1) Which of the following is NOT true of the Internet Revolution as it relates to HRM?

a. Companies now must pay particular attention to legal issues concerning informa-

tion passed over the Internet.

b. Written communication skills must be increased.

c. It is a major factor in helping employees find employers, and vice-versa, through

job finding sites.

d. Online corporate training is surpassing classroom training.

e. Cross-cultural understanding is not as important, for the Internet is its own com-

munity with its own culture.

2) The need for skilled employees in the United States:

a. has intensified in the service sector, which has produced more jobs than manu-


b. has decreased as the number of service, technical, and managerial jobs requiring

a college education has declined.

c. has intensified in manufacturing, as the turnaround in the “rust belt” has resulted

in a 20% decrease in jobs.

d. has decreased due to increased immigration of highly educated information work-


e. is easing as both private and government training programs’ funding has resulted

in a highly trained workforce.

3) You are talking with a manager about one of his employees, Tom. The manager

describes Tom as a person who has a strong desire to do the best possible job and put

in the maximum effort to perform his assigned tasks. The manager is describing


a. abilities.

b. productivity level.

c. motivation.

d. career path.

e. capabilities.

4) Molly heads a large company that has just experienced a major brain drain. She

immediately increases compensation to new employees and gives each employee with

over 10 year experience an extra 3 days of paid vacation per year. This is an example


a. strategic HR planning.

b. reactive HR strategy.

c. a knee-jerk reaction.

d. proactive HR strategy.

e. downsizing.

5) When considering HR strategies regarding employee separations, managers must


a. whether to encourage decentralization or centralization of the firm to better

enhance employee relations.

b. whether to empower supervisors to make hiring decisions.

c. whether to compensate long-term employees more than recent hires.

d. whether to create rigid job descriptions in order to keep the responsibilities of

managers and their subordinates from becoming interrelated.

e. whether to use layoffs or voluntary inducements to downsize a firm.

6) When developing performance appraisals, a firm needs to make strategic HR choices


a. which kind of appraisal system (customized or general) will work best for the


b. training and career development for those whose job performance is substandard.

c. he quality of work that an employee must exhibit in order to maintain his or her


d. how data will be used in job descriptions.

e. how to maintain the privacy of managers and employees while collecting data

regarding their job performance.

7) Timberlake Corporation is reconsidering recent choices regarding employee and labor

relations, including :

a. the strong “top-down” communication from managers to subordinates.

b. the new on-the-job training for incoming employees.

c. the discipline policy regarding Internet use at work.

d. a policy that tends to protect employees’ interests over those of the employer.

e. compensation of managers versus compensation of lower-level employees.Final Examination5BAM 535 Advanced Human Resource Management

8) Which of the following HR strategies best fits a firm with an overall cost leadership

business strategy?

a. External recruitment

b. Broad job classifications

c. Emphasis on innovation and flexibility

d. Performance appraisal as a control device

e. All of the above

Case 1.1

Caplin Company is having a strategic planning session with the director of HR. They are discussing the fit between the company’s overall management philosophy, organizational structure, organizational culture, and their current HR strategies. During the meeting, the management team asks the HR Director to profile the current workforce. The HR Director reports that the workforce used to be 85% white, 50% male. Now it is 50% white, 50% minority with twice as many women as men, but supervisors still tend to be white males.

The management team begins to discuss how to control costs, improve quality, and create distinctive capabilities. Several ideas are raised, discussed, and either tabled or assigned to an individual for further exploration. Some managers noted that people tend to come in at start time and take 30 minutes to get down to work and that they begin to pack up for the day 30 minutes before quitting time. People don’t seem all that concerned about working hard and producing quality products.

As the team wraps up the day’s meeting, they briefly discuss their commitment to the surrounding community. As a cost-cutting measure, they had eliminated their support of an Adult Literacy program, in which volunteers used company facilities to conduct reading classes. The management team decides that they should reinstate the program and ap­points the Director of HR to notify the local literacy council.

9) Refer to Case 1.1. The discussion about people’s work habits represents the organiza-

tional challenge for HR of:

a. organizational culture.

b. the use of technology.

c. outsourcing.

d. the problems with empowerment.

e. the ethics and social responsibility of employers.

10) Business process reengineering is:

a. 75% successful in meeting objectives.

b. occurring more in the United States than in Europe.

c. occurring more in Europe than in the United States.

d. determining whether a company should change organizational structure.

e. a way to create more layers of management in small businesses.6Final ExaminationBAM 535 Advanced Human Resource Management

11) When a company uses self-managed work teams, the teams may:

a. eliminate the need for an HRM department by assuming its responsibilities at the

team level.

b. take responsibility for formulating company policies.

c. set salary and benefits for teams.

d. assume many managerial duties.

e. assume responsibility for strategic planning.

12) To work well, self-managed teams require training in three areas, including:

a. motivation.

b. HRIS.

c. work flow analysis.

d. technical skills.

e. job analysis.

13) Your organization is trying to decide if it should implement TQM. Management

assembles a team to study the issue. The team will disband once the study is com-

plete. The best type of team to use would be:

a. a special project team.

b. a work group.

c. a self-managed team.

d. a QWL team.

e. a problem-solving team.

14) In Herzberg’s theory of motivation, hygiene factors are those factors that:

a. affect employee job dissatisfaction.

b. are critical to the motivation of the employee.

c. lead to employee advancement.

d . permit an employee to set his/her own goals on the job.

e. define the job the employee has to do.

15) Which of the following types of job analysis focus on managerial positions?

a. A guidelines-oriented job analysis

b. A functional job analysis

c. A critical incident technique

d. A position analysis questionnaire (PAQ)

e. A hay plan

16) The first step to create general guidelines for conducting any job analysis is to:

a. gather job-related information.

b. draft a preliminary job description.

c. determine the uses of the job analysis.

d. interview the job incumbents.

e. select the jobs to be analyzed.

17) Harolyn needs to hire some contingent workers. She needs people who are regularly

available, but who will work less than 40 hours per week. They would be regular

employees. Harolyn needs:

a. contract workers.

b. part-time permanent employees.

c. subcontractors.

d. temporary employees.

e. to outsource her work.

Case 2.1

Your company makes computer components and peripherals for assemblers like Dell and Gateway. You are a small manufacturer, and your market share is highly volatile based on the entrance and exit of competitors into the market. You buy the raw materials for your components from several suppliers who also supply competitors. Your company is young, and you have 2 layers of management between the CEO and the component maker on the line.

Your CEO read a book on innovation and organizational change and now wants to look at what you should do about reorganizing, changing staffing practices, etc. He wants to re­duce costs in order to increase profit margins because he sees that margins will continue to shrink.

While productivity and quality are largely a function of the machines used in the process, your CEO still wants to focus on motivating your employees. He wants to motivate them by increasing wages through a bonus program, improving working conditions, and providing job security.

18) Refer to Case 2.1. Your CEO’s suggestions for motivating the workforce have a signifi-

cant flaw in them, which is:

a. he’s not an HRM professional and therefore doesn’t know how to properly moti-

vate employees.

b. none of the things he wants to do impact motivation, only satisfaction or dissatis-


c. it does not take the diversity of the workforce into consideration.

d. he’s not involving the employees in the decisions.

e. an MBO-based strategy would be more effective.8Final ExaminationBAM 535 Advanced Human Resource Management

19) Based on Supreme Court rulings, it seems safe to say that employers may:

a. make employment decisions solely on affirmative action criteria.

b. occasionally use affirmative action criteria in layoff situations.

c. always use affirmative action criteria in layoff situations.

d. base employment decisions in part on affirmative action criteria.

e. no specific quotas can be made by the court

20) Which of the following is a basis upon which it is permissible to pay a male employee

more than a female employee doing essentially the same work?

a. When the male employee must commute to work and the female employee does


b. When the female employee is white and the male employee is Asian-American

c. When the female employee has children and must sometimes take unpaid leave

in order to care for them

d. When the two employees live in two separate geographical areas where the local

costs of living vary greatly

e. When the female employee has supervisory responsibility over the male employee

21) Dorothy discovers that her employer is paying female managers about 15% less than

male managers with the same responsibilities. Dorothy’s employer is violating:

a. the Civil Rights Act of 1991.

b. Executive Order 11246.

c. Title VII of the Civil Rights Act.

d. the Americans with Disabilities Act.

e. the Equal Pay Act.

22) The ADA, Americans with Disabilities Act, now covers employees of any employer


a. has a federal contract.

b. has revenues of more than $500,000 a year regardless of the number of employ-


c. is an academic institution.

d. has state or local government contracts.

e. has 15 or more employees.

23) The legislation that laid the foundation for the Americans with Disabilities Act was


a. Pregnancy Discrimination Act.

b. Equal Pay Act.

c. Vocational Rehabilitation Act.

d. Age Discrimination in Employment Act.

e. Civil Rights Act of 1964.

24) A job requires rotating shift work. Which is an acceptable question for evaluating an

applicant’s ability to perform that shift work?

a. What child/dependent care provisions have you made in order to be available for

this rotating shift?

b. Do you have dependent responsibilities that would hinder your working a rotating


c. You understand that this job requires a rotating shift, don’t you?

d. Are there any physical limitations that would make it difficult for you to work a

rotating shift?

e. Does your faith keep you from working weekends?

25) A position requires that employees be trustworthy because they handle a great deal

of money. Which of the following is an acceptable interview question for examining

this issue?

a. Have you ever been arrested?

b. What is your current marital status?

c. Have you ever been denied credit?

d. Do you own your own car or residence?

e. None of the above

Case 3.4

Your mid-sized architectural service company serves companies and the federal govern­ment. Your company is organized into divisions based on client types. FedHelp is your federal division. A successful company, your buildings won awards for simplicity, beauty, and design in the 1970s. Sweeping staircases were used instead of elevators to reach the second and third floors. Broad marble steps lead up to the front of each office building, etc.

Your upper management team is 100% male, over 50, and generally has been with the company over 25 years. Middle managers tend to be in their thirties, 40% female, and 1% minority. Hourly employees are 60% minority, 35% female. The communities from which you draw your hourly employees tend to be 75% minority, primarily Hispanic and Haitian, (35-40% female and as a group are generally better educated, with 35% having at least two years of college.)10Final ExaminationBAM 535 Advanced Human Resource Management

You are the new HR Director. Your predecessor lost her job when she did not anticipate and then did not handle an HRM-based lawsuit against the company to the president’s satisfaction. Your president believes that HRM should help the company avoid problems. You have three primary tasks: to anticipate future problems, advise management, and be an advocate for employees. Your boss doesn’t see a conflict in these roles. You discover employee recruitment records are not complete; many are missing I-9 forms. You imme­diately begin to work on an affirmative action plan because of what you see happening in the company.

26) Refer to Case 3.4. Which of the following is true about your company?

a. Your company is probably in violation of the Uniformed Services Employment and

Reemployment Rights Act.

b. Your company is probably in compliance with the Immigration Reform and Control


c. Your company is probably guilty of reverse discrimination.

d. A prima facie case for discrimination could be made using the four-fifths rule.

e. Your company is probably in compliance with the Drug Free Workplace Act.

Case 3.5

Tyra has been the head of HR at S.P., Inc. for 20 years. During her time there, she has in­stituted an internal EEO complaint resolution process and a no-tolerance policy for sexual harassment.

Many of S.P., Inc. employees are Asian immigrants, but there are half a dozen countries represented within the company. This is of great benefit to the company since much of their material is translated into foreign languages.

Due to a great influx of work, S.P., Inc. needs to hire a number of workers. Tyra has re­ceived 70 applications for copyediting positions. She hires 60% of the white applicants who apply for the job and 25% of the African-Americans who apply for the job.

27) Refer to Case 3.5. Should Tyra be concerned about her hiring practices?

a. Yes, because there is prima facie evidence that her hiring practices are discrimi-


b. No, because the publishing department has a majority of African-Americans.

c. Yes, because she is violating the Equal Pay Act of 1963.

d. No, because there is no prima facie evidence that her hiring practices are


e. No, because Tyra is African American and would not discriminate against other

African Americans.

28) The number of people over age 55 in the United States will grow by about ________

over the next decade.

a. 18%

b. 10%

c. 26%

d. 77%

e. 46%

29) According to the Census Bureau, whites will comprise less than ________ of the

U.S. population by 2042.

a. 25%

b. 12%

c. 50%

d. 30%

e. 5%

30) In 2050, the share of the African American population will have increased to

________ of the U.S. population.

a. 20%

b. 15%

c. 10%

d. 25%

e. 5%

31) Currently, the legal employment status of homosexuals can be described as:

a. comparable to other diverse groups, with legal protection but mixed compliance.

b. rapidly changing through the extension of legal protection in many states.

c. mixed, with little legal protection, some overt hostility, and some companies cre-

ating gay-friendly environments.

d. in decline as more states enact laws prohibiting legal protection for gays in the


e. one in which they have no legal protection.

32) Thelma is an older worker who has been employed at Hair Stylist, Inc. for over 25

years. Recently, Tracy, a 23-year old college graduate, has been hired as her assistant.

Thelma feels slightly threatened by Tracy, who seems to be their immediate supervi-

sor’s favorite. Thelma believes that her job may be in danger despite her excellent job

performance appraisals. Tracy likes Thelma but believes that her work methods need

to change to keep up with the times. This situation is an example of:

a. generational conflict.

b. discrimination.

c. a segmented communication network.

d. stereotyping.

e. hegemony.

33) Improving diversity management must begin with:

a. senior mentoring.

b. accommodating family needs.

c. developing support groups for minorities.

d. diversity training.

e. top management’s commitment to valuing diversity.

34) One way to guarantee managers’ buy-in and reinforcement of diversity efforts is to:

a. avoid white male bashing.

b. conduct a diversity audit.

c. put them through diversity training.

d. create support groups with managers leading them.

e. hold them accountable for the programs’ success.

Case 4.2

MGN, Inc. is a Fortune 500 company that has just come to realize its need for managing diversity. HR is facilitating meetings among middle managers to both communicate this idea and to get input from the managers about how best to carry out this goal.

Mercedes, a Latina manager, suggests that the company ought not to do more than what is already being done. She cites the company’s previous affirmative action plan. “Also,” she argues, “we’ve given African-Americans and Asian-Americans more than enough opportunity. I tried to promote a Latino to supervisor and you guys (HR dept.) told me I really needed to give Kym, an African-American, the opportunity.”

Paul, a white supervisor, feels that management is management. Managing diversity is just a gimmick, a passing fad. “I’ve been a supervisor for 20 years and I’ve found that if I treat people fairly and listen to them, things work out just fine.”Final Examination13BAM 535 Advanced Human Resource Management

Ana, a relatively new middle-manager, is a bit more positive about the idea but has signifi­cant reservations. She feels, however, that the company really needs to give women and minorities access to the “old boy network.” If all the company does is conduct training and devise slogans, nothing will happen.

Finally, Rahkim, an African-American supervisor, says he doesn’t care what they do. He’s giving notice because he’s joining some other African-Americans in starting their own company. He’s been a supervisor for five years and has been passed over for promotion twice. He feels that he has experienced discrimination because he’s African-American.

35) Refer to Case 4.2. Ana’s concerns reflect the reality of the experiences of women and

minorities with:

a. resentment.

b. retention.

c. individual versus group fairness.

d. the resistance to change.

e. segmented communication networks.

36) A restaurant chain is forecasting its needs for managers, assistant managers and wait

staff for next year. Currently, 10 restaurants each have their own managers. They ex-

perience a 45% manager turnover yearly. They plan to open 4 more restaurants next

year. Their projected need for managers for next year will be: (Round your answer up

to the next full position.)

a. 13.

b. 10.

c. 9.

d. 12.

e. 11.

37) ________ involves familiarizing new employees with company policies and procedures

and orienting them to the company in general.

a. Socialization

b. Selection

c. Recruiting

d. Interviewing

e. Human resource planning

38) Recruiting employees at colleges and universities:

a. is more competitive for undergraduates than for graduates.

b. is more competitive for graduates than for undergraduates.

c. is decreasing presently as the job market weakens.

d. is equally competitive for undergraduates and graduates.

e. lacks the types of bonuses and benefits that Web recruiting often offers.

39) You are in the HR department at Builders, Inc. Ashanti, a recruiter for the company,

comes to you asking whether she should recruit externally or internally for a new

middle-management position. You tell her that:

a. employees recruited externally often need less time to adapt to a position than do

internally recruited employees.

b. companies that recruit internally can suffer from a lack of innovation.

c. external recruiting is less costly than internal recruiting.

d. internal recruiting poses fewer drawbacks than external recruiting.

e. internal recruiting often causes greater cohesiveness within a given company.

40) Tyrese has just measured Cambridge Corporation’s workforce. He is now trying to

determine whether the tests he used are valid by comparing them to performance

appraisals that supervisors have completed on the workers. He is attempting to find:

a. the predictive validity of the tests.

b. the concurrent validity of the tests.

c. the reliability of the tests.

d. the external validity of the tests.

e. the content validity of the tests.

41) Many former employers are reluctant to give references for fear of liability if the refer-

ence keeps the former employee from getting a job. The courts have held that em-

ployers have a “qualified privilege” if the employer:

a. only gives information to an inquirer who has a job-related need to know.

b. qualifies the information as “his/her opinion” and not necessarily factual.

c. has personally observed the behavior he describes.

d. has selection test information to support the reference.

e. only discusses EEO-related information.

42) Which of the following is a common loss associated with new hires?

a. Loss of community within the business

b. Loss of productivity by inexperienced hires

c. Loss of diversity

d. Loss of market share

e. Loss of innovation

43) Karlie has recently resigned from her job as retail manager at a chain store. She

comes to you, concerned about an interview that the store manager wishes to have

with her before her last day of work. You tell her that:

a. the store manager will help her to find new employment at this interview.

b. this is probably an exit interview and that the store manager will want to

understand the reasons why she is leaving.

c. at this interview, the store manager will try to convince her to stay, offering

increased financial benefits.

d. it is a legal interview to make sure that all proper paperwork is signed and that

neither she nor the company will have any further obligations to the other.

e. the interview is generally a scare tactic to keep good employees involved with the


44) A “rings of defense” strategy in terms of employment security and workforce reduc-

tions is when:

a. a company uses contingency workers to be able to add or subtract workers from

its workforce as it needs to.

b. a firm provides job security for its core employees.

c. a company goes to job sharing in order to keep workers.

d. a firm freezes wages to avoid laying off workers.

e. a union has workers at other plants supplying the firm.

45) Goodwill, Incorporated has recently proposed a plan to base 15% of employees’ sala-

ries upon their meeting set goals and work requirements. Goodwill, Inc. is proposing

what type of pay policy?

a. Demotions

b. Profit sharing

c. Bumping

d. Variable pay

e. Pay freezing

46) When implementing a layoff, managers sometimes forget that:

a. they may need to rehire these laid-off employees.

b. they need to develop plans for the “survivors” of the layoff.

c. there are hidden labor costs not reduced through layoffs.

d. it is usually appropriate to escort laid-off employees off the premises.

e. they need to plan for outplacement of the laid-off employees.

Case 6.3

Terra Alta, Inc., an employer of some 15,000 employees worldwide, wants to reduce its workforce through an early retirement program. They have hired you to put the program together and implement it.

This will be a one-time offer. They want employees over age 58 to be eligible, but they don’t want to lose key older employees. Terra Alta wants a fairly accurate estimate of how many employees will take part in the program. Terra Alta wants a legal and humane pro­gram. They do not want to be caught up in any litigation. They want employees to have an accurate picture of their future if they take part in the early retirement program.

47) Refer to Case 6.3. How could Terra Alta manage the number of people who might

participate in the early retirement program?

a. Fine tune the incentives if a survey shows too many will participate.

b. Build an estimate on industry data and stop the program when they get to that


c. Hire retirees back as consultants.

d. Take key employees aside and guarantee them their jobs.

e. Offer protected class employees less generous retirement packages.

48) Studies of performance appraisal systems show that the most influential element on

the effectiveness of the system is the:

a. gender and age of the employee being evaluated.

b. job category for which the performance is being evaluated.

c. type of tool or system used.

d. number of employees for whom the rater is responsible.

e. intelligence and experience of the rater.

49) Ahmad has been a line manager at a large jewelry factory for nearly 10 years. This

year, the factory is letting the employees directly under him contribute to Ahmad’s

performance appraisal. This is an example of:

a. performance review.

b. self-review.

c. management revision.

d. superior review.

e. subordinate review.

50) Which of the following does a manager need to minimize in order to ensure an

accurate measure of worker performance?

a. Rater errors and bias

b. Organizational politics

c. Legal issues

d. The influence of liking

e. All of the above

51) Sheila believes the value of her employees’ performance depends on her agenda or

goals, and not on any objective standard. Sheila’s perspective is a(n):

a. absolute perspective.

b. political perspective.

c. rational perspective.

d. relative perspective.

e. trait-based perspective.

Case 7.1

Shannon is the CEO of a service firm that provides high-tech service support to other small businesses. He wants to revise the performance appraisal system to align it more closely with company goals. Frank has no preconceived ideas, but he wants a tailored program that is fair, ethical, and that will produce consistent results.

He wants service employees to work together to assist each other while providing maxi­mum service quality. The sales force for Shannon’s company has not been particularly aggressive and sales are lagging. He wants sales people to both sell and assist in provid­ing service to customers. Happy customers lead to better profits.

In the past, his sales managers have been getting the same raises, regardless of their effectiveness. He wants to know whom his best-performing managers and executives are, and he wants to reward them accordingly. He wants to compare managers across func­tions so he can identify people ready for greater and different responsibilities.

52) Refer to Case 7.1. Shannon’s first step in developing the new performance appraisal

system is to:

a. identify the performance appraisal tool(s) he wants to use.

b. identify the performance dimensions to measure.

c. provide training for himself and other managers to avoid rater error.

d. communicate the changes in the program to the employees.

e. develop the performance management process he will use.18Final ExaminationBAM 535 Advanced Human Resource Management

Case 7.2

You are reviewing performance appraisals from across the company for a report to the president regarding manager performance. She wants to know not only how employees are doing, but also how well managers are evaluating their employees.

Reading through Matt’s evaluations of his MIS team, you note that he tends to rate all of his people in the middle of the scale. You recall a conversation last week when he told you that overall his people were okay, but nothing to cheer about. He would like to get them more training and institute an incentive program to get them motivated.

Madeline’s employee evaluations look pretty good. They range from very good to some weak performers. You are startled to see that Madeline has rated Juan rather low. Pulling his file, you note that he has always had very high ratings until this time. You remember a meeting two months ago when Juan vehemently disagreed with Madeline in front of the president, who sided with Juan (to Madeline’s embarrassment).

Edward’s employee evaluations seem to have no reason to them. Gary, a noted average performer has a very high rating. Jenny, another average performer who Anuar has been trying to convince to quit, has a very low rating. You remember hearing Edward say that Gary was the president’s son-in-law and that he thought Jenny needed to be motivated to do more than just get by.

53) Refer to Case 7.2. Madeline’s evaluation of Juan may have a(n) ________ error.

a. assessment criteria

b. organizational politics

c. influence of liking

d. frame-of-reference

e. central tendency

54) Conducting an organizational analysis prior to designing and implementing a training

program tells the HR professional the:

a. performance deficiencies that should be addressed in the training.

b. key dimensions of the job for which the training is designed.

c. overall support for the training.

d. knowledge, skills, and abilities to be developed by the training.

e. degree of need for the training.

55) Which of the following is the best example of appropriate training objectives?

a. A manager will be able to conduct personal problem-solving interviews.

b. A manager will be able to listen to an employee, summarize the key points the

employee makes, provide feedback related to the issue, and not attack the em-


c. Managers will be more aware of cultural diversity issues.

d. Managers will be friendly after participation in this interpersonal skills training.

e. Managers will understand the ramifications of EEO law.

56) Sherice is working for a luthier–a violin maker. She learns the craft and anticipates

becoming a luthier herself one day. Sherice is:

a. an apprentice.

b. receiving off-the-job training.

c. being exploited.

d. all of the above

e. none of the above

57) You are planning EEO training for middle managers. You want to eliminate distrac-

tions and maximize retention. Your best choice of a presentation format would be:

a. off-the-job training.

b. job rotation.

c. transfer of managers among functions to gain cross-functional experience.

d. OJT.

e. mentoring by an experienced upper-level manager.

58) Cross-functional training may be accomplished by:

a. apprenticeships.

b. team training.

c. peer trainers.

d. job redesign and enrichment.

e. using computers and simulations.

59) Creativity training:

a. cannot be evaluated for effectiveness.

b. has few critics.

c. tends to focus on the imaginative and neglect the practical.

d. tends to solve more problems for companies than any other type of training.

e. is fading in the training world and is used less and less every day.

60) When businesses do not provide career development to employees, it increases the

possibilities that:

a. employees will be encouraged by promotion possibilities.

b. all employees will begin self-development.

c. employees will specialize in their specific jobs.

d. turnover will decrease.

e. the business will not keep pace with the changing business environment.

61) B.J. is using a self-assessment tool that prioritizes his key values. He is using a(n):

a. psychological profile.

b. interest inventory.

c. skills proficiency test.

d. self assessment.

e. values clarification instrument.

62) Tuition assistance programs:

a. generally cover any graduate level education.

b. usually target undergraduate courses/programs.

c. typically cover 100% of job-related educational expenses.

d. often have a fixed limit for reimbursement of tuition.

e. over the costs of off-the-job training programs, but not educational courses.

63) A personal mission statement in a career development plan:

a. is an unchanging guide for where employees want to go with their careers.

b. helps employees act like each task makes a difference.

c. should focus on problems the employee can solve for the company.

d. determines the “tactical” decisions, or the individual assignments employees will

take in developing their career.

e. is a statement, changeable over time, which is more valuable for the process it

puts the employee through than for its ultimate content.

Case 9.4

The Blue Sky Corporation’s HR department is evaluating their human resources. They find that upper-level and middle management consists primarily of members of non-protected classes. Most of the company’s minorities are found in areas that are non-management, non-revenue generating areas of the organization.

Wayne, Blue Sky’s VP, claims that most of the minorities and women in the company simply don’t have the education and experience that they need to move into the upper echelons of the business. He suggests that all interested employees be provided with some sort of education or training to help prepare them for advancement opportunities. Torrina responds that it may be more effective to encourage Blue Sky’s protected-class members to become involved in a professional organization to be able to network and find support. Louise would prefer to see a program where upper-level employees work with younger subordinate employees to mentor them and prepare them to take on the upper-level positions that they will someday leave. He claims that this ought to be

done without regard to the race or gender of the employees.Final Examination21BAM 535 Advanced Human Resource Management

64) Refer to Case 9.4. The fact that minorities and women seem to be limited in terms of

career development at Blue Sky Corp. is evidence of ________.

a. glass ceilings

b. conscious discrimination

c. affirmative action

d. glass walls

e. diversity training

65) You are trying to convince the management of Marcelle, Inc. to pay its employees the

“going rate”, no more, no less. You are trying to:

a. reach external equity.

b. reach internal equity.

c. increase Marcelle’s work force.

d. create an elitist compensation program.

e. reduce Marcelle’s work force.

66) When management is discussing whether to lead, lag, or pay the “going rate” for a

job, they are deciding:

a. if they want to have an open or secret compensation system.

b. their company’s pay policy.

c. whether to be egalitarian or elitist.

d. how to balance internal equity.

e. which element they want to emphasize in compensation - monetary or nonmon-

etary rewards.

Case 10.1

A company is reviewing its compensation system. The president wants employees to be paid wages and benefits comparable to competitors. He wants to be as fair as possible. He also wants to have maximum flexibility in being able to move people around to dif­ferent jobs, as the company needs to, without having to worry about adjusting their pay. The Finance VP suggests that the company should tie compensation costs more closely to productivity and profit. When profits are down, compensation costs should be reduced as well. She also believes that employees should be paid for what they produce, not for their time, and the compensation program should apply to all equally. The VP of HRM suggests that the key to the company’s success is their employees. People should be paid for their skills or knowledge, not just because they are fulfilling certain jobs. He also feels that it would be simpler to implement a compensation system by level rather than by job.22Final ExaminationBAM 535 Advanced Human Resource Management

67) Refer to Case 10.1. The compensation system that would meet the president’s con

cerns about fairness and flexibility would be a ________ compensation system.

a. fixed pay

b. skill-based

c. variable pay

d. membership-based

e. performance-based

Case 10.4

Christopher is the VP of the clothing company Harrison, Inc. HR is in the process of re-designing the company’s compensation system since Harrison has gone interna­tional. Christopher believes that employees should be paid in direct response to what the employees contribute to the company. Joanna, an upper-level manager, agrees and also believes that employees who hold higher positions in the company should be paid considerably more than those who hold subordinate positions. Mark, the head of HR, encourages Christopher to make sure that employees are being paid at a comparable rate to employees who are performing the same job at other apparel companies.

Christopher believes that the company needs to have greater flexibility in moving people among jobs without having to adjust their compensation. The management also wants more joint-task accomplishment and better cooperation among employees.

68) Refer to Case 10.4. Mark is encouraging:

a. external equity.

b. internal equity.

c. an egalitarian system.

d. ensuring comparable worth within the company.

e. following a labor market model.

69) Refer to Case 10.4. After performing a point factor job analysis, HR reports to Chris-

topher that assistant administrators are receiving considerably less compensation

than line supervisors, even though they are performing similar jobs with very similar

skills. Christopher realizes that:

a. this is a typical egalitarian pay system.

b. this problem can be fixed by achieving external equity.

c. this is simply a factor of fixed pay.

d. the employees are of comparable worth, but are not being compensated compa-


e. this is perfectly acceptable, since the assistant administrators are exempt em-

ployees and the line supervisors are nonexempt employees.

70) To achieve desired results from a pay-for-performance system, companies should:

a. change systems every two years.

b. strictly limit employee influence on system decisions.

c. make sure that employee performance appraisals are valid and reliable.

d. encourage good staffing practices.

e. c and d

71) A firm should use merit pay as an element of a(n):

a. individual-based compensation plan.

b. plant-wide compensation plan.

c. team-based compensation plan.

d. corporate-based compensation plan.

e. equity-based compensation plan.

72) An individual-based incentive compensation system has a number of disadvantages,

such as:

a. placing employees at considerable risk.

b. the free-ride effect.

c. promoting too narrow of a job focus, fostering an attitude of “playing it safe.”

d. fostering social pressure to limit performance.

e. problems with the criteria used to trigger rewards.

73) In what way are compensation programs for salespeople different from compensation

programs for other types of employees?

a. Perceptions of pay inequity are a lesser concern for salespeople than for non-


b. The spread in earnings between the lowest- and highest-paid salespeople is

much smaller than it is between other types of employees.

c. There is less performance variation between salespeople than between non-sales-


d. The reward system for non-salespeople is more supervisory than it is for sales


e. Accurate market data on pay practices are easier to find for salespeople than for

other types of employees.

Case 11.4

At a compensation meeting, upper-level managers of Universal Equipment Corpora­tion (UEC) are discussing new pay-for-performance strategies. Travis gives a report that explains that typical jobs in the company demand autonomy and that cooperation is not necessarily needed among employees and that competition among the employees is very profitable for UEC.24Final ExaminationBAM 535 Advanced Human Resource Management

Steven suggests that employees be given lump-sum payments for above-average perfor­mance and at special milestones in their career. Fran says it would be better to reward employees with an annual increase in base pay based on their overall performance for the year. Yung Sun points out the fact that if the UEC makes another change in its pay-for-performance plan, it is sure to exacerbate the frustration of employees who have been subject to several other pay-for-performance plans in the last few years.

74) Refer to Case 11.4. Steven seems to be encouraging:

a. intergroup competition.

b. a bonus program.

c. merit pay.

d. awards.

e. a gainsharing plan.

75) Shirley’s husband has recently died. She is eligible for survivor benefits if she:

a. cares for a dependent parent of 60 years of age or older.

b. is at least 55 years old and has an unmarried child younger than 19 years of age.

c. is at least 58 years of age and has at least two children of any age.

d. is at least 55 years old.

e. none of the above

76) The employee benefit that provides medical care, income, and rehabilitation expens-

es for individuals who sustain job-related injury or illness is called:

a. Social Security.

b. unemployment insurance.

c. survivor benefits.

d. health-care insurance.

e. workers’ compensation.

77) Health insurance covers:

a. employees.

b. employee dependents.

c. employees’ unmarried partners.

d. employees who have no prior medical condition.

e. a and b

Case 12.1

The HR Director of The Camera Center is leading the executive team through a review of the company’s benefits plan. He begins by explaining how they are funding the benefits plan. After a few questions on that matter, he moves on to clarify what they must offer, by law, and then what he thinks they should offer.

A highly entrepreneurial, performance-driven company, The Camera Center provides an excellent profit-sharing plan and one of the best retirement packages in the indus­try. They commit a high portion of their compensation funds to the benefits plan. Their workforce tends to be college-educated younger professionals, who are just starting their families.

The CEO wants the total benefits plan reviewed and repackaged, if necessary, to align it with The Camera Center’s business culture and strategy. He also wants to contain costs as much as possible and simplify benefits


78) Refer to Case 12.1. This company’s benefits mix:

a. is a close fit with its culture and objectives.

b. lacks an IRA or 401(k) to give employees a tax benefit in their retirement.

c. is in violation of federal law because they don’t offer health care.

d. is correct, but they need to implement variable pay as well.

e. is almost the opposite of what they need.

Case 12.4

Franco is an upper level-manager at Fine Jewelry, Inc. Based upon the company’s desire to share retirement risk and responsibility with employees, Franco suggests to HR that Fine Jewelry contribute a fixed amount of funds to each employee’s retirement plan, and let the employees determine how to invest them.

Franco’s assistant, Dorreen, recently was in a car accident while on company business, and was cited as the one responsible for the accident. Sadly, one of her legs was badly injured, and she will be unable to work for over a month.

On a happier note, Josh, an accounts administrator, and his wife Silvia, have just adopted twins. He has decided to take two months of FMLA leave.

Becky was a receptionist for Fine Jewelry for seven months. She then quit her job with Fine Jewelry and was hired at Interior Designs two months later. During her time of unem­ployment, she became pregnant and is expecting coverage under the Health Insurance Portability and Accountability Act (HIPPA).

Franco comes to you, an accounts manager for Fine Jewelry, and asks you where he should invest for his retirement. Fine Jewelry already has a retirement plan for employ­ees, but Franco realizes that this will not be sufficient when he reaches retirement age.26 Final ExaminationBAM 535 Advanced Human Resource Management

79) Refer to Case 12.4. Franco wants a tax-deferred, personal savings plan. You suggest


a. profit-sharing Keogh plan.

b. IRA.

c. Social Security plan.

d. Roth IRA.

e. b or d

80) A group of employees are discussing a notice on the bulletin board. “This is great!

They finally recognize our need for childcare here. Boy, will this make life easier.” For

the employees, this is an example of:

a. upward communication.

b. actual communication.

c. communication of feelings.

d. noise.

e. feedback.

81) Travis has been showing Shay the basics of C++ computer programming. Shay knows

very little about programming, and finds most of what Travis is saying utterly incom-

prehensible. He uses terms and refers to concepts that she has never heard of before.

Shay’s difficulty in decoding the message comes from:

a. the communication channel.

b. the lack of feedback she receives from Travis.

c. her low intelligence.

d. “noise.”

e. Travis’s misunderstanding of C++.

82) A manager is explaining a project to his staff. They are asking questions in order to

understand what he wants and to try and shift the delivery date, to which he agrees.

This meeting is an example of:

a. upward communication.

b. downward communication.

c. encoding.

d. lateral communication.

e. two-way communication.

83) The most important source of information that HR can provide employees is:

a. audiovisuals, due to the decreasing literacy rate.

b. electronic communications, thereby permitting interaction.

c. meetings, where everyone can hear the same thing at the same time.

d. written communication, so employees have reference copies of what has been


e. the employee handbook, which outlines the company’s entire employee relations


84) A tool for letting people participate in meetings even when they are in another loca-

tion is:

a. e-mail.

b. voice mail.

c. multimedia.

d. phone.

e. teleconferencing.

85) The rights to hire, promote, and determine pay levels for employees are examples of:

a. contractual rights founded in the employee’s contract with management.

b. statutory rights.

c. residual rights.

d. due process rights.

e. the psychological contract.

86) Employment-at-will is an example of:

a. a common law rule.

b. management’s implied contract rights.

c. employees’ due process rights.

d. dealing in good faith.

e. a psychological contract-based employee right.

87) A court may find a discipline or discharge decision as arbitrary or unwarranted in

which of the following situations?

a. Circumstances fit within guidelines of employment-at-will.

b. The employee did not receive notification of the consequences of his/her action.

c. The employee’s right to free speech was not violated.

d. An employee’s absolute right to privacy was violated.

e. Management did not absolutely prove its case.

88) Which of the following may prove that an employee was discharged without just


a. Managers did not conduct an investigation before administering discipline.

b. The investigation provided substantial evidence or proof of the employees’ guilt.

c. The rules and penalties of the disciplinary action were applied without discrimina-


d. Employees were not forewarned of the disciplinary consequences of their conduct.

e. a and d

89) Which of the following is the greatest union ally?

a. Company politics

b. Internal equity

c. Bad management

d. Poor compensation

e. Non-financial rewards

90) The highest risk labor relations strategy is:

a. a union acceptance strategy.

b. a union suppression strategy.

c. integrative bargaining.

d. a union substitution strategy.

e. none of the above

91) A union certification election process:

a. is conducted by open ballot to avoid fraud.

b. only needs to receive a majority vote to win.

c. only needs 30% of the workers to vote yes to win.

d. is supervised by a union-management team.

e. tends to be a foregone conclusion as unions tend to win these votes.

Case 15.2

TimeTable, Inc. plans to expand its manufacturing facilities. It is considering expansion either here in the United States or in Europe–Germany, Sweden, Great Britain, or France. It may also look at Japan or China, but those are currently second tier choices.

In selecting a country, the CEO wants to avoid political involvement. While friendly toward unions, he doesn’t want one that is politically oriented. In fact, the CEO of TimeTable was once a union official. He went through a career change, earned an MBA, and moved into the executive management ranks about ten years ago.

TimeTable has a strong positive working relationship with its union. Management feels the NLRB is wrong in its ruling about the Wagner Act and is aggressively building labor-management teams. The CEO of TimeTable is even considering giving the union a seat on the board of directors.Final Examination29 BAM 535 Advanced Human Resource Management

92) Refer to Case 15.2. Based on TimeTable’s CEO’s attitudes about politics, which of the

following countries would he and TimeTable be the most uncomfortable in?

a. France

b. Great Britain

c. United States

d. China

e. Germany

93) Workers’ compensation:

a. is a no-fault system.

b. requires the proof of liability by the employer.

c. covers employees’ medical costs under the Medicaid program.

d. pays only if the worker is unable to pay for him/her self.

e. is mandatory in all 50 states.

94) Workers’ compensation has some problems, including:

a. the slowness with which claims are settled.

b. a growing problem of fraud by workers.

c. fewer and fewer states offering such insurance to create a more favorable business

climate to attract business.

d. increasing costs because companies are moving to their own self-insured systems.

e. no legal recourse through the court system if a worker wants to appeal.

95) The National Institute for Occupational Safety and Health (NIOSH) is responsible for

which of the following?

a. Enforcing safety regulations throughout the United States

b. Performing safety inspections of businesses

c. Developing state workers’ compensation programs

d. Creating new health and safety standards

e. All of the above

96) A company’s safety committee:

a. is made up of line managers who promote workplace safety and health.

b. has little effect on the overall safety of the workplace.

c. is comprised of managers and employees who evaluate the adequacy of safety

procedures in the company and evaluate hazard solutions.

d. is a committee made up of managers and employees who police safety violations

and mete out appropriate punishments.

e. none of the above

97) International managers may choose from several basic approaches to manage their

international work forces. If a company deliberately downplays nationality and actively

searches internationally for the best people for key positions, the company is using

a(n) ________ approach to management.

a. ethnocentric

b. expatriate

c. multinational

d. polycentric

e. geocentric

98) It has been estimated that using an expatriate costs ________ more than a local


a. 3000%-5000%

b. 200%

c. 500%-1000%

d. 1000%-2000%

e. 4000%-6000%

99) The use of local nationals as managers in foreign subsidiaries:

a. creates problems of adaptability as they tend to be less flexible than expatriates.

b. is best when a shared corporate identity is important.

c. may lead to the postponement of decisions until they are more difficult.

d. is important when cultural differences between the host and home countries are


e. may act as a disincentive on local morale.

100) Your text implies that if a small firm moves into exporting, because of the size of its

staff, management would have to:

a. establish an MBO program.

b. adopt a clear mission and vision for the business to keep from being sidetracked

into the wrong international markets.

c. establish a TQM program to meet ISO 9000 standards.

d. empower employees through participative management.

e. develop a clear succession plan in case the CEO is killed traveling in a third world

country like Peru.