A significant part of any pay-for-performance system is using nonfinancial incentives as
well as financial incentives.
Customer service rewards for salespeople are typically individual-based, team-based, or
plant-based.
Generally speaking, whistleblowers suffer some form of punishment for their actions
even when they are in the right.
Flat organizational structures are helpful for organizations that emphasize customer
satisfaction and have broadly defined jobs.
The work flow in an organization refers to the formal and informal relationships
between people in the organization.
The replacement of striking workers by employers was legal but rarely used until the
1981 air traffic controllers’ strike.
Studies show that 90% of all small businesses fail within their first three years.
Outsourcing HR activities typically increases control and decreases costs.
The Griggs vs. Duke Power case set a legal precedent for responding to disparate
treatment in the workplace.
360° performance appraisal systems require careful planning and consume far more
time than other appraisal systems, but putting the system online can reduce the time and
costs of the process.
HR strategies need to fit a firm’s overall management philosophy but may largely
ignore the company’s market posture and production processes, since those are line
management responsibilities and HR has little impact on them.
Depressed employees have a tendency to be absent from work but are not typically
prone to more accidents.
Richard has a very high motivation to perform a job well but is somewhat inept. He
should be hired because his motivation will offset his lack of ability.
Job analysis data is primarily used by HR for handling compensation and training tasks;
most HR managers find such information less useful for recruiting activities.
The hiring process begins with deciding who should make selection decisions.
A company needs to hire a telephone customer service representative. The job is 100%
telephone contact with customers and requires the ability to speak clearly and quickly
due to high call volume. It also requires the ability to use a computer and to think and
solve problems independently of supervision. Pauline, who is bright and experienced
with computers, has a speech impediment that makes enunciation difficult and slow for
her. She has an excellent track record for working unsupervised at previous jobs.
Pauline is not hired due to the speech impediment. Has management made a decision
that makes the firm legally liable for discrimination under the ADA?
A) Yes, because she has a major life activity impairment.
B) No, because the speech requirement is a marginal job duty.
C) Yes, because she is disqualified solely due to the impediment.
D) No, because the speech requirement is an essential task that cannot be
accommodated.
An individual-based incentive compensation system has a number of disadvantages,
such as:
A) fostering social pressure to limit performance.
B) failing to address production goals.
C) placing employees at financial risk.
D) promoting too narrow of a job focus.
Which of the following is NOT a requirement for receiving OSHA approval of a state
occupational safety and health program?
A) Providing educational assistance to employers
B) Hiring and training competent enforcement personnel
C) Exhibiting the ability to set and enforce standards
D) Showing the ability to fund more than half of the program’s costs
The rights to hire, promote, and determine pay levels for employees are examples of:
A) due process rights.
B) statutory rights.
C) residual rights.
D) contractual rights.
Additional Case 15.3
Wear and Tear is a large manufacturer with about 250 employees. At the moment, they
are in new contract negotiations with their union. Cole, the firm’s labor relations
specialist, is heading the negotiations for management. Natalie is labor’s representative.
Cole doesn’t know if he likes working with Natalie. He was able to make her
predecessor agree to his terms whenever they negotiated contracts. Natalie is tougher to
deal with. She tends to emphasize what bad things can happen to Wear and Tear and to
him if her point isn’t granted.
Negotiations have been going on for several days. Cole tells Natalie that if they will
accept wage concessions, the company will give employees stock to compensate for the
loss in wages. Natalie declines the offer and is unwilling to negotiate further. She
reminds him that the contract expires in two days and that the workers will strike if they
don’t have a new contract by that time.
Refer to Additional Case 15.3. Which labor relations strategy is Natalie most likely
using?
A) A distributive bargaining strategy
B) An integrative bargaining strategy
C) A union acceptance strategy
D) A bad faith bargaining strategy
Which of the following is LEAST relevant to determining the characteristics necessary
for job performance?
A) Organizational culture
B) Applicant knowledge
C) Applicant abilities
D) Labor market
Management at Wilson Manufacturing worked with its union to create a strategic plan
that reduced the workforce but gave the union a voice in management decisions and
future expansion plans. This is most likely an example of a(n) ________ labor relations
strategy.
A) interactive bargaining
B) union acceptance
C) distributive bargaining
D) collective bargaining
The basic element of work that is a logical and necessary step to perform a job is a:
A) duty.
B) task.
C) responsibility.
D) job description.
Jim has been on a trip for two weeks. When he returns to his office, he finds 125
e-mails on his computer. Jim is mostly experiencing which of the following?
A) Noise
B) Lateral communication
C) Inappropriate channel selection
D) Information overload
All of the following are HR responsibilities EXCEPT:
A) monitoring the company’s HR decisions.
B) rendering official legal opinions.
C) maintaining employment records.
D) implementing HR policies.
Additional Case 11.2
Richland Manufacturing uses an individual-based pay-for-performance plan for
employees.
Manager input in the form of performance evaluations primarily determines individual
employee rewards. Performance appraisals at Richland are used for multiple purposes
including compensation, training, and work planning. Since implementing the plan,
many managers have noticed that employees tend to play it safe by setting modest
rather than challenging goals for themselves. Employees have also been avoiding
important tasks, such as satisfying the needs of customers and keeping work areas neat.
In addition, most employees express disbelief that pay and performance are actually
linked. As a result, Richland is considering making modifications to the system.
The HR Director wants a system that will reward all employees based on the entire
company’s performance because he wants to increase employee commitment. The VP
of Operations wants to reward specific productivity and quality improvements with a
simply structured system that considers labor costs as well as other production
expenses. The VP of Operations also believes that labor and management should work
together to allocate the rewards.
Refer to Additional Case 11.2. Employees avoiding important tasks is most likely a
problem associated with:
A) lack of promotion opportunities for employees.
B) employee motivation as explained by expectancy theory.
C) the deterioration of quality that comes with individual-based plans.
D) the single-mindedness and focus that comes with individual-based plans.
Which term refers to the idea that one can infer an individual’s motivations, interests,
values, and behavioral traits based on the individual’s group membership?
A) Cultural determinism
B) Cognitive perception
C) Discrimination
D) Cultural awareness
Which of the following has the LEAST influence on job design?
A) Work-flow analysis
B) Employee motivation
C) Organizational structure
D) Business strategy
Which of the following handles employer appeals of OSHA citations, abatement
periods, and penalties?
A) Occupational Safety and Health Review Commission
B) National Institute for Occupational Safety and Health
C) Hazard Communication Standards Commission
D) Occupational Safety and Health Administration
The degree to which a society places a high value on the future as opposed to the past
or present describes Hofstede’s cultural dimension of:
A) power distance.
B) individualism.
C) long-term/short-term orientation.
D) uncertainty avoidance.
Approximately 43 million people in the United States today are disabled. Of that
number, about ________ are actively employed.
A) 2 million
B) 6 million
C) 15 million
D) 25 million
To design a successful benefits strategy, employers should most likely consider:
A) two areas: benefits amount and the flexibility of benefits.
B) two areas: benefits mix and the flexibility of benefits.
C) three areas: benefits mix, the flexibility of benefits, and the benefits amount.
D) four areas: benefits mix, the flexibility of benefits, the benefits amount, and benefits
communication.
Qamar has recently come up with a plan to increase the efficiency of Moon Struck
International’s accounting system. As a reward, MSI has provided Qamar and her
husband tickets to the DiVinci art show that is coming to town next month. This type of
reward is:
A) illegal.
B) a recognition award.
C) likely to cause friction between Qamar and her co-workers.
D) inappropriate. Employee awards should not extend to the spouse of the employees.
Additional Case 2.2
You are the HR manager at Steel City, Inc., a firm that is considering going global in its
product line and markets. The president realizes that this may require a reorganization.
She wants to move into new international markets with minimum time and effort. She
also wants to reduce management overhead and labor costs.
At the same time, employees have been complaining about their work. Jobs are
repetitive, and employees don’t know how their work fits into the big picture. The
president wants to provide employees with satisfying work, autonomy, and a
performance-based pay system. She wants to give them as much control as possible and
remove layers of management.
Refer to Additional Case 2.2. The best organizational design match for Steel City would
most likely be a:
A) flat organizational structure.
B) generic organizational structure.
C) boundaryless organizational structure.
D) bureaucratic organizational structure.
Additional Case 13.2
Starline is a small children’s clothing manufacturer and retailer that has seen rapid
growth in the last twelve months and a significant increase in employees. At a meeting
of managers, a number of issues are raised.
One manager suggests establishing an EAP because of the increase in troubled
employees at the firm. However, other managers state that such programs are costly and
would not provide Starline with significant benefits.
Another manager states that Starline needs to develop an employee handbook to
address issues related to the growing staff. Some managers express concern about the
potential legal issues surrounding the use of an employee handbook.
Numerous managers state that there has been a noticeable decrease in productivity since
every office worker was provided Internet access along with e-mail accounts. Managers
discuss methods for increasing productivity and preventing misuse of the system.
One manager suggests that the company perform employee attitude surveys in order to
help monitor the state of employee relations and make hiring and firing decisions
during the next hiring cycle. This manager proposes that a third party perform the
surveys and that employees not be told the purpose of the survey.
Refer to Additional Case 13.2. Which of the following actions would LEAST likely
improve productivity at Starline?
A) Requiring employees to save all e-mails in individual folders
B) Making sure employees know that the company can monitor their e-mail use
C) Setting up a company online bulletin board for distribution of general information
D) Shutting off the computer beep that tells receivers that they have received a new
message
In general, retreats are:
A) inappropriate for family businesses.
B) harmful to most large corporations.
C) helpful at enhancing employee relations.
D) effective only for rewarding performance.
Additional Case 2.2
You are the HR manager at Steel City, Inc., a firm that is considering going global in its
product line and markets. The president realizes that this may require a reorganization.
She wants to move into new international markets with minimum time and effort. She
also wants to reduce management overhead and labor costs.
At the same time, employees have been complaining about their work. Jobs are
repetitive, and employees don’t know how their work fits into the big picture. The
president wants to provide employees with satisfying work, autonomy, and a
performance-based pay system. She wants to give them as much control as possible and
remove layers of management.
Refer to Additional Case 2.2. The president is discussing the use of teams in the
company. Given the company direction and the president’s goals, you should
recommend:
A) that she implement special project teams.
B) quality circles as a type of problem-solving team.
C) ISO 9000-based teams.
D) self-managed work teams.
Recent studies of MBA graduates have found that the early career success of these
graduates seems to be a function of:
A) ability.
B) personality.
C) motivation.
D) motivation and ability.
The Family and Medical Leave Act does NOT apply to employees who have:
A) previously adopted children.
B) been with an employer less than one year.
C) reached retirement age.
D) previously taken FMLA leave.
Additional Case 4.3
Your retail company has 80% of its stores located in downtown metropolitan areas.
Your biggest stores are in communities where minorities represent 60% of your
customers. Your middle-management team has been changing over time so that 50% of
your managers are women and about 30% are ethnic minorities. A significant number of
your hourly employees, about 35%, have served over 20 years in their respective stores
and many are over 40 years of age. Top management feels that African-Americans are
under-represented in the hourly workforce and in middle management. They want HR
to initiate an aggressive recruitment process to address the situation.
Hispanics are the biggest minority group, besides women, in your workforce. In a
discussion about where the company should target its diversity program, the CEO
explains she wants to implement a training program for managers to raise their
sensitivity to minorities, especially Hispanics. She also notes that there are no disabled
persons in the workforce and very few Asian-Americans. Carlos, the VP of facilities,
notes that he has accommodated all the Asian-American employees he can in his MIS
and facility support services. He also argues that he only has about $10,000 in his
budget for reorganizing display space in the stores to accommodate disabled employees
and that this amount probably isn’t sufficient to accommodate a disabled employee.
Refer to Additional Case 4.3. Carlos’ comments about hiring disabled employees:
A) indicate that he understands the costs associated with ADA compliance.
B) reveal a common misconception about accommodation costs.
C) show that he is inherently prejudiced against the disabled.
D) demonstrate that he is concerned about turnover rates.
Bargaining that focuses on convincing the other party that the cost of disagreeing with
the proposed terms would be very high is referred to as ________.
________ are work-related criteria that an organization considers most important in
assessing the relative value of different jobs.
A type of training that presents supervisors with fictitious examples of worker
performance, asks the supervisor to evaluate the workers in the examples, and then tells
them what their ratings should have been is referred to as ________.
The most universally important law for EEO matters is Title VII of the Civil Rights Act
of 1964. Review its general provisions, defining key terms.
The ________ is a model of disciplinary action’”discipline should be immediate,
provide ample warning, and be consistently applied to all.
A couple whose members both have occupational responsibilities and career issues at
stake is referred to as a(n) ________.