45) Norman was recognized as the best Albertons’ employee of the year. His name, along with the
names of other winners, is engraved on a plaque that is prominently displayed in the store. This is
an example of
A) job enrichment.
B) an intrinsic reward.
C) management by objective.
D) an extrinsic reward.
E) management by exception.
46) Which of the following is an example of extrinsic reward?
A) Meaningful work
B) Promotion
C) Team spirit
D) Positive environment
E) Open communication
47) Which of the following is an intrinsic reward?
A) Employee of the year award
B) Bonus
C) Promotion
D) Meaningful work
E) Commission
48) Mercer was getting bored with his job as a sales clerk in the home department until his
manager gave him responsibility for training a new salesperson in his area, which he likes to do.
This is an example of
A) management by objective.
B) the unity of command principle.
C) an intrinsic reward.
D) an extrinsic reward.
E) management by exception.
49) ________ is the redesign of a job to include a greater range of tasks and responsibilities.
A) Intrinsic rewards
B) Extrinsic rewards
C) Job enrichment
D) Job description
E) Job engagement
50) Angel’s oldest associate, Betty, complained that she was bored and was thinking of looking for
a different job. Instead of letting her go, Angel decided to utilize her life experience and asked
Betty if she would be responsible for organizing departmental social events and the weekly visual
displays. This suggestion, giving Betty a task she would enjoy doing, would be an example of
A) intrinsic rewards.
B) extrinsic rewards.
C) job enrichment.
D) job description.
E) job engagement.
51) Which of the following is the major disadvantage of a straight salary plan?
A) It is expensive to administer.
B) It increases a retailer’s variable costs.
C) Many employees have trouble understanding a straight salary plan.
D) It makes it very difficult for a retailer to assign employees to activities.
E) It does not directly relate pay incentives to productivity.
52) Nick works for an electronics store. His entire compensation is based on an 8 percent
commission he is paid on all the sales he makes minus merchandise returns. This is an example of
a(n)
A) straight salary plan.
B) quota-bonus plan.
C) equity-based compensation.
D) incentive compensation plan.
E) cafeteria plan.
53) Which of the following is a disadvantage of incentive compensation plans?
A) Employees know that a rise in productivity will have no impact on their compensation.
B) Employees are taxed heavily on their income from incentive plans.
C) Employers are taxed heavily on their expenditure incurred through incentive plans.
D) Employees don’t develop loyalty to their employers when incentive plans are practiced.
E) Employers are unable to increase employee productivity while following incentive plans.
54) Which of the following statements is true of drawing accounts?
A) It is used to provide a steadier income for salespeople who work on commission.
B) It is used to motivate employees who receive a straight salary.
C) It is used to attract salespeople who are willing to sell low-margin items.
D) It is used to provide an additional income for full-time sales people.
E) It is used to pay employees for delivering good customer service.
55) A ________ is a target level used to motivate and evaluate performance.
A) quota
B) straight commission
C) compensation plan
D) group goal
E) draw
56) In order to motivate its employees, Dillards department store has set performance goals for its
employees. If an employee exceeds his or her daily performance goals, he or she will receive a
bonus. This compensation method is called a
A) straight bonus plan.
B) straight salary plan.
C) task-oriented plan.
D) equity-based plan.
E) quota-bonus plan.
57) A quota-bonus plan is applicable when
A) employee performance exceeds the quota.
B) performance management is outsourced.
C) an employee has a salary plan based solely upon performance.
D) productivity is poor.
E) there are no other incentives.
58) The Fair Labor Standards Act of 1938 does all of the following except
A) limit maximum work hours.
B) set child labor standards.
C) set overtime-pay provisions.
D) establish minimum wages.
E) prohibit discrimination.
59) The ________, now enforced by the Equal Employment Opportunity Commission (EEOC),
prohibits unequal pay for men and women who perform equal work or work of comparable work.
A) Fair Labor Standards Act
B) Equal Pay Act
C) Disparate Impact
D) Discrimination and Employment Act
E) Americans with Disabilities Act
60) ________ is the process by which a person attempts to influence others to accomplish a
common goal or task.
A) Idiosyncrasy credit
B) Multipolarity
C) Leadership
D) Post hegemony
E) Tripolarity
61) ________ leaders make all decisions on their own and then announce them to employees.
A) Chaotic
B) Autocratic
C) Democratic
D) Persuasive
E) Transformational
62) Anita is a store manager who wants no employee input when she is making decisions about
how the store should be operated. She prefers to make all the decisions by herself. What kind of a
manager is Anita?
A) Chaotic manager
B) Democratic manager
C) Autocratic manager
D) Persuasive manager
E) Transformational manager
63) An autocratic manager would be most likely to
A) ask employees if anyone wanted to volunteer to work overtime.
B) ask employees for their opinions on store design.
C) consult employees before scheduling a storewide sale.
D) ask employees which department they would like to work in.
E) tell employees they will have to work late Friday night.
64) As a(n) ________ store manager, Dina treats her employees as equals and asks for their input
when she is making a decision about whether to stay open late during the Memorial Day weekend,
stock extra inventory for Valentine’s Day, or any other decision that will directly affect her
employees.
A) chaotic
B) democratic
C) autocratic
D) persuasive
E) transformational
65) Which of the following types of leaders gets people to transcend their personal needs for the
sake of the group or the organization?
A) Transformational leaders
B) Democratic leaders
C) Autocratic leaders
D) Chaotic leaders
E) Persuasive leaders
66) ________ create enthusiasm in their employees through their personal charisma.
A) Chaotic leaders
B) Democratic leaders
C) Transformational leaders
D) Autocratic leaders
E) Persuasive leaders
67) ________ delegate challenging work to subordinates, have free and open communication with
them, and provide personal mentoring to develop subordinates.
A) Chaotic leaders
B) Autocratic leaders
C) Persuasive leaders
D) Transformational leaders
E) Democratic leaders
68) Mindy manages 300 employees at a Walmart Supercenter. Each day, she leads the employees
in the Walmart cheer, creates excitement, and “goes the extra mile” with her employees and
customers. Shopping in her store is always an enjoyable experience with enthusiastic sales help,
contests, and demonstrations. Mindy is a ________ leader.
A) persuasive
B) autocratic
C) democratic
D) chaotic
E) transformational
69) Connor knew a popular celebrity was planning a shopping spree in his store that day and
needed a personal shopper to accompany her. Normally, Connor plays this role, but he trusted a
reliable store associate to manage the visit. Connor would be available in the store should there be
a problem, but the exciting opportunity was to be handled by the associate. Which of the following
terms best describes Connor?
A) Persuasive leader
B) Autocratic leader
C) Democratic leader
D) Transformational leader
E) Chaotic leader
70) Which of the following statements is true of the use of computer software scheduling systems?
A) The software analyses sales, transactions, and customer traffic for each time period.
B) The software often recommends the use of regular and predictable work hours.
C) The system benefits the employees but has an adverse effect on retailers and customers.
D) The burden of unpredictable scheduling of sales associates is eliminated.
E) The software often recommends the use of full-time employees.
71) ________ entails the activities involved with managing the exterior and interior physical
facilities associated with the store.
A) Inventory maintenance
B) Store turnover
C) Portfolio management
D) Store maintenance
E) Inventory turnover
72) ________ is the inventory loss due to employee theft, shoplifting, mistakes, inaccurate
records, and vendor errors.
A) Obsolescence
B) Profit margin
C) Loss margin
D) Shrinkage
E) Break-even point
73) ________ is the difference between the recorded value of inventory based on merchandise
bought and received and the value of the actual merchandise in stores and distribution centers
divided by retail sales during the period.
A) Loss margin
B) Shrinkage
C) Obsolescence
D) Break-even point
E) Profit margin
74) The accounting records for Sports-R-Us, a superstore targeted at armchair athletes, showed
that it had bought and received $1,830,000 worth of merchandise. An actual count of the
merchandise in the store showed only $1,644,000 worth of merchandise in stock. What other
information is needed to calculate inventory shrinkage?
A) The store’s annual profit
B) The store’s profit margin
C) The store’s current assets
D) The store’s inventory turnover rate
E) The store’s retail sales during the period
75) Which among the following accounts the most for a retailer’s inventory loss?
A) Shoplifting
B) Employee theft
C) Inaccurate records
D) Vendor fraud
E) Logistical gaps
76) What is a retailer’s most effective tool against shoplifting?
A) Unique merchandise
B) Employees
C) Prosecution policies
D) Cash wraps
E) EAS tags
77) What is a job description?
78) What is a behavioral interview?
79) What is the difference between structured program training and on-the-job training?
80) What are extrinsic rewards?
81) What is a quota-bonus plan?
82) Discuss the legal aspects retailers must abide by when hiring and employing people fairly.
83) Explain the differences between an autocratic leader and a democratic leader.
84) Describe EEOC’s guidelines on sexual harassment.
85) What are the approaches a retailer can consider when working to reduce employee theft?
86) Define organization structure.
87) What are some of the major legal and regulatory issues in human resource management in the
retail industry?
1) Equal employment opportunity
2) Compensation
3) Labor relations
4) Employee safety and health
5) Sexual harassment
6) Employee privacy