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1. _____ is the desire that exists within a person that causes that individual to act.
a.
Centration
b.
Motivation
c.
Regularization
d.
Inhibition
ANSWER:
b
2. Who developed the earliest need-based theory of human motivation?
a.
Frederick Herzberg
b.
Lyman Porter
c.
Abraham Maslow
d.
Carl Jung
ANSWER:
c
3. In the context of Abraham Maslow’s hierarchy of needs theory, which of the following needs will a person strive to
fulfill first?
a.
Physiological needs
b.
Safety and security needs
c.
Self-actualization needs
d.
Belonging and love needs
ANSWER:
a
4. In the context of Abraham Maslow’s hierarchy of needs theory, the highest human need is the need for _____.
a.
self-esteem
b.
safety
c.
self-actualization
d.
love
ANSWER:
c
5. Maria is an employee at Lyric Inc. Her colleagues describe her as friendly and gregarious. She is a good team player
and is always willing to help others. She also likes socializing with her colleagues outside of work. In the context of David
McClelland’s three needs theory, Maria is most likely driven by a need for _____.
a.
affiliation
b.
achievement
c.
power
d.
self-actualization
ANSWER:
a
6. According to Abraham Maslow, soon after a person has fulfilled his or her safety needs, he or she will strive to fulfill
his or her _____.
a.
physiological needs
b.
belonging needs
c.
actualization needs
d.
esteem needs
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ANSWER:
b
7. Frederick Herzberg proposed _____.
a.
the hierarchy of needs theory
b.
expectancy theory
c.
equity theory
d.
the motivation/hygiene theory
ANSWER:
d
8. In the context of the motivation/hygiene theory, which of the following is considered a hygiene factor?
a.
Achievement
b.
Recognition
c.
Responsibility
d.
Salary
ANSWER:
d
9. In the context of the motivation/hygiene theory, which of the following is considered a motivator?
a.
Interpersonal relationships
b.
Recognition
c.
Working conditions
d.
Supervision
ANSWER:
b
10. In the context of the motivation/hygiene theory, which of the following is considered a motivator?
a.
Company policy
b.
Administration
c.
Advancement
d.
Salary
ANSWER:
c
11. In the context of the two-factor theory, which of the following needs of employees do motivators primarily try to
fulfill?
a.
Physiological needs
b.
Belonging needs
c.
Safety needs
d.
Esteem needs
ANSWER:
d
12. According to Frederick Herzberg’s motivation/hygiene theory, which of the following is a hygiene factor?
a.
Advancement
b.
Recognition
c.
Responsibility
d.
Supervision
ANSWER:
d
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13. _____ is defined as the perceived fairness of what a person does compared with what the person receives for doing it.
a.
Equity
b.
Motivation
c.
Loyalty
d.
Association
ANSWER:
a
14. In the context of equity theory, which of the following is considered an input?
a.
Educational level
b.
Pay
c.
Prestige
d.
Recognition of achievement
ANSWER:
a
15. In the context of equity theory, which of the following is considered an outcome?
a.
Loyalty
b.
Prestige
c.
Experience
d.
Productivity
ANSWER:
b
16. The term _____ refers to the unwritten expectations employees and employers have about the nature of their work
relationships.
a.
employment contract
b.
psychological contract
c.
noncompete agreement
d.
effort-performance linkage
ANSWER:
b
17. Which of the following is an intangible item in a psychological contract?
a.
Salary
b.
Employee productivity
c.
Attendance
d.
Fair treatment
ANSWER:
d
18. Identify an intangible item in a psychological contract.
a.
Salary
b.
Productivity
c.
Attendance
d.
Loyalty
ANSWER:
d
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19. Which of the following is a tangible item in a psychological contract?
a.
Loyalty
b.
Fair treatment
c.
Job security
d.
Employee productivity
ANSWER:
d
20. Which of the following is used by employers to address the issue of job satisfaction among employees?
a.
Competitive bargaining
b.
Distributive bargaining
c.
A whistleblower survey
d.
An attitude survey
ANSWER:
d
21. Which of the following is a direct cost of absenteeism?
a.
Replacement for absent workers
b.
Overstaffing to cover anticipated absences
c.
Replacement training
d.
Lost productivity with replacement
ANSWER:
a
22. Which of the following represents an employer applying the principles of positive reinforcement to address
absenteeism?
a.
An employer conducting a company-wide session on the company’s leave policy
b.
An employer issuing a written warning to an employee for taking too many unplanned leaves
c.
An employer giving gift vouchers to employees for meeting attendance standards
d.
An employer offering personal counseling to employees who do not meet the attendance standards of the
company
ANSWER:
c
23. Symphony Inc. has a culture of open communication and trust. Joel, an HR Manager at the company, wants to assess
the level of current employee satisfaction and engagement. He has planned to conduct interviews with the employees of
the organization to gain valuable insights on what motivates them to continue working for the organization. Which of the
following types of interviews should Joel conduct in this scenario?
a.
A job interview
b.
An appraisal interview
c.
A stay interview
d.
An exit interview
ANSWER:
c
24. Argon Inc. has had a high turnover rate in the past quarter. The HR managers of the company want to assess and
manage employee work attitudes to ensure good retention. Which of the following tools is most likely to help the HR
managers evaluate employees’ feelings and beliefs about their jobs and the organization?
a.
An attitude survey
b.
A Gantt chart
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c.
A competency map
d.
An organizational chart
ANSWER:
a
25. The average time lost per absent employee during a specified period of time is known as the _____.
a.
inactivity rate
b.
incidence rate
c.
severity rate
d.
compensation rate
ANSWER:
c
26. The number of absences per 100 employees each day is known as the _____.
a.
inactivity rate
b.
incidence rate
c.
severity rate
d.
compensation rate
ANSWER:
b
27. Which of the following statements is true of employee turnover?
a.
Functional turnover occurs when key individuals of an organization leave.
b.
Job dissatisfaction is a common cause of involuntary turnover.
c.
The turnover of poorly performing individuals is considered functional.
d.
Organizations have little to no control over involuntary turnover.
ANSWER:
c
28. Which of the following best exemplifies involuntary turnover?
a.
Jane quit her job because a project she devoted a lot of effort to got shelved.
b.
Stephan loved his job, but he quit when he noticed that many of his coworkers were being laid off.
c.
Mary announced her retirement a day after her 40th birthday.
d.
Jaylynn was terminated because he performed poorly on an important project.
ANSWER:
d
29. Which of the following best exemplifies voluntary turnover?
a.
Liu, a student intern at CL Corp., left the organization after her internship period.
b.
Paul, an employee of NML Corp., was fired because he failed to comply with certain company policies.
c.
Karen, an employee in the HR department of Woston Inc., was asked by her manager to resign from her job
because of her deteriorating performance.
d.
Gerald, an employee at Jayward Inc., left the organization because he was denied a promotion twice despite
being good at his job.
ANSWER:
d
30. Alan, an HR manager at Iris Inc., wants to measure the absenteeism rate of the company. Which of the following
equations should Alan use to accurately compute the absenteeism rate?
a.
Absenteeism rate = (average number of employees) × (number of workdays) × 100 / (number of persons –
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days lost through job absence during period)
b.
Absenteeism rate = (number of persons – days lost through job absence during period)/([average number of
employees] × [number of workdays]) x 100
c.
Absenteeism rate = number of employee separations during the year × 100 / total number of employees at
midyear
d.
Absenteeism rate = total number of employees at midyear × 100 / number of employee separations during the
year
ANSWER:
b
31. Mark was terminated by his company because of his poor client management skills, which resulted in the company
losing one of its major clients. Mark’s termination best exemplifies _____.
a.
involuntary turnover
b.
negative turnover
c.
uncontrollable turnover
d.
dysfunctional turnover
ANSWER:
a
32. Charu, an efficient waitress at a family restaurant, consistently gets low tips from customers. She announces that she is
quitting her job to take another job at a newly opened casino. This best exemplifies _____.
a.
voluntary turnover
b.
functional turnover
c.
involuntary turnover
d.
positive turnover
ANSWER:
a
33. Churn refers to the practice of hiring _____.
a.
new employees while laying off others
b.
only those workers who have more than five years of prior experience in a similar industry
c.
only when the need arises rather than hiring on an ongoing basis
d.
workers on a short-term contract basis
ANSWER:
a
34. BioLabs Inc. is in the process of laying off 10 percent of its shipping and receiving employees. At the same time, it is
hiring new hourly staff. This scenario best exemplifies _____.
a.
churn
b.
licensing
c.
takeover
d.
franchising
ANSWER:
a
35. Fifty employees of GlowFax Inc. quit the company this year. Thirty-five of the employees left by choice, while the
rest were asked to leave either because of poor performance or high absenteeism. The total number of employees in the
company was 270 in January. The midyear employee count was 250, and the number became 220 at the end of the year.
What is GlowFax’s turnover rate for this year?
a.
50 percent
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b.
35 percent
c.
25 percent
d.
20 percent
ANSWER:
d
36. Lumina Inc. had 4,900 employees at the beginning of 2014. During the first half of the year, the company had no
attrition. The company’s profits were high, and its training and orientation programs were efficient. It continued to hire at
a healthy pace and had 5,000 employees at midyear. However, in the second half of the year, 200 employees were laid off
and no new hiring took place. What is Lumina’s turnover rate for 2014?
a.
50 percent
b.
25 percent
c.
4 percent
d.
2 percent
ANSWER:
c
37. At Piaffique Inc., 15 employees quit and an additional 10 employees were fired for poor performance this year. The
company’s midyear employee count was 50. What is Piaffique’s turnover rate for this year?
a.
10 percent
b.
20 percent
c.
30 percent
d.
50 percent
ANSWER:
d
38. Rosario quit CoverCorp Inc. without completing a high-priority project that she was handling. The four remaining
members of her team had to work overtime to complete the project, and they demanded adequate compensation to justify
their extra hours of work. In this scenario, the amount subsequently paid to them best exemplifies _____.
a.
separation costs
b.
vacancy costs
c.
replacement costs
d.
training costs
ANSWER:
b
39. Which of the following is a replacement cost that is caused by turnover in a company?
a.
Cost of training materials
b.
Employee referral fees
c.
Unemployment expenses
d.
Accrued vacation expenditures
ANSWER:
b
40. Carlos, the HR Director of a large paper manufacturing company, is studying the company’s turnover costs. He has
accounted for most of the easily calculable costs, but he is concerned about the hidden costs of turnover. Given this
information, which of the following is most likely a cause of concern for Carlos?
a.
Missed project deadlines
b.
Employee referral fees
c.
Preemployment medical expenses
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d.
Accrued vacation expenditures
ANSWER:
a
41. Brooke left Mauve Inc. after working in the company for five years. On her last day at work, Lucas, the company’s HR
Manager, conducted an interview with Brooke asking her to explain the reasons for leaving the organization. Brooke told
Lucas that she did not see any career growth in the organization. After the interview, Lucas summarized this information
and communicated it with Brooke’s managers. Which of the following types of interviews did Lucas conduct in this
scenario?
a.
An appraisal interview
b.
A job interview
c.
An exit interview
d.
A stay interview
ANSWER:
c
42. Many talented teachers at Sunnydale High School resigned from their jobs in the past year. The Administrative
President of the school board is in a fix and is unable to identify a reason for this attrition. The school pays competitive
wages to its teachers and even gave them a pay hike recently. In this scenario, which of the following points should
Sunnydale’s Administrative President keep in mind when devising a solution to the problem?
a.
Money is the main reason people leave, so the school administration should give its employees a bonus along
with the pay hike.
b.
When pay is competitive, other job factors become more important than the pay employees receive.
c.
Employees are bound to leave, and there is not much employers can do to retain them.
d.
Teachers usually leave their jobs because of involuntary turnover, so pay is not a major factor in their
retention.
ANSWER:
b
43. Which of the following is true of the disciplinary approach used by organizations to address absenteeism?
a.
Employees who are absent in excess of policy limits receive warnings if their attendance does not improve.
b.
Employees who meet attendance standards are given bonuses, recognition, and time off.
c.
Employees can use days from their paid-time-off accounts at their discretion for illness, personal time, or
vacation.
d.
Employees must manage their own attendance unless they abuse that freedom.
ANSWER:
a
44. In its most basic sense, _____ involves the positive feelings and evaluations individuals have about their employment.
a.
emotional intelligence
b.
voluntary turnover
c.
due diligence
d.
job satisfaction
ANSWER:
d
45. In a(n) _____, individuals are asked to explain their reasons for leaving an organization.
a.
situational interview
b.
stay interview
c.
appraisal interview
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d.
exit interview
ANSWER:
d
46. A financial services firm conducted an attitude survey and asked its employees to respond candidly to the survey
questions. It was found that although employees were generally satisfied with their pay, they were dissatisfied with the
organization’s management style, promotion practices, and training programs. To manage these concerns, it is best
recommended that HR _____.
a.
work toward identifying the problems pointed out by individual employees and ensure that their respective
managers address the concerns immediately
b.
announce the positive results of the survey while beginning to work in private on solutions to the problems
revealed in the survey
c.
hold group meetings with the employees to convey the positive and negative survey results and use the results
in a strategic manner to improve the organization
d.
reconduct the survey and ask the employees to reveal their identities this time because it is important to
identify the root of the problems to resolve them effectively
ANSWER:
c
47. _____ can be calculated as the percentage of workers who remain in a firm from one point in time to another point in
time.
a.
Retention rates
b.
Turnover rates
c.
Absenteeism ratios
d.
Productivity rates
ANSWER:
a
48. Which of the following is the first step in the process of managing retention?
a.
Measurement and assessment
b.
Management intervention
c.
Evaluation and follow-up
d.
Career development and planning
ANSWER:
a
49. Which of the following best describes presenteeism?
a.
It is when an employee believes in and accepts organizational objectives and wants to remain employed at a
company.
b.
It is when an employee’s thoughts and behaviors are focused on his or her work.
c.
It is when an employee comes to work even when he or she is not well enough to.
d.
It is when an employee fails to report for work as scheduled.
ANSWER:
c
50. How does an exit interview help an organization in its employee retention efforts?
a.
It provides managers and supervisors with information for improving company efforts to reduce employee
turnover.
b.
It provides managers and supervisors with information to increase voluntary turnover.
c.
It provides managers and supervisors with information to minimize functional turnover.
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d.
It provides managers and supervisors with information to manage the company’s intangible assets and help
increase its incidence rate.
ANSWER:
a
51. According to Abraham Maslow’s hierarchy of needs theory, a person strives to satisfy his or her higher order needs
first.
a.
True
b.
False
ANSWER:
False
52. Motivation is a goal-directed drive, and the process seldom occurs in a void.
a.
True
b.
False
ANSWER:
True
53. According to the two-factor theory, addressing hygiene factors in an organization ensures that employees are
motivated to work harder.
a.
True
b.
False
ANSWER:
False
54. According to the two-factor theory, interpersonal relationships are considered motivators.
a.
True
b.
False
ANSWER:
False
55. According to equity theory, outcomes received by a person can be either tangible or intangible.
a.
True
b.
False
ANSWER:
True
56. One of the determinants of employees’ willingness to exert effort is the degree to which they value the rewards offered
by the organization.
a.
True
b.
False
ANSWER:
True
57. The performance–reward linkage described in expectancy theory refers to employees’ beliefs that working harder will
lead to better performance.
a.
True
b.
False
ANSWER:
False
58. Psychological contracts between employers and employees are similar across cultures.
a.
True
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b.
False
ANSWER:
False
59. Employee productivity is a tangible aspect of psychological contracts.
a.
True
b.
False
ANSWER:
True
60. Employers can properly evaluate and manage employee work attitudes by regularly surveying employees.
a.
True
b.
False
ANSWER:
True
61. Older employees tend to have lower job satisfaction than younger employees.
a.
True
b.
False
ANSWER:
False
62. Higher unemployment rates usually mean more dissatisfied employees in the workforce.
a.
True
b.
False
ANSWER:
True
63. Customer dissatisfaction is a direct cost of absenteeism.
a.
True
b.
False
ANSWER:
False
64. A no-fault policy in organizations allows employees to manage their own attendance.
a.
True
b.
False
ANSWER:
True
65. Severity rate is defined as the percentage of time lost to absenteeism.
a.
True
b.
False
ANSWER:
False
66. Work rule violation is the most common cause of voluntary turnover.
a.
True
b.
False
ANSWER:
False
67. Functional turnover occurs when key individuals leave an organization, often at crucial times.
a.
True
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b.
False
ANSWER:
False
68. Functional turnover represents a positive change for organizations.
a.
True
b.
False
ANSWER:
True
69. HR actions such as information sharing tend to increase individuals’ turnover intentions.
a.
True
b.
False
ANSWER:
False
70. In the context of turnover costs incurred by a company, vacancy costs primarily include supervisory time, pay rates to
prevent separations, and exit interview time.
a.
True
b.
False
ANSWER:
False
71. Higher pay and benefits are often the best solution to employee engagement.
a.
True
b.
False
ANSWER:
False
72. Decreased customer service is a hidden cost of turnover.
a.
True
b.
False
ANSWER:
True
73. Paid orientation time is a separation cost involved in turnover.
a.
True
b.
False
ANSWER:
False
74. Loyalty is a reciprocal exchange between organizations and their workers.
a.
True
b.
False
ANSWER:
True
75. Money is the main reason people leave organizations
a.
True
b.
False
ANSWER:
False
76. Loyal employees report less job tension than employees whose loyalty is low.
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terms of continuous skill improvement and increased productivity, reasonable length of service, and extra
efforts and results when needed.
a.
True
b.
False
ANSWER:
False
77. An example of coworker-directed organizational citizenship behavior is cheering on a colleague for receiving a
reward.
a.
True
b.
False
ANSWER:
True
78. Trust is a visible reflection of the ethical culture of an organization.
a.
True
b.
False
ANSWER:
True
79. Replacement training is a direct cost of absenteeism.
a.
True
b.
False
ANSWER:
False
80. The intangible rewards that people receive for working come in the form of pay, incentives, and benefits.
a.
True
b.
False
ANSWER:
False
81. What are the three major factors that affect individual performance in organizations?
ANSWER:
The three major factors that affect how an individual performs are as follows: (1) ability to do the work, (2)
effort expended, and (3) organizational support. The relationship of those factors is broadly defined in
management literature as follows: Performance (P) = Ability (A) × Effort (E) × Support (S)
82. In the context of Frederick Herzberg’s motivation/hygiene theory, explain how motivators and hygiene factors interact
to affect employee performance.
ANSWER:
Frederick Herzberg’s motivation/hygiene theory assumes that one group of factors, motivators, accounts for
increases in individual motivation because of enrichment and other positive work characteristics.
Alternatively, hygiene factors can cause employees to become dissatisfied with work if these basic
expectations are not adequately addressed; however, hygiene factors do not directly motivate employees.
The implication of Herzberg’s research for management and HR practices is that even when managers
carefully consider and address hygiene factors to avoid employee dissatisfaction, employees may not be
motivated to work harder. The two-factor theory suggests that only motivators lead to greater effort from
employees and thereby enhance employee performance.
83. What are the usual employee and employer expectations in a psychological contract?
ANSWER:
Employers are expected to provide employees with competitive compensation and benefits, flexibility to
balance work and home life, and career development opportunities. Employees are expected to contribute in
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92. What is motivation? Describe some common ways in which organizations try to motivate their employees.
84. Define organizational commitment.
ANSWER:
Organizational commitment is the degree to which employees believe in and accept organizational objectives
and want to remain employed at a company.
85. Describe the main differences between engaged and disengaged employees in an organization.
ANSWER:
Engaged employees put in extra effort and are highly involved in their jobs. They employ both effort and
thought in their work, and they are active and busy. They are also fully invested in their jobs.
Disengaged employees, on the other hand, simply put in time but do not do their best work. They are
apathetic, do only their basic jobs, and react only to pay.
86. Compare the various types of absenteeism.
ANSWER:
Employees can be tardy or absent from work for several reasons. Clearly, some absenteeism is inevitable
because of illness and other personal reasons. Though absences such as those that are health related are
unavoidable and understandable, they are still very costly. Many employers have sick leave policies that allow
employees a certain number of paid days each year for involuntary absences. However, much absenteeism is
avoidable, or voluntary. Absence can also be planned (the least disruptive), unplanned, incidental (less than a
week), or extended (lasting beyond a week).
87. In the context of addressing absenteeism, briefly explain no-fault policies.
ANSWER:
With a no-fault policy, the reasons for absences do not matter, and employees must manage their own
attendance unless they abuse that freedom. Once absenteeism exceeds normal limits, then disciplinary action
up to and including termination of employment can occur.
88. Distinguish between functional turnover and dysfunctional turnover.
ANSWER:
Functional turnover occurs when lower-performing, less reliable, and/or disruptive individuals leave an
organization. Dysfunctional turnover occurs when key individuals leave, often at crucial times.
89. How can an optimal amount of turnover benefit a company?
ANSWER:
Not all turnover is negative. Losing low performers should be considered positive. There may be an “optimal”
amount of useful turnover necessary to replace low performers and add part-time or contract workers with
special capabilities to improve workforce performance.
90. What is an exit interview?
ANSWER:
One widely used means for assisting retention assessment efforts is the exit interview in which individuals
who are leaving an organization are asked to explain their reasons. HR must regularly summarize and analyze
the data by category (e.g., reasons for leaving, department, length of service) to provide managers and
supervisors with information for improving company efforts.
91. How can employee engagement be enhanced throughout a company?
ANSWER:
Employee engagement can be enhanced by emphasizing the company’s culture and practices during
interviews, having managers support this culture in a consistent manner (such as during orientation), and
providing employees with a supportive group of coworkers who make them feel part of the team. Ensuring
that workers have the proper tools and equipment, showing appreciation for their work, listening to their
concerns and suggestions, and recognizing their contributions are all inexpensive, yet effective, ways to boost
employee engagement. Surprisingly, higher pay and benefits are rarely the solution to engagement, despite
their possible impact on improving satisfaction. Engagement is more about building an emotional connection
between workers and their employers that increases their enthusiasm and involvement in their jobs.
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ANSWER:
Motivation is the desire that exists within a person that causes that individual to act.
Organizational values and practices may be important tools that can be used to motivate employees. A recent
survey determined that being appreciated and respected in the workplace, being able to utilize personal
capabilities, and liking the job were the top values that motivated workers. Other motivational issues included
pay, employment security, good managers/leaders, and positive HR practices such as performance feedback,
training, and benefits.
93. How has the psychological contract between employers and employees changed over time?
ANSWER:
Employees usually expect to exchange their efforts and capabilities for secure jobs that offer competitive pay,
desirable benefits, opportunities to learn and develop, fair treatment, and career progression, among many
other positive factors. But as some organizations have responded to business challenges by downsizing or
employing more contingent workers, long-service employees may question whether they should remain loyal
to and stay with their employers. In other words, the contract has been altered in many organizations.
94. What is the relationship between job satisfaction and organizational commitment?
ANSWER:
Job satisfaction influences organizational commitment, and both of these factors can affect employee retention
and turnover. Levels of job satisfaction and organizational commitment are, in part, determined by the
interaction of the individual and the work environment.
95. Describe three methods used to control absenteeism in organizations.
ANSWER:
Employers use methods such as the following to address absenteeism:
• Disciplinary approach: People who are absent in excess of policy limits receive warnings and more
severe discipline if their attendance does not improve.
• Positive reinforcement: Positive reinforcement includes actions such as giving bonuses, recognition,
time off, and other rewards for meeting attendance standards.
• Combination approach: A combination approach ideally rewards desired behaviors and punishes
undesired behaviors. This carrot-and-stick approach uses discipline to punish offenders and various
rewards to recognize employees with outstanding attendance. For instance, employees with perfect
attendance may receive incentives of travel and other rewards. Those with excessive absenteeism
would be disciplined.
96. Describe some causes of voluntary turnover.
ANSWER:
Common voluntary turnover causes include job dissatisfaction, pay and benefits levels, supervision,
geography, and personal/family reasons. Alternative employment opportunities may lead to turnover for
individuals, especially those in highly specialized jobs such as IT.
97. Describe five factors that are included in calculating turnover costs.
ANSWER:
Factors to be included in calculating turnover costs include the following:
• Separation costs: HR staff and supervisory time, pay rates to prevent separations, exit interview time,
unemployment expenses, legal fees for challenged separations, accrued vacation expenditures,
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