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Management, 11e (Robbins/Coulter)

Chapter 12 Managing Human Resources

1) High-performance work practices are those that lead to both high individual and high
organizational performance.
Answer: TRUE
Page Ref: 313
Topic: The Human Resource Management Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

2) High-performance work practices involve a commitment by management to improve the


knowledge skills and abilities of the organization's employees, increasing employee motivation,
and enhancing the retention of quality employees.
Answer: TRUE
Page Ref: 313
Topic: The Human Resource Management Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

3) An organization that wants to have high-performance work practices should discourage self-
managed teams and decentralized decision making.
Answer: FALSE
Page Ref: 313
Objective: 1
Difficulty: Easy
Classification: Conceptual

4) A labor union is an organization that represents workers and seeks to protect their interests.
Answer: TRUE
Page Ref: 315
Topic: The Human Resource Management Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

5) Affirmative action programs help ensure that decisions and practices enhance the employment,
upgrading, and retention of members from protected groups such as minorities and females.
Answer: TRUE
Page Ref: 315
Topic: The Human Resource Management Process
Objective: 1
Difficulty: Easy
Classification: Conceptual
6) The Civil Rights Act, Title VII prohibits discrimination of employees who are above 40 years

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of age.
Answer: FALSE
Page Ref: 316
Objective: 1
Difficulty: Easy
Classification: Conceptual

7) Human resource planning entails two steps: assessing current human resource assessment and
meeting future human resource needs.
Answer: TRUE
Page Ref: 319
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

8) Job descriptions focus on the job, while job specifications focus on the person.
Answer: TRUE
Page Ref: 319
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

9) Recruitment is defined as the process of screening job applicants to determine who is best
qualified for the job.
Answer: FALSE
Page Ref: 319
Objective: 2
Difficulty: Easy
Classification: Conceptual

10) One disadvantage of employee referrals as a source of job candidates is that it generates
unqualified candidates.
Answer: FALSE
Page Ref: 320
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

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11) There are only two ways of controlling labor supply through decruitment: firing and early
retirements.
Answer: FALSE
Page Ref: 320
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

12) The burden to prove that any selection device that managers use to differentiate applicants is
validly related to job performance is on the managers.
Answer: TRUE
Page Ref: 322
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

13) Giving negative information about the organization to prospective candidates is not a good
idea because it puts the company in bad light.
Answer: FALSE
Page Ref: 323
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

14) A new employee goes through two types of orientation: work unit orientation and procedural
orientation.
Answer: FALSE
Page Ref: 323-324
Topic: Providing Employees with Needed Skills and Knowledge
Objective: 3
Difficulty: Easy
Classification: Conceptual

15) Job rotation allows employees to work at different jobs in a particular area, thereby giving
them exposure to a variety of tasks.
Answer: TRUE
Page Ref: 325
Topic: Providing Employees with Needed Skills and Knowledge
Objective: 3
Difficulty: Easy
Classification: Conceptual

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16) Written essay and critical incident are performance appraisal methods.
Answer: TRUE
Page Ref: 327
Topic: Retaining Competent, High-Performing Employees
Objective: 4
Difficulty: Easy
Classification: Conceptual

17) Variable pay systems reward employees for the job skills and competencies they can
demonstrate.
Answer: FALSE
Page Ref: 327
Topic: Retaining Competent, High-Performing Employees
Objective: 4
Difficulty: Easy
Classification: Conceptual

18) Summer day camps and job sharing are types of family-friendly benefits that organizations
offer today.
Answer: TRUE
Page Ref: 331
Objective: 5
Difficulty: Easy
Classification: Conceptual

19) People who prefer integration are more likely to respond positively to options such as
flextime and part-time hours.
Answer: FALSE
Page Ref: 332
Topic: Contemporary Issues in Managing Human Resources
Objective: 5
Difficulty: Moderate
Classification: Conceptual

20) Which of the following is true of high-performance work practices?


A) It is easier to implement in organizations with centralized structures.
B) It involves well-structured job responsibilities as opposed to flexible assignments.
C) In spite of its many benefits, research indicates that there is no direct link between high-
performance work practices and a firm's market value.
D) It encourages extensive employee involvement and greater employee control on decision
making.
Answer: D
Page Ref: 313
Topic: The Human Resource Management Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

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21) Which of the following is an example of a high-performance work practice?
A) closed communication
B) centralized decision making
C) skill-based compensation
D) self-managed teams
Answer: D
Page Ref: 313
Topic: The Human Resource Management Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

22) ________ is an example of a high-performance work practice.


A) Increasing employee access to information
B) Giving employees less control over decision making
C) Seniority-based compensation
D) Closed communication
Answer: A
Page Ref: 313
Objective: 1
Difficulty: Easy
Classification: Conceptual

23) The first three activities of the human resource management process involves ________.
A) providing employees with flexible job assignments
B) identifying and selecting competent employees
C) providing employees with up-to-date knowledge and skills
D) retaining competent and high-performing employees
Answer: B
Page Ref: 313
Topic: The Human Resource Management Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

24) The final three activities of the human resource management process ensure ________.
A) that the organization retains competent and high-performing employees
B) that the organization selects and trains competent employees
C) the best compensation packages for the new hires
D) that employees are continuously provided with up-to-date knowledge and skills
Answer: A
Page Ref: 313
Topic: The Human Resource Management Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

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25) Which of the following steps in the human resource management process identifies and
selects competent employees?
A) orientation and training
B) human resource planning and recruitment
C) compensation and benefits
D) training and performance management
Answer: B
Page Ref: 314
Objective: 1
Difficulty: Easy
Classification: Conceptual

26) Which of the following steps in human resource management helps retain competent and
high-performing employees?
A) orientation and selection
B) selecting
C) performance management
D) training
Answer: C
Page Ref: 314
Objective: 1
Difficulty: Easy
Classification: Conceptual

27) Labor unions use ________ to protect the rights of their members.
A) juvenile arbitration
B) commercial arbitration
C) collective bargaining
D) plea bargaining
Answer: C
Page Ref: 315
Topic: The Human Resource Management Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

28) The essence of affirmative action is to ________.


A) provide positive reinforcements to encourage desirable behavior
B) prevent employees from behaving unethically
C) prevent discrimination and enhance the status of members from protected groups
D) provide experiential exercises and on-the-job coaching for employees
Answer: C
Page Ref: 315
Objective: 1
Difficulty: Moderate
Classification: Conceptual

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29) Which of the following laws prohibits discrimination on the basis of physical or mental
disabilities?
A) Vocational Rehabilitation Act
B) Civil Rights Act, Title VII
C) Equal Pay Act
D) Occupational Safety and Health Act
Answer: A
Page Ref: 316
Objective: 1
Difficulty: Easy
Classification: Conceptual

30) Which of the following Acts gives employees the legal right to examine personnel files and
letters of reference?
A) Civil Rights Act, Title VII
B) Worker Adjustment and Retraining Notification Act
C) Privacy Act
D) Equal Pay Act
Answer: C
Page Ref: 316
Topic: The Human Resource Management Process
Objective: 1
Difficulty: Easy
Classification: Conceptual

31) Which of the following Acts requires continued health coverage following termination of an
employee?
A) Consolidated Omnibus Budget Reconciliation Act
B) Occupational Safety and Health Act
C) Health Insurance Portability and Accountability Act
D) Family and Medical Leave Act
Answer: A
Page Ref: 316
Objective: 1
Difficulty: Easy
Classification: Conceptual

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32) Fletcher has worked as a regional sales manager for Waiyo, a firm that sells espresso
machines to offices and restaurants, for 8 years. Faced with falling demand and plummeting
sales, the firm decided to prune its operations and concentrate on its most profitable markets.
Fletcher's sales territory was not part of this and he was let go by the management, with a modest
severance package. However, his health coverage was discontinued following his termination,
even though Fletcher was willing to pay for it. Which of the following laws can Fletcher cite in
his efforts to have his health coverage benefits restored?
A) Consolidated Omnibus Budget Reconciliation Act (COBRA)
B) Health Insurance Portability and Accountability Act (HIPAA)
C) Occupational Safety and Health Act (OSHA)
D) Lilly Ledbetter Fair Pay Act
Answer: A
Page Ref: 316
AACSB: Analytic Skills
Objective: 1
Difficulty: Moderate
Classification: Application

33) Which of the following is true of the government legislations related to human resource
management in different countries?
A) Canadian laws prohibit discrimination on the basis of language in all parts of the country
except Quebec.
B) In Australia, gender opportunities for women lag behind those in the United States.
C) In Mexico, employees are less likely to be unionized than in than in the United States.
D) Unlike the rest of Europe, legislation in Germany does not require companies to practice
representative participation.
Answer: B
Page Ref: 317
Objective: 1
Difficulty: Easy
Classification: Conceptual

34) The two most common forms of representative participation are ________.
A) board representatives and cross-functional teams
B) task forces and labor unions
C) work councils and board representatives
D) work councils and cross-functional teams
Answer: C
Page Ref: 317
Objective: 1
Difficulty: Easy
Classification: Conceptual

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35) ________ are groups of nominated or elected employees who must be consulted when
management makes decisions involving personnel.
A) Task forces
B) Cross functional teams
C) Work councils
D) Board representatives
Answer: C
Page Ref: 317
Objective: 1
Difficulty: Moderate
Classification: Conceptual

36) Which of the following statements is true of the four generations that are working side-by-
side today?
A) The baby boomers refer to people born between 1965 and 1977 who account for the bulk of
the workforce.
B) The Gen X workers consist of people born between 1978 and 1994.
C) The Gen Y refer to people born between 1946 and 1964.
D) The oldest, most experienced workers account for about 6 percent of the workforce.
Answer: D
Page Ref: 318
Objective: 1
Difficulty: Easy
Classification: Conceptual

37) People who turned 21 in 2000 or later are known as ________.


A) baby boomers
B) millennials
C) the 13th generation
D) Gen Xers
Answer: B
Page Ref: 318
Objective: 2
Difficulty: Easy
Classification: Conceptual

38) The first phase of the human resource management process involves ________.
A) human resource planning, compensation, and benefits
B) human resource planning, training, and performance management
C) human resource planning, recruitment and decruitment, and selection
D) human resource planning, recruitment and decruitment, and orientation
Answer: C
Page Ref: 318
Objective: 2
Difficulty: Easy
Classification: Conceptual

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39) The process by which managers ensure that they have the right number and kinds of capable
people in the right places and at the right times is known as ________.
A) affirmative action
B) performance management
C) job specification
D) human resource planning
Answer: D
Page Ref: 318
Objective: 2
Difficulty: Easy
Classification: Conceptual

40) Managers begin human resource planning by ________.


A) locating capable applicants
B) inventorying current employees
C) job analysis
D) recruitment and decruitment
Answer: B
Page Ref: 319
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

41) An assessment that defines jobs and the behaviors necessary to perform them is known as a
________.
A) job description
B) job specification
C) job preview
D) job analysis
Answer: D
Page Ref: 319
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

10
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42) Steve, a human resources manager, wants to let potential candidates know about the
minimum qualifications that they should possess in order to successfully perform the jobs they
have applied for. What should he do?
A) He should frame a job description.
B) He should frame a job specification.
C) He should do a job analysis.
D) He should do a job satisfaction survey.
Answer: B
Page Ref: 319
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Moderate
Classification: Conceptual

43) A written statement that explains the job content, environment, and conditions of
employment is called a ________.
A) job specification
B) job preview
C) job manual
D) job description
Answer: D
Page Ref: 319
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

44) A ________ states the minimum qualifications that a person must possess to successfully
perform a given job.
A) job description
B) job preview
C) job manual
D) job specification
Answer: D
Page Ref: 319
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

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45) Recruitment is the process of ________.
A) moving employees laterally to reduce intraorganizational supplydemand imbalances
B) locating, identifying, and attracting capable applicants
C) screening job applicants to determine who is the best
D) reducing the surplus employees from the workforce
Answer: B
Page Ref: 319
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

46) If human resource planning shows a surplus of employees, management can reduce the
organization's workforce through ________.
A) recruitment
B) decruitment
C) increased workweeks
D) reduced job sharing
Answer: B
Page Ref: 319
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

47) ________ as a source of recruitment is limited to entry-level positions.


A) The company Web site
B) The Internet
C) College recruiting
D) Professional recruiting organizations
Answer: C
Page Ref: 320
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

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48) Gareth has been promoted as the HR manager. He is now in charge of recruiting at Eowin
Systems, and is expected to enhance the diversity of the workforce. Which of the following
recruiting sources should Gareth avoid if he is to achieve the stated aim of a more diverse
workforce?
A) college recruiting
B) company Web site
C) employee referrals
D) professional recruiting organizations
Answer: C
Page Ref: 320
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application

49) A disadvantage of using professional recruiting organizations is ________.


A) that they generate many unqualified candidates
B) their limited commitment to specific companies
C) that they can only be used for entry-level positions
D) that they do not increase the diversity and mix of employees
Answer: B
Page Ref: 320
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

50) ________ are temporary involuntary termination that can last from a few weeks to several
years.
A) Layoffs
B) Attritions
C) Transfers
D) Retirements
Answer: A
Page Ref: 320
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

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51) Plaxo Inc., is going through tough times. Latest financial reports indicate that overall
profitability of the company is down by 15 percent and they are losing market share. The
situation seems quite bleak and it is unlikely that the company's prospects will improve in the
near future unless they take some drastic measures. In a board meeting, one of the directors
proposes the idea of offering senior employees the option of voluntary retirement. Which of the
following, if true, would support this proposal?
A) The company has a last-in-first-out decruitment policy.
B) The younger work force is more efficient while the older workforce is more loyal.
C) The older employees will prefer to voluntarily retire as opposed to being laid-off.
D) The company is committed to maintaining workforce diversity at all costs.
Answer: C
Page Ref: 320
AACSB: Reflective Thinking Skills
Objective: 2
Difficulty: Moderate
Classification: Critical Thinking

52) In which of the following decruitment methods does an organization refrain from filling up
the openings created by voluntary resignations or normal retirements of its employees?
A) firing
B) layoffs
C) attrition
D) transfers
Answer: C
Page Ref: 320
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

53) ________ involves predicting which applicants will be successful if hired.


A) Selection
B) Training
C) Orientation
D) Decruitment
Answer: A
Page Ref: 321
Objective: 2
Difficulty: Easy
Classification: Conceptual

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54) Errors made by getting rid of candidates who would have performed successfully on the job
are known as ________.
A) admission errors
B) reject errors
C) accept errors
D) reception errors
Answer: B
Page Ref: 321
Objective: 2
Difficulty: Easy
Classification: Conceptual

55) Elizabeth was hired as a customer care executive, along with five others, by a
telecommunication provider during a period when they were extremely short-staffed. However,
her employers soon realized that she was impatient, easily irritated, and lacked motivation. They
even began to receive complaints about her behavior from angry customers. In hiring Elizabeth,
her employers were guilty of a(n) ________.
A) admission error
B) reject error
C) accept error
D) reception error
Answer: C
Page Ref: 321
Objective: 2
Difficulty: Moderate
Classification: Application

56) A ________ selection device is characterized by a proven relationship between the selection
device and some relevant job selection criterion.
A) subjective
B) secure
C) reliable
D) valid
Answer: D
Page Ref: 322
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

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57) A ________ selection device indicates that the device measures the same thing consistently.
A) subjective
B) potent
C) reliable
D) valid
Answer: C
Page Ref: 322
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

58) Application forms ________.


A) are most useful for gathering information
B) include personality and interest forms
C) use actual job behaviors
D) do not predict job performance
Answer: A
Page Ref: 322
Objective: 2
Difficulty: Easy
Classification: Conceptual

59) Tim is a candidate for an automotive mechanic's position. He is asked to deconstruct and
reconstruct part of an engine motor to demonstrate his skill. This is an example of a(n)
________.
A) spatial test
B) performance-simulation test
C) intelligence test
D) psychometric test
Answer: B
Page Ref: 322
Topic: Identifying and Selecting Competent Employees
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application

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60) Assessment centers are best if they are used to select ________.
A) senior management
B) semiskilled workers
C) employees for entry-level positions
D) unskilled workers
Answer: A
Page Ref: 322
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

61) Which of the following is true of written tests as a selection tool?


A) They are not very popular any more.
B) They are relatively good predictors for supervisory positions.
C) They cannot predict job performances.
D) They are mostly used for insurance-related jobs.
Answer: B
Page Ref: 322
Objective: 2
Difficulty: Easy
Classification: Conceptual

62) A ________ includes both positive and negative aspects about the job and the company.
A) structured interview
B) job analysis
C) realistic job preview
D) behavioral preview
Answer: C
Page Ref: 323
Topic: Identifying and Selecting Competent Employees
Objective: 2
Difficulty: Easy
Classification: Conceptual

63) Larry is an HR manager with Merlin Infosystems. He is in charge of recruitment for entry-
level positions in the company. He is of the view that job interviews should provide a realistic
job preview. Which of the following is Larry likely to do during job interviews?
A) explain all the positive points, including the flexible nature of work
B) over-embellish the growth opportunities for employees
C) promise a vibrant, fun work culture at the office
D) intimating the employee about possible overtime
Answer: D
Page Ref: 323
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application
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64) ________ is the process of introducing a new employee to his job and the organization.
A) Orientation
B) Selection
C) Staffing
D) Communicating
Answer: A
Page Ref: 323
Objective: 3
Difficulty: Easy
Classification: Conceptual

65) The two types of orientations are ________.


A) job orientation and procedural orientation
B) work unit orientation and organization orientation
C) work unit orientation and group orientation
D) organization orientation and group orientation
Answer: B
Page Ref: 323
Topic: Identifying and Selecting Competent Employees
Objective: 3
Difficulty: Easy
Classification: Conceptual

66) Which of the following is a type of general training provided by organizations?


A) customer service
B) customer education
C) managing change
D) public speaking
Answer: A
Page Ref: 325
Objective: 3
Difficulty: Easy
Classification: Conceptual

67) Which of the following is a type of specific training provided by organizations?


A) management skills
B) team building skills
C) supervisory skills
D) communication skills
Answer: B
Page Ref: 325
Objective: 3
Difficulty: Easy
Classification: Conceptual

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68) In which of the following traditional training methods are employees made to work at
different jobs in a particular area in order to get exposure to a variety of tasks?
A) training by job rotation
B) on-the-job training
C) mentoring
D) coaching
Answer: A
Page Ref: 325
Objective: 3
Difficulty: Easy
Classification: Conceptual

69) In which of the following traditional training methods do employees work with an
experienced worker who provides information, support, and encouragement?
A) e-learning
B) experiential exercises
C) mentoring and coaching
D) on-the-job training
Answer: C
Page Ref: 325
Topic: Providing Employees with Needed Skills and Knowledge
Objective: 3
Difficulty: Easy
Classification: Conceptual

70) Which of the following training methods involves employees participating in role playing,
simulations, or other face-to-face types of training?
A) experiential exercises
B) job rotation
C) mentoring and coaching
D) on-the-job training
Answer: A
Page Ref: 325
Topic: Providing Employees with Needed Skills and Knowledge
Objective: 3
Difficulty: Easy
Classification: Conceptual

19
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71) ________ is an Internet-based learning where employees participate in multimedia
simulations or other interactive modules.
A) Teleconferencing
B) E-learning
C) Coaching
D) Videoconferencing
Answer: B
Page Ref: 325
Topic: Providing Employees with Needed Skills and Knowledge
Objective: 3
Difficulty: Easy
Classification: Conceptual

72) Which of the following is a technology-based training method?


A) classroom lectures
B) experiential exercises
C) videoconferencing/teleconferencing
D) workbooks/manuals
Answer: C
Page Ref: 325
Topic: Providing Employees with Needed Skills and Knowledge
Objective: 3
Difficulty: Easy
Classification: Conceptual

73) Which of the following methods of performance appraisal allows the evaluator to focus on
vital behaviors that separate effective work performance from ineffective work performance?
A) behaviorally anchored rating scale
B) multiperson comparison
C) critical incident
D) graphic rating scale
Answer: C
Page Ref: 327
Topic: Retaining Competent, High-Performing Employees
Objective: 4
Difficulty: Easy
Classification: Conceptual

20
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74) The ________ method of performance appraisal allows the evaluator to rate employees on an
incremental scale.
A) behaviorally anchored rating scale
B) management by objective
C) graphic rating scale
D) multiperson comparison
Answer: C
Page Ref: 327
Topic: Retaining Competent, High-Performing Employees
Objective: 4
Difficulty: Easy
Classification: Conceptual

75) Which of the following performance appraisal methods is a combination of elements from
the critical incident method and the graphic rating scale method?
A) multiperson comparison
B) 360-degree appraisal
C) management by objective
D) behaviorally anchored rating scale
Answer: D
Page Ref: 327
Topic: Retaining Competent, High-Performing Employees
Objective: 4
Difficulty: Easy
Classification: Conceptual

76) A ________ is a method of performance appraisal where each employee is rated in


comparison to other employees in his work group.
A) multiperson comparison
B) behaviorally anchored rating scale
C) critical incident
D) graphic rating scale
Answer: A
Page Ref: 327
Topic: Retaining Competent, High-Performing Employees
Objective: 4
Difficulty: Easy
Classification: Conceptual

21
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77) The ________ method utilizes feedback from supervisors, employees, and coworkers.
A) management by objective
B) 360-degree appraisal
C) critical incident
D) graphic rating scale
Answer: B
Page Ref: 327
Topic: Retaining Competent, High-Performing Employees
Objective: 4
Difficulty: Easy
Classification: Conceptual

78) A ________ system rewards employees for the job competencies they demonstrate.
A) piece-rate pay
B) skill-based pay
C) variable pay
D) fixed pay
Answer: B
Page Ref: 327
Topic: Retaining Competent, High-Performing Employees
Objective: 4
Difficulty: Easy
Classification: Conceptual

79) Which of the following factors does NOT influence the pay and benefits offered by an
organization?
A) employee ethnicity
B) unionization
C) geographical location
D) management philosophy
Answer: A
Page Ref: 328
Topic: Retaining Competent, High-Performing Employees
Objective: 4
Difficulty: Easy
Classification: Conceptual

80) Downsizing is the planned elimination of ________ in an organization.


A) jobs
B) managerial hierarchy
C) cross-functional teams
D) departments
Answer: A
Page Ref: 328
Topic: Contemporary Issues in Managing Human Resources
Objective: 5
Difficulty: Easy
Classification: Conceptual
22
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81) In providing assistance to employees being downsized, many organizations offer some form
of ________.
A) severance pay
B) piece-rate pay
C) overtime pay
D) merit pay
Answer: A
Page Ref: 329
Topic: Contemporary Issues in Managing Human Resources
Objective: 5
Difficulty: Easy
Classification: Conceptual

82) To help survivors of downsizing cope with the stress, managers provide ________.
A) outplacement assistance
B) severance pay
C) job search assistance
D) employee counseling
Answer: D
Page Ref: 329
Topic: Contemporary Issues in Managing Human Resources
Objective: 5
Difficulty: Easy
Classification: Conceptual

83) Which of the following is most likely to be included in family-friendly benefits provided by
organizations?
A) insurance programs
B) savings accounts
C) time off for school functions
D) retirement benefits
Answer: C
Page Ref: 331
Topic: Contemporary Issues in Managing Human Resources
Objective: 5
Difficulty: Easy
Classification: Conceptual

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84) People who prefer segmentation are more likely to be satisfied and committed to their jobs
when offered options such as ________.
A) job sharing
B) company-sponsored family picnics
C) on-site child care
D) gym facilities
Answer: A
Page Ref: 332
Topic: Contemporary Issues in Managing Human Resources
Objective: 5
Difficulty: Easy
Classification: Conceptual

A Sign of the Times (Scenario)

After considering the option for a long time, Jane's company has finally decided that it must
"right-size," and this meant coming up with a plan for reducing the current size of the workforce
at her manufacturing plant. The job was left to her, and as much as she hated doing this part of
her job, it was necessary for the survival of the company and not just an effort to inflate their
stock price. Jane also appreciated her company's attempt to try do what it takes to enhance
profitability.

85) In her next meeting with the senior management, Jane suggests that they should ignore the
openings created by voluntary resignations and not hire any more people now. This would avoid
much of the pain associated with workforce reduction in the future. This implies that Jane favors
________.
A) transfers
B) attrition
C) layoffs
D) reduced workweeks
Answer: B
Page Ref: 320
Topic: Identifying and Selecting Competent Employees
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application

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86) Jane checks with the different departments and tries to get an idea of employee productivity
at different levels. In consultation with the various managers, she makes a list of the relatively
less productive employees who have not been up to the mark despite training and mentoring.
They decide to terminate their employment contracts for the time being. She meets with each and
every one of them to clarify the position and explain that this may not be a permanent situation,
while encouraging them to look for positions elsewhere. How is Jane trying to reduce the size of
the workforce here?
A) firing
B) layoffs
C) reduced workweeks
D) early retirements
Answer: B
Page Ref: 320
Topic: Identifying and Selecting Competent Employees
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application

87) Another option that Jane feels can be considered is to ask some employees to share jobs or
perform their jobs on a part-time basis. If the company does this, it would be ________.
A) firing employees.
B) encouraging layoffs
C) reducing the workweeks
D) encouraging early retirements
Answer: C
Page Ref: 320
Topic: Identifying and Selecting Competent Employees
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application

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The New Human Resources Manager (Scenario)

Steve is hired as the manager of the human resources department of a local manufacturing
company which is desperately trying to improve its fortunes. This company is unable to retain
good employees, who treat it as a stepping stone until they find better opportunities. Employee
turnover is high and morale is low. Steve is determined to change the situation and turn the
organization's human resources into a competitive advantage and source of pride for the firm.

88) Steve believes that achieving competitive success in business today requires that managers
must understand employee requirements and institute processes that motivate them. He
introduces in-house technical training programs for employees, as well as a provision to
reimburse the tuition fees for employees who take up courses that benefit both the employee and
the organization. Steve is using ________ to motivate and retain employees.
A) performance appraisal methods
B) high-performance work practices
C) mentoring
D) affirmative action
Answer: B
Page Ref: 313
Topic: The Human Resource Management Process
AACSB: Analytic Skills
Objective: 1
Difficulty: Moderate
Classification: Conceptual

89) Steve believes that one of the reasons for the high turnover is that job roles are very poorly
defined, creating confusion in the minds of the employees as to what is expected of them.
However, even after undertaking a thorough job analysis and clearly defining the behaviors
necessary to perform them, Steve finds that employee motivation and turnover is not sufficiently
reduced. Which of the following, if true, could explain this apparent discrepancy?
A) The company has a strong labor union so majority of the decisions are dictated by collective
bargaining.
B) There is a recession in the economy that has severely affected employment levels across the
country.
C) The higher level employees repeatedly overemphasize the company's positive points while
interviewing candidates.
D) The company does not have good decruitment policies in place.
Answer: C
Page Ref: 323
Topic: Identifying and Selecting Competent Employees
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application

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90) The top management of the company decides that the performance appraisal process needs to
be changed. They ask Steve to make use of a rating scale that will rate the employees' actual job
behaviors. The managers are asking Steve to use a ________.
A) 360-degree feedback
B) management by objective method
C) behaviorally anchored rating scale
D) graphic rating scale
Answer: C
Page Ref: 327
Topic: Retaining Competent, High-Performing Employees
AACSB: Analytic Skills
Objective: 4
Difficulty: Moderate
Classification: Application

91) Steve recommends that employees should be compensated according to their competencies,
rather than their designations. Employees should be financially rewarded when they gain more
knowledge and learn new processes that are relevant to the job, even if the employee is at a
lower level. This implies that Steve favors a ________.
A) variable pay system
B) fixed pay system
C) profit-based pay system
D) skill-based pay system
Answer: D
Page Ref: 327
Topic: Retaining Competent, High-Performing Employees
AACSB: Analytic Skills
Objective: 4
Difficulty: Moderate
Classification: Application

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The New Sales Manager (Scenario)

Wade McKenzie is a new sales manager for The Potomac Group, a healthcare finance consulting
firm, based in the mid-South. In addition to performing his regular duties he has also been asked
to evaluate the performance of his subordinates and present a report to his superiors.

92) In his report, Wade described the strengths and weaknesses of each of his subordinates. He
made a note of their past performances and the potential they displayed. He even provided
suggestions for their improvements. Wade is using the ________ method of conducting a
performance appraisal.
A) graphic rating scale
B) written essay
C) multiperson comparison
D) behaviorally anchored rating scale
Answer: B
Page Ref: 327
Topic: Retaining Competent, High-Performing Employees
AACSB: Analytic Skills
Objective: 4
Difficulty: Moderate
Classification: Application

93) Six months into Wade's tenure as sales manager, he hosts his first regional sales meeting.
During the course of the meeting, Wade meets individually with his employees and shows them a
chart of their sales numbers for each month compared to their budgeted quota for the year to
date. Additionally, Wade and each employee set mutually agreed-upon budget goals for the
remaining six months of the fiscal year. Wade is utilizing the ________ method of performance
appraisal.
A) BARS
B) critical incident
C) MBO
D) multiperson comparison
Answer: C
Page Ref: 327
Topic: Retaining Competent, High-Performing Employees
AACSB: Analytic Skills
Objective: 4
Difficulty: Moderate
Classification: Application

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94) Explain why human resource management (HRM) is important to organizational success.
Answer: HRM is an important task that involves having the right number of the right people in
the right place at the right time.
A major HRM challenge for managers is ensuring that their company has a high-quality
workforce. Getting and keeping competent and talented employees is critical to the success of
every organization.
HRM is important for three main reasons.
First, various studies have concluded that an organization's human resources can be a significant
source of competitive advantage. The Human Capital Index, a comprehensive study of over
2,000 global firms has concluded that people-oriented HR gives an organization an edge by
creating superior shareholder value.
Second, HRM is an important part of organizational strategies. In order to achieve competitive
success through people, managers must change the way they think about their employees and
also the way they view the work relationship. Managers must stop treating people as costs to be
minimized or avoided. Rather, they should treat them as partners.
Finally, it has been found that the way organizations treat their people significantly impacts the
organizational performance. For instance, one study reported that significantly improving an
organization's HRM practices could increase its market value by as much as 30 percent.
Page Ref: 312-313
Topic: The Human Resource Management Process
Objective: 1
Difficulty: Moderate
Classification: Conceptual

95) Explain high-performance work practices and list a few examples of such practices.
Answer: Work practices that lead to both high individual and high organizational performance
are known as high-performance work practices. These practices involve improving the
knowledge, skills, and abilities of employees; increase their motivation; reduce loafing on the
job; and enhance the retention of quality employees.
High-performance work practices include:
a. Self-managed teams
b. Decentralized decision making
c. Training programs to develop knowledge, skills, and abilities
d. Flexible job assignments
e. Open communication
f. Performance-based compensation
g. Staffing based on personjob and personorganization fit
h. Extensive employee involvement
i. Giving employees more control over decision making
j. Increasing employee access to information
Page Ref: 313
Objective: 1
Difficulty: Moderate
Classification: Conceptual

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96) Write a short essay on human resource planning.
Answer: Human resource (HR) planning is the process by which managers ensure that they have
the right number and kinds of capable people in the right places and at the right times. This
allows the organization to avoid sudden people shortages and surpluses. The process of HR
planning entails two steps: (1) assessing current human resources, and (2) meeting future HR
needs.
Current Assessment - Managers begin the HR planning by inventorying current employees. This
inventory usually includes information on employees such as name, education, training, prior
employment, languages spoken, special capabilities, and specialized skills.
Job analysis is an important part of current assessment. Job analysis is an assessment that defines
a job and the behaviors necessary to perform it. Information for a job analysis is gathered by
directly observing individuals on the job, interviewing employees individually or in a group,
having employees complete a questionnaire or record daily activities in a diary, or having the job
managers identify a job's specific characteristics.
Using the information from job analysis, managers develop or revise job descriptions and job
specifications. A job description is a written statement describing a job, job content,
environment, and conditions of employment. A job specification states the minimum
qualifications that a person must possess to successfully perform a given job. It identifies the
knowledge, skills, and attitudes needed to do the job effectively. Both the job description and job
specification are important documents when managers begin recruiting and selecting.
Meeting future HR needs - Future HR needs are determined by the organization's mission, goals,
and strategies. Demand for employees also results from demand for the organization's products
or services.
Assessing current capabilities and future needs allow managers to estimate the areas in which the
organization will be understaffed or overstaffed.
Page Ref: 318-319
Objective: 2
Difficulty: Moderate
Classification: Conceptual

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97) What is recruitment? What are the commonly used recruitment sources?
Answer: Recruitment is the process of locating, identifying, and attracting capable applicants.
Commonly used recruitment sources are:
a. The Internet - This reaches a large number of people and can get immediate feedback. But, it
also generates many unqualified candidates.
b. Employee referrals - The knowledge about the organization is provided by the current
employees. This can generate strong candidates because a good referral reflects on the
recommender. But this may not increase the diversity and mix of employees in the organization.
c. The company Web site - This has a wide distribution. It can be targeted to specific groups, but
on the flip side, it also generates many unqualified candidates.
d. College recruiting - This allows access to large centralized body of candidates. But, this source
can be only used for filling entry-level positions in the organization.
e. Professional recruiting organizations - They have a good knowledge of industry challenges
and requirements. But, on the negative side, they have very little commitment to specific
organizations.
Page Ref: 320
Objective: 3
Difficulty: Moderate
Classification: Conceptual

98) Define decruitment and list the various decruitment options.


Answer: Decruitment is the process by which an organization reduces its workforce. The various
decruitment options available to an organization are:
a. Firing - This refers to permanent involuntary termination of employees.
b. Layoffs - These refer to temporary involuntary termination of employees. Layoffs may last
only for a few days or extend up to years.
c. Attrition - This is achieved when an organization does not fill the openings created by
voluntary resignations or normal retirements of its employees.
d. Transfers - This happens when employees are moved either laterally or downward. This
usually does not reduce costs but, it can reduce intraorganizational supplydemand imbalances.
e. Reduced workweeks - This is achieved by having employees work fewer hours per week,
share jobs, or perform their jobs on a part-time basis.
f. Early retirements - Here, the organization provides incentives to older and more senior
employees for retiring before their normal retirement date.
g. Job sharing - This is achieved by having employees share one full-time position.
Page Ref: 319-320
Objective: 2
Difficulty: Moderate
Classification: Conceptual

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99) In a short essay, define selection and list some of the selection tools used by managers.
Answer: Selection is the process of screening job applicants to determine who is best qualified
for the job in question. It involves predicting which applicants will be successful if hired. A
manager may use any of the following selection tools:
a. Application Forms - These are almost universally used. These are most useful for gathering
information and can help predict job performance. But, it is difficult to create an application form
that can give all the required information.
b. Written Tests - The manager has to see to it that the tests are job related. The tests include
intelligence, aptitude, ability, personality, and interest tests. These tests are popular. They are also
a relatively good predictor for supervisory positions.
c. Performance-Simulation Tests - These kinds of tests use actual job behaviors. Work sampling
is a type of performance-simulation test that tests the applicants on tasks associated with the job.
Work sampling is appropriate for selecting people for routine or standardized work. Assessment
centers are performance-simulation tests that simulate jobs. Assessment centers are appropriate
for evaluating managerial potential.
d. Interviews - Like application forms, these are also universally used. The interviewer must
know what can and cannot be asked in the interview.
e. Background Investigations - These are used for verifying application data and reference
checks.
f. Physical Examinations - These are best suited to select candidates for jobs that have certain
physical requirements. These are mostly used for insurance purposes.
Page Ref: 321-322
Objective: 2
Difficulty: Moderate
Classification: Conceptual

100) What is orientation? Discuss the two types of orientation.


Answer: The process of introducing a person to his new job is known as orientation.
There are two types of orientation: work unit orientation and organization orientation.
Work unit orientation familiarizes the employee with the goals of the work unit, clarifies how his
or her job contributes to the unit's goals, and includes an introduction to his or her new
coworkers. Organization orientation informs the new employee about the company's goals,
history, philosophy, procedures, and rules.
Page Ref: 323-324
Topic: Providing Employees with Needed Skills and Knowledge
Objective: 3
Difficulty: Easy
Classification: Conceptual

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101) Discuss the various traditional and technology-based training methods that managers use to
improve employee skill sets.
Answer: The various traditional training methods are:
a. On-the-job training Employees learn how to do tasks simply by performing them, typically
after an initial introduction to the task.
b. Job rotation - Employees work at different jobs in a particular area and thus, gain exposure on
variety of tasks.
c. Mentoring and coaching - Employees work with an experienced worker who provides
information, support, and encouragement.
d. Experiential exercises - Employees participate in role playing, simulations, or other face-to-
face types of training.
e. Workbooks/manuals - Employees refer to training workbooks and manuals for information.
f. Classroom lectures - Employees attend lectures designed to convey specific information.
The various technology-based training methods are:
a. CD-ROM/DVD/videotapes/audiotapes/podcasts - Employees listen to or watch selected media
that convey information or demonstrate certain techniques.
b. Videoconferencing/teleconferencing/satellite TV - Employees listen to or participate as
information is conveyed or techniques demonstrated.
c. E-learning - This is an Internet-based learning where employees participate in multimedia
simulations or other interactive modules.
Page Ref: 325
Topic: Providing Employees with Needed Skills and Knowledge
Objective: 3
Difficulty: Moderate
Classification: Conceptual

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102) List the seven major performance appraisal methods.
Answer: The seven major performance appraisal methods are:
a. Written essay - This is a technique in which an evaluator writes out a description of an
employee's strengths and weaknesses, past performance, and potential. He also makes
suggestions for improvement.
b. Critical incidents - This focuses the evaluator's attention on critical or key behaviors that
separate effective from ineffective job performance.
c. Graphic rating scale - This method lists a set of performance factors. The evaluator goes down
the list and rates each employee on each factor using an incremental scale.
d. BARS - Behaviorally Anchored Rating Scales (BARS) combine major elements from the
critical incident and graphic rating scale approaches. The appraiser rates the employee according
to items along a numerical scale. The items here are examples of actual job behaviors.
e. Multiperson comparison - This approach compares one person's performance with that of
others.
f. MBO - Management by objectives (MBO) is also an effective performance appraisal method.
Here, employees are evaluated on specific goals that were established jointly by them and the
manager.
g. 360-degree appraisal - This method utilizes feedback from supervisors, employees, and
coworkers of the employee.
Page Ref: 327
Topic: Retaining Competent, High-Performing Employees
Objective: 4
Difficulty: Moderate
Classification: Conceptual

103) What can managers do to manage downsizing?


Answer: Downsizing or layoffs is the planned elimination of jobs in an organization. When an
organization has too many employeeswhich can happen when it's faced with an economic
recession, declining market share, too aggressive growth, or poorly managed operationsone
option for improving profits is to eliminate some of those excess workers.
In order to manage downsizing, managers should:
a. communicate openly and honestly - Managers must inform those being let go as soon as
possible. They should also tell the surviving employees the new goals and expectations and also
explain the impact of layoffs to them.
b. follow all the laws regulating severance pay or benefits.
c. provide support/counseling for surviving employees.
d. reassign roles according to individuals' talents and backgrounds.
e. focus on boosting morale - Managers should offer individualized reassurance, continue to
communicate, especially one-on-one, and remain involved and available.
f. have a plan for the empty office spaces/cubicles so it is not depressing for surviving
employees.
Page Ref: 329
Objective: 5
Difficulty: Moderate
Classification: Conceptual

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Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall