65) What is the total package that a firm offers employees in return for their labor?
A) Wage
B) Salary
C) Benefits
D) Compensation
E) Retention plan
66) What do top executives often receive as incentives?
A) Merit salary systems
B) Workers’ compensation insurance
C) Salaries
D) Stock options
E) Wages
67) What type of pay system rewards middle managers for especially high output, often
exceeding the value of bonuses?
A) Variable pay
B) Merit raises
C) Profit-sharing
D) Gainsharing
E) Pay-for-knowledge
68) Which of the following is considered to be more effective than merit raises in motivating
middle managers to increase output?
A) Wage inflation
B) A bonus system
C) A gainsharing plan
D) Pay for performance
E) Salary sacrifice
69) If a firm ends its fiscal year with profit, which plan can the firm use to distribute part of the
excess to employees?
A) Gainsharing plan
B) Profit-sharing plan
C) Cafeteria plan
D) Insurance plan
E) Salary-sharing plan
70) Which of the following companywide incentive plans distribute bonuses to employees when
a company’s costs are reduced through greater work efficiency?
A) Wage setting plans
B) Pay-for-performance plans
C) Profit-sharing plans
D) Gainsharing plans
E) Pay-for-knowledge plans
71) Some employers provide employees with a fixed dollar amount for benefits, allowing
employees to choose between various health insurance, life insurance, disability insurance, and
educational benefits. What is the name of this plan?
A) Gainsharing
B) Profit-sharing
C) Cafeteria benefits
D) Equal employment
E) Retention benefits
72) Wages refer to compensation usually expressed as an amount paid per year.
73) The number of variable pay programs in the United States has been consistently falling for
the last decade, and it is predicted that they will continue to decline in popularity.
74) Many firms say that merit raises are a better motivator than variable pay.
75) In a company-sponsored pension plan, employees are not allowed or required to make
contributions.
76) In recent years, some companies have run into problems because they have not set aside
enough money to cover the retirement funds they have agreed to provide.
77) In setting wage and salary levels, a firm may start by looking at competitors’ levels.
78) Explain commonly offered benefits and identify at least two benefits that are mandated by
the Federal government.
79) Which of the following types of training occurs while the employee is at his or her place of
work?
A) On-the-job training
B) Vestibule training
C) Off-site training
D) Incentive training
E) Remote training
80) A departmental manager is meeting with each of his subordinates to discuss how well each
employee has done their job over the past year. What process is he involved in?
A) Job description
B) Labor negotiations
C) Vestibule assessment
D) Performance appraisal
E) Financial remuneration
81) Which of the following indicates that the assessment of one employee is affecting the ability
to be objective when rating another employee?
A) Halo error
B) Recency error
C) 360 degree feedback
D) Judgmental methods
E) Fixed standards
82) A restaurant is undergoing a change in cuisine and style of service. It is important that new
staff is hired and existing staff retrained. Why might the HR manager recommend vestibule
training as being highly effective in this situation?
A) Prospective and present employees can be screened to see if they convey the restaurant’s new
ethos.
B) Off-site training has great value for evaluating the effectiveness of performance appraisals.
C) Employees will be reluctant to undertake training removed from the workplace.
D) The owners can be more confident that the change to the restaurant will be popular with
customers.
E) Employees will see limited connections to everyday work in this type of training.
83) Which of the following will help a manager learn the skills needed to be more successful
both now and at some point in the future?
A) Training
B) Development
C) Cafeteria-style plans
D) Pay-for-knowledge plans
E) Vestibule training
84) How can an organization determine if training has been successful?
A) Have employees fill out a survey on how well they liked the training.
B) Track how much time employees spent at the training program.
C) Monitor the waiting list for the training program.
D) Test job performance both before and after training has been complete.
E) Measure job performance after training has been completed.
85) Which of the following represents a formal process used to aid in decision making about
training, raises, and promotions?
A) Judgments
B) Evaluation of training
C) Vestibule training
D) On-the-job training
E) Performance appraisals
86) When conducting a performance appraisal that uses output as a basis for appraisal, what type
of method is being used?
A) Objective
B) Judgmental
C) Ranking
D) Comparison
E) Rating
87) What is the advantage of using a rating method rather than a ranking method during the
performance review process?
A) Each employee is compared to all other employees in the group.
B) Each employee is compared to a fixed standard.
C) The recency error is eliminated.
D) Managers do not need to utilize a 360-degree review.
E) Providing employees with meaningful feedback is easier.
88) What type of rating system incorporates feedback from customers, subordinates and peers,
among others?
A) Ranking
B) Recency
C) 360-degree feedback
D) Judgmental
E) Rating
89) Performance appraisals are designed to show workers how well they are doing their jobs.
90) The best method of evaluating the success of training is to ask how the employees liked the
training and which aspects they feel will be most relevant to their job.
91) How do organizations develop workers’ skills?
92) What is the name given to an employee who is hired on something other than a permanent or
full-time basis?
A) Knowledge expert
B) Contingent worker
C) Technical employee
D) Supervisory manager
E) Managing director
93) Workers such as computer scientists, engineers, and software developers who typically
require extensive and highly specialized training, are known as what?
A) Technical workers
B) Knowledge workers
C) Contingent workers
D) Labor relation workers
E) Union workers
94) Which term refers to employees hired to supplement a firm’s permanent workforce?
A) Union workers
B) Contingent workers
C) Knowledge workers
D) Flextime workers
E) Remote workers
95) What are independent contractors, on-call workers, temporary employees, contract
employees, and leased employees all examples of?
A) Union workers
B) Contingent workers
C) Migratory workers
D) Ancillary workers
E) International workers
96) What is the advantage for a firm who works to hire from a diverse workforce?
A) Limited social awareness among employees
B) Increased ability to institute cafeteria-style benefits
C) A higher quality labor force
D) More flexibility in schedules
E) Increased employee retention
97) In addition to increased flexibility, why do organizations use contingent workers?
A) There is less need for training.
B) Contingent workers can replace knowledge workers.
C) Contingent workers often represent a higher quality labor force.
D) Contingent workers cost less.
E) The organization simply cannot find full time workers.
98) The range of workers’ attitudes, values, beliefs, and behaviors that differ based on age,
gender, or ethnicity all represent workforce diversity.
99) The increased demand for knowledge workers will require firms to use extra measures, such
as higher salaries and signing bonuses, to attract qualified employees.
100) Explain the meaning of workforce diversity.
101) How can diversity create competitive advantage?
102) When does the collective bargaining process begin?
A) When the contract is ratified by the members
B) When the bargaining zone is identified
C) When the union is recognized as the official bargaining agent for members
D) When union and management representatives agree to contract terms
E) When the employer establishes a maximum limit
103) What is the name given to a group of individuals working together to achieve shared job-
related goals such as higher pay, shorter working hours, greater benefits, or better working
conditions?
A) Management organization
B) Company hierarchy
C) Labor union
D) External organization
E) Permanent employees
104) Which term refers to a labor action in which employees temporarily walk off the job and
refuse to work?
A) Strike
B) Lockout
C) Boycott
D) Mediation
E) Bargaining
105) Who are temporary or permanent replacements for striking workers?
A) Strikebreakers
B) Union busters
C) Union breakers
D) Contingent workers
E) Labor relation teams
106) What is the process of working with employees who are represented by a union?
A) Labor relations
B) Human resource management
C) Negotiation
D) Arbitration
E) Contingency recruitment
107) What is the process by which union leaders and managers negotiate common terms and
conditions of employment for the workers represented by unions?
A) Striking
B) Picketing
C) Informational gathering
D) Collective bargaining
E) Compensation planning
108) Which of the following occurs when union members agree NOT to buy the products of a
targeted employer?
A) Lockout
B) Boycott
C) Mediation
D) Arbitration
E) Slowdown
109) If negotiations fail, what can a company choose to use to prevent union employees from
coming to work?
A) Wildcat strike
B) Lockout
C) Strikebreaker
D) Economic strike
E) Bailout
110) What occurs when a neutral third party dictates a settlement between two sides that have
agreed to submit to outside judgment?
A) Mediation
B) Arbitration
C) Strikebreaker
D) Impasse
E) Picketing
111) In a union contract, future wage increases are often tied to the Consumer Price Index and
provide for
A) economic strikes.
B) contract renegotiations.
C) wage reopener clauses.
D) pay tied to productivity.
E) cost of living adjustments.
112) What tactic could a unionized employee take to show why they are striking against an
employer?
A) Picketing
B) Boycotting
C) Work slowdowns
D) Mediation
E) Lockouts
113) Which alternative to striking encourages workers to work at a pace that results in
significantly lower productivity for the organization?
A) Work slowdown
B) Lock out
C) Sickout
D) Picket
E) Boycott
114) Labor relations refers to dealing with employees who are not represented by a union.
115) A solution to a long-term contract based solely on COLA is called a wage reopener clause
that does not allow wage rates to be renegotiated.
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116) Although millions of American workers still belong to unions, union membership as a
percentage of the total workforce has steadily declined.
117) Wage reopener clauses are required by law.
118) A work slowdown is an alternative to striking where large numbers of workers perform at a
much slower pace than normal.
119) Describe the current trends in labor-management relations in the United States.
120) Explain the difference between labor relations and a labor union.
121) What options are available to the union when contract negotiations break down?
122) What options are available to management when contract negotiations break down?
123) Why is it important for the union to include a cost-of-living adjustment clause when
negotiating a union contract?
124) A union can picket, boycott, or use a work slowdown to support strike efforts. Why would
the union choose one of these over the other?