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Appendix A-61
| Appendix A – Critical Thinking Applications
CHAPTER 8 - CRITICAL THINKING APPLICATIONS
Critical Thinking Application 8-A
Workplace Diversity Training
You have been asked to design a diversity-training program for incoming freshmen at your
school. Try to answer the questions presented above in this context:
• Develop a method for the training program.
• Do a Web search to identify online diversity programs.
• Using Kirkpatrick’s model, give one example of each of the four types of data for
evaluation that you would use to either evaluate your own new program or a ready-
made online program.
The first step in defining diversity is to determine the organizational goals of why there is a
need to define it. For instance, if the need is based on a reaction to a situation the definition
will most likely be based on the specifics of the situation. For example, the incident at SDG & E,
The success of a workplace diversity-training program depends on the leadership’s personal
and organizational resource commitment to it. The answer to why it is important for the school
can only be determined by interviewing the leadership of the university. If the diversity training
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Once the question of what is to be trained is answered, the questions of how it will be trained
and how it will be evaluated will be able to be answered. For example, the training of the
recruiters in addressing more diverse students may be in role-playing exercises to facilitate the
http://www.diversitydtg.com/
http://www.opm.gov/hrd/lead/policy/divers97.asp
www.griggs.com/videos/tbl.shtml
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Critical Thinking Application 8-B
Sexual Harassment Training
This training is intended to help you understand and comply with a policy prohibiting sexual
harassment. Whether this is your first training or just a refresher, we hope you find it
interesting and informative.
After you have completed the training and received your certificate, answer the questions
that follow and bring your responses to class along with the certificate.
Students should have no difficulty accessing this on-line training. If you ask students to hand in
their “Certificate” indicating that they have gone through the course, it is possible a quasi-
experimental design will emerge where some students do not do their homework. A good
exercise is to do a follow-up “learning” assessment to determine the extent to which the
students who went through the training have higher test scores than those who did not. The
test below can be used as a “learning” evaluative criterion in such a study. Of course, you can
also randomly assign students to groups for a more definitive assessment of the training and
employ and pre-test design for both groups. This will enable you to discuss experimental design
along with the four criteria for evaluation.
The training site can be found at:
http://www.calstate.edu/gc/AntiSexualHarassmentTraining/sh-page1.shtml
Answers:
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© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Students will be surprised to learn that it is possible that the “correct” answer to #28 is TRUE
based on a 2006 state of California ruling where showing favoritism in assignments and raises
to a lover was judged to constitute sexual harassment by subordinates who affected by the
favoritism.
Answer the following questions:
1. What reactive, learning, behavioral, and results/ outcome measures do you propose to
assess the effects of this training program? Write at least one specific example of each type of
evaluative criteria.
REACTION: Trainees are asked to assess whether they thought the training was effective.
2. How does this type of training compare to alternative training approaches that could have
been used to comply with the law? What specific approaches would be more effective? Is this
training in compliance with AB 1825?
3. What type of evaluative measure is the test you just completed online? Is it a reactive,
learning, behavioral, or results measure? What is your opinion of the quality of this measure?
This was a learning measure. The items are closely linked to the training itself but may not
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4. What organizational analysis do you suppose the state of California conducted in order to
justify this legislation? You may either provide some possible data or find information online
to track the history of the legislation.
5. If you were hired as a consultant to the state of California charged with evaluating the
effects of state law AB 1825 legislation, what specific evaluative criteria would you use?
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CHAPTER 9 – CRITICAL THINKING APPLICATIONS
Critical Thinking Application 9-A
Careers and Corporate Social Responsibility
* Contributed by Joyce E.A. Russell and Lillian T. Eby
Your research should attempt to identify the following:
1. The types of behavior that are indicative of socially responsible and irresponsible
actions.
2. The real and potential difficulties faced by organizations in their attempts to
manage social responsibility.
3. Provide suggestions for how organizations can evaluate their corporate social
performance.
4. Outline a general plan for how an organization should conduct a corporate social
audit.
Provide an explanation for why the behavior is indicative of socially responsible or
irresponsible behavior. In addition, describe the consequences of the behavior for the
employee workforce and for any clients or customers or the general public. Consider the
extent to which you would weigh corporate social responsibility in your career planning and
job choice. Which of the socially responsible actions identified do you think would be most
resisted by management? Why? How could this resistance be addressed?
Answers will vary.
There is a plethora of companies that have published their corporate responsibility statement
on their website. The following information will get you started:
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© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Source: http://www.oecd.org/home/0,2987,en_2649_201185_1_1_1_1_1,00.html
Fortunes List of the Best & Worst In Social Responsibility 2009:
The Best
1) Anheuser-Busch
2) Marriott International
3) Integrys Energy Group
The Worst
1) Circuit City (out of business)
2) Family Dollar Stores
3) Dillard’s
The Business Ethics 100 Best Corporate Citizens list was developed and first published in
2000. The 100 Best Corporate Citizens list ranks firms based on how well they perform
2007 Top 10 Best Corporate Citizens:
1. Green Mountain Coffee Roasters
2. Advanced Micro Devices
3. NIKE, Inc
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Global Reporting Initiative/ Sustainability Reporting Guidelines: The G3 Guidelines is a
standardized approach to reporting and benchmarking organizational performance with
Company Highlight: Starbucks
Starbucks has repeatedly been ranked amongst the Top 10 Corporate Social Responsible
corporations: ranked 7th in 2009 Fortunes Best Socially Responsible Corporations and ranked 9th
in Business Ethics 100 Best Corporate Citizens. Starbucks is clearly a leader is CSR as evidenced
by the numerous awards it receives each year.
• Independent committees overseeing audit and compliance, compensation, and
corporate governance: leading the way in CSR instead of being pushed in that direction.
Appendix A-69
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© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Critical Thinking Application 9-B
O*Net Skills Search
Some organizations have taken advantage of O*NET for career guidance. O*NET is the
Occupational Information Network and is available as a vocational tool free of charge. O*NET is
the primary source of occupational information for the U.S. It provides the essential foundation
for facilitating career counseling, education, employment, and training activities. The database
contains information about knowledge, skills, abilities (KSA), interests, general work activities
(GWA), and work context. O*NET data and structure also links related occupational,
educational, and labor market information databases to the system. Among many other things,
O*NET can accomplish the following: 1. Facilitate employee training and development
initiatives; 2. Develop and supplement assessment tools to identify worker attributes; 3 Create
skills-match profiles; 4. Explore career options that capitalize on individual Knowledge, skill and
ability profiles; and 5. Improve vocational and career counseling efforts.
The Skills Search function is designed to help people use their skill set to identify occupations
for exploration. You select a set of skills from six broad groups of skills to create a customized
skill list. You begin by selecting skills from one or more of the six skill groups identified: Basic
Skills, Complex Problem Solving Skills, Resource Management Skills, Social Skills, Systems Skills,
and Technical Skills. Figure 9-6 presents the Skills Search Inventory.
Students selected skills which are then compared to skill ratings for each occupation. If a
selected skill is rated "Very Important" for a particular occupation, it is considered a match.
"Very Important" includes skills rated 69 or above on the standardized scale (3.75 or above on
the original importance scale). Occupations matching all selected skills are shown first,
followed by those matching all but one of the selected skills, and so on.
Assignment:
1. What is an O*NET-SOC code? Explain what a standard occupational classification is.
O*Net-SOC code is a numerical code used to identify and classify workers of the same
occupation in the same way; in other words it is standard skill set that defines an
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2. Explain the process that was used to match your skills to a particular job? (how does the
system do the match?)
3. What is an SVP rating?
4. What is a job zone?
5. Could an employer use the skills match to make hiring decisions or develop hiring criteria?
For example, should an employer require all applicants to do the skills match and then
determine whether the job the employer is trying to fill appears in the skills match
feedback?
6. Were the jobs identified for you as compatible with your skills search really compatible
with your interests and aspirations? Explain your answer.
7. Are there any other options in the O*Net website that could provide useful vocational
advice? Could you use the “find occupations” option at http://online.onetcenter.org/?
Yes; there are more esoteric searches within the O*NET data base that focus on more
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Critical Thinking Application 10-A
Defending Corporate Executive Pay
* Contributed by Harry Schwartz and John Bernardin.
1. Should the government put more regulatory constraints on executive pay? Explain your
answer. Do a search to determine if there is any new or pending legislation or regulation that
would regulate executive pay.
There will probably be considerable regulatory activity in 2009 and forward. Top executives in
the United States saw the average dollar amount of their 2007 Total Compensation Package
2. Do you agree with the argument that executive pay is based on an external market analysis
(the principle of external equity) and is thus fair?
Many experts argue that the market is rigged to benefit the executives, corporate boards and
parachutes.”
3. Do you think “clawbacks” should be mandatory and, if so, what should they stipulate?
Conduct an on-line search to get an idea of how many companies are requiring “clawbacks” in
their proxy statements.
There is a public backlash against excessive pay and taxpayer lifelines extended to troubles
companies. Legislation to recoup compensation, known as “clawbacks,” has been proposed.
Some companies have “clawback” provisions in their executive employment contracts.
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© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Equilar, a compensation research firm, conducted the analysis of executive pay for the New
York Times. Executives at seven companies received almost $500 million in performance pay
from 2005 to 2007. Those companies were AIG, Bear Stearns, Lehman Brothers, Merrill Lynch
and Washington Mutual.
As of March,2009, there was no legal mandate to force the recovery of past pay that was
gained through risky investment that exploded later. Clawbacks are also a hot issue at recent
shareholder meetings.
“There is a line that separates fair compensation from stealing from shareholders,” said
Frederick E. Rowe, a money manager in Dallas and a founder of Investors for Director
Accountability, a nonprofit group. “When managements ignore that line or can’t see it, then
hell, yes, they should be required to give the money back.”
Corporate boards that awarded lush executive pay packages almost always justified them by
saying they encouraged superior performance and were directly tied to benchmarks like
profitability.
4. Should “say on pay” be mandatory for all executive pay packages? Should corporate
boards alone continue to make decisions with respect to executive pay packages or should
consent of a majority of shareholders be required? Suggest one or two advantage and
disadvantages.
President Obama has endorsed “Say on Pay,” a hot governance issue that would allow
shareholders to approve pay packages for the most senior executives. There may already be
legislation.
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5. Do you agree with the recommendation to require full disclosure regarding pay
consultants? Explain your answer.
Compensation consultants, who work for companies that often have other contracts with the
company, are eager to please the boss with lavish pay packages and lucrative “golden
parachutes.”
Washington Mutual had mortgage-related losses of $8 billion in 2007 and 2008 which wiped
out all of its earnings in 2006 and 2005. Mr. Killinger received $38.2 million in performance pay
between 2005 and 2008 until the company was sold.
6. What about the argument that CEO pay is no more out of line than the compensation of
movie stars or star athletes?
The pay of athletes and movie stars is much more directly related to their own personal
performance (a record of outcomes). While CEOs tend to claim personal credit for the
successes of their corporations during their tenure, athletes, through statistics, and movie stars,
Athletes are largely paid based on their personal accomplishments as athletes. Tiger Woods is
clearly the greatest golfer and his earnings derive from this greatness. While CEOs love to claim
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© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
personal responsibility for the success of their companies, the connection between exactly
what CEO do (or did) and corporate success is far more tenuous. Movie stars are largely paid
based on the success of their past movies with incentives for the latest.
1Crystal, G. (1991). In search of excess. New York: Norton, p. 3.
2Data from The Corporate Library is based on 211 proxy statements filed through April 9, 2008.
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Critical thinking Application 10-B
Illegal Pay Discrimination, Bad Pay Policy or Both?
Is this a violation of the EPA?
Although this situation seems to constitute bad pay policy, and could very well cause the
Counseling Center to lose a very important member of their staff, there does not appear to be a
violation of the EPA or Title VII. See Figure 10-8.
The Equal Pay Act requires that men and women be given equal pay for equal work in the same
establishment. The jobs need not be identical, but they must be substantially equal. It is job
content, not job titles, that determines whether jobs are substantially equal. Specifically, the
EPA provides:
Employers may not pay unequal wages to men and women who perform jobs that require
substantially equal skill, effort and responsibility, and that are performed under similar working
conditions within the same establishment. Each of these factors is summarized below:
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Would there be a violation of the “Paycheck Fairness Act” if this legislation has amended the
FLSA?
The Act tightens the affirmative defense so that it can excuse a pay differential for men and
women only where the employer can show that the differential is truly caused by
something other than sex and is related to job performance and consistent with business
necessity.
What about Title VII?
Title VII, the ADEA, and the ADA prohibit compensation discrimination on the basis of race,
color, religion, sex, national origin, age, or disability. Unlike the EPA, there is no requirement
Does Ms Kate have a case?
If Dr. Boseman feels Ms Kate has an EPA case, can he reduce the pay of the newly hired Ph.D.
to match Ms Kate’s salary to erase the problem?
Dr Boseman could reduce the Ph.D. salary; however, this is not recommended. It would be
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Does it matter that the Counseling Center hired the male Ph.D. eight months ago? If so, how
is this relevant in a Title VII claim?
The legal implications aside, what should Dr. Boseman do?
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CRITICAL THINKING APPLICATION 10-C
Legal or Illegal Compensation Plan?
* Contributed By Karen Preston
Can the older workers use “disparate impact” theory in their age discrimination claim?
Yes; in the Supreme Court case in Smith v. City of Jackson, Miss. 544 U.S. (2005) The Court
held that the ADEA does authorize recovery in "disparate-impact" cases comparable to Griggs
Based on the facts above, is the city of Tampa guilty of unlawful discrimination against older
workers? Explain your answer.
No, the Supreme Court also found that petitioners did not set forth a valid disparate-impact
If ‘disparate impact’ theory is allowed in ADEA cases, who has the burden of proof once
‘prima facie’ evidence is presented and what is that burden? What case law backs up your
position?
Once the prima facie case has been established based on the evidence by the plaintiff, the
defendant must then present evidence that ‘reasonable factors’ other than age were the basis
of the personnel decision. The 2008 Supreme Court decision in Meacham et al. v. Knolls Atomic
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What is your view of the methods they used to adjust pay rates?
The city had a particular problem (difficulty in attracting applicants and retaining personnel)
and attempted to solve these problems in an efficient manner. To the extent the pay
Additional information:
The ADEA applies to private employers, to state, local, and federal government organizations
with 20 or more employees, and labor unions with 25 or more members.
Examples of ADEA “disparate impact”:
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CHAPTER 11- CRITICAL THINKING APPLICATIONS
Critical Thinking Application 11-A
The Case For and Against Pay-for-Performance Systems
* Contributed by Lauren J. Lispi
Do you agree with Kohn or Cummings? Are there situations in which the opposing position
would ever apply? What does the latest research indicate regarding this question? Think of
a real-life example to supsport the position you have taken. Kohn says employees will
abandon risk taking with PFP. Is that necessarily true? What are some examples of high risk
taking under a PFP system that was clearly not a good thing for the company in the long run?
The most research evidence (Rynes et al., 2005) supports Cummings' position although, as
indicated in Chapter 11, PFP systems must establish tight connections between employees'
effort or motivation and desired outcomes. Also, that performance, which is rewarded, must be
PFP systems can (and clearly do) work and they are important for attracting and keeping top
talent. But there are contingency factors that research has shown can affect important
outcomes related to pay and the importance attached to pay by workers. Figure 11-1 presents
“above market.” People often reject offers simply because of the pay. Pay is probably relatively
more critical in terms of job choice than decisions to quit
