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Human Resource Management, 12e (Dessler)Chapter 14 Ethics, Justice, and Fair Treatment in HR Management

1) The principles of conduct governing an individual or a group are referred to as ________.A) judgmentsB) normsC) ethicsD) lawsE) virtuesAnswer: CExplanation: Ethics refers to "the principles of conduct governing an individual or a group; specifically, the standards you use to decide what your conduct should be." Diff: 1 Page Ref: 506Chapter: 14Objective: 1Skill: Concept

2) When someone concludes that something is good or bad, right or wrong, a(n) ________ has been made.A) moral assessmentB) non-normative statementC) normative judgment D) distributive assessmentE) affective attitude judgmentAnswer: CExplanation: Making ethical decisions always involves normative judgments. A normative judgment means that something is good or bad, right or wrong, better or worse. Diff: 1 Page Ref: 506Chapter: 14Objective: 1Skill: Concept

3) Ethics refers to the ________.A) basic beliefs about what is right or wrongB) values, traditions, and behaviors a company's employees shareC) principles of conduct governing an individual or groupD) standards used by the organization to decide upon proper conductE) standards of behavior accepted by societyAnswer: CExplanation: Ethics refers to "the principles of conduct governing an individual or a group; specifically, the standards you use to decide what your conduct should be. A normative judgment means that something is right or wrong. Morals are society's highest accepted standards of behavior.Diff: 2 Page Ref: 506Chapter: 14Objective: 1Skill: Concept

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4) Which of the following is a normative statement?A) "Sam is wearing a business suit for today's meeting."B) "Our company offers health insurance for employees and their families."C) "The benefits offered by the company are exceptional compared to competing companies."D) "The company's revenue in 2003 was approximately $1.2 billion."E) "Employees are eligible to receive benefits after a 60 day period."Answer: CExplanation: A normative judgment means that something is good or bad, right or wrong, better or worse. Choice C offers an opinion, so it is a normative judgment. Choices A, B, D, and E are factual statements.Diff: 2 Page Ref: 506AACSB: Ethical ReasoningChapter: 1Objective: 1Skill: Application

5) What are the two components of ethical decisions? A) distributive justice and procedural justiceB) normative judgments and legal precedents C) morality and normative judgmentsD) moral awareness and common lawE) morality and fairnessAnswer: CExplanation: Making ethical decisions always involves normative judgments and morality. A normative judgment means that something is good or bad, right or wrong, better or worse. Morality is society's highest accepted standards of behavior.Diff: 2 Page Ref: 506Chapter: 14Objective: 1Skill: Concept

6) Which of the following best describes a normative judgment?A) assessment of whether something is good or badB) values, traditions, and behaviors a company's employees shareC) principles of conduct governing an individual or groupD) standards used by the organization to decide upon proper conductE) highest accepted standards of behavior in a societyAnswer: AExplanation: A normative judgment means that something is right or wrong. Morals are society's highest accepted standards of behavior. Ethics refers to principles of conduct governing an individual or a group.Diff: 1 Page Ref: 506Chapter: 14Objective: 1Skill: Concept


7) Which of the following guides the most serious societal behaviors such as murder, stealing, and slander? A) normative judgmentsB) ethical conclusionsC) distributive justiceD) human rightsE) moral standardsAnswer: EExplanation: Moral standards guide behaviors of the most serious consequence to society's well-being, such as murder, lying, and slander. Moral judgments trigger strong emotions, and violating moral standards may result in shame and remorse. Diff: 2 Page Ref: 506Chapter: 14Objective: 1Skill: Concept

8) According to surveys, which of the following is the most commonly observed unethical behavior in the workplace? A) misuse of confidential informationB) abusive behavior towards workersC) falsification of financial recordsD) e-mail or Internet abuseE) sexual harassmentAnswer: BExplanation: Abusive or intimidating behavior towards employees is the most commonly observed unethical behavior in the workplace according to surveys. Choices A, C, D, and E occur as well but with less frequency.Diff: 2 Page Ref: 506Chapter: 14Objective: 1Skill: Concept

9) What are the two components of organizational justice?A) distributive justice and normative judgmentsB) procedural justice and distributive justiceC) normative justice and ethical treatment D) interactional justice and moralityE) interpersonal justice and fairnessAnswer: BExplanation: Experts generally define organizational justice in terms of at least two components—distributive justice and procedural justice. Distributive justice refers to the fairness and justice of the decision's result. Procedural justice refers to the fairness of the process.Diff: 2 Page Ref: 507Chapter: 14Objective: 1Skill: Concept


10) Which component of organizational justice refers to the fairness and justice of a decision's result?A) distributive justiceB) procedural justiceC) interactional justiceD) normative justiceE) interpersonal justiceAnswer: AExplanation: Distributive justice refers to the fairness and justice of the decision's result. Procedural justice refers to the fairness of the process.Diff: 1 Page Ref: 507Chapter: 14Objective: 1Skill: Concept

11) The distributive justice component of organizational justice is best defined as the ________. A) fairness of the decision process B) fairness of the decision's result C) manner in which the decision is madeD) degree to which the decision is moralE) extent to which the decision is good or badAnswer: BExplanation: Distributive justice refers to the fairness and justice of the decision's result. Procedural justice refers to the fairness of the process.Diff: 2 Page Ref: 507Chapter: 14Objective: 1Skill: Concept

12) Which component of organizational justice refers to the fairness of a process?A) distributive justiceB) procedural justiceC) interactional justiceD) normative justiceE) interpersonal justiceAnswer: BExplanation: Distributive justice refers to the fairness and justice of the decision's result. Procedural justice refers to the fairness of the process.Diff: 1 Page Ref: 507Chapter: 14Objective: 1Skill: Concept


13) Which of the following best defines procedural justice?A) fairness of a decision's result B) manner in which firms conduct businessC) fairness of the process used to make a decisionD) manner in which managers treat subordinatesE) the extent to which a decision is good or badAnswer: CExplanation: Distributive justice refers to the fairness and justice of the decision's result. Procedural justice refers to the fairness of the process.Diff: 1 Page Ref: 507Chapter: 14Objective: 1Skill: Concept

14) Based on research into ethical behavior in the workplace, which of the following is a true statement?A) Offering rewards for ethical behavior supports the intrinsic nature of personal ethics.B) Punishing unethical behavior fails to alter the behavior of others in the workplace.C) Managers significantly influence the ethical behavior of their subordinates.D) People typically maintain their moral compasses when they join a firm.E) Employees feel uncomfortable discussing ethics, so it should be avoided.Answer: CExplanation: Managers do a lot to influence ethics. According to one report, workplace misconduct dropped dramatically when employees said their supervisors exhibited ethical behavior. Rewarding ethical behavior can backfire, while punishing unethical behavior is essential. People alter their moral compasses when they join a firm, and discussing ethics openly is beneficial.Diff: 3 Page Ref: 508-509AACSB: Ethical ReasoningChapter: 14Objective: 2Skill: Concept

15) Which of the following terms refers to the characteristic values, traditions, and behaviors a company's employees share?A) organizational cultureB) organizational climateC) organizational ethicsD) corporate climateE) corporate mission Answer: AExplanation: Organizational culture is the characteristic values, traditions, and behaviors a company's employees share. A value is a basic belief about right and wrong. Diff: 1 Page Ref: 509Chapter: 14Objective: 2Skill: Concept


16) Which of the following best defines organizational culture?A) basic beliefs about what is right or wrong within a business or corporationB) characteristic values, traditions, and behaviors a firm's employees shareC) principles of conduct governing an individual, group, or companyD) standards used by an organization to determine proper conductE) standards of behavior accepted by society and its businessesAnswer: BExplanation: Organizational culture is the characteristic values, traditions, and behaviors a company'semployees share. A value is a basic belief about right and wrong. Diff: 2 Page Ref: 509Chapter: 14Objective: 2Skill: Concept

17) Which of the following best defines values as they relate to organizational culture? A) characteristic values, traditions, and behaviors a company's employees share B) standards used by the organization to decide upon proper conductC) principles of conduct governing an individual or groupD) basic beliefs about what is right or wrongE) standards of behavior accepted by societyAnswer: DExplanation: A value is a basic belief about right and wrong. Organizational culture is the characteristic values, traditions, and behaviors a company's employees share. Diff: 2 Page Ref: 509Chapter: 14Objective: 2Skill: Concept

18) According to research, which of the following has the greatest impact on work-related ethical decisions? A) organizational characteristicsB) environmental pressuresC) management attitudesD) corporate proceduresE) personal inclinationsAnswer: EExplanation: Researchers concluded that personal inclinations more strongly affected decisions than did environmental pressures or organizational characteristics. Managers have a significant influence over ethics in the workplace, but less than an individual's own morality.Diff: 2 Page Ref: 509AACSB: Ethical ReasoningChapter: 14Objective: 2Skill: Concept


19) As a manager, all of the following are methods that you should use to shape the ethical behavior of subordinates EXCEPT ________. A) clarifying expectationsB) serving as a role modelC) rewarding honest workD) taking credit for others' workE) penalizing workers' wrongdoingsAnswer: DExplanation: Taking credit for others' work is one way that managers lead subordinates towards unethical behavior. Managers need to set good examples, clarify expectations, reward honesty, and penalize wrongdoing.Diff: 3 Page Ref: 509-510AACSB: Ethical ReasoningChapter: 14Objective: 2Skill: Application

20) Johnson & Johnson has a corporate ethics code that states "We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services." What is the most likely purpose of Johnson & Johnson's ethics code? A) providing physical support for managersB) establishing disciplinary proceduresC) providing incentives for employeesD) clarifying expectations for employeesE) marketing to potential customersAnswer: DExplanation: Johnson & Johnson's ethics code clarifies the firm's expectations with respect to the values it considers critical. The firm expects its employees to follow the ethics code, but it does not clarify disciplinary procedures or offer incentives.Diff: 3 Page Ref: 510AACSB: Ethical ReasoningChapter: 14Objective: 2Skill: Application


21) When a company rewards employees who behave ethically using the firm's incentive plan and appraisal system, they are ________ to encourage ethical behavior.A) providing physical supportB) using storiesC) organizing ceremoniesD) clarifying expectationsE) using symbolsAnswer: AExplanation: Provide physical support. The physical manifestations of the manager's values—the incentives, appraisal criteria, and disciplinary procedures he or she uses, for instance—send strong signals regarding what employees should and should not do. Diff: 2 Page Ref: 510AACSB: Ethical ReasoningChapter: 14Objective: 2Skill: Concept

22) Which of the following terms refers to a firm without any procedures for diminishing bad behavior? A) fraudulent corporationB) unethical organizationC) misguided companyD) ethically toxic companyE) corporate toxinAnswer: DExplanation: An ethically toxic company is one in which all the usual procedures that normally diminish bad behavior are simply missing. For example, managers pressure or even reward employees for bad behavior or no one publicizes ethical standards.Diff: 1 Page Ref: 511Chapter: 14Objective: 2Skill: Concept


23) According to surveys, which of the following is the primary cause of ethical compromises in the work place?A) feeling peer pressureB) meeting schedule pressuresC) helping the business survive D) advancing a boss' career interestsE) advancing personal career interestsAnswer: BExplanation: Being under the gun to meet scheduling pressures was the number-one reported factor. For most of these employees, "meeting overly aggressive financial or business objectives" and "helping the company survive" were the two other top causes. "Advancing my own career or financial interests" ranked toward the bottom.Diff: 2 Page Ref: 511Chapter: 14Objective: 2Skill: Concept

24) All of the following are methods used by companies to prevent ethical compromises by employees EXCEPT ________. A) instituting ethics hotlinesB) providing ethics trainingC) penalizing whistleblowersD) establishing codes of conductE) providing ethics trainingAnswer: CExplanation: Ethics training and codes of conduct are ways of discouraging unethical behavior. Whistleblower policies can help reduce employer unethical behaviors. Whistleblowersare employees, who report incidents of unethical behavior to company ethics officers. While many employers fear whistleblowers, others encourage them, for instance, by instituting ethics hotlines.Diff: 2 Page Ref: 511-512AACSB: Ethical ReasoningChapter: 14Objective: 2Skill: Concept


25) Which of the following requires companies to declare whether they have a code of conduct? A) Taft-Hartley ActB) Landrum-Griffin ActC) Norris-LaGuardia ActD) Davis-Bacon ActE) Sarbanes-Oxley ActAnswer: EExplanation: The Sarbanes-Oxley Act (passed after a series of top corporate management ethical lapses) requires companies to declare whether they have a code of conduct. The other legislative acts are not related to corporate ethics. Diff: 2 Page Ref: 512Chapter: 14Objective: 2Skill: Concept

26) Which of the following memorializes the standards by which the employer expects its employees to adhere? A) ethics codeB) ethics testC) corporate codeD) mission statementE) employee handbookAnswer: AExplanation: An ethics code memorializes the standards to which the employer expects its employees to adhere, for instance with respect to bribery. All publicly traded companies in the United States should have one.Diff: 1 Page Ref: 512Chapter: 14Objective: 2Skill: Concept

27) A selection interview would most likely be considered unfair if a manager ________.A) involved two-way communication B) assessed applicants with consistency C) focused on personality issuesD) included an appeals processE) measured job-related criteriaAnswer: CExplanation: The screening process should focus on job-related criteria rather than personality issues. Applicants should have a chance to demonstrate competence and appeal decisions. Two-way communication is essential to screening applicants.Diff: 2 Page Ref: 512AACSB: Ethical ReasoningChapter: 14Objective: 3Skill: Application


28) What is the most likely reason for more firms providing ethics training to employees? A) Universities do not require all students to enroll in ethics courses. B) Employees seeking professional certification are tested on ethics.C) State laws require businesses to have written codes of conduct.D) Businesses fear being sued by customers for ethical misconduct. E) Federal laws encourage firms to comply with ethics training guidelines.Answer: EExplanation: For all practical purposes, ethics training is mandatory. Federal sentencing guidelinesreduced penalties for employers accused of misconduct who implemented codes of conduct and ethics training. An amendment to those guidelines now outlines stricter ethics training requirements.Diff: 3 Page Ref: 512AACSB: Ethical ReasoningChapter: 14Objective: 3Skill: Application

29) Health-Tech Materials is a firm that manufactures medical equipment purchased by hospitals and clinics. The firm employs over 2,500 workers in its two manufacturing facilities located in Texas and Arizona. Recently, Health-Tech dismissed a number of employees for ethics violations ranging from improper Internet usage to stealing company funds. In addition, the firm has been sued by two former employees for wrongful discharge. As a result, Health-Tech's top executives are evaluating the firm's hiring process, ethics training system, reward system, and disciplinary system to determine how to promote ethics and fair treatment.

Health-Tech's HR department has devised a brief ethics test for employees to use when determining if their actions match Health-Tech's code of conduct. Which of the following questions is LEAST likely to be included on the ethics test?A) Do these actions match Health-Tech's core values?B) What Health-Tech employees will be affected by my actions?C) Will my actions reflect negatively on the image of Health-Tech?D) Would I perform this action if I worked for a Health-Tech competitor?E) Is the action I am about to perform on behalf of Health-Tech a legal one? Answer: DExplanation: Choices A, B, C, and E are relevant questions for an employee to ask when evaluating the ethics of a decision made on behalf of Health-Tech. It is less relevant to ask if the action would be taken if the person worked for another firm because the other firm's values and ethics are not the issue. Diff: 3 Page Ref: 512AACSB: Reflective ThinkingChapter: 14Objective: 2Skill: Critical Thinking



Which of the following, if true, best supports the argument that Health-Tech should utilize online ethics program software?A) Health-Tech executives want to quantify the types of ethical issues that are most common at the firm in order to provide the most relevant training to employees.B) Health-Tech managers are required to monitor the computer usage of subordinates to determine their levels of productivity.C) Health-Tech discusses its code of conduct during employee orientation and also provides new employees with the firm's handbook.D) The Health-Tech web site provides dismissed employees with outplacement counseling and job posting links.E) The Health-Tech legal department requires the firm to post its ethics code and hiring procedures on the firm's web site to prevent legal problems.Answer: AExplanation: Online ethics program software enables firms to keep track of how well a firm and its employees are doing in terms of maintaining ethical standards. Such software would allow managers at Health-Tech to measure what ethical issues are most common in order to determine the most relevant training.Diff: 3 Page Ref: 513-514AACSB: Reflective ThinkingChapter: 14Objective: 3Skill: Critical Thinking

31) When do most firms provide employees with ethics training? A) after employees have taken sabbaticalsB) during employee orientation sessionsC) after employees receive promotionsD) during annual company conferencesE) after annual performance appraisalsAnswer: BExplanation: Almost 90% of employers convey their ethics codes during new hire orientation sessions. Other firms provide ethics training during annual training sessions or during new employee follow-up sessions.Diff: 3 Page Ref: 514Chapter: 14Objective: 3Skill: Concept


32) Which of the following is the most common method of providing ethics training to employees? A) requiring participation in videotaped ethics programsB) e-mailing copies of the firm's ethics newsletterC) distributing copies of company policies D) developing monthly ethics podcastsE) offering online ethics assistanceAnswer: CExplanation: Distributing copies of company policies or ethics handbooks are the most commonly used methods of conveying a firm's ethics to its employees. However, some firms use ethics newsletters or provide online assistance.Diff: 2 Page Ref: 514Chapter: 14Objective: 3Skill: Concept

33) Which of the following supervisory actions is LEAST likely to enhance the perception of fairness? A) asking employees for their input B) making more normative than nonnormative statementsC) allowing employees to participate in decisions that affect themD) ensuring that employees understand the reasons for a decisionE) making sure that employees understand the standards by which they will be judged Answer: BExplanation: The number of normative or nonnormative statements made by a supervisor has little influence on the perception of fairness. Supervisors should involve employees in decisions that affect them, ensure that employees understand the reasoning behind decisions, and make sure everyone knows in advance what standards are expected.Diff: 3 Page Ref: 516AACSB: CommunicationChapter: 14Objective: 3Skill: Application


34) Employers can foster perceptions of fairness through all of the following methods EXCEPT ________. A) distributing opinion surveys B) establishing employee hotlinesC) focusing on two-way communicationD) addressing the big picture instead of specific detailsE) involving employees in the decision-making processAnswer: DExplanation: Employers who foster two-way communication and focus on the specifics of a decision are more likely to be perceived as fair. Opinion surveys and hotlines help employees air concerns. Involving employees in decisions also helps enhance the perception of fairness. Diff: 3 Page Ref: 516AACSB: CommunicationChapter: 14Objective: 3Skill: Application


Which of the following best supports the argument that Health-Tech should establish an employee hotline?A) Health-Tech monitors its employees phone calls and Internet usage to protect itself from lawsuits and ethical violations.B) Independent contractors working for Health-Tech are not allowed to work for the firm's competitors, which angers most contractors.C) Exit interviews at Health-Tech indicate that employees feel uncomfortable about raising ethics concerns with managers.D) Health-Tech managers have been reluctant to terminate disruptive employees for fear of lawsuits.E) Unsatisfactory performance is the primary reason for employee dismissals at Health-Tech.Answer: CExplanation: Employee hotlines are used by firms to provide employees with an anonymous method of bringing questions or problems to management's attention. Employees who feel uncomfortable raising concerns with managers or fear retribution for doing so would benefit from a hotline.Diff: 3 Page Ref: 516AACSB: Reflective ThinkingChapter: 14Objective: 3Skill: Critical Thinking



Which of the following best supports the argument that Health-Tech should make significant changes to its disciplinary process?A) According to surveys, Health-Tech employees feel that managers do not listen to their concerns or take their opinions seriously.B) Health-Tech requires employees to receive annual ethics training to ensure that they understand the firm's latest policies.C) Health-Tech's main competitor uses fictional scenarios to test applicants' morality and has fewer ethics problems than Health-Tech. D) Health-Tech assigns decision-making leave to employees who repeatedly fail to comply with company rules.E) Historically, arbitrators have overturned the dismissal decisions of Health-Tech's managers because of unclear company rules.Answer: EExplanation: Arbitrators are more likely to overturn employers' decisions when the employer fails to have clear rules and regulations. Choice D indicates the firm uses nonpunitive punishment methods. Diff: 3 Page Ref: 517AACSB: Reflective ThinkingChapter: 14Objective: 4Skill: Critical Thinking

37) Which of the following is the primary element of properly developed disciplinary procedures? A) electronic employee monitoringB) clearly established rulesC) anonymous surveysD) legal representationE) severe penaltiesAnswer: BExplanation: Proper disciplinary procedures require employers to clearly specify rules and expectations of behavior, otherwise employees do not know what is required of them. Severe punishment and legal assistance may be required in some cases but not all. Diff: 3 Page Ref: 517Chapter: 14Objective: 4Skill: Concept


38) Which of the following suggests that when a woman fails to act as anticipated, men and women will treat her more harshly than if a man had acted in the same manner? A) glass ceilingB) evil woman thesisC) gender role errorD) self-serving biasE) fundamental attribution error Answer: BExplanation: The Evil Woman Thesis argues that women who commit [certain] offenses violate stereotypic assumptions about the proper behavior of women. These women will [then] be penalized for their inappropriate sex role behavior in addition to their other offenses." In other words, it argues that when a woman doesn't act the way other men and women think she should act, the men and women tend to overreact and treat her more harshly than they might if a man committed it.Diff: 2 Page Ref: 517Chapter: 14Objective: 4Skill: Concept

39) In which organizational document are an organization's rules and regulations usually stated?A) employee handbookB) code of ethicsC) sexual harassment training guideD) incorporation papersE) human resource policy manualAnswer: AExplanation: Upon hiring, tell employees, preferably in writing, what is not permitted. The employee handbook usually contains the rules and regulations.Diff: 1 Page Ref: 518Chapter: 14Objective: 4Skill: Concept

40) Which of the following terms refers to discipline without punishment?A) traditional disciplineB) democratic punishmentC) nonpunitive discipline D) corporal punishmentE) positive disciplineAnswer: CExplanation: Nonpunitive discipline is discipline without punishment. It usually involves a system of oral warnings and paid "decision-making leaves" in lieu of more traditional punishment.Diff: 1 Page Ref: 520Chapter: 14Objective: 4Skill: Concept


41) Employees at R&R Carpet and Tile are allowed to take one-hour lunch breaks. Todd's assistant, Suzanne, took a two-hour lunch break today without prior approval. Suzanne has never broken any other rules since being employed by the company. R&R has a nonpunitive discipline policy. Which of the following will most likely be Todd's response to Suzanne's violation? A) issuing a formal written reminder to Suzanne B) giving Suzanne a one-day leave with pay C) telling Suzanne that she is dismissedD) issuing an oral reminder to Suzanne E) docking Suzanne's paycheck Answer: DExplanation: The first step in nonpunitive discipline is issuing the employee an oral reminder. After that, a formal written reminder, decision-making leave, and the employee's dismissal are appropriate.Diff: 3 Page Ref: 520Chapter: 14Objective: 4Skill: Application


Which of the following undermines the argument that Health-Tech should shift from a traditional discipline system to a non-punitive discipline system?A) The most common employee discipline situations at Health-Tech involve theft or physical altercations.B) Health-Tech has already modified its hiring process to include ethics tests when screening job applicants. C) A court ruled in a wrongful discharge case against Health-Tech that the employee handbook served as an implied contract. D) Frequent tardiness is the primary infraction among Health-Tech employees who receive decision-making leave. E) During Health-Tech performance appraisals, managers review an employee's discipline record throughout his or her career.Answer: AExplanation: A non-punitive discipline program is not appropriate for serious issues, such as criminal activity or fighting. In such cases, immediate dismissal is typical. Non-punitive discipline is more appropriate for tardiness or absenteeism. Decision-making leave is one of the steps in nonpunitive discipline.Diff: 3 Page Ref: 520AACSB: Reflective ThinkingChapter: 14Objective: 4Skill: Critical Thinking


43) Which of the following is NOT one of the four points of the hot stove rule? A) impersonal B) immediateC) consistent D) feedbackE) warningAnswer: DExplanation: Supervisors traditionally apply the four points of what they call the "hot stove rule" when applying discipline. When touching a hot stove that says, "Don't touch," the person has a warning, and the pain is consistent, impersonal, and immediate.Diff: 2 Page Ref: 520Chapter: 14Objective: 4Skill: Concept

44) Which of the following is NOT one of the four types of privacy violations upheld by courts?A) intrusionB) drug testingC) disclosure of medical recordsD) publication of private mattersE) appropriation of an employee's name for commercial purposes Answer: BExplanation: The four main types of employee privacy violations upheld by courts are intrusion, publication of private matters, disclosure of medical records, and appropriation of an employee's name or likeness for commercial purposes. Drug testing employees is legal.Diff: 2 Page Ref: 520Chapter: 14Objective: 4Skill: Concept

45) Which of the following involves using fingerprints or iris scans to identify employees? A) electronic performance monitoring system B) electronic eavesdropping systemC) location monitoring systemD) digital dashboardE) biometricsAnswer: EExplanation: Biometrics involves the use of physical traits such as fingerprints or iris scans for identification. With fingerprint technology, the user passes his or her fingertip over an optical reader, or presses it onto a computer chip. Location monitoring involves checking the location and movement of employees.Diff: 1 Page Ref: 521AACSB: Use of IT Chapter: 14Objective: 4Skill: Concept


46) The business purpose exception to the Electronic Communications Privacy Act permits ________.A) employees to access private employer documents if they have reason to suspect unethical behavior by company agentsB) employers to monitor employee communications if the employees have given informed consentC) employers to monitor communications if they can show a legitimate business reason for doing soD) employers to listen to personal employee phone calls if the calls are made on employer timeE) employees to conduct personal business during work hours if they can show it is necessaryAnswer: CExplanation: The ECPA is a federal law intended to help restrict interception and monitoring of oral and wire communications. It contains two exceptions. The "business purpose exception" permits employers to monitor communications if they can show a legitimate business reason for doing so. The second, "consent exception," lets employers monitor communications if they have their employees' consent to do so.Diff: 3 Page Ref: 523Chapter: 14Objective: 4Skill: Concept

47) The consent exception to the Electronic Communications Privacy Act permits ________.A) employees to access private employer documents if they have reason to suspect unethical behavior by company agentsB) employers to monitor employee communications if the employees have given informed consentC) employers to monitor communications if they can show a legitimate business reason for doing soD) employers to listen to personal employee phone calls if the calls are made on employer timeE) employees to conduct personal business during work hours if they can show it is necessaryAnswer: BExplanation: The ECPA is a federal law intended to help restrict interception and monitoring of oral and wire communications. It contains two exceptions. The "business purpose exception" permits employers to monitor communications if they can show a legitimate business reason for doing so. The second, "consent exception," lets employers monitor communications if they have their employees' consent to do so.Diff: 3 Page Ref: 523Chapter: 14Objective: 4Skill: Concept


48) Which of the following terms refers to the involuntary termination of an employee's employment with a firm? A) sabbaticalB) dismissalC) insubordinationD) time off without payE) leave of absenceAnswer: BExplanation: Dismissal is the involuntary termination of an employee's employment with a firm. Insubordination is the willful disregard of authority. Diff: 1 Page Ref: 524Chapter: 14Objective: 5Skill: Concept

49) Which of the following best defines "termination at will"? A) employees can refuse to collaborate with specific coworkers for personal reasonsB) either the employer or the employee can end the employment relationship at anytime C) employers can deny employees' requests for vacation and leave for any reasonD) customers can end relationships with service providers for any reason at anytimeE) employers can end business relationships with clients even if a contract existsAnswer: BExplanation: Termination at will means that without a contract, either the employer or the employee could terminate at will the employment relationship. The employee can resign for any reason, at will, and the employer can dismiss an employee for any reason, at will.Diff: 2 Page Ref: 524Chapter: 14Objective: 5Skill: Concept

50) Which of the following is NOT responsible for eroding the strength of the "terminate at will" doctrine?A) implied employment contracts B) public relations campaignsC) occupational safety lawsD) public policiesE) EEO lawsAnswer: BExplanation: PR campaigns have had no impact on the erosion of the termination at will doctrine. Equal employment laws, OSHA, the concept of implied contracts, and public policies have decreased the power of termination at will.Diff: 2 Page Ref: 525Chapter: 14Objective: 5Skill: Concept


51) When a court determines that an employee handbook implies an employment contract, the ________ exception of the termination-at-will doctrine has most likely been used. A) good faith exceptionB) statutory exceptionC) common law exceptionD) public policy exceptionE) performance exceptionAnswer: CExplanation: With the common law exception, state courts often recognize the concept of implied contracts in employment. Thus, a court may decide that an employee handbook promising termination only "for just cause" may create an exception to the at-will rule.Diff: 2 Page Ref: 525Chapter: 14Objective: 5Skill: Concept

52) All of the following are reasonable grounds for dismissal EXCEPT ________.A) misconduct B) whistle blowingC) unsatisfactory performanceD) lack of job qualifications E) changed job requirements Answer: BExplanation: There are four bases for dismissal: unsatisfactory performance, misconduct, lack ofqualifications for the job, and changed requirements of (or elimination of) the job. Whistleblowing is not grounds for dismissal.Diff: 2 Page Ref: 525Chapter: 14Objective: 5Skill: Concept

53) Tracy is frequently absent from work and almost always late, so her manager has decided to fire her. Which of the following grounds for dismissal will her manager most likely use? A) misconduct B) insubordinationC) unsatisfactory performanceD) lack of qualifications for the jobE) changed requirements of the jobAnswer: CExplanation: Unsatisfactory performance means persistent failure to perform assigned duties or to meet prescribed job standards. Specific grounds include excessive absenteeism,tardiness, a persistent failure to meet normal job requirements, or an adverse attitudetoward the company, supervisor, or fellow employees.Diff: 2 Page Ref: 525Chapter: 14Objective: 5Skill: Application


54) Dismissal based on unsatisfactory performance is most appropriate if an employee ________. A) steals the employer's propertyB) fails to accomplish tasks despite diligenceC) shows an adverse attitude towards co-workersD) criticizes the boss in publicE) acts in an insubordinate mannerAnswer: CExplanation: Unsatisfactory performance means persistent failure to perform assigned duties or to meet prescribed job standards. Specific grounds include excessive absenteeism,tardiness, a persistent failure to meet normal job requirements, or an adverse attitudetoward the company, supervisor, or fellow employees.Diff: 2 Page Ref: 525Chapter: 14Objective: 5Skill: Application

55) Which of the grounds for dismissal is defined as the deliberate and willful violation of the employer's rules and may include stealing and insubordination?A) unsatisfactory performanceB) changed requirements of the jobC) lack of qualifications for the job D) misconductE) disregardAnswer: DExplanation: Misconduct is deliberate and willful violation of the employer's rules and may include stealing, rowdy behavior, and insubordination. Sometimes the misconduct is more serious, as when it causes someone else harm.Diff: 1 Page Ref: 525Chapter: 14Objective: 5Skill: Concept


56) When an employee's dismissal does not comply with the law or with the contractual agreement stated or implied by the firm via its employment application forms, employee manuals, or other promises, ________ has most likely occurred.A) mutinyB) insubordinationC) wrongful dischargeD) gross misconductE) emotional hardshipAnswer: CExplanation: Wrongful discharge refers to a dismissal that violates the law or that fails to comply with contractual arrangements stated or implied by the employer, for instance, in employee manuals.Diff: 1 Page Ref: 525Chapter: 14Objective: 5Skill: Concept

57) A situation is most likely considered gross misconduct if it involves an employee ________.A) distracting other workersB) violating safety statues C) showing a poor attitudeD) failing to complete tasksE) repeatedly arriving late Answer: BExplanation: Gross misconduct has occurred if an employee violates safety or civil statues. Distracting co-workers, having a bad attitude, failing to complete tasks, and arriving late for work are not considered gross misconduct.Diff: 2 Page Ref: 525-526Chapter: 14Objective: 5Skill: Application

58) Which of the following terms refers to the willful disregard or disobedience of a supervisor's authority?A) disobedience B) insubordinationC) picketingD) harassmentE) mutinyAnswer: BExplanation: Insubordination is a form of misconduct, and basically refers to willful disobedience and/or rebelliousness.Diff: 1 Page Ref: 525-526Chapter: 14Objective: 5Skill: Concept


59) All of the following are examples of insubordination EXCEPT ________. A) publicly criticizing a supervisor B) disregarding the chain of commandC) repeatedly failing to perform tasksD) deliberately defying company rulesE) leading an effort to remove the bossAnswer: CExplanation: Failing to perform tasks is a type of unsatisfactory performance. Acts of insubordination involve willfully disobeying authority, as with Choices A, B, D, and E.Diff: 2 Page Ref: 525-526Chapter: 14Objective: 5Skill: Concept

60) During which of the following is an employee informed of the fact that he or she has been dismissed? A) exit interviewB) appraisal interviewC) screening interviewD) termination interviewE) outplacement interviewAnswer: DExplanation: Telling an employee about his or her dismissal occurs in the termination interview. Exit interviews are conducted with employees who are leaving a firm for any reason for the purpose of gathering the employee's insight about the firm.Diff: 1 Page Ref: 528Chapter: 14Objective: 5Skill: Concept

61) Which of the following terms refers to a systematic process by which a terminated employee is trained and counseled in how to perform a self-appraisal and secure a new position?A) exit interviewB) outplacement counselingC) job counseling fairD) downsizingE) outsourcingAnswer: BExplanation: Outplacement counseling is a formal process by which a specialist trains and counsels a terminated person in the techniques of self-appraisal and securing a new position. Outplacement counseling is part of the terminated employee's support or severance package and is done by specialized outside firms.Diff: 1 Page Ref: 529Chapter: 14Objective: 5Skill: Concept


62) Which of the following is conducted with employees who are leaving a firm for the purpose of eliciting information about what is right or wrong with the job and the firm? A) outsourcing interviewB) termination interviewC) screening interviewD) mass interviewE) exit interviewAnswer: EExplanation: Many employers conduct exit interviews with employees who are leaving the firm for any reason. These are interviews, usually conducted by a human resource professional just prior to the employee leaving; they elicit information about the job or employer with the aim of giving employers insights into what is right—or wrong—about the firm. Diff: 1 Page Ref: 529Chapter: 14Objective: 5Skill: Concept

63) Which of the following terms refers to permanently dismissing a relatively large proportion of employees in an attempt to improve productivity and competitiveness?A) bumpingB) outsourcingC) downsizingD) contractingE) offshoringAnswer: CExplanation: Downsizing refers to permanently dismissing a relatively large proportion of employees in an attempt to improve productivity and competitiveness. Diff: 1 Page Ref: 531Chapter: 14Objective: 5Skill: Concept

64) Which of the following requires that employers of 100 or more employees provide 60 days' notice before starting a layoff of 50 or more people?A) COBRAB) ERISAC) Layoff Protection ActD) Electronic Communications Privacy ActE) Worker Adjustment and Retraining Notification Act Answer: EExplanation: The Worker Adjustment and Retraining Notification Act (popularly known as the plant closing law) requires employers of 100 or more employees to give 60 days' notice before closing a facility or starting a layoff of 50 people or more. The law gives employees time to seek other work or retraining by giving them advance notice.Diff: 2 Page Ref: 531Chapter: 14Objective: 5Skill: Concept


65) The plant closing law requires that employers ________.A) provide employees with training for different jobs B) offer employees comparable jobs in other facilitiesC) provide severance pay for at least three months D) notify employees 60 days before closing a facility E) layoff no more than 50 people at one facilityAnswer: DExplanation: The Worker Adjustment and Retraining Notification Act (popularly known as the plant closing law) requires employers of 100 or more employees to give 60 days' notice before closing a facility or starting a layoff of 50 people or more. The law gives employees time to seek other work or retraining by giving them advance notice.Diff: 3 Page Ref: 531Chapter: 14Objective: 5Skill: Concept

66) Which of the following is a true statement regarding all layoffs? A) Management provides severance packages to affected employees.B) Employees continue working for the firm on a part-time basis.C) Management expects the no-work situation to be temporary.D) Employees are permanently dismissed by the firm. E) Management offers employees the chance to retire.Answer: CExplanation: With layoffs, three conditions are usually present: (1) There is no work available forthese employees, (2) management expects the no-work situation to be temporaryand probably short term, and (3) management intends to recall the employees whenwork is again available. Severance packages, retirement options, and part-time work are not necessarily part of a layoff.Diff: 3 Page Ref: 532Chapter: 14Objective: 5Skill: Concept


67) The New York Stock Exchange recently eliminated all "reporter" jobs at the exchange. Reporters with seniority were able to remain employed by displacing co-workers in lower-level positions. Which of the following most likely occurred?A) downsizingB) bumpingC) stealingD) retiringE) skippingAnswer: BExplanation: Bumping occurs when an employee with seniority displaces a lower-level employee, or bumps them out of their position. Diff: 2 Page Ref: 532Chapter: 14Objective: 5Skill: Application

68) In bumping and layoff procedures, which of the following factors is most significant in determining which employees will remain employed with a firm?A) personalityB) appraisalsC) abilityD) seniorityE) meritAnswer: DExplanation: Seniority is usually the ultimate determinant of who will work during layoffs. Seniority can give way to merit or ability, but usually only when no senior employee is qualified for a particular job.Diff: 2 Page Ref: 532Chapter: 14Objective: 5Skill: Concept

69) All of the following are layoff and downsizing alternatives EXCEPT having employees ________. A) agree to pay reductions to keep everyone workingB) use their vacations during slow periods C) volunteer to work on a part-time basisD) work overtime hours at regular ratesE) take voluntary time off from workAnswer: DExplanation: Alternatives to layoffs and downsizing include finding volunteers who are interested in reducing hours or part-time work, reducing pay, having employees concentrate their vacations during slow periods, and having employees agree to take voluntary timeoff. Working overtime even at lower rates would not reduce costs for a firm.Diff: 3 Page Ref: 533Chapter: 14Objective: 5Skill: Concept


70) During a merger and acquisition, it is especially important for managers to be sensitive to employees who are dismissed so that ________. A) lawsuits stemming from ADA and EEO violations can be avoidedB) remaining employees will remain productive and committedC) exit interviews will reveal positive details about the firm D) trade secrets are not stolen by disgruntled employeesE) bumped employees can continue being promotedAnswer: BExplanation: The degree to which an organization treats the acquired group with care and dignity will affect the confidence, productivity, and commitment of those who remain. Choices A, C, D, and E are less relevant.Diff: 3 Page Ref: 533Chapter: 14Objective: 5Skill: Application

71) Ethical decisions always involve normative judgments about what is right or wrong.Answer: TRUEExplanation: Making ethical decisions always involves normative judgments and questions of morality.Diff: 1 Page Ref: 506AACSB: Ethical ReasoningChapter: 14Objective: 1Skill: Concept

72) "You are working on a laptop" is a normative statement.Answer: FALSEExplanation: "You are working on a laptop" is a nonnormative statement. A normative statement makes a judgment that something is good or bad, such as "You are so fortunate to have a great laptop."Diff: 2 Page Ref: 506Chapter: 14Objective: 1Skill: Application

73) Distributive justice refers to the manner in which managers conduct their interpersonal dealings with employees.Answer: FALSEExplanation: Distributive justice refers to the fairness and justice of the decision's result (for instance, did I get an equitable pay raise?). Procedural justice refers to the fairness of the process.Diff: 1 Page Ref: 507Chapter: 14Objective: 1Skill: Concept


74) Procedural justice refers to the fairness of the process by which a decision is made.Answer: TRUEExplanation: Procedural justice refers to the fairness of the process. Distributive justice refers to the fairness and justice of the decision's result.Diff: 1 Page Ref: 507Chapter: 14Objective: 1Skill: Concept

75) Two components of organizational justice are distributive justice and procedural justice. Answer: FALSEExplanation: With respect to employee relations, experts generally define organizational justice in terms of at least two components—distributive justice and procedural justice.Diff: 1 Page Ref: 507Chapter: 14Objective: 1Skill: Concept

76) Many people in the new business development group at GRS&M feel that Blaine was promoted due to her personal friendship with the supervisor rather than a fair review of the qualified employees in the group. This attitude is the result of the employees' perceived procedural justice relative to the decision.Answer: TRUEExplanation: Procedural justice refers to the fairness of the process (for instance, is the process my company uses to allocate merit raises fair?).Diff: 2 Page Ref: 507AACSB: Ethical ReasoningChapter: 14Objective: 1Skill: Application

77) The standards an individual uses to decide what his or her conduct should be are known as common law. Answer: FALSEExplanation: Ethics refers to the principles of conduct governing an individual or a group; specifically, the standards you use to decide what your conduct should be.Diff: 1 Page Ref: 507Chapter: 14Objective: 1Skill: Concept


78) The ethical or unethical influence of a manager on a subordinate tends to be subliminal. Answer: TRUEExplanation: The influence of a boss on a subordinate is often subliminal. He or she sends signals aboutthe appropriate way to behave. Those signals then create the culture to which employees respond.Diff: 2 Page Ref: 509AACSB: Ethical ReasoningChapter: 14Objective: 2Skill: Concept

79) The president of University National Bank in Palo Alto, California has his office on the main floor of the bank just off the lobby, and his door is always open unless he is in a private meeting. This represents a physical manifestation of the company's culture.Answer: TRUEExplanation: Organizational culture is the characteristic values, traditions, and behaviors a company's employees share. The firm's culture should therefore send clear signals about what is and isn'tacceptable behavior, such as leaving office doors open.Diff: 3 Page Ref: 509-510AACSB: Ethical ReasoningChapter: 14Objective: 2Skill: Concept

80) Hornblowers use procedural or legal channel to report incidents of unethical behavior to company ethics officers or to legal authorities.Answer: FALSEExplanation: Whistleblowers are individuals, frequently employees, who use procedural or legal channels to report incidents of unethical behavior to company ethics officers or to legal authorities. Whistleblower policies can help reduce employer unethical behaviors. Diff: 1 Page Ref: 511Chapter: 14Objective: 2Skill: Concept


81) The principal cause of ethical compromises is based on organizational pressure to meet a schedule or some other objective.Answer: TRUEExplanation: Being expected to meet scheduling pressures was the number-one reported factor for employees who made ethical compromises. For most of these employees, "meeting overly aggressive financial or business objectives" and "helping the company survive" were the two other top causes.Diff: 2 Page Ref: 511Chapter: 14Objective: 2Skill: Concept

82) The Sarbanes-Oxley Act requires publicly traded companies to declare whether they have a code of conduct, and it increases penalties for companies convicted of ethics violations if they have codes of conduct that were not properly enforced.Answer: FALSEExplanation: The Sarbanes-Oxley Act requires companies to declare whether they have a code of conduct.Federal sentencing guidelines reduce penalties for companies convicted of ethics violations if they have codes of conduct.Diff: 3 Page Ref: 512AACSB: Ethical ReasoningChapter: 14Objective: 2Skill: Concept

83) Unfortunately, employers have no tools for measuring the ethics of an individual during the applicant screening process, so employers do not realize they have hired an unethical person until it is too late. Answer: FALSEExplanation: Employers can use recruitment materials that emphasize ethics, such as honesty tests and background checks. Asking behavioral questions also measures an applicant's ethical nature. Diff: 2 Page Ref: 512Chapter: 14Objective: 3Skill: Concept

84) A firm's ethics code outlines its mission, vision, appraisal system, and hiring policies.Answer: FALSEExplanation: An ethics code memorializes the standards to which the employer expects its employees to adhere, for instance with respect to bribery. Strategies, mission, and vision are not directly relevant to a firm's ethics code.Diff: 1 Page Ref: 512Chapter: 14Objective: 2Skill: Concept


85) When firms do not deal swiftly and fairly with the unethical behavior of employees, ethical employees feel penalized. Answer: TRUEExplanation: To the extent that behavior is a function of its consequences, the manager needs to reward ethical behavior and penalize unethical behavior. Research suggests that employees expect the organization to dole out relatively harsh punishment for unethical conduct. If the company does not deal swiftly with unethical behavior, often the ethical employees feel punished.Diff: 2 Page Ref: 514-515AACSB: Ethical ReasoningChapter: 14Objective: 3Skill: Concept

86) The fair treatment of job applicants by HR managers leads to applicants having favorable opinions about the selection procedure and and the organization. Answer: TRUEExplanation: Job applicants who felt treated unfairly expressed more desire to appeal the outcome. Those who view the firm's testing programs as fair react more favorably to the selection procedure, and view the company and the job as more attractive.Diff: 1 Page Ref: 515Chapter: 14Objective: 3Skill: Concept

87) Although clarifying performance standards for employees makes them feel like performance appraisals are fair, involving employees in decision-making has no impact on perceived fairness. Answer: FALSEExplanation: Involving employees in the decisions that affect them by asking for their input and allowing them to refute ideas and assumptions increases the perception of fairness. Making sure everyone knows up front by what standards they will be judged also improves the perception of fairness. Diff: 3 Page Ref: 516AACSB: CommunicationChapter: 14Objective: 3Skill: Concept


88) The Evil Woman Thesis argues that when a woman doesn't act the way men and other women think she should, they will tend to treat her more harshly than they might if the alleged misdeed was done by a man.Answer: TRUEExplanation: According to the evil woman thesis, when a woman doesn't act the way other men and women think she should act, the men and women tend to overreact and treat her more harshly than they might if a man committed the same act.Diff: 2 Page Ref: 517Chapter: 14Objective: 4Skill: Concept

89) With a system of progressive penalties, the severity of the penalty depends on the offense and the employee's seniority level. Answer: FALSEExplanation: A system of progressive penalties is an aspect of effective discipline. Penalties typically range from oral warnings to written warnings to suspension from the job to discharge. The severity of the penalty is usually a function of the type of offense and the number of times it has occurred. Diff: 2 Page Ref: 518Chapter: 14Objective: 4Skill: Concept

90) Nonpunitive discipline is discipline involving oral warnings and paid "decision-making leaves of absence."Answer: TRUEExplanation: Nonpunitive discipline involves issuing oral reminders, formal written reminders, and decision-making leaves.Diff: 2 Page Ref: 520Chapter: 14Objective: 4Skill: Concept

91) Nonpunitive discipline attempts to gain short-term compliance from employees, while traditional discipline seeks long-term cooperation. Answer: FALSEExplanation: Traditional discipline has two potential drawbacks. First, no one likes to be punished. Second, punishment tends to gain short-term compliance, but not the sort of long-term cooperation employers often prefer. Nonpunitive discipline aims to avoid these drawbacks by gaining employees' acceptance of the rules while reducing the punitive nature of the discipline itself.Diff: 2 Page Ref: 520Chapter: 14Objective: 4Skill: Concept


92) The four main types of privacy upheld by courts are intrusion, publication of private matters, disclosure of medical records, and appropriation of an employee's name or likeness for commercial purposes.Answer: TRUEExplanation: The four main types of employee privacy violations upheld by courts are intrusion (locker room and bathroom surveillance), publication of private matters, disclosure of medical records, and appropriation of an employee's name or likeness for commercial purposes.Diff: 2 Page Ref: 520Chapter: 14Objective: 4Skill: Concept

93) If an employee conducts a personal phone call at work, the employer can legally eavesdrop and monitor the phone call.Answer: FALSEExplanation: Federal law and most state laws allow employers to monitor employees' phone calls in the ordinary course of business, but they must stop listening once it becomes clear that a conversation is personal rather than business related.Diff: 2 Page Ref: 523-524Chapter: 14Objective: 4Skill: Concept

94) Wrongful discharge occurs when an employee's dismissal does not comply with the law or with the contractual agreement stated or implied by the firm through its employment application forms and employee manuals.Answer: TRUEExplanation: Wrongful discharge refers to a dismissal that violates the law or that fails to comply with contractual arrangements stated or implied by the employer, for instance, in employee manuals. Three main protections against wrongful discharge have eroded the termination-at-will doctrine—statutory exceptions, common law exceptions, and public policy exceptions.Diff: 1 Page Ref: 525Chapter: 14Objective: 5Skill: Concept


95) Employers should avoid providing dismissed employees with full explanations of why and how termination decisions were made because such details typically lead the former employees to file wrongful discharge lawsuits. Answer: FALSEExplanation: Dismissed individuals who said that they were given full explanations of why and how termination decisions were made were more likely to perceive their layoff as fair and less likely to take the past employer to court.Diff: 2 Page Ref: 526AACSB: CommunicationChapter: 14Objective: 5Skill: Concept

96) With constructive discharge claims, plaintiffs argue that they quit because their employer made the work situation so intolerable.Answer: TRUEExplanation: In a constructive discharge claim, the plaintiff argues that he or she quit, but had no choice because the employer made the situation so intolerable at work.Diff: 1 Page Ref: 527Chapter: 14Objective: 5Skill: Concept

97) Experts recommend scheduling termination interviews for at least thirty minutes to allow plenty of time for outplacement counseling.Answer: FALSEExplanation: Termination interviews should be no more than ten minutes long. Outplacement counseling does not occur during the termination interview.Diff: 2 Page Ref: 528-529Chapter: 14Objective: 5Skill: Concept

98) The Worker Adjustment and Retraining Notification Act requires employers of 100 or more employees to give 60 days' notice before closing a facility.Answer: TRUEExplanation: The Worker Adjustment and Retraining Notification Act (popularly known as the plant closing law) requires employers of 100 or more employees to give 60 days' notice before closing a facility or starting a layoff of 50 people or more. It simply gives employees time to seek other work or retraining by giving them advance notice.Diff: 1 Page Ref: 531Chapter: 14Objective: 5Skill: Concept


99) Merit is the primary consideration used to determine which employees will remain with a firm and which ones will be dismissed when layoffs are necessary.Answer: FALSEExplanation: Seniority rather than merit or ability is the ultimate determinant regarding who will remain working.Diff: 2 Page Ref: 532Chapter: 14Objective: 5Skill: Concept

100) Because seniority is usually company wide, an employee in one job can bump or displace an employee in another job, provided the more senior person can do the job without further training.Answer: TRUEExplanation: Seniority in one job can bump or displace an employee in another job, provided the more senior person can do the job without further training.Diff: 2 Page Ref: 532Chapter: 14Objective: 5Skill: Concept

101) What is morality? How does an employee's morality relate to making ethical decisions in the workplace? Answer: Making ethical decisions always involve two things: normative judgments and morality. Morality is society's highest accepted standards of behavior. Moral standards guide behaviors of the most serious consequence to society's well-being, such as murder, lying, and slander. Authoritative bodies like legislatures can't change what morality means. Moral judgments also trigger strong emotions. Violating moral standards may therefore make someone feel ashamed or remorseful. The most powerful morality comes from within. Because people bring to their jobs their own ideas of what is morally right and wrong, the individual must shoulder much of the credit (or blame) for ethical choices. Research indicates that personal inclinations more strongly affect decisions than do environmental pressures or organizational characteristics.Diff: 3 Page Ref: 506, 509AACSB: Ethical ReasoningChapter: 14Objective: 1, 2Skill: Synthesis


102) What is organizational justice? How can firms ensure organizational justice in performance appraisals? Answer: Fairness is inseparable from what most people think of as "justice." A company that is just is, among other things, equitable, fair, impartial, and unbiased in how it does things. With respect to employee relations, experts generally define organizational justice in terms of at least two components—distributive justice and procedural justice. Distributive justice refers to the fairness and justice of the decision's result. Procedural justice refers to the fairness of the process. How you conduct appraisals is important in regards to fairness and organizational justice. Studies confirm that, in practice, some managers ignore accuracy in performance appraisals and instead use the process for political purposes Few things can send a more damaging signal about how fair and ethical the company is. To send the signal that organizational justice exists, standards should be clear, employees should understand the basis upon which you're going to appraise them, and the appraisal itself should be objective. Diff: 3 Page Ref: 507, 514AACSB: Ethical ReasoningChapter: 14Objective: 1, 3Skill: Synthesis

103) What is organizational culture? How can managers influence the ethical nature of a firm's culture? Answer: Organizational culture is the characteristic values, traditions, and behaviors a company's employees share.A value is a basic belief about what is right or wrong, or about what you should or shouldn't do. Values are important because they guide and channel behavior. Managing people and shaping their behavior therefore depends on shaping the values they use as behavioral guides.The firm's culture should therefore send clean signals about what is and isn't acceptable behavior. Managers can take several steps, including clarifying expectations with respect to values, providing physical support to reward ethical behavior, and walking the talk by setting a good example of expected behavior.Diff: 2 Page Ref: 509-510AACSB: Ethical ReasoningChapter: 14Objective: 2Skill: Application


104) What is an ethics code? What methods do firms use to monitor employees and ensure their compliance with ethics codes? Answer: An ethics code is a document that memorializes the standards the employer expects its employees to adhere to. Monitoring today goes beyond listening in on phone lines. Biometrics—using physical traits such as fingerprints or iris scans for identification—is one example. More than half of employers say they monitor their employees' incoming and outgoing e-mail; 27% monitorinternal e-mail as well. One survey found that 41% of large employers have someone reading employee e-mails. Ninety-six percent block access to adult Web sites; 61% block access to game sites.Diff: 3 Page Ref: 512, 521AACSB: Ethical ReasoningChapter: 14Objective: 2, 4Skill: Synthesis

105) What can you do as an HR manager to ensure that you hire ethical employees? Answer: Employers can start before the applicant even applies by creating recruitment materials that emphasize ethics. Use tools such as honesty tests and background checks to screen out undesirables. Ask behavioral questions such as, "Have you ever observed someone stretching the rules at work? What did you do about it? Diff: 2 Page Ref: 512AACSB: Ethical ReasoningChapter: 14Objective: 3Skill: Application

106) How do both firms and individuals benefit from fair treatment in the workplace? When employee discipline is necessary, how can firms ensure that the disciplinary process is fair? Answer: In addition to treating others as you would like to be treated, there are other reasons that managers should treat employees fairly. Arbitrators and the courts will consider the fairness of the employer's disciplinary procedures when reviewing disciplinary decisions. Fairness also relates to a wide range of positive employee outcomes. These include enhanced employee commitment and enhanced satisfaction with the organization, job, and leader and more "organizational citizenshipbehaviors." Job applicants who felt treated unfairly expressed more desire to appeal the outcome.Those who view the firm's testing programs as fair react more favorably to the selection procedure, and view the company and the job as more attractive.The three pillars for ensuring that the disciplinary process is fair are establishing clear rules and regulations, a system of progressive penalties, and an appeals process.Diff: 3 Page Ref: 513, 517-518AACSB: Ethical ReasoningChapter: 14Objective: 3, 4Skill: Synthesis


107) Explain the meaning of the Evil Woman Thesis and its implications for managers.Answer: The Evil Woman Thesis states that women who commit an offense that also violates assumptions about the proper behavior of women will be disciplined not only for the actual offense, but also for failing to adhere to appropriate sex role behavior. Managers must be cautious not to punish women more harshly than they would a man for the same offense. The disciplinary process should be fair and clear.Diff: 2 Page Ref: 517Chapter: 14Objective: 4Skill: Application

108) What is nonpunitive discipline? What are the steps of the nonpunitive discipline process? If you were a manager, would you use a system of traditional discipline or nonpunitive discipline? Why? Answer: Nonpunitive discipline refers to the use of discipline without punishment. In lieu of traditional punishment, employees who have disobeyed corporate rules are disciplined using the following system. First, an oral reminder of the rules in question is issued. If another infraction occurs within six weeks of the first, a formal written reminder is issued and a copy of the reminder is placed in the employee's personnel file. A private discussion is also held with the employee but without any threats. If a third incident occurs, the employee is given a one-day leave with pay to consider whether this job is a good fit for him or her and whether he or she will commit to meeting the company's policies. The following day, the employee meets with his or her supervisor to discuss his or her decision to stay and follow the rules or leave. If no further incidents occur, the suspension information is purged from the employee's file. If the behavior is repeated, the next step is dismissal.Diff: 3 Page Ref: 520AACSB: Ethical ReasoningChapter: 14Objective: 4Skill: Critical Thinking

109) What is the Sarbanes-Oxley Act? How has the legislation affected corporate ethics? Answer: The Sarbanes-Oxley Act was passed after a series of top corporate management ethical lapses. It requires companies to declare whether they have a code of conduct. Federal sentencing guidelines reduce penalties for companies convicted of ethics violations if they have codes of conduct. Passage of the Sarbanes-Oxley Act of 2002 made ethics compliance obligatory. As one lawyer put it, "Sarbanes-Oxley has added a wide range of new issues to the traditional compliance function." Among other things, the act requires that the CEO and the CFO of publicly traded companies personally attest to the accuracy of their companies' financial statements, and to the fact that internal controls are adequate. Diff: 3 Page Ref: 512, 515AACSB: Ethical ReasoningChapter: 14Objective: 2, 3Skill: Synthesis


110) What is the difference between layoffs and downsizings? What are the alternatives to layoffs and downsizings? Answer: Layoff generally refers to having selected employees take time off, with the expectation that they will come back to work. Downsizing refers to permanently dismissing a relatively large proportion of employees in an attempt to improve productivity and competitiveness. Companies use several methods to avoid layoffs and downsizings. These include voluntary reductions in pay, voluntary time off, concentrated vacations during slow times, and early retirement buy out packages. With the voluntary reduction in pay plan, all employees agree to reductions in pay to keep everyone working. With the voluntary time off approach, some employees agree to take some time off without pay. Other employers arrange for all or most employees to take vacations during slow periods. Early retirement programs enable those who can benefit from the layoff to accept an incentive to retire early.Diff: 3 Page Ref: 530-531, 533Chapter: 14Objective: 5Skill: Application


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