MGMT 330 - Exam #4

Jaxon, the CEO of a tire company, believes that profit sharing has increased the productivity of his organization. He feels that an incentive plan motivates employees to be more productive. Which statement strengthens Jaxon's argument?

Profit sharing helps employees to cooperate and focus on organizational interests.

Identify the correct statement about the trends in international union membership.

In Western Europe, it is common to have union coverage rates of 80 to 90 percent.

LeWanda, a vice president of human resources at a steel supply company, wants to develop its programs for employee empowerment. However, she is concerned because unions are heavily involved in representing steel workers and might object to empowerment programs. Which statement about the National Labor Relations Board would encourage LeWanda to move forward with the employee empowerment program?

In its rulings, the NLRB has shown clear support for employee involvement in decision making.

Shinjiro, the HR vice president at Rockton Co., evaluates responses from an employee survey at the company's annual benefits presentation. He concludes that many employees are confused about their options for health insurance, and they are often unhappy with the policy they choose. What should Shinjiro do to resolve this situation?

Introduce software that will guide employees to the insurance option for their needs.

What is most likely a consequence of paying most or all of a salesperson's compensation in the form of commissions?

It encourages the salesperson to focus on closing the sale.

What is a characteristic of the balance sheet approach used for expatriate compensation?

It ensures managers receive extra pay for the inconvenience of locating overseas.

How does the balanced scorecard help organizations deal with unethical behaviors of executives?

It ensures that by rewarding the achievement of a variety of goals, temptation on the executive's part to gain bonuses by manipulating data are reduced.

Sandra, an HR manager, and her staff devote long hours to planning and running a "benefits fair," where employees can view displays and ask questions about the various parts of the company's benefits package. The following week, the marketing manager asks if the effort was worthwhile. Sandra says it was. What is the most likely reason for Sandra's opinion?

It increased employees' commitment and satisfaction, so they contribute more to the company.

The executives of Crunch Granola are proud of the company's management practices, which they believe ensure fair treatment of employees better than union representation does. However, some complaints about working conditions have shown up in the suggestion box. The executives asked the HR manager, Marissa, to plan a system of employee-manager meetings to address issues such as these. As Marissa considers this request, what potential problem should she keep in mind?

It is possible that a management-established system of employee representation may violate the NLRA.

Mercury Group depends heavily on its workforce of software engineers, systems analysts, and coders. Which statement best explains why Mercury Group would offer its employees paid maternity and paternity leave?

It makes the company more attractive to workers who are in high demand.

What is a characteristic of a performance bonus?

It must be re-earned by employees during each performance period.

An electric utility operates in a state with right-to-work laws. About three-quarters of its line workers have elected to join the union that represents them. James, one of the line workers, believes that his supervisor is unfairly passing him over when selecting employees to earn extra pay by working overtime. James wants to file a grievance according to the process in the labor agreement, but he is not a member of the union. What must the union do in this situation?

It must give James representation equal to what a union member would receive.

What is a characteristic of long-term disability insurance?

It pays about 50 to 70 percent of the employee's salary in case of disability.

Li Hua, an American, works for an automobile manufacturer in Maine. Her manager, Tobal, sends her on an overseas assignment to handle operations at the company's newly acquired plant in Germany. Which statement, if true, most likely led to Li Hua being chosen for the assignment?

Li Hua possesses the motivation to succeed and enjoys a challenge.

Malia and Pascha are employees of a software development firm in San Francisco. Pascha believes that Malia exhibits behaviors that resemble those of individuals from masculine cultures. Which statement, if true, supports Pascha's beliefs?

Malia places more emphasis on creating an atmosphere of competition among her team members.

Riana, a human resource professional, works for a U.S. company that is opening an office in Mexico. She is preparing a training program for the managers there to learn how to carry out performance management. What is a valid point Riana should cover in the training?

Managers can expect that employees want positive feedback before learning about areas they need to improve.

Which statement characterizes an industrial union?

Members are linked by their work in a particular industry.

__________ provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system.

Merit pay

Carlos is deciding between two jobs that provide equal pay. He compares the health care benefits provided by both jobs to help him make a decision. One job offers a flexible spending account, while the other job offers him managed care. Which statement will help Carlos make a decision?

Money in flexible spending accounts is not taxed, so employees get more take-home pay.

The __________ has the authority for certifying or decertifying a union through an election.

National Labor Relations Board (NLRB)

In a meeting to discuss pension plans, management decides to offer retirement plans exclusively to the organization's owners and top managers. Gordon, one of the top managers, disagrees with this decision because he believes the company can benefit more by providing pensions to a broad range of employees. Which statement strengthens Gordon's belief?

Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees.

Identify the accurate statement about employee benefits.

Paid vacation tends to be more generous in Western Europe than in the United States.

__________ is a type of incentive pay in which payments are a percentage of an organization's profits and do not become part of its employees' base salary.

Profit sharing

__________ strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee.

The Internal Revenue Service

Dobson Manufacturing is setting up production and distribution facilities in Mexico to meet the growing demand there. The company's executives want the human resource department to identify one of its U.S. managers to lead the operations, so he or she can ensure that the company culture is maintained. They ask the HR vice president to recommend a person with strong financial skills. The HR vice president agrees but adds that they also should use psychological testing to identify candidates who are highly flexible and conscientious. Which statement best supports the HR vice president's advice?

These traits will help the manager persevere through culture shock.

Valerie and Victoria work at Run for Fun Inc. Valerie claims that forming a union can help enhance workers' bargaining power with management. Victoria, however, argues that it is quite challenging to form a union. Which statement strengthens Victoria's argument?

A union needs to convince a majority of workers to have a common goal.

Marcus is the owner of a restaurant called Top Hat Diner. He decides to increase employee motivation by introducing benefit packages. However, Sarah, the manager, suggests that employees will be more motivated if Marcus increases their actual wages. Which statement, if true, strengthens Sarah's argument?

Benefit packages are more difficult for employees to understand and appreciate than pay structures.

What is the difference between bonuses and team awards?

Bonuses reward attainment of a specific goal, whereas team awards reward performance measured more broadly.

What is a similarity between unemployment insurance benefits and workers' compensation benefits?

Both of the programs' costs depend on the organization's experience ratings.

Jacqueline, a sales executive, believes that her hard work and persistence will reap rewards in the future. She is not very assertive, prefers to be instructed, and awaits her team's approval before taking decisions. Jacqueline's attitudes and behavior are consistent with a culture that

is long-term oriented.

Elliott joins the human resource department at Food Castle Inc., where the production workers are represented by a union. Which goal would Elliott most likely be expected to work toward in supporting any negotiations with the union?

keeping operations flexible and retaining some control over schedules

Jaret, a new supervisor at Superior Athletics Inc., is being trained on skills that managers and union leaders require to encourage employee-management cooperation. He is learning the different ways of dealing with employee-management conflicts and how to resolve situations in ways that benefit both parties. In the context of labor management, Jaret is receiving training on

labor relations.

When employees in an organization have reason to believe that the management is overlooking their needs and interests, they are likely to respond by collectively forming

labor unions.

When an employer excludes workers from a workplace until they meet certain conditions, it is known as a

lockout.

The Tremont Corporation includes stock options and stock purchase plans in executive pay. Executives at the company want to do what is best for Tremont because that will cause the value of the stock to grow. The stock options are an example of

long-term incentives.

Lisette's employer provides her with an insurance plan that requires her to obtain approval before being admitted to the hospital for surgical procedures. Which variation of health coverage does this illustrate?

managed care

Organizations customize their balanced scorecards according to their

markets, products, and objectives.

The idea that unions benefit people in communities by holding employers accountable for the way they treat workers is an example of a(n) __________ goal.

societal

Tri-Form, a medical technology company, determines that most problems handled by employees at its help desk can be resolved within 20 minutes. The company sets 20 minutes as the standard time for resolving a customer problem. If an employee solves a customer's problem in less than 20 minutes, the employee still earns 20 minutes' worth of wages. Which payment method does this scenario illustrate?

standard hour plan

Byron owns and manages a small lawnmower repair store. He determines the time required by his employees to complete each task assigned by him. When employees complete the repairs in less time, they receive an amount of pay equal to that time determined by him. In this scenario, Byron is using a

standard hour plan.

The link between employees' performance and pay is hardest to establish in

stock ownership plans.

Weber Optical, an eyeglass manufacturer, pays employees an incentive based on the average amount of work completed per hour. Weber Optical pays $10 for processing 20 invoices per hour. An employee who processes 30 invoices would earn $15 per hour. Hence, Weber Optical pays the same rate per invoice no matter how many invoices an employee processes per hour. Which type of incentive pay does this scenario illustrate?

straight piecework plan

An employee at FastPhones who produces 10 phone components in an hour earns $9 ($0.90 × 10) per hour, while another employee who produces 15 components earns $13.50 ($0.90 × 15). This is an example of a

straight piecework plan.

Collective bargaining differs from one situation to another in terms of the range of employees and employers covered by the contract—in other words, the bargaining

structure.

What is an advantage of a qualified plan in retirement benefits?

tax-free earnings on the money in the retirement fund

Every employee at Kline Engineering received a check for $1,500 at the end of the year to thank them for their efforts in reducing overhead costs by 25%. Which type of incentive pay does this represent?

team awards

Which law regulates unions' actions with reference to their members, including financial disclosure and the conduct of elections?

the Landrum-Griffin Act

A multinational organization uses a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard. This incentive plan is representative of

the Scanlon plan.

Which law permits states to pass right-to-work laws?

the Taft-Hartley Act

The employees' union and the management at Pederson Inc. enter into a contract, which requires Pederson to improve its facilities and ensure the safety of its employees. However, a few months later, the employees observe that the conditions have remained the same and that management has not taken any steps to revamp its systems. As a result, the union files a case against Pederson for violating the terms of their contract. In order to resolve this issue, the union and Pederson will both have to participate in a process for resolving conflicts, known as

the grievance procedure.

What are vesting rights?

the guarantee that employees in a pension plan will receive a pension at retirement age, regardless of whether they stay with the employer

Identify the right of employees that is covered under the Taft-Hartley Act.

the right to choose whether they join a union or other group

Which term accurately describes Melanie, who was born in the United States and is currently working in Italy for a company headquartered in China?

third-country national

Which term accurately describes Melanie, who was born in the United States and is currently working in Italy for a company headquartered in China?

third-country national.

A __________ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits.

top-heavy

Representatives of management at Atlantic Pipe and of the union representing its workers are preparing to negotiate contract provisions related to job security. Which topics are most likely to be included in this round of contract negotiations?

training programs, transfer arrangements, and relocation allowances

Morgan is the founder of a new start-up company. She hires mostly young employees who are recent college graduates. She finds that most of her employees want to further their knowledge and skills and want to take coursework to accomplish this. Furthering the employees' knowledge would benefit Morgan's company, so she decides to encourage this behavior. Which program is Morgan most likely to use in order to do so?

tuition reimbursement program

Most organizations offer __________ to encourage learning and attract employees who wish to develop their knowledge and skills.

tuition reimbursement programs

Sanjay's company lays down stringent rules for employees to follow at work. Employees are expected to set goals for each day and week and share those goals on the company intranet. This way, Sanjay and his co-workers can be aware of the progress of departmental projects and prepare far in advance to meet deadlines. These qualities best describe a company that rates high on

uncertainty avoidance.

Nadir joins Midwest Homes Inc. as an executive designer. The HR manager informs him that he will have to join the labor union within a period of 30 days from his start date. In the context of the security provisions related to union membership, Nadir's HR manager is referring to a(n) __________ arrangement.

union shop

The employees of After Dusk Lighting are concerned about company management overlooking their interests. They decide to form a union to voice their concerns and speak up for their rights. They elect Chris to represent them during negotiations. Chris's new role requires him to ensure that the terms of the labor contract are enforced and that the interests of the union are met. In this context, Chris most likely holds the position of

union steward.

Jenner is the CEO of a company that is expanding overseas. He considers introducing a cafeteria-style benefits plan to cater to the company's diverse workforce. However, the HR team brings up the concern of higher expenses involved in this type of benefits. What is Jenner likely to do to lower costs at the initial stage?

use software packages to design the plan rather than design his own

Which activity involves giving the expatriate recognition for the overseas service when the person returns home?

validation

Benito is sent on a foreign assignment to London. On his return, he is rewarded with a flattering story about his experiences in the company newsletter and a meeting with executives to discuss opportunities for using what he learned in key assignments. The firm's recognition of Benito's service can be best described as a form of

validation.

Raffe, an American, works for a company that manufactures electronics. His managers select him for an assignment to lead the launch of a new product line in Germany. Which topic will be the most important during training to prepare him for the assignment?

what to expect from German culture

Which situation is required for workers to become eligible for unemployment benefits?

when they are actively seeking work

Rebekah, who is pregnant, works for an organization with more than 100 employees. She lives 20 miles away from work. By federal law, she is entitled to__________ of unpaid leave after her child is born.

12 weeks

What is the minimum percent of employees in a bargaining unit who must sign authorization cards for the National Labor Relations Board to hold a union representation election?

30 percent

By law, what is the minimum percentage of assets that an employee stock ownership plan (ESOP) must invest in its company's stock?

51

Joachim is a financial analyst at a local housewares manufacturer. He knows that saving for college for his 5-year-old twin boys is important but also challenging. He was excited to learn that his employer planned to implement a college tuition plan that lets parents and other family members defer taxes on their contributions to the plan. What is the type of plan being implemented?

529 savings plan

Most national unions in the United States are linked with the __________, an association that seeks to improve the shared interests of its member unions at the national level.

American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)

Colin, a British citizen, and George, a U.S. citizen, are employees of an electronics manufacturing company headquartered in London. While Colin works out of the London office, George operates out of Chicago. Which statement is an accurate depiction of this scenario?

Colin is a parent-country national.

Wade loses his job during a layoff at his company. He's worried about not having access to his health insurance benefits anymore. However, his company is required to offer him the same health insurance coverage for up to 36 months following the layoff. Which federal law applies in this scenario?

Consolidated Omnibus Budget Reconciliation Act

Fumiya is the human resource manager of a one-year-old technology company. The founder wants him to set up a retirement plan. Fumiya thinks the best approach during the company's early years would be a defined-contribution plan funded with profit-sharing dollars. Which statement best supports his idea?

Contributing a share of profits gives the company more flexibility as it establishes itself.

A nursing assistant in a nursing home filed a grievance that he was unfairly passed over for a promotion. Discussions and appeals did not satisfy the employee, so the issue went to arbitration. The arbitrator decided that the nursing home must promote the employee, based on the terms of its contract, in spite of management's protests that the employee was too unreliable to handle the greater responsibility. The employee's supervisor urges Sanjay, the director of human resources, to file an appeal in the state courts. Sanjay says doing so would be a wasted expense. Which statement best supports Sanjay's conclusion?

Courts generally avoid reviewing arbitrators' decisions in these matters.

What is a reason for the popularity of employee stock ownership plans (ESOPs)?

ESOPs provide tax advantages to employers.

As Troller Inc., a garden equipment manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Evette, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which statement best supports Evette's argument?

Employees do not pay income taxes on most benefits they receive.

Trilogy Inc. has a benefits package that includes paid vacations and sick leave. The human resource manager proposes shifting this time into a bank of paid time off. What would be an advantage of this change?

Employees have more flexibility and privacy for their personal matters.

Carlos, an HR manager, conducts a survey to learn which benefits employees value the most. However, he finds that the survey results are difficult to apply. What is the most likely reason?

Employees have very different opinions about what they value.

Phillips Group, a marketing company, has implemented a few incentive plans to motivate its employees. The organization encourages employees to learn new skills and cooperate with others. Which condition will contribute to employees' feeling that the organization's incentive pay plans are fair and something to pursue?

Employees must be able to understand the requirements of the incentive pay plan.

Juan, the CEO of a company, considers dropping medical insurance from the list of benefits provided to employees. Allyson, the operations director, disagrees with Juan by stating that medical insurance is a high-value benefit. Which factor supports Allyson's statement?

Employees usually realize that surgery or a major illness can be financially devastating.

For incentive pay to motivate employees to contribute to the organization's success, the pay plans must be well designed. Which statement describes a characteristic of a well-designed plan?

Employees value the rewards or incentives that are being offered.

Keith, a supervisor, believes that employees should participate in pay-related decisions. He says that it will most likely help in the success of incentive plans, and the plans are more likely to influence employee behavior as desired. Which statement weakens this argument?

Employees will make decisions that are in their best interests at the expense of the organization's interests.

What is an advantage of providing benefits instead of cash compensation?

Employers can assemble creative benefits packages that give them a competitive advantage.

In the United States, what is the legal requirement for giving employees paid vacation?

Employers decide on paid time off; there is no minimum.

Tomas, a production worker, complains to a human resource professional at his company that when he asked his supervisor for a week off to care for his 10-year-old daughter after surgery, the supervisor replied, "Can't your wife do that instead?" Which statement best summarizes what the HR professional should explain to the supervisor?

Equal employment opportunity requires that access to benefits not be limited by sex.

Erika, a Canadian citizen, has been working in the United States for two years. Erika's manager, Henri, believes she possesses the skills required for adaptation and is ideal for an overseas managerial assignment in India. Which statement, if true, strengthens Henri's belief?

Erika has the ability to foster relationships with people in a host country.

Maddie, a sales manager at Swanson Inc., claims that labor and management are rivals for most organizations. Colleen, the HR manager, says she is aware of exceptions. Which statement best supports Colleen's perspective?

Examples of cooperation between labor and management include employee involvement in decision making and self-managing teams.

Two management students, Micah and Raul, discuss the pros and cons of employee benefits. Micah states that unemployment insurance is more advantageous to employees than it is to employers, while Raul argues that employers receive more rewards from it. Which statement weakens Raul's argument?

Federal and state taxes paid by employers fund most of unemployment insurance.

What is the drawback of stock ownership as a form of incentive pay?

Financial benefits mostly come when the employee leaves the organization.

__________ is a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.

Gainsharing

For five years, Willard Insurance Group offered $500 bonuses to individuals who identified ways to reduce costs by at least $1,000 per year. In the first year of that incentive program, 31 employees earned the bonus, but last year, only 14 submitted ideas, and only three of the ideas would actually save more than a few dollars. The company's HR director suggests that the company is likely to see more improvement if it replaces individual incentives with a gainsharing plan. Which statement best supports this argument?

Gainsharing expands employees' thinking beyond their individual interests.

Geneva, a human resource professional in the United States, is reviewing the plans to send a U.S.-born production manager to Brazil to oversee the opening of a new factory. What should Geneva most likely do about the potential for language barriers with this assignment?

Geneva should select a manager who can learn Spanish and Portuguese and cope with language barriers.

Vern, the HR manager at a start-up company, helped the founder plan a benefits package that includes paid vacations, holidays, and sick leave. Now an employee approaches Vern to say she has been called up for jury duty and needs to be away next week. What should Vern do?

He should establish, and then apply, policies for other situations requiring time off.

Phil finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. Which statement is accurate?

He will receive benefits at a permanently reduced level.

When Miller Equipment Group, a maker of agricultural equipment, needs supervisors for its factories in China, it recruits Chinese workers before it looks in other countries. Which statement best explains Miller Equipment's recruiting practices in China?

Hiring locally is much less expensive than training and transporting expatriate employees.

Renata, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Miles, suggests that Renata would save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which statement weakens Miles's argument?

Rates for group insurance are typically lower than those of individual policies.

Employee stock ownership plans (ESOPs) are attractive to employers. Along with tax and financing advantages, ESOPs give employers a way to build pride in and commitment to the organization. Which statement weakens this argument?

Risks involved will directly affect employees' retirement income.

The __________ has required companies to more clearly report executive compensation levels and the company's performance relative to that of competitors.

Securities and Exchange Commission

Shari is analyzing an incentive plan she has at work and has just completed exercising the option. What process has Shari completed?

She has purchased company stock at a specified price.

Sabrina, the engineering manager at Robin Tech, takes an eight-week unpaid leave to go on a tour to promote a book she wrote. She does so in accordance with Robin Tech's policy for leaves without pay. In what sense could this unpaid leave be an employee benefit for Sabrina?

She retains her seniority and benefits during the leave.

Magda is the CEO of a home electronics corporation. She wants to provide benefits for her employees but would still like to control the company's costs. Salena, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Magda doing so?

She will avoid the cost of providing employees with benefits they don't value.

During a meeting to discuss ways to cut costs on benefits packages, the vice president of the company, Stefan, suggests getting long-term disability insurance for all employees. Suzanne, the HR manager, disagrees with him, stating that short-term disability coverage is more advantageous for the company. Which of the following supports Suzanne's statement?

Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company.

Ming Yue and Simone are employees of a publishing house and work together on the same team. Ming Yue believes that Simone hails from an individualistic culture. Which statement, if true, strengthens Ming Yue's belief?

Simone focuses on self-development and puts her needs before those of the group.

Rahm finishes dressers and nightstands at a furniture manufacturing company. However, a chemical spill at the factory caused an accident that left him permanently disabled. Which program is specifically designed to help employees like Rahm?

Social Security

Brett, the vice president of Foster Co., plans to introduce a retirement plan for all employees. Yon, the operations director, disagrees because the proposed plan would increase the company's costs. Which statement, if true, strengthens Brett's argument?

Some benefits have become so common that today's employees expect them.

Kiri, the financial officer at Cooper & Eagle, encourages the human resource manager to consider using stock options as incentive pay for all employees. The human resource manager cautions that employees could become upset if the options don't turn out to be as valuable as cash. Which statement supports this concern?

Stock prices in the market may fall below the exercise price of the options.

Pickwick Production offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of their age, earnings, and years of service. But the company didn't keep up with technology, and its earnings fell. When the stock market dipped, the company could no longer afford to keep paying for its retirement benefits. What protection will the retirees have in this situation?

The Pension Benefit Guarantee Corporation will provide them with a basic benefit.

Karla is a new mom. Her company helps her and other new parents out by collecting information about the cost and quality of available child care. What is true of the child care benefits provided by Karla's company?

The child care benefits provided by the company are at the lowest level of involvement.

Carson, a manager at UpCycle Inc., is concerned because negotiations with the union are breaking down, and the union is discussing a strike. What would be the major harm from management's perspective?

The company does not have enough workers, production output will fall.

In Ireland, the pay structure includes high pay for managers relative to nonmanagement employees. Which statement best explains the wide pay difference in Ireland?

The demand for managers with technical expertise has been outstripping the supply.

During contract negotiations, the union representing the teachers in District 79 is calling for a strike if the union's demands aren't met by the end of the week. A new school board member is worried about school shutting down and suggests directing the negotiators to accept the union's demands. A more experienced board member says the teachers also have reasons for not wanting to strike. What would be one of the most likely reasons for teachers not wanting to strike?

The district will not pay the teachers while they are on strike.

Several years ago, Consumer Finance Group set up a large customer service facility in India and hired English-speaking operators to handle questions from customers. Now, although the bank forecasts continued growth, the human resource department is planning for fewer workers in India. What changes in its customer service facility is Consumer Finance Group most likely implementing in this situation?

The facility is automating the process of answering routine questions.

A production worker believes that her supervisor is intentionally assigning her to work on machinery for which she does not have the proper training. She is worried about her safety and wonders if the supervisor is intentionally harassing her. The worker is represented by a union, so she starts the grievance process specified in the labor agreement. Assuming this is a typical grievance procedure, in which step, if any, will the employee likely act alone?

The first step; the employee can speak with her supervisor on her own before involving the union.

An organization employs Bruce, a bilateral amputee, to work as a research analyst. When Marel, the organization's chief advisor, becomes aware of this, she argues that the organization is going to experience legal challenges. According to the Americans with Disabilities Act, which situation will strengthen Marel's argument?

The organization switched to a risk-based policy after hiring Bruce.

The hourly employees at PinPoint Textiles are dissatisfied with their union. They find that the management at PinPoint Textiles communicates openly and treats them with respect in resolving problems, so they don't see much value in paying dues to a union. What option do the employees have in this situation?

They can call for a decertification election to take place when their contract term ends.

Under the Family and Medical Leave Act, which criteria makes employees eligible to take unpaid family leave?

They should be working for an organization with 50 or more employees within a 75-mile radius.

Natalie has been selected to work at her firm's manufacturing plant in India. The training department divides the cross-cultural preparation into three phases. What is the training team likely to do during the departure phase of cross-cultural preparation?

They will conduct training sessions that include language instruction.

Which statement describes an approach that is most appropriate for training employees from cultures high in power distance?

Trainers are experts who act in an authoritarian manner.

Trish and Matthew are expatriates working for different companies in two different countries. Trish's company is very structured, follows rigid rules for security, and expects employees to behave in a certain manner. Matthew's company is a little more relaxed, and they tend to take each day as it comes. Which cultural difference contributes to this difference in the way these corporations operate?

Trish's company's culture functions with a high uncertainty avoidance, whereas Matthew's company's culture functions with a low uncertainty avoidance.

U.S.-based See Me Eyewear introduced a line of sunglasses that have been very popular in France, leading the company to want to open a distribution facility there. The marketing manager is optimistic and wants to scale up fast, but the HR manager advises proceeding with caution. What difference between the countries best explains the HR manager's advice?

U.S. laws give employers wide latitude for workforce reductions, but French laws do not.

Jacob, a production manager at Six Points Inc., is against the idea of forming a union. He believes that unionization may negatively affect the company's profit margins. Which statement best supports Jacob's viewpoint?

Unionization is associated with higher costs in wages and benefits.

Sasha, a production manager at Chic Designs, believes that the formation of labor unions may have a negative impact on the performance of a company's stock. Which statement is likely to strengthen Sasha's belief?

Unionized organizations are often required to pay their workers higher wages and offer them more generous benefits.

Employees of Health Trends Inc. have been working to organize a union. The company's managers wish to maintain nonunion operations, because they believe the union's demands for more generous employee benefits would hurt profits. What evidence could the employees point to in support of the idea that unions are good for business?

Unions can reduce turnover by giving employees a way to resolve problems.

Chaim, an HR manager, heard from other managers that there was talk of a union organizing effort at his company. Chaim saw no signs of a union at work, so he downplayed the rumors. Therefore, he was caught by surprise when the union presented authorization cards and a request for a representation election. Which statement best explains the flaw in Chaim's reasoning about the organizing effort?

Unions usually launch an organizing campaign by discussing issues with employees at home.

Which federal law, passed in 1935, supports collective bargaining and sets out the rights of employees to form unions?

Wagner Act

Cooper Medical Center was concerned about rising costs for patients who have surgery for joint replacement. It tried rewarding staff in any quarter they met targets for lower use of supplies, but costs continued to rise. An investigation showed that one source of costs was the readmission of patients who experienced infections after surgery. The human resource department proposed setting up a gainsharing program with an effectiveness measure related to reducing infections. Which statement about gainsharing best supports this recommendation?

With gainsharing, employees are freed to collaborate on how to improve performance.

Hudson Inc. is opening an overseas office for the first time and is sending its best sales manager to oversee the start-up for two years. Hillary, Hudson Inc.'s human resource manager, is preparing cross-cultural training for the sales manager. A colleague suggests to Hillary that she include the manager's spouse in the training. Should Hillary follow the advice of her colleague?

Yes, the spouse should be included because the family's adjustment affects the success of an assignment.

What is considered an unfair labor practice by unions under the Taft-Hartley Act?

insisting on provisions that the employer may hire only workers who are union members

An organization wants to provide its employees information about what its goals are and what it expects employees to accomplish. It is planning to implement an incentive plan that helps employees understand the organization's goals. Which plan should be used by this organization?

a balanced scorecard

Jensen Supply Inc., a plumbing supply company, wants to combine the advantages of different incentive-pay plans and help employees understand the organization's goals. Which plan will help the company accomplish this goal?

a balanced scorecard

Jackson believes that the key to effective management is to involve his team members in the firm's decision-making processes. He surmises that this will allow him and his team to work as one unit, making choices that will benefit them all in addition to the firm. In this case, Jackson's thoughts reflect that of a person with

a collectivist nature.

The National Labor Relations Board certifies a union as the exclusive representative of a group of employees when

a majority of workers vote in favor of a union.

Jamaica, who recently moved to a new city, evaluates several insurance options from her new employer. Owing to her recent medical issues, she wants to choose her health care providers, even if seeing them costs more than seeing the providers in a specific insurance network. Which health care plan is Jamaica most likely to find suitable for her needs?

a preferred provider organization

When Steinway Foods acquired Veggie Fresh, the executives of the two companies identified key employees they needed for the combined companies' success. One of them was Rhianna, the vice president of engineering. The executives offered Rhianna a one-time bonus of $25,000 if she stayed with the company for 12 months following the acquisition. In this scenario, Rhianna's $25,000 represents

a retention bonus.

Employees at Uptown Industries have formed a union and are negotiating a union security arrangement. Which option would be most favorable to the union and also be legal?

a union shop, because it requires all employees to join the union within 30 days of their start date with the company

Which individual is covered by the National Labor Relations Act (NLRA)?

a worker going out on strike to secure better working conditions

Bryce is a non-union employee at Neptune Inc. Although he does not intend to join the union at the company, he is still required to pay union dues as part of a union contract with the company. What does this scenario best exemplify?

an agency shop agreement

Kyle is a new employee at Park Forrest Inc. He wants to work for the company, but he has no desire to join the union or even consider the possibility of becoming a member in the future. Which security provision of union membership is most suitable for Kyle?

an agency shop provision, because it requires employees to pay union dues but does not force them to become members

Alan works for Mid-Town Bank Group. The company has introduced an activity challenge for all employees that provides rewards and incentives as participants log miles by walking or running. The purpose of the three-month long program is to help prevent health risks and encourage preventive health measures. What type of program has Alan's company introduced?

an employee wellness program

Under the Americans with Disabilities Act, which employer is most likely to face legal challenges?

an employer who switches to a risk-based insurance policy after hiring a disabled employee

Which description best defines an international organization?

an organization that sets up one or a few facilities in one or a few foreign countries

Organizations must communicate benefits information to employees so that they will

appreciate the value of their benefits.

The Public Transport Union and the Chicago Transit Authority are in conflict with each other. When the conflict escalates, the Chicago City Council decides to intervene and settle the dispute. The Council, after listening to offers from both sides, puts forth a binding settlement, which both parties must accept. In the context of the alternatives to work stoppages, this is an example of

arbitration.

Team awards differ from group bonuses in that they

are more likely to use a broad range of performance measures.

Soft Touch Linens is developing a profit-sharing plan. Bianca, the human resource manager, assumes the employees are excited to participate in this start-up company's success. However, a supervisor tells Bianca about anxiety surrounding a rumor that employees will lose money if the company has a bad year. How should Bianca address this problem with employee morale?

by conducting meetings to teach about profit sharing and how employees will benefit

Rio, an American, is selected by his firm to undertake a temporary assignment in Russia. Rio's compensation is determined and adjusted in accordance with the standard of living in Russia. He is also paid relocation expenses to ensure he is not inconvenienced by the transfer. Which approach has been used to determine Rio's compensation?

balance sheet approach

The __________ begins by determining how much a person can buy, after taxes, in terms of housing, goods and services, and a reserve for savings when taking a foreign work assignment.

balance sheet approach

What is the method for awarding incentive pay based on a combination of performance measures directed toward the company's long- and short-term goals?

balanced scorecard

The collective bargaining agreement taking place at Sunset Films involves scriptwriters and set designers. These two groups make up the

bargaining structure.

The four components of a total pay package are base salary, tax equalization allowance, __________, and allowances to make a foreign assignment more attractive.

benefits

Folger Group pays its executives short-term incentives for meeting financial targets. What could be included in this incentive pay?

bonus for meeting the return on investment goal for last year

Owen, a human resource professional, is preparing for Katelyn, a U.S. production manager, to take an assignment at a new facility in Vietnam. Owen wants to measure Katelyn's success in establishing high productivity, so he uses the excellent productivity numbers Katelyn achieved in her current assignment as a basis for setting performance goals for the Vietnamese position. How could this method of measuring performance be improved?

by adjusting the measure for local factors that could affect productivity

Foster, a human resource professional, is evaluating some of the company's managers to select one for an overseas assignment. He knows he may not discriminate based on age or sex, but he also doesn't want to send someone on an assignment that will cause personal difficulties, disrupt family relations, and cause complications for the manager's success. How can he best avoid discrimination while selecting a candidate who can thrive in the assignment?

by giving candidates a complete, accurate preview of the assignment and the host country's culture

The employee benefits at Forward Point, a tech firm, includes a breakfast bar, a gym, and an on-site massage therapist. In what way are these benefits most likely to support the company's business goals?

by helping employees cope with demanding, high-stress jobs

Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called

cafeteria-style plans.

Min-Ji and her colleagues are members of the union at The Daily Read Inc. While negotiating the terms of the labor contract, they request their employer to deduct union dues from their paychecks. This type of contractual arrangement between the two parties is known as a(n)

checkoff provision.

Brenda, a job applicant at Trade Winds Corp., discovers that the job she is applying for requires her to be a union member before being hired. She also learns that this arrangement is illegal under the National Labor Relations Act. In the context of the security provisions related to union membership, this Trade Winds Corp. has a(n) __________ arrangement.

closed shop

A balanced scorecard is a(n)

combination of performance measures directed toward the company's long- and short-term goals and used as the basis for awarding incentive pay

Which factor has been found to have the greatest influence on whether an employee completes a foreign assignment?

comfort of employee's spouse and family

When an employee's pay is calculated as a percentage of sales, it is referred to as

commissions.

To help Kyle, an expatriate, prepare for his eventual return home, his employer sends him information that will help him recognize the changes that have been happening at home. What type of repatriation support is this?

communication

Dexter Auto Group and a union conducting an organizing campaign agree on the time and place of an election and a way to determine who can vote. Which type of election does this scenario best describe?

consent election

One of the substitutes for traditional organizing is to conduct __________, which bring(s) financial, political, or public pressure on employers during union organization and contract negotiation.

corporate campaigns

A labor union in which all of the members have a particular skill or occupation is known as a(n) __________ union.

craft

The United Association of Plumbers and Pipefitters is a labor union that seeks to unite plumbers and pipefitters from around the country. The members of this union exhibit the same set of skills and are proficient in relatively similar tasks. Such an association is most likely an example of a(n)

craft union.

Magnuson, Miller & Associates, a consulting firm with offices in seven countries, is bringing together employees from all locations for a leadership training event. Which consideration is most affected by the international nature of the workforce?

cultural differences

Phillipe, an automobile engineer, is sent on a foreign assignment to Iceland. Initially, Phillipe is fascinated by the culture and history of the town he lived in. Within a month, he begins to feel disillusioned and discomforted by the differences in norms and values. Which term best describes this phase of Phillipe's experience?

culture shock

When an expatriate is sent on a foreign assignment and begins experiencing feelings of isolation, criticism, stereotyping, and even hostility, this person is said to be experiencing

culture shock.

International assignments are especially beneficial to the organization if they are linked to the company's

development programs.

The founder of Solar Way Inc. in Mexico wants to open its second facility to produce housewares in the United States. However, the finance manager suggests an overseas location would help the company remain competitive, because labor costs are lower in many other countries. To arrive at the decision that will best promote Solar Way's ability to compete, what other HR factors, if any, should the company consider?

differences in workforces' education, skill, and productivity

Line 'Em Up Inc. is a deck planking manufacturer based in Nashville. The employees of the organization receive pay based on the amount of work produced. If the output of an employee is more than the average production volume, then the organization pays more for the work performed. In this case, which incentive is offered by Line 'Em Up Inc.?

differential piecework rate

Trend Analysis Group has decided not to set up operations in a country because it has discovered the difficulty of finding knowledge workers there, including engineers and scientists. Which aspect of the society of this country is affecting the decision?

education and skill levels

Under a 401(k) plan, the __________ is responsible for choosing specific investments.

employee

Employee participation in pay-related decisions can be part of a general move toward

employee empowerment.

Maxwell Agricultural Inc. is a farm implement manufacturing company. It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf. What is Maxwell Agricultural using in this scenario?

employee stock ownership plan

What is the term for an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust?

employee stock ownership plan

When considering employee benefits, it has been found that

employees have a hard time understanding the cost and value of their benefits.

A standard hour incentive plan is likely to be successful if

employees want the extra money more than they want to work at a pace that feels comfortable.

Which employees are excluded by the National Labor Relations Board (NLRB) from participating in organizing activities?

employees who are independent contractors

Geoff, an American who works for a U.S.-based company, has been sent to England for a work assignment. Geoff would be known as a(n)

expatriate.

Paige hails from a country whose legal system is based on religious scriptures. Social and business behaviors are judged based on religious laws and legal codes to a great extent. Which aspect of culture do these conditions represent?q

high uncertainty avoidance

The Transport Union in Houston, Texas, enters into a contract with the Metropolitan Transportation Authority. The contract requires the government agency to pay a yearly bonus to union members. A year after signing the contract, the Metropolitan Transportation Authority refuses to pay the annual bonus, which triggers a conflict between the union and the agency. A third party intervenes to resolve the conflict between the two parties. The third party evaluates the arguments of both sides and proposes a solution. Both parties have the right to decline the proposal, but they decide to accept it. In the context of the alternatives to work stoppage, the third party in this scenario is an example of a(n)

fact finder.

Neal works as an accountant in the headquarters of a fast-food chain. He encourages his colleagues to participate in an initiative he started that involves planting trees and flowers on the office's grounds. Neal's initiative most likely reflects a __________ culture.

feminine

Margo's company recently implemented a health benefit plan that lets employees set aside a portion of their pretax earnings to pay for eligible medical expenses. What type of plan did the company implement?

flexible spending account

Charter Savings, a financial firm, distributes a portion of the profits resulting from improvements in productivity and efficiency among its employees. If the company enjoys an improvement of $45,000, 60 percent of the improvement is the company's share. The other 40 percent is distributed among the employees in the company. What is being exemplified in this scenario?

gainsharing

Gene, the HR manager at Morrison & Co., is trying to implement an effective group incentive plan that measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees. In this case, Gene should apply the incentive scheme of

gainsharing

Which incentive plans are specifically designed to promote group performance?

gainsharing

Developed in the 1930s, the Scanlon plan is a variation of a(n)

gainsharing plan.

Which organizations are most likely to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage?

global organizations

The method for providing solutions to union-management conflicts over interpretation or violation of a collective bargaining agreement is known as a

grievance procedure.

Which action related to employee benefits can give employers an advantage in the labor market?

helping employees understand the value of their benefits

Sabrina works at a retail store in Los Angeles. She addresses her Indian manager, Adhira, by her first name. Sabrina's colleague advises against addressing Adhira by her name, as she might find it disrespectful. The colleague is most likely right if Adhira's cultural beliefs align with a

high power distance.

Which factor has been associated with the decline in union membership?

high regulation in such areas as workplace safety and equal employment opportunity

Robert has a health care plan that provides him with coverage that allows him to be involved in making decisions to help lower costs. This plan typically includes insurance with a high deductible, a medical savings account, and ongoing health education. Which type of health care plan is Robert using?

high-deductible health plan

StrikeWell Inc., a company headquartered in the United States, opens an overseas facility in China. In this scenario, the Chinese facility is located in a

host country.

Carlos, a Spanish national, is an employee of a U.S.-based company. He works at the company's branch in Spain. This would imply that Carlos is a

host-country national.

Sanjeep, an Indian, is employed by a pharmaceutical company whose headquarters are in Philadelphia. Sanjeep, however, operates out of the firm's production facility in New Delhi, India. Sanjeep is considered to be a(n)

host-country national.

Stetman Manufacturing forecasts a sales increase in several product lines, so management is planning how to expand production capacity at its three factories in Tennessee, Italy, and Thailand. The HR department prepares estimates of local labor costs and availability of workers in each location. What else should the decision makers take into account when planning labor needs?

how these considerations weigh against financial and operational requirements

Keith is a human resource manager at an advertising firm. Keith proposes that the company adopt defined-benefit plans to attract and retain employees. In which situation will this benefit be most valuable to the firm's employees?

if the firm employs experienced, older people

Jie, the manager of a manufacturing firm, wants the organization to perform better. He expects his employees to think more like owners, taking a broad view of what they need to do in order to make the organization more effective. In this case, Jie should

implement a profit-sharing incentive plan.

Kellen International has a goal to lower the cost of employee benefits. Its human resource department compares the costs of its benefits with averages published by the Bureau of Labor Statistics, the U.S. Chamber of Commerce, and other sources. The investigation shows that its cost for workers' compensation insurance is high relative to other companies. Which action could best help Kellen International accomplish its goal?

improve safety to lower the company's experience rating

Bark Dog Food Company ties individual performance, profits, and other measures of employees' success to a particular form of pay. This form of pay is influential because the amount paid is linked to certain predefined behaviors or outcomes. What pay structure is exemplified in this scenario?

incentive pay

The differential piece rate system refers to a(n)

incentive pay in which the piece rate is higher when a greater amount is produced.

A pay structure specifically designed to energize, direct, or control employees' behavior is known as

incentive pay.

Most pay-related communications come through

individual discussions between employees and their supervisors.

To make merit increases consistent, administrators of merit pay programs must closely monitor the compa-ratio and the

individual's performance ratings.

Which of Geert Hofstede's cultural dimensions focuses on the extent to which a culture controls the desire to pursue enjoyment?

indulgence/restraint

Emiko, a heavy equipment operator, Stefanie, an operating engineer, and Hakim, a construction mechanic, hail from different parts of the United States. Though they have different occupations, they are all members of the same union. In the context of types of union, Emiko, Stefanie, and Hakim most likely belong to a(n) __________ union.

industrial

Under the Older Workers Benefit Protection Act of 1990, which guideline must employers follow when asking employees to sign early-retirement waivers?

inform employees that they may consult with a lawyer before signing

Irena, the marketing manager of a mobile phone company, is achievement-oriented and exhibits high levels of assertiveness. She creates marketing plans that will maximize financial returns and enjoys competing against other managers in the company. Irena is most likely to be an individual whose culture reflects

masculine traits.

Gina, a neutral third party, tries to resolve a conflict initiated by a manager and union representative at All Sports Shoes. She does so by listening to what both parties have to say about the issue and facilitating the negotiations. In this scenario, Gina is exercising which type of alternative to work stoppages?

mediation

According to the provisions outlined in the contract between Cosmo Inc. and its labor union, Cosmo Inc. must pay its employees double for working overtime. However, due to financial constraints, the company is unable to meet these demands. The company and the union decide to negotiate the terms of the contract in a relatively informal manner. A non-authoritative third party is invited to listen to the views of both sides and help resolve the conflict. In the context of the alternatives to work stoppages, the third party in this scenario is an example of a(n)

mediator.

All Chopped Inc., a firm that manufactures ready-to-eat salads, offers incentives based on an employee's performance rating and the employee's compa-ratio. Which payment plan is exemplified in this scenario?

merit pay

Which type of incentive plans are used to reward individual performance?

merit pay

An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as

merit pay.

At the conclusion of her annual employee review, Danelle was told she would receive a 7% pay increase starting with her next paycheck. She received the increase because of her exceptional contributions to the company in her role as a marketing analyst. Which type of incentive does this pay increase represent?

merit pay.

Allan, the union steward at Sleek Desks Inc., is attempting to persuade members of management to make certain revisions to the company's policies on job security and work rules on behalf of the union. The union believes that company management has neglected these aspects of the company's administration system for too long. Which level of decisions is Allan most likely concerned with in this scenario?

negotiating contracts

In 2018, a company employee received an option to purchase the company's stock at $45 per share. If the stock is trading at $40 a share in 2020, the employee will most likely

not bother to exercise the options.

Simpson Corp. is a start-up located in San Francisco. It offers one of the best pension plans available to its employees. Which category of employees is the company most likely to attract through its pension benefits?

older people

Retention bonuses refer to

one-time incentives paid to top employees in exchange for remaining with the company.

What type of organizations benefit from a savings in pension benefits when switching from a defined-benefit plan to cash balance plans?

organizations with many experienced employees

A difference between an industrial union and a craft union is that only an industrial union

organizes as many employees in as wide a range of skills as possible.

A company, which has its headquarters in Japan, has branches in the United States. A Pakistani manager works in a facility in the United States. In this scenario, Japan is the __________ country, and Pakistan is the __________ country.

parent; third

Nickol's Flatware, a maker of upscale food serving utensils based in Michigan, is preparing to open a branch office in Paris, France. Its benefits package in the United States includes the benefits most commonly offered in the U.S. What additional benefits are the French employees likely to expect?

pensions and more paid vacation time

Sing-a-Long Toys., a musical toy company, provides wages to its employees based on the number of toys the workers assemble. The more the employees assemble, the more they earn. This type of plan is called a

piecework rate plan.

Kiros, a U.S. businessman, visits India for a corporate meeting. While interacting with the board members, he addresses them by their first names, as he does with board members in the United States. However, the board members in India are offended by this gesture. Which difference in culture does this scenario reveal?

power distance

What is an organization-level incentive plan that is intended to motivate employees to align their activities with the organization's goals?

profit sharing

Which incentive plan would enable employees to think like owners, taking a broad view of what they need to do in order to make the organization more effective?

profit sharing

What is a function of elder care benefits offered by organizations?

providing information, referrals, and support

Simon, an employee of Gibson Group, an American company, was sent to Turkey for an assignment. HR specialists at Gibson Group have been preparing Simon for his return to the United States after three years. Which term describes the process being undertaken by the HR team at Gibson Group?

repatriation

Appropriate behavior in Ghana and many African nations includes

repaying obligations.

What guideline should be followed by a supervisor to discourage unions?

report any direct or indirect signs of union activity to a core management group

Piecework rate plans are most suited for

routine jobs.

The CEO of Orson Metals asked the human resource manager, June, to propose an approach to incentive pay. June proposes that the company create a gainsharing plan. What action(s) by the company will best increase the likelihood that gainsharing will succeed?

sharing data about costs and setting up time for employees to interact

Which action helps organizations reduce the cost of health care benefits offered to employees?

shifting from traditional health insurance plans to PPOs and CDHPs

Executive pay at Schiller Inc., a manufacturing company, includes bonuses based on the year's profits or other measures related to the organization's goals. Sometimes, to gain tax advantages, the bonus is made part of executives' retirement plans. What is being exemplified in this scenario?

short-term incentives

A chain of organic restaurants hires part-time workers and pays minimum wage. Turnover is very high. Given that most employees do not stay at a restaurant long or work there full time, organizing campaigns are very difficult. With these facts in mind, Bernadette, the chain's vice president of human resources, believes unions will not have an impact on the company. What possible force in labor markets is Bernadette overlooking?

worker centers, which could influence attitudes through publicity and community support