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Chapter 9— Risk Management, Worker Protection, and Employee Relations
MULTIPLE CHOICE
1. _____ typically provide the funds necessary for workers' compensation.
a.
Employers
b.
Employees
c.
Federal government agents
d.
State governments
2. Which of the following statements is true of workers’ compensation laws?
a.
Employers across all industries are required to pay a standard amount as insurance
premium.
b.
Workers’ compensation laws do not require employers to make payments for covering
medical bills.
c.
Employees who work from home are generally not covered under workers’ compensation
laws.
d.
Under the workers’ compensation laws, employers need to contribute to an insurance fund
that compensates employees for injuries received while on the job.
3. Employers who provide injured employees with light-duty work, typically:
a.
increase the workers' compensation premiums till the workers are completely cured.
b.
are violating FMLA regulations by not providing leave to injured employees.
c.
can be held liable by law for any accidents caused by the injured employee at work.
d.
give them less physically demanding work to reduce workers’ compensation costs.
4. Child labor laws, found in the Fair Labor Standards Act (FLSA), set the minimum age for most
employment at _____ years.
a.
14
b.
15
c.
16
d.
17
5. Employers should have at least _____ to be covered by the OSHA.
a.
one employee
b.
ten employees
c.
five employees
d.
twenty employees
6. Who among the following is not covered under the Occupational Safety and Health Act of 1970?
a.
A farmer with eight employees working for him
b.
A bakery with 50 employees working for it
c.
A construction company with 100 employees working for it
d.
A steel-manufacturing company with 2000 employees working for it
7. Alex, a graphic designer, suffers from a terrible headache while at work. He approaches the company
nurse, who gives him aspirins. He gets back to work in an hour when his headache subsides. OSHA
would categorize Alex’s illness as a(n):
a.
lost-time injury.
b.
medical care injury.
c.
minor injury.
d.
disability injury.
8. An OSHA compliance inspector arrives at a meat processing unit and presents his credentials to the
unit manager. The manager, however, refuses to allow the inspector to carry out the inspection
process. In this case, what should the inspector do next?
a.
Refusing to allow an inspector to enter a factory is a crime for which the unit manager can
be sued.
b.
The unit manager has the right to appeal to the regional OSHA office and reschedule the
inspection.
c.
The OSHA inspector can enter the unit forcefully with the help of his officials.
d.
The OSHA inspector must produce a search warrant to enter the unit.
9. The ____ approach to safety management focuses on designing safer jobs and creating policies that
encourage safety.
a.
engineering
b.
systems
c.
organizational
d.
individual
10. Which of the following is typically a part of the organizational approach to safety management?
a.
Applying ergonomic principles
b.
Implementing safety policies
c.
Designing work settings and equipment
d.
Providing employee safety training
11. Sam, a product development manager, and his team are in the process of designing ergonomic desks
that would help the employees in their organization work effectively without any discomfort or
physical ailments. Which of the following approaches is being used by Sam’s organization for safety
management?
a.
The systems approach
b.
The engineering approach
c.
The organizational approach
d.
The individual approach
12. Who among the following is considered disabled under the ADA?
a.
A person addicted to prescription drugs
b.
A person addicted to an illegal drug
c.
A person who is prone to developing an addiction to alcohol
d.
A person who is prone to developing an addiction to illegal drugs
13. Who among the following is considered disabled under the ADA?
a.
A person addicted to alcohol
b.
A person addicted to an illegal drug
c.
A person who is prone to developing an addiction to nicotine
d.
A person who is prone to developing an addiction to illegal drugs
14. Which of the following statements is true of the Americans with Disabilities Act?
a.
Those addicted to legal prescription drugs are not considered disabled.
b.
Recovering substance abusers are considered disabled.
c.
Illegal drug users are considered disabled.
d.
Addiction to alcohol is not considered a disability.
15. ReNaPro Inc., a multinational marketing agency, offers a curriculum in health education for its
employees. It provides health promotions on a regular basis and offers incentives to employees for
joining the company’s wellness and fitness programs. The company’s health insurance also pays for
smoking cessation and substance abuse services. ReNaPro is:
a.
engaged in health promotion at the highest level of organizational commitment.
b.
violating the ADA by indirectly forcing employees to join wellness programs.
c.
violating the Genetic Information Nondiscrimination Act.
d.
working to curb cumulative trauma disorders.
16. Which of the following is typically a characteristic of potentially violent employees?
a.
Tendency to be the centre of attention
b.
Interest in several activities rather than treating work as a sole major activity
c.
Absence of any strain or distress
d.
Involvement in telephone harassment
17. Which of the following is typically a characteristic of potentially violent employees?
a.
Tendency to be the centre of attention
b.
Interest in several activities rather than treating work as a sole major activity
c.
Absence of any strain or distress
d.
Tendency to hold obsessive grudges
18. A security audit is also referred to as a(n) _____.
a.
vulnerability analysis
b.
risk analysis
c.
independent review
d.
risk assessment
19. Which of the following is a part of security audits?
a.
Identification of mentally-ill employees
b.
Identification of the whistle-blowers in a company
c.
Validation of employee screening and selection
d.
Review of disaster plans of an organization
20. A security audit typically begins with:
a.
a discussion with selected employees in an organization.
b.
a background check of all the security personnel of a company.
c.
a review of the disaster plans of a company.
d.
a survey of the area around a company.
21. Which of the following statements is true of disaster planning?
a.
Conducting simulations is a mandatory part of organizational assessment in disaster
planning.
b.
Disaster training is usually conducted by the OSHA’s compliance inspectors.
c.
Having backup databases is a key consideration of human impact planning.
d.
Terrorism is generally not considered in disaster plans since it is not a natural calamity.
22. During disaster planning, organizational assessment includes the:
a.
development of a disaster recovery plan.
b.
creation of backup databases for storing employee contact details.
c.
development of training modules in consultation with disaster experts.
d.
creation of simulations for employees and managers.
23. Which of the following is true of the rights of an employee?
a.
For the rights of an employee to exist, they must be contained in a formal employment
contract that the employee has signed.
b.
For the rights of an employee to exist, they must be spelled out at the time of appointment.
c.
Moral rights of the employees are typically the result of specific laws or statutes passed by
federal, state, or local governments.
d.
An employee’s contractual rights are based on a specific contract with an employer.
24. Jeff is a private investigator. According to an agreement with one of his clients, Jeff is required to
perform background checks on all the applicants for managerial level vacancies in the company for a
year, for a fixed fee payable every month. He has complete access to all employee-related documents
in the company. These provisions made in the agreement are _____.
a.
implied obligations
b.
responsibilities with few rights
c.
contractual rights
d.
social responsibilities
25. Roger is hired by an international HR consulting firm as its outplacement counselor. Prior to receiving
extensive training on the company’s copyrighted techniques and programs, Roger is asked to agree in
his employment contract that he will not work as a trainer for a rival outplacement company in a
specified list of states for a period of one year, if he quits or is terminated. This best exemplifies the
_____ agreement
a.
nonpiracy
b.
noncompete
c.
nonsolicitation
d.
unenforceable
26. Matt accepts a job offer as a chemical engineer in the R&D department of Tulip Inc., paint
manufacturing company. After accepting the job offer, he signs an employment contract stating that
the results of his research would be the sole property of the company. Matt comes up with an
innovative paint formula which could withstand extreme temperatures. He receives a promotion and a
handsome package for his work. However, he is annoyed that the formula was not patented in his
name. In the context of the given scenario, which of the following statements is true?
a.
The advances made by Matt on the job fall under the management and control of his
organization.
b.
Matt’s formula is his own intellectual property and he has the right to use it as he sees fit.
c.
Since the formula can be patented only by Matt, the company is legally required to pay
him 30% of the total profits gained.
d.
The company can receive a fine up to $ 5 million for drawing a contract that is
unenforceable.
27. Claudia, when selected as a senior engineer by her company, is promised that she would start working
on live projects within three months from her joining date. She signs a contract stating that she would
give three months’ notice before quitting the job. Which of the following statements is true of the
given scenario?
a.
Claudia is an at-will employee.
b.
The supervisor has violated an employment law by making a promise.
c.
Claudia has an implied contract with the company.
d.
The supervisor cannot be challenged in a court.
28. Employment-at-will is a common-law doctrine holding that:
a.
an employee must provide a minimum of two weeks’ notice before quitting a job.
b.
employees can be asked to leave a company only if they are willing to do so.
c.
employees are free agents, but employers must have a just cause for terminating them.
d.
an employer has the right to hire, fire, demote, or promote whomever it chooses.
29. Which of the following rights does the EAW provide employers with?
a.
The right to confidentiality
b.
The right to demote
c.
The right to establish new rules and regulations
d.
The right to discriminate against minorities
30. Grace is asked by her employer to quit her job on the grounds that she is not punctual. Considering
that the law of employment-at-will holds in the given scenario, which of the following statements is
true?
a.
Grace can get her job back using the “implied contract” exception to employment-at-will.
b.
Grace has to give in to her employer’s demands and quit her job.
c.
Grace can get her job back using the “public policy” exception to employment-at-will.
d.
Grace’s employer is committing a very commonly seen federal crime.
31. Emily is an attorney who has been fired by her employer after she accidentally witnesses a senior
attorney, who is also a close friend of the manager, accepting bribe from a client. Emily:
a.
has no recourse because she is an at-will employee.
b.
can seek legal recourse because attorneys are not bound by the EAW.
c.
can sue her employer because the reason for her firing is a violation of public policy.
d.
should be granted compensatory salary for two months for being fired at a short notice.
32. An employer is guilty of _____ if an employee is terminated for reasons that are illegal or improper.
a.
wrongful discharge
b.
dysfunctional turnover
c.
voluntary turnover
d.
deconstructive discharge
33. The process of deliberately making conditions intolerable to get an employee to quit is referred to as
_____.
a.
whistle-blowing
b.
due process
c.
constructive discharge
d.
voluntary turnover
34. After a personality conflict with his manager, Will is asked by the manager to work for extra hours
every day. Will is given the toughest assignments and is often ignored and even insulted during team
meetings and discussions. Will considers quitting the job owing to the intolerable work conditions.
Will’s manager can be held responsible for _____.
a.
whistle-blowing
b.
due process
c.
constructive discharge
d.
involuntary turnover
35. Having a “just cause” for employment-related action is necessary primarily for ensuring that:
a.
statutory law is not implemented.
b.
whistle-blowing activities are checked.
c.
the employer steers clear of due process.
d.
fairness is taken into consideration.
36. Amber is working as a sales associate in a department store. When a few high-priced products are
found missing from the store, Amber is accused of theft and fired from the job. Neither an
investigation is conducted nor is Amber allowed to explain herself. Which of the following is true of
the given scenario?
a.
Amber’s right to arbitration has been violated.
b.
Due process has not been followed by the employer.
c.
Amber’s statutory rights are upheld.
d.
Amber is not given the option of involuntary turnover.
37. Individuals outside the normal chain of command who act as problem solvers for both management
and employees are called:
a.
ombuds.
b.
whistle-blowers.
c.
union-stewards.
d.
peer review panelists.
38. In the context of the Americans with Disabilities Act, which of the following statements is true about
medical-related information?
a.
It should be maintained separately from all other confidential files, to protect the privacy
of employee medical records.
b.
It should be given to the employee and no copies should be made or kept by the employer.
c.
It should be used only by the safety committee when deciding what accommodations can
be made for an affected employee.
d.
It should be filed with all other confidential information about an employee, with access
restricted to the employee and certain company officials.
39. Ken works in a pharmaceutical company that sells antibiotics at a low cost to several African
countries. He later gets to know that most of these drugs are expired antibiotics that have been re-
packaged by the company. Ken immediately informs one of his friends, a federal agent, regarding his
company’s illegal activities. Which of the following statements is true of the given scenario?
a.
The Sarbanes-Oxley Act would protect Ken from retaliation by his employer.
b.
Ken’s constitutional right to freedom of speech would protect him from any form of
retaliation by his employer.
c.
Ken would receive no protection since no comprehensive whistle-blowing law protects the
right to free speech.
d.
The Data Protection Act would give the company the power to terminate Ken and the
company may or may not face legal action.
40. Employees cannot be disciplined for including work-related comments in their blogs if the:
a.
blog content is harmless and positive.
b.
statements in the blog are negative, but accurate and verifiable.
c.
employees work for private companies.
d.
employees work for federal agencies.
41. In the United States, the right of protection from unreasonable search and seizure:
a.
protects an individual only against search and seizure by agents of the government.
b.
has been eliminated by the USA Patriot Act.
c.
protects all employees from unreasonable searches and seizures by employers in the
workplace.
d.
protects only those individuals employed in the private sector.
42. The monitoring of an employee’s activities on company systems is primarily required for:
a.
keeping track of all employee interactions to obtain information on their feelings and
perceptions regarding the workplace.
b.
controlling employee access to illegal Web sites that could create problems with law
enforcement agencies.
c.
identifying the whistle-blowers among the employees to keep track of their activities.
d.
reading through employee mails for signs of dissatisfaction among employees that could
lead to high attrition rates.
43. Which of the following employer actions would most likely be a violation of employee privacy?
a.
Reading an employee’s business e-mails
b.
Recording the phone conversations of customer care employees
c.
Placing video cameras in rest rooms
d.
Monitoring employee blogs
44. The Drug-Free Workplace Act of 1988:
a.
covers all intoxicating substances, including alcohol.
b.
requires government contractors to take steps to eliminate employee drug use.
c.
covers the use of illegal substances both on the job and off the job.
d.
applies only to private sector employers.
45. Which of the following is a major drug testing policy that most employers follow when testing current
employees?
a.
Random testing of male employees at periodic intervals
b.
Testing only when there is probable cause
c.
Testing employees only when they are not on duty
d.
Testing only after getting consent from immediate family members
46. _____ typically provide specific customary methods to employers for handling activities.
a.
Procedures
b.
Policies
c.
Code of conduct
d.
Yellow-dog contracts
47. The employee contract of Uranus Inc. clearly states that, “Every employee in the company must avoid
smoking within the company premises.” This best exemplifies a:
a.
policy.
b.
procedure.
c.
rule.
d.
request.
48. Discipline is most constructively viewed as _____ that enforces organizational rules.
a.
persistent persuasion
b.
negative reinforcement
c.
punishment
d.
training
49. The _____ approach to discipline builds on the philosophy that violations of procedures and rules by
employees are actions that usually can be constructively corrected without penalty.
a.
authoritative discipline
b.
positive discipline
c.
progressive discipline
d.
dictatorial discipline
50. _____ typically incorporates a sequence of steps, each becoming more stringent, that are designed to
change an employee's inappropriate behavior.
a.
Progressive discipline
b.
Self-discipline
c.
Peer review
d.
Positive discipline
51. The final stage of both the progressive and the positive approaches to discipline is:
a.
suspension.
b.
counseling.
c.
termination.
d.
mediation.
TRUE/FALSE
1. Medium-sized companies have the highest reported rates of workplace injuries and illnesses.
2. Self-employed people are less vulnerable to accidents than those who work for others.
3. Under workers' compensation laws, employers contribute to an insurance fund that would compensate
employees for injuries received while on a job.
4. Julie, a legal assistant in a company, injures her back while lifting a box of trial documents onto her
desk when working from home. Julie can depend on her company’s workers’ compensation coverage
for treating her injury.
5. The provision of light-duty work to disabled people is an attempt by the ADA to increase the rate of
employment among the disabled in the United States.
6. Federal child labor laws have set the minimum age as 21 for all hazardous occupations.
7. The Occupational Safety and Health Act provides for on-the-spot inspections by OSHA
representatives.
8. The last phase of accident investigation involves preparing a report on the accident.
9. The individual approach to safety is based on the assumption that if work settings and equipment are
designed well, the number of accidents in a company can be brought down.
10. Recovering substance abusers are not considered disabled under the ADA.
11. The dependency on illegal drugs is not a disability under the American with Disabilities Act.
12. Firms that do not screen employees adequately can be subject to liability if an employee commits
crimes later.
13. Organizational assessment during disaster planning includes the establishment of a disaster planning
team.
14. It is primarily the duty of the HR unit in a company to implement disaster and recovery plans.
15. Statutory rights are the result of specific laws or statutes passed by federal, state, or local governments.
16. The use of employment contracts is restricted to the hiring of executives and senior managers.
17. An employee has rights and responsibilities beyond those spelled out in the job description,
employment contract, HR policies, and the employee handbook.
18. Mere employer expectations about acceptable behavior and performance cannot legally be considered
an implied contract.
19. If an employer deliberately makes conditions intolerable for an employee as an attempt to force an
employee to resign, the employer is guilty of wrongful discharge.
.
20. The use of arbitration in employment-related situations can be considered unfair because it is the
employers who often select the arbitrators.
21. One of the advantages of using a peer review panel for dispute resolution is the provision of a due
process.
22. One of the disadvantages of using transformative mediation for dispute resolution is that it is less
exploratory in nature than other methods.
23. A citizen’s right of individuals to freedom of speech granted by the U.S. Constitution is an unrestricted
one in the workplace.
24. Several comprehensive whistle-blowing laws fully protect the right to free speech of both public and
private employees.
