CHAPTER 13: MANAGING HUMAN RESOURCES
Test Correlation Table                   Question Types/Level of Difficulty

    LEAR...
CHAPTER 13: MANAGING HUMAN RESOURCES


      True/False Questions

      Learning Objective 1

1.    Human resources manag...
CHAPTER 13: MANAGING HUMAN RESOURCES

      age, sex, origin, race, religion, and marital status.

      ANSWER: F, Applic...
CHAPTER 13: MANAGING HUMAN RESOURCES

      centralized organizations, however, line managers often have some responsibili...
CHAPTER 13: MANAGING HUMAN RESOURCES


      ANSWER: T, Knowledge, Easy, p. 369

32.   When training is delivered using th...
CHAPTER 13: MANAGING HUMAN RESOURCES


      Learning Objective 7

41.   Monetary compensation includes direct pay such as...
CHAPTER 13: MANAGING HUMAN RESOURCES


     Multiple Choice Questions
     Preview
1.   Which of the following is not one ...
CHAPTER 13: MANAGING HUMAN RESOURCES

      a.   employees must be a source of added value.
      b.   employees must be u...
CHAPTER 13: MANAGING HUMAN RESOURCES


11.   As originally enacted in 1964, __________ prohibits employment discrimination...
CHAPTER 13: MANAGING HUMAN RESOURCES


16.   What company was required to pay nearly $140 million to current and former em...
CHAPTER 13: MANAGING HUMAN RESOURCES

22.   The _________ specifies a minimum wage and required payment for overtime work ...
CHAPTER 13: MANAGING HUMAN RESOURCES


27.   Human resources planning is tied directly to __________.
      a. self manage...
CHAPTER 13: MANAGING HUMAN RESOURCES

      education, training, experience, length of service, current job title and sala...
CHAPTER 13: MANAGING HUMAN RESOURCES


38.   Successful recruitment and selection of new employees at Advanced Financial
 ...
CHAPTER 13: MANAGING HUMAN RESOURCES


44.   __________ reference checks often reveal that an applicant has lied about his...
CHAPTER 13: MANAGING HUMAN RESOURCES


49.   What type of interview asks the candidate to describe or demonstrate how he o...
CHAPTER 13: MANAGING HUMAN RESOURCES


      Learning Objective 5

      Training and Development
54.   By providing emplo...
CHAPTER 13: MANAGING HUMAN RESOURCES


58.   Gary Kessler is discussing employee improvement with a colleague, Shana Velaz...
CHAPTER 13: MANAGING HUMAN RESOURCES

      organization around self-managed teams?
      a. They wanted to try a new trai...
CHAPTER 13: MANAGING HUMAN RESOURCES


68.   With __________, an expert observes the employee in his or her own job over a...
CHAPTER 13: MANAGING HUMAN RESOURCES


73.   Much of the value of performance appraisals depends on __________.
      a. h...
CHAPTER 13: MANAGING HUMAN RESOURCES


78.   Performance rating accuracy can be improved through training that focuses on
...
CHAPTER 13: MANAGING HUMAN RESOURCES


83.   Compensation is a key element in __________.
      a. creating a sustainable ...
CHAPTER 13: MANAGING HUMAN RESOURCES

      __________.
      a. 3 percent
      b. 9.2 percent
      c. 14.5 percent
    ...
CHAPTER 13: MANAGING HUMAN RESOURCES


95.   Employers are obligated by law to provide certain benefits for their employee...
CHAPTER 13: MANAGING HUMAN RESOURCES

2.   What must a company do to gain sustainable competitive advantage through HRM?

...
CHAPTER 13: MANAGING HUMAN RESOURCES


6.   What is a contingent worker?

     Contingent workers are employees who are hi...
CHAPTER 13: MANAGING HUMAN RESOURCES

10.   What is training and development?           Explain how these programs can imp...
CHAPTER 13: MANAGING HUMAN RESOURCES


      Learning Objective 7

13.   Discuss employee benefits and how they are relate...
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  1. 1. CHAPTER 13: MANAGING HUMAN RESOURCES Test Correlation Table Question Types/Level of Difficulty LEARNING OBJECTIVES Easy Moderate Difficult 1. Explain the strategic importance of TF 1, 3, 5 4 2, 6 managing human resources effectively. MC 3, 5, 9 2, 4, 8 1, 6, 7 ES 2 1 — 2. Describe several important laws TF — 7, 9, 13 8, 10, 11, 12 and government regulations that affect how organizations manage their human resources. MC 17, 19, 21 10, 11, 12, 16, 20, 13, 14, 15, 18 22, 23, 24, 25 ES 4 3 — 3. Explain the objective of human TF — 14, 15, 16, 18 17 resources planning and describe how organizations respond to the unpredictability of future business needs. MC — 26, 27, 28, 31, 33 29, 30, 32 ES 6 — 5 4. Describe the hiring process. TF 22, 27 20, 21, 23, 25, 26 19, 24 MC 34, 41, 42, 43, 46, 35, 37, 38, 39, 44, 36, 40, 47 50 45, 48, 49, 51, 52, 53 ES — 7 8 5. Describe several types of training TF 30, 31 28, 29, 32 33 and development programs. MC 54, 55, 56, 60 57, 59, 61, 63, 64, 58, 62, 66, 69 65, 67, 68, 70 ES — 10 9 6. Describe several principles for TF 34, 36, 38 35, 37, 40 39 improving the accuracy of managers' appraisals of employee performance. MC 71, 75, 77 74, 78, 79 72, 73, 76 ES — 11, 12 — 7. Describe the basic elements of a TF 43, 46, 49, 50 41, 42, 45, 48 44, 47 monetary compensation package. MC 80, 81, 83, 85, 90, 82, 88, 91, 92, 94, 97 84, 86, 87, 89 93, 95, 96, 98 ES — — 13 82
  2. 2. CHAPTER 13: MANAGING HUMAN RESOURCES True/False Questions Learning Objective 1 1. Human resources management is valuable, but it is not important enough to affect the value of a company. ANSWER: F, Knowledge, Easy, p. 354 2. Cisco Systems has had a spectacular growth rate, almost as fast as Microsoft. ANSWER: F, Knowledge, Difficult, p. 354 3. Successful organizations see human resources as assets that need to be managed conscientiously and in tune with their needs. ANSWER: T, Knowledge, Easy, p. 354 4. Federal Express is considered one of the 100 best companies to work for in America, primarily because they continually scrutinize their approaches to managing human resources in order to improve continuously. ANSWER: T, Knowledge, Moderate, pp. 355–356 5. There is a significant association between emphasizing human resources and subsequent long-term survival. ANSWER: T, Knowledge, Easy, p. 356 6. Employees “voting with their feet” means they are guided by and only work for companies they agree with regarding the political party affiliation of top management. ANSWER: F, Knowledge, Difficult, p. 357 Learning Objective 2 7. Compliance with Title VII of the Civil Rights Act of 1964 is monitored by the Equal Employment Opportunity Commission (EEOC). ANSWER: T, Knowledge, Moderate, p. 357 8. The FLSA (Fair Labor Standards Act) is a federal law that specifies a national minimum wage rate and requires payment for overtime work by covered employees. ANSWER: T, Knowledge, Difficult, p. 359 9. The case against Exxon for racial discrimination was the largest case of its kind, amounting to a settlement of some $140 million. ANSWER: F, Knowledge, Moderate, p. 359 10. Like the United States, Canada protects employees from discrimination on the basis of 83
  3. 3. CHAPTER 13: MANAGING HUMAN RESOURCES age, sex, origin, race, religion, and marital status. ANSWER: F, Application, Difficult, p. 359 11. Compensation practices are covered by very few government regulations. ANSWER: F, Knowledge, Difficult, p. 359 12. The Fair Labor Standards Act originally guaranteed American workers a minimum wage of $2.25/hour. ANSWER: F, Knowledge, Difficult, p. 359 13. Pay discrepancies between men and women are usually due to historical factors, discrimination, or labor market conditions. ANSWER: T, Knowledge, Moderate, p. 360 Learning Objective 3 14. Contingent workers are ones who have been warned that they may be fired or laid off unless their performance improves. ANSWER: F, Knowledge, Moderate, p. 360 15. In effective organizations, strategic goals are established first, followed by goals for managing human resources that will be consistent with the broader goals. ANSWER: T, Knowledge, Moderate, p. 360 16. More than 60 percent of all large firms utilize some type of forecasting to project their HR needs. ANSWER: T, Knowledge, Moderate, p. 360 17. According to one study, approximately 50 percent of the companies that had trimmed their workforces were rehiring people the next year–either for their former jobs or for new permanent jobs. ANSWER: F, Knowledge, Difficult, p. 361 18. A recent survey of 217 companies revealed more than 100 different competency models in use. ANSWER: T, Knowledge, Moderate, p. 362 Learning Objective 4 19. Job vacancies are usually caused by random events in the organization. ANSWER: F, Knowledge, Difficult, pp. 362–363 20. In some organizations, staffing activities are centralized in the human resources department, and professional HR staff members do the recruiting and hiring. In less 84
  4. 4. CHAPTER 13: MANAGING HUMAN RESOURCES centralized organizations, however, line managers often have some responsibility for staffing activities. ANSWER: T, Knowledge, Moderate, p. 364 21. Recruitment is an outside search for persons to fill vacant positions. ANSWER: F, Knowledge, Moderate, p. 364 22. Acceptance of job applications is an aspect of the recruitment process. ANSWER: T, Knowledge, Easy, p. 364 23. Managers should request references and conduct reference checks because résumés are easily falsified. ANSWER: T, Knowledge, Moderate, p. 366 24. A cognitive ability test assesses the unique blend of personal characteristics that define an individual. ANSWER: F, Knowledge, Difficult, p. 366 25. Home Depot’s use of an automated staffing process means a woman is more likely to get a job based on her skills rather than on an interviewer’s stereotype. ANSWER: T, Knowledge, Moderate, p. 366 26. Personality tests can reveal a person’s extraversion and conscientiousness. ANSWER: T, Knowledge, Moderate, p. 366 27. BMW is known as an “aerobic workplace.” ANSWER: T, Knowledge, Easy, p. 367 Learning Objective 5 28. Even when a company hires the most qualified people available, it often still needs to invest in training and development activities. ANSWER: T, Knowledge, Moderate, p. 367 29. KMPG, a global consulting company, requires everyone—from senior partners to junior administrative assistants—to complete 50 hours of online training. ANSWER: T, Knowledge, Moderate, p. 368 30. Colgate’s training and development program is called People Development. ANSWER: T, Knowledge, Easy, p. 369 31. McDonald's and Motorola have built their own “universities” as a part of a long-term strategy to develop their employees. 85
  5. 5. CHAPTER 13: MANAGING HUMAN RESOURCES ANSWER: T, Knowledge, Easy, p. 369 32. When training is delivered using the Internet, it is commonly referred to as Web- learning. ANSWER: F, Knowledge, Moderate, p. 368 33. With mentoring, an expert observes the employee in their job over a period of time and provides continuous feedback on how to improve. ANSWER: F, Knowledge, Difficult, p. 370 Learning Objective 6 34. Performance appraisals work best as unstructured, informal sessions in which managers and subordinates can openly share their feelings. ANSWER: F, Knowledge, Easy, p. 371 35. Managers who meet directly with their subordinates to discuss the employees’ appraisal results are more likely to improve their performance as managers. ANSWER: T, Knowledge, Moderate, p. 372 36. Employees have been known to use ingratiation tactics to influence their supervisors' evaluations of their performance. ANSWER: T, Application, Easy, p. 372 37. Accurately assessing the performance of subordinates is an extremely easy managerial task, as compared to other management responsibilities. ANSWER: F, Knowledge, Moderate, p. 372 38. One useful way to provide employees with feedback is the 360-degree appraisal system. ANSWER: T, Knowledge, Easy, p. 374 39. The 360-degree appraisal uses mostly external sources to conduct performance evaluations with an accurate market perspective. ANSWER: F, Knowledge, Difficult, p. 374 40. In effectively handling appraisals and feedback, Con-Way trains workers to perform as a team and deliver feedback as a team. ANSWER: T, Knowledge, Moderate, p. 374 86
  6. 6. CHAPTER 13: MANAGING HUMAN RESOURCES Learning Objective 7 41. Monetary compensation includes direct pay such as salary and also insurance plans. ANSWER: T, Knowledge, Moderate, p. 375 42. A total compensation system has two major components: direct compensation and monetary compensation. ANSWER: F, Knowledge, Moderate, p. 375 43. Nonmonetary compensation does not influence employee satisfaction. ANSWER: F, Knowledge, Easy, p. 375 44. Monetary compensation can indirectly impact the organization's sustainable competitive advantage. ANSWER: T, Knowledge, Difficult, p. 375 45. Unless the compensation is perceived as externally competitive, the organization will have a difficult time attracting the best applicants. ANSWER: T, Knowledge, Moderate, p. 375 46. The guaranteed pay offered for a job is called incentive pay. ANSWER: F, Knowledge, Easy, p. 375 47. Incentive pay can be cost effective for the organization and also mean employees can earn more money. ANSWER: T, Application, Difficult, p. 376 48. Employee benefits are often a way to specially reward top managers and top producers. ANSWER: F, Knowledge, Moderate, p. 376 49. Benefits programs may include pay for time not at work—vacations, sick days, and short breaks. ANSWER: T, Knowledge, Easy, p. 376 50. American workers receive more vacation days than employees in many western European countries. ANSWER: F, Knowledge, Moderate, p. 376 87
  7. 7. CHAPTER 13: MANAGING HUMAN RESOURCES Multiple Choice Questions Preview 1. Which of the following is not one of Cisco Systems' human resources core values? a. worker satisfaction b. dedication to customer success c. teamwork d. doing more with less ANSWER: A, Knowledge, Difficult, p. 354 2. __________ is so important at Cisco Systems that disregarding it is one of the few things that can get a person fired. a. Nondiscrimination b. Employee honesty c. Teamwork d. Harassment policy ANSWER: C, Knowledge, Moderate, p. 354 Learning Objective 1 Strategic Importance 3. __________ refers to the philosophies, policies, and practices that an organization uses to affect the behaviors of people who work for it. a. Strategic focus b. Performance evaluation c. Human resources management d. Human resource planning ANSWER: C, Knowledge, Easy, p. 354 4. Human resources management is concerned with activities that affect the people who work for the organization. These activities include all of the following except __________. a. hiring b. training and development c. diversification strategies d. compensation ANSWER: C, Knowledge, Moderate, p. 354 5. Employers need to measure the performance of their workers, which at the very least amounts to __________. a. checking the accuracy of the work they perform b. reviewing performance once per year c. getting input from their immediate supervisor d. keeping track of hours worked ANSWER: D, Knowledge, Easy, p. 354 6. To gain sustainable competitive advantage through HRM, all of the following conditions must be met except: 88
  8. 8. CHAPTER 13: MANAGING HUMAN RESOURCES a. employees must be a source of added value. b. employees must be unique in some way. c. employees must use HR technology and systems effectively. d. competitors must find it difficult to imitate the company's HR approach. ANSWER: C, Knowledge, Difficult, p. 355 7. FedEx is a company with an excellent reputation for having a successful approach to HRM. What approach does FedEx use to accomplish this? a. They use an approach that can’t be copied. b. They hire employees who prefer to work part-time. c. They have been able to incorporate a competitive spirit among the employees. d. All of the above are used. ANSWER: A, Knowledge, Difficult, pp. 355–356 8. Human resources are particularly important to firms that have __________. a. weak marketing b. few tangible assets c. global customers d. too many competitors ANSWER: B, Knowledge, Moderate, p. 356 9. Kevin Morrison's business consultant told him that his employees were "voting with their feet" because they were __________. a. being treated unfairly b. not being appreciated c. leaving the company d. all of the above ANSWER: A, Application, Easy, p. 357 Learning Objective 2 The Legal and Regulatory Environment 10. __________ are not responsible for enforcing the law. a. Federal agencies b. Courts c. Labor relations boards d. HR attorneys ANSWER: D, Knowledge, Moderate, p. 357 89
  9. 9. CHAPTER 13: MANAGING HUMAN RESOURCES 11. As originally enacted in 1964, __________ prohibits employment discrimination based on race and religion. a. the Americans with Disabilities Act b. the Nondiscrimination Act c. the Equal Employment Opportunity Act d. Title VII of the Civil Rights Act ANSWER: D, Knowledge, Moderate, p. 357 12. Title VII of the Civil Rights Act of 1964 emphasizes the prohibition of discrimination in all aspects of employment except for __________. a. age and disability status b. religion and race c. color and ethnicity d. sex and race ANSWER: A, Knowledge, Moderate, p. 357 13. Employees of Middle Eastern ethnicity became targets of workplace discrimination immediately after the September 11, 2001 attacks, prompting __________. a. many false reports to the EEOC b. the EEOC to quickly alert employers to the responsibility they had to prevent any such discrimination in their organization c. deportation of illegal residents by the EEOC d. renewed interest in interpreting the Ethnic Discrimination Act ANSWER: B, Knowledge, Difficult, p. 357 14. Scott Gilbert owns and operates a local accounting firm. Most of the employees he hires are similar to him in age, culture, ethnicity, and religious affiliation. As a human resources professional, you might suggest that __________. a. diversification of his staff is not necessary for organizational success b. he can discriminate if he has conducted a job analysis c. he should become aware of regulatory influences d. he should be wary of an investigation by OSHA ANSWER: C, Application, Difficult, pp. 357–358 15. What legislation requires employers to ensure as far as possible safe and healthy working conditions and the preservation of our human resources? a. NLRA b. OSHA c. FICA d. FLSA ANSWER: B, Knowledge, Difficult, p. 358 90
  10. 10. CHAPTER 13: MANAGING HUMAN RESOURCES 16. What company was required to pay nearly $140 million to current and former employee for racial discrimination? a. Exxon b. Chevron c. Texaco d. Denny’s Restaurant ANSWER: C, Knowledge, Moderate, p. 359 17. When Cirque du Soleil hires employees around the world, it must __________. a. take cultural factors into consideration b. understand employment constraints that apply to individual countries c. adhere to local labor laws d. all of the above ANSWER: D, Knowledge, Easy, p. 359 18. A job notice had recently been posted announcing a preference for a Chinese female, 20 to 25 year old. What country would this announcement very likely be considered legal under the laws of that land? a. Hong Kong b. Japan c. United States d. United Kingdom ANSWER: A, Application, Difficult, p. 359 19. Compensation and benefits practices involve all of the following topics except __________. a. protection of children b. safe and healthy working conditions c. hardship pay d. taxation ANSWER: B, Knowledge, Easy, p. 359 20. Recent public discussions about __________ will have major long-term consequences for the ways companies use them in their future compensation plans. a. family care leave of absence b. flexible work arrangements c. performance feedback d. stock options ANSWER: D, Application, Moderate, p. 359 21. The minimum wage rate is specified in which law? a. Worker Adjustment and Retraining Notification Act b. Title VII of the Civil Rights Act c. National Labor Relations Act d. Fair Labor Standards Act ANSWER: D, Knowledge, Easy, p. 359 91
  11. 11. CHAPTER 13: MANAGING HUMAN RESOURCES 22. The _________ specifies a minimum wage and required payment for overtime work by covered employees. a. Consolidated Omnibus Budget Reconciliation Act of 1985 b. Equal Pay Act of 1963 c. Fair Labor Standards Act of 1938 d. Worker’s Compensation Act ANSWER: C, Knowledge, Moderate, p. 359 23. Congress has passed legislation that requires men and women to be paid on the same scale when they are doing similar work (in terms of skill, effort, responsibility, and working condition) in the same organization. This legislation is __________. a. Federal Insurance Contribution Act (FICA) of 1935 b. Workers’ Compensation Act c. Occupational Safety and Health Act of 1970 d. Equal Pay Act of 1963 ANSWER: D, Knowledge, Moderate, pp. 359–360 24. __________ legislation requires employers to assess the worth of all jobs and ensure that jobs of comparable worth are paid similarly. a. Equal pay b. Equal worth c. Comparable worth d. Civil rights ANSWER: C, Knowledge, Moderate, p. 360 25. Pay discrepancies in which a female dominated occupation is paid lower than male occupations of comparable worth may be due to __________. a. discrimination b. historical factors c. labor market conditions d. all of the above ANSWER: D, Knowledge, Moderate, p. 360 Learning Objective 3 Human Resources Planning 26. The first stage of the staffing process involves forecasting the organization’s human resources needs and developing the steps to be taken to meet them. What is this stage called? a. recruitment b. selection c. orientation d. human resources planning ANSWER: D, Knowledge, Moderate, p. 360 92
  12. 12. CHAPTER 13: MANAGING HUMAN RESOURCES 27. Human resources planning is tied directly to __________. a. self management b. strategic planning c. market conditions d. regulatory guidelines ANSWER: B, Knowledge, Moderate, p. 360 28. Typically, strategic goals are established first, followed by __________. a. environmental diagnosis b. goals for managing human resources c. strategies for global expansion d. goals for becoming team oriented ANSWER: B, Knowledge, Moderate, p. 360 29. At the heart of human resource planning are two tasks: determining an organization’s future human resource needs and __________. a. knowing the wage rates b. developing a strategy for meeting the firm's anticipated HR needs c. determining the organization’s current workforce capacity d. accepting the legal constraints on managing human resources ANSWER: B, Knowledge, Difficult, p. 360 30. Expert forecasting methods can be used to determine an organization’s demand for human resources. More than ___________ percent of all large firms utilize some type of expert forecasting to project HR needs. a. 40 b. 60 c. 75 d. 90 ANSWER: B, Knowledge, Difficult, p. 360 31. Layoffs should be __________. a. a strategy of last resort b. conducted slowly over a long period of time c. the preferred method to improve profits d. the responsibility of supervisors ANSWER: A, Knowledge, Moderate, p. 361 32. Which of the following is the most important purpose cited by companies for using a competency model? a. to keep track of the talent in the organization so that it can be nurtured b. raise the level of competency of all employees c. emphasize people capabilities to gain competitive advantage d. reinforce new company values ANSWER: A, Knowledge, Difficult, p. 362 33. A __________ refers to a detailed file for each employee that lists his or her level of 93
  13. 13. CHAPTER 13: MANAGING HUMAN RESOURCES education, training, experience, length of service, current job title and salary, and performance history. a. forecasting inventory b. replacement chart c. job inventory d. competency inventory ANSWER: D, Knowledge, Moderate, p. 362 Learning Objective 4 Hiring 34. __________ includes activities related to the recruitment and selection of job applicants. a. Employee development b. The hiring process c. Strategic human resources d. None of the above ANSWER: B, Knowledge, Easy, p. 362 35. Carmen Wheeler is the human resource manager for a retailer in the mall. Carmen knows the skills needed for her vacant job openings. Her next step in the staffing process is __________. a. empowerment b. recruitment c. establishing statistical sampling d. selection and hiring ANSWER: B, Application, Moderate, p. 363 36. Recruitment and selection are stimulated by __________. a. declining wage rates b. economic recessions c. availability of workers d. vacancies in the organization ANSWER: D, Knowledge, Difficult, p. 362 37. Advanced Financial Solutions is successful in recruitment and selection of new employees, as evidenced by __________. a. very low employee turnover b. high satisfaction on employee surveys c. waiting list of prospective employees d. all of the above ANSWER: A, Knowledge, Moderate, p. 363 94
  14. 14. CHAPTER 13: MANAGING HUMAN RESOURCES 38. Successful recruitment and selection of new employees at Advanced Financial Solutions is enhanced by all of the following activities except: a. inviting spouses to attend the introductory interview trip. b. one-week introductory visits to the company. c. one-year bonus for staying with the company. d. detailed reference checks of candidates. ANSWER: C, Knowledge, Moderate, p. 363 39. The largest problem encountered by jobseekers when looking for jobs on the Internet is __________. a. too much difficulty in navigating site b. lack of relevant information about the company c. not enough jobs listed to make it worth the effort d. slow follow-up ANSWER: D, Knowledge, Moderate, p. 365 40. Gerald Brock responded to a(n) __________ that he found on a bulletin board. a. recruitment plan b. interview offer c. job posting d. employee referral ANSWER: C, Application, Difficult, p. 364 41. Which of the following is not true of employee referrals? a. they are a very low-cost recruiting approach b. reference checks are not necessary c. retention rates are high d. quality of applicants is high ANSWER: B, Knowledge, Easy, p. 365 42. The process of __________involves deciding which recruits should actually be hired and for which position. a. recruiting b. employee selection c. reference checks d. career objective searches ANSWER: B, Knowledge, Easy, p. 365 43. A well-written resume should include all of the following except __________. a. personal data b. age c. career objectives d. work experience ANSWER: B, Knowledge, Easy, p. 365 95
  15. 15. CHAPTER 13: MANAGING HUMAN RESOURCES 44. __________ reference checks often reveal that an applicant has lied about his or her background. a. Educational qualification b. Credit history c. Department of motor vehicles d. Criminal background ANSWER: A, Knowledge, Moderate, p. 366 45. Work experience references can be difficult to check because __________. a. candidates are not honest in their answers b. employers may not be cooperative c. candidates may file a lawsuit for bad references d. all of the above ANSWER: D, Knowledge, Moderate, p. 366 46. An interviewer would role play a situation you could find on a job in a __________. a. personality test b. cognitive ability test c. performance test d. situational interview ANSWER: D, Knowledge, Easy, p. 366 47. A personality test which evaluates __________ is intended to indicate the extent to which the applicant has a strong sense of purpose, obligation, and persistence–all of which lead to high performance on the job. a. extraversion b. integrity c. conscientiousness d. intelligence ANSWER: C, Knowledge, Difficult, pp. 366–367 48. Tricia McBride is looking for a new seamstress for her clothing store. She interviewed a job candidate and wants to contact his former employer. Tricia knows that __________. a. by law, past employers must answer all of her questions about Janet b. contacting the references of the prospective employee will provide a complete picture of the applicant c. former employers are always an excellent source of information about prospective employees d. previous employers are often reluctant to provide performance evaluations of former employees ANSWER: D, Application, Moderate, p. 366 96
  16. 16. CHAPTER 13: MANAGING HUMAN RESOURCES 49. What type of interview asks the candidate to describe or demonstrate how he or she would handle a situation that is likely to arise on the job? a. situational b. cognitive c. stress d. unstructured ANSWER: A, Knowledge, Moderate, p. 366 50. A common type of selection test is the cognitive ability test. Cognitive ability tests measure all of the following except __________. a. characteristics that define an individual’s personality b. general intelligence c. numerical ability d. reasoning ability ANSWER: A, Knowledge, Easy, p. 366 51. Companies selecting new employees often subject the candidates to tests. Which of the following is not typically used by businesses? a. personality tests b. performance tests c. cognitive ability tests d. all of the above ANSWER: D, Knowledge, Moderate, pp. 366–367 52. A __________ simulates job situations in order to assess potential employee’s performance. a. cognitive ability test b. orientation program c. performance test d. team interview ANSWER: C, Knowledge, Moderate, p. 367 53. What company requires the job candidates to work for 90 minutes on a simulated assembly line? a. Ford Motor Company b. Procter & Gamble c. BMW d. Home Depot ANSWER: C, Knowledge, Moderate, p. 367 97
  17. 17. CHAPTER 13: MANAGING HUMAN RESOURCES Learning Objective 5 Training and Development 54. By providing employees with ___________, employers can help employees overcome their limitations and improve performance in their jobs. a. training b. self-insight c. orientation d. team work ANSWER: A, Knowledge, Easy, p. 367 55. By providing employees with opportunities for __________, employers can help employees attain the competencies needed to advance their careers. a. training b. development c. new technology d. team work ANSWER: B, Knowledge, Easy, p. 367 56. __________ programs improve an employee’s skills to the point where she or he can be successful in their job. a. Development b. Expatriate c. Training d. Succession ANSWER: C, Knowledge, Easy, p. 367 57. __________ programs improve an employee’s competency in preparation for future jobs. a. Development b. Comparable worth c. Expatriate d. Training ANSWER: A, Knowledge, Moderate, p. 367 98
  18. 18. CHAPTER 13: MANAGING HUMAN RESOURCES 58. Gary Kessler is discussing employee improvement with a colleague, Shana Velazquez. They are at odds over the difference between training and development. They decide to contact their former management professor, Lucas William, for an answer. Most likely, William will indicate that __________. a. training refers to improving an employee’s skill to do future jobs, whereas development seeks to develop an employee’s conceptual and human relations skills for the current job b. training refers to improving an employee’s skill to do current jobs, whereas development seeks to develop an employee’s conceptual and human relations skills for a future job c. training and development both refer to improving an employee’s ability to perform the currently assigned tasks d. There is no distinction between training and development. ANSWER: B, Application, Difficult, p. 367 59. The main purpose of training activities is to __________. a. reduce turnover b. give employees greater satisfaction levels c. incorporate ethical behavior into the production process d. overcome the limitations that are causing an employee to perform at less than the desired level ANSWER: D, Knowledge, Moderate, p. 367 60. Different approaches for training and developing employees are needed to achieve different purposes. All of the following are approaches employers use except __________. a. orientation training b. basic skills training c. new-technology training d. all of the above ANSWER: D, Knowledge, Easy, p. 367–368 61. After a general orientation program, Ritz-Carlton provides __________. a. more training b. a substantial pay raise c. employee benefits d. all of the above ANSWER: A, Knowledge, Moderate, p. 368 62. For the first 10 minutes of each day, all Ritz-Carlton employees participate in __________. a. physical exercise b. the "start-up" c. the "line-up" d. motivational talks ANSWER: C, Knowledge, Difficult, p. 368 63. Why did the Norwegian arm of British Petroleum (BP Norge) decide to restructure the 99
  19. 19. CHAPTER 13: MANAGING HUMAN RESOURCES organization around self-managed teams? a. They wanted to try a new training and development program. b. They wanted employees to take more risks. c. They wanted employees to communicate more about their feelings. d. They wanted to speed up decision making, reduce costs and cycle times, and increase innovation. ANSWER: D, Application, Moderate, p. 369 64. Colgate-Palmolive is one of the best known consumer goods companies in the world, generating nearly $10 billion annually in revenues. Identifying and developing employees who have what the company needs requires a plan. What is the name of Colgate’s plan to develop leaders? a. People Development b. People Management c. Character Building d. Talent Search ANSWER: A, Knowledge, Moderate, p. 369 65. The leadership competencies identified by Colgate includes all of the following except __________. a. business savvy b. use of personal influence c. entrepreneurial action d. aggressiveness ANSWER: D, Knowledge, Moderate, p. 369 66. All of the following are components of the “tool kit” used by Colgate to assist high- potential employees with managing their career except: a. craft an individual development plan. b. create a global training grid. c. develop a strategy for becoming an entrepreneur. d. identify off-the-job learning opportunities that would develop competencies. ANSWER: C, Knowledge, Difficult, p. 370 67. Many large companies provide so many hours of development activities to so many employees that they have built company “universities,” complete with classrooms, “dorm” rooms, and other amenities of a typical college campus. All of the following are companies known to provide these development programs except __________. a. General Electric b. McDonald’s c. Home Depot d. None of these companies provide such advanced development programs because of the high cost and few long-term benefits. ANSWER: C, Knowledge, Moderate, p. 369 100
  20. 20. CHAPTER 13: MANAGING HUMAN RESOURCES 68. With __________, an expert observes the employee in his or her own job over a period of time and furnishes continuous feedback on how to improve. a. performance appraisal b. employee review process c. mentoring d. coaching ANSWER: D, Application, Moderate, p. 370 69. The Service Parts Operations division of General Motors achieved improvements in their supervisory and leadership competencies. This resulted in __________. a. significantly improved business unit performance b. 75% better performance overall c. incentive awards for both managers and line workers d. all of the above ANSWER: A, Knowledge, Difficult, p. 371 70. The SPO unit at GM received coaching that was assessed on all of the following measures except __________. a. absenteeism b. customer satisfaction c. health and safety d. productivity ANSWER: B, Knowledge, Moderate, p. 371 Learning Objective 6 Performance Appraisal 71. __________is a formal, structured system for evaluating an employee's job performance. a. Job evaluation b. Feedback on performance c. Human resources management d. Performance appraisal ANSWER: D, Knowledge, Easy, p. 371 72. In the performance appraisal process, subordinates have the responsibility to __________. a. be committed to the manager b. seek honest feedback and use it c. providing clear and specific goals d. keep a personal record of the appraisals ANSWER: B, Knowledge, Difficult, p. 371 101
  21. 21. CHAPTER 13: MANAGING HUMAN RESOURCES 73. Much of the value of performance appraisals depends on __________. a. how much they cost b. perceptions of the employee c. legitimate power d. accuracy ANSWER: D, Knowledge, Difficult, p. 372 74. Rick Robertson is trying to improve the performance appraisal process he uses for his team. All of the following should be areas of concern except __________. a. judgmental error that managers make b. exploitative managers c. ingratiating employees d. poorly designed appraisal forms ANSWER: B, Application, Moderate, p. 372 75. A basic lesson that has been learned from research on performance appraisal accuracy is that __________. a. workers are essentially lazy b. performance evaluation is not as important as many people believe c. performance is very difficult to assess d. money is the only real motivator ANSWER: C, Knowledge, Easy, p. 372 76. Managers at TRW were interested in creating a performance appraisal system that would communicate the value of all of the following desired behaviors except __________. a. creativity b. trust c. teamwork d. embracing change ANSWER: A, Knowledge, Difficult, p. 372 77. One year after TRW initiated their new performance appraisal system, both managers and subordinates found it to be __________. a. worse than the previous system b. a heavy burden c. less efficient d. more efficient ANSWER: D, Knowledge, Easy, p. 373 102
  22. 22. CHAPTER 13: MANAGING HUMAN RESOURCES 78. Performance rating accuracy can be improved through training that focuses on __________. a. both written and verbal skills b. improving observational skills c. technical skills rather than "soft" skills d. all of the above ANSWER: B, Application, Moderate, p. 374 79. Team members who must evaluate each other are often affected by __________. a. competitiveness b. fear of retaliation c. fear of disrupting the team d. none of the above ANSWER: C, Knowledge, Moderate, p. 374 Learning Objective 7 Compensation 80. The total compensation that employees receive for the work they do includes a mix of both monetary and __________ compensation. a. job-based b. competency based c. nonmonetary d. differential ANSWER: C, Knowledge, Easy, p. 375 81. Nonmonetary compensation includes all of the following except __________. a. social rewards b. friendships c. respect from others d. insurance coverage ANSWER: D, Knowledge, Easy, p. 375 82. Nonmonetary compensation includes all of the following except __________. a. vacation b. family care c. bonuses d. health and wellness program ANSWER: C, Knowledge, Moderate, p. 375 103
  23. 23. CHAPTER 13: MANAGING HUMAN RESOURCES 83. Compensation is a key element in __________. a. creating a sustainable competitive advantage b. attracting talented people c. retaining talent d. all of the above ANSWER: D, Knowledge, Easy, p. 375 84. Which one of the following statements is not an accurate statement about compensation? a. A total compensation system has two major components: job-based and competency-based pay. b. Compensation often motivates and helps to retain good employees. c. Compensation provides one of the means to attract potential new employees. d. One of the objectives of compensation is to maximize productivity. ANSWER: A, Knowledge, Difficult, p. 375 85. Social and psychological rewards are __________. a. part of pay fairness b. nonmonetary compensation c. monetary compensation d. part of employee development ANSWER: B, Knowledge, Easy, p. 375 86. The employee benefits offered to part-time employees are generally __________. a. negotiated at the time of hiring b. very satisfying, especially for older workers c. only what is required by state and federal law d. not the same for full-time employees ANSWER: D, Knowledge, Difficult, p. 376 87. Edgar's neighbor Roscoe is the office manager at Quest Diagnostics. He wants to join the company because he heard that their health insurance is free. His assumption would be __________. a. right because all full-time employees generally receive the same benefits b. wrong because managers usually get better benefits c. wrong because employers are not required to offer coverage d. unclear because benefits are negotiated at the time of hiring ANSWER: A, Application, Difficult, p. 376 88. Wages and salaries only make up __________ of the cost of employing a worker. a. 52 percent b. 68 percent c. 76 percent d. 89 percent ANSWER: B, Knowledge, Moderate, p. 376 89. The average American company incurs a voluntary cost for pensions, insurance, etc. of 104
  24. 24. CHAPTER 13: MANAGING HUMAN RESOURCES __________. a. 3 percent b. 9.2 percent c. 14.5 percent d. 21.8 percent ANSWER: C, Knowledge, Difficult, p. 376 90. When compensation is linked to the level of performance exhibited by employees, it is referred to as __________. a. monetary compensation b. direct compensation c. incentive pay d. in-kind pay ANSWER: C, Knowledge, Easy, p. 376 91. It is __________ for part-time workers to receive the same benefits as full-time employees. a. required b. unusual c. expected d. prohibited ANSWER: B, Knowledge, Moderate, p. 376 92. Employee benefits can include __________. a. in-kind-payments b. a reward for organizational members c. services provided by employers d. all of the above ANSWER: D, Knowledge, Moderate, p. 376 93. Which of the following benefits are required by law? a. health care b. disability insurance c. long-term retirement pension d. workers’ compensation ANSWER: D, Knowledge, Easy, p. 376 94. Which of the following statements regarding the advantages of incentive pay is not true? a. Incentive pay is expensive to the organization. b. Incentive pay motivates high performers to stay with an organization. c. Incentive pay attempts to link pay to performance. d. Incentive pay encourages superior performance and discourages inferior performance. ANSWER: A, Knowledge, Moderate, p. 376 105
  25. 25. CHAPTER 13: MANAGING HUMAN RESOURCES 95. Employers are obligated by law to provide certain benefits for their employees. These legally mandated benefits include all of the following except __________. a. unemployment compensation b. retirement pension c. Social Security d. workers’ compensation ANSWER: B, Knowledge, Easy, p. 376 96. Many companies offer benefits voluntarily, with no legal requirement specifying the types and amounts of benefits offered. All of the following are benefits some companies offer voluntarily to their employees except __________. a. health insurance b. paid vacation c. disability insurance d. workers’ compensation ANSWER: D, Knowledge, Easy, p. 376 97. Many American employees feel that __________ is not healthy. a. the balance between work and family life b. lack of government sponsored medical care c. our extensive holiday schedule d. none of the above ANSWER: A, Knowledge, Moderate, p. 376 98. Benefits that allow the worker to enjoy a better lifestyle and better meet their personal obligations include all of the following except __________. a. telecommuting b. flexible work schedules c. dependent care assistance d. all of the above ANSWER: D, Knowledge, Easy, p. 377 Essay Questions Learning Objective 1 1. Describe the strategic importance of human resources management (HRM). Human resources management (HRM) refers to the philosophies, policies, and practices that an organization uses to affect the behavior of the people who work for it. The strategic use of human resources can improve organizational effectiveness. Recruitment and selection are key to the performance of workers and retention of the best workers. Performance of employees needs to be monitored and measured. Training and instruction can be given, depending upon the amount that is needed. Research studies have linked HRM to bottom-line profits and productivity. Moderate, pp. 354–357 106
  26. 26. CHAPTER 13: MANAGING HUMAN RESOURCES 2. What must a company do to gain sustainable competitive advantage through HRM? Employees must be a source of added value, employees must be “rare” or unique in some way, and competitors must not be able to copy or imitate easily the company’s approach to human resource management. Easy, p. 355 Learning Objective 2 3. Identify and discuss several important laws and government regulations that affect how organizations manage their human resources. Many laws and government regulations govern human resources management. Two important categories of laws and regulations are those that are intended to ensure equal employment opportunity, and laws that provide oversight of compensation and benefits. A few of the major U.S. laws that managers need to understand are Title VII of the Civil Rights Act, the Fair Labor Standards Act, and the Equal Pay Act. Moderate, pp. 357–360 4. Discuss the relationship of the Equal Employment Opportunity Commission (EEOC) and Title VII of the Civil Rights Act. Title VII of the Civil Rights Act of 1964 prohibits workplace discrimination by employers, employment agencies, and unions on the basis of race, color, religion, sex, or national origin. Power to enforce Title VII of the Civil Rights Act rests with the Equal Employment Opportunity Commission (EEOC). In carrying out its duties, the EEOC has the authority to make rules, conduct investigations, make judgements about guilt, and impose sanctions. The EEOC has the responsibility and authority to prosecute companies that it believes are in violation of the law. Easy, p. 357 Learning Objective 3 5. State the objective of human resources planning. Human resources planning is used to forecast the organization’s HR needs and develop the steps to be taken to meet them. To determine future needs, forecasts often are used. Realizing that the future is difficult to predict, some organizations stay flexible by employing contingent workers who may be temporary. Those companies that maintain permanent workers often have to conduct layoffs when business declines. To assess the capabilities of the current workforce, competency inventories may be used. If gaps are identified between the available competencies and those likely to be needed in the future, other HR activities can be designed to minimize or eliminate the gap. Difficult, pp. 360–362 107
  27. 27. CHAPTER 13: MANAGING HUMAN RESOURCES 6. What is a contingent worker? Contingent workers are employees who are hired by companies for specific tasks or short periods of time with the understanding that their employment may be ended at any time. This saves the firm from the need of adding permanent workers and the resulting cost of benefits, training, and termination. Contingent workers include part-timers, freelancers, subcontractors, and independent professionals of many types. Their temporary assignments generally last 3 to 12 months. Easy, p. 360 Learning Objective 4 7. Explain the process that organizations use to recruit and select new hires. The hiring process includes two main activities: recruitment of job applicants and selection of the best applicants. When labor is in short supply, recruitment activities become increasingly important. Selecting the right people to hire from the pool of applicants helps improve productivity and reduce turnover. In the selection process, the most common sources of information used to evaluate an applicant are resumes, reference checks, interviews, and various types of tests. Of these, tests generally do the best job of predicting performance. Moderate, pp. 362–367 8. Identify three tests that are often used to predict the performance of a job candidate and explain briefly what each test attempts to measure. The cognitive ability test measures general intelligence; verbal, numerical, and reasoning ability; and the like. A personality test assesses the unique blend of characteristics that define an individual. A performance test requires a candidate to perform simulations of actual job tasks. Difficult, pp. 366–367 Learning Objective 5 9. Describe several types of training and development programs. Training programs may help employees develop the competencies they need to perform their best in their current jobs. Orientation training, basic skills training, e-learning, and team training are all examples of programs used to improve workforce performance. Development programs help employees develop competencies that will enable them to continue to advance in their careers over the long term. They often provide employees with tools to assess their own strengths and weaknesses and develop personal plans for improvement. Difficult, pp. 367–369 108
  28. 28. CHAPTER 13: MANAGING HUMAN RESOURCES 10. What is training and development? Explain how these programs can improve productivity. Training refers to improving an employee’s skills to the point where he or she can do the current job. Development involves improving an employee’s conceptual and human skills in preparation for future jobs. Training and development programs can help overcome the current and/or anticipated limitations of an employee’s performance. By overcoming these limitations, individuals and organizational productivity can be improved. Moderate, pp. 367–369 Learning Objective 6 11. Explain how managers use performance information to improve employee job performance. Performance appraisal is a formal, structured system for measuring job performance. During performance feedback sessions, managers and subordinates meet to exchange performance information and discuss how to improve performance. Regular assessment helps employees remain motivated to continue solving problems. Regular feedback is essential in determining if goals need to be readjusted. Accuracy is the final key elements in ensuring that managers are making good decisions and that subordinates will continue accepting those decisions. Moderate, pp. 371–372 12. What can organizations do to help managers be more accurate when conducting performance appraisals? Managers can use a rating scale format and memory aids. Organizations can require and develop rater training programs that focus on accuracy and offer rewards for completing appraisals in a timely and fair way. Organizations can implement the use of multiple raters, including the 360-degree appraisal, and encourage managers to provide feedback to the employees. Also, managers should be taught to understand sources of conflict between them and the employee, be prepared in the meeting, use problem- solving techniques, and follow-up with the employee and/or the team. Moderate, pp. 373–374 109
  29. 29. CHAPTER 13: MANAGING HUMAN RESOURCES Learning Objective 7 13. Discuss employee benefits and how they are related to compensation. Employee benefits are generally defined as in-kind payments or services provided to employees for their membership in the organization. Unlike direct compensation, which differs according to the job a person holds, full-time employees in an organization generally all receive the same benefits. Those benefits required by law include Social Security, unemployment compensation, and workers' compensation. Benefits which are not required by law are heath insurance and contributions to retirement programs. Some organizations offer life insurance, disability insurance, and savings plans. Vacations, holidays, and sick pay are also considered to be employee benefits. Difficult, p. 376 110

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