HUMAN RESOURCE MANAGEMENT: PRELIM EXAM

Question 1

According to the Equal Employment Opportunity Commission (EEOC) and the courts, inquiries
about race, color, national origin, or religion are illegal per se.
Select one:
True
False

Question 2
The primary function of the human resource department within an organization has been
identified as that of:
Select one:
a. Defining the mission and vision of the organization.
b. Designing and administering work processes.
c. Providing support to operating managers on all personnel matters.
d. Financing the investment activities of the organization.

Question 3
Recruitment from within can have a significant, positive effect on employee motivation and
morale.
Select one:
True
False

Question 4
_____ refers to the broad spectrum of human resource activities involved in obtaining and
managing an organization's human resources.
Select one:
a. Social audi
b. Enterprise resource planning
c. Supply chain management
d. Talent management

Question 5
The average age of the American workforce is:
Select one:
a. Increasing.
 b. Decreasing.
c. Impossible to predict.
d. Constant.

Question 6
One of the human resource functions is to provide assistance to employees with personal
problems that influence their work performance.
Select one:
True
False

Question 7
A grouping of similar jobs or job classes is known as a ____.
Select one:
a. occupation
b. duty
c. element
d. task

Question 8
____ involves seeking and attracting a pool of people from which qualified candidates for job
vacancies can be chosen.
Select one:
a. Recruitment
b. Orientation
c. Requisition
d. Appraisal

Question 9
Talent management involves identifying and developing outstanding performers only in the
middle management.
Select one:
True
False

Question 10
A ____ is an aggregation of two or more micromotions and is usually thought of as a
complete entity.
Select one:
a. task
b. duty
c. element
d. responsibility

Question 11
An applicant flow record is required mandatorily to be filled by all job applicants as part of the
selection process.
Select one:
True
False

Question 12
Fundamental rethinking and radical redesign of business processes to achieve dramatic
improvements in cost, quality, service, and speed is known as ____.
Select one:
a. Rightsizing
b. Outsourcing
c. Reengineering
d. Reverse mentoring

Question 13
Unions generally prefer promotions based on seniority for unionized jobs.
Select one:
True
False

Question 14
A ____ is used by a company to obtain information from a job applicant that could be used
to illegally discriminate.
Select one:
a. Applicant flow record
b. Job description
 c. Realistic job preview
d. Non-disclosure form

Question 15
Polygraph tests are widely used today to screen out undesirable job candidates.
Select one:
True
False

Question 16
Continuous and proactive assessment of mission-critical work and its staffing requirements is
known as ____.
Select one:
a. Rightsizing
b. Downsizing
c. Crowdsourcing
d. Outsourcing

Question 17
Related tasks comprise the ____ of a job.
Select one:
a. micromotions
b. macromotions
c. elements
d. duties

Question 18
Large organizations use operating managers to perform human resource functions instead of
maintaining a human resource department.
Select one:
True
False

Question 19
Most human resource certification programs require a person to have specific experience and
education.
Select one:
True
 False

Question 20
A grouping of work ____ makes up a work task.
Select one:
a. responsibilities
b. positions
c. elements
d. duties

Question 21
Which of the following statements is true about a campus recruitment process?
Select one:
a. The first step of campus recruitment is that all applicants go through an adjustment
program at the company office.
b. The recruiters are paid employees of the college placement center.
c. Campus recruiting activities are usually coordinated by the university placement center.
d. Campus recruiting activities help fill high-level, or executive, positions within
organizations.

Question 22
Which of the following is an internal source of recruitment?
Select one:
a. Campus recruiting
b. Employee referrals
c. Job sharing
d. Job posting and bidding

Question 23
A position may be held by more than one person.
Select one:
True
False

Question 24
One of the disadvantages generally associated with recruiting from internal sources is that it
could lead to inbreeding of ideas.
Select one:
 True
False

Question 25
Job analysis gives the nature and requirements of specific jobs.
Select one:
True
False

Question 26

Duties, when combined with responsibilities (obligations to be performed), define a ____.

Question 27
Human resource development is the HR function that is concerned with designing and
implementing compensation and benefit systems for all employees.
Select one:
True
False

Question 28
The simplest unit of work that involves a very elementary movement is known as a ____.
Select one:
a. job
b. task
c. micromotion
d. occupation

Question 29
Perception speed tests measure a person's ability to visualize objects in space and determine their
relationships.
Select one:
 True
False

Question 30
An aggregation of two or more tasks is known as an element.
Select one:
True
False
MIDTERM EXAM

Question 1
In the checklist appraisal method, a rater indicates judgments using:
Select one:
a. A six-square grid.
b. Descriptive paragraphs.
c. Yes-or-no responses.
d. A seven-point scale.

Question 2
The ____ appraisal method requires that the evaluation describe an employee's performance in
written narrative form.
Select one:
a. essay
b. work standards
c. checklist
d. alternation ranking

Question 3
Environmental factors should be viewed as:
Select one:
a. Performance obstacles under the control of employees.
b. Being the sole concern of employees, not their managers.
c. Modifying the effects of effort, ability, and direction.
d. Direct determinants of performance.

Question 4
To be effective, observations for determining training needs must be conducted by individuals
trained in observing employee behavior and translating observed behavior into specific training
needs.
Select one:
True
False
Question 5
It is generally recommended that informal performance appraisals should be conducted two or
three times a year for most employees.
Select one:
True
False

Question 6
The retirement age has been gradually decreasing over the last ten years.
Select one:
True
False

Question 7
Maroon Hotels Inc. is using the behaviorally anchored rating scale (BARS) method of employee
performance appraisal. What is the advantage of using BARS?
Select one:
a. It focuses on performance outcomes rather than functional behaviors.
b. It is an extremely simple and easy appraisal method to develop and execute.
c. It allows the active participation of both managers and job incumbents.
d. It does not require separate appraisal forms for different jobs.

Question 8
Who conducts the job orientation for a new employee in a "buddy system"?
Select one:
a. A human resource manager
b. A coworker
c. A line manager
d. An internal auditor

Question 9
The human resource department of Inverta Systems Inc. is redesigning its existing new employee
orientation program. To ensure that the new orientation program is effective, the company
should conduct the orientation:
Select one:
a. In brief sessions spread over several days.
b. As one long session as soon as a new employee joins the organization.
 c. Once in every six months for all employees.
d. After an employee has been on a job long enough to appreciate the sessions.

Question 10
Headhunters are usually used when there is a requirement for a large number of low-skilled
personnel in an organization.
Select one:
True
False

Question 11
Generally, taking notes during a job interview should be avoided.
Select one:
True
False

Question 12
Ideally, the human resource department should conduct a scheduled follow-up to the initial
orientation after a new employee has been on the job for:
Select one:
a. A month.
b. A year.
c. Two weeks.
d. Six months.

Question 13
Usually, the human resource (HR) manager should bear full responsibility for a new employee's
orientation.
Select one:
True
False

Question 14
In some organizations, a new employee's coworkers conduct the job orientation. This type of an
orientation is termed a ____.
Select one:
a. Lateral orientation
b. Cartel arrangement
 c. Buddy system
d. Vertical orientation

Question 15
Information related to food services and cafeteria should be provided during an organizational
orientation program as opposed to during a departmental and job orientation program.
Select one:
True
False

Question 16
Which of the following is NOT a common problem associated with job analysis?
Select one:
a. Employees are not allowed sufficient time to complete the analysis.
b. Only a single means and source are used for gathering data.
c. No training or motivation exists for jobholders.
d. Jobholders participate in the design of the job analysis procedure.

Question 17
Telecommuting is becoming popular in today's organizations.
Select one:
True
False

Question 18
Professional employer organizations (PEOs) place semi-skilled employees in short-term jobs.
Select one:
True
False

Question 19
Which of the following performance appraisal methods is also referred to as multi-rater
assessment?
Select one:
a. 360-degree feedback
b. Critical-incident appraisal
c. Behaviorally anchored rating scale
d. Essay appraisal
Question 20
Leon works in a company as the wholesale distributor for regular business customers. His job
involves the same few tasks each time. However, his job allows him considerable freedom in
organizing and pacing his work. Based on this information, it can be concluded that Leon's job
is:
Select one:
a. High in scope but low in depth.
b. High in scope and in depth.
c. Low in scope but high in depth.
d. Low in scope and in depth.

Question 21
An employee's lack of time or conflicting demands upon it, inadequate work facilities and
equipment, restrictive policies that affect the job, lack of cooperation from others, type of
supervision, temperature, lighting, noise, machine or equipment pacing, shifts, and even luck, are
all examples of:
Select one:
a. Direct determinants of employee performance.
b. Affirmative action plans as they relate to performance.
c. Environmental factors as performance obstacles.
d. Task perceptions as they relate to performance.

Question 22
____ refers to the freedom of jobholders to plan and organize their own work, work at their own
pace, and move around and communicate as desired.
Select one:
a. Job scope
b. Job depth
c. Job specialization
d. Job specification

Question 23
Fundamental rethinking and radical redesign of business processes to achieve dramatic
improvements in cost, quality, service, and speed is known as outsourcing.
Select one:
True
False
Question 24
Effective observations for determining an organization's training needs can be adeptly conducted
by:
Select one:
a. Employees who closely interact with customers and business clients.
b. Outside experts who are trained in auditing.
c. members of the board of directors (BOD)
d. Human resource specialists who are trained in performing job analyses.

Question 25
A new employee's orientation responsibilities are normally shared between the:
Select one:
a. New employee's peers and customer relationship managers.
b. Human resource department and the top management of the company.
c. Human resource department and the new employee's immediate manager.
d. New employee's subordinates and the line manager.

Question 26
Pals Computer Inc. is using the graphic rating scale method for its employees' performance
appraisal. Which of the following is a major weakness of this appraisal method?
Select one:
a. Evaluators fail to consider attendance, accuracy of work, and cooperativeness when rating
employees.
b. Evaluators are unlikely to interpret written descriptions in the same manner due to
differences in background, experience, and personality.
c. This method is suitable only for managerial employees.
d. This method includes only numerical ranges and completely avoids written descriptions.

Question 27
Empowerment is a management approach which involves:
Select one:
a. Giving managers the power to fire their subordinates without a valid reason.
b. Giving subordinates substantial authority to make decisions.
c. Subcontracting work to an outside company.
d. Concentrating the power to make decision in the hands of top management.
Question 28
Determinants of performance include all of the following EXCEPT:
Select one:
a. Role perception.
b. Effort.
c. Diversity.
d. Ability.

Question 29
An effective departmental and job orientation method is to give new employees a departmental
procedures manual to read and put them on menial tasks for the first couple of weeks.
Select one:
True
False

Question 30
The focus of the behaviorally anchored rating scale (BARS) and, to some extent, the graphic
rating scale and checklist methods of performance appraisal is primarily on performance
outcomes.
Select one:
True
False

Question 31
A needs assessment is a systematic analysis of the specific training activities an organization
requires to achieve its objectives.
Select one:
True
False

Question 32
Today human resource management (HRM) is clearly isolated from both the management and
the strategic planning process of an organization and occupies a purely administrative role.
Select one:
True
False
Question 33
An advantage of a structured interview is that it:
Select one:
a. Helps eliminate an interviewer's personal biases completely.
b. Allows an employer to eliminate all the other steps in the employee selection process.
c. Provides a more relaxed atmosphere when compared to an unstructured interview.
d. Allows systematic coverage of all questions deemed necessary by an organization.

Question 34
____ refers to the number and variety of different tasks performed by a jobholder.
Select one:
a. Job specification
b. Job scope
c. Job bandwidth
d. Job depth

Question 35
RedWing Advices Inc. has decided to advertise job openings on Truejobs.com, a reputed online
job portal. Which of the following is a disadvantage of using this source of recruitment?
Select one:
a. The life of an online advertisement is much shorter than paper-based advertisements.
b. The recruiting costs are extremely high.
c. Only limited information of the available jobs can be posted.
d. Too many applicants and unqualified candidates may be generated.

Question 36
Methods study identifies the motions and movements necessary for performing a task or job and
then designs the most efficient methods for putting those motions and movements together.
Select one:
True
False

Question 37
The orientation from coworkers often provides new employees with inaccurate and misleading
information.
Select one:
 True
False

Question 38
Training needs must be determined prior to establishing training objectives.
Select one:
True
False

Question 39
Management by objectives (MBO) requires that employees participate in the process of
performance evaluation by helping to set objectives.
Select one:
True
False

Question 40
The only necessary condition for high-level performance is an individual's ability.
Select one:
True
False

Question 41
It is important for all organizations to require employees to sign a form indicating they have
received and read the orientation kit.
Select one:
True
False

Question 42
Which of the following is true of the reliability of employment tests?
Select one:
a. The reliability of a criterion predictor plays an insignificant role in determining its
validity.
b. The reliability of a test is high if a person fails it on one day but makes an excellent grade
when taking it again a week later.
c. Reliability is necessary but not sufficient to show the validity of a criterion predictor.
d. Reliability measures how accurately a criterion predictor predicts the criterion of job
success.
Question 43
In the majority of Fortune 500 companies, the head of the human resource department, usually a
vice president, answers to the chief executive officer (CEO) of the company. In many
companies, the head of the human resource department sits on the board of directors, the
planning committee, or both. These trends are indicative of how human resource managers are:
Select one:
a. Constantly dealing with a shrinking role in most organizations today.
b. Expected to become more specialized in their specific area of function.
c. Required to possess competencies that are far less sophisticated than their predecessors.
d. Increasingly involved in their organization's strategic and policy-making activities.

Question 44
The process of evaluating and communicating to an employee how he or she is performing a job
and establishing a plan of improvement is referred to as:
Select one:
a. Job analysis.
b. Career plateauing.
c. Benchmarking.
d. Performance appraisal.

Question 45
Which of the following statements is true of Internet recruiting?
Select one:
a. Internet job listings tend to generate lower number of resumes when compared to a "want
ad" in a Sunday newspaper.
b. Advertising a job vacancy on a company website or on a job board costs a lot.
c. Job candidates seeking employment and managers searching for qualified job applicants
are increasingly relying on the Internet.
d. Recruiting people online is mostly restricted to vacancies in areas such as manufacturing.

Question 46
About two-thirds of apprentice able occupations are in the:
Select one:
a. Construction and manufacturing trades.
b. Agriculture and poultry sectors.
 c. Banking sector.
d. Software industry.

Question 47
When a temporary help agency is used for recruitment, the agency pays the salary and benefits of
the temporary help provided to an organization and receives an agreed-upon figure from the
organization.
Select one:
True
False

Question 48
Major advantages of behaviorally anchored rating scales (BARSs) include their simplicity and
ease of development.
Select one:
True
False

Question 49
Which of the following is a typical step in the management by results process?
Select one:
a. Describing an employee's performance in written narrative form
b. Keeping a written record of performance-related incidents as they occur
c. Rating employees based on accuracy of work
d. Measuring objective achievement

Question 50
In a job interview, the halo effect occurs when:
Select one:
a. A job candidate has some preconceived notions about the interviewer and his or her
organization.
b. A candidate being interviewed is overqualified for a job.
c. An interviewer uses only open-ended questions throughout the interview.
d. An interviewer allows a single prominent characteristic of a job candidate to dominate
judgment of all other traits.
PREFINAL EXAM

Question 1
The Civil Service Reform Act permits the use of ranking methods for federal employees.
Select one:
True
False

Question 2
Which of the following is true about pay grades and ranges?
Select one:
a. One approach for establishing pay grades and ranges is to have a relatively large number
of grades with identical rates of pay for all jobs within each grade.
b. In establishing pay grades and ranges, one method is to have a small number of grades
with a relatively narrow dollar range for each grade.
c. Ranges within pay grades are set up so that homogeneity can be achieved among
employees within grades.
d. When an employee reaches the top of the range for a given pay grade, he or she will not
be allowed to move to a higher grade.

Question 3
The incentive pay plan typically identified with many salespeople, which rewards employees, at
least partly, on the basis of sales volume is termed a ____ plan.
Select one:
a. stock option
b. piece work
c. commission
d. Scanlon

Question 4
Employee benefits are those rewards given only to employees retiring from an organization.
Select one:
True
False
Question 5
Common insurance-related employee benefits include:
Select one:
a. Retirement gratuity.
b. Paid rest periods.
c. Annuity plans.
d. Survivor benefits.

Question 6
Which of the following is an individual incentive plan devised by Frederick W. Taylor that pays
one rate for all acceptable units produced up to some standard and then a higher rate for all
pieces produced if the output exceeds the standard?
Select one:
a. Dual exchange rate system
b. Commission plan
c. Time-and-a-half for overtime system
d. Differential piece rate plan

Question 7
The factor comparison method of job evaluation is similar to the point method with the exception
that the factor comparison method eliminates the use of a monetary scale.
Select one:
True
False

Question 8
To make its compensation structure attractive, SatLight Inc. is initiating new fringe benefits to be
included in the structure. Which of the following employee benefits is legally required?
Select one:
a. Interest-free loan program
b. Company-provided housing
c. Stock bonus plan
d. State disability insurance
Question 9
The work standards approach to performance evaluation is most frequently used for production
employees.
Select one:
True
False

Question 10
Family Goods, a chain of departmental stores, provides an incentive pay plan along with its base
wage/salary structure. All of the following are reasons for the firm to offer an incentive plans in
addition to its base wage/salary structure EXCEPT that:
Select one:
a. Labor market competition necessitates the use of incentives.
b. Payroll expenses can grow or shrink in response to the success of the business.
c. Calculations are simpler when both systems are taken together.
d. Minimum wage laws specify the use of such a system.

Question 11
Workers' compensation is most frequently associated with:
Select one:
a. Vacation expense when combining business and personal travel.
b. Severance pay upon termination.
c. "Office pools" maintained by employees for special occasions.
d. Job-related illness or injury.

Question 12
Which of the following is true of apprenticeship training?
Select one:
a. Beginning workers in a highly skilled occupation cannot be trained through this method.
b. About three-fourths of apprenticeable occupations are in the service industry.
c. Apprentices learn most of the practical skills of a job through classroom training.
d. Wages paid apprentices usually begin at half those paid fully trained employees.
Question 13
What is the most reliable and most expensive method of surveying wage data?
Select one:
a. Controlled experimentation
b. Telephone interviews
c. Mailed questionnaires
d. Personal interviews

Question 14
Which of the following is true about self-directed work teams?
Select one:
a. They are teams of employees that accomplish tasks within their area of responsibility with
direct supervision.
b. Most self-directed work teams are based on the basic idea that when employees are
isolated from decision making, they can perform better.
c. They are well established in the United States, but relatively new in Europe.
d. Most companies that use such teams usually incorporate some type of group incentive pay
based on the performance of the respective work teams.

Question 15
Most wage and salary systems establish pay ranges for jobs based on the relative worth of the job
to an organization.
Select one:
True
False

Question 16
Broadbanding:
Select one:
a. Prevents the overlapping of pay ranges between two salary bands.
b. Reduces the number of pay grades in a salary system.
c. Results in narrow categories or groups of jobs.
d. Introduces unnecessary distinctions among jobs.
Question 17
Top management executives constitute the vast majority of private-sector employees who hold
stock options.
Select one:
True
False

Question 18
Which of the following areas of training evaluation assesses how much did the trainees like a
training program?
Select one:
a. Results
b. Reaction
c. Learning
d. Behavior

Question 19
Although it is sometimes extended, unemployment compensation is limited to a maximum of:
Select one:
a. 12 months.
b. 12 weeks.
c. 30 days.
d. 26 weeks.

Question 20
There is a universal set of compensable factors that can be used by all organizations when
developing methods for determining the value of various jobs.
Select one:
True
False
Question 21
The management at Virtue Infra Inc. has decided to reward good performance within the
organization through group incentives. Which of the following is a negative impact the firm will
have to face as a result of using group incentives?
Select one:
a. The members within a group are not motivated by group incentives to exert peer pressure
on each other to perform.
b. Group incentives are paid only when an employee retires or decides to separate from a
company.
c. Groups can become considerably less competitive with one another, leading to the
detriment of the entire organization.
d. The members of a group may not perceive a direct relationship between their individual
performances and that of the group.

Question 22
Which of the following is a potential use of job evaluations?
Select one:
a. To develop a pay structure based on seniority alone
b. To reduce pay grievances by reducing their scope
c. To eliminate the need to compare jobs and pay rates with those of other organizations
d. To appraise the performance of employees holding the jobs

Question 23
For premium-priced stock options, a stockholder realizes a gain only when the:
Select one:
a. Selling price is equal to the exercise price.
b. Selling price is lower than the exercise price.
c. Market value exceeds the exercise price.
d. Market value is equal to the exercise price.

Question 24
Prior to the passage of the Social Security Act of 1935, employee benefits were not widespread.
Select one:
True
False
Question 25
Ideally, the job evaluation process in an organization should ensure external equity, while wage
surveys should ensure internal equity.
Select one:
True
False

Question 26
A new law was passed that prohibits cash bonuses and other incentives for the five most-senior
officers and the 20 highest-paid executives at companies that have received funds under the:
Select one:
a. Troubled Asset Relief Program.
b. Defends Retention Program.
c. Scanlon plan.
d. Phantom stock plan.

Question 27
In the ____ of job evaluation, job subfactors are used to describe compensable factors in detail.
Select one:
a. job classification method
b. ranking method
c. factor comparison method
d. point method

Question 28
A virtual classroom is an online teaching and learning environment that integrates chat rooms,
desktop video conferencing, websites, and e-mail distribution into a typical lecture-based system.
Select one:
True
False

Question 29
Qualified stock options are known for their:
Select one:
a. Lack of restrictions.
b. High rate of interests.
c. Lack of marketability.
d. Favorable tax treatment.
Question 30
Health insurance under social security, commonly known as Medicare, provides:
Select one:
a. Universal coverage to all individuals who make social security payments.
b. Partial hospital and medical reimbursement for persons over 65.
c. Free prescription drug coverage for all citizens over 50.
d. Free medical treatment to children under 14 and individuals over 60 years of age.

Question 31
Which of the following is true about the job ranking method?
Select one:
a. It is the most often used job evaluation technique
b. It evaluates jobs against a predetermined scale or class.
c. It produces an ordering of jobs.
d. It is used to indicate the relative degree of difference among jobs.

Question 32
The most reliable and least expensive method of surveying wage data is the personal interview.
Select one:
True
False

Question 33
GH Pharma Inc. is planning to introduce employer-sponsored SIMPLE IRA as the retirement
plan for its employees. Which of the following is true in this context?
Select one:
a. If GH Pharma Inc. establishes a SIMPLE IRA it does not have to worry about meeting the
minimum participation/minimum coverage rules applicable to other types of plans.
b. If GH Pharma Inc. makes matching contributions it must match employee contributions
up to 7 percent of the employee's compensation for the calendar year.
c. Employees who received at least $2,000 in compensation during any prior tax years will
be eligible to participate in the firm's SIMPLE IRA plan for the current year.
d. GH Pharma Inc. will need to make either matching contributions or elective contributions.
Question 34
The following guidelines should be followed when conducting wage and salary surveys
EXCEPT:
Select one:
a. Disregard variations in job descriptions.
b. Assess the participating companies for comparability.
`Compare more than base wage or salary.
c. Correlate survey data with adjustment periods.

Question 35
Research indicates that organizational suggestion systems are basically a waste of time and
money for employers.
Select one:
True
False

Question 36
The rights of employees to receive money paid into a pension or retirement fund on their behalf
by their employer if they leave the organization prior to retirement is called:
Select one:
a. Confirmation.
b. Vesting.
c. Binding.
d. Stock appreciation rights.

Question 37
The most common practice in the checklist method of performance appraisal requires an
evaluator to rank a set of statements describing how an employee carries out the duties and
responsibilities of a job.
Select one:
True
False
Question 38
JF Software Inc. has decided to use the factor comparison technique for job evaluation. This
method will require evaluators in the organization to conclude the evaluation by linking each
compensable factor to a:
Select one:
a. Social grid.
b. Monetary scale.
c. Growth matrix.
d. Point scale.

Question 39
Stock option plans are generally designed to give managers an option to buy company stock at
the existing market price.
Select one:
True
False

Question 40
When the point method of job evaluation is used, all jobs in an organization must be examined
and evaluated.
Select one:
True
False

Question 41
Performance-vesting options are also called:
Select one:
a. Price-vesting options.
b. Premium-priced options.
c. Restricted-vesting plans.
d. Phantom stock plans.
Question 42
To keep its compensation system fair and competitive, GD Systems Inc. has developed a new
base wage and salary system. The primary objective of this system should be to establish an
equitable compensation for employees based on ____.
Select one:
a. the demand for a job in the market
b. their seniority alone
c. the prevailing cost-of-living alone
d. their jobs and levels of performance

Question 43
In recent times, stock grants and stock options have often represented the largest portion of an
executive's total compensation.
Select one:
True
False

Question 44
Classes of jobs that for pay purposes are grouped on the basis of their worth to an organization
are called:
Select one:
a. Pay slots.
b. Pay grades.
c. Pay bands.
d. Pay ranges.

Question 45
The ____ approach to performance appraisal is most frequently used for production employees
and is basically a form of goal setting for these employees.
Select one:
a. critical-incident
b. management by objectives
c. work standards
d. forced-distribution
Question 46
Generally, unemployment compensation is:
Select one:
a. Funded through taxes paid by employees.
b. Awarded to individuals who have been fired from their jobs due to their own
inefficiencies or faults.
c. Limited to a maximum of 36 weeks.
d. Calculated on the basis of an individual's wages received in the previous period of
employment.

Question 47
According to standards set by the U.S. Department of Labor's Office of Apprenticeship Training,
Employer and Labor Services (OATELS), apprentices are required to receive a minimum of
____ hours of organized instruction per year.
Select one:
a. 55
b. 366
c. 144
d. 24

Question 48
Evaluation of training can be broken down into four areas. Which of the following is NOT one of
those areas?
Select one:
a. Results
b. Reaction
c. Agility
d. Behavior

Question 49
The intent of most incentive pay is to reward above-average performance rapidly and directly.
Select one:
True
False
Question 50
Piece rate plans have been in effect for over 150 years.
Select one:
True
False
FINALS EXAM

Question 1
Fees charged by arbitrators in grievance arbitration are normally paid on a 50-50 basis by a
company and the union.
Select one:
True
False

Question 2
Generally, in unionized organizations a grievance process is initiated by an organization that has
a complaint regarding some action perceived to be inconsistent with the terms of the union
contract.
Select one:
True
False

Question 3
In the context of grievance arbitration, AAA stands for American Arbitration Association.
Select one:
True
False

Question 4
Noba Products Inc. has decided to take the total rewards approach to designing a base
wage/salary structure. Which of the following will be true of Noba Products Inc?
Select one:
a. The company will place more emphasis on lower-cost rewards rather than compensation
and benefits.
b. The company will not be able to effectively engage a diverse workforce.
c. The company will rely only on pay and benefits when developing a strategy to motivate
employees.
d. The company will provide a limited array of rewards to its employees.

Question 5
Flexible-benefit plans are also called ____ plans.
Select one:
a. cafeteria
b. cash-balance
 c. employer-sponsored
d. standard

Question 6
Which of the following unions had only skilled workers as members?
Select one:
a. Craft unions
b. Farmer unions
c. Production unions
d. Industrial unions

Question 7
For group life insurance, physical examination is usually required for coverage.
Select one:
True
False

Question 8
The management of Neova Chemicals Inc. wants to use its rights provided under the free-speech
clause of the Taft-Hartley act. Thus, under this clause the management of Neova Chemicals:
Select one:
a. Can initiate yellow-dog contracts.
b. Has the right to express its opinion about unions to its employees, provided they carry no
threat of reprisal.
c. Can issue injunctions.
d. Has the right to make a slander or libel about union leaders, provided it is in the best
interest of the owners of the company.

Question 9
True Workers Union (TWU) and Save Employees Union (SEU) have merged to form a new

union called the Union of True Employees (UTE). This is an example of a ____.
Select one:
a. absorption
b. diversification
c. amalgamation
d. acquisition
Question 10
Telecommuting refers to a practice where:
Select one:
a. Two or more employees form a group and exchange each other's work to eliminate
monotony.
b. Employees work for longer hours per day to reduce the number of days in a work week.
c. Employees are able to interact with the office when working at home or while travelling.
d. Two or more part-time individuals perform the work of one full-time individual.

Question 11
____ refers to how accurately a predictor actually predicts the criterion of job success.
Select one:
a. Validity
b. Agility
c. Adaptability
d. Reliability

Question 12
"Each segment of training should be organized so that an individual can see not only its purpose
but also how it fits in with other parts of the entire program. In addition, later segments should
build on those presented earlier." Which of the following principles of learning do these
statements reflect?
Select one:
a. Effective reinforcement
b. Flow of the training program
c. Motivation to achieve personal goals through training
d. Practice and repetition

Question 13
Job scope refers to the freedom of jobholders to plan and organize their own work, work at their
own pace, and move around and communicate as desired.
Select one:
True
False
Question 14
In the context of the duty of fair representation, which of the following statements is true?
Select one:
a. Unions are not allowed to represent nonunion members.
b. An employee cannot recover damages from a union even if the union has breached its
duty of fair representation.
c. If a union decides in good faith and in a nonarbitrary manner that a grievance is not
meritorious, a breach of fair representation does not exist.
d. An individual employee cannot present a grievance to the employer without the aid of a
union.

Question 15
Nathan feels that he was terminated from employment with no good reason at all. However, his
employer disagrees. Both the parties have decided to solve this dispute through arbitration.
Which of the following is true in this scenario?
Select one:
a. Both Nathan and his previous employer need to agree in advance to abide by an
arbitrator's decision.
b. The arbitrator does not have to work within the framework that both the parties have
negotiated in their collective bargaining agreement.
c. If the dispute is not solved through arbitration, Nathan can take the case to the human
resource department.
d. Only Nathan will have to pay the arbitrator for his or her services.

Question 16
An employee's right to be dealt with fairly and justly during the investigation of an alleged
offense and the administration of any subsequent disciplinary action is called:
Select one:
a. Due process.
b. Employment at will.
c. Just cause.
d. Duty of fair representation.

Question 17
Title VII of the Civil Rights Act permits the use of a bona fide performance appraisal system.
Select one:
True
False
Question 18
Adverse impact is a condition that occurs when the selection rate for women and minorities is
less than 80 percent of the selection rate for the majority group in hiring, promotions, transfers,
demotions, or any selection decision.
Select one:
True
False

Question 19
____ is the inclination of a manager to rate most employees' performance near the middle of the
performance scale.
Select one:
a. Recency error
b. Leniency error
c. Central tendency error
d. Fundamental attribution error

Question 20
One method proposed for increasing the effectiveness of all recruiting methods is the use of
____.
Select one:
a. HR scorecards
b. manual information systems
c. realistic job previews
d. material requisition forms

Question 21
Realistic job previews:
Select one:
a. Report an employee's requirements from a job to the management.
b. Create inaccurate expectations about a job among applicants.
c. Cause high turnover among employees.
d. Supply both positive and negative job information to an applicant.
Question 22
With which of the following flexible work arrangements is the potential disadvantage of fatigue
typically associated?
Select one:
a. Telecommuting
b. Job sharing
c. Condensed work week
d. Crowdsourcing

Question 23
Which of the following refers to all the positive features and benefits a company offers to attract
job applicants?
Select one:
a. Cooperative work programs
b. Job postings
c. Organizational inducements
d. Job specifications

Question 24
The ____ rewards employees based on knowledge, skills, and behaviors that result in
performance.
Select one:
a. demand-based pay system
b. market-based pay system
c. competency-based pay system
d. seniority-based pay system

Question 25
Which of the following statements is true about how equal employment legislation has
influenced recruitment activities?
Select one:
a. Recruiting through employee referrals is recommended by the Equal Employment
Opportunity Commission (EEOC).
b. Organizations are prohibited to advertise in media directed toward minorities and women.
c. Expressing a preference for a female worker in a newspaper ad is acceptable if gender is a
bona fide occupational qualification for the position.
d. As per the Equal Employment Opportunity Commission (EEOC) guidelines, employers
should avoid contacting nontraditional recruitment sources.
Question 26
Truck Drivers Union, a small labor union in terms of membership, merged into a considerably
larger union, Global Drivers Union. This is an example of an absorption.
Select one:
True
False

Question 27
When a company establishes an employee stock ownership plan (ESOP), the shareholders risk
losing voting control of the company.
Select one:
True
False

Question 28
The progress of an individual or group as a result of training can be plotted on a chart to form a

:
Select one:
a. Learning curve.
b. Utility curve.
c. Skills map.
d. Knowledge inventory.

Question 29
Under Internal Revenue Code's Section 125 and/or the Deficit Reduction Act (DEFRA), an
employer requires an employee to complete more than three years of service before becoming
eligible under a flexible-benefit plan.
Select one:
True
False

Question 30
Self-directed work teams are well established in Europe and especially in Scandinavia, but are
relatively new in the United States.
Select one:
True
False
Question 31
Which of the following areas of training evaluation attempts to measure changes in variables
such as reduced turnover, reduced costs, and improved efficiency?
Select one:
a. Behavior
b. Results
c. Learning
d. Reaction

Question 32
In order to avoid the risk of inviting an employment discrimination lawsuit during the
recruitment process, employers should avoid asking for information that is related to an
applicant's:
Select one:
a. Future career plans.
b. Age.
c. Expectations from a job.
d. Education.

Question 33
Consistency in administering discipline means that factors such as past conduct, length of
service, work record, and other mitigating factors must be ignored in determining an appropriate
discipline.
Select one:
True
False

Question 34
Seniority systems are designed to benefit employees:
Select one:
a. Who are categorized under minority groups.
b. With greater length of service.
c. Who perform above the industry standards.
d. With work experience in two or more organizations.
Question 35
A union shop agreement requires employees to join a union and remain members as a condition
of employment.
Select one:
True
False

Question 36
Which of the following statements is true regarding the National Labor Relations Board
(NLRB)?
Select one:
a. The board is a seven-member panel.
b. The board members serve for a three-year term.
c. Its members are appointed by the President of the United States.
d. It was established by the Clayton Act.

Question 37
The sociotechnical approach to job design was first introduced as an alternative to the situational
approach to viewing job design.
Select one:
True
False

Question 38
To determine the reliability of an employment test used by True Arc Inc., the test was
administered to a group of employees. The results of the test were randomly separated into two
equal groups. The scores of the two groups were then correlated to assess the reliability of the
test. Which of the following methods of determining a test's reliability did True Arc Inc. use?
Select one:
a. Split-halves
b. Parallel forms
c. Polygraph test
d. Test-retest
Question 39
Which of the following acts established the National Labor Relations Board (NLRB)?
Select one:
a. The Railway Labor Act
b. The Taft-Hartley Act
c. The Norris-La Guardia Act
d. The Wagner Act

Question 40
Which of the following is an effective practice for a manager to apply when conducting an
employee's performance appraisal interview?
Select one:
a. Concentrating on the employee's weaknesses
b. Knowing the employee's job description
c. Being as subjective as possible
d. Evaluating the employee based on his or her personality

Question 41
Justin is not a member of any union at his workplace. He had filed a grievance against the
management. The union steward helped him throughout the case until he settled the matter in the
bargaining unit. Such an act shows adherence to:
Select one:
a. Duty of fair representation.
b. Due process.
c. Just cause.
d. Progressive discipline.

Question 42
Job sharing is especially attractive to people who want to work, but not full-time.
Select one:
True
False
Question 43
The Civil Service Reform Act was the first important piece of prolabor legislation in the United
States.
Select one:
True
False

Question 44
Why are employees often unaware of the benefits their organizations offer?
Select one:
a. Employees generally do not take much interest in the benefits being offered as they are all
taxable
b. Organizations are not legally required to provide any benefits to their employees.
c. Employee benefits are an insignificant component of overall compensation.
d. Organizations often make little effort to communicate their employee benefits.

Question 45
Both skilled and unskilled workers in a particular industry or group of industries are members of
an industrial union.
Select one:
True
False

Question 46
A recent trend has been an attempt by the management of many organizations to eliminate or
restrict the use of cost-of-living adjustments (COLA) clauses.
Select one:
True
False

Question 47
The primary purpose of a learning curve is to provide feedback on a trainee's progress.
Select one:
True
False
Question 48
Craft unions can include skilled and unskilled workers, whereas industrial unions can enroll only
skilled workers.
Select one:
True
False

Question 49
The web-based human resource systems (eHR) that many organizations have implemented have
not really helped to effectively communicate human resource programs.
Select one:
True
False

Question 50
The more a manager uses positive motivational techniques (e.g., recognizing and praising good
performance), the more satisfied an employee is likely to be with the appraisal interview and
with the manager.
Select one:
True
False