Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 1
Indicate whether the statement is true or false.
1. In the context of downsizing, employees with survivor syndrome feel extremely proud of keeping their jobs, and their
morale and commitment to the organization increase dramatically.
a.
True
b.
False
2. Interactional justice refers to perceptions that the process used to determine the outcomes that an employee faces was
fair.
a.
True
b.
False
3. A large contingent workforce is the most desirable alternative to recruitment.
a.
True
b.
False
4. Distributive justice is insignificant in determining an employee’s reactions to pay decisions.
a.
True
b.
False
5. The Worker Adjustment and Retraining Notification (WARN) Act requires that employers give at least 60 days’ notice
for a mass layoff.
a.
True
b.
False
6. Providing employees with overtime opportunities is especially beneficial when the increased need for human resources
is short term.
a.
True
b.
False
7. Ethics and law always coincide precisely.
a.
True
b.
False
8. Employees involved in mergers and acquisitions must retain their existing self-identity instead of developing a new
one.
a.
True
b.
False
9. Employee leasing involves an organization paying a fee to a company that provides a pool of employees to the
organization on a temporary basis.
a.
True
b.
False
10. As part of a progressive disciplinary program, a verbal warning given to an employee becomes part of the employee’s
permanent record.
a.
True
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 2
b.
False
Indicate the answer choice that best completes the statement or answers the question.
11. Which of the following is most likely to be an effective retention strategy for a high-tech software company to retain
executive engineers for an extended period of time?
a.
Regularly administering job satisfaction surveys
b.
Increasing job embeddedness
c.
Giving stock options that cannot be exercised for the first 5 years of employment
d.
Reducing the job requirements to make jobs simpler and easier
12. Which of the following statements is true of mergers and acquisitions?
a.
When employees perceive threats to their self-identity, they let go of the identity for job stability.
b.
In order to succeed, organizations must help each employee retain his or her original self-identity.
c.
Organizations must integrate the two firms into one and create a new self-identity for all employees.
d.
Organizations want to encourage the “us versus them“ mentality between merging employees.
13. Which of the following refers to hours worked above the normal 40-hour workweek, for which there is usually a pay
premium?
a.
Voluntary turnover
b.
Overtime
c.
Expatriation
d.
Functional turnover
14. Which of the following factors is most likely a reason for the failure of a merger or acquisition?
a.
The size of the workforce of the acquiring firm was bigger than that of the acquired firm.
b.
The new business was too far from the areas of expertise of the acquiring firm.
c.
The accounting systems of both firms were different.
d.
The parent firm incurred high levels of research-and-development expenditure.
15. Which of the following can be used by an organization when it is possible to plan systematically for a gradual
decrease in the workforce?
a.
Contingent workers
b.
Early retirements
c.
Involuntary terminations
d.
Employee leasing
16. Which of the following statements is true of the job descriptive index?
a.
It is the most commonly used method to assess procedural justice.
b.
It has a single overall measure of job satisfaction.
c.
It assesses satisfaction with specific job aspects such as pay, the work itself, and supervision.
d.
It assesses the contextual performance of employees.
17. A progressive disciplinary plan is an organizational disciplinary program where:
a.
the primary goal is to terminate employees.
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 3
b.
employees are given incentives to engage in desired behavior.
c.
verbal warnings are directly followed by employee suspension.
d.
the severity of punishment increases across the seriousness of the problem.
18. Which of the following statements is true of employing part-time workers in an organization?
a.
Part-time workers are available round the clock and on all days to provide technical support.
b.
Part-time workers increase the labor costs of the organization.
c.
Part-time workers are routinely expected to work less than 20 hours a week.
d.
Part-time workers provide considerable scheduling flexibility to the organization.
19. In the context of layoffs, which of the following refers to the quality of the interpersonal treatment people receive
when a decision is implemented?
a.
Distributive justice
b.
Procedural justice
c.
Interactional justice
d.
Restorative justice
20. Ramon was employed by a software company to work in the print media section of its public relations department.
The management of the company recently laid off the entire print media section, including Ramon, to cut costs. However,
Ramon was not angry about the company’s decision because he believed the decision of the company was objective and
unbiased as all the employees in the print section were terminated. This scenario illustrates _____.
a.
interactional justice
b.
procedural justice
c.
informational justice
d.
restorative justice
21. Which of the following is a difference between leased employees and part-time employees?
a.
Unlike leased employees, part-time employees are usually covered by benefits from the organization.
b.
Unlike part-time employees, leased employees provide considerable scheduling flexibility to the organization
that hires them.
c.
Unlike leased employees, part-time employees reduce the labor costs of an organization.
d.
Unlike part-time employees, leased employees are regularly expected to work less than 40 hours a week.
22. Which of the following refers to the fact that some people stay on their jobs, even when they decide they are unhappy
and should leave?
a.
Job embeddedness
b.
Normative commitment
c.
Affective commitment
d.
Job enrichment
23. Exceptions to the employment-at-will doctrine are inapplicable when:
a.
an individual is terminated because of union activity.
b.
an employee is an objectively documented poor performer.
c.
an employee is discharged for refusing to commit a crime.
d.
an individual has an implied contract guaranteeing employment.
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 4
24. Which of the following statements is true of stock options?
a.
Employees who are given stock options are legally bound to sign a noncompete clause.
b.
The stock-option price for employees is higher than the selling price of the stock when the option is issued.
c.
They give employees the right to purchase a certain number of shares of stock at a given price.
d.
They give employees the opportunity to be part of the company’s inventory management.
25. In the context of a progressive disciplinary program of an organization, which of the following is a temporary layoff,
usually with pay, when there is an ongoing investigation?
a.
Termination
b.
Suspension
c.
Disbanding
d.
Rightsizing
26. Which of the following is a dimension of interactional justice that refers to the extent to which the decision maker of a
layoff decision provides details about the rules used to make the decision and how they were applied?
a.
Interpersonal justice
b.
Informational justice
c.
Procedural justice
d.
Distributive justice
27. Which of the following is a major cause for involuntary turnover in an organization?
a.
Lack of job complexity
b.
Poor performance of an individual
c.
High job embeddedness
d.
Poor rapport between co-workers
28. Voice, a critical dimension of procedural justice, refers to the perception that:
a.
the rules used to make a decision were applied the same way to everyone involved.
b.
the person applying the rules to make a decision had no vested interest in the outcome of the decision.
c.
the rules used to make a decision conform to prevailing standards of ethics and morality.
d.
the person affected by a decision had some control over the outcome in the decision.
29. Beth, a new assistant manager at one of the branches of Scroll Bank, is unhappy with her job because she was not told
during her job interview that she would be responsible for answering phone calls. Moreover, she claims that many of the
workplace facilities mentioned during her interview are not really present. As a result, she is resigning from her job.
Which of the following employee retention strategies should Scroll Bank use to avoid similar situations in the future?
a.
Employee assistance programs
b.
Realistic job previews
c.
Stock options
d.
Cafeteria-style benefits plans
30. According to a study of the effects of rightsizing conducted in the 1990s, the firms where the decline in employment
was less than 5 percent from 1980 to 1994, but the decline in plant and assets during the same period was at least 5
percent greater than the decline in employment were called _____.
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 5
a.
stable employers
b.
employment downsizers
c.
asset downsizers
d.
combination upsizers
31. Saint Mary City Hospital is facing a severe shortage of nurses in some of its departments. Many nurses quit their jobs
recently as they were asked to do tasks that were not included in their job profile. The administration is now hiring new
nursing staff. Which of the following would be the most effective in retaining the new nurses that are hired?
a.
Conducting realistic job previews
b.
Reducing job enrichment
c.
Increasing the normative commitment of the nurses
d.
Increasing job embeddedness
32. Which of the following is a difference between suspension and termination?
a.
Suspension is part of a progressive disciplinary program, whereas termination is not part of a progressive
disciplinary program.
b.
Suspension lasts for a day or for a few weeks, whereas termination marks the end of the employment
relationship.
c.
Suspension is the first step in most progressive disciplinary programs, whereas termination is the last step in
most progressive disciplinary programs.
d.
Suspension invariably leads to legal problems for an employer, whereas termination rarely leads to legal
problems for an employer.
33. Which of the following is a job-related factor that may lead to job dissatisfaction?
a.
Job complexity
b.
Ties in the community
c.
Individual genetic predisposition being satisfied or dissatisfied
d.
Affective commitment to a job
34. Cinergy Inc., a Midwestern gas and electric utility company, needs to reduce its workforce over the next 2 years. The
company is offering employees who leave the firm before the age of 65 a bonus equivalent to 2 weeks’ pay for every year
of employment with Cinergy Inc. In the given scenario, Cinergy Inc. is:
a.
increasing job embeddedness.
b.
encouraging voluntary early retirement.
c.
providing stock options to employees.
d.
implementing an involuntary turnover strategy.
35. In the context of downsizing, which of the following describes employees who feel guilty over keeping their jobs
when others lost their jobs?
a.
The glass ceiling illusion
b.
Protagonist syndrome
c.
Survivor syndrome
d.
The victim mentality
36. Which of the following is often used with new employees as a means of socializing them in their new job roles and is
effective in reducing turnover?
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 6
a.
A stock-option plan
b.
Job enrichment
c.
A realistic job preview
d.
Internal equity
37. Organizational citizenship behaviors include employee behaviors:
a.
that are formally required as part of an employee’s job.
b.
that are beneficial to the organization.
c.
that are recognized by the job descriptive index.
d.
that increase job embeddedness.
38. Which of the following exceptions to the employment-at-will doctrine protects whistle-blowers?
a.
The Taft–Hartley Act exception
b.
The due process exception
c.
Public-policy exception
d.
Breach-of-good-faith exception
39. In the context of dealing with increased demand for workers, which of the following involves an organization paying a
fee to a company that provides a pool of workers who are available on a temporary basis?
a.
Rightsizing
b.
An internship
c.
Employee leasing
d.
A part-time contract
40. Voluntary turnover occurs when:
a.
employees choose to leave the organization for a variety of reasons.
b.
a facility is closed and all of its workers are put out of work.
c.
an underperforming employee is laid off.
d.
managers choose to leave job vacancies unfilled.
41. John, an executive at a top investment firm, often gets into heated arguments with his boss over their differing views
on how to best execute projects. They also come into conflict with each other because of their different working styles. In
this scenario, John is most likely to be dissatisfied with his job because of:
a.
his affective commitment to the firm.
b.
the challenging nature of his job.
c.
his relationship with his supervisor.
d.
job enrichment.
42. In the context of the employment-at-will doctrine, an employee who is discharged can sue for wrongful termination if:
a.
the termination is because of union activity.
b.
the employee has a civil right to his or her job.
c.
the employee is terminated for having an ethnocentric attitude.
d.
the termination comes as part of a progressive disciplinary program.
43. In the context of a study of the effects of downsizing conducted in the 1990s, the firms where changes in employment
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 7
from 1980 to 1994 fell between plus and minus 5 percent were called _____.
a.
stable employers
b.
employment downsizers
c.
asset downsizers
d.
asset stabilizers
44. The key to successful termination of an employee is _____.
a.
public-policy exception
b.
realistic job previews
c.
documentation
d.
verbal warnings
45. Identify a critical dimension of procedural justice that refers to the perception that a person applying the rules to a
decision had no vested interest in the outcome of the decision.
a.
Consistency
b.
Free from bias
c.
Voice
d.
Information accuracy
46. Adelint Inc., a retail store chain, had been incurring high costs and hence downsized its workforce to increase its
profits. However, the company’s business grew over the next 6 months, and it had to recruit many new employees. The
company hence ended up incurring the usual high infrastructure costs as well as the cost of recruiting the new employees.
Instead of downsizing its workforce, Adelint Inc. could have _____
a.
rightsized its workforce.
b.
outsourced its work.
c.
invested in plant and machinery.
d.
reduced its fixed assets.
47. Wisnet Corp. recently replaced its accounting software with another accounting application provided by a software
development firm. The software development firm provides lifelong services for the new software, so Wisnet Corp. has
laid off those employees whose job profile had been limited to providing technical support for the old software. In the
given scenario, Wisnet Corp. engaged in _____.
a.
involuntary turnover
b.
a progressive disciplinary plan
c.
employee leasing
d.
a job enrichment program
48. Identify a correct statement about mergers and acquisitions.
a.
The failure or success of mergers and acquisitions is assessed by looking at employee turnover.
b.
Successful mergers and acquisitions result in lower research-and-development expenditure.
c.
Aspects of human resource management are not relevant to the success or failure of mergers and acquisitions.
d.
The failure or success of mergers and acquisitions can be assessed by looking at stock prices.
49. Which of the following indicators can be used to assess the success or failure of a merger or acquisition?
a.
Research-and-development expenditures
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 8
b.
HR policies of the newly formed organization
c.
Ethics and values of the newly formed organization
d.
Previous acquisitions of the acquiring firm
50. Which of the following refers to the system of rules and procedures for how and when punishment is administered and
how severe the punishment should be?
a.
Procedural justice
b.
Distributive justice
c.
Discipline
d.
Ethicality
51. In the context of the dimensions of procedural justice, which of the following is the perception that the rules used to
make a decision conform to personal or prevailing standards of morality?
a.
Consistency
b.
Representativeness
c.
Voice
d.
Ethicality
52. Which of the following increases the likelihood of a merger or acquisition being successful?
a.
The HR manager should serve as the center of communications across the merging organizations.
b.
The HR manager must disseminate information in a limited and “need-to-know” manner.
c.
The HR manager should become the final arbiter of which mergers or acquisitions should be pursued.
d.
The HR manager must not be closely involved in the merging process of organizations.
53. Which of the following statements is true of the contingent workforce of an organization?
a.
It refers to the employees who feel guilty over keeping their jobs when others are laid off as part of the
rightsizing process of an organization.
b.
It includes employees who work more than 50 hours a week.
c.
It includes all part-time employees who are employed by an organization to fill in for permanent employees
during peak demand.
d.
It refers to the permanent employees of an organization.
54. Identify a true statement about mergers and acquisitions.
a.
In most cases, mergers and acquisitions result in a shortage of employees.
b.
Mergers and acquisition threaten the self-identity of the employees involved.
c.
The employees of the acquiring firm are seen as allies by the employees of the acquired firm.
d.
Employees involved in mergers and acquisitions should retain their self-identity.
55. Which of the following is the degree to which an employee identifies with a firm and is willing to exert effort on
behalf of the firm?
a.
Organizational commitment
b.
Representativeness
c.
Contextual performance
d.
Job embeddedness
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 9
56. In the context of progressive discipline, which of the following refers to following unacceptable behavior with some
type of negative consequences?
a.
Extinction
b.
Procedural justice
c.
Punishment
d.
Interpersonal justice
57. In the context of the different models of the turnover process, which of the following is an event that can be either
positive or negative but is so profound that it causes an employee to think about the organization, the job, and how he or
she fits with both?
a.
A shock
b.
A realistic job preview
c.
Organizational alienation
d.
Functional turnover
58. An advantage of retaining highly performing employees is that:
a.
it helps in fostering normative commitment in the workplace.
b.
it helps in increasing job embeddedness at the workplace.
c.
it helps in reducing functional turnover.
d.
it helps in avoiding the expenses involved in replacing them.
59. Antony, a content analyst, is dissatisfied with the salary his current organization pays him. Although he finds other
jobs with better compensation packages, he does not take up any of them. This is because taking up a new job would
require him to move to a new neighborhood, which would mean that he would have to move away from his friends. The
given scenario exemplifies _____.
a.
functional turnover
b.
affective commitment
c.
job embeddedness
d.
organizational alienation
60. An organization engages in job enrichment by making employees’ work more challenging and by granting them more
autonomy. These most likely reduce:
a.
the organizational citizenship behaviors of the employees.
b.
the affective commitment of the employees toward the organization.
c.
the turnover rates of the company.
d.
the contextual performance of the employees.
61. Briefly explain the three types of justice that influence an employee’s reaction to layoff.
62. Explain the role of effective human resource management (HRM) during mergers and acquisitions.
63. How do retention strategies address the causes of job dissatisfaction?
64. Describe some of the models of the turnover process.
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 10
65. Briefly explain the steps in a typical progressive disciplinary program.
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 11
Name:
Class:
Date:
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 13
52. a
53. c
54. b
55. a
56. c
57. a
58. d
59. c
60. c
61. Answers will vary. A critical determinant of an employee’s reaction to being laid off is his or her perceptions of the
justice involved in the layoff process. Three types of justice—distributive, procedural, and interactional—seem to be
related to reactions to layoffs.
• Distributive justice refers to perceptions that the outcomes a person faces are fair when compared to the outcomes
faced by others. This type of justice is often important in determining an employee’s reactions to pay decisions,
for example. Most experts believe that these perceptions are based on both the actual outcomes faced (e.g., how
much I am paid, whether or not I lose my job) and the perceptions of what others have contributed.
• Procedural justice refers to perceptions that the process used to determine the outcomes was fair. Thus, an
employee who loses his or her job may be less angry if everyone in a department also lost their jobs or if layoffs
were based on objective and accepted criteria. It is also clear, however, that an employee (or any other observer)
will judge a process to be fair when it leads to an outcome that is favorable.
• Interactional justice refers to the quality of the interpersonal treatment people receive when a decision is
implemented. Thus, employees losing their jobs will feel that the decision was more just if it is communicated to
them in a considerate, respectful, and polite manner. See 6-2: Rightsizing the Organizations
62. Answers will vary. It is becoming increasingly clear that the successful management of human resources during the
merger and acquisition process is quite important for the overall success of the project. Employees involved in mergers
and acquisitions must abandon one self-identity and then develop a new one: an employee of the acquiring firm or an
employee of the new, merged firm. However, research shows that this would lead to intergroup conflict. HR managers
must, therefore, move to integrate the two firms into one and create a new self-identity for all employees: employees of
the newly merged firm. In other words, for a merger or acquisition to be successful, all the employees should identify with
the new firm and therefore work with one another and cooperate to help make the new firm the best it can be—especially
because it is even more rewarding to be associated with a really successful firm.Another critical role the HR manager can
play during this process is to serve as the center of communications. There is a great deal of uncertainty for everyone
during a merger or acquisition, and the HR manager can work to communicate openly, honestly, and frequently with the
employees. In addition, it is important to build employee identification with the new corporate identity. This can be
accomplished with simple measures such as distributing shorts or caps with the new corporate logo, or it might involve
orientation sessions in which all of the reasons and details of the merger or acquisition are explained. Through programs
such as these, the HR manager can be an important player in the merger and acquisition process and thus can add value to
the organization in yet another way. See 6-5: Managing Human Resources during Mergers and Acquisitions
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 14
63. Answers will vary. The three causes of job dissatisfaction are the nature of the work itself, pay and benefits, and
relationships with supervisors and coworkers. Several retention strategies can be used to address the issue of decreased
job satisfaction, thereby managing voluntary turnover. Job enrichment has been consistently linked with higher levels of
job satisfaction. By making employees’ work more challenging and meaningful and by granting them more autonomy and
more opportunity to use their skills, the work itself becomes both motivating and satisfying (and more satisfied employees
are also more productive). This in turn reduces turnover rates.Realistic job previews (RJPs) are also effective in reducing
turnover. They provide accurate and realistic information to the job applicant and help ensure that the people on the job
are those most likely to be satisfied and thus remain. In addition, when new employees are made aware of potential
sources of dissatisfaction before encountering them, the employees can prepare themselves (psychologically or even
physically) so that, when they encounter the problem, they are ready to deal with it. In fact, when employees learn that
they can cope with various problems on the job by preparing for them beforehand, this knowledge alone can be a source
of job satisfaction and promote retention.Another retention strategy involves issuing stock options to new employees at all
levels of the organization (these options have typically been given to executives only). Stock options are rights, given to
employees, to purchase a certain number of shares of stock at a given price. Thus, there is a real incentive for the
employee to remain with the firm. See 6-4: Managing Voluntary Turnover
64. Answers will vary. Several models of the turnover process emphasize the role of dissatisfaction in an employee’s
decision to look for alternatives, and it is seen as a necessary (but not sufficient) first step in the decision to quit. A basic
model of the turnover process begins with factors leading to job dissatisfaction. Job dissatisfaction causes the employee to
begin thinking about quitting, which leads to a search for alternatives. Only if those alternatives look better does the
employee decide that he or she will quit, a decision first manifested by an intention to quit. Other models have proposed
similar mechanisms but have also suggested that job dissatisfaction must reach a critical level before anything happens
and, at that point, it may be too late to do anything. In other words, this approach suggests that increasing job
dissatisfaction does little to change the employee’s intentions to leave. Those levels of job dissatisfaction finally reach a
critical level, however, and the intention to leave becomes so strong that the employee is almost guaranteed to leave. See
6-4: Managing Voluntary Turnover
65. Answers will vary. A progressive disciplinary program typically has the following four steps: 1. Typically, the first
step in a progressive disciplinary program is a verbal warning, or a caution conveyed to the employee orally rather than in
writing. The supervisor or manager should keep a written record of the fact that a verbal warning was given to document
the fact that all required steps were taken in dealing with an employee. 2. Written warnings are more formal and are the
second step in the process. Here the supervisor gives the warning to the employee in writing and provides a copy to the
HR department. As a result, a written warning becomes part of the employee’s permanent record. 3. Suspension, or a
temporary layoff, is the next step in the process. The suspension could last a day or a few weeks; it may be with or
without pay. At each step, the supervisor should discuss the performance problems with the employee and seek ways for
the employee to improve. 4. If all else fails, the final step in the process is termination. At this point, the organization
faces potential legal problems as well as potentially violent reactions by the employee. This final step should be taken
only after serious consideration and the decision that the employee cannot be salvaged. See 6-3: Managing Terminations
and Retention