Which of the following is NOT a criticism of skill-based compensation systems?
A) Too much labor specialization
B) Unspecific job qualifications
C) Higher labor costs
D) Workplace chaos
Additional Case 5.3
You are a middle manager looking for a first-line supervisor. The selection criteria in
priority order are: 1) the ability to learn and adapt to a changing job, 2) willingness to
perform the job assigned under its current conditions, and 3) strong verbal and
quantitative skills. In addition, the cost of the selection process is a concern since you
want to look at a broad range of candidates.
The firm has about 500 employees and is a federal contractor. There is a racial
imbalance among the management team, which favors white males. No evidence of
discrimination exists, and the firm has never received a discrimination complaint. The
firm’s hourly employees are about 50% female and 35% minority. You have actively
sought to provide access to disabled employees. Two years ago, the firm experienced an
incident in which one employee became violent and injured several other employees.
The firm was held liable for the occurrence.
Refer to Additional Case 5.3. Given the nature of the firm, which of the following laws
is most relevant at this time?
A) Vocational Rehabilitation Act
B) Americans with Disabilities Act
C) Equal Pay Act
D) Executive Order 11246
Additional Case 5.2
You are the HR director for a large company. Production has implemented a very
successful TQM program, and the firm has a reputation for innovation and quality.
Money is tight due to aggressive expansion and marketing efforts, but the firm is doing
well. The firm has a diverse, well-balanced workforce. The CEO prefers to reward
performance through promotion from within. However, if an employee chooses to leave
the company, he or she is not eligible for rehire.
The firm’s MIS managers have requested that you identify 10 candidates for newly
created computer programming jobs. These are entry-level jobs in MIS that require a
bachelor’s degree. Expansion plans in production have also created a number of new
entry-level jobs and two new first-line supervisor jobs.
An upper-level management position is open as well. This is a key position, and the
longer it remains open, the more likely it is that the company will begin to lose market
share. There are a number of excellent candidates for this job. “Fit” with the
organization is one of the top criteria for the selection. The CEO wants both peers and
subordinates to be involved in the process, but the CEO will make the final decision.
The CEO wants your advice about the best selection tool. The CEO wants to narrow the
field quickly and work with the data as he goes along, rather than obtain all the
information on each candidate first.
Refer to Additional Case 5.2. The best recruiting source of candidates for the newly
created computer programming jobs would most likely be obtained through:
A) university job placement offices.
B) private employment agencies.
C) temporary employee agencies.
D) former employee networks.
A work arrangement that gives employees control over the reporting and ending times
of their daily work schedules is known as:
A) work-life balance.
B) compressed workweek.
C) telecommuting.
D) flexible work hours.
In which country do government and/or union regulations limit employer discretion in
recruitment, promotion, and terminations?
A) Singapore
B) Sweden
C) Greece
D) Mexico
Chloe, Operations Manager of Brant International, is trying to encourage employee
empowerment in the business. She supports letting employees take total responsibility
for their career development. As the head of HR, you would most likely:
A) realize that giving total responsibility to employees may leave them without the
guidance and understanding they need to develop their careers.
B) agree that while this is done in most companies, it is too expensive for Brant to
implement at this time.
C) follow her suggestion, knowing that employee empowerment of this sort will
increase worker morale and productivity.
D) believe that the company should play the most active role in employees’ career
development.
York Enterprises is a unionized firm on the verge of conducting layoffs. Which of the
following factors is most likely the primary determinant in layoff decisions?
A) Age
B) Salary
C) Seniority
D) Performance
Which of the following is an advantage of individual-based pay-for-performance plans?
A) Quality goals and production goals are accomplished.
B) Rewarded performance is likely to be repeated.
C) Flexibility is enhanced among supervisors.
D) Equity is relatively easy to achieve.
Which of the following prohibits employers from discriminating on the basis of age
when providing benefits?
A) Age Discrimination and Retirement Act
B) Older Workers Protection Act
C) 1991 Civil Rights Act
D) Executive Order 11246
Which of the following is the most common compensation practice among small firms?
A) Paying below-market rates to technical workers
B) Offering stock options instead of base salaries
C) Paying bonuses based on company performance
D) Offering sign-on bonuses to attractive recruits
Sanford Enterprises provides outplacement assistance through its HR department. The
firm is most likely attempting to:
A) lower unemployment insurance taxes.
B) help departing employees find jobs.
C) improve employee motivation.
D) comply with EEOC rules.
Additional Case 10.2
O’Donnell International is updating its job-based compensation system with a primary
goal of achieving internal equity. Sean is responsible for gathering and organizing
information concerning the tasks and duties of specific jobs. Susie is to determine the
prerequisites for the successful accomplishment of each job analyzed. Jeff will work
with three line managers to determine the compensable factors for specific lower-level
jobs. The HR director, the president, and two VPs will review the information on
management jobs in order to determine the compensable factors in each before putting
all jobs at the firm into a job hierarchy.
Refer to Additional Case 10.2. Susie’s responsibility most likely relates to:
A) conducting the job evaluations.
B) writing the job descriptions.
C) identifying job specification components.
D) rating the worth of the jobs.
If a firm is concerned about changing EEO-related balances among its employee base,
it should NOT use:
A) referrals from current employees.
B) college campus recruiting.
C) employment agencies.
D) advertisements.
In order to create a climate of ethical behavior and fairness in a company, managers and
supervisors should do all of the following EXCEPT:
A) ensure that employees are treated equitably.
B) adhere to clear standards that are seen as just and reasonable.
C) tell white lies to minimize competition between co-workers.
D) take actions to develop trust between themselves and employees.
According to the universal concept of management, management practices should be
________.
A) culturally-based
B) standardized
C) flexible
D) diverse
Team-based incentive plans work best when:
A) the goal is encouraging innovation within groups.
B) individual employees are performance-goal oriented.
C) the contributions of individuals can be accurately isolated.
D) cooperation is less important than internal competition.
Which of the following should be avoided when administering discipline?
A) Showing too much self-control when talking to the employee
B) Addressing the problem directly rather than indirectly
C) Letting employees rationalize their problem behavior
D) Using two-way communication
In a ________ plan, the employer puts in a specific amount and employees may
contribute additional funds. Payout depends on the success of the investments in the
retirement plan.
A) pension
B) defined contribution
C) portable benefit
D) defined benefit
Most people can expect that Social Security will provide approximately ________ of
their needed retirement income.
A) 50%
B) 35%
C) 25%
D) 15%
OSHA places three obligations on employers, including:
A) offering low-cost health insurance to injured workers.
B) keeping records of all occupational injuries and illnesses.
C) providing a pension for survivors of any employee killed on the job.
D) implementing non-smoking work environments in large firms.
Additional Case 5.1
About a year ago, Powley Publishing began looking for a new managing editor for its
home and garden magazine. The previous editor retired after 25 years on the job. The
editors and the HR department debated about the key requirements for a new managing
editor. Some felt it was knowledge of the business, others thought it was interpersonal
skills. A few others believed it was the ability to attract writing talent and subscribers.
Finally, it was decided that HR would screen candidates, and the editors would
interview finalists in conjunction with HR. The HR director would make the final
choice to avoid competition among the editors.
Advertisements were placed nationally. A number of candidates were tested and
interviewed by the HR manager, and references were checked. After a long search, a
new managing editor, Jeff, was hired, but it quickly became apparent that a poor
selection had been made. Although Jeff was competent, his overbearing management
style drove two talented editors to leave for jobs with competitors. Jeff fulfilled all tasks
of the position except soliciting writers and subscribers. In addition, Jeff offered no
ideas or direction about increasing circulation. After 10 months, the publisher let Jeff go
and began looking for a new managing editor.
This time, the firm wants to find someone who is willing to tackle all tasks of the
position and who has the right skills and personality mix. The firm wants someone who
can start quickly and doesn’t require significant training. The ability to innovate is less
critical than the motivation to work hard. Recruiting funds are very limited.
Refer to Additional Case 5.1. The best selection tool for helping Powley Publishing to
identify organizational fit as well as job skill and knowledge, would most likely be:
A) ability tests.
B) personality tests.
C) unstructured interviews.
D) assessment centers.
Additional Case 10.2
O’Donnell International is updating its job-based compensation system with a primary
goal of achieving internal equity. Sean is responsible for gathering and organizing
information concerning the tasks and duties of specific jobs. Susie is to determine the
prerequisites for the successful accomplishment of each job analyzed. Jeff will work
with three line managers to determine the compensable factors for specific lower-level
jobs. The HR director, the president, and two VPs will review the information on
management jobs in order to determine the compensable factors in each before putting
all jobs at the firm into a job hierarchy.
Refer to Additional Case 10.2. For Jeff to accomplish his task, he most likely needs to:
A) conduct the job evaluations.
B) write the job descriptions.
C) rate the worth of the jobs.
D) create a job hierarchy.
If a firm frequently changes the basis of its pay-for-performance system, it will most
likely:
A) diminish its credibility gap.
B) violate its psychological contract with employees.
C) generate fear among employees due to a lack of control.
D) increase employees’ intrinsic drive to perform beyond expectations.
To reduce the threat of sabotage, a company should most likely do all of the following
EXCEPT:
A) discipline employees in front of co-workers.
B) hire quality employees and treat them fairly.
C) offer employees training in conflict management.
D) examine unexplained gaps in job applicants’ resumes.
All of the following were considered illegal under the Wagner Act EXCEPT:
A) companies intentionally interfering in the formation of a union.
B) discharging employees who have failed to perform their job duties.
C) discriminating against employees to discourage union membership.
D) coercing employees to keep them from exercising their rights to form unions.