A host country is a country, other than the parent country, in which an organization
operates a facility.
Under a new type of psychological contract, organizations expect employees to
contribute time, effort, skills, abilities, and loyalty in return for job security and
opportunities for promotion within the organization.
Current federal laws fail to outline how to use employee databases in order to protect
employees’ privacy while also meeting employers’ and society’s concern for security.
Creating a high-performance work system is similar to traditional management
practices because both treat decision making about technology, organization structure,
and human resources as unrelated.
Title VII of the Civil Rights Act of 1964 states that employers may retaliate against
employees for either opposing a perceived illegal employment practice.
John is the head of the insurance claims department. John works for longer hours than
his subordinates. However, John is not paid overtime for working more than 40 hours
per week. Under the FLSA, which of the following will justify the organization’s
decision not to give John overtime pay?
A. John is not a U.S. citizen.
B. John comes from an economically strong background.
C. John is unmarried.
D. John is considered as an exempt employee.
E. John has lower educational qualifications than his subordinates.
Which of the following incentive plans are specifically designed to promote group
performance?
A. Performance bonuses
B. Gainsharing
C. Standard hour plans
D. Merit pay
E. Commissions
_____ refers to training employees on overseas work assignments to work through
national and cultural boundaries.
A. Adventure learning
B. Experiential learning
C. Validation
D. Cross-cultural preparation
E. Repatriation
The external labor market consists of:
A. contract workers in the organization.
B. current employees of the organization.
C. individuals who are actively seeking employment.
D. employees who have direct contact with customers.
E. employees of the immediate competitors of the organization.
According to the affirmative-action plan required by the Office of Federal Contract
Compliance Programs, which of the following refers to a comparison of the race, sex,
and ethnic composition of an employer’s workforce with that of the available labor
supply?
A. Content analysis
B. Job analysis
C. SWOT analysis
D. Utilization analysis
E. Applied behavior analysis
In the context of HRM functions, the activities of performance management include:
A. identifying applicants with the necessary knowledge and abilities that will help an
organization achieve its goals.
B. making a planned effort to enable employees to learn job-related knowledge, skills,
and behavior.
C. specifying the tasks and outcomes of a job that contribute to an organization’s
success.
D. acquiring knowledge and skills that improve employees’ ability to meet the
challenges of a variety of new or existing jobs.
E. seeking applicants for potential employment.
Neo Pharmaceuticals and Ayurva Medicines combined their businesses to create a new
company, Ayurva Pharmaceuticals Inc. This is an example of a(n) _____.
A. acquisition
B. takeover
C. partnership
D. strategic alliance
E. merger
A media company gives its employees monetary bonuses at the end of the company’s
fiscal year based on employees’ contribution to the firm’s financial success. This is a
method of:
A. including employees in organizational planning.
B. disassociating compensation from performance measures.
C. disseminating organizational learning.
D. increasing employee participation in strategic decision making.
E. linking compensation to performance measures.
ThinkBig Inc. has been known for its excellent customer service since its start more
than 40 years ago. The founder of the company believes that it is because of the
dedicated efforts of his employees. The company boasts of carefully selected employees
who, through various tests, are hired based on their skills and their ability to contribute
to the organization. The organization has benefited greatly because of its process of
selecting employees, which, in turn, has resulted in customer loyalty to the services it
provides. Rival companies have envied the type of selection methods the company has
used to hire candidates. Which of the following would undermine the recruitment
efforts of this company?
A. ThinkBig Inc. is not recognized as providing the best customer service.
B. Customers feel that there is no room for improvement in terms of service provided
by ThinkBig Inc.
C. High performers in the company find it difficult to refer their friends to open
vacancies in the company.
D. Other companies have adopted the same style of recruiting employees as ThinkBig
Inc.
E. ThinkBig Inc. begins hiring employees without thoroughly assessing their skills and
knowledge.
With reference to the impact of unions on company performance, it can be said that
companies wishing to become more competitive must:
A. continually monitor their labor relations strategy.
B. prohibit unions.
C. actively encourage unions.
D. deny collective bargaining rights to their employees.
E. pay workers well above market rates.
Which of the following types of incentive plans are used to reward individual
performance?
A. Gainsharing
B. Merit pay
C. Scanlon plan
D. Profit sharing
E. Stock ownership
Ashton, an HR manager at Reed Inc., only prefers to use nondirective interview
techniques. Nico, the CEO of Reed, wants to convince Ashton to use structured
interview techniques instead. Which of the following arguments must Nico use to
convince Ashton to use structured interview techniques?
A. Nondirective interviews can only assess abstract qualities of a candidate such as
intelligence and leadership.
B. Nondirective interviews are less reliable than structured interviews as they give
interviewers wider latitude.
C. Nondirective interviews are often more expensive than structured interviews.
D. Nondirective interviews rely exclusively on the firsthand job experience of
candidates.
E. Nondirective interviews are always more time consuming than structured interviews.
Trotta Inc., a manufacturer of widgets, has entered into a contract with a third party to
perform a few functions of its supply chain management. The company is engaged in:
A. offshoring.
B. consolidating.
C. licensing.
D. acquiring.
E. outsourcing.
Which of the following is an example of an experiential training method?
A. Jane, who is a cashier, is being trained to stock shelves in case there is a shortage of
employees.
B. Jeffery and his colleagues take part in a rafting course sponsored by their company.
C. Erin and five other managers are tasked to study a business problem and present
recommendations.
D. Hugh is asked to review videos of other employees exhibiting certain important
behaviors related to the workplace.
E. Katherine uses an online persona to make decisions in game simulations involving
job-related situations.
Eli, a graduate in human resource management, believes that an organization that
follows the system of progressive discipline produces responses in written form at
every step of the process. However, his classmate Ivanna argues that written responses
may not be produced at every step. Which of the following would strengthen Ivanna’s
argument?
A. If the organization communicates a temporary suspension for the offending
employee
B. If the organization responds to the second of a series of unacceptable behaviors
C. If the organization responds to the first of a series of offenses
D. If the organization communicates a response with a threat of temporary suspension
E. If the organization does not follow the principles of the hot-stove rule
The primary use of assessment centers is to identify:
A. the employees who have the personality characteristics and skills needed for
managerial positions.
B. the strengths and weaknesses of an organization.
C. the decision processes and communication styles that inhibit production.
D. the opportunities and threats to an organization.
E. the factors that inhibit group performance.
Steve applies for a job at Texel Inc. because his friend Dan, who is a manager there,
prompts him to do so. In this scenario, Steve is a(n) _____.
A. direct applicant
B. natural applicant
C. neutral applicant
D. referral
E. executive search professional
Identify the kind of profession that would typically employ an apprentice.
A. Accountant
B. Doctor
C. Carpenter
D. Nurse
E. Lawyer
John is the owner of The Round, a restaurant. He decides to increase employee
motivation by introducing benefit packages. However, Nina, the manager, suggests that
employees will be more motivated if John increases their actual wages. Which of the
following statements, if true, strengthens Nina’s argument?
A. John’s competitor, Mark, gives many benefits to his employees.
B. The state has introduced mandatory requirements for employee benefits.
C. Benefit packages are more difficult to understand by employees than pay structures.
D. Most of the employees at The Round belong to the age group that looks forward to
pensions.
E. Employees do not prefer cash compensation due to higher tax rates in the state.