Retailing Management, 10e (Levy)
Chapter 15 Human Resources and Managing the Store
1) Employee productivity is retail sales or profit multiplied by the number of employees.
2) The job description identifies essential activities to be undertaken and is used to determine the
qualifications of potential employees.
3) During a behavioral interview, the interviewer asks the candidates how they handled actual
situations they have encountered in the past.
4) Rewards provided by either the employee’s manager or the firm such as compensation,
promotion, and recognition are called intrinsic rewards.
5) The Fair Labor Standards Act prohibits unequal pay for men and women who perform equal
work or work of comparable worth.
6) Autocratic leaders seek information and opinions from employees and base decisions on this
information.
7) Democratic leaders make all the decisions on their own and then announce them to employees.
8) Transformational leaders get people to transcend their personal needs for the sake of the group
or organization.
9) Shrinkage is the inventory loss due to employee theft, shoplifting, mistakes, inaccurate records,
and vendor errors.
10) The most effective approach for reducing employee theft and shoplifting is to create a trusting,
supportive work environment.
11) ________ is expressed as a retailer’s sales or profits divided by the number of employees.
A) Human resource management
B) Employee turnover
C) Employee productivity
D) Operation management
E) Organizational management
12) Which of the following is typically the first step in the employee management process?
A) Recruiting employees
B) Training employees
C) Motivating employees
D) Evaluating employees
E) Socializing employees
13) Lee just signed a lease for her lunch delivery business and is now ready to become involved in
the employee management process of her business plan. What should Lee do first?
A) Train employees.
B) Motivate employees.
C) Recruit employees.
D) Evaluate employees.
E) Socialize employees.
14) The ________ identifies essential activities to be undertaken and is used to determine the
qualifications of potential employees.
A) job description
B) job analysis
C) job rotation
D) job enrichment
E) job enlargement
15) Donna is the sales manager at a store that sells musical instruments. She has developed a job
description for each of her employees. These job descriptions will be used for all of the following
except
A) recruiting employees.
B) selecting employees.
C) training employees.
D) evaluating employees.
E) compensating employees.
16) Which of the following contains information about the applicant’s employment history,
previous compensation, reasons for leaving previous employment, education and training, and
references?
A) Job preview
B) Job description
C) Job application
D) Job analysis
E) Job enrichment
17) A typical application form would be least likely to provide information about the applicant’s
A) educational qualification.
B) previous compensation.
C) employment history.
D) character.
E) reasons for leaving previous employment.
18) Which of the following statements is true of references?
A) References help in screening up to 15% of applicants that have applied for a vacancy.
B) References provide an insight about how hard potential employees will work.
C) References provide information about the employee’s history and personal health.
D) References are a good way to verify information given on an application form.
E) References involve detailed interviews with the applicant.
19) Which of the following statements is true about the use of testing?
A) It is legal to use tests that discriminate against specific groups.
B) It is illegal for employers to give applicants drug tests.
C) Tests must be scientifically and legally valid.
D) Tests are of no help in developing training programs.
E) It is legal to use tests that assess factors that are not job-related.
20) Which of the following is a benefit of using realistic job previews to screen job applicants?
A) Decrease in employee turnover
B) Increase in employee turnover
C) Tax benefits from the state government to the employer
D) Tax benefits from the federal government to the employer
E) Tax benefits from the federal government to the employees
21) Randy applied for a position as a butcher’s assistant at a nearby supermarket. After he
completed his application, the manager showed him a video reviewing the responsibilities of an
assistant to the butcher. After viewing that the video, Randy felt sick and told the manager he didn’t
want the job. This screening technique is called
A) testing.
B) scaling.
C) job analysis.
D) job preview.
E) job enrichment.
22) The employee turnover for the custodial host position at the local department store was high,
and the department managers were beginning to complain to Gina, the store manager. There was
no lack of applications, and the pay was comparable to other stores, yet those who took the
position stayed no longer than a week. Exit interviews revealed that employees felt the job’s
responsibilities were not what they expected. Which of the following is the best method Gina
could use to reduce turnover?
A) Accept more applications by reducing required standards.
B) Insist that each applicant takes a drug test within 48 hours of applying.
C) Check the employment history and references of applicants.
D) Show a video to applicants about the responsibilities of the job.
E) Require applicants to take intelligence quotient and emotional quotient tests.
23) After screening applicants, the selection process typically involves a(n)
A) IQ test.
B) EQ test.
C) training module.
D) orientation module.
E) personal interview.
24) Which of the following is the most widely used interview technique?
A) Panel interview
B) Telephonic interview
C) Case interview
D) Behavioral interview
E) Stress interview
25) A(n) ________ helps new employees acquire the basic skills and knowledge they need to be
able to do their jobs.
A) on-the-job training program
B) structured training program
C) job preview program
D) behavioral interview
E) employee engagement program
26) Sasha is a 22-year-old who has just started a job at a clothing store. She finds that her ideal
working environment is different than that of her older coworkers. Sasha likely values all of the
following except
A) meaningful job duties.
B) a strict dress code.
C) professional freedom.
D) work-life balance.
E) flexible hours.
27) On payday, June received her weekly salary plus 2% of each sale she made during the pay
period. Which of the following is this an example of?
A) Superannuation
B) 401(k)
C) Gratuity
D) Stock option
E) Commission
28) ________ prohibits discrimination on the basis of race, national origin, gender, or religion in
company personnel practices.
A) Title I of the Civil Rights Act
B) Title II of the Civil Rights Act
C) Title IV of the Civil Rights Act
D) Title V of the Civil Rights Act
E) Title VII of the Civil Rights Act
29) The ________ allows employees to sue employers that violate employment laws.
A) Equal Employment Opportunity Commission
B) United States Chamber of Commerce
C) Center for Capital Markets Competitiveness
D) Institute for a Competitive Workforce
E) National Chamber Foundation
30) Which of the following is the formula for calculating employee turnover?
A) Number of employees voluntarily leaving their jobs during the year/Number of positions
B) Number of employees fired from their jobs during the year/Total number of employees
C) Number of employees voluntarily leaving their jobs during the year/Total number of employees
D) Number of employees fired from their jobs during the year/Number of positions
E) Number of positions/Total number of employees
31) What would the employee turnover be if the store had ten positions for management trainees
and four employees voluntarily left their jobs during the year?
A) 60%
B) 40%
C) 140%
D) 160%
E) There is not enough data to determine a correct percentage
32) Which of the following is a result of hiring inexperienced, low-wage employees?
A) Sales increase
B) Better customer loyalty
C) Extensive employee feedback
D) Higher labor expenses
E) High employee turnover
33) Craig works for a retailer deciding what merchandise will be in the assortments, setting prices,
negotiating with vendors, and planning advertising and marketing for accessories. He attends
fashion trade shows and travels to market in New York City nearly every month. What position in
the organizational structure of a retailing firm does Craig have?
A) Merchandise planner
B) Divisional merchandise manager
C) Store manager
D) Buyer
E) Department manager
34) Tiana works for a national retailer planning what merchandise will be sent to the different
geographical areas of the country and manages the budget of the department. What position in the
organizational structure of a retailing firm does Tiana have?
A) Merchandise planner
B) Divisional merchandise manager
C) Store manager
D) Buyer
E) Department manager
35) Which of the following statements is a drawback of incentives?
A) Most employees dislike incentives.
B) It decreases organizational commitment.
C) It may cause employees to ignore other work tasks and obligations.
D) Incentives work when standard pay is low.
E) Most employees believe that incentives are mere tokens from the management, not really an
appreciation of their performance.
36) During a management trainee orientation, the HR Manager showed a chart that illustrated who
the CEO, CMO, and CFO were, what their responsibilities were, and who reported up to them.
This chart illustrated the
A) corporate procedures.
B) corporate structure.
C) organization structure.
D) pricing policy.
E) human resource planning.
37) As a new employee of an office supply superstore, Kevin has been told he will receive
structured training. What does this mean?
A) Kevin will learn from his mistakes by performing his job in a store.
B) Kevin will be fired if he makes a mistake once he is at the job site.
C) Kevin will be in the initial training process for at least one year.
D) Kevin will acquire basic skills and knowledge needed to do his job.
E) Kevin will take a written test to determine if he has the skills needed to do the job.
38) On the first day of his new job, Mackey learned the company policies, basic selling skills, and
stockroom procedures with the use of videos, audio-visual presentations, and manuals. What type
of training is Mackey receiving in this scenario?
A) Blended approach
B) Socialization training
C) Structured training program
D) On-the-job training
E) Etiquette training
39) In ________, new employees work in specific jobs under the direct supervision of their
managers.
A) the blended approach
B) a structured training program
C) on-the-job training
D) an orientation program
E) etiquette training
40) A retailer can reduce employee turnover by
A) increasing its dollar sales.
B) reducing its fixed costs.
C) paying all employees the same.
D) building an atmosphere of mutual commitment.
E) implementing a straight salary compensation plan.
41) Sales are poor at the Kirt’s Bathing Suit Store in Alaska, and Kirt’s sales team is suffering from
low morale. Which of the following will best help Kirt to increase his sales team’s morale?
A) Reduce the quantity of incoming merchandise.
B) Fire non-performing sales people.
C) Recruit an efficiency consultant to identify the problem.
D) Reward performing sales people.
E) Tweak the marketing tactics.
42) Employment discrimination on which of the following basis is legal in the United States?
A) Gender
B) Age
C) Educational qualification
D) Religious beliefs
E) Sexual orientation
43) Which of the following statements is true of laws relating to compensation?
A) They require that firms pay the same work pay for men and women.
B) They require that firms pay the same work pay for all employees of a department.
C) They protect the organization’s investment on its employees.
D) They place restrictions on the salaries drawn by the top management.
E) They monitor the financial investments made by the top management of the organization.
44) Nina’s office was made up of a mostly all male staff. All worked well together and no one
really even noticed the skewed ratio until one day when one of the men downloaded a lewd
screensaver for all to see when they arrived in the office. Nina was infuriated. This situation can be
considered
A) a violation of employee privacy.
B) political individualism.
C) an instance of sexual harassment.
D) an unethical hiring practice.
E) an unethical instance of distributive justice.