Chapter 12 Managing Human Resources
Chapter 12 Managing Human Resources
Chapter 12 Managing Human Resources
3) John received a raise as a result of his last performance appraisal. He is active on three teams
and is given authority to make decisions regarding his job responsibilities. John's employer is
using ________.
A) realistic job previews
B) human resource planning
C) high performance recruiting practices
D) high-performance work practices
Answer: D
Diff: 3
AACSB: Application of knowledge
Learning Obj: LO 12.1: Explain the importance of human resource management
Classification: Application
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4) ________ is an example of a high-performance work practice.
A) Increasing employee access to information
B) Selective decruitment
C) Skill-based compensation
D) Detailed job descriptions
Answer: A
Diff: 3
AACSB: Reflective thinking
Learning Obj: LO 12.1: Explain the importance of human resource management
Classification: Concept
5) Steve introduces in-house technical training programs for employees, as well as a provision to
reimburse the tuition fees for employees who take college 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
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 12.1: Explain the importance of human resource management
Classification: Application
6) The first three activities of the human resource management process involve ________.
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
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.1: Explain the importance of human resource management
Classification: Concept
7) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.1: Explain the importance of human resource management
Classification: Concept
22
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8) 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) planning and performance management
Answer: B
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.1: Explain the importance of human resource management
Classification: Concept
9) Which of the following steps in human resource management helps retain competent and
high-performing employees?
A) orientation
B) selecting
C) performance management
D) training
Answer: C
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.1: Explain the importance of human resource management
Classification: Concept
10) High-performance work practices are those that lead to both high individual and high
organizational performance.
Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.1: Explain the importance of human resource management
Classification: Concept
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12) An organization that wants to have high-performance work practices should discourage self-
managed teams and decentralized decision making.
Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.1: Explain the importance of human resource management
Classification: Concept
14) 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 person– job and person– organization fit
h. Extensive employee involvement
i. Giving employees more control over decision making
j. Increasing employee access to information
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj: LO 12.1: Explain the importance of human resource management
Classification: Concept
44
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15) 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.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj: LO 12.1: Explain the importance of human resource management
Classification: Concept
17) Which one of the following would be considered a factor most directly influencing the
human resource process?
A) offshoring of jobs
B) changes in consumer preferences
C) changes in technology
D) the economy
Answer: D
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
55
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18) Labor unions use ________ to protect the rights of their members.
A) work stops
B) commercial arbitration
C) collective bargaining
D) labor disputes
Answer: C
Diff: 3
AACSB: Reflective thinking
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
19) Which one of the following Acts 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
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
20) Which one 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) Consolidated Omnibus Reconciliation Act
Answer: C
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
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21) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
22) When Fletcher lost his job as a result of a downsizing, his health coverage was discontinued
even though he was willing to pay for it. Which of the following Acts 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) Patient Protection and Affordable Care Act
Answer: A
Diff: 3
AACSB: Application of knowledge
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Application
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24) Which one of the following is true of the government legislations related to human resource
management in different countries?
A) Canadian laws allow discrimination on the basis of language in all parts of the country except
Quebec.
B) Australian anti-discrimination laws were passed before those in the United States.
C) Under Mexican law, managers must review new employees' performance after 60 days.
D) Unlike the rest of Europe, legislation in Germany does not require companies to practice
representative participation.
Answer: A
Diff: 3
AACSB: Reflective thinking; Diverse and multicultural work environments
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
26) In Germany and most of western Europe, the two most common forms of representative
participation are ________.
A) board representatives and cross-functional teams
B) task forces and cross-functional teams
C) work councils and board representatives
D) work councils and cross-functional teams
Answer: C
Diff: 3
AACSB: Reflective thinking
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
88
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27) In Germany, ________ are groups of nominated or elected employees who must be
consulted when management makes decisions involving personnel.
A) labor unions
B) advisory boards
C) work councils
D) board representatives
Answer: C
Diff: 3
AACSB: Reflective thinking
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
28) Helmut works for an optical engineering company in Germany. He is one of several
employees that management must consult when it is considering a major layoff. Helmut is a
member of ________.
A) an employee council
B) a work council
C) a labor union
D) a bargaining committee
Answer: B
Diff: 3
AACSB: Application of knowledge
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Application
29) Which of the following is a trend that will affect HRM practices in the future?
A) Asians will represent 24% of the workforce.
B) Working women will represent a shrinking segment of the workforce.
C) Baby boomers will represent the largest segment of the workforce.
D) Hispanics are the fastest-growing segment of the workforce.
Answer: C
Diff: 3
AACSB: Reflective thinking; Diverse and multicultural work environments
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
30) A labor union is an organization that represents workers and seeks to protect their interests.
Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
99
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31) In the United States, labor unions represent the most significant environmental constraint.
Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
32) The trend in unionization in the United States is a decline in the private sector and in increase
in the public sector.
Answer: TRUE
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
33) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
34) The Civil Rights Act, Title VII, prohibits discrimination of employees who are above 40
years of age.
Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
35) The Affordable Care Act requires employers to provide health insurance coverage to
employees.
Answer: TRUE
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.2: Describe the human resource management process and the external
influences that might affect that process
Classification: Concept
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36) The first phase of the human resource management process involves ________.
A) human resource planning, compensation, and benefits
B) human resource planning, selection, and performance management
C) human resource planning, recruitment and decruitment, and selection
D) human resource planning, recruitment and decruitment, and orientation
Answer: C
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
37) 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) human capital management
B) performance management
C) performance planning
D) human resource planning
Answer: D
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
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39) 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
Diff: 3
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
40) Roberta has been asked to complete a questionnaire about her job duties and the
qualifications she believes a candidate for her position should have. Roberta is participating in a
________.
A) job analysis
B) employee survey
C) position evaluation
D) job review
Answer: A
Diff: 3
AACSB: Application of knowledge
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Application
41) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
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42) A ________ states the minimum qualifications that a person must possess to successfully
perform a given job.
A) job description
B) job preview
C) job analysis
D) job specification
Answer: D
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
43) Sam, 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 create a job description.
B) He should create a job specification.
C) He should perform a job analysis.
D) He should perform a job satisfaction survey.
Answer: B
Diff: 3
AACSB: Application of knowledge
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Application
1313
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45) ________ as a source of recruitment is limited to entry-level positions.
A) Employee referrals
B) The Internet
C) College recruiting
D) Professional recruiting organizations
Answer: C
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
46) Gareth is 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
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Application
1414
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48) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
49) ________ are a temporary involuntary termination that can last from a few weeks to several
years.
A) Layoffs
B) Attritions
C) Discharges
D) Retirements
Answer: A
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
50) In which one of the following decruitment methods does an organization refrain from filling
the openings created by voluntary resignations or normal retirements of its employees?
A) firing
B) layoffs
C) attrition
D) transfers
Answer: C
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
1515
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51) 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 future. This implies that Jane favors
________.
A) transfers
B) attrition
C) layoffs
D) reduced workweeks
Answer: B
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Application
52) Joan needs to eliminate some employees for a short while. She and her managers identify
those employees who are not meeting performance expectations and explain that this termination
is temporary but they are encouraged to seek other 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
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Application
53) If Victoria asks some employees to share jobs or perform their jobs on a part-time basis, she
would be ________.
A) firing employees
B) encouraging layoffs
C) reducing the workweeks
D) encouraging early retirements
Answer: C
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Application
1616
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54) ________ involves predicting which applicants will be successful if hired.
A) Selection
B) Recruitment
C) Orientation
D) Decruitment
Answer: A
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
55) Errors made by eliminating candidates who would have performed successfully on the job
are known as ________.
A) admission errors
B) reject errors
C) accept errors
D) omission errors
Answer: B
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
56) Elizabeth was hired as a customer care executive by a telecommunications provider during a
period when they were extremely short-staffed. 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) omission error
Answer: C
Diff: 2
AACSB: Analytical thinking; Application of knowledge
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Application
1717
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57) Terrence worked closely with the new hire, showing him repeatedly how to do the job,
pairing him with a job coach, sending him to classes, etc., but it wasn't enough. In addition to the
costs of this training, what other costs are involved in this situation?
A) loss of reputation
B) discharge costs
C) reject error costs
D) lost profits from the employee's incompetence
Answer: D
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Application
58) A ________ selection device is characterized by a proven relationship between the selection
device and some relevant job selection criterion.
A) subjective
B) objective
C) reliable
D) valid
Answer: D
Diff: 3
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
59) All candidates for entry level engineering positions are given the mechanical aptitude test.
Those who scored well and were hired later earned high scores on their performance evaluations.
Those who scored less well and were hired earned lower scores on performance evaluations.
This indicates that the test is ________.
A) valid
B) invalid
C) reliable
D) unreliable
Answer: A
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Application
1818
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60) A ________ selection device indicates that the device measures the same thing consistently.
A) subjective
B) potent
C) reliable
D) valid
Answer: C
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
61) When Beverly administers the math test to accounting clerk candidates, the average score is
65%. But when Carol administers the same test, the score average is 83%. What does this
indicate about the test?
A) The test is valid.
B) The test is unreliable.
C) The test is poorly constructed.
D) The test is reliable
Answer: B
Diff: 3
AACSB: Application of knowledge
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Application
62) A new tool called ________ is used to measure such outcomes as employee retention,
number of promotions, and number of first-year hires who enter high-potential training
programs.
A) quality of hire
B) quality of selection
C) quality of recruitment
D) quality of fill
Answer: D
Diff: 3
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
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63) Application forms ________.
A) are most useful for gathering information
B) include personality and interest forms
C) use actual job behaviors
D) are not used for managerial positions
Answer: A
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
64) 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) aptitude test
B) performance-simulation test
C) intelligence test
D) psychometric test
Answer: B
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Application
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66) Which one of the following is true of written tests as a selection tool?
A) They are not very popular anymore.
B) They are relatively good predictors for supervisory positions.
C) They cannot predict job performance.
D) They are almost universally used.
Answer: B
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
67) 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
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
68) Turnover is high among new hires at Stewart's company. At one exit interview, Stewart
asked the departing new hire why she was leaving so soon. Which one of the following
statements is the most likely response?
A) The company has a strong labor union so the 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
Diff: 3
AACSB: Application of knowledge
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Application
2121
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69) Larry is in charge of recruitment for entry-level positions at Merlin Infosystems. He believes
that job interviews should include a realistic job preview. Which one of the following is Larry
likely to do during job interviews?
A) emphasize 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) tell the employee about possible overtime
Answer: D
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Application
70) Future HR needs are determined by the organization's current level of production and the
popularity of its products.
Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
71) Title VII of the Civil Rights Act requires that employment tests be job-related and consistent
with business necessity.
Answer: TRUE
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
72) Human resource planning entails two steps: assessing current human resources and meeting
future human resource needs.
Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
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73) Job descriptions focus on the job, while job specifications focus on the person.
Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
74) Recruitment is defined as the process of screening job applicants to determine who is best
qualified for the job.
Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
75) One disadvantage of employee referrals as a source of job candidates is that it generates
unqualified candidates.
Answer: FALSE
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
76) There are essentially two ways of controlling labor supply through decruitment: firing and
early retirements.
Answer: FALSE
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
77) The burden is on managers to prove that the selection devices they use are a valid predictor
of job performance.
Answer: TRUE
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
2323
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78) Giving negative information about the organization to prospective candidates is not a good
idea because it puts the company in a bad light.
Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
2424
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80) 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 a 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.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
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82) 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 kind 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.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj: LO 12.3: Discuss the tasks associated with identifying and selecting competent
employees
Classification: Concept
83) ________ is the process of introducing a new employee to his/her job and the organization.
A) Orientation
B) Selection
C) Staffing
D) Communicating
Answer: A
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.4: Explain the different types of orientation and training
Classification: Concept
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84) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.4: Explain the different types of orientation and training
Classification: Concept
85) Which one of the following is a type of general training provided by organizations?
A) customer service
B) basic life-work skills
C) managing change
D) customer education
Answer: A
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.4: Explain the different types of orientation and training
Classification: Concept
87) Which one of the following is a type of specific training provided by organizations?
A) technological skills
B) team building skills
C) supervisory skills
D) communication skills
Answer: B
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.4: Explain the different types of orientation and training
Classification: Concept
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88) In which one 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
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.4: Explain the different types of orientation and training
Classification: Concept
89) In which one of the following traditional training methods do employees work with an
experienced worker who provides information, support, and encouragement?
A) job rotation
B) experiential exercises
C) mentoring and coaching
D) on-the-job training
Answer: C
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.4: Explain the different types of orientation and training
Classification: Concept
90) Which one 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
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.4: Explain the different types of orientation and training
Classification: Concept
93) Each day Ted's smartphone receives a training video about another aspect of his job. Ted can
access these at his leisure and is required to take a quiz to confirm he has watched them. This
system of delivering training content is called ________.
A) experiential exercises
B) mobile learning
C) videoconferencing
D) e-learning
Answer: B
Diff: 3
AACSB: Application of knowledge
Learning Obj: LO 12.4: Explain the different types of orientation and training
Classification: Application
94) A new employee goes through two types of orientation: work unit orientation and procedural
orientation.
Answer: FALSE
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.4: Explain the different types of orientation and training
Classification: Concept
95) Job rotation allows employees to work at different jobs in a particular area, thereby giving
them exposure to a variety of tasks.
Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.4: Explain the different types of orientation and training
Classification: Concept
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96) 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.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj: LO 12.4: Explain the different types of orientation and training
Classification: Concept
97) 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
a 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.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
Learning Obj: LO 12.4: Explain the different types of orientation and training
Classification: Concept
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98) 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) written essay
C) critical incident
D) graphic rating scale
Answer: C
Diff: 3
AACSB: Reflective thinking
Learning Obj: LO 12.5: Describe strategies for retaining competent, high-performing employees
Classification: Concept
99) 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
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.5: Describe strategies for retaining competent, high-performing employees
Classification: Concept
100) The top management of the company asks Earl 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
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 12.5: Describe strategies for retaining competent, high-performing employees
Classification: Application
101) Which one 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
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.5: Describe strategies for retaining competent, high-performing employees
Classification: Concept
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102) A ________ is a method of performance appraisal by which 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
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.5: Describe strategies for retaining competent, high-performing employees
Classification: Concept
103) 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
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 12.5: Describe strategies for retaining competent, high-performing employees
Classification: Application
104) Wayne hosts his first regional sales meeting during which he 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, Wayne 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
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 12.5: Describe strategies for retaining competent, high-performing employees
Classification: Application
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105) The ________ method utilizes feedback from supervisors, employees, and coworkers.
A) multiperson comparison
B) 360-degree appraisal
C) critical incident
D) graphic rating scale
Answer: B
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.5: Describe strategies for retaining competent, high-performing employees
Classification: Concept
106) A ________ system rewards employees for the job competencies they demonstrate.
A) piece-rate pay
B) skill-based pay
C) variable pay
D) performance-based pay
Answer: B
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.5: Describe strategies for retaining competent, high-performing employees
Classification: Concept
107) 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
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 12.5: Describe strategies for retaining competent, high-performing employees
Classification: Application
108) After 75 years in business, ABC Corp. has decided it is time to overhaul its compensation
system. What advice would you offer its HR manager?
A) Make it more flexible and reduce the number of pay levels.
B) Pay everyone in the same pay grade the same wage regardless of seniority.
C) Focus on benefits rather than wages or salaries.
D) Make pay a function of the amount of education the employee has.
Answer: A
Diff: 3
AACSB: Application of knowledge
Learning Obj: LO 12.5: Describe strategies for retaining competent, high-performing employees
Classification: Application
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109) Written essay and critical incident are performance appraisal methods.
Answer: TRUE
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.5: Describe strategies for retaining competent, high-performing employees
Classification: Concept
110) Variable pay systems reward employees for the job skills and competencies they can
demonstrate.
Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.5: Describe strategies for retaining competent, high-performing employees
Classification: Concept
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112) 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
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.6: Discuss contemporary issues in managing human resources
Classification: Concept
113) 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
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.6: Discuss contemporary issues in managing human resources
Classification: Concept
114) 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
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.6: Discuss contemporary issues in managing human resources
Classification: Concept
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116) 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
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.6: Discuss contemporary issues in managing human resources
Classification: Concept
117) Because Quentin is the only male worker in a group of women, other male employees have
made jokes about his gender identity. The jokes have affected Quentin's motivation to work and
he is absent more often. This situation may constitute ________.
A) unwelcome sexual advances
B) normal workplace activity
C) protected free speech
D) hostile environment sexual harassment
Answer: D
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 12.6: Discuss contemporary issues in managing human resources
Classification: Application
118) The health condition that is most costly for employers is ________.
A) heart problems
B) obesity
C) diabetes
D) cancer
Answer: B
Diff: 3
AACSB: Reflective thinking
Learning Obj: LO 12.6: Discuss contemporary issues in managing human resources
Classification: Concept
119) One method some companies are using to control health care costs is to ________.
A) charge obese people a higher percentage of health care premiums
B) decline to provide health coverage for older workers
C) fire employees who refuse to quit smoking
D) hire only candidates with a low body mass index
Answer: C
Diff: 3
AACSB: Reflective thinking
Learning Obj: LO 12.6: Discuss contemporary issues in managing human resources
Classification: Concept
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120) Companies can legally take disciplinary action against an employee who complains of a
hostile work environment.
Answer: FALSE
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 12.6: Discuss contemporary issues in managing human resources
Classification: Concept
121) Employers are changing from traditional to defined contribution plans as a cost-cutting
measure.
Answer: TRUE
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 12.6: Discuss contemporary issues in managing human resources
Classification: Concept
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