Exam: - Assessing Performance, Developing Employees & Compensating Human Resources Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer. 1. An employee refuses an employer's request to falsify the contents of a report to the EEOC. The employer subsequently discharges the worker for "not following orders." In a wrongful-discharge suit, the employee is likely to argue which of the following exceptions to the at-will-employment doctrine? A. Implied contract B. Equal employment C. Public policy D. Reverse discrimination 2. Which of the following is a false statement about using peers as a source of performance information? A. Peer ratings are particularly useful when supervisors don't have the opportunity to observe employees. B. Peers are more willing participants in reviews used for employees. C. Peers have expert knowledge of job requirements and bring a unique perspective to the evaluation, often resulting in extremely valid assessments of performance. D. Peer ratings, according to research, are highly influenced by friendships. 3. Why would an employee seek a downward move? A. To learn different skills B. To have more authority C. To increase salary and visibility D. To have greater challenges 4. In terms of job dissatisfaction, an employee who calls in sick or arrives to work late is engaging in A. behavior change. B. physical withdrawal. C. psychological withdrawal. D. whistleblowing. 5. Based on the expectation that two people in conflict should first try to arrive at a settlement together, the organization has a policy of making managers available to hear complaints. Typically, the first open door is that of the employee's A. immediate supervisor. B. peers. C. director. D. immediate subordinates. 6. If a performance measure lacks _______ reliability, determining whether an employee's performance has truly changed over time will be impossible. A. interrater B. external C. test-retest D. strategic 7. The primary use of assessment centers is to identify A. employees' personality types and job interests. B. decision processes and communication styles that inhibit production. C. the strengths and weaknesses of team members. D. employees who have the personality, characteristics, and skills needed for managerial positions. 8. Which of the following statements illustrates effective feedback? A. "I don't see any progress from the last review; you're lazy." B. "You've achieved 100 percent of your target in less than six months." C. "Overall, your performance has been satisfactory." D. "You've become careless; you came in late three times last week." 9. What is the employee's responsibility in the self-assessment stage of career management? A. Provide assessment information to identify strengths, weaknesses, interests, and values B. Identify opportunities and areas of ...

1. Exam: - Assessing Performance, Developing Employees &
Compensating Human Resources
Questions 1 to 20: Select the best answer to each question. Note
that a question and its answers may be split across a page break,
so be sure that you have seen the entire question and all the
answers before choosing an answer.
1. An employee refuses an employer's request to falsify the
contents of a report to the EEOC. The
employer subsequently discharges the worker for "not following
orders." In a wrongful-discharge suit, the employee is likely to
argue which of the following exceptions to the at-will-
employment doctrine?
A. Implied contract
B. Equal employment
C. Public policy
D. Reverse discrimination
2. Which of the following is a false statement about using peers
as a source of performance information?
A. Peer ratings are particularly useful when supervisors don't
have the opportunity to observe employees.
B. Peers are more willing participants in reviews used for
employees.
C. Peers have expert knowledge of job requirements and bring a
unique perspective to the evaluation, often resulting in
extremely valid assessments of performance.
D. Peer ratings, according to research, are highly influenced by
friendships.
3. Why would an employee seek a downward move?
A. To learn different skills
B. To have more authority
C. To increase salary and visibility

2. D. To have greater challenges
4. In terms of job dissatisfaction, an employee who calls in sick
or arrives to work late is engaging in
A. behavior change.
B. physical withdrawal.
C. psychological withdrawal.
D. whistleblowing.
5. Based on the expectation that two people in conflict should
first try to arrive at a settlement together, the organization has a
policy of making managers available to hear complaints.
Typically, the first open door is that of the employee's
A. immediate supervisor.
B. peers.
C. director.
D. immediate subordinates.
6. If a performance measure lacks _______ reliability,
determining whether an employee's performance has truly
changed over time will be impossible.
A. interrater
B. external
C. test-retest
D. strategic
7. The primary use of assessment centers is to identify
A. employees' personality types and job interests.
B. decision processes and communication styles that inhibit
production.
C. the strengths and weaknesses of team members.
D. employees who have the personality, characteristics, and
skills needed for managerial positions.
8. Which of the following statements illustrates effective
feedback?
A. "I don't see any progress from the last review; you're lazy."

3. B. "You've achieved 100 percent of your target in less than six
months."
C. "Overall, your performance has been satisfactory."
D. "You've become careless; you came in late three times last
week."
9. What is the employee's responsibility in the self-assessment
stage of career management?
A. Provide assessment information to identify strengths,
weaknesses, interests, and values
B. Identify opportunities and areas of needed improvement
C. Communicate performance evaluations
D. Identify steps and a timetable to reach goals
10. Three of the following are trends in executive education.
Which one is not a trend in executive
education?
A. Due to increasing costs, employees are increasingly being
asked to cover tuition and other program-related costs.
B. Formal educational programs are being supplemented with
other developmental activities.
C. Employers and education providers are developing short
courses with content designed specifically for the audience.
D. Distance learning is being used more frequently by
companies.
11. Which of the following statements correctly describes in-
basket exercises?
A. In-basket exercises are paper-and-pencil tests designed to
measure participants' communication styles and skills.
B. In-basket exercises simulate the administrative tasks of a
manager's job, using a pile of documents for the employee to
handle.
C. In-basket exercises require participants to take the part of a
manager or employee in a situation involving the skills to be
assessed.

4. D. In-basket exercises require teams of five to seven employees
to work together to solve assigned problems within a certain
time period.
12. To improve performance of underutilizers, managers should
A. withhold pay increases.
B. link rewards to performance outcomes.
C. demote them from their current position.
D. offer temporary assignments for skill development.
13. Three of the following are likely outcomes or benefits of
conducting annual employee satisfaction
surveys. Which of the following is not a likely outcome or
benefit?
A. The surveys allow the company to monitor trends over time.
B. The surveys provide a means for empirically assessing the
effects of changes in personnel practices on worker attitudes.
C. The surveys give employees an outlet for voicing their
concerns.
D. The surveys provide evidence of the knowledge, skills, and
abilities necessary to perform specific jobs.
14. Explanation, consideration, and empathy are key
determinants of
A. interactional justice.
B. procedural justice.
C. alternative dispute resolutions.
D. perceptual justice.
15. In which performance technique are managers given three
performance rating scales per dimension and asked to indicate
whether the employee's performance is above (+), at (0), or
below (-) the statements?
A. Graphic-rating scale
B. Behavioral-observation scale
C. Behaviorally anchored rating scale

5. D. Mixed-standard scale
16. An Individual Coaching for Effectiveness program is
designed to
A. help prepare managers for overseas assignments.
B. reduce the effects of the glass ceiling.
C. help managers with dysfunctional behaviors.
D. improve managers in succession planning.
17. The Job Descriptive Index measures three of the following
facets of employee satisfaction. Which is
not measured by the Job Descriptive Index?
A. Customers
B. The work itself
C. Coworkers
D. Pay
18. A team of five to seven employees is assigned a problem
and must work together to solve it within a
certain time period. Which of the following techniques is being
used?
A. Discussion
B. Leaderless group discussion
C. Role playing
D. In-basket exercise
19. If peer review doesn't lead to a settlement, a neutral party
from outside the organization hears the case and tries to help
the people in conflict arrive at a settlement. This process is
called
A. arbitration.
B. progressive discipline.
C. open-door policy.
D. mediation.
20. Which of the following is a false statement about the glass
ceiling?

6. A. Research has found gender differences in accessing job
experiences involving transitions and creating change.
B. The barrier may be due to a lack of access to training
programs, developmental job experiences, and developmental
relationships, such as mentoring.
C. Research shows male managers receive more assignments
involving high levels of responsibility than do female managers
of similar ability and managerial level.
D. The barrier may be due to stereotypes that hinder the
development of women and minorities.
21. Which of the following is not an advantage of a balanced
scorecard?
A. A balanced scorecard links external pay rates with internal
job structures, allowing organizations to gain both internal and
external pay equity.
B. A balanced scorecard balances the disadvantages of one type
of incentive pay with the advantages of another type.
C. A balanced scorecard allows for a combination of
performance measures that are directed toward both the
company's long and short-term objectives.
D. Communicating a balanced scorecard helps employees
understand the organization's goals and how they might
contribute to these goals.
22. Three of the following are types of defined-contribution
pension plans. Which of the following is not a type of defined-
contribution pension plan?
A. Section 401(k) plan
B. Employee stock option plan
C. Money purchase plan
D. Gainsharing plan
23. In response to the growing concern over ethical issues
surrounding incentive pay for executives, three of the following
actions have been taken. Which action has not been taken in

7. response to the growing concern over ethical issues?
A. Limiting the amount companies may deduct for executive
and performance-related pay to no more than $1 million
B. Imposing strict limits on insider trading
C. Using the balanced-scorecard to design executive pay and
incentives
D. Requiring companies to more clearly report executive
compensation levels and the company's performance relative to
that of competitors
24. Employees who have met the enrollment and length-of-
service requirements to receive a pension at
retirement, regardless of whether they remained with the
employer until that time, are said to be
A. retirees.
B. vested.
C. expatriates.
D. pensioners.
25. Quality guru W. Edwards Deming advocates the use of
A. piecework incentives.
B. group incentives.
C. stock options.
D. merit-pay systems.
26. Chief executives of large U.S. businesses earn over _______
times as much as manufacturing employees in their companies.
A. 10
B. 40
C. 20
D. 60
27. Which act permits a lower training wage, which employers
may pay to workers under the age of 20 for a period of up to 90
days?
A. ERISA
B. ADA
C. FMLA

8. D. FLSA
28. Pay specifically designed to energize, direct, or control
employees' behavior is known as
A. exempt pay.
B. indirect pay.
C. empowerment pay.
D. incentive pay.
29. Which level of child care is most frequently provided by
organizations with 100 or more employees?
A. The organization provides vouchers or discounts for
employees to use at existing child-care facilities.
B. The organization supplies and helps employees collect
information about the cost and quality of available child care.
C. The organization offers no support within this area.
D. The organization operates a day-care center at or near the
workplace.
30. An employee earns $10 an hour and receives a weekly
attendance award of $20. That employee works 50 hours this
week and thus earns a total compensation of
A. $557.50.
B. $577.50.
C. $550.00.
D. $570.00.
31. Which of the following is an advantage of group incentives?
A. Rewarding the performance of all employees at a facility
B. Groups trying to outdo one another in satisfying customers
C. Group more likely using a broad range of performance
measures
D. Encouraging team members to compete with each other so
they can achieve their goal
32. Organizations being squeezed between labor and product

9. markets need to
A. move from job-based pay structures to skill-based pay
systems, where employees are empowered and jobs are more
enriched.
B. couple pay policies with creative HR, production, and
marketing management to make workers' contributions more
valuable and products more profitable.
C. change their strategic mission and direction, moving to more
attractive industries.
D. move their operations overseas.
33. Which of the following is a false statement about Social
Security benefits?
A. Eligibility rules must be met to receive benefits.
B. Workers who meet requirements receive retirement benefits
according to age and earnings history.
C. Benefits are taxed as ordinary income at both the federal and
state level.
D. Employers and employees share the cost of the program
through a payroll tax.
34. Which of the following is a false statement about key jobs?
A. Key jobs are relatively stable in content.
B. Key jobs have many incumbents within the organization.
C. Key jobs are common to many organizations.
D. Key jobs are jobs on which it's possible to obtain market-pay
survey data.
35. A system in which an employer pays a worker specifically
for each unit produced is known as
A. gross pay.
B. hourly wage.
C. piecework rate.

10. D. salary.
36. Why are growing numbers of employers opting for defined-
contribution plans?
A. Employers are free from the risk of poor performance of the
plans.
B. They guarantee a specified level of retirement income.
C. PGBC makes annual contribution of $33 per participant.
D. Defined-contribution plans are required by ERISA.
37. In 2003, a company employee received an option to
purchase the company's stock at $45 per share. If the stock is
trading at $40 a share in 2005, the employee will most likely
A. exercise the option, receiving a gain of $5.
B. exercise the option, receiving a gain of $40.
C. hold on to the option, hoping the stock price will increase in
the future.
D. try changing the price in the original option agreement to
improve the stock's performance.
38. By law, what percent of assets must an ESOP invest in its
company's stock?
A. 80 percent
B. 100 percent
C. 51 percent
D. 10 percent
39. The National Compensation Survey is an ongoing activity of
the
A. AFL-CIO.
B. Bureau of Labor Statistics.
C. American Management Association.
D. Society for Human Resource Management.
40. Three of the following are objectives of the unemployment
insurance program. Which is not an

11. objective of the unemployment insurance program?
A. To offset lost income during a labor dispute
B. To preserve investments in worker skills by providing
income during short-term layoffs
C. To provide an incentive for employers to stabilize
employment
D. To offset lost income during involuntary unemployment
Exam: - Meeting Other HR Goals
Questions 1 to 20: Select the best answer to each question. Note
that a question and its answers may be split across a page break,
so be sure that you have seen the entire question and all the
answers before choosing an answer.
1. Which of the following is a false statement about grievance
procedures?
A. Under the duty of fair representation, the union must give
equal representation to all members of the bargaining unit,
whether or not they actually belong to the union.
B. The majority of grievances are settled during the earlier steps
of the process.
C. The merits of an arbitrator's ruling can't be appealed to the
courts.
D. Grievance procedures generally have several steps prior to
arbitration.
2. Which of the following is not a measure for an HRM audit for
staffing?
A. Fairness of existing job evaluation system in assigning
grades and salaries
B. Anticipation of personnel needs
C. Treatment of applicants
D. Timeliness of referring qualified workers to line supervisors
3. The Hofstede dimension that deals with the degree to which a
culture prefers structured conditions is

12. A. individualism.
B. uncertainty avoidance.
C. risk aversion.
D. power distance.
4. Which of the following statements about expert systems is
false?
A. Expert systems help avoid the errors that can result from
fatigue and decision-making biases.
B. Expert systems can increase efficiency by enabling fewer or
less-skilled employees to do work that otherwise would require
many highly skilled employees.
C. Expert systems provide consistency in decision making.
D. Expert systems deliver high-quality decisions at a high cost.
5. _______ promotes respect for past tradition and for fulfilling
social obligations in the present.
A. Uncertainty avoidance
B. Femininity
C. Large power distance
D. Short-term orientation
6. Which of the following is a false statement about
international labor relations?
A. Day-to-day decisions about labor relations are usually
handled by each foreign subsidiary.
B. In countries such as Germany, management has an incentive
to build cooperative relationships because labor representatives
participate in company decision-making activities and sit on
companies' boards of directors.
C. Most U.S. organizations, in contrast to European
organizations, bargain with a union representing an entire
industry's employees, rather than with local union.
D. U.S. organizations, in comparison with European
organizations, exert more centralized control over labor
relations in the various countries where they operate.

13. 7. Which of the following employee groups is most likely to be
excluded by the NLRB from participating in organizing
activities and being a member of the bargaining unit?
A. Employees who have been on strike for economic reasons for
less than one year and who have been replaced by other
employees
B. Employees covered by multiple employers
C. Employees in multiple facilities within a single employer
D. Employees with certain supervisory duties
8. Which of the following is a correct statement about an
organizing campaign?
A. During an organizing campaign, only one union can appear
on the ballot.
B. During an organizing campaign, the NLRB conducts a secret-
ballot election if only 30 to 50 percent of employees signed
cards.
C. During an organizing campaign, a union is automatically
recognized if most number of employees agree.
D. During an organizing campaign, unions determine the
appropriate bargaining unit.
9. Recruitment and selection activities within a high-
performance organization include three of the
following. Which is not a recruitment and selection activity
within a high-performance organization?
A. Selection methods that concentrate on identifying technical
skills only
B. Finding employees who are enthusiastic about and able to
contribute to teamwork, empowerment, and knowledge sharing
C. Finding employees who innovate, share ideas, and take
initiative
D. Selection methods that include group interviews, open-ended
questions, and psychological tests

14. 10. Which of the following is not appropriate using e-HRM?
A. Online surveys
B. Online testing
C. Online grievance redressal
D. Online recruitment
11. Union membership in the United States peaked in the
A. 1960s.
B. 1980s.
C. 1990s.
D. 1950s.
12. Which of the following is a correct statement about
inpatriates?
A. Inpatriates are employees from countries other than the
parent country placed in facilities of other countries.
B. Inpatriates are foreign employees who come to the United
States to work for the U.S.-based parent company.
C. Inpatriates are employees transferred from a company's site
in one state to another state within the United States.
D. Inpatriates are employees from one division of the company
being moved to another division.
13. Which of the following is a false statement about an HRIS?
A. HR staff can retrieve information about specific applicants.
B. The system is designed to serve only the HR staff.
C. It lets a user sort the data by any of the fields.
D. Separate files can be linked by common elements.
14. The economic approach to evaluating the effectiveness of
HR practices focuses on
A. comparing the company's HRM costs to those of major
competitors.
B. determining whether the HR practice had the intended effect.
C. reviewing the various outcomes of the HR functions.
D. determining the dollar value of a program's costs and

15. benefits.
15. Which of the following is a false statement about fact-
finding as an impasse resolution procedure?
A. A fact-finder's findings are made public.
B. A fact-finder is often used for negotiations with
governmental bodies.
C. A fact-finder reports on the reasons for the dispute.
D. A fact-finder's findings are binding on the parties.
16. Which of the following is a false statement about the goals
of management?
A. Management goals are to increase the organization's profits.
B. Management's goals continue to emphasize restraining costs
and improving output.
C. Management prefers to increase wages and benefits and
allow flexibility of work rules and schedules.
D. Management's concern is that a union will create higher costs
in wages and benefits, as well as raise the risk of work
stoppages.
17. Under the Taft-Hartley Act, three of the following are unfair
labor practices on the part of the union.
Which is not an unfair labor practice on the part of the union,
under the Taft-Hartley Act?
A. Threatening employees with physical injury or job loss if
they don't support union activities
B. Calling or visiting employees at home for the purpose of
promoting union membership or activities
C. Mass picketing in such numbers that nonstriking employees
physically can't enter the workplace
D. Terminating an existing contract and striking for a new one
without notifying the employer, the FMCS, and the state
mediation service
18. Which of the following is a false statement regarding cross-

16. cultural preparation needed during the
phases of an international assignment?
A. Preparation for departure includes language instruction and
an orientation to the foreign country's culture.
B. Preparation is required only for the employees, not their
families.
C. Preparation is required for the return home.
D. Training may range from lectures for employees and their
families to visits to culturally diverse communities.
19. According to research, organizations that introduce high-
performance work practices usually experience
increases in three of the following areas. Which is not an area in
which an organization can expect to
experience an increase as a result of introducing high-
performance work practices?
A. Employee turnover
B. Long-term financial performance
C. Productivity
D. Employee satisfaction
20. High-performance work systems emphasize three of the
following. Which is not emphasized by highperformance
work systems?
A. Silo thinking
B. Development
C. Training
D. Career management