Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 8—Managing Human Resources
96. Landon Industries is considering a merger with Lake Industries. Landon offers its employees
competitive salaries and generous benefit packages, but salaries at Lake are below the industry average,
and Lake’s benefit packages is much lower than Landon’s. Not surprisingly, the employees at Landon are
concerned that a merger with Lake would cause their benefits to decline. The CEO of Landon thinks that
the best way to overcome the employees’ resistance to the merger is through education and
communication, but the CEO of Lake wants to force all employees in the newly merged companies to
accept the changes. If the following facts were known, which one would weaken the Lake CEO’s
argument?
a. Several years ago, Lake merged with another company.
b. Employees at Landon have a variety of concerns about the merger, not just the concern about
reduced benefits.
c. Management’s credibilitiy is undermined if it attempts to overcome change by hiding the truth about
the effects of the change.
d. Landon’s customers are loyal to the salespeople they deal with, but they have little loyalty to
Landon as a company.
e. Employees at Landon are paid more than the people at Lake who are doing the same kind of work.
Difficulty: 3 Page-Reference: 259-261
Question ID: 08-1-96 Skill: Analysis
Objective: 8.5
97. Maurice works for Logan Trainers, a company that provides management development
workshops for businesses. Maurice is very popular and companies often ask for him by name, even
though Logan has a lot of different instructors it could assign to workshops. Logan pays all instructors the
same amount for teaching a workshop, but last week Maurice asked that he be given a higher rate of pay
than the other instructors because he is so popular with companies. If the following facts were known,
which one would MOST strengthen Maurice’s case?
a. He has led more training workshops than any other seminar leader who is employed by Logan.
b. If Logan lost Maurice, companies might stop coming to Logan for management development
workshops.
c. Maurice has worked for Logan for fifteen years, which is longer than any other instructor.
d. Maurice is also a teacher in the local high school, and he has received several awards for his
teaching.
e. The businesses that contract with Logan say that the workshops are essential to their operation.
Difficulty: 3 Page-Reference: 256-258
Question ID: 08-1-97 Skill: Analysis
Objective: 8.5
98. Maurice works for Logan Trainers, a company that provides management development
workshops for businesses. Maurice is very popular and companies often ask for him by name, even
though Logan has a lot of different instructors it could assign to workshops. Logan pays all instructors the
same amount for teaching a workshop, but last week Maurice asked that he be given a higher rate of pay
than the other instructors because he is so popular with companies. If the following facts were known,
which one would MOST strengthen Logan’s argument to keep Maurice at his current contract rate?
a. No one from Logan has ever directly observed Maurice’s performance in presenting a workshop.
b. Maurice does not receive retirement benefits because he is not a full-time worker at Logan.
c. Logan has received very few applications from other instructors.
d. Logan uses a single-rate pay system for contingent workers.
e. There is no other agency in the city with whom Maurice could contract to provide similar workshops.
Difficulty: 3 Page-Reference: 256-258