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 managing human resources effectively.

TF 1, 3, 5 4 2, 6

MC 3, 5, 9 2, 4, 8 1, 6, 7

ES 2 1 —

2. Describe several important laws and government regulations that affect how organizations manage their human resources.

TF — 7, 9, 13 8, 10, 11, 12

MC 17, 19, 21 10, 11, 12, 16, 20, 22, 23, 24, 25

13, 14, 15, 18

ES 4 3 —

3. Explain the objective of human resources planning and describe how organizations respond to the unpredictability of future business needs.

TF — 14, 15, 16, 18 17

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, 50

35, 37, 38, 39, 44, 45, 48, 49, 51, 52, 53

36, 40, 47

ES — 7 8

5. Describe several types of training and development programs.

TF 30, 31 28, 29, 32 33

MC 54, 55, 56, 60 57, 59, 61, 63, 64, 65, 67, 68, 70

58, 62, 66, 69

ES — 10 9

6. Describe several principles for improving the accuracy of managers' appraisals of employee performance.

TF 34, 36, 38 35, 37, 40 39

MC 71, 75, 77 74, 78, 79 72, 73, 76

ES — 11, 12 —

7. Describe the basic elements of a monetary compensation package.

TF 43, 46, 49, 50 41, 42, 45, 48 44, 47

MC 80, 81, 83, 85, 90, 93, 95, 96, 98

82, 88, 91, 92, 94, 97 84, 86, 87, 89

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

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10. Like the United States, Canada protects employees from discrimination on the basis of

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.

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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 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.


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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.


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

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team and deliver feedback as a team. ANSWER: T, Knowledge, Moderate, p. 374

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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

Preview1. Which of the following is not one of Cisco Systems' human resources core values?

a. worker satisfactionb. dedication to customer successc. teamworkd. 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. Nondiscriminationb. Employee honestyc. Teamworkd. Harassment policy

ANSWER: C, Knowledge, Moderate, p. 354


Strategic Importance3. __________ refers to the philosophies, policies, and practices that an organization uses

to affect the behaviors of people who work for it.a. Strategic focusb. Performance evaluationc. Human resources managementd. 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. hiringb. training and developmentc. diversification strategiesd. 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 performb. reviewing performance once per yearc. getting input from their immediate supervisor d. keeping track of hours worked

ANSWER: D, Knowledge, Easy, p. 354

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6. To gain sustainable competitive advantage through HRM, all of the following conditions must be met except: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 marketingb. few tangible assetsc. global customersd. 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 unfairlyb. not being appreciatedc. leaving the companyd. all of the above

ANSWER: A, Application, Easy, p. 357


The Legal and Regulatory Environment10. __________ are not responsible for enforcing the law.

a. Federal agenciesb. Courtsc. Labor relations boardsd. 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 racec. color and ethnicityd. 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 EEOCb. the EEOC to quickly alert employers to the responsibility they had to prevent any

such discrimination in their organizationc. deportation of illegal residents by the EEOCd. 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 successb. he can discriminate if he has conducted a job analysisc. he should become aware of regulatory influencesd. 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. NLRAb. OSHAc. FICAd. FLSA


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16. What company was required to pay nearly $140 million to current and former employee for racial discrimination?a. Exxonb. Chevronc. Texacod. Denny’s Restaurant


17. When Cirque du Soleil hires employees around the world, it must __________.a. take cultural factors into considerationb. understand employment constraints that apply to individual countriesc. adhere to local labor lawsd. 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 Kongb. Japanc. 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 childrenb. safe and healthy working conditionsc. hardship payd. 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 absenceb. flexible work arrangementsc. performance feedbackd. stock options

ANSWER: D, Application, Moderate, p. 359

21. The minimum wage rate is specified in which law?a. Worker Adjustment and Retraining Notification Actb. Title VII of the Civil Rights Actc. National Labor Relations Actd. Fair Labor Standards Act

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22. The _________ specifies a minimum wage and required payment for overtime work by covered employees.a. Consolidated Omnibus Budget Reconciliation Act of 1985b. Equal Pay Act of 1963c. Fair Labor Standards Act of 1938d. 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 1935b. Workers’ Compensation Actc. Occupational Safety and Health Act of 1970d. 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 payb. Equal worthc. Comparable worthd. 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. discriminationb. historical factorsc. labor market conditionsd. all of the above



Human Resources Planning26. 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. recruitmentb. selectionc. orientationd. human resources planning


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27. Human resources planning is tied directly to __________.a. self managementb. strategic planningc. market conditionsd. regulatory guidelines


28. Typically, strategic goals are established first, followed by __________.a. environmental diagnosisb. goals for managing human resourcesc. strategies for global expansiond. 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 ratesb. developing a strategy for meeting the firm's anticipated HR needsc. determining the organization’s current workforce capacityd. 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. 40b. 60c. 75d. 90


31. Layoffs should be __________.a. a strategy of last resortb. conducted slowly over a long period of timec. the preferred method to improve profitsd. 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 nurturedb. raise the level of competency of all employeesc. emphasize people capabilities to gain competitive advantaged. reinforce new company values


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33. A __________ refers to a detailed file for each employee that lists his or her level of education, training, experience, length of service, current job title and salary, and performance history.a. forecasting inventory b. replacement chartc. job inventoryd. competency inventory



Hiring 34. __________ includes activities related to the recruitment and selection of job applicants.

a. Employee developmentb. The hiring process c. Strategic human resourcesd. 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. recruitmentc. establishing statistical samplingd. selection and hiring

ANSWER: B, Application, Moderate, p. 363

36. Recruitment and selection are stimulated by __________.a. declining wage ratesb. economic recessionsc. availability of workersd. 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 turnoverb. high satisfaction on employee surveysc. waiting list of prospective employeesd. 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 siteb. lack of relevant information about the companyc. not enough jobs listed to make it worth the effortd. slow follow-up


40. Gerald Brock responded to a(n) __________ that he found on a bulletin board.a. recruitment planb. interview offerc. 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 approachb. reference checks are not necessaryc. retention rates are highd. quality of applicants is high


42. The process of __________involves deciding which recruits should actually be hired and for which position.a. recruitingb. employee selectionc. reference checksd. career objective searches


43. A well-written resume should include all of the following except __________.a. personal datab. agec. career objectivesd. work experience


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44. __________ reference checks often reveal that an applicant has lied about his or her background.a. Educational qualificationb. Credit historyc. Department of motor vehiclesd. Criminal background


45. Work experience references can be difficult to check because __________.a. candidates are not honest in their answersb. employers may not be cooperativec. candidates may file a lawsuit for bad referencesd. all of the above


46. An interviewer would role play a situation you could find on a job in a __________.a. personality testb. cognitive ability testc. performance testd. 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. extraversionb. integrityc. conscientiousnessd. 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 Janetb. contacting the references of the prospective employee will provide a complete

picture of the applicantc. former employers are always an excellent source of information about prospective

employeesd. 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. situationalb. cognitivec. stressd. 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 personalityb. general intelligencec. numerical abilityd. 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 testsb. performance testsc. cognitive ability testsd. 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 testb. orientation programc. performance testd. team interview


53. What company requires the job candidates to work for 90 minutes on a simulated assembly line?a. Ford Motor Companyb. Procter & Gamblec. BMWd. Home Depot


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Training and Development54. By providing employees with ___________, employers can help employees overcome

their limitations and improve performance in their jobs.a. trainingb. self-insightc. orientationd. 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. trainingb. developmentc. new technologyd. 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. Expatriatec. Trainingd. Succession


57. __________ programs improve an employee’s competency in preparation for future jobs.a. Development b. Comparable worthc. 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 levelsc. incorporate ethical behavior into the production processd. 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 trainingb. basic skills trainingc. new-technology trainingd. all of the above

ANSWER: D, Knowledge, Easy, p. 367–368

61. After a general orientation program, Ritz-Carlton provides __________.a. more trainingb. a substantial pay raisec. employee benefitsd. all of the above


62. For the first 10 minutes of each day, all Ritz-Carlton employees participate in __________.a. physical exerciseb. the "start-up"c. the "line-up"d. motivational talks


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63. Why did the Norwegian arm of British Petroleum (BP Norge) decide to restructure the 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 Developmentb. People Managementc. Character Buildingd. Talent Search


65. The leadership competencies identified by Colgate includes all of the following except __________.a. business savvyb. use of personal influencec. entrepreneurial actiond. 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 Electricb. McDonald’sc. Home Depotd. 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 appraisalb. employee review processc. mentoringd. 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 performanceb. 75% better performance overallc. incentive awards for both managers and line workersd. all of the above


70. The SPO unit at GM received coaching that was assessed on all of the following measures except __________.a. absenteeismb. customer satisfactionc. health and safetyd. productivity



Performance Appraisal71. __________is a formal, structured system for evaluating an employee's job

performance. a. Job evaluationb. Feedback on performancec. Human resources managementd. Performance appraisal


72. In the performance appraisal process, subordinates have the responsibility to __________.a. be committed to the managerb. seek honest feedback and use itc. providing clear and specific goalsd. 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 costb. perceptions of the employeec. legitimate powerd. 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 makeb. exploitative managersc. ingratiating employeesd. poorly designed appraisal forms


75. A basic lesson that has been learned from research on performance appraisal accuracy is that __________.a. workers are essentially lazyb. performance evaluation is not as important as many people believec. performance is very difficult to assessd. 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. creativityb. trustc. teamworkd. 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 systemb. a heavy burdenc. less efficientd. more efficient


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78. Performance rating accuracy can be improved through training that focuses on __________.a. both written and verbal skillsb. improving observational skillsc. technical skills rather than "soft" skillsd. all of the above


79. Team members who must evaluate each other are often affected by __________.a. competitivenessb. fear of retaliationc. fear of disrupting the teamd. 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-basedb. competency basedc. nonmonetaryd. differential


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


82. Nonmonetary compensation includes all of the following except __________.a. vacationb. family carec. bonusesd. health and wellness program


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83. Compensation is a key element in __________.a. creating a sustainable competitive advantageb. attracting talented peoplec. retaining talentd. 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 fairnessb. nonmonetary compensationc. monetary compensationd. part of employee development


86. The employee benefits offered to part-time employees are generally __________.a. negotiated at the time of hiringb. very satisfying, especially for older workersc. only what is required by state and federal lawd. 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 benefitsb. wrong because managers usually get better benefitsc. wrong because employers are not required to offer coveraged. 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 percentb. 68 percentc. 76 percentd. 89 percent


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89. The average American company incurs a voluntary cost for pensions, insurance, etc. of __________.a. 3 percentb. 9.2 percentc. 14.5 percentd. 21.8 percent


90. When compensation is linked to the level of performance exhibited by employees, it is referred to as __________.a. monetary compensationb. direct compensationc. incentive payd. in-kind pay


91. It is __________ for part-time workers to receive the same benefits as full-time employees.a. requiredb. unusualc. expectedd. prohibited


92. Employee benefits can include __________.a. in-kind-paymentsb. a reward for organizational membersc. services provided by employersd. all of the above


93. Which of the following benefits are required by law?a. health careb. disability insurancec. long-term retirement pensiond. 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.

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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 pensionc. Social Securityd. workers’ compensation


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 insuranceb. paid vacationc. disability insuranced. workers’ compensation


97. Many American employees feel that __________ is not healthy.a. the balance between work and family lifeb. lack of government sponsored medical carec. our extensive holiday scheduled. 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. telecommutingb. flexible work schedulesc. dependent care assistanced. 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.

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Moderate, pp. 354–357

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

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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.

Difficult, pp. 366–367 Learning Objective 5

9. Describe several types of training and development programs.

Training programs may help employees develop the competencies they need to perform their best in their current jobs. Orientation training, basic skills training, e-learning, and team training are all examples of programs used to improve workforce performance. Development programs help employees develop competencies that will enable them to continue to advance in their careers over the long term. They often provide employees with tools to assess their own strengths and weaknesses and develop personal plans for improvement.

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Difficult, pp. 367–369

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.


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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

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Tb13

Business

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