CHAPTER 4
1. The criterion used for assessing the long-term effectiveness of an organization is
(a) organizational policy
(b) organizational philosophy
(c) organizational rules and regulations
(d) organizational mission statement
2. An organization’s _____________ describes in broad or general value-laden terms what the
organization wishes to accomplish in the long term—the kind of product it intends to provide and
how it intends to provide it
(a) mission
(b) strategic plans
(c) objectives and goals
(d) policy
3. Which of the following is not a basic or developmental activity in the origin and growth of an
organization?
(a) defining work-unit activities
(b) identifying the mission
(c) writing a policy manual
(d) establishing a philosophy
4. Service occupations include all but which one of the following?
(a) hospital employees
(b) skilled trades
(c) protective services
(d) food preparation and delivery
5. Which of the following would not normally fall under pink-collar classification?
(a) school teacher
(b) secretary
(c) computer programmer
(d) nurse
6. Which one of the following is not included as part of the operative occupational grouping?
(a) paraprofessionals
(b) skilled craftworkers
(c) unskilled workers
(d) secretarial-clerical workers
7. Which one of the following occupations has the smallest percentage of women workers?
(a) operators, fabricators, and laborers
(b) sales
(c) professionals
(d) technician and related support
8. Inside members of an organization’s board of directors are
(a) former employees of the company
(b) current employees of the company
(c) bankers and others having special knowledge of the organization and its industry
(d) major stockholders in the company
9. Approximately what percentage of the work force occupies senior management positions?
(a) 5 percent
(b) 7 percent
(c) 10 percent
(d) less than 1 percent
10. The number two person in an organization will receive approximately ________ percent of the pay
received by the top executive.
(a) 90-95
(b) 85-90
(c) 80-85
(d) 70-80
11. A 1998/99 Watson Wyatt Data Services survey noted that 20% of its survey participants required a
__________ percent difference in pay between first-line supervisors and their highest-paid
subordinates.
(a) 20
(b) 10
(c) 15
(d) 25
12. Salary-only sales compensation plans are especially useful for all but which one of the following
situations?
(a) assigning employees to a new territory
(b) introducing new products
(c) extended time required to close sale
(d) desire rapid increase in sales
13. The most common type of sales compensation plan is
(a) salary only
(b) salary and commission
(c) commission only
(d) bonus plan
14. Those employees whose work requires advanced knowledge in a field of science or learning or
advanced degrees are considered to be
(a) technicians
(b) professionals
(c) executives
(d) administrators
15. Blue-collar jobs include all but which one of the following?
(a) miners
(b) medical technicians
(c) manufacturing workers
(d) heavy equipment operators
16. The bright spot of the union movement has been with successes in
(a) public-sector organizations
(b) banks and life insurance companies
(c) high tech industries
(d) automobile manufacturing
17. Establishing whether an employee is exempt from minimum wage and overtime requirements of
the FLSA depends on
(a) responsibilities, duties, and salary
(b) salary and authority
(c) seniority and performance
(d) responsibilities, duties, and level of performance
18. Which one of the following groups of workers may not be exempted from the wage and hour
provisions of the Fair Labor Standard Act?
(a) independent contractors
(b) part-time workers
(c) casual baby-sitters
(d) companions to the disabled
19. Which one of the following jobs is not exempt from the minimum wage and overtime
requirements outlined by the FLSA?
(a) independent contractors
(b) secretaries
(c) casual baby-sitters
(d) volunteer workers receiving no pay
20. Which of the following jobholders would most likely be considered nonexempt?
(a) supervisors
(b) test technicians
(c) engineers
(d) new car salespersons
21. To be exempt from overtime requirements of the Fair Labor Standards Act, a sales representative
must, among other things
(a) be paid at least $455 a week
(b) receive only general supervision
(c) regularly work away from the employer’s place of business
(d) customarily and regularly exercise discretion and independent judgment
22. To be exempt from the overtime requirements of the FLSA, an employee who earns at least
$____ per year and performs office or nonmanual work, need only perform one identifiable
executive, administrative or professional job duty or responsibility.
(a) $75,000
(b) $100,000
(c) $110,000
(d) $125,000
23. A University of Michigan study noted that a top executive in a Japanese automobile firm was
paid 7 times (7:1) as much as an automobile assembler. It is not unusual for the highest-paid
executive of a large USA corporation to receive _____ times as much as the pay received by the
average industrial worker.
(a) 50
(b) 70
(c) 100
(d) 200
Match the description of a concept listed in the right-hand column with its applicable concept listed in the
left-hand column:
Concept Description of Concept
24. Division of labor (a) What the organization wishes to
accomplish in general value-laden terms
25. Policy (b) Recognition of relative sacrifices and
contributions
26. Equity (c) A description of the values of top
management or leaders of the
organization
27. Organizational philosophy (d) The development of specific and
specialized work assignments
28. Mission (e) Broad guideline for directing the actions
of employees
Match the item listed in the right-hand column that is most applicable to the specific group of employees
listed in the left-hand column:
Employee Group Group Descriptive Item
29. Senior management (a) Work requires advanced knowledge in a
field of science or learning
30. Exempt employee (b) Expected to work on a continuing basis
and meet specific performance standards
31. Regular employee (c) Not required to be paid for work over 40
hours per week
32. Professional (d) Performs manual labor assignments
33. Blue-collar worker (e) Establish policy and formulate strategy
Match the employee work requirements listed in the right-hand column with the appropriate workplace
classification identified in the left-hand column:
Classification Work Requirements
34. Regular employee (a) Person hired to work on a special project
or on an as-needed basis
35. Temporary employee (b) Person hired on a continuing basis
working less than 35 hours per week,
frequently 20 hours or less per week
36. Part-time employee (c) A worker hired to work 35 to 40 hours
per week, 52 weeks a year
37. Full-time employee (d) Person hired for a specific job, expected to work 35-40
hours per week on continuing basis who meets certain minimum performance and time on job
requirements
Chapter 4