Additional Case 6.3
MedEquip, a medical services company with 500 employees, has experienced an
extensive business downturn, and a layoff is necessary. MedEquip managers expect a
layoff to be problematic because the firm made verbal commitments to workers for
lifetime employment. You are an HR consultant brought in to assist with the layoff. The
firm has also hired a PR specialist to handle the press releases and public
communications about the layoff. Although MedEquip is a large company, the firm has
built a family atmosphere. Corporate headquarters is located in a small community of
about 10,000 people.
The firm is planning to implement a layoff of 20% of its hourly and managerial
employees. Because of time demands and financial pressures, the layoff will occur in
30 days. The firm plans to use work performance as the layoff criterion. Three areas of
the business will be affected: MIS, facilities, and accounting. Management is concerned
about security in these areas.
Olivia, a middle manager who will not be laid off, has decided to hold group meetings
with the units affected by the layoff. Employees will not receive information in writing
regarding the layoff to avoid litigation issues. Instead, affected employees will receive
verbal communications from Olivia about the layoff. Employees at the firm who are not
losing their jobs will receive e-mails that summarize the current situation at MedEquip.
Refer to Additional Case 6.3. Given the situation at MedEquip, which of the following
statements is most likely true?
A) MedEquip must offer laid-off employees 60 days of income to avoid WARN Act
violations.
B) MedEquip is in violation of the WARN Act and must extend the layoff deadline by
30 days.
C) MedEquip is not subject to the WARN Act because the business is not bankrupt.
D) MedEquip is not subject to the WARN because the business is too small.
Frank, a union member, is discharged by his employer for gross misconduct. When
Frank appeals the decision to his union, he is most likely seeking:
A) due process.
B) residual rights.
C) statutory rights.
D) workers’ compensation.
A recent union election at Proactive, Inc. was run without any kind of federal
government assistance. Which of the following is true of this action?
A) It is perfectly legal. The government is not allowed to be involved in union
formation.
B) It is illegal under the Taft-Hartley Act.
C) If the union vote was conducted off of company grounds, it is legal. If it was
conducted on company grounds, it is illegal.
D) It is the most common practice of labor organizers.
Which of the following is a basic standard of discipline?
A) Peer review of the disciplinary action
B) Documentation of the facts leading to the disciplinary action
C) Complete review of all discipline by the next level of management
D) Individual cases being handled on their own merits even if inconsistency occurs
Diversity is best defined as:
A) biological elements over which individuals have little or no physical control.
B) the personal choices individuals make regarding their lifestyles and goals.
C) all the human characteristics that make people different from each other.
D) affirmative action practices required in the workplace.
Who is responsible for an employee’s career development in most modern companies?
A) Supervisors
B) HR department
C) Employees
D) Organization
The most difficult problem managers have with e-mail is that:
A) workers fail to protect sensitive documents.
B) employees assume that e-mail is their private property.
C) workers don’t understand how to use the system properly.
D) employees don’t use the reply-all option with regularity.
According to the Bureau of Labor Statistics, workplace homicides:
A) have increased significantly in recent years.
B) tend to be directed at managerial staff.
C) have declined slightly in recent years.
D) are rarely reported.
The first step in the use of an Employee Assistance Program (EAP) is to:
A) refer the employee to an EAP counselor.
B) put the employee on corrective action.
C) identify the troubled employee.
D) seek a solution to the problem.
Additional Case 7.2
As an HR manager at a publishing firm, you are reviewing performance appraisals for a
report to the CEO regarding manager performance. The CEO wants to know not only
how employees are doing, but also how well managers are evaluating their employees.
Matt, Madeline, and Edward are the firm’s key managers.
Reading through Matt’s evaluations, you note that he tends to rate all of his subordinates
in the middle of the scale. You recall a conversation during which Matt commented that
his subordinates were overall satisfactory but not excellent. Matt would like to get them
more training and institute an incentive program for motivational purposes.
Madeline’s employee evaluations of her team range from excellent to poor. You are
startled to see that Madeline has rated Juan rather low. Pulling Juan’s file, you note that
he has always had very high ratings until this time. You remember a meeting two
months ago when Juan vehemently disagreed with Madeline in front of the CEO, who
agreed with Juan’s opinion to Madeline’s embarrassment.
Edward’s employee evaluations have very little justification. Gary, the CEO’s
son-in-law, is typically an average performer, but Edward gave him a very high rating.
Jenny, another average performer, has a very low rating. You recall a comment from
Edward that Jenny needed motivation to work harder.
Refer to Additional Case 7.2. Edward’s employee evaluations show that Edward:
A) tends to make halo errors.
B) is subject to the influence of liking.
C) is not considering situational factors in his appraisals.
D) believes in a political perspective regarding performance appraisals.
Lillian, the VP of HR, insists that a career development program should be
implemented at Dresses, Inc. She notes that employee turnover is increasing and many
employees complain that they feel stuck in dead-end jobs. Patty, the president of HR,
claims that due to the recent economic downturn, it is impossible to implement such a
program. From this scenario, it is most likely that:
A) Lillian does not recognize the cost-benefit factors in implementing a career
development program.
B) Patty does not place enough importance upon the vital need of career development.
C) Lillian overestimates the value of career development.
D) Patty is more economically savvy than Lillian.
Job-based compensation:
A) is less appropriate at higher levels in a firm.
B) is the most objective of all compensation systems.
C) is less bureaucratic and inflexible than other systems.
D) has less bias toward women than skill-based compensation systems.
Resources, Inc. has recently increased its emphasis on pay-for-performance. Within the
last several months, there has been a sharp increase in employee competition and the
sabotaging of projects. The incentive plan has most likely:
A) expanded the credibility gap.
B) decreased personal motivation.
C) discouraged employee cooperation.
D) diminished managerial powers over subordinates.
An employee’s expectation of fair and ethical treatment, in return for providing fair and
reasonable amounts of work with a certain degree of quality, is called:
A) an implied contract.
B) a psychological contract.
C) residual rights.
D) contractual rights.
A dual-career family is one in which:
A) the major bread winner works two jobs.
B) the wife is a homemaker and the husband works outside of the home.
C) both husband and wife work.
D) both husband and wife own their own business.
Positive discipline advocates assert that a paid day off is effective for all of the
following reasons EXCEPT:
A) reducing worker apathy and anger.
B) rewarding the employee’s performance.
C) showing management’s good faith to the worker.
D) minimizing the employee’s perception as a martyr.
Michele is determining the value of different jobs in a medium-sized contracting
company. She is most likely:
A) performing job analysis.
B) conducting a job evaluation.
C) trying to achieve internal equity.
D) determining job specifications.
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. What is your best choice of selection tool to assess your
number one criterion?
A) Unstructured interview
B) Cognitive ability testing
C) An assessment center
D) Reference checking
Which statement is true regarding ideal behavior strategy and affirmative action
strategy?
A) Affirmative action asserts that employment decisions should be based solely on race,
religion, and national origin. Ideal behavior asserts that such criteria should be only
partially considered.
B) Affirmative action is illegal in most states, while ideal behavior strategy is legal and
encouraged in all large companies.
C) Affirmative action asserts that employment decisions should be partially based on
race, religion, and national origin. Ideal behavior strategy asserts that employment
decisions should ignore such criteria.
D) Ideal behavior strategy has been upheld by the Supreme Court. Affirmative action is
legal during layoffs but not in other employment situations.
Job-based compensation plans have the advantage of:
A) being objective, data-based systems.
B) having a bureaucratic and definitive structure.
C) appearing rational and systematic, thereby minimizing employee complaints.
D) focusing on the three most important compensable factors, depth, breadth, and
vertical skills.
All of the following are associated with poor employee selection EXCEPT:
A) affirmative action mandates
B) employee resentment
C) dissatisfied customers
D) decreased productivity
An employee who holds his employer accountable for improper conduct by informing
the proper authorities is involved in:
A) whistleblowing.
B) a breach of contract.
C) a psychological contract.
D) due process of the law.
Paying attention to the feelings content of the employee communications process is
especially important when a company is:
A) downsizing.
B) growing.
C) stable.
D) hiring.