The benefits mix for a company should be governed by its compensation strategy, its
objectives, and the makeup of its workforce.
Retreats are an important tool for improving employee relations at large, public firms,
but they are less valuable for family-owned companies.
Firms that give perks to executives are not legally required to disclose such awards..
Effective implementation of a diversity management program requires that managers be
held accountable for failures and rewarded for successes.
Calculating the compensation package for expatriate employees is one of the most
difficult tasks facing multinational companies.
Both OSHA and NIOSH inspectors may inspect worksites and gather information from
employers and employees about hazardous materials.
With the rising number of women in the workforce, the majority of large U.S. firms
have responded by offering day care, flexible schedules, and telecommuting options to
retain female employees.
While the Fair Labor Standards Act dictates that employers pay workers overtime for
each hour they work over 40 hours in a week, it does not dictate the rate they must be
paid. Employers may pay anywhere from 1/2 to 2 times their regular wage.
Plantwide pay-for-performance plans are likely to be effective in large companies that
function in an unstable product market.
The term “training” has a distinctly positive connotation for most employees.
Quantitative forecasting techniques are especially useful for new organizations that lack
historical staffing information.
Recent studies have shown that 80% of voluntary separations are unavoidable.
The glass-ceiling phenomenon affects women more in South Korea than in the U.S.
In order to express feelings most effectively, face-to-face communication is a necessity
because of nonverbal messages.
Employee benefits accounted for about ________ of employers’ payrolls in 2013.
A) 10%
B) 20%
C) 30%
D) 40%
U.S. employers offer an average of ________ sick leave days a year for full-time
employees.
A) 5
B) 10
C) 15
D) 20
According to estimates, managers and executives spend approximately ________ of
their time in meetings.
A) 25%
B) 50%
C) 75%
D) 90%
The Equal Pay Act permits pay distinctions based on certain factors. Which of the
following is NOT one of those factors?
A) Gender
B) Merit system
C) Seniority system
D) Production quality
Cheap Shoes manufactures a line of inexpensive shoes. The firm uses a defender
strategy, which means the most effective structure for them involves:
A) maximizing autonomy among strategic divisions.
B) implementing decisions from the top down.
C) utilizing self-managing work teams.
D) establishing a flat structure.
Which of the following best explains why training has negative connotations to many
workers?
A) Training involves working with teams.
B) Employees interpret training as a criticism of their abilities.
C) Employees believe the training process is redundant and time-consuming.
D) Employers that require training typically have poor compensation and benefits.
The Privacy Act of 1974:
A) protects all employees’ electronic communication as private communication.
B) permits employers to review any business-related electronic communications.
C) prohibits government investigation into social networking sites.
D) permits federal employees to review their personnel files.
The Civil Rights Act of 1991 prohibited:
A) quotas.
B) affirmative action plans.
C) jury trials in sexual harassment suits.
D) punitive and compensatory damage payments.
The Wagner Act was primarily established to:
A) prohibit federal involvement in employer and employee wage disputes.
B) equalize the power between employees and employers.
C) give employers greater advantages over employees.
D) set federal and state minimum wages rates.
Additional Case 17.1
Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in
12 countries. Currently, expatriate managers and local national managers are hired and
promoted according to the direction of the home office. Hollar has a strategic alliance
with a large African ship building company in order to move into that market. Hollar
recently purchased Tyro, a firm based in France that makes automobile components.
Tyro’s production facilities are located in France, but the firm has dealerships and
customers throughout Europe.
Hollar plans to open a new plant in India within the next four years. Some of Hollar’s
top executives advocate using expatriates to oversee the construction of the new facility.
Another group of Hollar executives assert that host-country nationals should manage
the project.
Refer to Additional Case 17.1. Which of the following best supports the decision to fill
management positions in India with expatriates?
A) Hollar desires a greater understanding of local conditions and customs.
B) Hollar needs to ensure a smooth transfer of business and management practices.
C) Hollar wants to reduce the firm’s compensation costs related to construction of the
plant.
D) Hollar’s most globally skilled managers are part of dual-career couples with small
children.
Which of the following is LEAST relevant to successful career planning for
expatriates?
A) The spouses of expatriates receive adequate career support during the assignment.
B) Expatriates receive support from the home office through a mentoring program.
C) The power distance is greater in the home country than in the foreign country.
D) International assignments act as a step toward advancement within the firm.
Tony works in the finance department as an accounting clerk. He keeps a time card and
receives extra pay for any overtime he works. Tony is most likely a(n):
A) exempt line employee.
B) nonexempt staff employee.
C) exempt staff employee.
D) nonexempt line employee.
A ________ is a company that is partly owned by a host country firm and partly owned
by another firm, or a consortium of firms.
A) joint venture
B) multinational corporation
C) transnational corporation
D) multidomestic company
Pay-for-performance plans are more likely to succeed when:
A) cooperation is critical to success.
B) an employee’s job demands autonomy.
C) a firm utilizes cross-functional teams.
D) customers complete service questionnaires.
Additional Case 5.3
You are a middle manager looking for a first-line supervisor. The selection criteria in
priority order are: 1) the ability to learn and adapt to a changing job, 2) willingness to
perform the job assigned under its current conditions, and 3) strong verbal and
quantitative skills. In addition, the cost of the selection process is a concern since you
want to look at a broad range of candidates.
The firm has about 500 employees and is a federal contractor. There is a racial
imbalance among the management team, which favors white males. No evidence of
discrimination exists, and the firm has never received a discrimination complaint. The
firm’s hourly employees are about 50% female and 35% minority. You have actively
sought to provide access to disabled employees. Two years ago, the firm experienced an
incident in which one employee became violent and injured several other employees.
The firm was held liable for the occurrence.
Refer to Additional Case 5.3. The best selection tool for assessing your number one
criterion is:
A) structured interviews.
B) psychological testing.
C) cognitive ability testing.
D) reference checking.
About ________ of the U.S. labor force is covered by union contracts.
A) 6%
B) 12%
C) 24%
D) 36%
Which of the following terms refers to an employee who transforms information into a
product or service at a firm?
A) Knowledge worker
B) Assembly specialist
C) HR manager
D) Line personnel
The rights of individuals who must take short leaves from their private-sector
employers to perform military service are protected by:
A) Title VII of the Civil Rights Act of 1964.
B) the Civil Rights Act of 1991.
C) the Uniformed Service Employment and Reemployment Rights Act of 1994.
D) the OFCCP.
Orientation differs from socialization in that:
A) orientation is often a short-term program while socialization is a longer process.
B) socialization is often a short-term program while socialization is a longer process.
C) orientation is more valuable than socialization.
D) socialization is more expensive than orientation.
A company wants to know the rate at which employees voluntarily leave the firm. The
company most likely needs to:
A) measure its turnover rate.
B) conduct an HR audit.
C) implement a diversity audit.
D) track reasons for discharges.
Management’s rights to run the business and retain any profits that result are called
________.
________ is the mastery of basic skills.
________ is the transferring of responsibility and decision-making authority from a
central office to people and locations closer to the situation that demands attention.
What are the primary forms of paid time off available to most employees? How can a
firm’s HR department contain the costs associated with paid time off?
A(n) ________ is a worker who transforms information into a product or service.
The federal law that permits plaintiffs to collect punitive and compensatory damages is
the Civil Rights Act of 1991.