To minimize problems, a pay-for-performance plan should:
A) appropriately link pay and performance.
B) use pay-for-performance as a stand-alone program.
C) downplay the rewards to avoid an over-focus on productivity.
D) use a single-layer, simple program.
Additional Case 7.1
Shannon is the CEO of a firm that provides high-tech service support to other small
businesses. He plans to revise the performance appraisal system to align it more closely
with company goals. The tailored program should be fair and ethical and should
produce consistent results.
Shannon wants service employees to work together to maximize service quality. Since
the sales force has not been particularly aggressive, sales are lagging. Shannon believes
that profits and customer satisfaction will increase if sales people start providing
after-sale service to customers.
In the past, Shannon’s sales managers have been receiving the same raises, regardless of
their effectiveness. Now, Shannon wants to identify and reward the best-performing
managers. By comparing managers across functions, Shannon believes he will be able
to identify workers who are ready for more challenging responsibilities.
Refer to Additional Case 7.1. The best appraisal system for Shannon’s sales
management team would most likely be:
A) rank order.
B) trait based.
C) outcome based.
D) behavioral based.
When implementing a job-based compensation plan, it is best that a company:
A) focus on tactical, immediate issues.
B) narrow each job’s pay range.
C) avoid job banding.
D) involve employees.
Ahmad has been a line manager at a large jewelry factory for nearly 10 years. This year,
the factory is letting the employees directly under him contribute to Ahmad’s
performance appraisal. This is an example of:
A) subordinate review.
B) superior review.
C) self-review.
D) 360° feedback.
According to research, employees who perform their jobs at above-average levels are:
A) worth 60% of their salary more to the organization than average employees.
B) less motivated by income levels than average employees.
C) worth 40% of their salary more to the organization than average employees.
D) the primary source of brain drain in most organizations.
A 1991 Federal Railroad Administration report showed that approximately________ of
workers involved in railroad accidents tested positive for drugs.
A) 3%
B) 9%
C) 12%
D) 21%
Which of the following aspects is NOT examined in a functional job analysis?
A) The materials or services produced by the job incumbent
B) The methods the job incumbent uses to perform the job
C) The equipment and tools that a job incumbent uses
D) The motivators a job incumbent experiences
In order for a compensation system to work well, it must:
A) enable the firm to achieve its objectives.
B) guarantee low employee turnover.
C) follow an egalitarian strategy.
D) meet federal guidelines.
The OFCCP’s jurisdiction over discrimination issues is:
A) limited to the federal government and its contractors.
B) as broad as the jurisdiction of the EEOC.
C) limited to cases referred to it by the EEOC.
D) tied to affirmative action programs.
Additional Case 15.3
Wear and Tear is a large manufacturer with about 250 employees. At the moment, they
are in new contract negotiations with their union. Cole, the firm’s labor relations
specialist, is heading the negotiations for management. Natalie is labor’s representative.
Cole doesn’t know if he likes working with Natalie. He was able to make her
predecessor agree to his terms whenever they negotiated contracts. Natalie is tougher to
deal with. She tends to emphasize what bad things can happen to Wear and Tear and to
him if her point isn’t granted.
Negotiations have been going on for several days. Cole tells Natalie that if they will
accept wage concessions, the company will give employees stock to compensate for the
loss in wages. Natalie declines the offer and is unwilling to negotiate further. She
reminds him that the contract expires in two days and that the workers will strike if they
don’t have a new contract by that time.
Refer to Additional Case 15.3. Natalie’s refusal of Cole’s offer and of further
negotiations is most likely:
A) illegal under the Wagner Act.
B) an example of bargaining power.
C) illegal according to the Landrum-Griffin Act.
D) an impasse and legal because of the type of bargaining topic involved.
Cornilia and Janice have similar jobs at different firms. Janice is compensated with
higher pay and better benefits than Cornilia, which bothers Cornilia. Cornilia’s concern
reflects the compensation issue of:
A) job versus individual pay.
B) external equity.
C) internal equity.
D) fixed versus variable pay.
When James was fired by Robertson, Inc., he retaliated by infecting the computer
system with a serious virus. James has committed:
A) domestic violence.
B) harassment.
C) cyber theft.
D) sabotage.
Which of the following is the best example of appropriate training objectives?
A) Managers will be aware of cultural diversity issues.
B) Managers will understand the ramifications of EEO law.
C) Managers will conduct personal problem-solving interviews.
D) Managers will respond to customer complaints by telephone within 24 hours.
A(n) ________ allows employers to contribute to the employee’s retirement plan on the
basis of company performance.
A) individual retirement account
B) simplified employee pension plan
C) profit-sharing Keogh plan
D) defined contribution plan
If a complaint is filed with the EEOC, and the EEOC finds no probable cause of a
violation of the law, then the EEOC will most likely:
A) initiate the conciliation process.
B) notify the complainant who may still file a lawsuit.
C) initiate litigation anyway.
D) refer the case to the OFCCP for appeal.
An HMO-based health plan:
A) provides comprehensive coverage for a flat annual fee.
B) provides maximum flexibility to the employee.
C) covers 80% of doctor and 100% of hospital bills.
D) does not cover preventive care services.
Which of the following is LEAST likely a challenge of effective performance
measurement?
A) Employee contributions
B) Organizational politics
C) Instrument invalidity
D) Rater errors
What is the primary reason that managers resist using the positive discipline process?
A) The time frame is too short to alter employee behavior.
B) Most discipline is for gross misconduct.
C) Employees cannot be terminated.
D) Employees receive paid time off.
Candles, Inc. is currently evaluating the ________ the firm gives its employees,
including stock options, benefit packages, and raises based on performance.
A) development
B) compensation
C) bonuses
D) salary
Additional Case 16.1
Greenway Enterprises is a medium-sized manufacturer of electrical components.
Recently, the company has experienced a number of workplace accidents. OSHA
standards have not been violated in any of the accidents. One of the injured employees,
Floyd, files a workers’ compensation claim, which is upheld by the state. Doctors
indicate that Floyd requires 8 weeks of vocational training before he can return to work.
Refer to Additional Case 16.1. Given that OSHA standards were not violated by
Greenway, which of the following is most likely true?
A) Greenway invites OSHA inspectors to review safety procedures each week.
B) Greenway keeps all workers’ compensation records on file for OSHA.
C) Greenway complies with OSHA’s general duty provision.
D) Greenway adheres to OSHA’s fellow-servant rule.
According to research, why do firms experience lower turnover rates when they fill
positions with current and former employees?
A) Effective socialization skills among workers
B) Realistic job expectations of workers
C) Applicable training in college
D) Flexible demands at the firm
Additional Case 4.2
MGN, Inc. is a Fortune 500 company that wants to manage its diverse workforce more
effectively. HR is facilitating meetings among middle managers to communicate this
idea and to gather input from the managers about the best way to accomplish this goal.
Mercedes, a Latina manager, suggests that the company does not need to do more than
what is already being done. She cites the company’s previous affirmative action plan.
“Also,” she argues, “we’ve given African-Americans and Asian-Americans more than
enough opportunity. I tried to promote a Latino to supervisor position, and you guys
(HR dept.) told me I really needed to give Kym, an African-American, the opportunity.”
Paul, a white supervisor, feels that management is management. Managing diversity is
just a gimmick or a passing fad. “I’ve been a supervisor for 20 years, and I’ve found that
if I treat people fairly and listen to them, things work out just fine.”
Ana, a relatively new middle-manager, is a bit more positive about the idea but has
significant reservations. She feels, however, that the company really needs to give
women and minorities access to the “old boys’ network.” If all the company does is
conduct training and devise slogans, nothing will happen.
Finally, Rahkim, an African-American supervisor, says he doesn’t care what they do.
He’s giving notice because he’s joining some other African-Americans in starting their
own company. He’s been a supervisor for five years and has been passed over for
promotion twice. He feels that he has experienced discrimination because he’s
African-American.
Refer to Additional Case 4.2. Rahkim’s statements indicate the firm’s general problem
with:
A) interpersonal communication conflicts.
B) resentment towards affirmative action.
C) inadequate career growth opportunities.
D) job competition between minority groups.
The decision to terminate an employee is management’s role. HR’s primary role is to:
A) implement outplacement services immediately.
B) serve as the employee’s advocate against management.
C) make certain the employee receives due process.
D) document poor performance so the termination can be justified.
Which of the following is NOT a situational factor in employee performance problems?
A) Lack of necessary equipment
B) Inadequate supervision
C) Lack of motivation
D) Inadequate training