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Human Resource Management

Is the strategic approach to nurturing and supporting employees and ensuring a positive workplace environment but typically include employee relations.



retaining talent

employee engagement

performance management



risk management


legal compliance

hospitality management

Three Crescent Inc. offers its employees the option of flexible-benefit plans. In this context, which of the following is a requirement resulting from Internal Revenue Code's Section 125 and/or The Deficit Reduction Act (DEFRA)?

  • Employees will need to complete more than three years of service before becoming eligible under the plan.
  • Employees must be allowed to make a choice only among taxable benefits.
  • Employee benefits elections must be revocable.
  • Employees will not be allowed to carryover individual balances if the selected benefits are not fully used.

According to Equal Employment Opportunity Commission (EEOC) guidelines, under no circumstances can the content of help-wanted ads indicate any race, sex, or age preference for a job.

  • True
  • False

The major functions of human resource management identified by the Society for Human Resource Management (SHRM) include all of the following EXCEPT:

  • Financial management.
  • Human resource selection.
  • Compensation and benefit administration.
  • Safety and health.

Which of the following is an effective practice for a manager to apply when conducting an employee's performance appraisal interview?

  • Being as subjective as possible
  • Evaluating the employee based on his or her personality
  • Knowing the employee's job description
  • Concentrating on the employee's weaknesses

____ is determined by administering a test to present employees, and correlating the test scores with the present employees' performance on the job.

  • Predictive validity
  • Content validity
  • Concurrent validity
  • Construct validity

A court order to stop an action that can result in irreparable damage to property when a situation is such that no adequate remedy is available is known as aNo:

  • Embargo.
  • Injunction.
  • Lockout.
  • Secondary boycott.

Which of the following is the most advanced step in the progression toward resolving a dispute or a grievance through a union grievance procedure?

  • Discharge
  • Involvement by supervisor's direct manager
  • Arbitration
  • Involvement of higher management and human resource department

A learning curve most frequently manifests as a:

  • Decreasing returns curve.
  • Inverted yield curve.
  • Linear positively sloped curve.
  • Sigmoid curve.

Incentive pay plans attempt to strengthen the performance-reward relationship and thus motivate the affected employees.

  • True
  • False

Immediacy in administering organizational discipline should denote:

  • Punishment based on past infractions, length of service, and other mitigating factors.
  • Prior warning about the infraction.
  • Rapidness without involving an emotional, irrational decision.
  • Immediate termination without investigation.

Job analysis gives the nature and requirements of specific jobs.

  • True
  • False

Patrolling at or near an employer's facility by individuals carrying signs to publicize the fact that a union is requesting an election to become the bargaining agent for the employees of the organization is known as:

  • Collective bargaining.
  • Informational picketing.
  • An employer lockout.
  • A secondary boycott.

The greatest criticism of grievance procedures that undergo the full process is the:

  • Involvement of a union at all stages.
  • Lack of enforceability of a final decision.
  • Amount of time required for resolving an issue.
  • Lack of internal stages of appeal.

The landmark decision by the Supreme Court of Massachusetts in the Commonwealth v. Hunt case was significant because it:

  • Guaranteed right-to-work for employees regardless of whether they were union members.
  • Rejected the doctrine that the actions of labor unions were illegal per se.
  • Outlawed yellow-dog contracts.
  • Limited the use of injunctions.

The laying off of large numbers of managerial and other employees is known as:

  • Outsourcing.
  • Rightsizing.
  • Crowdsourcing.
  • Downsizing.

Seniority systems are designed to benefit employees:

  • Who perform above the industry standards.
  • With greater length of service.
  • Who are categorized under minority groups.
  • With work experience in two or more organizations.

Management by objectives (MBO) requires that employees participate in the process of performance evaluation by helping to set objectives.

  • True
  • False

Job analysis is the first step in determining that employees receive fair compensation for their jobs.

  • True
  • False

Environmental factors should be viewed as:

  • Being the sole concern of employees, not their managers.
  • Modifying the effects of effort, ability, and direction.
  • Direct determinants of performance.
  • Performance obstacles under the control of employees.

When an organization is sold, the purchase price may be higher than the total value of its physical and financial assets. This difference is sometimes called ____.

  • social cost
  • level price
  • goodwill
  • potential value

Disability insurance protects employees who experience long-term or permanent disability.

  • True
  • False

Which of the following is a measurement and control system that uses a mix of quantitative and qualitative measures to evaluate performance within organizations?

  • Balanced scorecard
  • Gap analysis
  • SWOT analysis
  • HR metrics

As a federally administered insurance system, social security is, for the most part:

  • Subject to the defined requirements of local municipalities.
  • Optional for employees and employers.
  • Mandatory for employees and employers.
  • Exclusively designed for U.S. government-attached employees.

Which of the following acts is also known as the Wagner Act?

  • The National Labor Relations Act
  • The Labor-management Reporting and Disclosure Act
  • The Labor-management Relations Act
  • The Clayton Act

Perception speed tests measure a person's ability to visualize objects in space and determine their relationships.

  • True
  • False

The primary exception to the captive-audience doctrine is that management is prohibited from giving a speech on company time to a mass employee audience in the 48 hours immediately before a union election.

  • True
  • False

Classes of jobs that for pay purposes are grouped on the basis of their worth to an organization are called:

  • Pay grades.
  • Pay bands.
  • Pay slots.
  • Pay ranges.

Which of the following statements is true about arbitration?

  • Arbitration can seldom be used to resolve impasses during collective bargaining.
  • Interest arbitration is frequently used in the private sector.
  • Arbitration is most frequently used in the resolution of grievances between the parties involved in a dispute during a contract period.
  • Conventional interest arbitration requires an arbitrator to listen to arguments from both parties of a dispute and make a nonbinding decision.

In employee stock ownership plans:

  • Employees and their company equally share any incremental economic gains realized through increased productivity.
  • A company establishes a trust, which contains company stock purchased for the benefit of employee participants.
  • A company is not allowed to buy back shares when an employee retires or leaves the company.
  • Meager tax benefits are earned, making these plans unpopular among employees and their organizations.

Performance share plans involve performance units whose value is determined:

  • Upon a recipient's retirement or other form of separation.
  • By the end of an employee's performance appraisal.
  • At the beginning of each new financial quarter.
  • Over a period of three to five years.

The first step in the employee selection process is:

  • Employment testing.
  • Reference checking.
  • Conducting a preliminary interview.
  • Completing an employment application form.

Questionnaires evaluating trainees' reactions to training are normally administered:

  • Only if the training produces adverse results.
  • During the trainee's annual performance reviews.
  • Immediately following the training.
  • Before the training starts.

An open-door policy:

  • Gives an employee the right to appeal a disciplinary action taken against him or her to the manager's superior.
  • Requires a manager to take disciplinary against an employee in public.
  • Allows an employer to terminate an employment relationship at any time for virtually any reason or for no reason at all.
  • Requires a new employee to sign an "open-door" agreement as a condition of employment.

Prior to the passage of the Social Security Act of 1935, employee benefits were not widespread.

  • True
  • False

Which of the following is a disadvantage generally associated with recruiting from internal sources?

  • Employees tend to have inaccurate expectations from the organization.
  • It reduces promotion opportunities for the employees.
  • It reduces an organization's return on its investment in the workforce.
  • New ideas and innovations may be stifled.

Contingent workers include all of the following EXCEPT:

  • Short-term employees.
  • On-call workers.
  • Full-time employees.
  • Temporary workers.

To employers, an advantage of incentive pay over salary increases is that it:

  • Promotes equity since all employees end up with an equal amount of compensation.
  • Is not subject to payroll consideration for taxes and other deductions.
  • Is not permanent and would need to be earned during each designated period.
  • Disregards employees' performance.

Which of the following identifies the motions and movements necessary for performing a task or job?

  • Functional job analysis
  • Gap analysis
  • Methods study
  • Case-control study

One of the most promising approaches to overcoming performance appraisal errors is to:

  • Raises the tolerance level for errors.
  • Limits the appraising responsibility to the human resource department.
  • Improves appraisers' rating skills.
  • Bases the evaluation on the personality of employees rather than their performance.

In the context of collective bargaining agreements, an issue on which an employer and a union are not required to bargain is called aNo ____.

  • settled issue
  • exclusive issue
  • mandatory issue
  • permissive issue

Falsifying an employment application is not grounds for discipline, unless discovered at the time the application was completed.

  • True
  • False

The latest method for communicating a benefit package within an organization is to use intranet technology.

  • True
  • False

Ideally, the job evaluation process in an organization should ensure external equity, while wage surveys should ensure internal equity.

  • True
  • False

Averno Inc. wants to create a flexible base wage/salary structure. Which of the following will be true if the company decided to use the broadbanding approach?

  • Employees will become reluctant to take a lateral move or a downgrade along the pay structure.
  • Managers will find it difficult to move employees around in the organization.
  • Managers will have autonomy in setting pay rates.
  • Unnecessary distinctions among jobs will be created.

One of the best ways to encourage employment application form accuracy is to:

  • Considers an application for selection only after reference checking.
  • Includes a statement that termination could result due to falsification of any information.
  • Includes questions about applicants' race, color, national origin, or religion in the form.
  • Insists that all responses are transcribed directly from an applicant's resume.

Base wages and salaries are the hourly, weekly, or monthly pay that employees receive in exchange for their work.

  • True
  • False

Generally, in unionized organizations a grievance process is initiated by an organization that has a complaint regarding some action perceived to be inconsistent with the terms of the union contract.

  • True
  • False

In the ____ of job evaluation, job subfactors are used to describe compensable factors in detail.

  • point method
  • factor comparison method
  • job classification method
  • ranking method

Which of the following is a disadvantage of the factor comparison method of job evaluation?

  • It fails evaluate jobs on a component basis.
  • It is complicated because it breaks down compensable factors into subfactors.
  • It is not easily adapted to changes in the jobs being evaluated.
  • It disregards external market wage rates.

About two-thirds of apprentice able occupations are in the:

  • Software industry.
  • Banking sector.
  • Construction and manufacturing trades.
  • Agriculture and poultry sectors.

A job description should be a formal, written document, usually from one to three pages long.

  • True
  • False

Which of the following statements is true about a campus recruitment process?

  • The first step of campus recruitment is that all applicants go through an adjustment program at the company office.
  • Campus recruiting activities are usually coordinated by the university placement center.
  • Campus recruiting activities help fill high-level, or executive, positions within organizations.
  • The recruiters are paid employees of the college placement center.

Most job analyses are performed on existing jobs that have previously been designed.

  • True
  • False

Telecommuting is the practice of working at home or while traveling and being able to interact with the office.

  • True
  • False

A thorough job analysis often uncovers unsafe practices and/or environmental conditions associated with a job.

  • True
  • False

Job evaluation is a systematic determination of the value of each job in relation to other jobs outside an organization.

  • True
  • False

A No ____ is a written synopsis of the nature and requirements of a job.

  • organizational chart
  • job description
  • executive summary
  • job specification

People with AIDS and people who test positive for HIV antibodies are protected in their jobs by the Vocational Rehabilitation Act.

  • True
  • False

An employer is prohibited from conducting polls to verify a labor union's strength prior to an election.

  • True
  • False


  • Prevents the overlapping of pay ranges between two salary bands.
  • Reduces the number of pay grades in a salary system.
  • Results in narrow categories or groups of jobs.
  • Introduces unnecessary distinctions among jobs.

Which of the following organizational orientation topics is classified within the compensation area?

  • Profit margins
  • Insurance
  • Advances on pay
  • Tax shelter options

A No ____ is an aggregation of two or more micromotions and is usually thought of as a complete entity.

  • responsibility
  • task
  • element
  • duty

Which of the following would be grouped under the topic "economic factors" during organizational orientation programs?

  • The grievance procedures available
  • The procedure used to reimburse job expenses
  • The tax shelter options provided
  • The costs incurred on equipment

GH Pharma Inc. is planning to introduce employer-sponsored SIMPLE IRA as the retirement plan for its employees. Which of the following is true in this context?

  • If GH Pharma Inc. makes matching contributions it must match employee contributions up to 7 percent of the employee's compensation for the calendar year.
  • Employees who received at least $2,000 in compensation during any prior tax years will be eligible to participate in the firm's SIMPLE IRA plan for the current year.
  • If GH Pharma Inc. establishes a SIMPLE IRA it does not have to worry about meeting the minimum participation/minimum coverage rules applicable to other types of plans.
  • GH Pharma Inc. will need to make either matching contributions or elective contributions.

The Equal Employment Opportunity Commission (EEOC) encourages organizations to avoid recruiting primarily by ____ and walk-ins.

  • campus recruitment
  • online recruitment
  • employment agencies
  • employee referral

Metrics refers to:

  • Behavioral measures used to assess workforce knowledge.
  • Psychological tests used to evaluate the skills of an employee.
  • Any set of quantitative measures used to assess workforce performance.
  • Any set of qualitative measures used to evaluate employees' productivity.

____ is a relatively new concept whereby two or more part-time individuals perform a job that would normally be held by one full-time person.

  • Telecommuting
  • Job sharing
  • Condensed work week
  • Job rotation

_____ refers to the broad spectrum of human resource activities involved in obtaining and managing an organization's human resources.

  • Social audi
  • Supply chain management
  • Enterprise resource planning
  • Talent management

The Social Security Act requires all eligible individuals to register with aNo ____ before they can receive unemployment compensation.

  • state employment agency
  • employee leasing company
  • professional employer organization
  • temporary help agency

Performance-contingent compensation includes all of the following forms EXCEPT:

  • logging in a prescribed number of hours per week
  • merit pay based on supervisory appraisals
  • sales commissions
  • perfect attendance bonuses

____ requires that management initially bear the burden of proof of wrongdoing in discipline cases and that the severity of the punishment must coincide with the seriousness of an offense.

  • Due process
  • Just cause
  • Duty of fair representation
  • Class action

Under stock-for-stock swaps, an executive has the right to relinquish a stock option and receive from the company an amount equal to the appreciation in the stock price from the date the option was granted.

  • True
  • False

According to discipline rules in typical labor contracts, the first act of discipline in a minor offense is usually a:

  • Written warning.
  • One-day suspension.
  • Class-action suit.

A major disadvantage of the point method of job evaluation is that it:

  • Is relatively time-consuming and costly to develop.
  • Evaluates a job only in comparison to other positions.
  • Fails to allow evaluators to assign monetary values to jobs.
  • Is not detailed and specific.

Which of the following statements is NOT true about recruiting from internal sources?

  • It improves employee motivation and morale when it creates promotion opportunities or prevents layoffs.
  • It results in the inbreeding of ideas within an organization.
  • It improves an organization's return on its investment in the workforce.
  • It increases the likelihood of an employee having inaccurate expectations from an organization.

The primary problem with using ____ for employee selection purposes is that responses to the questions are not always sincere.

  • psychomotor tests
  • interest tests
  • proficiency tests
  • graphology

The incentive pay plan typically identified with many salespeople, which rewards employees, at least partly, on the basis of sales volume is termed a ____ plan.

  • stock option
  • piece work
  • Scanlon
  • commission

Generally, taking notes during a job interview should be avoided.

  • True
  • False

The ____, passed in 1935, gave employees the right to organize unions, bargain collectively with employers, and engage in other concerted actions for the purpose of mutual protection.

  • Clayton Act
  • Railway Labor Act
  • Taft-Hartley Act
  • Wagner Act

Which of the following is a typical disadvantage associated with employee referral?

  • New ideas and innovations may be stifled within an organization.
  • It is suitable only for short-term jobs.
  • It limits employees' participation in the recruitment process.
  • Cliques may develop within an organization.

____ refers to the freedom of jobholders to plan and organize their own work, work at their own pace, and move around and communicate as desired.

  • Job scope
  • Job specification
  • Job depth
  • Job specialization

In this method of job evaluation, certain classes of jobs are defined on the basis of differences in duties, responsibilities, skills, working conditions, and other job-related factors. Identify the method.

  • Job ranking
  • Job grading
  • Factor comparison method
  • Point method

If incentives are to be based on performance, all of the following are necessary concerning the affected employees EXCEPT that employees:

  • Should approve all details of the incentive plan.
  • Should have trust in management.
  • Must believe that the performance of others is accurately evaluated.
  • Must believe that their performance is fairly evaluated.

Which of the following is NOT a characteristic of a preliminary interview?

  • It should be conducted before the employment application form is filled.
  • It is normally conducted by a specialist from the human resource department.
  • It is generally a brief, exploratory interview.
  • It should include job-related questions.

Wage and salary surveys are used to collect comparative information on the policies, practices, and methods of wage payment from selected organizations in a particular type of industry.

  • True
  • False

Which of the following is an error that occurs in performance appraisals when a rater allows a single prominent characteristic of an employee to influence his or her judgment on each separate item in the performance appraisal?

  • The central tendency
  • Recency
  • The halo effect
  • Leniency

Which of the following statements is NOT true about an employee leasing company?

  • They supply highly skilled technical workers.
  • They ensure compliance with workplace regulations.
  • They place people in temporary positions.
  • They provide various employee benefits.

Federal Services Impasses Panel (FSIP) is an entity within the National Labor Relations Board (NLRB).

  • True
  • False

Qualified stock options are known for their:

  • Lack of restrictions.
  • Favorable tax treatment.
  • High rate of interests.
  • Lack of marketability.

Which of the following is an advantage of the point method of job evaluation?

  • It evaluates jobs only in comparison to the other positions in an organization.
  • The system is relatively inexpensive.
  • It is usually easier to develop than the factor comparison method.
  • The system is easy to keep current as jobs change.

When employees collectively refuse to work, it is known as a:

  • checkoff.
  • closed shop
  • Strike.
  • Lockout.

In the job ranking method of job evaluation, jobs are ranked from the simplest to the most difficult.

  • True
  • False

For premium-priced stock options, a stockholder realizes a gain only when the:

  • Selling price is equal to the exercise price.
  • Market value is equal to the exercise price.
  • Market value exceeds the exercise price.
  • Selling price is lower than the exercise price.

To determine the reliability of an employment test used by True Arc Inc., the test was administered to a group of employees. The results of the test were randomly separated into two equal groups. The scores of the two groups were then correlated to assess the reliability of the test. Which of the following methods of determining a test's reliability did True Arc Inc. use?

  • Test-retest
  • Parallel forms
  • Polygraph test
  • Split-halves

It is easier for new employees to absorb all the information in a company orientation program in one long session when compared to brief sessions spread over several days.

  • True
  • False

The Scanlon plan technically is not a profit-sharing plan, but it is a plan that shares with employees measurable savings in labor and production costs.

  • True
  • False

An employer can refuse to hire on the basis of an applicant's prior arrest and conviction record, if:

  • The company prides itself on a perfect record by all employees.
  • The employer can show that such a policy is job related.
  • A judicial appeal upheld a prior decision.
  • A lower court granted probation to the applicant at some point.

Mediation is also called:

  • Gissel bargaining.
  • Arbitration.
  • Conciliation.
  • Coordinated bargaining.

Top management executives constitute the vast majority of private-sector employees who hold stock options.

  • True
  • False

Unemployment compensation is designed to provide funds to employees who have lost their jobs through no fault of their own and who are seeking other jobs.

  • True
  • False

A refusal of an employer to let employees work is known as a:

  • Closed shop.
  • Strike.
  • Lockout.
  • Check off.

Which of the following statements is NOT true about the Occupational Information Network (O*NET) system?

  • It is supported by a comprehensive online database.
  • It was developed by the U.S. Department of Labor.
  • It is the United States' primary source of occupational information.
  • It preceded the DOT system, currently used by the federal government.

Gissel bargaining orders are issued by the management of a company.

  • True
  • False

A strike is the collective refusal of employees to work.

  • True
  • False

A job specification concentrates on the knowledge, skills, abilities, and other characteristics needed to perform the job.

  • True
  • False

The human resource department of Inverta Systems Inc. is redesigning its existing new employee orientation program. To ensure that the new orientation program is effective, the company should conduct the orientation:

  • After an employee has been on a job long enough to appreciate the sessions.
  • In brief sessions spread over several days.
  • Once in every six months for all employees.
  • As one long session as soon as a new employee joins the organization.

The sociotechnical approach to job design was first introduced as an alternative to the situational approach to viewing job design.

  • True
  • False

Recruitment refers to the process of:

  • Learning during which employees acquire the specific skills needed for a job.
  • Introducing new employees to an organization, work unit, and job.
  • Deploying highly skilled and experienced employees from one department of an organization to another.
  • Seeking and attracting a pool of people from which qualified candidates can be chosen for job vacancies.

The primary function of a human resource department is to provide support to operating managers on all human resource matters.

  • True
  • False

Why are employees often unaware of the benefits their organizations offer?

  • Employees generally do not take much interest in the benefits being offered as they are all taxable
  • Organizations often make little effort to communicate their employee benefits.
  • Organizations are not legally required to provide any benefits to their employees.
  • Employee benefits are an insignificant component of overall compensation.

In an effort to ensure the fair treatment of employees under pension plans, Congress passed the Employee Retirement Income Security Act (ERISA) in 1974.

  • True
  • False

One method to make performance appraisal systems more legally acceptable is by emphasizing work behaviors of the employee being assessed rather than his or her personal traits.

  • True
  • False

____ refers to how accurately a predictor actually predicts the criterion of job success.

  • Reliability
  • Adaptability
  • Agility
  • Validity

Corva Inc. provides a group life insurance for all its employees. Which of the following is true in this context?

  • Employees at Corva Inc. will have the option of purchasing more insurance at their own expense.
  • Corva Inc. will need to pay a higher premium and tax for employees earning above $35,000.
  • Corva Inc. will be required to provide a minimum coverage of $5,000.
  • Employees at Corva Inc. will have to go through a physical examination.

Most human resource certification programs require a person to have specific experience and education.

  • True
  • False

Which of the following statements is true regarding the Norris-La Guardia Act?

  • It established administrative procedures to ensure implementation of employee rights.
  • It declared yellow-dog contracts as legal.
  • It did not require management to bargain with their union.
  • It did not restrict the use of injunctions by employers.

Self-directed work teams are well established in Europe and especially in Scandinavia, but are relatively new in the United States.

  • True
  • False

Which of the following is an error that occurs in performance appraisals when a manager's ratings are grouped at the positive end instead of being spread throughout the performance scale?

  • The central tendency
  • The halo effect
  • Recency
  • Leniency

The 401(k) retirement plan is the most popular type of:

  • Defined-benefit plan.
  • Flat-benefit plan.
  • Defined-contribution plan.
  • Final-average-pay plan.

Every employee's pay is a matter of public record.

  • True
  • False

When a management makes its best offer at the outset of bargaining and firmly adheres to the offer throughout the bargaining sessions, it is known as:

  • A contract bar.
  • Gissel bargaining.
  • boulwarism.
  • A recognition bar.
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  • Mark 1.00 out of 1.00
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The Age Discrimination in Employment Act involves persons over ____ years of age.

  • 35
  • 21
  • 16
  • 40

The validity of a criterion predictor refers to the extent to which the predictor produces consistent results.

  • True
  • False

True Workers Union, a regional labor union, has been campaigning in several organizations to interest employees in joining it. Which of the following statements is true regarding soliciting support from employees?

  • Management has no authority to limit the distribution of union literature to nonwork areas.
  • Support for the union can be solicited only in nonwork areas.
  • Support for the union can be solicited only during nonworking time.
  • Union literature can be distributed during work time.

Which of the following areas of training evaluation attempts to measure changes in variables such as reduced turnover, reduced costs, and improved efficiency?

  • Behavior
  • Learning
  • Results
  • Reaction

The critical-incident appraisal method requires an evaluator to keep a written record of job behaviors that illustrate both the satisfactory and unsatisfactory performance of the employee being rated.

  • True
  • False

Even though not vested, an employee can still receive pension funds paid by the employer upon leaving a company.

  • True
  • False

Which of the following information does a job specification provide?

  • The supervision a jobholder will receive
  • The knowledge, skills, abilities, and other characteristics needed to perform a job
  • The meetings to be attended and reports to be filed by a jobholder
  • The duties and responsibilities involved in a job

It is important for all organizations to require employees to sign a form indicating they have received and read the orientation kit.

  • True
  • False

It is not unusual for line managers in small organizations to recruit and interview job applicants.

  • True
  • False

____ involves seeking and attracting a pool of people from which qualified candidates for job vacancies can be chosen.

  • Appraisal
  • Recruitment
  • Requisition
  • Orientation

The Employee Retirement Income Security Act (ERISA) is designed to:

  • Help retirees find with suitable jobs.
  • Ensure the solvency of pension plans.
  • Provide funds for a limited period of time, usually up to 16 weeks.
  • Provide unemployment insurance to retirees.

Gerald is conducting a performance appraisal of the employees in his department, ranking them from the most to the least valuable. He lists the names of the employees to be rated on the left side of a sheet of paper. Then he chooses the most valuable employee on the list, crosses that name off the left-hand list, and puts it at the top of the column on the right-hand side of the paper. Next, he selects and crosses off the name of the least valuable employee from the left-hand column and moves it to the bottom of the right-hand column. Gerald repeats this process for all of the names on the left-hand side of the paper. The resulting list of names in the right-hand column gives a ranking of the employees from the most to the least valuable. Identify the ranking method Gerald is using.

  • Forced distribution
  • Alternation ranking
  • Central tendency distribution
  • Paired comparison ranking

A good rule of thumb when doing a wage survey in conjunction with either the point or factor comparison method is that a minimum of ____ percent of the jobs in an organization should be surveyed to make a fair evaluation of the organization's pay system.

  • 50
  • 20
  • 30
  • 5

Which of the following is NOT an advantage of an older workforce?

  • Reliability
  • Stability
  • Experience
  • Adaptability

A new employee's orientation responsibilities are normally shared between the:

  • New employee's peers and customer relationship managers.
  • Human resource department and the top management of the company.
  • Human resource department and the new employee's immediate manager.
  • New employee's subordinates and the line manager.

Determinants of performance include all of the following EXCEPT:

  • Diversity.
  • Ability.
  • Role perception.
  • Effort.

Revised data indicates that employee stock ownership plans (ESOPs) grew rather dramatically from the mid-1980s through the late 1990s.

  • True
  • False

Which of the following employee ranking systems assumes the performance level in a group of employees will be distributed according to a bell-shaped, or "normal," curve?

  • Alternation raking
  • Forced distribution method
  • Paired comparison ranking
  • Free determination method

A Scanlon plan is ordinarily a No ____ incentive.

  • group
  • individual
  • organizationwide
  • team-based

One of the ways in which an organization can involve its workforce in the recruiting process is through ____.

  • temporary help agencies
  • employee referrals
  • state employment agencies
  • headhunters

Spending more time with the line people, keeping a hand on the pulse of the organization, and learning to calculate costs and solutions in hard numbers are all suggestions that help human resource managers:

  • Play a limited role in strategic and policy-making activities.
  • Take a moralistic approach when dealing with operating managers.
  • Focus solely on their functional area.
  • Become more familiar with their businesses.

A human resource generalist is aNo:

  • Individual who devotes most of his or her time to human resource issues, but does not specialize in any one area.
  • Manager who specializes in recruiting and selecting employees for extremely large organizations.
  • Human resource professional who works on a freelance basis with several small companies.
  • Person specially trained in one or more areas of human resource management.

Over 60 percent of employees in an organization must sign authorization cards before the National Labor Relations Board (NLRB) may be requested to come in and supervise a union election.

  • True
  • False

With which of the following flexible work arrangements is the potential disadvantage of fatigue typically associated?

  • Crowdsourcing
  • Condensed work week
  • Job sharing
  • Telecommuting

The HR scorecard system uses a mix of quantitative and qualitative measures to evaluate performance.

  • True
  • False

Attracting, contacting, and evaluating potential employees is easier when recruiting from external sources.

  • True
  • False

Which of the following is a potential use of job evaluations?

  • To eliminate the need to compare jobs and pay rates with those of other organizations
  • To appraise the performance of employees holding the jobs
  • To develop a pay structure based on seniority alone
  • To reduce pay grievances by reducing their scope

Duties, when combined with responsibilities (obligations to be performed), define aNo ____.

  • micromotion
  • task
  • element
  • position

Which of the following acts is aimed primarily at regulating internal union affairs and protecting the rights of individual union members?

  • The Landrum-Griffin Act
  • The Taft-Hartley Act
  • The Norris-La Guardia Act
  • The Wagner Act

Most traditional compensation systems assume that in setting base compensation a firm should evaluate the value or contributions of each job, not how well the employee performs it.

  • True
  • False

A yellow-dog contract makes it mandatory for all employees to join a labor union.

  • True
  • False

Which of the following is a guideline for effectively communicating human resource programs?

  • Ignore the perceptual and behavioral aspects of communication.
  • Transmit data instead of information.
  • Avoid communicating in peer group or "privileged-class" language.
  • Disregard the cultural and global aspects of communication.

A successful and widely accepted method for imparting training in organizations is to first give trainees a brief overview of the job as a whole and then divide it into portions for in-depth instruction.

  • True
  • False

Human resource management is seen as being much narrower and more clerically oriented than personnel management.

  • True
  • False

The main issues contributing to the decision of employees to join a union are wages, benefits, working conditions, and job security.

  • True
  • False

Subcontracting work to an outside company that specializes in that particular type of work is known as ____.

  • Rightsizing
  • Outsourcing
  • Workshifting
  • Reengineering

Impartiality in grievance arbitration is reflected in:

  • The effort made by courts to ensure that an arbitrator has never ruled on a similar case.
  • An arbitrator's right to work outside the framework that the involved parties have negotiated in their collective bargaining agreement.
  • An arbitrator's power to subpoena witnesses or records.
  • The even sharing of an arbitrator's fee by the involved company and the union.

Perception speed tests measure a person's ability to:

  • Recognize similarities and differences.
  • Use words in thinking, planning, and communicating.
  • Visualize objects in space and determine their relationships.
  • Deal with numbers.

A ____ results when an employer agrees with a union not to handle or use the goods or services of another employer.

  • recognition bar
  • contract bar
  • closed shop
  • hot-cargo clause

The ____ rule is a limit used to determine whether or not there are serious discrepancies in hiring decisions and other employment practices affecting women or minorities.

  • 50/20
  • 70/30
  • 4/5ths
  • 2/3rds

The Federal Labor Relations Authority (FLRA) is composed of four members usually from a single political party.

  • True
  • False

The pool of talent from external sources is much larger than that available from internal sources.

  • True
  • False

The simplest unit of work that involves a very elementary movement is known as aNo ____.

  • occupation
  • task
  • micromotion
  • job

A manager should always administer discipline publicly in order to regain control of a situation; except in case of gross insubordination or flagrant and serious rule violations, where a private reprimand is required.

  • True
  • False

Notation of rules infractions in an employee's record constitutes advance warning and is sufficient to support disciplinary action.

  • True
  • False

Job sharing is especially attractive to people who want to work, but not full-time.

  • True
  • False

Which of the following is true of apprenticeship training?

  • Beginning workers in a highly skilled occupation cannot be trained through this method.
  • Apprentices learn most of the practical skills of a job through classroom training.
  • About three-fourths of apprenticeable occupations are in the service industry.
  • Wages paid apprentices usually begin at half those paid fully trained employees.

An employee's right to be dealt with fairly and justly during the investigation of an alleged offense and the administration of any subsequent disciplinary action is called:

  • Duty of fair representation.
  • Employment at will.
  • Due process.
  • Just cause.

Ordinarily, the largest portion of an employee's total compensation consists of:

  • Deferred bonuses
  • Incentives or commissions.
  • Fringe benefits.
  • Base wages or salaries.

A job specification may be prepared as the concluding section of a job description.

  • True
  • False

Grievance arbitration is a process whereby the parties involved in a grievance procedure voluntarily agree to settle a dispute through the use of an independent third party.

  • True
  • False

For group life insurance, physical examination is usually required for coverage.

  • True
  • False

Which of the following is a disadvantage of increasing organizational diversity?

  • Lack of responsiveness to diverse groups of customers
  • Increased intolerance toward wider views
  • Additional time required to deal with special interest groups
  • Reduced creativity among employees

Skill-based pay offers all of the following potential advantages EXCEPT:

  • it leads to lower compensation and training costs
  • it promotes cross-training
  • it increases employee's control over their compensation
  • management layers can be cut to produce a leaner organization

Which of the following statements is true regarding the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO)?

  • Its members are appointed by the President.
  • It negotiates all union contracts in the United States.
  • It administers the Civil Service Reform Act.
  • It is a federation of unions.

In order to avoid the risk of inviting an employment discrimination lawsuit during the recruitment process, employers should avoid asking for information that is related to an applicant's:

  • Expectations from a job.
  • Future career plans.
  • Education.
  • Age.

With skill based-pay:

  • there tend to be less opportunities for advancement
  • pay is tied to the employee's skill and competencies
  • pay usually changes automatically when the employee switches jobs
  • organizational flexibility is limited

Behaviorally anchored rating scales are designed to reduce halo, leniency, and central tendency errors.

  • True
  • False

Effective observations for determining an organization's training needs can be adeptly conducted by:

  • Employees who closely interact with customers and business clients.
  • Outside experts who are trained in auditing.
  • Human resource specialists who are trained in performing job analyses.
  • members of the board of directors (BOD)

Information is the raw material from which data is developed.

  • True
  • False

A No ____ is any directive or information that helps an employee perform a work component correctly, easily, and safely.

  • key point
  • affirmative action plan
  • executive summary
  • balanced scorecard

Methods study identifies the motions and movements necessary for performing a task or job and then designs the most efficient methods for putting those motions and movements together.

  • True
  • False

Most Scanlon plans pay ____ percent of the bonus fund to employees.

  • 100
  • 50
  • 75
  • 25

What is the most reliable and most expensive method of surveying wage data?

  • Controlled experimentation
  • Personal interviews
  • Mailed questionnaires
  • Telephone interviews

Psychomotor tests measure the job-related knowledge possessed by an applicant.

  • True
  • False

The first step in a job evaluation program is to gather information on the jobs being evaluated.

  • True
  • False

Alisha has worked as a receptionist in different companies. Irrespective of the organization she works for, her job requires similar skills, effort, and responsibility. Thus, being a receptionist may be viewed as aNo ____.

  • element
  • task
  • occupation
  • duty

Which of the following is a method of performance appraisal that attempts to eliminate evaluator bias by making a rater rank statements that are seemingly indistinguishable or unrelated?

  • Graphic rating scale
  • 360-degree feedback
  • Critical-incident appraisal
  • Forced-choice rating

One of the human resource functions is to provide assistance to employees with personal problems that influence their work performance.

  • True
  • False

Under conventional interest arbitration, an arbitrator is restricted to selecting the final offer of one of the parties involved in a dispute.

  • True
  • False

Which of the following statements is true about the motion study method of job analysis?

  • It determines the average time needed to perform a job or task.
  • It is primarily used to analyze jobs involving short and repetitive cycles.
  • It is best suited for analyzing complicated jobs.
  • It is a type of functional job analysis.

The objective of an employee selection process is to attract qualified candidates to apply for a job opening.

  • True
  • False

One of the key points in administering organizational discipline is immediacy. It refers to the length of time between any misconduct and the discipline.

  • True
  • False

Personal characteristics used in performing a job are called:

  • Needs.
  • Interests.
  • Efforts.
  • Abilities.

Which of the following unions had only skilled workers as members?

  • Craft unions
  • Farmer unions
  • Industrial unions
  • Production unions

Recruitment from within can have a significant, positive effect on employee motivation and morale.

  • True
  • False

The retirement age has been gradually decreasing over the last ten years.

  • True
  • False

One requirement of an incentive plan is that it be:

  • Based on seniority.
  • Based on performance.
  • Limited to employees in manufacturing.
  • Limited to nonmonetary redemption options.

Which of the following statements is true about a job?

  • It is a group of similar occupations.
  • It cannot be held by more than one person.
  • It can be defined as the simplest unit of work.
  • It is a group of identical positions.

Working at home by using an electronic linkup with a central office is known as ____.

  • outsourcing
  • crowdsourcing
  • reengineering
  • telecommuting

When a company establishes an employee stock ownership plan (ESOP), the shareholders risk losing voting control of the company.

  • True
  • False

Executive orders are issued for managing and operating private organizations.

  • True
  • False

Flexible plans can be positive for unions because they have total control over the program detail.

  • True
  • False

____ is the inclination of a manager to rate most employees' performance near the middle of the performance scale.

  • Fundamental attribution error
  • Central tendency error
  • Leniency error
  • Recency error

The primary purpose of a learning curve is to provide feedback on a trainee's progress.

  • True
  • False

Which of the following is an advantage of the work standards approach to performance review?

  • It allows comparability of standards for different job categories.
  • It is best suited for evaluating managers and professionals.
  • It is based on highly objective factors.
  • It sets the benchmark against the standards of the highest performers.

All employee benefits are legally required benefits.

  • True
  • False

A word processing test given to applicants for a secretarial job is an example of aNo ____.

  • personality test
  • polygraph test
  • interest test
  • proficiency test

To make its compensation structure attractive, SatLight Inc. is initiating new fringe benefits to be included in the structure. Which of the following employee benefits is legally required?

  • Stock bonus plan
  • Company-provided housing
  • Interest-free loan program
  • State disability insurance

Due process is the right of an employee to be dealt with fairly and justly during the investigation of an alleged offense and the administration of any subsequent disciplinary action.

  • True
  • False

One advantage of concurrent validation as a criterion predictor is that in situations in which either racial or sexual discrimination has been practiced in the past, minorities and women will be adequately represented.

  • True
  • False

Evaluation of training can be broken down into four areas. Which of the following is NOT one of those areas?

  • Reaction
  • Behavior
  • Results
  • Agility

Pertinent information relating to the nature of a specific job is determined via ____.

  • job sharing
  • career planning
  • succession charting
  • job analysis

The ____ of determining job value is objective and quantitative.

  • ranking method
  • job slotting method
  • job classification method
  • point method

Employees opposing unionization would likely cite any of the following reasons EXCEPT:

  • Political influence peddling.
  • Misuse of union dues.
  • Pressure to go along with union decisions.
  • Inadequacy of company management.

The process of evaluating and communicating to an employee how he or she is performing a job and establishing a plan of improvement is referred to as:

  • Benchmarking.
  • Career plateauing.
  • Performance appraisal.
  • Job analysis.

During the election campaign of a labor union, management can:

  • Initiate a campaign against the union, emphasizing the costs of unionization.
  • Threaten to withhold benefits in the event of unionization.
  • Promise to provide benefits in the future in the event of nonunionization.
  • Question employees individually about their preferences.

Which of the following major human resource functions within an organization would include designing discipline and grievance handling systems?

  • Human resource planning, recruitment, and selection
  • Employee and labor relations
  • Human resource development
  • Compensation and benefits

Training objectives should state what impact training will have on the employees and the organization when it is completed.

  • True
  • False

Which of the following is sometimes called cross training?

  • Job simulation
  • Job rotation
  • Classroom training
  • Behavioral training

Ideally, the human resource department should conduct a scheduled follow-up to the initial orientation after a new employee has been on the job for:

  • Six months.
  • Two weeks.
  • A month.
  • A year.

The primary method for determining the relative worth of jobs to an organization is termed:

  • Job positioning.
  • Job enrichment.
  • Job scoping.
  • Job evaluation.

The orientation from coworkers often provides new employees with inaccurate and misleading information.

  • True
  • False

Which of the following statements is true regarding the Railway Labor Act?

  • It set up the administrative machinery for handling labor relations within the railroad industry.
  • It established the Office of the General Counsel to administer the act within the railroad industry.
  • It was extended to the manufacturing industry in 1936.
  • It upheld the legality of yellow-dog contracts for railroad employees.

A grouping of work ____ makes up a work task.

  • duties
  • positions
  • elements
  • responsibilities

Common insurance-related employee benefits include:

  • Retirement gratuity.
  • Survivor benefits.
  • Annuity plans.
  • Paid rest periods.

To receive unemployment compensation, an individual must meet all of the following requirements EXCEPT he or she must:

  • Have voluntarily quit the former job.
  • Have been covered by Social Security for a minimum number of weeks.
  • Be unemployed due to a layoff.
  • Be willing to accept any suitable employment offered through the state's unemployment compensation commission.

____ are used to differentiate experienced and skilled workers from less experienced and less skilled workers.

  • Genetic tests
  • Job knowledge tests
  • Spatial tests
  • Perception speed tests

The demands of the unions that appeared between 1790 and 1820 in America were similar to those of unions today. Unions wanted job security, higher wages, and shorter working hours.

  • True
  • False

Which method is most commonly reserved for appraisal of managers and professionals?

  • Critical-incident appraisal
  • Management by objectives
  • Micromanagement programs
  • Work standards appraisal

Which of the following normally follows recruitment?

  • Selection
  • Human resource planning
  • Job description
  • Job analysis

An advantage of a structured interview is that it:

  • Provides a more relaxed atmosphere when compared to an unstructured interview.
  • Allows an employer to eliminate all the other steps in the employee selection process.
  • Helps eliminate an interviewer's personal biases completely.
  • Allows systematic coverage of all questions deemed necessary by an organization.

Which of the following statements is true of Internet recruiting?

  • Internet job listings tend to generate lower number of resumes when compared to a "want ad" in a Sunday newspaper.
  • Recruiting people online is mostly restricted to vacancies in areas such as manufacturing.
  • Job candidates seeking employment and managers searching for qualified job applicants are increasingly relying on the Internet.
  • Advertising a job vacancy on a company website or on a job board costs a lot.

The Civil Service Reform Act was the first important piece of prolabor legislation in the United States.

  • True
  • False

Under the ____, management has the right to speak against a union on company time to employees and require employees to attend the meeting.

  • just cause doctrine
  • captive-audience doctrine
  • contract bar doctrine
  • conspiracy doctrine

Realistic job previews (RJP) attempt to sell an organization and a job to a prospective employee by making both look good.

  • True
  • False

In an organization, who has the primary responsibility for a new employee's job training?

  • The new employee's manager
  • The new employee's coworkers
  • The external auditor
  • The top management

Research indicates that organizational suggestion systems are basically a waste of time and money for employers.

  • True
  • False

Strikes and lockouts are two names for the same type of job action.

  • True
  • False

Related tasks comprise the ____ of a job.

  • duties
  • macromotions
  • micromotions
  • elements

A needs assessment is a systematic analysis of the specific training activities an organization requires to achieve its objectives.

  • True
  • False

It is generally recommended that informal performance appraisals should be conducted two or three times a year for most employees.

  • True
  • False

Private pension plans can be funded entirely by an organization or jointly by an organization and an employee.

  • True
  • False

The Taft-Hartley Act did all of the following EXCEPT:

  • Making excessive union initiation fees illegal.
  • Reducing the size of the National Labor Relations Board (NLRB).
  • Eliminating most closed shop hiring arrangements.
  • Outlawing secondary boycotts.

An agreement between an employee and an employer stipulating that, as a condition of employment, the worker would not join a labor union is known as aNo:

  • Blacklist contract.
  • Embargo.
  • Cartel.
  • Yellow-dog contract.

The election for certification of a union as an exclusive bargaining agent is done by conducting a:

  • Show of hands.
  • Straw poll.
  • Secret ballot.
  • Voice vote.

Talent management involves identifying and developing outstanding performers only in the middle management.

  • True
  • False

The ____ labor force is the smallest group in the U.S. labor force.

  • white
  • Hispanic
  • Asian
  • Black

Which of the following is true of the reliability of employment tests?

  • The reliability of a criterion predictor plays an insignificant role in determining its validity.
  • Reliability measures how accurately a criterion predictor predicts the criterion of job success.
  • Reliability is necessary but not sufficient to show the validity of a criterion predictor.
  • The reliability of a test is high if a person fails it on one day but makes an excellent grade when taking it again a week later.

Which of the following is a typical responsibility of a human resources department regarding performance management?

  • Completing the forms used in appraising employees
  • Reviewing appraisals with employees
  • Training managers in conducting performance appraisals
  • Evaluating the performance of employees

Vesting in a pension or retirement plan means that an employee upon departure from the company would:

  • Be eligible to receive money paid into the fund.
  • Require legal action to secure the monetary contributions.
  • Deposit all net earnings of the most recent quarterly period into the fund.
  • Have the accumulated contributions disbursed among remaining employees.

Job posting and bidding is an external method of recruitment.

  • True
  • False

Which of the following major human resource functions would include providing assistance to employees with personal problems that influence their work performance?

  • Safety and health
  • Compensation and benefits
  • Human resource research
  • Human resource development

The Taft-Hartley Act was the first act to make yellow-dog contracts unenforceable and severely restrict the use of injunctions.

  • True
  • False

An effective departmental and job orientation method is to give new employees a departmental procedures manual to read and put them on menial tasks for the first couple of weeks.

  • True
  • False

Organizational inducements are all the positive features and benefits an organization offers to attract job applicants.

  • True
  • False

Social security is a federally administered insurance system that provides funds to employees upon joining an organization.

  • True
  • False

The degree of accomplishment of the tasks that make up an employee's job is called:

  • Job depth.
  • Endurance.
  • Job scope.
  • Performance.

Firms paying below the market tend to be small, young, and non-unionized.

  • True
  • False

According to a survey published in Monthly Labor Review, January 2012, approximately 45 percent of the new entrants during the 2010-2020 time span will be ____.

  • women
  • men
  • Hispanic women
  • white men

Market-based pay systems focus on:

  • Traditional pay grades.
  • External equity.
  • Internal equity.
  • Traditional pay ranges.

In the context of grievance procedures, the principle of just cause originally places the burden of proof on an employer.

  • True
  • False

Performance-vesting options are also called:

  • Price-vesting options.
  • Premium-priced options.
  • Phantom stock plans.
  • Restricted-vesting plans.

Professional employer organizations (PEOs) place semi-skilled employees in short-term jobs.

  • True
  • False

A No ____ explains, in written form, what a job is called, what it requires to be done, where it is to be done, and how it is to be done.

  • job position
  • work sample
  • organizational chart
  • job description

Most organizational suggestion systems offer nonmonetary rewards such as vacations and cruises for cost savings ideas.

  • True
  • False

Which of the following statements is true regarding the National Labor Relations Board (NLRB)?

  • It was established by the Clayton Act.
  • The board is a seven-member panel.
  • The board members serve for a three-year term.
  • Its members are appointed by the President of the United States.

Any procedure that is used to make employee selection decisions is construed to be a test.

  • True
  • False

Which of the following topics should be covered during a departmental and job orientation program as opposed to during an organizational orientation program?

  • Retirement plans and options
  • Managerial staff information
  • Performance standards and basis of performance evaluation
  • Organization, structure, and relationship of company and its branches

The Rorschach inkblot test and the Thematic Apperception Test (TAT) are examples of ____.

  • proficiency tests
  • job knowledge tests
  • personality tests
  • psychomotor tests

Managerial personnel generally receive incentives in the form of all of the following EXCEPT:

  • Annual bonuses.
  • Long-term performance planning.
  • Cost-of-living allowances.
  • Stock options.

The level of communication should be determined by the instigator of the communication rather than the receiving audience.

  • True
  • False

Internal equity refers to the perceived fairness of pay relative to what other employers are paying for the same type of labor.

  • True
  • False

Adverse impact is a condition that occurs when the selection rate for women and minorities is less than 80 percent of the selection rate for the majority group in hiring, promotions, transfers, demotions, or any selection decision.

  • True
  • False

Justin is not a member of any union at his workplace. He had filed a grievance against the management. The union steward helped him throughout the case until he settled the matter in the bargaining unit. Such an act shows adherence to:

  • Just cause.
  • Due process.
  • Progressive discipline.
  • Duty of fair representation.

Broadbanding provides less formal structure and allows organizations to react quicker to changes.

  • True
  • False

Traditional job previews set the initial job expectations of new employees too high.

  • True
  • False

Generally, one of the responsibilities of line managers in performance management is to maintain a reporting system to ensure that appraisals are conducted on a timely basis.

  • True
  • False

The number of organizations that are extending benefits coverage to include unmarried heterosexual and homosexual partners of unmarried employees has shown:

  • A growing trend.
  • A mixed response.
  • No visible change.
  • A declining trend.

Which of the following statements is true regarding the Hitchman Coal & Coke Co. v. Mitchell case?

  • It led to the Supreme Court's decision of applying the Sherman Anti-Trust Act to all unions.
  • It upheld the legality of yellow-dog contracts.
  • It led to the passage of the Clayton Act.
  • It resulted in the narrow interpretation of the term property by the U.S. Supreme Court.

Courts have ruled that an individual's arrest record is a lawful basis for refusal to hire.

  • True
  • False

Which of the following major human resource functions would include building effective teams within an organizational structure?

  • Employee and labor relations
  • Human resource research
  • Safety and health
  • Human resource development

It is an illegal labor practice for one party in a collective bargaining agreement to insist on bargaining about a permissive issue.

  • True
  • False

The National Labor Relations Board (NLRB) has ruled that boulwarism is not good-faith bargaining.

  • True
  • False

A manager who objects to an employee's performance or behavior just has to say, "You're fired!" and does not have to offer any justification for the same.

  • True
  • False

Under an incentive stock option (ISO), a manager does not have to pay any tax until he or she sells the stock.

  • True
  • False

Right-to-work laws are now illegal in all 50 states due to the passage of the Taft-Hartley Act.

  • True
  • False

According to the conspiracy doctrine, a labor union could be punished if either the means used or the ends sought were deemed illegal by the courts.

  • True
  • False

The factor comparison method of job evaluation is similar to the point method with the exception that the factor comparison method eliminates the use of a monetary scale.

  • True
  • False

Flexible-benefit plans may be of interest to organizations for all of the following reasons EXCEPT:

  • Unions often endorse them as they give them some control.
  • Employee recruitment and retention can be enhanced.
  • Employees gain more familiarity with the various benefits' costs.
  • Health care costs can be lowered.

Classroom training is appropriate for teaching factual information, concepts, principles, and theories.

  • True
  • False

Generally while administering organizational discipline, the key guidelines to be followed and adhered to are:

  • Immediacy, advance warning, and consistency.
  • Employment at will, due process, and progressive discipline.
  • Arbitration, grievance, and corrective action.
  • Mediation, class-action suit, and written warning.

____ measure a person's capacity or potential ability to learn and perform a job.

  • Interest tests
  • Psychomotor tests
  • Aptitude tests
  • Polygraph tests

Your firm has chosen to pay a high proportion of total compensation in the form of variable pay. This payment includes all of the following options EXCEPT:

  • hourly wages
  • team bonuses
  • profit sharing
  • individual bonuses

Which type of recruiting firm provides free service to both prospective employees and business firms seeking employees?

  • Temporary help agencies
  • Employee leasing companies
  • State employment agencies
  • Executive search firms

How is mediation different from arbitration?

  • Mediators, unlike arbitrators, cannot impose decisions on the parties involved in a dispute.
  • Mediation is limited to the public sector, whereas arbitration is limited to the private sector.
  • Mediators, unlike arbitrators, charge a fee for their services.
  • Mediation involves a neutral third party, whereas arbitration does not.

Employee referral is an internal source of recruitment.

  • True
  • False

Which of the following is a disadvantage of the job classification method of job evaluation?

  • It needs to be updated frequently because classifications are specific and not broad.
  • It is limited to smaller organizations where employees are very familiar with various jobs.
  • It assumes equal intervals between the rankings, and this is usually not true.
  • It is susceptible to abuse by evaluators due to generalities

A reward offered on a one-time basis for high performance is referred to as a:

  • Subsidy.
  • Bonus.
  • Differential piece rate system.
  • Merit pay increase.

Piece rate plans have been in effect for over 150 years.

  • True
  • False

Usually, the human resource (HR) manager should bear full responsibility for a new employee's orientation.

  • True
  • False

Under a typical skill-based pay system, companies hire employees at above-market rates.

  • True
  • False

Generally, in unionized organizations the grievance process is initiated by aNo:

  • Union representative.
  • Employer representative.
  • Third party arbitrator.
  • Employee.

According to the Equal Employment Opportunity Commission (EEOC) and the courts, inquiries about race, color, national origin, or religion are illegal per se.

  • True
  • False

____ is a landmark case of 1908 in which the Supreme Court ruled that the Sherman Anti-Trust Act applied to all unions.

  • Duplex Printing Co. v. Deering case
  • Hitchman Coal & Coke Company case
  • Danbury Hatters case
  • Commonwealth v. Hunt case

The first step in the organizational disciplinary process is the establishment of performance requirements and work rules.

  • True
  • False

As a compensation manager for a medium sized pharmaceutical firm you are hesitant to implement a skill-based pay system for all of the following reasons EXCEPT:

  • higher labor cost
  • workplace chaos where the left hand doesn't know what the right hand is doing
  • greater difficulty in selecting applicants because the qualifications are less specific
  • less staffing flexibility

Early retirement incentives are an alternative to mandatory retirement.

  • True
  • False

According to a study, which of the following is a poor source of recruitment in terms of employees' performance?

  • Employee referrals
  • Campus recruiting
  • Self-initiated contacts
  • Job posting and bidding

When hiring from internal sources, ____ usually plays a greater role in unionized organizations.

  • seniority
  • economic status
  • merit
  • prior performance

Which of the following statements is true regarding the Taft-Hartley Act?

  • It permitted preferential shop agreements.
  • It was an amendment and extension of the Wagner Act.
  • It was passed to legalize secondary boycotts.
  • It prohibited the practice of union hiring hall in the construction industry.

An employee's lack of time or conflicting demands upon it, inadequate work facilities and equipment, restrictive policies that affect the job, lack of cooperation from others, type of supervision, temperature, lighting, noise, machine or equipment pacing, shifts, and even luck, are all examples of:

  • Task perceptions as they relate to performance.
  • Environmental factors as performance obstacles.
  • Affirmative action plans as they relate to performance.
  • Direct determinants of employee performance.

Introduction of new employees to an organization, work unit, and job is known as ____.

  • recruitment
  • orientation
  • appraisal
  • selection
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____ involves asking labor unions to make concessions on wages and benefits and occurs in industries especially hard hit by foreign competition.

  • Take-back-bargaining
  • Pattern bargaining
  • Plea bargaining
  • Coordinated bargaining

The ____ is a handbook that summarizes a wide variety of commercial tests and also provides an evaluation of the tests by several experts.

  • Uniform Guidelines
  • Test Evaluation Book
  • Mental Measurements Yearbook
  • Knowledge Measurements Journal

Both skilled and unskilled workers in a particular industry or group of industries are members of an industrial union.

  • True
  • False

Traditionally pay practices in many organizations have used fixed compensation for virtually all employees except senior management and sales force employees.

  • True
  • False

An employer that establishes a SIMPLE IRA plan must make either matching contributions or elective contributions.

  • True
  • False

David was one among the ten applicants to make it to the final selection round for a job at a reputed company. Before he agreed to take up the job, he was provided with a realistic job preview (RJP). Which of the following is true if David accepts the job based on the RJP?

  • He will have more job satisfaction.
  • He will exhibit low job survival rates.
  • He will have only positive expectations from the job.
  • He will lack the technical skills required for the job.

The intent of most incentive pay is to reward above-average performance rapidly and directly.

  • True
  • False

Certain employee benefits can be reserved for company executives only.

  • True
  • False

Which of the following is true in the context of grievance arbitration?

  • Arbitrators have the legal power to subpoena witnesses or records.
  • Arbitrators are required to conform to legal rules of hearing procedures.
  • Arbitration is seldom seen as a quid pro quo in exchange for a union's agreement not to strike.
  • Arbitration requires the parties involved to submit their unresolved disputes to a privately selected neutral third party.

The focus of the behaviorally anchored rating scale (BARS) and, to some extent, the graphic rating scale and checklist methods of performance appraisal is primarily on performance outcomes.

  • True
  • False

The employment at will doctrine:

  • Has been strengthened in recent times by court rulings that support employees' expectations of fair dealings.
  • Prohibits an employee to terminate the employment relationship at any time without any valid reason.
  • Would allow a company to fire one employee for a transgression and retain another employee who engaged in similar behavior.
  • Forbids what reasonable people might consider capricious or unfair treatment of employees.

Fees charged by arbitrators in grievance arbitration are normally paid on a 50-50 basis by a company and the union.

  • True
  • False

Downsizing involves laying off large numbers of managerial and other employees.

  • True
  • False

Which of the following is true about boulwarism?

  • It is named after a Ford vice president.
  • It involves a continuous revision of offers from management.
  • It is not good-faith bargaining.
  • It is not illegal.

An understanding of job descriptions is crucial for conducting performance appraisals.

  • True
  • False

Which of the following would be considered an unfair labor practice during the election campaign of a labor union?

  • Soliciting support for unions from employees in work areas
  • Distributing union literature during nonworking time
  • Management speaking against the union on company time to employees
  • Threatening or coercing of employees by union organizers

Realistic job previews:

  • Create inaccurate expectations about a job among applicants.
  • Cause high turnover among employees.
  • Supply both positive and negative job information to an applicant.
  • Report an employee's requirements from a job to the management.

Which of the following statements is true about how equal employment legislation has influenced recruitment activities?

  • Organizations are prohibited to advertise in media directed toward minorities and women.
  • Expressing a preference for a female worker in a newspaper ad is acceptable if gender is a bona fide occupational qualification for the position.
  • Recruiting through employee referrals is recommended by the Equal Employment Opportunity Commission (EEOC).
  • As per the Equal Employment Opportunity Commission (EEOC) guidelines, employers should avoid contacting nontraditional recruitment sources.

State employment agencies provide free service for individuals seeking employment and charge a contracted figure from business organizations seeking employees.

  • True
  • False

Most employers have dropped the word "fringe" from the term "fringe benefits":

  • In recognition of the declining importance of benefits to employees.
  • In an attempt to have workers pay less attention to benefits in general.
  • Because of the shift toward linking most benefits to performance.
  • For fear of minimizing the significance of benefits to total compensation.

A human resource department normally acts in an advisory capacity and does not have authority over operating managers.

  • True
  • False

To be effective, observations for determining training needs must be conducted by individuals trained in observing employee behavior and translating observed behavior into specific training needs.

  • True
  • False

A new law was passed that prohibits cash bonuses and other incentives for the five most-senior officers and the 20 highest-paid executives at companies that have received funds under the:

  • Scanlon plan.
  • Troubled Asset Relief Program.
  • Phantom stock plan.
  • Defends Retention Program.

Flexible-benefit plans are also called ____ plans.

  • employer-sponsored
  • cafeteria
  • standard
  • cash-balance

Which of the following tests is most likely to be administered while hiring people to fill assembly-line jobs?

  • Reasoning test
  • Perception speed test
  • Verbal-aptitude test
  • Psychomotor test

Who conducts the job orientation for a new employee in a "buddy system"?

  • A coworker
  • An internal auditor
  • A human resource manager
  • A line manager

Taurus Apparel Inc. uses a differential piece rate plan to reward good performance among its employees. In this incentive plan, the rate paid per unit produced is raised:

  • Based on the performance of the least productive employee.
  • For each piece that exceeds standard quality.
  • After a given number of pieces have been produced.
  • With each piece produced.

The average age of the American workforce is:

  • Increasing.
  • Impossible to predict.
  • Decreasing.
  • Constant.

In some organizations, a new employee's coworkers conduct the job orientation. This type of an orientation is termed a ____.

  • Cartel arrangement
  • Lateral orientation
  • Buddy system
  • Vertical orientation

"Each segment of training should be organized so that an individual can see not only its purpose but also how it fits in with other parts of the entire program. In addition, later segments should build on those presented earlier." Which of the following principles of learning do these statements reflect?

  • Effective reinforcement
  • Practice and repetition
  • Motivation to achieve personal goals through training
  • Flow of the training program

Job scope refers to the freedom of jobholders to plan and organize their own work, work at their own pace, and move around and communicate as desired.

  • True
  • False

The ____ rewards employees based on knowledge, skills, and behaviors that result in performance.

  • seniority-based pay system
  • demand-based pay system
  • market-based pay system
  • competency-based pay system

The Social Security Act requires all eligible individuals to register with the state employment agency before they can receive unemployment compensation.

  • True
  • False

Coordinated bargaining occurs when several labor unions bargain jointly with a single employer.

  • True
  • False

The internal stages of appeal in a grievance procedure are completed within one to two weeks.

  • True
  • False

A graphical depiction of the relationship between the relative worth of jobs and their wage rates is termed:

  • Wage and salary curve.
  • Comparable worth matrix.
  • Job value grid.
  • Pay compatibility index.

The job classification method of job evaluation is also called job grading.

  • True
  • False

The federal law which made closed shops and preferential shops illegal was the:

  • Hatch Act.
  • Wagner Act.
  • Taft-Hartley Act.
  • Norris-La Guardia Act.

The end result of collective bargaining is aNo:

  • Contract.
  • Disciplinary action.
  • Injunction.
  • Embargo.

The financial crisis social security faces stems from:

  • Demographic changes in our society.
  • Unwillingness of employers to help fund the system.
  • High rates of inflation in the economy.
  • Lower levels of unemployment.

In recent times, stock grants and stock options have often represented the largest portion of an executive's total compensation.

  • True
  • False

A personnel requisition form is a management report that contains various statistics related to applicants for a job.

  • True
  • False

Pals Computer Inc. is using the graphic rating scale method for its employees' performance appraisal. Which of the following is a major weakness of this appraisal method?

  • Evaluators fail to consider attendance, accuracy of work, and cooperativeness when rating employees.
  • This method includes only numerical ranges and completely avoids written descriptions.
  • Evaluators are unlikely to interpret written descriptions in the same manner due to differences in background, experience, and personality.
  • This method is suitable only for managerial employees.

Historically, labor unions in the U.S. have gained their strength from blue-collar production workers.

  • True
  • False

The most widely acknowledged shortcoming of wage and salary surveys is that it is difficult to find jobs that are directly comparable.

  • True
  • False

Which of the following is a prerequisite to the selection process?

  • Appraisal
  • Recruitment
  • Employee orientation
  • Exit interview

Compensation is the single most important cost in most firms.

  • True
  • False

JF Software Inc. has decided to use the factor comparison technique for job evaluation. This method will require evaluators in the organization to conclude the evaluation by linking each compensable factor to a:

  • Social grid.
  • Growth matrix.
  • Monetary scale.
  • Point scale.

Employment at will permits an employer to terminate an employee for good reason or for no reason.

  • True
  • False

The management of Neova Chemicals Inc. wants to use its rights provided under the free-speech clause of the Taft-Hartley act. Thus, under this clause the management of Neova Chemicals:

  • Can initiate yellow-dog contracts.
  • Has the right to make a slander or libel about union leaders, provided it is in the best interest of the owners of the company.
  • Has the right to express its opinion about unions to its employees, provided they carry no threat of reprisal.
  • Can issue injunctions.

Which of the following is a major benefit of employee stock ownership plans to stockholders?

  • Increases cash flow
  • Provides ready market to sell stock
  • Limits organizational control to the top management
  • Allows an organization to use of pretax dollars to finance debt

____ involves giving instruction, both on and off the job, in the practical and theoretical aspects of the work required in a highly skilled occupation.

  • Job posting
  • Apprenticeship training
  • Cross training
  • Job sharing

The progress of an individual or group as a result of training can be plotted on a chart to form aNo:

  • Skills map.
  • Knowledge inventory.
  • Utility curve.
  • Learning curve.

Which of the following major human resource functions would include providing a human resource information base?

  • Human resource research
  • Employee and labor relations
  • Compensation and benefits
  • Human resource development

Today human resource management (HRM) is clearly isolated from both the management and the strategic planning process of an organization and occupies a purely administrative role.

  • True
  • False

Under a No ____ provision, employees are not required to actually join a union, but they are required to pay the equivalent of union dues as a condition of employment.

  • open shop
  • union shop
  • closed shop
  • agency shop

The only necessary condition for high-level performance is an individual's ability.

  • True
  • False

A compensation program designed to reward employees for good performance is referred to as:

  • indirect compensation
  • pay mix
  • perquisites
  • pay incentive

The ____ appraisal method requires that the evaluation describe an employee's performance in written narrative form.

  • checklist
  • alternation ranking
  • work standards
  • essay

One advantage of individual incentive plans is the direct observable relation between rewards and individual performance.

  • True
  • False

Health insurance under social security, commonly known as Medicare, provides:

  • Free prescription drug coverage for all citizens over 50.
  • Partial hospital and medical reimbursement for persons over 65.
  • Free medical treatment to children under 14 and individuals over 60 years of age.
  • Universal coverage to all individuals who make social security payments.

Which of the following is true about pay grades and ranges?

  • In establishing pay grades and ranges, one method is to have a small number of grades with a relatively narrow dollar range for each grade.
  • Ranges within pay grades are set up so that homogeneity can be achieved among employees within grades.
  • When an employee reaches the top of the range for a given pay grade, he or she will not be allowed to move to a higher grade.
  • One approach for establishing pay grades and ranges is to have a relatively large number of grades with identical rates of pay for all jobs within each grade.

The use of polygraph examinations:

  • Has been made mandatory by the government for all private employers.
  • Has been restricted in industries with national defense or security contracts.
  • Is totally objective since the device interprets the readings.
  • Is currently prohibited in most employment settings.

In the context of grievance arbitration, AAA stands for American Arbitration Association.

  • True
  • False

A group of similar jobs forms a task.

  • True
  • False

In a market-based pay system, demonstrable characteristics of a person, including knowledge, skills, and behaviors that enable performance are used as the base for deciding compensation.

  • True
  • False

The split-halves method used to determine reliability of an employment test involves administering the test to a group of employees and later, usually in about two to four weeks, giving the same group the same test.

  • True
  • False

Spacing out training over a period of time facilitates the learning process.

  • True
  • False

In a labor dispute between the employees and owners of Arrow Products Inc., a local court has been asked to issue an injunction. Which of the following statements is NOT true regarding the use of injunctions in this situation?

  • Courts place a narrow interpretation on the term property.
  • Violations of an injunction will result in a contempt-of-court charge.
  • Injunctions are prolabor.
  • Injunctions are usually sought by an employer.

Which of the following is a disadvantage generally associated with external sources of recruitment?

  • New employees will need a longer orientation period when compared to internal sources.
  • An organization's ability to generate new ideas and innovations may be stifled.
  • The pool of talent is much smaller than that available from internal sources.
  • It is difficult to hire technical or managerial people from the outside.

Which of the following is an advantage of the job ranking method of job evaluation?

  • It is objective in nature
  • It is easy to explain.
  • It is easily adaptable to large organizations.
  • It evaluates jobs against a predetermined scale.

Which of the following is an internal source of recruitment?

  • Job sharing
  • Employee referrals
  • Job posting and bidding
  • Campus recruiting

The Hitchman Coal & Coke Co. v. Mitchell case upheld the legality of yellow-dog contracts.

  • True
  • False

A pay plan in which an individual is paid for the typical time required to complete a job is aNo:

  • Uniform piecework pay plan.
  • Differential piecework pay plan.
  • Standard hour plan.
  • Overtime pay plan

It is generally recognized that skill-based pay systems work well in unionized organizations.

  • True
  • False

Union security clauses deal with the status of employee membership in a union and attempt to ensure that the union has continuous strength.

  • True
  • False

Telecommuting refers to a practice where:

  • Employees are able to interact with the office when working at home or while travelling.
  • Two or more part-time individuals perform the work of one full-time individual.
  • Employees work for longer hours per day to reduce the number of days in a work week.
  • Two or more employees form a group and exchange each other's work to eliminate monotony.

Women, minorities, and the most recently hired employees can be adversely affected by a seniority system.

  • True
  • False

Which of the following orientation strategies should a person adopt as the human resource (HR) manager of a company?

  • Conduct brief orientation sessions spread over several days.
  • Plan a daylong orientation session.
  • Give new employees menial tasks to perform in the first month.
  • Ask new employees to read a departmental procedure manual before starting work.

Large organizations use operating managers to perform human resource functions instead of maintaining a human resource department.

  • True
  • False

Standard hour plans involve paying employees more if they work more hours, increasing their payment once they cross a certain number of hours.

  • True
  • False

Which of the following acts does not permit the use of ranking methods for federal employees?

  • The National Labor Relations Act
  • The Employee Free Choice Act
  • The Equal Employment Opportunity Act
  • The Civil Service Reform Act

Which of the following is true about workers' compensation?

  • The laws generally do not provide for replacement of lost income.
  • The compensation is normally financed through insurance premiums paid by employees.
  • An employee normally has to sue the employer to get workers' compensation.
  • An element of coinsurance exists in the workers' compensation coverage.

Which of the following is a typical step in the management by results process?

  • Rating employees based on accuracy of work
  • Measuring objective achievement
  • Keeping a written record of performance-related incidents as they occur
  • Describing an employee's performance in written narrative form

A union shop agreement requires employees to join a union and remain members as a condition of employment.

  • True
  • False

Under Internal Revenue Code's Section 125 and/or the Deficit Reduction Act (DEFRA), an employer requires an employee to complete more than three years of service before becoming eligible under a flexible-benefit plan.

  • True
  • False

Generally, employees in favor of a union can orally solicit support from other employees in work and nonwork areas during work time.

  • True
  • False

The ____ is an entity within the Federal Labor Relations Authority (FLRA).

  • Office of the General Counsel
  • National Labor Relations Board (NLRB)
  • National Mediation Board
  • Federal Services Impasses Panel (FSIP)

Which of the following tests is based on a series of cause-and-effect assumptions like lying causes fear and guilt?

  • Psychomotor tests
  • Polygraph tests
  • Interest tests
  • Spatial tests

Truck Drivers Union, a small labor union in terms of membership, merged into a considerably larger union, Global Drivers Union. This is an example of an absorption.

  • True
  • False

During mediation, a mediator imposes binding contract conditions on two parties who cannot reach agreement by themselves.

  • True
  • False

____ is an internal method of recruitment in which notices of available jobs are displayed in central locations throughout an organization and employees are given a specified length of time to apply for the available jobs.

  • Job sharing
  • Campus recruiting
  • Employee referral
  • Job posting and bidding

Which of the following is classified as a benefits topic in organizational orientation programs?

  • Counseling services available
  • Labor costs involved
  • Pay rates and ranges
  • Reimbursement for job expenses

Suspension is the first step in corrective discipline taken by management in disciplining an employee.

  • True
  • False

Stock option plans are generally designed to give managers an option to buy company stock at the existing market price.

  • True
  • False

A form of bargaining in which several unions bargain jointly with a single employer is known as:

  • Gissel bargaining.
  • Coordinated bargaining.
  • Bad faith bargaining.
  • Pattern bargaining.

A notion that courts can punish a union if they deem that the means used or the ends sought by the union are illegal is known as the:

  • Captive-audience doctrine.
  • Contract bar doctrine.
  • Conspiracy doctrine.
  • Just cause doctrine.

Chemical testing employees for drugs or AIDS is not prohibited.

  • True
  • False

When recruitment is done from internal sources, it increases the likelihood of employees having inaccurate expectations from an organization.

  • True
  • False

Labor unions typically bargain for all of the following EXCEPT:

  • Management takeover.
  • Shorter working hours.
  • Job security.
  • Higher wages.

Which of the following is an advantage of using external sources for recruiting personnel as opposed to hiring internally?

  • The pool of talent available is substantially larger.
  • Employees hired from outside need much shorter orientation periods.
  • Job candidates are less likely to have inaccurate expectations of an organization.
  • The process of attracting, contacting, and evaluating potential employees is simpler.

A criterion predictor never correlates perfectly with a criterion of job success.

  • True
  • False

Good-faith bargaining requires the parties involved in a dispute to agree.

  • True
  • False

Employee benefits are those rewards given only to employees retiring from an organization.

  • True
  • False

Major advantages of behaviorally anchored rating scales (BARSs) include their simplicity and ease of development.

  • True
  • False

Employees in the state of Arizona are protected under the right-to-work laws. What does this imply?

  • Employees in unionized organizations are represented by a union even if they do not belong to the union.
  • No employer can terminate an employee based on poor performance.
  • Employers are required to support unions and their activities by paying a part of their initiation fees.
  • Employees are mandatorily required by the state to join a union.

In small organizations, most human resource functions are performed by the owner or by ____.

  • operating managers
  • human resource specialists
  • chief ethical officers
  • talent managers

The process in which the parties involved in a dispute agree to settle their dispute through the use of an independent third party, who imposes a binding decision, is called:

  • Mediation.
  • Arbitration.
  • Conciliation.
  • Coordinated bargaining.

An injunction prohibits an employer from hiring anyone other than a union member.

  • True
  • False

In an organizational orientation program, the rights of managers and supervisors would be covered under the topic:

  • Company overview.
  • Safety and accident prevention.
  • Economic factors.
  • Employees and union relations.

The largest organizational unit within the union movement emerged with the merger between the:

  • Knights of Labor and the United Mine Workers.
  • United Mine Workers and the American Federation of Labor.
  • American Federation of Labor and the Congress of Industrial Organizations.
  • Knights of Labor and the Congress of Industrial Organizations.

The organization Rachelle works for permits her to start her workday early by 7 a.m. and finish by 3 p.m. This arrangement allows Rachelle to spend some quality time with her children as well as attend to other household responsibilities. Which of the following work arrangements does this scenario best illustrate?

  • Job rotation
  • Telecommuting
  • Compressed work week
  • Flextime

In the context of a performance improvement plan, the question "Where are we now?" is answered in the performance appraisal process.

  • True
  • False

The Scanlon plan is designed to:

  • Encourage employees to suggest changes that might increase productivity.
  • Postpone the taxing of the income arising from the plan.
  • Help companies rebuff an unfriendly takeover.
  • Accommodates public opinion regarding executive compensation.

Unions generally prefer promotions based on seniority for unionized jobs.

  • True
  • False

______ is a type of observation method of job analysis that is based on taking statistical samples of job actions throughout a workday, as opposed to continuous observation of all actions.

  • Condensed work week study
  • Work sampling
  • Affirmative action plan
  • Functional job analysis

The primary function of the human resource department within an organization has been identified as that of:

  • Defining the mission and vision of the organization.
  • Designing and administering work processes.
  • Financing the investment activities of the organization.
  • Providing support to operating managers on all personnel matters.

Human resource management (HRM) encompasses those activities designed to provide for and coordinate the human resources of an organization.

  • True
  • False

In the point method of job evaluation, after the point scale has been agreed on, point values are derived for key jobs by examining the job descriptions.

  • True
  • False

The profit margin of an organization is one of the topics covered during a departmental and job orientation program.

  • True
  • False

____ measure how well an applicant can do a sample of the work to be performed.

  • Proficiency tests
  • Interest tests
  • Polygraph tests
  • Perception speed tests

The key to having a successful suggestion system, as a means to reward employee suggestions, is to:

  • Adopts every contribution that is submitted.
  • Clearly communicate how the system works.
  • Penalize employees who make inappropriate suggestions.
  • Limit the system to managerial personnel alone.

Predictive validation is used frequently for employment tests because it is cost-efficient and fast.

  • True
  • False

The human resource team at BMD Inc. wants to recruit for some senior-level positions from within the organization before it turns to other sources of recruitment. The team has devised a job posting and bidding program. Which of the following practices will make the program less successful?

  • Requiring job bidders to list their qualifications
  • Including selection standards within the position notice
  • Refraining from external recruiting until a specified time period has elapsed
  • Refraining from notifying unsuccessful bidders as to why they were not accepted

Job evaluation is a process used to determine:

  • external equity
  • the relative value of different jobs to an organization
  • benchmarks
  • job quotas

The halo effect occurs when a rater allows a single prominent characteristic of an employee to influence his or her judgment on each separate item in the performance appraisal.

  • True
  • False

Under productivity bargaining, unions and management develop a contract whereby the union agrees to exchange old work procedures and methods for new and more effective ones in return for gains in pay and working conditions.

  • True
  • False

Maroon Hotels Inc. is using the behaviorally anchored rating scale (BARS) method of employee performance appraisal. What is the advantage of using BARS?

  • It allows the active participation of both managers and job incumbents.
  • It focuses on performance outcomes rather than functional behaviors.
  • It does not require separate appraisal forms for different jobs.
  • It is an extremely simple and easy appraisal method to develop and execute.

The general principle behind reinforcement is that:

  • Actions that lead to a negative consequence tend to be illegal.
  • Practice and repetition do not necessarily always enhance effective learning.
  • Behavior that appears to lead to a positive consequence tends to be repeated.
  • Gaps and inconsistencies in material are conducive to effective learning.

Polygraph tests are widely used today to screen out undesirable job candidates.

  • True
  • False

The type of validity in which a test is given to the entire pool of job applicants and correlated to their job performance scores some months later is called:

  • Content validity.
  • Concurrent validity.
  • Construct validity.
  • Predictive validity.

A position may be held by more than one person.

  • True
  • False

A personnel requisition form is used to:

  • Officially request that the human resource manager take action to fill a particular position.
  • Formally report the utilization of various protected employee classes in an organization.
  • Report to management various statistics related to applicants for a job.
  • Gather a group together to plan how to conduct a recruitment effort.

Which of the following is NOT a benefit of a skill-based pay system?

  • Improves understanding of a company's operation
  • Inspires higher quality and quantity productivity levels
  • Decreases labor costs
  • Works well in unionized organizations

Leon works in a company as the wholesale distributor for regular business customers. His job involves the same few tasks each time. However, his job allows him considerable freedom in organizing and pacing his work. Based on this information, it can be concluded that Leon's job is:

  • High in scope and in depth.
  • High in scope but low in depth.
  • Low in scope and in depth.
  • Low in scope but high in depth.

____ refers to the amount of energy (physical and/or mental) an individual uses in performing a task.

  • Ability
  • Interest
  • Agility
  • Effort

Broadbanding means collapsing salary grades and ranges into just a few wide levels or bands, each of which then contains a relatively wide range of jobs and salary levels.

  • True
  • False

Which of the following sources of recruitment concentrates on high-level, or executive, recruiting?

  • Temporary help agency
  • Campus recruiter
  • Employee leasing company
  • Headhunter

A major disadvantage of commission plans as an incentive pay system is the:

  • Use of draws in conjunction with commissions.
  • Impact of uncontrollable factors on sales.
  • Inability to combine salary with commission.
  • Weak link between performance and reward.

Prior to the Equal Employment Opportunity Commission (EEOC) rendering it as irrelevant to actual job performance, the general intelligence test was among the most frequently used:

  • Polygraph tests.
  • Aptitude tests.
  • Psychomotor tests.
  • Interest tests.

Which of the following is a suggestion for making performance appraisal systems more legally acceptable?

  • Ensuring that personnel decisions are separated from performance appraisals
  • Derive the content of the appraisal system from job analyses
  • Emphasize personal traits rather than work behaviours
  • Ensure that the results of appraisals are not divulged to employees

The senior management of Coral Isle Hotels wants to introduce performance management systems within the organization. To provide a powerful incentive for the employees to work diligently, the management should link the systems to aNo:

  • Outplacement program.
  • Regressive tax system.
  • Organizational reward system.
  • Formal organization chart.

A gain-sharing program is also known as a performance-sharing plan.

  • True
  • False

Which of the following major human resource functions would include forecasting the human resource requirements of an organization to achieve its objectives?

  • Human resource training and development
  • Human resource planning, recruitment, and selection
  • Employee and labor relations
  • Compensation and benefits

Which of the following performance appraisal methods is also referred to as multi-rater assessment?

  • Critical-incident appraisal
  • Behaviorally anchored rating scale
  • 360-degree feedback
  • Essay appraisal

A state's position regarding the right-to-work provision is determined by:

  • A state's own law.
  • The federal government's mandate.
  • Workers' votes under the National Labor Relations Board (NLRB) oversight.
  • Each organization within a state.

An orientation kit is normally prepared by:

  • The human resource department.
  • A new employee's coworkers.
  • The top management.
  • A new employee's immediate manager.

Ability refers to the amount of energy an individual uses in performing a task.

  • True
  • False

In the context of organizational discipline, civil rights legislation requires management to:

  • Avoid disciplinary actions on protected classes.
  • Protect women and minorities against any disciplinary actions.
  • Ensure that disciplinary actions are not discriminatory.
  • Limit the right to due process to minority employees only.

Job design addresses the basic question of how a job is to be performed, who is to perform it, and where it is to be performed.

  • True
  • False

A basic argument for "open pay" is that it improves employee:

  • motivation
  • attendance
  • communication
  • responsibility

The rights of employees to receive money paid into a pension or retirement fund on their behalf by their employer if they leave the organization prior to retirement is called:

  • Stock appreciation rights.
  • Binding.
  • Vesting.
  • Confirmation.

Management can prohibit union organizers from entering company property.

  • True
  • False

Questions about a person's race, color, national origin, or religion should be avoided in an application form because:

  • Addressing such matters is illegal in any circumstance.
  • Recruitment ads specify that certain minorities need not apply
  • Recording of such information can be proven as discriminatory.
  • Such questions should be reserved for the interview time.

Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed is known as ____.

  • Outsourcing
  • Reengineering
  • Rightsizing
  • Reverse mentoring

____ prohibits the use of race, color, religion, sex, or national origin as the basis of any employment condition.

  • Executive Order 11246
  • Title VII of the Civil Rights Act
  • The due process doctrine
  • The Taft-Hartley Act

Which of the following is true about the job ranking method?

  • It evaluates jobs against a predetermined scale or class.
  • It produces an ordering of jobs.
  • It is used to indicate the relative degree of difference among jobs.
  • It is the most often used job evaluation technique

Continuous and proactive assessment of mission-critical work and its staffing requirements is known as ____.

  • Crowdsourcing
  • Rightsizing
  • Outsourcing
  • Downsizing

The compensation system's key task is to ensure that salaries and wage rates are set so that employees perceive a fair input/outcome balance outside the firm and, to a lesser extent, within the firm.

  • True
  • False

Craft unions can include skilled and unskilled workers, whereas industrial unions can enroll only skilled workers.

  • True
  • False

Training needs must be determined prior to establishing training objectives.

  • True
  • False

When can a union make a direct request to an employer to become the bargaining agent of the employees?

  • When National Labor Relations Board (NLRB) rejects a petition for an election
  • When less than 30 percent of the employees sign authorization cards
  • When employees have membership in more than one labor union
  • When more than 50 percent of the employees sign authorization cards

Headhunters are usually used when there is a requirement for a large number of low-skilled personnel in an organization.

  • True
  • False

Advantages of using temporary employees include all of the following EXCEPT that it:

  • Is used to augment the current staff during times of expansion.
  • Is convenient as temporary employees can be recalled when necessary.
  • Creates a flexible staff that can be easily laid off during a period of downsizing.
  • Creates an employee group with a high degree of commitment to a company.

____ refers to the number and variety of different tasks performed by a jobholder.

  • Job scope
  • Job depth
  • Job specification
  • Job bandwidth

A recent trend has been an attempt by the management of many organizations to eliminate or restrict the use of cost-of-living adjustments (COLA) clauses.

  • True
  • False

A systematic analysis of the specific training activities an organization requires to achieve its objectives is called:

  • Utilization evaluation.
  • Service gap analysis.
  • Regression analysis.
  • Needs assessment.

An arrangement between an employer and a union under which the employer agrees to withhold union dues, initiation fees, and assessments from the employees' paychecks and submit this money to the union is termed as aNo:

  • Open shop.
  • Embargo.
  • Lockout.
  • Check off.

The human resources (HR) of an organization represent one of its largest investments.

  • True
  • False

RedWing Advices Inc. has decided to advertise job openings on, a reputed online job portal. Which of the following is a disadvantage of using this source of recruitment?

  • Only limited information of the available jobs can be posted.
  • The life of an online advertisement is much shorter than paper-based advertisements.
  • Too many applicants and unqualified candidates may be generated.
  • The recruiting costs are extremely high.

Linda, a human resource executive, is trying to convince her colleagues that their organization should use an individual incentive plan as opposed to group incentive plans. Which of the following can Linda use as an argument to support her views on the individual incentive system?

  • Individual incentive plans ensure that competition among employees never produces negative results.
  • Individual incentive plans work especially well for those involved in team projects.
  • Individual incentive plans, unlike group incentive plans, do not have to be based on performance.
  • Individual incentive plans help employees see the clear relationship between their actions and rewards.

Workers' compensation is most frequently associated with:

  • "Office pools" maintained by employees for special occasions.
  • Severance pay upon termination.
  • Job-related illness or injury.
  • Vacation expense when combining business and personal travel.

An applicant flow record is required mandatorily to be filled by all job applicants as part of the selection process.

  • True
  • False

There is a universal set of compensable factors that can be used by all organizations when developing methods for determining the value of various jobs.

  • True
  • False

Which of the following refers to all the positive features and benefits a company offers to attract job applicants?

  • Cooperative work programs
  • Job specifications
  • Organizational inducements
  • Job postings

Which of the following acts was called the "Industrial Magna Carta" by Samuel Gompers, one of the leading spokespersons of the early labor movement?

  • The Norris-La Guardia Act
  • The Clayton Act
  • The Railway Labor Act
  • The Sherman Anti-Trust Act

When the point method of job evaluation is used, all jobs in an organization must be examined and evaluated.

  • True
  • False

Under ____, an executive is allowed to relinquish a stock option and receive from the company an amount equal to the increase in the stock price from the date the option was granted.

  • phantom stock plans
  • qualified stock options
  • stock appreciation rights
  • incentive stock options

Which of the following topics should be covered during an organizational orientation program as opposed to during a departmental or job orientation program?

  • Rules unique to a job
  • Work hours and times
  • Basis of performance evaluation
  • Union contract provisions

Behavior evaluation as a part of training evaluation is easier than learning evaluation.

  • True
  • False

One method proposed for increasing the effectiveness of all recruiting methods is the use of ____.

  • material requisition forms
  • realistic job previews
  • manual information systems
  • HR scorecards

Information related to food services and cafeteria should be provided during an organizational orientation program as opposed to during a departmental and job orientation program.

  • True
  • False

It is desirable for human resource managers to become well-rounded businesspeople.

  • True
  • False

An aggregation of two or more tasks is known as an element.

  • True
  • False

Characteristics of jobs that an organization deems important to the extent that it is willing to pay for them are termed:

  • Compensable factors.
  • Point values.
  • Motivators.
  • Hygiene factors.

The Affordable Care Act (ACA) allows people who make more than the federal poverty line but less than four times the poverty line to buy insurance subsidized by the government.

  • True
  • False

Major categories of benefits include all of the following EXCEPT:

  • Payment for time not worked.
  • Payment for time worked.
  • Insurance related.
  • Retirement related.

Most assembly line jobs are high in job scope and job depth.

  • True
  • False

Incentive plans usually function in place of the base wage/salary structure.

  • True
  • False

Although it is sometimes extended, unemployment compensation is limited to a maximum of:

  • 12 months.
  • 12 weeks.
  • 26 weeks.
  • 30 days.

Noba Products Inc. has decided to take the total rewards approach to designing a base wage/salary structure. Which of the following will be true of Noba Products Inc?

  • The company will rely only on pay and benefits when developing a strategy to motivate employees.
  • The company will provide a limited array of rewards to its employees.
  • The company will place more emphasis on lower-cost rewards rather than compensation and benefits.
  • The company will not be able to effectively engage a diverse workforce.

Once a contract is agreed between an organization's management and a union, the National Labor Relations Board (NLRB) does not normally permit an election in the bargaining unit covered by the contract until the contract expires, up to a maximum of three years. This is known as:

  • privity of contract.
  • The contract bar doctrine.
  • The conspiracy doctrine.
  • boulwarism.

The HR scorecard system:

  • Is the predecessor of the balance scorecard system.
  • Measures the contribution of the human resource function to the well-being of a firm.
  • Uses only quantitative measures to assess the profits generated by the human resource department.
  • Is limited specifically to measures about people in an organization.

Consistency in administering discipline means that factors such as past conduct, length of service, work record, and other mitigating factors must be ignored in determining an appropriate discipline.

  • True
  • False

The process of choosing from those available the individuals who are most likely to perform successfully in a job is known as ____.

  • selection
  • appraisal
  • recruitment
  • orientation

Which of the following acts established the National Labor Relations Board (NLRB)?

  • The Taft-Hartley Act
  • The Wagner Act
  • The Norris-La Guardia Act
  • The Railway Labor Act

Which of the following tests is based on the assumption that people are more likely to be successful in jobs they like?

  • Proficiency tests
  • Polygraph tests
  • Interest tests
  • Spatial tests

Which of the following organizations administers the Civil Service Reform Act?

  • The Office of the General Counsel
  • The National Labor Relations Board (NLRB)
  • The National Mediation Board
  • The Federal Labor Relations Authority (FLRA)

Which of the following is an individual incentive plan devised by Frederick W. Taylor that pays one rate for all acceptable units produced up to some standard and then a higher rate for all pieces produced if the output exceeds the standard?

  • Time-and-a-half for overtime system
  • Commission plan
  • Dual exchange rate system
  • Differential piece rate plan

The purpose of an employment application form is to:

  • Inform the applicants about the selection criteria.
  • Inform the applicants about the job responsibilities
  • Test applicants' interpersonal skills.
  • Screen out unqualified applicants

The first step in an organizational disciplinary process is:

  • Communicating performance standards.
  • Establishing performance requirements and work rules.
  • Investigating whether performance standards are maintained or not.
  • Applying corrective action as soon as the transgression is proven.

The following guidelines should be followed when conducting wage and salary surveys EXCEPT:

  • Assess the participating companies for comparability.
  • `Compare more than base wage or salary.
  • Disregard variations in job descriptions.
  • Correlate survey data with adjustment periods.

Title VII of the Civil Rights Act permits the use of a bona fide performance appraisal system.

  • True
  • False

A job-based pay policy tends to work best in situations where:

  • jobs are fairly standardized within the industry
  • employee participation and teamwork are encouraged throughout the organization
  • turnover is relatively high
  • opportunities for upward mobility are limited

Flexible benefit plans are attractive because:

  • Employees are given some control over the distribution of benefits.
  • They do not require much effort to administer.
  • Unions often endorse them as they give them some control.
  • They are not limited by tax laws.

The more a manager uses positive motivational techniques (e.g., recognizing and praising good performance), the more satisfied an employee is likely to be with the appraisal interview and with the manager.

  • True
  • False

Most wage and salary systems establish pay ranges for jobs based on the relative worth of the job to an organization.

  • True
  • False

Brenda had been consistently meeting all her deadlines and performance standards over the past year. However, due to certain health issues, her performance over the last six weeks has been below average. Brenda's manager turned in a poor performance appraisal based on her performance over the last month. Which of the following errors in performance appraisals does this case reflect?

  • Leniency
  • The halo effect
  • The central tendency
  • Recency

____ can be defined as "the raw material from which information is developed and it is composed of acts that describe people, places, things, or events that have not been interpreted."

  • Metrics
  • Data
  • Knowledge
  • Communication

According to the labor market model of pay equity, the wage rate for any given occupation is set at the point where the supply of labor exceeds the demand for labor in the marketplace.

  • True
  • False

Human resource development is the HR function that is concerned with designing and implementing compensation and benefit systems for all employees.

  • True
  • False

Nathan feels that he was terminated from employment with no good reason at all. However, his employer disagrees. Both the parties have decided to solve this dispute through arbitration. Which of the following is true in this scenario?

  • If the dispute is not solved through arbitration, Nathan can take the case to the human resource department.
  • Only Nathan will have to pay the arbitrator for his or her services.
  • The arbitrator does not have to work within the framework that both the parties have negotiated in their collective bargaining agreement.
  • Both Nathan and his previous employer need to agree in advance to abide by an arbitrator's decision.

In a typical virtual classroom, a professor lectures to a local class and a remote class that may be thousands of miles away.

  • True
  • False

In the checklist appraisal method, a rater indicates judgments using:

  • Yes-or-no responses.
  • A seven-point scale.
  • Descriptive paragraphs.
  • A six-square grid.

The most common type of appeal procedure is a No ____ that allows an employee to appeal a disciplinary action taken against him or her to successively higher levels of management.

  • outplacement program
  • peer review policy
  • open-door policy
  • work/life program

From the employers' perspective, a less costly and lower-maintenance hybrid of the traditional defined-benefit plan is termed a:

  • Cash-balance plan.
  • Streamlined-benefit plan.
  • Joint contribution plan.
  • Recycling plan.

A grouping of similar jobs or job classes is known as a No ____.

  • task
  • duty
  • occupation
  • element

Tison Systems Inc. is introducing a new employment arbitration program within the organization. This will generally:

  • Begin with new hires only.
  • Affect only employees who have been in the company for five years or more.
  • Apply to both new and existing employees.
  • Require the company to become unionized.

Currently, organizational discipline in a situation where an employee has violated an organizational rule is most closely related to:

  • Applying corrective action.
  • Reducing diversity within an organization.
  • Firing employees who are average performers.
  • Providing incentives to employees based on their merits.

Generally, workers' compensation is:

  • Available only in highly unionized industries.
  • Compulsory in most states.
  • Optional for all states.
  • Prohibited where health benefits are also provided.

In the context of the duty of fair representation, which of the following statements is true?

  • Unions are not allowed to represent nonunion members.
  • If a union decides in good faith and in a nonarbitrary manner that a grievance is not meritorious, a breach of fair representation does not exist.
  • An individual employee cannot present a grievance to the employer without the aid of a union.
  • An employee cannot recover damages from a union even if the union has breached its duty of fair representation.

A group of employees in a plant, firm, or industry that is recognized by an employer, agreed on by the involved parties, or designated by the National Labor Relations Board (NLRB) or its regional director as appropriate for the purposes of collective bargaining is known as aNo:

  • Focus group.
  • Election unit.
  • Community of interest.
  • Strategic group.

The organizational disciplinary process includes all of the following steps EXCEPT:

  • Establishing performance requirements and work rules.
  • Communicating performance requirements and work rules to employees.
  • Applying corrective action when required.
  • Negotiating employer-employee agreement on proper behavior.

One of the responsibilities of the Federal Mediation and Conciliation Service (FMCS) is to provide mediators to assist in resolving negotiation impasses.

  • True
  • False

When an employee has a complaint against management, the employee normally uses the organization's disciplinary procedure to resolve the problem.

  • True
  • False

According to 2003 data obtained from the U.S. department of Labor, African Americans were less likely to be union members than were whites, Asians, and Hispanics.

  • True
  • False

When creating a job hierarchy all of the following steps are required EXCEPT:

  • determine job specifications
  • identify benchmark or key jobs
  • conduct job analysis
  • write job descriptions

To keep its compensation system fair and competitive, GD Systems Inc. has developed a new base wage and salary system. The primary objective of this system should be to establish an equitable compensation for employees based on ____.

  • their seniority alone
  • their jobs and levels of performance
  • the prevailing cost-of-living alone
  • the demand for a job in the market

WM Automobiles Inc. is using the work standards approach to performance appraisal. Which of the following should the company use as a standard to evaluate a production worker's performance?

  • The average output of a typical employee
  • The highest level of productivity in the organization
  • The cooperativeness of a typical employee
  • The rate of error of a new employee

A condition prohibiting an employer from hiring anyone other than a union member is called aNo:

  • embargo
  • closed shop
  • lockout
  • cartel agreement

If conditions are right, a policy of open pay can improve employees' satisfaction with their pay and, possibly, their effort as well.

  • True
  • False

Family Goods, a chain of departmental stores, provides an incentive pay plan along with its base wage/salary structure. All of the following are reasons for the firm to offer an incentive plans in addition to its base wage/salary structure EXCEPT that:

  • Calculations are simpler when both systems are taken together.
  • Labor market competition necessitates the use of incentives.
  • Payroll expenses can grow or shrink in response to the success of the business.
  • Minimum wage laws specify the use of such a system.

Which of the following is true of cooperative work programs?

  • They are suitable only for high-level, or executive, positions.
  • They offer an opportunity for both a formal education and work experience.
  • They do not consider the pool of talent available in colleges and universities.
  • They are a type of internal source of recruitment.

One of the disadvantages generally associated with recruiting from internal sources is that it could lead to inbreeding of ideas.

  • True
  • False

Most behaviorally anchored rating scales (BARSs) use the term job dimension to mean those broad categories of duties and responsibilities that make up a job.

  • True
  • False

According to the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967 as amended in 1978 employees have the right to ____ any disciplinary action they consider discriminatory.

  • ignore
  • overturn
  • circumvent
  • appeal

Title VII of the Civil Rights Act prohibits the use of age as the basis of any employment condition.

  • True
  • False

True Workers Union (TWU) and Save Employees Union (SEU) have merged to form a new union called the Union of True Employees (UTE). This is an example of a No ____.

  • amalgamation
  • acquisition
  • absorption
  • diversification

The web-based human resource systems (eHR) that many organizations have implemented have not really helped to effectively communicate human resource programs.

  • True
  • False

The intent of the total rewards approach to base wage/salary structure is to place more emphasis on lower-cost rewards and provide a flexible and broad array of rewards.

  • True
  • False

The traditional concept concerning employer or employees' free decisions on termination in nonunionized organizations is termed as:

  • Collective bargaining
  • Employment at will.
  • Crowdsourcing
  • Employment discrimination

A No ____ is used by a company to obtain information from a job applicant that could be used to illegally discriminate.

  • Job description
  • Applicant flow record
  • Realistic job preview
  • Non-disclosure form

In the context of job analysis methods, which type of observation study is also known as a methods study?

  • Work sampling
  • Functional job analysis
  • Motion study
  • Time study

Which of the following may result in organizational discipline?

  • Membership in unions
  • Socializing
  • Reverse mentoring
  • Horseplay

Generally, unemployment compensation is:

  • Funded through taxes paid by employees.
  • Calculated on the basis of an individual's wages received in the previous period of employment.
  • Awarded to individuals who have been fired from their jobs due to their own inefficiencies or faults.
  • Limited to a maximum of 36 weeks.