Tb13

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

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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.


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.



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

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

ANSWER: F, Application, Difficult, p. 359

11. Compensation practices are covered by very few government regulations.


12. The Fair Labor Standards Act originally guaranteed American workers a minimum wage
of $2.25/hour.


13. Pay discrepancies between men and women are usually due to historical factors,
discrimination, or labor market conditions.



14. Contingent workers are ones who have been warned that they may be fired or laid off
unless their performance improves.


15. In effective organizations, strategic goals are established first, followed by goals for
managing human resources that will be consistent with the broader goals.


16. More than 60 percent of all large firms utilize some type of forecasting to project their
HR needs.


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.


18. A recent survey of 217 companies revealed more than 100 different competency
models in use.



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
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centralized organizations, however, line managers often have some responsibility for
staffing activities.


21. Recruitment is an outside search for persons to fill vacant positions.


22. Acceptance of job applications is an aspect of the recruitment process.


23. Managers should request references and conduct reference checks because résumés
are easily falsified.


24. A cognitive ability test assesses the unique blend of personal characteristics that define
an individual.


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.


26. Personality tests can reveal a person’s extraversion and conscientiousness.


27. BMW is known as an “aerobic workplace.”



28. Even when a company hires the most qualified people available, it often still needs to
invest in training and development activities.


29. KMPG, a global consulting company, requires everyone—from senior partners to junior
administrative assistants—to complete 50 hours of online training.


30. Colgate’s training and development program is called People Development.


31. McDonald's and Motorola have built their own “universities” as a part of a long-term
strategy to develop their employees.
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32. When training is delivered using the Internet, it is commonly referred to as Web-
learning.


33. With mentoring, an expert observes the employee in their job over a period of time and
provides continuous feedback on how to improve.



34. Performance appraisals work best as unstructured, informal sessions in which
managers and subordinates can openly share their feelings.


35. Managers who meet directly with their subordinates to discuss the employees’ appraisal
results are more likely to improve their performance as managers.


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.


38. One useful way to provide employees with feedback is the 360-degree appraisal
system.


39. The 360-degree appraisal uses mostly external sources to conduct performance
evaluations with an accurate market perspective.


40. In effectively handling appraisals and feedback, Con-Way trains workers to perform as a
team and deliver feedback as a team.


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41. Monetary compensation includes direct pay such as salary and also insurance plans.


42. A total compensation system has two major components: direct compensation and
monetary compensation.


43. Nonmonetary compensation does not influence employee satisfaction.


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.


46. The guaranteed pay offered for a job is called incentive pay.


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.


49. Benefits programs may include pay for time not at work—vacations, sick days, and
short breaks.


50. American workers receive more vacation days than employees in many western
European countries.


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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


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


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:
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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


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

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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


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


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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


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


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


91


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


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


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



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


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27. Human resources planning is tied directly to __________.
a. self management
b. strategic planning
c. market conditions
d. regulatory guidelines


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


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


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


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


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


33. A __________ refers to a detailed file for each employee that lists his or her level of
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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



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


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


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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.


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


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


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


43. A well-written resume should include all of the following except __________.
a. personal data
b. age
c. career objectives
d. work experience


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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


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


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


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


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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


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


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


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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


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


57. __________ programs improve an employee’s competency in preparation for future
jobs.
a. Development
b. Comparable worth
c. Expatriate
d. Training


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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


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


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


63. Why did the Norwegian arm of British Petroleum (BP Norge) decide to restructure the
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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.


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


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


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.


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.


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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


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


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



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


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


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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


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


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


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


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


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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


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



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


81. Nonmonetary compensation includes all of the following except __________.
a. social rewards
b. friendships
c. respect from others
d. insurance coverage


82. Nonmonetary compensation includes all of the following except __________.
a. vacation
b. family care
c. bonuses
d. health and wellness program


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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


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.


85. Social and psychological rewards are __________.
a. part of pay fairness
b. nonmonetary compensation
c. monetary compensation
d. part of employee development


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


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


89. The average American company incurs a voluntary cost for pensions, insurance, etc. of
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__________.
a. 3 percent
b. 9.2 percent
c. 14.5 percent
d. 21.8 percent


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


91. It is __________ for part-time workers to receive the same benefits as full-time
employees.
a. required
b. unusual
c. expected
d. prohibited


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


93. Which of the following benefits are required by law?
a. health care
b. disability insurance
c. long-term retirement pension
d. workers’ compensation


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.


105


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


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


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


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


Essay Questions


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


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


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.


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


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


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


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.


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.



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.


108


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.



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.


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.


109



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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