. False a. True b. False ANSWER: True 93. Alcoholism primarily affects blue-collar workers. a. True b. False a. True b. False ANSWER: False 94. Most employers are implementing extensive drug testing and immediately terminating employees that are found to be using illegal drugs. a. True b. False a. True b. False ANSWER: False 95. Stress requires coping behaviours.

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a. True b. False a. True b. False ANSWER: True 96. Stress is any demand on theindividual that requires coping behaviour. a. True b. False a. True b. False ANSWER: True 97. Eustress is thefeeling of euphoria one gets after a strenuous workout. a. True b. False a. True b. False ANSWER: False 98. Inadequate recognition for a job well done can be a major stressor. a. True b. False a. True b. False ANSWER: True 99. Burnout is an early stage of distress. a. True b. False a. True b. False ANSWER: False 100. Stress that is harmful to some employees may be healthy for others. a. True b. False a. True b. False ANSWER: True 101. Briefly describe theduties of employers, supervisors, and workers with respect to health and safety legislation.

ANSWER: 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 theapplicable 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 thework and its associated hazards. Employers in all jurisdictions are required to Copyright Cengage Learning. Powered by Cognero.

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report accidents that cause injuries and diseases to theWorkers‘ Compensation Board. Accidents resulting in death or critical injuries must be reported immediately; theaccident 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 thesafety 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 theuse of protective equipment.

102. Compare and contrast thetwo general types of stress. Include an example of each.

ANSWER: 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 thedue 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 theenvironment. 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 themore destructive distress. Example: Sue Smith just received a major promotion. While thenew 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.

103. You have just been asked by your department manager to write a violence prevention policy for your department.

What areas should be covered in thepolicy?

ANSWER: To develop a policy on violence prevention, it would be wise to draw upon theCanadian 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 theworkplace 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.

104. Briefly describe thekey sources of job-related stress.

ANSWER: There are many sources of workplace stress. However, research suggests that four factors have a major influence on employee stress: High demand: having too much to do in too short a time High effort: having to expend too much mental or physical energy over too long a period Low control: having too little influence over theway a job is done on a day-to-day basis Low reward: receiving inadequate feedback on performance and no recognition for a job well done There are other recognized job stressors: layoffs and organizational restructuring; disagreements with managers or fellow employees; prejudice because of age, gender, race, or religion; inability to voice complaints; and poor working conditions. Even minor irritations such as a lack of privacy, unappealing music, Copyright Cengage Learning. Powered by Cognero.

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and other conditions can be distressful to one person or another.

Chapter_13_Employee_Rights_and_Discipline

1. Tammy Faye, a university student, is doing research on cases decided by theSupreme Court on employee dismissals for theft. Which of thefollowing regimes of employment law is Tammy researching? a. criminal law b. civil law c. statutory regulation d. common law ANSWER: d 2. Which of thefollowing 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 thewritten contract does not expressly deal with thematter. c. It exists after an employee passes his or her probation period. d. It covers approximately 90 percent of theCanadian workforce.

ANSWER: b 3. ABC Corporation induced engineers to leave their old jobs through thepromise of better benefits. However, when theengineers started to work for ABC, thecompany 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 ANSWER: a 4. 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 ANSWER: a 5. In British Columbia, members of theprovincial 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 ANSWER: b 6. Assume that thegoverning political party does not like how some employers have been taking advantage of a loophole in thelaw to pay women discriminatory wages and it wants this situation corrected. What should thegovernment do? a. introduce a motion in thelegislature to amend thelegislation b. ask women to challenge their employers in court c. call thejudges and instruct them to change their decisions d. appeal to thecases to theInternational Labour Office ANSWER: a 7. 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 thecourts. What do you think Bob will Copyright Cengage Learning. Powered by Cognero.

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b. constructive dismissal d. wrongful dismissal

8. Johnny Damon, thehuman resource manager at Damon Electric Utility, wants to reduce thepay for one of his employees. thepay is included in theemployee‘s employment contract. How can Mr. Damon legally change theemployee‘s pay? a. get theemployee to agree to thechange and provide a new benefit b. adjust thepay unilaterally, as Mr. Damon is thehuman resource manager c. get a lawyer to make thechange d. get top management to make thechange ANSWER: a 9. Under theemployment-at-will concept, who can terminate theemployment relationship? a. employees, unions, or employers b. employers or thegovernment c. employees or employers d. employees or thegovernment ANSWER: c 10. theHR 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 theamount of notice? a. Paul‘s salary and theamount of leave previously taken b. Paul‘s length of service and thenature of his work c. Paul‘s education and position in thefirm d. Paul‘s education and length of service ANSWER: b 11. Which of thefollowing 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 ANSWER: d 12. What is another term for ―case law‖? a. legal principles b. common law c. statutory law d. trade union law ANSWER: b 13. 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 theemployer c. because employees often lose these cases in courts d. because it is thelaw ANSWER: b Copyright Cengage Learning. Powered by Cognero.

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14. Pay equity legislation an example of what type of law? a. statutory law b. common law c. case law d. collective bargaining ANSWER: a 15. thecourts have ruled that employers can monitor thecomputer use and Internet access of employees when they are at work. What is a key reason thecourts give for this? a. Employers need to protect themselves against lawsuits. b. It is integral to theimplied employment contract. c. Organizations need this right so as to compete globally. d. The employer owns thecomputer.

ANSWER: d 16. In which of thefollowing scenarios can an employer summarily dismiss an employee in a non-union environment for his or her activities outside of theworkplace? a. The employee talks to fellow workers about thepossible benefits of a union in theworkplace. 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 theunion.

ANSWER: c 17. Which of thefollowing 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 theconduct. 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.

ANSWER: a 18. After an investigation by therelevant 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 ANSWER: a 19. In which environment would a progressive discipline system most likely exist? a. a unionized firm b. a small, non-union firm c. a large, non-union firm d. a consulting firm ANSWER: a 20. 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 theemployer have to prove, among other things, to successfully argue its case? a. that John usually does thesame at work b. that John caused damage to thereputation of theorganization Copyright Cengage Learning. Powered by Cognero.

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c. that John is not a good employee d. that John was not given permission to attend thegame ANSWER: b 21. What is thefoundation of an effective disciplinary system? a. well-informed managers b. setting of organizational rules c. well-informed employees d. an effective punishment system ANSWER: b 22. In regard to thedocumentation in employee disciplinary cases, what is themost 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 thedocumentation. d. Managers have problems understanding what good documentation is.

ANSWER: d 23. What is thekey purpose of theinvestigative interview with an employee in a disciplinary case against him or her? a. to train HR managers with their investigative skills b. to give theemployee an opportunity to explain his or her actions and behaviours in thecase c. to ensure that there is a recording of theinterview for thecourts if theemployer is challenged d. to get thepolice involved early in thecase ANSWER: b 24. What is theterm 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 ANSWER: d 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 ANSWER: d 26. thehuman resource manager has invited Tammy for a meeting to discuss reports of her misconduct. thetwo 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 ANSWER: c 27. thestep-review procedure in non-unionized organizations is similar to which of thefollowing disciplinary approaches? a. collective bargaining b. hot-stove discipline Copyright Cengage Learning. Powered by Cognero.

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d. progressive discipline

28. What is another term for positive discipline? a. non-punitive discipline b. progressive discipline c. cooperative discipline d. non-regulated discipline ANSWER: a 29. In a typical progressive discipline program, what step immediately precedes thetermination of theemployee? a. suspension b. formal discussions c. a ―pre-warning‖ d. a written warning ANSWER: a 30. Using a positive discipline approach, which of thefollowing is thebest 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 theprocess of finding a replacement employee. c. It is mandatory because of thelaw. d. It gives an employee time to consider whether he or she wishes to remain with theorganization ANSWER: d 31. Mary has been given a reminder to self-evaluate her actions in a recent disciplinary case against her. What type of disciplinary procedure is themost likely being used here? a. progressive discipline b. positive discipline c. step-review discipline d. cooperative discipline ANSWER: b 32. Where should termination meetings with employees be held? a. at theemployee‘s workstation b. in a neutral location, such as a conference room c. outside theemployer‘s premises d. in theHR manager‘s office ANSWER: b 33. 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.

ANSWER: b 34. Which of thefollowing best describes alternative dispute resolution mechanisms? a. They are used only in unionized organizations. b. They will likely replace theneed for grievance procedures.

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c. They are used in nonunion organizations. d. They are forms of progressive discipline.

ANSWER: c 35. In a nonunion workplace, which of thefollowing 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 ANSWER: a 36. In a disciplinary case against Mandy, her employer has set up a committee to hear thecase. thecommittee 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 ANSWER: a 37. 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 thecourts in theevent that dismissals are challenged by employees d. to give employees a sense of justice ANSWER: d 38. Which of thefollowing is a key problem with open-door polices in settling employee complaints? a. The problems are often delegated to thesupervisory level. b. The meetings usually lead to toxic environments. c. Too many lawyers get involved. d. Workers are reluctant to approach managers with their complaints.

ANSWER: d 39. British Columbia Gold Inc. is planning to implement an open-door policy to deal with employee complaints. Which of thefollowing 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 theprocedure and encourage employees to ―start at thetop.‖ d. Managers must emphasize that they can offer solutions only on an advisory basis.

ANSWER: b 40. theUniversity 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 themost likely title of this person‘s job? a. complaint officer b. hearing judge c. arbitrator d. ombudsperson ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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41. Which of thefollowing is a major weakness of an open-door policy of settling grievances in theworkplace? 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.

ANSWER: d 42. Which of thefollowing processes involves theuse of a third party to settle disputes and where theparties voluntarily try to settle theissue? a. mediation b. arbitration c. court orders d. strikes ANSWER: a 43. Which of thefollowing processes involves theuse of a third party to settle disputes and where theparties are bound by thedecision? a. mediation b. arbitration c. conciliation d. strikes ANSWER: b 44. What is therelationship between organizational ethics and thelaw? a. They mean thesame thing. b. Ethics go beyond thelaw. c. Law goes beyond ethics. d. Neither is relevant for organizations.

ANSWER: b Scenario 13.1

The Beer Pitt Inc. is a Canadian brewery that distributes premium lager beers across thecountry. Over theyears, thecompany has been having problems with employees drinking on thejob, resulting in arguments, fights, and back-ups on theproduction line. Because employees are unionized, it has always been difficult to determine that drinking on thejob is thecause of theproblems thecompany is experiencing since these problems have been occurring for decades. Recently, however, an employee was injured. theHR department wants to develop and implement new sets of disciplinary policies and procedures to help curb these problems.

45. Refer to Scenario 13.1. Which of thefollowing accurately represents some of thesteps in thedisciplinary model that theBeer Pitt needs to implement? a. violation of rules, collective agreements, investigation, documenting theresults 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 ANSWER: b 46. Refer to Scenario 13.1. theBeer Pitt must document all misconduct. Which of thefollowing is NOT true about thecompleteness of theinformation? a. names of witnesses to theincident are not needed b. behaviour exhibited by employees need not be included Copyright Cengage Learning. Powered by Cognero.

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c. consequences for action or behaviour are not important d. date, time, and location of theincident are not important ANSWER: a 47. Refer to Scenario 13.1. Assume that theBeer Pitt might be better off using positive discipline given that thecompany has allowed employees to behave this way for decades. Which of thefollowing is NOT a focus of this approach? a. employees take total responsibility for resolving theproblems b. nothing is imposed by management c. all solutions and affirmations are made by management d. nonpunitive discipline replaces threats and punishment with encouragement ANSWER: c Scenario 13.2 Woodbridge Group Inc. (WG), a Canadian consultancy firm, is having a hard time keeping all its employees as a result of thelast recession. Most of its clients are based in theUnited States, and tighter restrictions there have led to some clients severing business ties with WG. With theloss of business, thecompany claims it cannot afford to continue paying employees even though thecompany 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. 48. Refer to Scenario 13.2. Either theemployer or theemployee can terminate theemployment contract. What does WG need to do to avoid expensive lawsuits for wrongful dismissal? a. pay employees what thecompany can afford b. pay only theamount stipulated by employment standards legislation c. allow thecourt to decide what is reasonable notice d. provide employees with theamount of notice specified in thecontract ANSWER: d 49. Refer to Scenario 13.2. If WG terminates thecontracts as planned and employees sue for wrongful dismissal, which of thefollowing does NOT play a role in thejudge‘s decision to award reasonable notice? a. the employee‘s age and availability of similar employment given theemployee‘s experience and training b. the employer‘s ability to pay c. the nature of thejob performed by theemployee d. the length of service with theemployer ANSWER: b 50. Refer to Scenario 13.2. WG wants to avoid being sued for wrongful dismissal as it may cost thecompany more than what is stipulated in thecontract. Which of thefollowing 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.

ANSWER: c 51. Employee rights are granted to workers by thecourts, legislatures, and/or employers. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: True 52. Employees have statutory rights that are derived from contracts. a. True b. False a. True b. False ANSWER: False 53. Obligation of theemployer to maintain a safe workplace is an implied employment contract. a. True b. False a. True b. False ANSWER: True 54. Implied contract terms are terms that judges read into employment contracts when thewritten contract does not expressly deal with thematter. a. True b. False a. True b. False ANSWER: True 55. Two different legal regimes govern theemployment relationship: common law and statutory law. a. True b. False a. True b. False ANSWER: False 56. theemployment-at-will doctrine states that either theemployee or theemployer may terminate theemployment relationship for any reason. a. True b. False a. True b. False ANSWER: True 57. Employees are rarely successful when they attempt to sue employees for wrongful dismissal. a. True b. False a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False 58. 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 a. True b. False ANSWER: True 59. In law, negligence is thefailure to honour established contracts. a. True b. False a. True b. False ANSWER: False 60. 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 a. True b. False ANSWER: True 61. An example of a statutory right is an employee right to a safe workplace. a. True b. False a. True b. False ANSWER: True 62. An employee‘s legal and moral rights to privacy are clear and well-defined. a. True b. False a. True b. False ANSWER: False 63. thePersonal Information Protection and Electronic Documents Act (PIPEDA) regulates collective bargaining. a. True b. False a. True b. False ANSWER: False 64. thePersonal Information Protection and Electronic Documents Act (PIPEDA) is federal legislation.

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a. True b. False a. True b. False ANSWER: True 65. Because personnel files are theemployer‘s property, an employee may be barred from seeing his or her file. a. True b. False a. True b. False ANSWER: False 66. Employees are correct in assuming that their rights to privacy extend to email and voice mail messages. a. True b. False a. True b. False ANSWER: False 67. Managers have virtually unlimited discretion in taking disciplinary action against an employee. a. True b. False a. True b. False ANSWER: False 68. Increasing numbers of companies are regulating social media at work. a. True b. False a. True b. False ANSWER: True 69. A major responsibility of theHR department is to develop, and to have top management approve, its disciplinary policies and procedures. a. True b. False a. True b. False ANSWER: True 70. theprimary responsibility for preventing or correcting disciplinary problems rests with theHR department. a. True b. False a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False 71. In order to be effective, employee discipline must take place as soon as possible after theproblem is verified. a. True b. False a. True b. False ANSWER: True 72. thefailure to document earlier actions often results in management not imposing disciplinary penalty when a transgression is committed. a. True b. False a. True b. False ANSWER: True 73. Positive discipline is based on a mutual problem-solving approach, but resolutions are still mandated by theHR department. a. True b. False a. True b. False ANSWER: False 74. In an organizational setting, discipline should be viewed as an educational process rather than a punishment. a. True b. False a. True b. False ANSWER: True 75. Management‘s failure to communicate rules to employees is one of themajor reasons for reversing disciplinary action. a. True b. False a. True b. False ANSWER: True 76. Disciplinary rules should be widely disseminated and known to all employees. a. True b. False a. True b. False ANSWER: True 77. One of themajor reasons for investigative interviews is to establish thefacts surrounding an employee‘s offence.

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a. True b. False a. True b. False ANSWER: True 78. Documentation of employee misconduct includes stating theimprovement expected by theemployer. a. True b. False a. True b. False ANSWER: True 79. It is not necessary that theemployee be given an opportunity to explain his or her side of theissue during theinvestigative interview. a. True b. False a. True b. False ANSWER: False 80. thestep between a verbal warning and termination in progressive discipline is thedisciplinary interview. a. True b. False a. True b. False ANSWER: False 81. Progressive discipline is designed to force an employee to improve his or her performance. a. True b. False a. True b. False ANSWER: False 82. thecorrect sequence of progressive discipline is as follows: (1) written warning, (2) oral warning, (3) suspension, and (4) discharge. a. True b. False a. True b. False ANSWER: False 83. Bill has been found guilty of theft, a termination offence. Before he is dismissed, his manager must apply all thesteps of progressive discipline. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: False 84. Positive discipline is different from progressive discipline in that it is based on a ―problem-solving‖ approach to discipline. a. True b. False a. True b. False ANSWER: True 85. Positive discipline relies on encouragement given to employees as a way to improve performance. a. True b. False a. True b. False ANSWER: True 86. When applying either progressive or positive discipline, it is important to maintain complete records of each step of theprocedure. a. True b. False a. True b. False ANSWER: True 87. Dismissal is thefinal disciplinary action. a. True b. False a. True b. False ANSWER: True 88. Positive discipline requires a cooperative environment. a. True b. False a. True b. False ANSWER: True 89. Whatever thereason for dismissal, it should be done with primary concern for theorganization. a. True b. False a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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90. Alternative dispute resolution (ADR) is a relatively recent development utilized in non-union workplaces. a. True b. False a. True b. False ANSWER: True 91. Step-review systems involving non-union employees are very similar to grievance procedures used in union contracts. a. True b. False a. True b. False ANSWER: True 92. Peer-review boards consist only of people whose jobs are similar to that of theperson appearing before theboard. a. True b. False a. True b. False ANSWER: False 93. A peer-review system, also called a ―complaint committee,‖ is composed only of people whose jobs are similar to theperson appearing before theboard. a. True b. False a. True b. False ANSWER: False 94. theJuniper 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 a. True b. False ANSWER: True 95. With an open-door policy, decisions tend to be consistent across managers. a. True b. False a. True b. False ANSWER: False 96. An ombudsperson solves problems through negotiation and mediation activities between supervisors and subordinates. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: True 97. An ombudsperson helps management by providing a check on itself. a. True b. False a. True b. False ANSWER: True 98. Mediation is a formal process resulting in compromise. a. True b. False a. True b. False ANSWER: False 99. Ethics can be defined as a set of standards of acceptable conduct and moral judgment. a. True b. False a. True b. False ANSWER: True 100. Organizations are required by law to comply with ethical guidelines. a. True b. False a. True b. False ANSWER: False 101. HR departments strive to ensure ethical treatment of employees by communicating theorganization‘s values and communicating and enforcing standards throughout theorganization. a. True b. False a. True b. False ANSWER: True 102. What is progressive discipline? How does it differ from positive discipline?

ANSWER: Progressive discipline is theapplication of corrective measures by increasing degrees. theintent is to stop theundesired behaviour using theminimum 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 thebehaviour is extinguished. If thebehaviour cannot or will not be altered, theprogression ends at terminating theemployee. In short, using progressive discipline allows theemployer several opportunities to Copyright Cengage Learning. Powered by Cognero.

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correct undesired employee behaviour before terminating theemployment 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, theemployee 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, thepositive discipline relationship seems more like parental guidance than theadversarial relationship inherent in theprogressive model.

103. What is thecommon law of employment?

ANSWER: There are three regimes of employment law: statutory regulation, collective bargaining and arbitration law, and thecommon law.

The employment contract governs therights and obligations of employers and employees. However, often there is no written contract, or theterms of thecontract are vague or do not apply to a situation. As a result, there may be disagreements on theemployment contract. Whenever a dispute arises about themeaning and application of an employment contract, either party to thecontract may file a lawsuit in thecourts and ask a judge (and sometimes a jury) to decide what thecontract means or how it was intended to apply in a particular circumstance. thejudges‘ decisions are recorded and are considered in future disputes involving similar issues.

Over time, a huge body of ―case law‖ has been compiled that considers themeaning and application of employment contracts in an endless array of employment scenarios. This body of law is known as thecommon law of employment.

The courts have developed a long list of implied contract terms that are incorporated into all employment contracts, unless a written term in thecontract overrides theimplied term. For example, probably themost wellknown implied term is therequirement for both theemployer and theemployee to give reasonable notice that they are terminating theemployment contract. Other examples include an obligation of theemployer to treat employees with decency, civility, respect, and dignity; and an obligation of theemployer to maintain a safe workplace.

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: To treat Susan in a fair and equitable manner, a sound decision would be to send Susan to thenext 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 theforeign assignment, he or she could face thepossibility of being accused of gender discrimination. As a consequence, her manager must provide Susan with thesame opportunities that would be provided to a male in her position.

Second, beyond what is required by thelaw is thequestion of organizational ethics. Ethics are defined as theset of standards of acceptable conduct and moral judgment that provide cultural guidelines that help decide between proper and improper behaviour. In this situation, theethical 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 theorganization‘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.

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Chapter 14 - theDynamics of Labour Relations 1. Which of thefollowing administers theCanada Labour Code? a. the Supreme Court b. the Federal Human Rights Commission c. Canada Industrial Relations Board d. the federal government ANSWER: c 2. Which of these statements best describes unionization rates in Canada over thepast few decades? a. Overall, unionization rates have been declining. b. Private sector unionization rates have been increasing. c. Unionization rates have been declining in Canada, except in Ontario. d. Public sector unionization rates have experienced a steeper decline versus private sector unionization rates.

ANSWER: a 3. Gary Walters has applied for a job at a factory. He was told that he has to join theunion if he wants thejob. What do you call this provision in thecollective agreement? a. an illegal clause b. a union shop c. compulsory unionization d. an unfair labour practice ANSWER: b 4. Which of thefollowing 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 ANSWER: d 5. What is theoverarching 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 ANSWER: c 6. Jason Thomas recently joined ABC Inc. to work on theshipping wharf as a loader. He has been told that he must join theunion 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 ANSWER: a 7. Which of thefollowing is thestrongest 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 Copyright Cengage Learning. Powered by Cognero.

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ANSWER: b 8. Mary works in thebasement of her employer‘s home sewing pants. What is one of thebiggest 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.

ANSWER: b 9. In collective bargaining, what does theterm ―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 ANSWER: a 10. Which of thefollowing groups are most likely to initiate organizing campaigns? a. labour relations boards b. union organizers c. social activists d. employees ANSWER: d 11. Yorkville Tire Manufacturing Company has been experiencing bad management–employee relations for almost two years. Jack Pratt, one of theleaders among theemployees, wants to help in unionizing theemployees. He has met with most of theemployees. What should he do next? a. ask theworkers to go on strike to put pressure on thecompany b. form an in-house organizing committee c. appeal to a broader community—including academics and international agencies—to put pressure on theemployer d. ask thelabour relations board to intervene ANSWER: b 12. A union was recently certified at ABC Corporation after 55 percent of theemployees signed authorization cards for theunion 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 ANSWER: b 13. What is thefirst step in theorganizing process in forming unions? a. application to thelabour relations board b. employee–union contact c. formation of an in-house organizing committee d. election of a bargaining committee ANSWER: a Copyright Cengage Learning. Powered by Cognero.

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14. What happens when thelabour relations board is satisfied that theunion has therequired membership support for union formation? a. It will institute a collective agreement. b. It will file thecase in a court for a formal decision. c. It will request a formal re-count of thevotes. d. It will certify theunion.

ANSWER: d 15. 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 ANSWER: c 16. 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 ANSWER: d 17. According to Canadian labour relations legislation, which of thefollowing employer actions is prohibited during an organizing drive? a. getting legal advice b. stating theemployer is ready to listen to employees and discuss any issue c. increasing wages during thecertification process d. presenting its case to theemployees ANSWER: c 18. 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 theunion d. bargaining in good faith ANSWER: d 19. Which of thefollowing 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 theauthorization cards signed? a. threats by other unions to go on strike if theworkplace does not get its own union b. unfair labour practices committed by theemployer in theorganizing process c. the need by government for labour relations peace in workplaces d. advice from theInternational Labour Office ANSWER: b 20. Wilem Corporation is considering strategies to remain union-free. Which of thefollowing is NOT a useful strategy in this respect?? a. offering competitive wages and benefits Copyright Cengage Learning. Powered by Cognero.

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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 ANSWER: b 21. Which of thefollowing 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.

ANSWER: b 22. ABC Inc. has exclusive rights, as reflected in thecollective agreement, to hire senior staff. What is theterm used for such exclusive rights? a. management rights b. human rights c. management power d. collective bargaining rights ANSWER: a 23. Within a bargaining unit, how many workers must vote against theunion so as to decertify it? a. 40 percent, plus one b. 41 percent c. 50 percent, plus one d. 51 percent ANSWER: c 24. What type of unions do carpenters and masons usually belong to? a. industrial unions b. regional unions c. central unions d. craft unions ANSWER: d 25. thefull-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 ANSWER: c 26. Which of thefollowing 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 ANSWER: a 27. In theUnited States, thekey central federation of unions is called theAFL-CIO. In Canada, what is thename of theorganization that does similar work? a. the Canadian Auto Workers Union b. the Canadian Labour Congress c. the Labour Organization d. the Trades Union Congress ANSWER: b Copyright Cengage Learning. Powered by Cognero.

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28. Unlike many unions in Europe, most of thebargaining and decision making for unions in Canada occurs at which of thefollowing levels? a. the international level b. the national level c. the sectoral level d. the local level ANSWER: d 29. Which of thefollowing 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) ANSWER: d 30. Lee Chen works is an employee of thenational union. He is involved with negotiating thecollective bargaining agreement with theemployer 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 ANSWER: a 31. Omar Mohammed represents theinterests 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 ANSWER: b 32. Unions try to ensure that unionized employees get similar wages and benefits across unionized organizations. What is theeffect 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.

ANSWER: b 33. What is a key difference between public sector and private sector labour relations? a. In theprivate sector, thefoundation is economic, whereas in thepublic sector it is political. b. Private sector unions are more socialist. c. Private sector unions are larger in Canada. d. Public sector unions have a more comprehensive right to strike.

ANSWER: a 34. Assume that theCanadian Union of Public Employees (CUPE) is representing essential workers in a hospital. thehospital‘s administration and theunion 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 Copyright Cengage Learning. Powered by Cognero.

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ANSWER: b 35. ABC Corporation and theunion 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 thefinal settlement will be one that either ABC Corporation or theunion offers. What is this settlement an example of? a. binding conciliation b. compulsory binding arbitration c. final offer arbitration d. compulsory conciliation ANSWER: c 36. Developing likely union proposals, lists of demands, and a contingency plan for operating in theevent of a strike are part of which of thefollowing? a. compulsory binding arbitration b. an employer‘s bargaining strategy c. a union‘s bargaining strategy d. good faith bargaining ANSWER: b 37. In thecollective bargaining model, what is thearea within which theunion and employer are willing to concede when bargaining? a. bargaining scope b. bargaining range c. contingency operating plan d. bargaining zone ANSWER: d 38. What is thebasis of interest-based bargaining? a. identification and resolution of mutual interests b. identification and resolution of self-interests c. resolution of issues through interest arbitration d. resolution of issues through interest conciliation ANSWER: a 39. 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 ANSWER: d 40. thecreation of a relationship for thefuture based on trust, understanding, and mutual respect is thebasis of which of thefollowing? a. good faith bargaining b. traditional bargaining c. interest-based bargaining d. adversarial bargaining ANSWER: c 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 theunion. b. The union will definitely go on strike because it has an overwhelming mandate to do so.

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c. Management will lose in thebargaining. d. The union will have strengthened its bargaining power.

ANSWER: d 42. How can thebargaining 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 ANSWER: a 43. Why might pickets prevent trucks and railcars from entering a struck business? a. because picketing during a strike carries a legal obligation on thepart of theemployer to cease operations, including delivery of goods and materials b. because unions often refuse to cross another union‘s picket line c. because theunion has a legal right to obstruct thebusiness of theemployer theunion is striking against d. because operators of trucks and railcars must get permission from thepicketing union to enter thepremises ANSWER: b 44. Which of thefollowing is a strategy that management can use to increase its bargaining power? a. picketing exercises b. a strike c. a strike vote d. a lockout ANSWER: d 45. What do we call theactions of a third party who has thepower to impose a settlement when theissue relates to theadministration of thecollective agreement? a. mediation b. rights arbitration c. interest arbitration d. conciliation ANSWER: b 46. What do we call a neutral third party who resolves labour disputes by issuing a final decision that theparties must accept? a. an arbitrator b. a conciliator c. a mediator d. a chief executive officer ANSWER: a 47. Which clause holds that ―management‘s authority is supreme in all matters except those conceded in thecollective 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 ANSWER: c 48. Tim James is allowed to choose whether he wants to become a member of theunion 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 ANSWER: a Copyright Cengage Learning. Powered by Cognero.

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49. In which of thefollowing situations is grievance handling most successful? a. when union stewards are selected by management b. when supervisors are formally trained in theterms of thelabour agreement and counselling skills c. in paternalistic management systems d. in nonunionized businesses ANSWER: b 50. What is a key benefit of thegrievance procedure in unionized organizations? a. It allows for thesettlement 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 themanagement rights clause.

ANSWER: a 51. What is thearbitrator‘s responsibility in a dispute? a. to interpret theintent of thelabour agreement b. to get theparties to work together to solve their differences c. to mandate how thegrievance will be resolved d. to decide thecase without passing judgment ANSWER: c 52. thefactors that arbitrators use when deciding cases are thewording of thelabour agreement, thesubmission agreement, thetestimony and evidence offered, and which of thefollowing? a. the truthfulness of witnesses b. the preferences of thegrievant c. arbitration criteria or standards d. the concept of reasonable doubt ANSWER: c 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 thelist goes on. Employees have tried to organize before, but management fired them and threatened theremaining workers. A new employee decided that theworking 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.

53. Refer to Scenario 14.1. Which step is NOT part of theorganizing 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 ANSWER: c 54. Refer to Scenario 14.1. Management does not have theright to fire employees for organizing. theright of workers to join unions was established back in 1948 by which of thefollowing?

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a. the Industrial Relations Disputes and Investigation Act b. Ontario Labour Relations Act c. Canada Labour Code d. Labour Relations Board ANSWER: a 55. Refer to Scenario 14.1. Employees are very concerned about therepercussions of thecompany finding out that they are seeking union representation. Which of thefollowing 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 theworking conditions of employees because they actively work for theunion d. voluntarily recognize and accept a union ANSWER: d 56. 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 ANSWER: a Scenario 14.2 Calendars ―R‖ Us Ltd. produces calendars for middle and high schools in Ontario. Calendars ―R‖ Us started back in 2006 and today has over 60 employees. About two years ago, theemployees organized and obtained union certification. To date, theunion has not successfully negotiated a collective agreement. Employees are not happy with theprogress theunion has made, and much of theconcerns they have had (wages, benefits, training, etc.) have not been addressed. Calendars ―R‖ Us employees feel that theunion is more interested in serving theneeds of thecompany and are looking to find a replacement.

57. Refer to Scenario 14.2. Calendars ―R‖ Us employees want to change their union. Before they can decertify, all of thefollowing must be in place EXCEPT which one? a. determine whether bargaining was done in good faith b. determine whether theunion has failed to bargain c. determine whether employees want to be represented by another union d. decision by themajority of bargaining unit members that they do not want to be represented by theunion ANSWER: a 58. Refer to Scenario 14.2. What are thesteps in thecollective bargaining process that theunion and Calendars ―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 ANSWER: b 59. Unions influence labour legislation and HR policies and practices. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: True 60. 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 a. True b. False ANSWER: False 61. Labour relations in Canada are regulated by federal and provincial laws. a. True b. False a. True b. False ANSWER: True 62. theCanada Industrial Relations Board administers and enforces theCanada Labour Code. a. True b. False a. True b. False ANSWER: True 63. thefirst step in thelabour relations process is an application to thelabour relations board. a. True b. False a. True b. False ANSWER: False 64. 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 a. True b. False ANSWER: True 65. 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 a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True 66. If an employee personally decides that thebenefits will outweigh thecosts of joining theunion, then she or he is likely to join. a. True b. False a. True b. False ANSWER: True 67. Many employees unionize because of economic needs. a. True b. False a. True b. False ANSWER: True 68. 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 a. True b. False ANSWER: True 69. thefirst step in organizing begins when employees and union officials meet to explore thepossibility of unionization. a. True b. False a. True b. False ANSWER: True 70. In Canada, most organizing campaigns are initiated by employees rather than by union organizers. a. True b. False a. True b. False ANSWER: True 71. Canadian employers tend to be supportive of union organizing drives. a. True b. False a. True b. False ANSWER: False 72. As long as employers do not object to unionization, they can influence employees to vote for one union rather than Copyright Cengage Learning. Powered by Cognero.

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another. a. True b. False a. True b. False ANSWER: False 73. If employers interfere with theunion certification process, thelabour relations board can recognize a union regardless of thepercentage of employees that have signed authorization cards. a. True b. False a. True b. False ANSWER: True 74. Both employers and unions can be accused of an unfair labour practice. a. True b. False a. True b. False ANSWER: True 75. It is possible for a union to be decertified if themajority of bargaining unit members decide they would rather be represented by another union. a. True b. False a. True b. False ANSWER: True 76. theminimum term of thefirst collective agreement after certification is three years. a. True b. False a. True b. False ANSWER: False 77. Unionization may restrict thefreedom of management in many areas. a. True b. False a. True b. False ANSWER: True 78. Unionization restricts thefreedom of management to formulate HR policy unilaterally. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: True 79. Management rights are those decisions over which management claims exclusive rights. a. True b. False a. True b. False ANSWER: True 80. Unions that represent unskilled and semiskilled workers employed along industry lines are known as industrial unions. a. True b. False a. True b. False ANSWER: True 81. Unions that represent various groups of professional and white-collar workers are called industrial unions. a. True b. False a. True b. False ANSWER: False 82. Labour organizations are diverse in type and in structure; therefore, each may have its own mode of governance and objectives. a. True b. False a. True b. False ANSWER: True 83. National unions retain most of thedecision-making authority over local unions. a. True b. False a. True b. False ANSWER: False 84. Union stewards are full-time employees at theworkplace and generally are not paid by theunion. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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85. More than 70 percent of all public employees in Canada are unionized. a. True b. False a. True b. False ANSWER: True 86. thelargest union in Canada is theCanadian Union of Public Employees (CUPE). a. True b. False a. True b. False ANSWER: True 87. Public employees unionize for very different reasons than their private-sector counterparts. a. True b. False a. True b. False ANSWER: True 88. Public-sector unions contend that denying their legal right to strike reduces their power during collective bargaining. a. True b. False a. True b. False ANSWER: True 89. Compulsory binding arbitration is often available in thepublic sector as an acceptable way to settle collective bargaining deadlocks. a. True b. False a. True b. False ANSWER: True 90. thecollective bargaining process may include activities such as strikes and boycotts. a. True b. False a. True b. False ANSWER: True 91. Collective bargaining may include theuse of economic pressures in theform of strikes and boycotts by a union. a. True b. False a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True 92. During collective bargaining, each side normally places only their primary negotiator at thetable. a. True b. False a. True b. False ANSWER: False 93. Employers are obligated to negotiate in good faith with theunion. a. True b. False a. True b. False ANSWER: True 94. 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 a. True b. False ANSWER: False 95. Interest-based bargaining usually leads to suspicion and compromise. a. True b. False a. True b. False ANSWER: False 96. Bargaining power consists of economic, political, and social influence to achieve demands. a. True b. False a. True b. False ANSWER: True 97. A strike vote by union members does not always mean a strike will take place. a. True b. False a. True b. False ANSWER: True 98. Pickets may further disrupt an employer‘s business because one union member, such as a truck driver, may refuse to Copyright Cengage Learning. Powered by Cognero.

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cross theother‘s picket line. a. True b. False a. True b. False ANSWER: True 99. A boycott is a refusal to cross a union picket line. a. True b. False a. True b. False ANSWER: False 100. An employer‘s bargaining power may rest on its ability to continue its operations despite a strike by its workers. a. True b. False a. True b. False ANSWER: True 101. Mediation is theonly form of third-party resolution that results in binding recommendations. a. True b. False a. True b. False ANSWER: False 102. Compulsory membership provisions and dues checkoff are forms of union security. a. True b. False a. True b. False ANSWER: True 103. Agency shops provide for voluntary union membership, but require all bargaining unit members to pay union dues and fees. a. True b. False a. True b. False ANSWER: True 104. Most labour relations activity comes from theday-to-day administration of thecollective agreement. a. True b. False a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True 105. A grievance procedure is a formal process that is often considered theheart of a bargaining agreement. a. True b. False a. True b. False ANSWER: True 106. Grievance handling is more successful when supervisors are trained formally in resolving grievances. a. True b. False a. True b. False ANSWER: True 107. A union will not usually take a weak case to arbitration for fear of losing member support. a. True b. False a. True b. False ANSWER: False 108. Arbitration hearings are formal court proceedings, held in a court of law. a. True b. False a. True b. False ANSWER: False 109. It is thearbitrator‘s responsibility to ensure that each side receives a fair hearing. a. True b. False a. True b. False ANSWER: True 110. Arbitration involves a neutral third party. a. True b. False a. True b. False ANSWER: True 111. What are theprimary reasons for employee unionization?

ANSWER: Some employees join unions because of theunion-shop provisions of thecollective agreement, which specify Copyright Cengage Learning. Powered by Cognero.

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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 thestrongest 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 theHR 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 theunion also enables some individuals to put leadership talents to use.

The limited studies conducted on employee unionization in thepublic sector generally find that public employees unionize for reasons similar to those of their private-sector counterparts. theonly difference is that other issues, such as professional development and participation in decision making, are also perceived as important.

In thefinal analysis, theextent to which employees perceive that thebenefits of joining a union outweigh thecosts associated with membership is likely to be thedeciding factor.

112. Briefly describe thesix steps in theorganizing process.

ANSWER: Employee/union contact. thefirst step begins when employees and union officials make contact to explore thepossibility of unionization. Employees investigate theadvantages of labour representation, and union officials begin to gather information about employee needs, problems, and grievances. Labour organizers also seek information about theemployer‘s financial health, supervisory styles, and policies and practices. To win employee support, theorganizers must build a case against theemployer and for theunion.

Initial organizational meeting. As theorganizing campaign gathers momentum, theorganizer schedules an initial union meeting to attract more supporters. theorganizer uses theinformation gathered in step one to address employee needs and explain how theunion can meet them. theorganizational meeting also enables theorganizer to identify employees who can help run thecampaign and to establish communication chains that reach all employees.

Formation of an in-house organizing committee. thein-house committee is composed of employees who are willing to provide leadership to thecampaign. Their role is to interest other employees in joining theunion 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 theunion. thenumber of signed authorization cards demonstrates thepotential strength of theunion. thenumber of cards required for automatic certification and thenumber required in order to qualify for a representation vote varies by jurisdiction.

Application to thelabour relations board. After therequired number of authorization cards have been signed, application for certification is made to theapplicable labour relations board. Depending on thenumber of cards signed, thelabour relations board may grant automatic certification or hold a secret-ballot vote. If 50 percent of those casting ballots vote in favour of theunion, theunion is certified.

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Issuance of certificate by thelabour relations board. A certificate is then issued granting theunion theright to represent theemployees as a recognized union under theapplicable labour relations legislation.

Election of a bargaining committee and contract negotiations. Once thecertificate has been issued, a bargaining committee is elected by theunion membership. A national or international union representative generally works with this local union committee to negotiate a collective agreement with thecompany.

Bargaining committees are often assisted by specialists in benefits and health and safety.

113. Explain theimpact of unionization on managers.

ANSWER: 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 theunion. · Terms of thecollective agreement determine how employees can be directed and how they can be disciplined. · Specific content language of thecollective agreement can reduce themanager or supervisor‘s ability to manage in such areas as scheduling, training, transfers, performance evaluation, promotions, etc.

114. What are management rights in a collective agreement?

ANSWER: Management rights refer to conditions of employment over which management can exercise exclusive control.

Most collective agreements contain a management rights clause. This clause states that ―management‘s authority is supreme in all matters except those it has expressly conceded in thecollective agreement, or in those areas where its authority is restricted by law.‖ Management rights might include theright of management to determine theproducts to produce, to determine thelocation of production or service facilities, or to select production equipment and procedures.

Chapter_15_International_Human_Resources_Management

1. What is thename of theorganization, formalized in 1995, that seeks to foster free trade globally? a. the International Labour Organization b. the World Trade Organization c. the United Nations d. the Free Trade Union ANSWER: b 2. What is theterm used to refer to thereligion, values and attitudes, politics, technology, education, and social organization of a nation? a. ritual environment b. general environment c. task environment d. cultural environment ANSWER: d 3. 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 ANSWER: c 4. What do we call a domestic firm that builds on its existing capabilities to penetrate overseas markets? a. an international corporation b. a transnational corporation c. a global corporation d. a domestic corporation Copyright Cengage Learning. Powered by Cognero.

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ANSWER: a 5. A PEST analysis refers to an assessment of which of thefollowing 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 ANSWER: b 6. UVW is an international firm with headquarters in Germany. Its operations in other parts of theworld 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 ANSWER: c 7. 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 ANSWER: c 8. 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 ANSWER: a 9. Think about a spider‘s web with thespider in themiddle. In this scenario, thespider controls theweb from thecentre.

What type of corporation does this web resemble themost? a. an international corporation b. a multidomestic corporation c. a global corporation d. a transnational corporation ANSWER: c 10. Some Japanese firms, such as Matsushita and NEC, tend to operate as domestic firms but see thewhole 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 ANSWER: d 11. Which of thefollowing 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 theworld d. a steel company trying to simultaneously gain scale economies and increase thequality of its products Copyright Cengage Learning. Powered by Cognero.

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ANSWER: b 12. 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 ANSWER: a 13. 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 ANSWER: d 14. 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 ANSWER: c 15. What is another term for expatriates? a. home-country nationals b. host-country nationals c. third-country nationals d. repatriates ANSWER: a 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 thefollowing? a. a host-country national b. a home-host-country national c. a third-country national d. a home-country national ANSWER: c 17. NBC Petroleum Corporation, a French firm, is now establishing a subsidiary in Bangladesh. This represents an early stage of international expansion for thecompany. What type of employees would NBC Petroleum most likely use? a. home-country nationals b. third-country nationals c. host-country nationals d. expatriates ANSWER: a 18. 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 thefirm. d. They have better chances of being promoted.

ANSWER: b 19. Under which of thefollowing conditions would a firm continue to use expatriates in its international operations even after a few years?

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a. when thelabour 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 thefirm‘s products ANSWER: d 20. Many farm workers come to Canada to work during thesummer period. What is thename of thedocument issued by thegovernment 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 ANSWER: c 21. Heineken recently organized a group of individuals with specialized skills representing each major country within Europe. Which of thefollowing is this group an example of? a. a transfunctional team b. a multinational team c. a multicultural team d. a transnational team ANSWER: d 22. What type of document, made possible through NAFTA, do qualified Canadian professionals often use to work in theUnited States? a. a travel permit b. an international visa c. a work order d. a TN visa ANSWER: d 23. 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 ANSWER: a 24. In which sector do temporary foreign workers tend to work in Canada? a. agriculture b. university c. mining d. financial ANSWER: a 25. Which of thefollowing is a core skill that is critical for success abroad? a. technical b. change management c. decision making d. delegation ANSWER: c 26. Which of thefollowing 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 ANSWER: c

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27. What is thefirst step in selecting individuals for an international assignment? a. self-selection b. assessing core skills c. assessing augmented skills d. creating a candidate pool ANSWER: a 28. Which of thefollowing best describes cultural conditioning? a. It does not include theformal education or training a person receives. b. It influences theattitudes, 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.

ANSWER: b 29. Which of thefollowing is an essential component of training and development programs for employees going on international assignments? a. expatriation b. repatriation c. self-confidence d. financial ANSWER: b 30. Compared to North American managers, what kind of decision-making style do South American managers tend to use in theworkplace? a. a more participatory style b. a more democratic style c. a more inclusionary style d. a more autocratic style ANSWER: d 31. Compared to Canadian managers, what kind of decision-making style do Japanese managers tend to use in theworkplace? a. a more participatory style b. a more decentralized style c. a more autocratic style d. about thesame style ANSWER: a 32. 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-life balance c. organizational disorientation d. culture shock ANSWER: d 33. What is repatriation? a. a process to train expatriates prior to their first international assignment b. adaptation of leadership and decision-making styles to thehost country c. a process to help employees make thetransition back home d. the ability of employees to settle in their international assignments ANSWER: c 34. What is most likely to happen when companies fail to use theknowledge, skills, and understanding that expatriate managers acquire in international assignments?

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a. Language training is viewed as unnecessary. b. The expatriates often take lower-level jobs upon return or leave thecompany. c. Repatriation is no longer recommended. d. Home-country nationals are used more often in favour of expatriates.

ANSWER: b 35. ABC Inc., a firm located in Tokyo, Japan, is likely to emphasize which of thefollowing in its pay system? a. nonfinancial incentives b. weekly or monthly salary guarantees c. internal equity and personal needs d. individual performance ANSWER: c 36. In designing compensation systems, what does thephilosophy of ―thinking globally and acting locally‖ mean? a. Expatriates should be rewarded primarily for their local actions. b. Pay plans should be originated at thelocal 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 theentire organization. d. Pay plans should be designed to support theoverall strategic intent of theorganization and also provide enough flexibility to customize certain policies to meet theneeds of employees in specific locations.

ANSWER: d 37. What is a global compensation system? a. a system where employees for a multinational firm in different countries are paid exactly thesame b. a system where host-country employees are paid similarly to employees in thehome country c. a system where expatriates are paid at theglobal rates for their services d. a system where expatriates enjoy thebalance sheet approach to their pay ANSWER: b 38. 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.

ANSWER: a 39. What is thekey purpose of thebalance sheet approach to compensating expatriate managers? a. to enhance theskills of theexpatriate b. to ensure that theexpatriate does not lose financially in his or her international assignment c. to balance thesocial costs of theassignment d. to ensure that there is work–life balance ANSWER: b 40. In using thebalance sheet approach to compensating expatriate managers, theterm ―incentive premiums‖ refers to which of thefollowing concepts?

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a. extra money for enduring theculture shock b. offsetting thehigher costs of overseas goods and services c. compensating themanagers for separation from family and friends and doing hazardous duty d. covering moving, storage, and educational expenses ANSWER: c 41. Expatriates can be compensated for their services in several ways. At one end, their pay can be based on their earnings in thehome country. What is at theother end of expatriate pay? a. host-based pay b. skill-based pay c. balance sheet pay d. third-country-based pay ANSWER: a 42. 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 ANSWER: b 43. Which of thefollowing 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 ANSWER: a 44. What is thespecialized agency of theUnited Nations that promotes therights of workers? a. the International Labour Organization b. the World Trade Organization c. the Centre for Labour Standards d. the Security Council ANSWER: a 45. Which country is most associated with codetermination in union–management relations? a. United States b. Germany c. Japan d. China ANSWER: b 46. 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, theboards of directors of companies. What is this participative arrangement called? a. socialism b. codetermination c. quality circles d. bipartite participation ANSWER: b 47. 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.

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ANSWER: d 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.

48. 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.

ANSWER: a 49. 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 ANSWER: a 50. 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 ANSWER: c 51. 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 ANSWER: d 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 McCafé. 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 Copyright Cengage Learning. Powered by Cognero.

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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.

52. 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 ANSWER: d 53. 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 ANSWER: c 54. 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.

ANSWER: a 55. Political factors are considered in a PEST analysis. a. True b. False a. True b. False ANSWER: True 56. The European Union (EU) was established to facilitate free trade with North America. a. True b. False a. True b. False ANSWER: False 57. In many countries, bribes are considered a normal business practice. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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58. The host country is the country in which an international business operates. a. True b. False a. True b. False ANSWER: True 59. Different cultural environments require different organizational behaviours. a. True b. False a. True b. False ANSWER: True 60. A multidomestic corporation is essentially a domestic firm that builds on its existing capabilities to penetrate overseas markets. a. True b. False a. True b. False ANSWER: False 61. A Canadian firm with fully autonomous operating units in Korea, Spain, and Sweden would be classified as a multidomestic corporation. a. True b. False a. True b. False ANSWER: True 62. Subsidiaries of multidomestic corporations are usually run as independent companies. a. True b. False a. True b. False ANSWER: True 63. A global corporation has fully autonomous units operating in multiple countries. a. True b. False a. True b. False ANSWER: False 64. A global corporation is essentially a domestic firm that builds on its existing capabilities to penetrate overseas markets. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: False 65. An advantage of home country nationals is that they have intimate knowledge of the environment and culture. a. True b. False a. True b. False ANSWER: False 66. At early stages of international expansion, many organizations prefer to use host-country nationals. a. True b. False a. True b. False ANSWER: False 67. 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 a. True b. False ANSWER: True 68. Third-country nationals are natives of a country other than the home country or the host country. a. True b. False a. True b. False ANSWER: True 69. At early stages of international expansion, organizations often send home-country nationals to work in other countries. a. True b. False a. True b. False ANSWER: True 70. A work permit or work certificate allows a foreign individual to seek employment in another country. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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71. Multinational corporations tend to use different kinds of external recruitment sources than are used in their home countries. a. True b. False a. True b. False ANSWER: False 72. The employment of guest workers may result in indirect costs that may be substantial. a. True b. False a. True b. False ANSWER: True 73. Transnational teams are composed of members from multiple nationalities working on projects that span multiple countries. a. True b. False a. True b. False ANSWER: True 74. A work permit is a document issued by a government granting authority to a foreign individual to seek employment in that government‘s country. a. True b. False a. True b. False ANSWER: True 75. Global managers must be capable of managing highly decentralized organizations. a. True b. False a. True b. False ANSWER: True 76. 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 a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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77. 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 a. True b. False ANSWER: True 78. Women expatriates are thought to succeed in part because they are visible and distinctive. a. True b. False a. True b. False ANSWER: True 79. 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 a. True b. False ANSWER: True 80. The failure of expatriate assignments is usually due to technical or managerial concerns. a. True b. False a. True b. False ANSWER: False 81. Lack of training is one of the principal causes of failure among employees working internationally. a. True b. False a. True b. False ANSWER: True 82. 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 a. True b. False ANSWER: True 83. 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 Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: True 84. English is almost universally accepted as the language for international business. a. True b. False a. True b. False ANSWER: True 85. 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 a. True b. False ANSWER: True 86. Managers‘ attitudes and behaviours are influenced by the society in which they received their education and training. a. True b. False a. True b. False ANSWER: True 87. Managers in Latin American countries can encourage performance by using personal influence and working through individual members of a group. a. True b. False a. True b. False ANSWER: True 88. North American managers tend to have highly autocratic decision-making styles. a. True b. False a. True b. False ANSWER: False 89. Culture shock refers to the disorientation people experience adjusting to a new culture. a. True b. False a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True 90. Repatriation refers to the training a manager receives before taking an international assignment. a. True b. False a. True b. False ANSWER: False 91. Repatriation is usually a planned and positive experience for employees returning from an international assignment. a. True b. False a. True b. False ANSWER: False 92. Pay plans in Japan tend to focus on individual performance and achievement. a. True b. False a. True b. False ANSWER: False 93. Cultural differences have little impact on international compensation. a. True b. False a. True b. False ANSWER: False 94. A localization approach to compensation in global settings is the same as the balance sheet approach. a. True b. False a. True b. False ANSWER: False 95. 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 a. True b. False ANSWER: True 96. Performance evaluations of expatriates should occur in both the home and the host countries. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False a. True b. False ANSWER: True 97. 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 a. True b. False ANSWER: True 98. Labour courts can be used in Australia to impose wages and employment conditions in workplaces. a. True b. False a. True b. False ANSWER: True 99. Expatriates should not be expected to evaluate their own performance. a. True b. False a. True b. False ANSWER: False 100. In some countries, unions are part of alliances between political parties, churches, or governments. a. True b. False a. True b. False ANSWER: True 101. In Europe, most union negotiations occur at the company level. a. True b. False a. True b. False ANSWER: False 102. The International Trade Union Confederation (ITUC) is the most active international union organization. a. True b. False a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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103. The International Labour Organization enforces international labour standards. a. True b. False a. True b. False ANSWER: False 104. Codetermination refers to the training an expatriate manager receives before an international assignment. a. True b. False a. True b. False ANSWER: False 105. What are the primary differences among international, multinational, global, and transnational corporations?

ANSWER: 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.

106. 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: 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.

107. Describe the steps involved in the balance sheet approach to employee pay in international settings?

ANSWER: 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.

There are five steps in the balance sheet approach, as follows: Step 1: Calculate base pay. Begin with the home-based gross income, including bonuses. Deduct taxes and pension contributions.

Step 2: Figure cost-of-living adjustment (COLA). Add a COLA to the base pay. Typically, companies do not Copyright Cengage Learning. Powered by Cognero.

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subtract when the international assignment has a lower cost of living. Instead, they allow the expatriate to benefit from the negative differential. Often a housing allowance is added here as well.

Step 3: Add incentive premiums. General mobility premiums and hardship premiums compensate expatriates for separation from family, friends, and domestic support systems—usually 15 percent of base salary, although in recent years, some companies have reduced this amount. Often, incentive premiums are paid for hazardous duty or harsh conditions that the expatriate might experience while abroad. Expatriates who locate to war zones, for example, can sometimes earn three times their base salary.

Step 4: Add assistance programs. These additions are often used to cover added costs such as moving and storage, automobile, and education expenses.

The differentials element is intended to correct for the higher costs of overseas goods and services so that in relation to their domestic peers, expatriates neither gain nor lose purchasing power.

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