Johan, a manager of a construction company, believes that a
piecework plan benefits all types of work areas. However, his colleague,
George, argues that a piecework plan is not suitable for a few complex jobs and
that it might have a negative impact on the work production. Which of the
following statements, if true, strengthens George’s argument?
It is easy to
measure the output of managers using a piecework plan.
A piecework plan
is not suitable for very routine, standardized jobs.
Complex jobs
involve the coordination of many team members to complete tasks.
Using a piecework
plan helps employee empowerment.
Incentive plans
do not impact productivity when work involves complex jobs.
The Rudd-Mitchell organization uses the Scanlon plan to
provide incentives to its employees. The workers produce electrical components
worth $5 million. The target ratio set by the organization is 30%. The
employees will be given a bonus if the actual labor costs are less than:
$0.5 million.
$1 million.
$1.5 million.
$2 million.
$2.5 million.
Ray Inc., a shoe manufacturer in Virginia, opens a new
facility in Texas. Shelly, the operations manager, prefers to give the new
employees better wages than benefit packages. Tanya, the HR manager, disagrees
with her. Which of the following, if true, will strengthen Tanya’s argument?
The income tax
rate is higher in Texas than it is in Virginia.
Benefits are more
complex to understand by employees than pay structures.
Benefits give
lesser control over the advantages they receive from them than wages.
Higher cash
compensation gives employees more purchasing power in Texas.
Different
employees look for different types of benefits, which makes HR’s tasks
complicated.
The board of directors of LiveCrop Industries decides to
search the employees on the job. However, the head of the HR department, Heidi,
believes that it could maximize the likelihood of a lawsuit due to privacy
concerns. Which of the following would strengthen Heidi’s belief?
If the search is
a random one, and it is clarified that no one has been accused of misdeeds
If the search
policies and consequences have been publicized
If the search is
done only after gathering consent from employees
If the search is
done only on employees and not supervisors
If the search
information is shared only with those who need it
Bella, an employee at Lavender Holdings, was suspended for
two weeks for drug use. Six months later, she was fired from the job because
her productivity did not show any improvement even after undergoing treatment
for drug use. Which of the following is the form of discharge experienced by
Bella?
Involuntary
turnover
Voluntary
turnover
Procedural
justice
Progressive
discipline
Open-door policy
Spark Inc., a manufacturing company, hires employees
belonging to the age group of 14 to 25. However, the company ensures that
employees belonging to the age group of 14 to 18 are employed in nonhazardous
environment and for limited time periods. In this scenario, which of the
following laws is complied by the company?
Laws governing
equal employment opportunity
Fair Labor
Standards Act (FLSA) of minimum wage
Fair Labor
Standards Act (FLSA) of overtime
Laws governing
prevailing wages
Fair Labor
Standards Act (FLSA) of child labor
Zohrina is a top manager at her current company. However,
she is leaving the company for a better job at a competing firm. Which of the
following forms of turnover is illustrated in this scenario?
Involuntary turnover
External turnover
Voluntary
turnover
Internal turnover
Dysfunctional
turnover
Eli, a graduate in human resource management, believes that
an organization that follows the system of progressive discipline produces
responses in written form at every step of the process. However, his classmate
Ivanna argues that written responses may not be produced at every step. Which
of the following would strengthen Ivanna’s argument?
If the
organization communicates a temporary suspension for the offending employee
If the
organization responds to the second of a series of unacceptable behaviors
If the
organization responds to the first of a series of offenses
If the
organization communicates a response with a threat of temporary suspension
If the
organization does not follow the principles of the hot-stove rule
Ravi is the CEO of a magazine publishing company. He wants
to diversify his workforce and bring in more ethnically diverse employees into
his company as he believes that exposure to people from different cultures is
likely to increase the creativity of his workforce. Which of the following
types of plans should Ravi adopt to allow flexibility?
Defined-benefit
plan
Cafeteria-style
plan
Vested-benefit
plan
Worker’s
compensation plan
Cash compensation
plan
Which of the following is a function of elder care benefits
offered by organizations?
They provide
direct financial assistance.
They provide tax
exemptions on medical bills of the dependent elders.
They set up
elderly care facilities close to the workplace.
They provide
information, referrals, and support.
They provide
vouchers and discounts to help employees access the existing elderly care
facilities
Vincent has just been discharged from his job after the
company he was working for started downsizing. Confused about his state of
joblessness, Vincent threatens to sue the company for reparations. Which of the
following programs can help the company avoid such situations from exiting employees?
Outplacement
counseling
Employee
assistance program
Benchmarking
Progressive
disciplining program
Expatriation
1. The top
management at Zion Manufacturers decides to search its employees on the job.
However, Raul, Zion’s HR manager, believes that it could generate privacy
issues. Which of the following would strengthen Raul’s belief and maximize the
likelihood of a lawsuit?
If the search is
done after asking for the employees’ consent
If the search
policy is publicized and applied and carried out consistently
If the search
includes random legal and permissible searches of desks, lockers, and toolboxes
If the search is
a random check, and it is clarified that no one has been accused of misdeeds
If the search
involves communications such as e-mails that are searched without probable
cause
1.5 points
Question 49
1. Carol is
a single mother who works full-time and attends to the needs of her two young
children. Carol has opted to work from home for a short period after one of her
children suffered a fractured arm while playing soccer. Even though she works
from home she often feels a lot of pressure in balancing her work and looking
after her children. Which of the following is being experienced by Carol?
Role ambiguity
Role carve-out
Role conflict
Role overload
Role underload
1.5 points
Question 50
1. MediaTxt
Corp. is an organization that follows the process of progressive discipline.
The organization communicates with Leila, an employee, about unacceptable
behavior and responds to a series of her offenses. Which of the following would
be the step that immediately precedes a written warning for Leila along with a
threat of temporary suspension?
A letter
informing about her demotion
An unofficial
spoken warning
An official
written warning
A termination
letter
A letter
informing Leila about her transfer
1.5 points
Question 51
1. Vactin
Motors, an automobile company, ties individual performance, profits, and other
measures of employees’ success to a particular form of pay. This form of pay is
influential because the amount paid is linked to certain predefined behaviors
or outcomes. Which of the following is exemplified in this scenario?
Minimum wage
Overtime pay
Incentive pay
Piecework rates
Bonus payment
1.5 points
Question 52
1. The two
types of people in the organization who most affect an individual’s job
satisfaction are:
subordinates and
supervisors.
supervisors and
family members.
co-workers and
subordinates.
supervisors and
co-workers.
supervisors and
upper-level managers.
1.5 points
Question 53
1. Kelly is
a new employee of a company, and her company provides a group insurance plan
that she can enroll in. Her friend, Michael, suggests that Kelly would be able
to save money if she chooses to purchase an individual insurance plan over the
company’s group insurance plan. Which of the following weakens Michael’s
argument?
Individual plans
are typically offered only to senior executives.
Rates for group
insurance are typically lower than that of individual policies.
Kelly will not be
eligible for other benefits if she does not enroll in a group insurance plan.
Employees get
more for their money when they receive insurance as a group benefit.
Kelly will get
more take-home pay if she opts for a group insurance plan.
1.5 points
Question 54
1. Based on
the expectation that two people in conflict should first try to arrive at a
settlement together, organizations have a policy of making managers available
to hear complaints. Typically, the first “open door” is that of the
employee’s:
immediate
supervisor.
choice of a
neutral party.
peers.
immediate
subordinates.
personal
counselor.
1.5 points
Question 55
1. Steve and
Cathy are managers at an advertising firm. Steve proposes that the company adopt
defined-benefit plans to attract and retain its employees, and Cathy opposes
his view. Which of the following statements will strengthen Steve’s argument?
All the employees
are under the age of 30.
The nature of
work demands college graduates.
The firm employs
experienced, older people.
The firm employs
young and creative minds.
The firm mainly
employs freelancers.
1.5 points
Question 56
1. If peer
review does not lead to a compromise, a neutral party from outside the
organization hears the case and tries to resolve the conflict and attempts to
reach a compromise. This process is called:
mediation.
carve-out.
open-door policy.
fair
representation.
attrition.
1.5 points
Question 57
1. Employees
should participate in pay-related decisions. This will most likely help in the
success of incentive plans, and the plans are more likely to influence employee
behavior as desired. Which of the following statements weakens this argument?
Employees will
make decisions that are in their best interests at the expense of the
organization’s interests.
It is difficult
to monitor an employee’s work output when decisions are made by the employee.
When employees
become more involved in pay decisions, they neglect the work assigned to them.
Employees should
be a part of the human resource department to be involved in pay-related
decisions.
It will have a
negative impact on the top-level management of the company.
1.5 points
Question 58
1. Which of
the following statements is true about standard hour plans?
They encourage
employees to focus exclusively on customer service.
They succeed only
for employees who are not motivated by money.
They encourage
employees to focus mainly on quality.
In terms of their
pros and cons, they are very different from piecework plans.
They encourage
employees to work as fast as they can.
1.5 points
Question 59
1. A(n)
_____ refers to the meeting of a departing employee with the employee’s supervisor
and/or a human resource specialist to discuss the employee’s reasons for
leaving.
exit interview
affirmative
action
carve-out
observation
interview
summary dismissal
1.5 points
Question 60
1. Which of
the following statements is true about pay ranges?
Pay ranges are
most common for blue-collar jobs and those covered by union contracts.
Pay ranges are
widest for employees who are at lower levels in terms of their job evaluation
points.
Pay ranges
generally are designed so that they do not overlap.
The market rate
or the pay policy line generally serves as the midpoint of a range for the job.
The less overlap,
the more flexibility in transferring employees among jobs.
1.5 points
Question 61
1. Franco,
an employee at Fundz Corp., arrives late at the office on a Monday morning due
to a personal emergency. His manager fires him, although this was the first
instance of Franco arriving late at work. In this scenario, Franco would conclude
a lack of _____ in dealing with employees who arrive late at work.
arbitration
laissez faire
outcome fairness
benchmarking
interactional
justice
1.5 points
Question 62
1. Which of
the following must be true for a pension plan to be deemed as a qualified plan?
It must not
discriminate in favor of an organization’s highly compensated employees.
It must not be a
cafeteria-style plan.
It should include
elder care and child care.
It has to be a
defined-contribution plan.
It
has to be a defined-benefit plan that requires most of the funding to come from
the employer.
1.5 points
Question 63
1. Which of
the following is an advantage of group incentives?
They always use a
broad range of performance measures.
They result in
groups trying to outdo one another in satisfying customers and thus create
healthy competition.
They encourage
employees to achieve their goals irrespective of the cooperation of team
members.
They reward the
performance of all the employees at a facility.
They always
result in cooperation among team members without any competition.
1.5 points
Question 64
1. In which
of the following situations will workers become eligible for unemployment
benefits?
When they have
worked only for a few days
When they are out
of work because they are sick
When they are
discharged because of willful misconduct
When they are
actively seeking work
When they are out
of work because of a labor dispute
1.5 points
Question 65
1. Straight
commission plans are plans which:
provide a
straight salary to employees.
are useful when
the organization wants salespeople to concentrate on listening to customers.
help to attract
risk-averse employees.
are common among
insurance and real estate agents.
are uncommon
among car salespeople.
1.5 points
Question 66
1. A pay
policy line:
shows the
mathematical relationship between the minimum pay and the maximum pay in an
organization.
can be generated using
a statistical method called regression analysis.
requires
market-pay-rate data on all jobs in the organization.
can seldom
provide information on the market pay level for a given job evaluation.
reflects the pay
structure in the market, which always matches rates in the organization.
1.5 points
Question 67
1. Which of
the following is a drawback of a minimum wage in terms of social policy?
It assumes people
will take differences in pay into account when they choose a career.
It is one and a
half times the employee’s usual hourly rate.
It applies only
to the hours worked beyond 40 in one week.
It places the
employer at an economic disadvantage relative to employers that pay the living
wage.
It tends to be
lower than the earnings required for a full time worker to rise above the
poverty level.
1.5 points
Question 68
1. Small
Leaf Resort and Cresgrove Resort are established hotels in the hospitality
industry. However, Small Leaf Resort has a larger net profit than that of
Cresgrove Resort. In order to remain financially viable in the hospitality
market, Cresgrove Resort decides to charge more for their rooms and other
services. In this scenario, which of the following best explains the reason
behind Cresgrove Resort incurring losses?
Cresgrove Resort
has high labor-related expenses.
Cresgrove Resort
hires employees belonging to the age group of 15 to 20.
Cresgrove Resort
has better quality and customer service than Small Leaf Resort.
Cresgrove Resort
considers its employees as resources.
Cresgrove
Resort’s compa-ratio is less than 1.
1.5 points
Question 69
1. Which of
the following is a reason for ESOPs’ popularity?
ESOPs provide tax
advantages to employers.
ESOPs provide
very high risk-free retirement income.
Employees can use
ESOPs to buy their company during financial crises.
ESOPs must invest
at least 51 percent of its assets in the company’s own stocks.
The employees are
provided with many more stocks than they actually own.
1.5 points
Question 70
1. John is
the head of the insurance claims department. John works for longer hours than
his subordinates. However, John is not paid overtime for working more than 40
hours per week. Under the FLSA, which of the following will justify the
organization’s decision not to give John overtime pay?
John is not a
U.S. citizen.
John comes from
an economically strong background.
John is
unmarried.
John is
considered as an exempt employee.
John has lower
educational qualifications than his subordinates.
1.5 points
Question 71
1. Token
Inc. is an envelope manufacturer based in Dallas. The employees of the
organization receive incentive pay based on the amount of work produced. If the
output of an employee is more than the average production volume, then the
organization pays an incentive in addition to wages and salaries. In this case,
which of the following incentives is offered by Token Inc.?
Piecework rate
Minimum wage
Employee labor
Training stipend
Group bonus
1.5 points
Question 72
1. Under the
Americans with Disabilities Act, which of the following employers is most
likely to face legal challenges?
An employer who
switches to a risk-based policy after hiring a disabled employee
An employer who
sets guidelines for using waivers
An employer who
discriminates against workers over age 40 in providing pay or benefits
An employer who
has risk-based insurance and then hires an employee with a disability
An employer who
does not have risk-based insurance
1.5 points
Question 73
1. _____
refers to an incentive pay in which the wage paid is higher when a greater
amount is produced.
Profit sharing
Differential
piece rate
Gain sharing
Scanlon pay
Merit pay
1.5 points
Question 74
1. Which of
the following is an arrangement in which the organization distributes shares of
stock to all its employees by placing it in a trust?
Stock options
Employee stock
ownership plan
Scanlon plan
Collective stock
options
Profit sharing
plan
1.5 points
Question 75
1. Helen is
a marketing manager at a local equipment manufacturer. She and her husband know
that saving for college for their 4-year-old twin boys is a challenge. Her
employer recently implemented a college tuition plan that lets parents and
other family members defer taxes on their contributions to the plan. What is
the type of plan recently implemented?
529 savings plan
401k savings plan
2015 college
tuition plan
U.S. saving bonds
plan
TD Ameritrade
college tuition plan
1.5 points
Question 76
1. Sally, a
supervisor at RandomThoughts Corp., believes that finding a new job is rarely
easy and can take months, so her employees are very cautious about quitting.
Ursula, Sally’s manager, however, argues that some employees may be unable to
resolve problems without leaving the company altogether. Which of the following
situations is most likely to strengthen Ursula’s view?
If Sally’s
subordinates are dissatisfied because they find their pay too low
If Sally’s
subordinates are dissatisfied because they find her unfair
If Sally fires an
employee because of violating public policy
If Sally fires an
employee because of violating an antidiscrimination laws
If Sally’s
employees are poached and employed by a rival company that offers them higher
salaries
1.5 points
Question 77
1. Retention
bonuses refer to:
the special
reward programs used to satisfy the lower and middle-level managers.
the bonuses
provided to union members to withhold a strike.
the bonuses
provided to employees who take long leaves without pay.
annual incentives
paid to daily wage workers to remain in the organization.
one-time
incentives paid in exchange for remaining with the company.
1.5 points
Question 78
1. Rita, who
recently moved to a new city, evaluates several job offers. Owing to her recent
medical issues, she wants to choose a health care provider and not rely on the
providers in a specific insurance network. Which of the following health care
plans is Rita most likely to find suitable for her needs?
A managed care
plan
A health
maintenance organization
A preferred
provider organization
An employee
wellness program
A flexible
spending account
1.5 points
Question 79
1. Identify
the correct statement about job satisfaction.
It is usually
based on a complete measurement of situations.
The view about
which values are important is universal among employees.
It is based on
perception.
It is objective
in nature.
Similar
circumstances produce similar levels of job satisfaction.
1.5 points
Question 80
1. Employees
with negative affectivity are inclined to:
experience high
job satisfaction.
experience
feelings of anger, contempt, fear, and guilt.
seek change in
socially acceptable ways.
look for the good
in others, but not themselves.
think highly of
themselves, but not others.
1.5 points
Question 81
1. SalientVision
Inc., a construction company, receives more than $2,000 in federal money. The
company pays its employees at rates at least equal to the prevailing wages in
the area. The calculation of prevailing rates by the company is based on 30% of
the local labor force. In this case, which of the following laws does the
company comply with?
The Lloyd-La
Follette Act of 1912
The
Smith-Connally Act of 1943
The Julie Jargon
Act of 1940 and the Eric Morath Act of 1945
The Davis-Bacon
Act of 1931 and the Walsh-Healy Public Contracts Act of 1936
The
Humphrey-Hawkins Full Employment Act
1.5 points
Question 82
1. Although
labor and product markets limit organizations’ choices about pay levels, there
is a range within which organizations can make decisions. The size of this
range depends on the:
minimum and
maximum wages fixed by the government.
pay of federal
contractors.
organization’s
competitive environment.
quality of
employees.
organization’s
global reputation.
1.5 points
Question 83
1. Team
awards differ from group bonuses in that they:
are typically
plant-wide group incentive programs.
make payments in
company stock rather than in cash.
are more likely
to use a broad range of performance measures.
encourage
competition among individual employees to achieve higher bonuses.
give more
importance to organizational performance than small groups’ performances.
1.5 points
Question 84
1. Which of
the following statements is true of the FLSA requirements for overtime pay?
The overtime rate
is one and a half times the employee’s hourly rate, excluding any bonuses or
piece-rate payments.
Time worked
includes hours spent on production or sales, but not on activities such as
attending required classes, cleaning up the work site, and so on.
Overtime must be
paid whether or not the employer specifically asked or expected the employee to
work the extra hours.
Everyone is
eligible for overtime pay.
Most workers paid
on an hourly basis are exempt and therefore not subject to the laws governing
overtime pay.
1.5 points
Question 85
1. Under the
Older Workers Benefit Protection Act of 1990, which of the following guidelines
must employers follow when asking employees to sign early-retirement waivers?
Inform employees
that they may consult with a lawyer before signing.
Allow employees
no more than 48 hours before signing the retirement agreement.
Make Age
Discrimination in Employment Act (ADEA) waivers compulsory.
Provide lesser
benefits than would otherwise be available upon retirement.
Provide employees
with an annual bonus and health insurance after the retirement.
1.5 points
Question 86
1. In the
role analysis technique, the people who directly interact with the person who
is filling a new role is referred to as the person’s:
role occupants.
role managers.
role set.
role sitters.
benchmarkers.
1.5 points
Question 87
1. An
organization wants to provide its employees information about what its goals
are and what it expects employees to accomplish. It is planning to implement an
incentive plan that helps employees understand the organization’s goals. Which
of the following should be used by this organization?
A retention bonus
A piecework rate
system
A merit pay
system
The Scanlon plan
A balanced
scorecard
1.5 points
Question 88
1. When an
employee’s pay is calculated as a percentage of sales, it is referred to as:
commission.
gain sharing.
merit plan.
variable wage
plan.
profit sharing.
1.5 points
Question 89
1. Johanna,
a professional counselor, was recently asked to talk to an ex-employee of
Highlanders Corp., a manufacturing company, about his performance issues.
Johanna talked to this ex-employee about how his skills set did not allow a
good fit in the manufacturing industry. Into which of the following roles does
Johanna fit best?
CEO of
Highlanders Corp.
Mediator
Arbitrator
Outplacement
counselor
Volunteer at
Highlanders Corp.’s employee assistance program
1.5 points
Question 90
1. Jack has
to decide between two jobs that provide equal pay. He decides to compare the
healthcare benefits provided by both jobs to arrive at a decision. He wants to
choose the job that offers him a flexible spending account over the job that
offers him managed care. Which of the following, if true, strengthens his
decision?
With managed
care, the insurer makes decisions about health care, which helps avoid
unnecessary procedures.
Money in flexible
spending accounts is not taxed, so employees get more take-home pay.
In flexible
spending accounts, employees will get back the money they do not spend.
Flexible spending
account is not helpful if employees have unpredictable health care expenses.
To avoid taxation
of the money in a flexible spending account, the money must meet IRS
requirements.
1.5 points
Question 91
1. Capnos
Inc., an insurance company incurred losses of about $100 million. To analyze
its losses and to overcome them, the company began comparing its own practices
against those of its successful competitors. In this scenario, which of the
following procedures is adopted by Capnos?
Benchmarking
Job evaluation
Regression
analysis
Delayering
Pay structuring
1.5 points
Question 92
1. John and
Lisa hold the same position at Flyberry Electronics. However, John earns more
than Lisa. In the context of pay structure, which of the following justifies
the organization’s decision to pay John more than Lisa?
John works the
night shift, and night hours are less desirable for most workers.
John is a U.S.
citizen; therefore his pay should be higher than non-Americans.
Lisa is pregnant;
therefore her productivity is assumed to be lower.
John is
physically disabled; therefore he should be paid more than Lisa.
Lisa lives in a
location where living expenses are higher.
1.5 points
Question 93
1. Which of
the following is a characteristic of delayering?
It increases an
organizations’ flexibility.
It increases the
opportunities for promoting employees.
It sets pay
according to the employees’ level of knowledge.
It encourages a
climate of learning.
It decreases the
flexibility of managers in making assignments.
Question 94
1. Triano
Brothers, an insurance firm, follows an administrative procedure for measuring
the relative worth of its jobs. The organization does this by assembling and
training a committee consisting of people familiar with the jobs. The committee
includes a human resource specialist and, if the budget permits, an outside consultant
is hired. Which of the following is exemplified in this scenario?
Job rotation
Job evaluation
Merit pay system
Job enrichment
Work structure
Question 95
1. Which of
the following is a disadvantage of broad bands?
They reduce managers’
flexibility in making assignments.
They always
result in pay decreases.
They increase the
number of levels in the organization’s job structure.
They reduce the
opportunities for promoting employees.
They discourage
employees from gaining valuable experience through lateral career moves.
Question 96
1. According
to the FLSA, which of the following individuals is most likely a nonexempt
employee?
The CEO
A senior
administrative employee
An hourly paid
employee
An HR manager
The director of
marketing
Question 97
1. Songreen
Inc., a firm that manufactures ready-to-eat soups, offers incentives based on
an employee’s performance rating and the employee’s compa-ratio. Which of the
following payment plans is exemplified in this scenario?
Piecework plan
Merit pay
Standard hour
plan
Differential plan
Skill-based plan
Question 98
1. Zahra is
an employee at Colorz Inc. She loves gossiping about her colleagues during
office hours, which causes her to receive a reprimand by her supervisor. A few
days later, the same supervisor fires Gunther, another subordinate, from work
for a similar reason. The employees reporting to this supervisor are most
likely to conclude the supervisor demonstrates a lack of _____ in dealing with
employees who gossip at work.
benchmarking
interactional
justice
laissez faire
outcome fairness
arbitration
Question 99
1. What are
vesting rights?
Ability of
retired employees to retain their seniority if they return to work at their
former employer.
Government
commitment to provide
