Human Resource Management Exam V - Chapters 13, 14, 15

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. Multiple Choice 12 days 56 days 12 weeks 30 weeks 11 months

12 weeks

On average, out of every dollar spent by a company on employee compensation, more than __________ cents goes to employee benefits. Multiple Choice 75 30 50 15 20

30

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? Multiple Choice 30 percent 51 percent 20 percent 10 percent 55 percent

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? Multiple Choice 10 26 51 60 76

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? Multiple Choice 529 savings plan 401(k) savings plan 207 college tuition plan U.S. saving bonds plan TD Ameritrade college tuition plan

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. Multiple Choice National Labor Relations Act (NLRA) Society of Modern Trade Workers and the Trade Federation of the States (SMTW-TFS) American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) Chamber of Commerce (CoC) National Association of Manufacturers (NAM)

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

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? Multiple Choice Marcus's competitor, Tony, gives many benefits to his employees. The state has introduced mandatory requirements for employee benefits. Benefit packages are more difficult for employees to understand and appreciate than pay structures. Most of the employees at Top Hat Diner belong to the age group that looks forward to pensions. Employees do not prefer cash compensation due to higher tax rates.

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

What is the difference between bonuses and team awards? Multiple Choice Bonuses are for bigger work groups, whereas team awards are for small teams. Unlike bonuses, team awards encourage cooperation. Bonuses are usually given to employees who meet deadlines, whereas team awards are given only when the team as a whole meets the targets. Unlike team awards, bonuses encourage competition among individuals. Bonuses reward attainment of a specific goal, whereas team awards reward performance measured more broadly.

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? Multiple Choice Both of the programs are funded by the federal taxes on employees. Both of the programs' costs depend on the organization's experience ratings. Both of the programs have the same funding costs across the states. Both of the programs replace the same percentage of an individual's previous earnings. Both of the programs provide the same amount of compensation to the employees.

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

Which statement represents an accurate depiction of company child care benefits? Multiple Choice At the highest level of involvement, organizations provide vouchers or discounts for employees to use at existing child care facilities. Companies that provide child care facilities face liability concerns. Provision of child care is mandatory under the Family and Medical Leave Act. Child care benefits should be limited to provision of leaves to employees. Child care benefits must include death benefits for it to be considered as a qualified plan.

Companies that provide child care facilities face liability concerns.

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? Multiple Choice Social Security Act Employee Retirement Income Security Act Family and Medical Leave Act Consolidated Omnibus Budget Reconciliation Act Affordable Care Act

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? Multiple Choice The plan makes employees part-owners of the company. The Pension Benefit Guarantee Corporation will guarantee a basic benefit. Employees can buy an annuity with the contributions when they retire. The amount employees contribute is not taxed when they contribute it. Contributing a share of profits gives the company more flexibility as it establishes itself.

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? Multiple Choice The company should have considered whether the grievance procedure is fair. Courts generally do not have the authority to rule on employment matters. Courts generally avoid reviewing arbitrators' decisions in these matters. Courts generally rule against businesses in employment matters.

Courts generally avoid reviewing arbitrators' decisions in these matters.

__________ refers to incentive pay in which the wage paid is higher when a greater amount is produced. Multiple Choice Profit sharing Differential piece rate Gainsharing Scanlon pay Merit pay

Differential piece rate

What is a reason for the popularity of employee stock ownership plans (ESOPs)? Multiple Choice ESOPs provide tax advantages to employers. ESOPs provide very high risk-free retirement income. Employees can use ESOPs to buy their company during financial crises. ESOPs must invest at least 51 percent of their assets in the company's own stocks. The employees are provided with many more shares of stock than they actually own.

ESOPs provide tax advantages to employers.

What is an advantage of cafeteria-style plans? Multiple Choice Employees do not have to select their individual plans. Employees can match their needs to the company's benefits. These types of plans have lower administrative costs. Since employees will select the benefits that they need the most, it reduces the overall costs. When companies provide cafeteria-style plans, they do not have to pay unemployment insurance tax.

Employees can match their needs to the company's benefits.

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? Multiple Choice Employees do not pay income taxes on most benefits they receive. Benefits are harder for employees to understand than pay structures. Employees could get a better deal if they bought their own insurance policies. Higher cash compensation gives employees more purchasing power. Different employees look for different types of benefits.

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

How do cafeteria-style plans increase costs for employers? Multiple Choice Employers pay much higher premiums for an HMO than a preferred health care plan. Employers are required to pay higher insurance premiums for laid-off workers. Contributions to PBGC to fund the retirement plan increases under this plan. Employees select the kind of benefits they expect to need the most. Employers bear the cost of providing employees with benefits they do not value.

Employees select the kind of benefits they expect to need the most.

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? Multiple Choice Companies that do not provide medical insurance cannot have their retirement plans considered as qualified plans. Most employees do not appreciate what health insurance costs the employer. Medical insurance plans do not cover mental illness. A health insurance rate is higher than a general insurance rate. Employees usually realize that surgery or a major illness can be financially devastating.

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

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? Multiple Choice Employees will make decisions that are in their best interests at the expense of the organization's interests. It is difficult to monitor an employee's work output when decisions are made by the employee. When employees become more involved in pay decisions, they neglect the work assigned to them. Employees should be a part of the human resource department to be involved in pay-related decisions. It will have a negative impact on the top-level management of the company.

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? Multiple Choice It is simpler to pay compensation in benefits than in cash. Benefits give greater control to employees over cash compensation. All companies that provide benefits become eligible for tax breaks by state and federal agencies. Younger employees place more importance on benefits than cash compensation. Employers can assemble creative benefits packages that give them a competitive advantage.

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? Multiple Choice Paid vacation must take place on specified days in addition to holidays. Employers must give the amount of paid vacation that makes economic sense. Employers must give employees 10 paid vacation days each year. New employees must receive 25 or 30 days off. Employers decide on paid time off; there is no minimum.

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

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? Multiple Choice After the 1980s, most unions and organizations have acted more like adversaries. Examples of cooperation between labor and management include employee involvement in decision making and self-managing teams. Finding win-win solutions is almost impossible because unions and management have conflicting goals. Organizations often define jobs narrowly, which is a sign of cooperation. Creating a union necessarily forces employers to pay more wages, which results in loss of profits.

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

The __________ usually provides the neutral third party used for the common alternatives to strikes. Multiple Choice National Labor Relations Board Federal Mediation and Conciliation Service Federal Labor Relations Board Federal Arbitration and Consulting Service National Mediation and Arbitration Commission

Federal Mediation and Conciliation Service

What is the drawback of stock ownership as a form of incentive pay? Multiple Choice Financial benefits mostly come when the employee leaves the organization. Employees have the right to participate in votes by shareholders, hence reducing the negotiating power of the employer. It causes the employers to lose control over their employees. The employees will not benefit even if the organization is performing well. Stock options do not provide any ownership to employees, instead offering an equivalent sum.

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. Multiple Choice Profit rate Gainsharing Commission sharing Merit rate Group bonus

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? Multiple Choice Gainsharing succeeds regardless of whether employees understand how performance is measured. Gainsharing is likely to succeed under almost any organizational conditions. Gainsharing broadens employees' horizons beyond the range of activities they can influence. Gainsharing expands employees' thinking beyond their individual interests.

Gainsharing expands employees' thinking beyond their individual interests.

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? Multiple Choice He should direct the employee to use the Family and Medical Leave Act. He should forbid the employee from taking time off for jury duty. He should ask the employee to use her sick leave for jury duty. He should ask the employee to use her vacation time for jury duty. He should establish, and then apply, policies for other situations requiring time off.

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? Multiple Choice He will receive full retirement benefits. He will receive retirement benefits only according to his earnings history. He will not be eligible for worker's compensation. He will receive benefits at a permanently reduced level. His exempt amount limits will be lifted.

He will receive benefits at a permanently reduced level.

Identify the correct statement about the trends in international union membership. Multiple Choice In Western Europe, it is common to have union coverage rates of 80 to 90 percent. Coverage rates within the United States are much higher than in most other countries. U.S. employees tend to have a larger, more formal role in organizational decision making than in Western European countries. Worker representatives on boards of directors are much more common in the United States than in Western European countries. The union membership rate in the U.S. is second only to that of Denmark.

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? Multiple Choice The NLRB has issued statements indicating that it will not tolerate employee empowerment. In its rulings, the NLRB has allowed employee empowerment in certain very limited situations. The NLRB has issued rulings that say employee empowerment is allowed only in a nonunion environment. In its rulings, the NLRB has shown clear support for employee involvement in decision making. The NLRB makes it an unfair labor practice to form employee participation committees to make decisions.

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? Multiple Choice Accept that it is difficult for employees to understand the value of insurance. Save money by reducing printed messages about health insurance. Downplay the role of health insurance in the benefits package, relative to other benefits. Discontinue health insurance, since it is a source of dissatisfaction. Introduce software that will guide employees to the insurance option for their needs.

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

What is a disadvantage of a merit pay system? Multiple Choice It does not relate the rewards to economic conditions. It cannot be used effectively with performance appraisals. Comparative pay is not considered in its evaluation. It does not provide rewards for performance in all the dimensions measured in the organization's performance management system. It can discourage teamwork.

It can discourage teamwork.

What is a disadvantage of using group bonuses? Multiple Choice Physical outputs are not rewarded. It reduces the level of cooperation between the members of the group. The performance measures used are narrow. It could result in competition among groups. It cannot be used to promote specific goals.

It could result in competition among groups.

What is the purpose of a summary plan description? Multiple Choice It details a company's health insurance coverage. It describes a pension plan's funding, eligibility requirements, and risks. It summarizes the amount of Social Security benefits employees are allotted. It provides the type and duration of disability insurance. It is a set of communications, activities, and facilities designed to change health-related behaviors to reduce health risks.

It describes a pension plan's funding, eligibility requirements, and risks.

What is most likely a consequence of paying most or all of a salesperson's compensation in the form of commissions? Multiple Choice It encourages the salesperson to focus on closing the sale. It frees the salesperson to focus on developing customer goodwill. It encourages teamwork over individual performance. It makes the employee appreciate the reward as the reward relates to economic conditions. It will quickly become expensive for the employer.

It encourages the salesperson to focus on closing the sale.

How does the balanced scorecard help organizations deal with unethical behaviors of executives? Multiple Choice It allows companies to deduct executive pay that exceeds $1 million. 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. It encourages executives to hold on to their stock options when the company is undergoing financial problems. It forces executives to focus on the company's long-term success because ESOP funds are guaranteed by the Pension Benefit Guarantee Corporation. It mandates that an ESOP invest at least 51 percent of its assets in the company's own stock.

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? Multiple Choice It lowered the cost of communicating with employees because now the company doesn't need to use printed media. It lowered the cost of providing benefits because employees know what to sign up for. It increased employees' commitment to saving for retirement, so they won't need Social Security. It increased employees' happiness and job commitment, so they are more fun to be around. It increased employees' commitment and satisfaction, so they contribute more to the company.

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

Which statement best describes a card-check provision? Multiple Choice It is an arrangement that allows the employer, on behalf of the union, to automatically deduct union dues from the employees' paychecks. It is an agreement that if a certain percentage of employees sign an authorization card, the employer will recognize their union representation. It is an alternative form of union membership in which members receive discounts on insurance and credit cards rather than representation in collective bargaining. It is a formal and binding pledge by the employer not to oppose organizing efforts elsewhere in the company. It is a formal and binding pledge by at least 51 percent of employees to not unionize.

It is an agreement that if a certain percentage of employees sign an authorization card, the employer will recognize their union representation.

What is a characteristic of a craft union? Multiple Choice It represents many different occupations. Membership in the union is the result of working for a particular employer in the industry. Changing employers is not very common. It is often responsible for training members through apprenticeships. It consists of members who are linked by their work in a particular industry.

It is often responsible for training members through apprenticeships.

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? Multiple Choice Legal guidelines covering an employer-established system of representation are lengthy and precise. Workers tend to think representatives in an employer-established system cannot be counted on to stand up for them. It is statistically likely that most Crunch Granola workers are already represented by unions. It is possible that a management-established system of employee representation may violate the NLRA.

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

What is a characteristic of a performance bonus? Multiple Choice It is designed to reward group performance. It must be re-earned by employees during each performance period. It is rolled into base pay and provided yearly or monthly. It lacks flexibility and hence it is less popular. It is exclusively linked to subjective ratings, rather than objective performance measures.

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? Multiple Choice It must let James join the union so he can have representation in the process. It must allow James to use the process it negotiated, but it need not send representatives. It has no obligations in this process, because James chose not to be represented. It must give James representation equal to what a union member would receive. It must give James a copy of the labor agreement, but it need not be involved in the process.

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

What must be true for a pension plan to be deemed a qualified plan? Multiple Choice It must not discriminate in favor of an organization's highly compensated employees. It must not be a cafeteria-style plan. It should include elder care and child care. It has to be a defined-contribution plan. It has to be a defined-benefit plan that requires most of the funding to come from the employer.

It must not discriminate in favor of an organization's highly compensated employees.

What is an accurate description of short-term disability insurance? Multiple Choice It pays the full amount of a disabled employee's salary for a minimum period of one year. It pays double the full salary of a disabled employee for a period of two months. Only employees who have been with an organization for less than two years are eligible for short-term disability insurance. It pays a portion of a disabled employee's salary as benefits for up to six months. It is only provided to those individuals who work part time.

It pays a portion of a disabled employee's salary as benefits for up to six months.

__________ rules require that employees who join the union remain members for a certain period of time but do not require a union membership. Multiple Choice Agency shop Union shop Closed shop Maintenance of membership Checkoff provision

Maintenance of membership

Which statement characterizes an industrial union? Multiple Choice All the members are in the same occupation. Union leaders try to limit the number of members in order to maintain high wages. Members are linked by their work in a particular industry. Members change employers more frequently than in other types of unions. It is responsible for training its members through apprenticeships.

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. Multiple Choice Differential piece rate Standard hour plan Merit pay Piece rate Commission

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? Multiple Choice With managed care, the insurer makes all decisions about healthcare so Carlos has no control. Money in flexible spending accounts is not taxed, so employees get more take-home pay. The money in the flexible spending accounts must meet IRS requirements. At the end of each year, money remaining in a flexible spending account reverts to the employer. Contributions to a flexible spending account may not exceed $5,000 per year.

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. Multiple Choice American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) Small Business Association (SBA) National Labor Relations Board (NLRB) Federal Trade Commission (FTC) Selective Service System (SSS)

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? Multiple Choice Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees. The ADEA provides more favorable tax treatment of benefits when they are offered to a broad range of employees. A top-heavy plan requires faster vesting for non-key employees. Extending pension plans to employees at all levels will triple the costs. Pension plans are determined exclusively by state and federal laws.

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

Identify the right statement regarding the effects of unions on company performance. Multiple Choice As a result of the type of pay system favored by unions, employees are more inclined to compete than cooperate. Most studies show that union workers are less productive than nonunion workers. On average, union members receive higher wages and more generous benefits than nonunion workers. The introduction of a union invariably results in the employer paying less attention to employee ideas. Evidence shows that unions have a large positive effect on profits.

On average, union members receive higher wages and more generous benefits than nonunion workers.

Which act requires companies with more 50 full-time employees to provide affordable health insurance or face a penalty? Multiple Choice Social Security Act. Employee Retirement Income Security Act. Family and Medical Leave Act. Patient Protection and Affordable Care Act. Consolidated Omnibus Budget Reconciliation Act.

Patient Protection and Affordable Care Act.

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? Multiple Choice In a profit-sharing plan, employees are the owners of the organization. Profit sharing helps employees to cooperate and focus on organizational interests. Profit sharing makes employees workaholics. In profit sharing, employees contribute their base salary for the development of the organization. Profit sharing benefits employees even if the organization makes less profit or no profit.

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

Identify a disadvantage of using profit-sharing plans. Multiple Choice They cannot be used to improve the organization's performance as a whole. The employees may develop a narrow view of their roles in the organization. They cost more when the organization experiences financial difficulties. Sharing profit with the employees ultimately reduces the organization's profitability. Profit sharing is not directly linked to individual behavior.

Profit sharing is not directly linked to individual behavior.

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? Multiple Choice Individual plans are typically offered only to senior executives. Rates for group insurance are typically lower than those of individual policies. Renata will not be eligible for other benefits if she does not enroll in a group insurance plan. Employees get more for their money when they receive insurance as a group benefit. Renata will get more take-home pay if she opts for a group insurance plan.

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

The __________ has required companies to more clearly report executive compensation levels and the company's performance relative to that of competitors. Multiple Choice National Credit Union Administration Financial Industry Regulatory Authority Commodity Futures Trading Commission Securities and Exchange Commission Omnibus Budget Reconciliation Act

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? Multiple Choice She has purchased company stock at a specified price. She has received a merit pay increase for her past performance. She has elected to receive her pay in the form of a commission. She benefited from the company's profit-sharing plan. She sold her dividends back to the company.

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? Multiple Choice Her leave is based on length of service, so it accumulates over time. Her time off is an example of personal days. The Family and Medical Leave Act requires the employer to grant unpaid time off. She uses her paid time off for the leave. She retains her seniority and benefits during the leave.

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? Multiple Choice She will save time by using software packages to offer benefits packages. She will avoid the cost of providing employees with benefits they don't value. Having a non-standardized plan will make Magda's company seem cutting-edge. Employees of the company, including Magda, will be given more vacation days. Costs will be easy to estimate since all benefits options will be taken into consideration.

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? Multiple Choice Short-term disability coverage is offered by few employers, which leads to a competitive advantage. Long-term disability coverage does not have any limits on the amount to be paid each month to employees. Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company. The nature of work is such that the level of risk involved is high and injuries could be permanent. The majority of the workforce is middle-aged and prefers long-term coverage.

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

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? Multiple Choice unqualified retirement plan vested-benefit plan Social Security defined-benefit plan work-sharing plan

Social Security

Which benefit provided by the employer is required by law in the United States? Multiple Choice paid vacation personal leave flextime Social Security contributions retirement savings plan

Social Security contributions

What is the difference between stock options and an employee stock ownership plan (ESOP)? Multiple Choice Stock options carry significant risk, whereas ESOPs are risk-free. Stock options are usually granted to company executives, whereas ESOPs are provided to all employees. In stock options, stocks are placed into a trust, whereas ESOPs give employees the right to buy a certain number of shares of stock. Under stock options, employees can sell their stocks, whereas ESOPs do not allow employees to sell their stocks. Earnings from stock options are exempt from income taxes, whereas earnings from ESOPs are taxable.

Stock options are usually granted to company executives, whereas ESOPs are provided to all employees.

__________ 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. Multiple Choice The Internal Revenue Service The Consolidated Omnibus Budget Reconciliation Act (COBRA) The Employee Retirement Income Security Act (ERISA) Employee Benefit Research Institute The Bureau of Labor Statistics

The Internal Revenue Service

During an organizing campaign, what occurs when union representatives make contact with employees, present their message about the union, and invite them to sign an authorization card? Multiple Choice The unions determine who is eligible to vote. The union is automatically recognized if at least 30 percent of employees agree. The National Labor Relations Board (NLRB) conducts a secret-ballot election if only 30 to 50 percent of employees signed cards. The National Labor Relations Board (NLRB) certifies the union as the exclusive representative of employees if the employer refuses to sign the card. The employees cannot participate in any of the proceedings.

The National Labor Relations Board (NLRB) conducts a secret-ballot election if only 30 to 50 percent of employees signed cards.

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? Multiple Choice Pickwick Production must give the employees the option to sell their stock in the company. The employees will receive payouts from their 401(k) plans. The employees will receive a share of profits as part of the company's ESOP. Because the plan was underfunded, the retirees will no longer receive benefits. The Pension Benefit Guarantee Corporation will provide them with a basic benefit.

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? Multiple Choice The child care benefits provided by the company are at the lowest level of involvement. The child care benefits provided by the company are at the highest level of involvement. According to the Family and Medical Leave Act, the company has not provided DJ with adequate childcare benefits. According to the Patient Protection and Affordable Care Act, the company has exceeded the level of involvement that is permissible. The child care benefits provided by the company are a form of a dependent care assistance plan.

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? Multiple Choice The company would have to hire replacement workers, and they might be more productive. The company does not have enough workers, production output will fall. Employees will call off the strike if they do not receive pay from their employer. Employees are rarely serious when they threaten to go on strike. Employees will decide they are better off without union representation.

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

During the grievance process, the union appeals a grievance to top line management and senior industrial relations staff. What step comes next? Multiple Choice The union steward and employee decide whether the contract was violated. The union decides whether to appeal the unresolved grievance to arbitration. The written grievance is submitted to the production superintendent, another line manager, or industrial relations representative. The decision resulting from the appeal is put into writing. The employee (and the union steward) discuss the problem with a supervisor.

The decision resulting from the appeal is put into writing.

What is the typical outcome when employers or unions violate the NLRA? Multiple Choice The union is assigned punitive damages up to 80% of costs. The employer is ordered to shut down until a fair compromise is reached. The NLRA takes on the role of criminal law and takes the union to court. All charges against the employer or union are dropped. The employer or union is ordered to stop unfair labor practices.

The employer or union is ordered to stop unfair labor practices.

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? Multiple Choice The final step; the employee and the supervisor would meet together with the union-appointed arbitrator. The first step; the employee can speak with her supervisor on her own before involving the union. The step in which a written grievance is submitted; this must be written and delivered by the employee only. The step of deciding to appeal an unresolved grievance; it is up to the employee to choose arbitration or no appeal.

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? Multiple Choice The organization has a risk-based insurance in place before recruiting Bruce. The organization plans to stop Bruce's benefits when he reaches the age of 50. The organization switched to a risk-based policy after hiring Bruce. The organization gave Bruce access to the same health insurance that is provided to the other employees. The organization does not have a risk-based insurance.

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

What is an accurate description of right-to-work laws? Multiple Choice They are federal laws that protect employees' right to lifetime employment. They are state laws that make union shops, maintenance of membership, and agency shops illegal. They are laws that protect the right of unions to insist that the employer hire only union members. They are laws that allow terminating an existing contract and striking for a new one without notifying the employer. They are federal laws that ensure that all union members get pension benefits.

They are state laws that make union shops, maintenance of membership, and agency shops illegal.

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? Multiple Choice They may negotiate for a neutrality provision to neutralize the union's authority. They must accept the union, because they voted for representation in a lawful manner. They can request an immediate decertification election. They can call for a decertification election to take place when their contract term ends. They can request that their union representative terminate the union contract.

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

What is an accurate description of sick leave programs? Multiple Choice They must be provided by all employers according to the law. They are based solely on the age of employees. They pay employees for days not worked due to illness. They are mandatory forms of unpaid leave. They are forms of floating holidays.

They pay employees for days not worked due to illness.

What should employees typically do to earn bonuses under the Scanlon plan? Multiple Choice They should produce products at a rate much higher than the standard production time. They should create goodwill with customers and close as many sales as possible. They should follow a defined set of quality standards to produce the desired outcome. They should keep labor costs to a minimum and produce as much as possible with that amount of labor. They should improve their performance year after year so that they re-earn the bonus during each performance period.

They should keep labor costs to a minimum and produce as much as possible with that amount of labor.

What is an accurate description of unemployment insurance? Multiple Choice It provides payments to offset lost income during voluntary unemployment. Most funding for unemployment insurance is provided by employees. Unfavorable experience ratings of employers lead to higher premiums. Costs for unemployment insurance are standard across the country. It is a voluntary program based on number of employers in a specific state.

Unfavorable experience ratings of employers lead to higher premiums.

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? Multiple Choice Union workers tend to exhibit lower levels of productivity than nonunion workers. Unions are designed to cater to the interests of management rather than to those of employees. Unionization tends to reduce the overall costs of labor and operations. Forming an employee union will reduce the risk of work stoppages. Unionization is associated with higher costs in wages and benefits.

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? Multiple Choice Workers in unionized organizations tend to exhibit lower levels of productivity than workers in nonunion organizations. Unionized organizations are often required to pay their workers higher wages and offer them more generous benefits. Studies reveal that unions do not have any positive effects on performance measures, such as productivity, profits, and stock performance. Unions tend to have a positive impact on the self-esteem of their members. The formation of labor unions is likely to lead to conflicts between social and labor union goals.

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

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? Multiple Choice For the organizing process to continue, at least 30 percent of the employees must sign an authorization card. In an election, workers may have a choice from among more than one union. In most organizing efforts, there is a hotly contested election campaign. Unions usually launch an organizing campaign by discussing issues with employees at home. Regulations forbid unions from using online databases to identify issues of interest to particular workers.

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

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? Multiple Choice With gainsharing, employees are freed to collaborate on how to improve performance. Gainsharing creates a competitive environment, so employees will try to outdo one another. Gainsharing is appropriate because the jobs in this case are simple, and so are the performance standards.

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

What is characteristic of benefits required by the Social Security Act? Multiple Choice Workers receive no benefits until they reach the full retirement age. Workers are compensated according to their past earnings and retirement age. Workers receive increased benefits when they earn more than the exempt amount. The cost of the program is borne entirely by the employers, who pay a payroll tax. The program benefits persons who are financially dependent on current workers.

Workers are compensated according to their past earnings and retirement age.

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? Multiple Choice a retention bonus a piecework rate system a merit pay system the Scanlon plan a balanced scorecard

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? Multiple Choice the Scanlon plan a balanced scorecard a dashboard an employee stock ownership plan a differential piece rate system

a balanced scorecard

The National Labor Relations Board certifies a union as the exclusive representative of a group of employees when Multiple Choice the management of an organization approves of a union. a union pays its dues to the board. at least 51 percent of the employees join the union within a certain time (30 days) after beginning employment. a majority of workers vote in favor of a union. the American Federation of Labor and Congress of Industrial Organizations votes in favor of a union.

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? Multiple Choice a managed care plan a health maintenance organization a preferred provider organization an employee wellness program a flexible spending account

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 Multiple Choice a commission. a retention bonus. stock options. merit pay. a differential piece rate.

a retention bonus.

Which individual is covered by the National Labor Relations Act (NLRA)? Multiple Choice a worker employed as a supervisor a person working for a parent an independent contractor a worker employed by an employer subject to the Railway Labor Act a worker going out on strike to secure better working conditions

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? Multiple Choice an agency shop agreement a checkoff provision a union shop agreement a trade-off provision a closed shop agreement

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? Multiple Choice a closed shop provision, because it gives an employee the right to participate in decision making without becoming a member. a maintenance of membership provision, because it allows employees to join the union as passive members. a union shop provision, because it helps an employee use indirect influence to affect management-union contracts. an agency shop provision, because it requires employees to pay union dues but does not force them to become members. a checkoff provision, because it requires all the employees of an organization to join the union, regardless of their preferences.

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? Multiple Choice an employee wellness program a health maintenance organization plan a preferred provider program a managed care program a consumer-driven health program

an employee wellness program

Under the Americans with Disabilities Act, which employer is most likely to face legal challenges? Multiple Choice an employer who switches to a risk-based insurance policy after hiring a disabled employee an employer who sets guidelines for using waivers an employer who discriminates against workers over age 40 in providing pay or benefits an employer who has risk-based insurance and then hires an employee with a disability an employer who does not have a cafeteria-style insurance program

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

What depicts the most complex bargaining structure in collective bargaining? Multiple Choice a craft union representing one facility a teachers' union representing a large city's school district a craft union representing employees in two facilities of one company an industrial union representing all hourly employees of several companies a carpenters' union representing the employees of one construction firm

an industrial union representing all hourly employees of several companies

Organizations must communicate benefits information to employees so that they will Multiple Choice be motivated to work harder. choose the least-expensive benefits package. be legally liable in an employee lawsuit. be informed of future career opportunities within the organization. appreciate the value of their benefits.

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 Multiple Choice arbitration. fact finder negotiation. mediation. checkoff bargain. grievance leverage.

arbitration.

Straight commission plans are plans that Multiple Choice provide a straight salary to employees. are useful when the organization wants salespeople to concentrate on listening to customers. are used to attract risk-averse employees. are common among car salespeople. are uncommon among car salespeople.

are common among car salespeople.

Team awards differ from group bonuses in that they Multiple Choice are typically plant-wide group incentive programs. make payments in company stock rather than in cash. are more likely to use a broad range of performance measures. encourage competition among individual employees to achieve higher bonuses. give more importance to organizational performance than small groups' performances.

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

Which term refers to a substitute arrangement of union membership in which members receive discounts on insurance and credit cards rather than representation in collective bargaining? Multiple Choice card-check provision corporate union membership indirect union provision associate union membership relational union membership

associate union membership

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? Multiple Choice merit pay profit sharing gainsharing balanced scorecard Scanlon plan

balanced scorecard

The collective bargaining agreement taking place at Sunset Films involves scriptwriters and set designers. These two groups make up the Multiple Choice arbitrated team. bargaining structure. union leverage. differentiated group. associate mediation.

bargaining structure.

Folger Group pays its executives short-term incentives for meeting financial targets. What could be included in this incentive pay? Multiple Choice bonus for meeting the return on investment goal for last year bonus for meeting a target for greater customer satisfaction stock options stock purchase plans merit pay

bonus for meeting the return on investment goal for last year

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? Multiple Choice by recalling that employees are also motivated by factors other than pay by removing non-management employees from the team designing the incentive plan by conducting meetings to teach about profit sharing and how employees will benefit by reminding employees that rumors are against company policy by shutting down the company's intranet to prevent further spreading of rumors

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

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? Multiple Choice by meeting the standards of most U.S. businesses by making the workplace more family-friendly by protecting the company against charges of employment discrimination by complying with legal requirements for benefits by helping employees cope with demanding, high-stress jobs

by helping employees cope with demanding, high-stress jobs

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) Multiple Choice agency shop. checkoff provision. maintenance provision. trade-off provision. union shop.

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. Multiple Choice open shop closed shop checkoff provision union shop agency shop

closed shop

A balanced scorecard is a(n) Multiple Choice combination of performance measures directed toward the company's long- and short-term goals and used as the basis for awarding incentive pay. performance review process where the organization collects feedback from customers, managers, and subordinates; assigns ratings; and lists them on the company's performance card. arrangement in which the organization distributes shares of stock to all its employees by placing the stock into a trust. type of incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary. system designed to measure the performance of HR personnel based on the quality of recruitment.

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

When an employee's pay is calculated as a percentage of sales, it is referred to as Multiple Choice commissions. gainsharing. a merit plan. a variable wage plan. profit sharing.

commissions.

The National Labor Relations Board has two major functions: one is to prevent unfair labor practices, and the other one is to Multiple Choice conduct periodic onsite inspections of union and company financial records. conduct and certify representation elections. make rules and regulations for union-management relations. levy punitive charges on violators. monitor and regulate labor relations in small, local businesses.

conduct and certify representation elections.

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? Multiple Choice stipulation election decertification election union election agreement election consent election

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. Multiple Choice collective coercion corporate campaigns indirect provisions associate campaigns social campaigns

corporate campaigns

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) Multiple Choice craft union. industrial union. local union. business union. vertical union.

craft union.

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.? Multiple Choice differential piecework rate minimum wage merit pay retention bonus group bonus

differential piecework rate

An individual who is __________ would NOT be covered by the NLRA. Multiple Choice employed as a supervisor employed in the service sector employed by a private-sector firm with less than 15 full-time employees joining a union that is not recognized by his or her employer refraining from activity on behalf of the union

employed as a supervisor

Under a 401(k) plan, the __________ is responsible for choosing specific investments. Multiple Choice employee PBGC ERISA fiduciary advisor financial institution handling the account employer

employee

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? Multiple Choice Scanlon plan balanced scorecard piecework stock plan employee stock ownership plan differential piece stock plan

employee stock ownership plan

In the process of designing incentives, managers should make sure that Multiple Choice all the employees are paid the same amount. even the lowest performing employees are rewarded. employees focus only on completing the task quickly. employees believe that the pay plan is fair. they hire employees who consider earning money as the sole reason to perform well.

employees believe that the pay plan is fair.

When considering employee benefits, it has been found that Multiple Choice employees have a thorough understanding of what benefits they have and what the market value of these benefits is. employees have a hard time understanding the cost and value of their benefits. it is up to employees to determine the cost and value of their benefits. employees, for the most part, are just not interested in their benefits. employers have very limited options for communicating information about benefits.

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

Which employees are excluded by the National Labor Relations Board (NLRB) from participating in organizing activities? Multiple Choice employees in multiple facilities within a single employer employees covered by multiple employers employees who are independent contractors employees who have been on strike for economic reasons for less than one year and who have been replaced by other employees employees who have a community of interest in their wages, hours, and working conditions

employees who are independent contractors

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) Multiple Choice fact finder. arbitrator. stakeholder. moderator. rights enforcer.

fact finder.

Strikes are illegal in most states for which class of workers? Multiple Choice members of the AFL-CIO members of craft unions members of industrial unions federal and state workers union stewards

federal and state workers

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? Multiple Choice flexible spending account preferred provider organization health maintenance organization consumer-driven health plan managed care plan

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? Multiple Choice profit rate gainsharing commission sharing merit gain group bonus

gainsharing

Which incentive plans are specifically designed to promote group performance? Multiple Choice performance bonuses gainsharing standard hour plans merit pay commissions

gainsharing

The method for providing solutions to union-management conflicts over interpretation or violation of a collective bargaining agreement is known as a Multiple Choice complaint protocol. chain of command. grievance procedure. protest procedure. corporate campaign.

grievance procedure.

A feature of an effective incentive pay plan is that it should Multiple Choice have performance measures based on employees' requirements. not be provided as a direct percentage of employees' performance. encourage group performance and sideline individual achievements. be the same for all employees in the organization. have performance measures linked to the organization's goals.

have performance measures linked to the organization's goals.

Which action related to employee benefits can give employers an advantage in the labor market? Multiple Choice helping employees understand the value of their benefits limiting benefits to a few simple options explaining complex benefits with sophisticated language keeping messages about benefits basic and uncreative simplifying messages about benefits by delivering them through one medium

helping employees understand the value of their benefits

Which factor has been associated with the decline in union membership? Multiple Choice high regulation in such areas as workplace safety and equal employment opportunity low competition between companies for scarce human resources high job growth in the manufacturing sector of the economy low costs of unionized labor low prospects for growth in the service industry

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

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? Multiple Choice if all the employees are under the age of 30 if the nature of work demands college graduates if the firm employs experienced, older people if the firm employs young and creative minds if the firm mainly employs freelancers

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 Multiple Choice pay his employees per piece that is manufactured. create a balanced scorecard. reorganize the departments in the organization. implement a profit-sharing incentive plan. hire new employees and pay them above the market rate.

implement a profit-sharing incentive plan.

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? Multiple Choice minimum wage overtime pay incentive pay piecework rates salary

incentive pay

The differential piece rate system refers to a(n) Multiple Choice incentive pay plan in which the employer pays the rate per piece based on the difference in performance of employees. system that gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard. incentive pay in which the piece rate is higher when a greater amount is produced. system of linking pay increases to ratings on performance appraisals. incentive pay plan where employees are paid different wages based on the skills they possess.

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 Multiple Choice monthly salary. wage. incentive pay. annual salary. fixed pay.

incentive pay.

Most pay-related communications come through Multiple Choice the company newsletter. one designated company speaker. rumors between employees from various departments. an employee's annual review. individual discussions between employees and their supervisors.

individual discussions between employees and their supervisors.

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. Multiple Choice international industrial stewards checkoff craft

industrial

Under the Older Workers Benefit Protection Act of 1990, which guideline must employers follow when asking employees to sign early-retirement waivers? Multiple Choice inform employees that they may consult with a lawyer before signing allow employees no more than 48 hours before signing the retirement agreement make Age Discrimination in Employment Act (ADEA) waivers compulsory provide lesser benefits than would otherwise be available upon retirement provide employees with an annual bonus and health insurance after the retirement

inform employees that they may consult with a lawyer before signing

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? Multiple Choice discouraging employees from forming a union making managers and workers into adversaries keeping operations flexible and retaining some control over schedules raising the value of workers' compensation package ensuring a regular flow of new members into 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 Multiple Choice checkoff provisions. right-to-work laws. pension rights. labor relations. corporate campaigns.

labor relations.

Organizations that are formed in order to represent their members' interests while dealing with employers are known as Multiple Choice guilds. republics. lobbies. trade associations. labor unions.

labor unions.

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 Multiple Choice partnerships. lobbies. trade associations. labor unions. interest groups.

labor unions.

When an employer excludes workers from a workplace until they meet certain conditions, it is known as a Multiple Choice strike. lockout. mediation. picket line. sabbatical.

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 Multiple Choice the Scanlon plan. a balanced scorecard. long-term incentives. a merit plan. short-term incentives.

long-term incentives.

Organizations customize their balanced scorecards according to their Multiple Choice earnings. profits, benefits, and incentives. markets, products, and objectives. objectives as set by the organization's CEO and board of directors. research on what drives employee motivation.

markets, products, and objectives.

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? Multiple Choice mediation final-offer arbitration fact-finder technique conventional arbitration rights arbitration

mediation

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? Multiple Choice piecework plan merit pay standard hour plan differential plan skill-based plan

merit pay

Which type of incentive plans are used to reward individual performance? Multiple Choice gainsharing merit pay Scanlon plan profit sharing stock ownership

merit pay

An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as Multiple Choice commissions. the Scanlon plan. merit pay. gainsharing. profit sharing.

merit pay.

What is an example of a defined-contribution pension plan? Multiple Choice consumer-driven pension plan money purchase plan cost-sharing plan flexible spending account plan unfunded PBGC plan

money purchase plan

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? Multiple Choice forming labor relations strategies administering agreements negotiating contracts terminating contracts forming dissociation strategies

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 Multiple Choice exercise the option, receiving a gain of $5. exercise the option, receiving a gain of $40. not bother to exercise the options. buy the stock at $45 per share. sell the shares to a third party slightly above the market price.

not bother to exercise the options.

A logical place to begin selecting employee benefits is to establish __________ for the benefits package. Multiple Choice a basic hierarchy limits costs costs objectives

objectives

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? Multiple Choice women of childbearing age disabled workers older people young people unmarried people

older people

Retention bonuses refer to Multiple Choice the special reward programs used to satisfy the lower- and middle-level managers. the bonuses provided to union members to withhold a strike. the bonuses provided to employees who take long leaves without pay. annual incentives paid to daily wage workers to remain in the organization. one-time incentives paid to top employees in exchange for remaining with the company.

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

Bargaining over a new union contract typically occurs Multiple Choice only about every three years. on an annual basis. only on the anniversary of the union's establishment. when the union wants more power over an organization. when a company feels a union is overstepping its boundaries.

only about every three years.

What type of organizations benefit from a savings in pension benefits when switching from a defined-benefit plan to cash balance plans? Multiple Choice organizations with many experienced employees organizations with a few skilled employees organizations with many young employees organizations with many retired employees organizations with highly skilled, young employees

organizations with many experienced employees

A difference between an industrial union and a craft union is that only an industrial union Multiple Choice contains members who have a particular skill or occupation. is often responsible for training its members through apprenticeships. organizes as many employees in as wide a range of skills as possible. represents a particular occupation. comprises members who change employers more often.

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

A floating holiday refers to Multiple Choice paid holidays that vary from year to year. days off that an employee can schedule based on need. traditional religious holidays that are given as paid time off. the pool of vacation and sick days accumulated by an employee. days off associated with a short-term disability.

paid holidays that vary from year to year.

Which strategy can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits? Multiple Choice paying existing workers overtime instead of adding employees limiting the coverage on life insurance based upon an employee's age using more full-time rather than part-time employees recruiting new employees instead of demanding overtime from existing employees substituting HMO and PPO plans with traditional health insurance plans

paying existing workers overtime instead of adding employees

What is an organization-level incentive plan that is intended to motivate employees to align their activities with the organization's goals? Multiple Choice profit sharing gainsharing merit pay group bonus Scanlon plan

profit sharing

What guideline should be followed by a supervisor to discourage unions? Multiple Choice promise employees that they will receive favorable terms or conditions of employment if they forgo union activity. threaten employees with harsher terms and conditions of employment or employment loss if they engage in union activity. limit direct contact with employees. interrogate employees about pro-union or anti-union sentiments that they or others may have. report any direct or indirect signs of union activity to a core management group.

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

Piecework rate plans are most suited for Multiple Choice innovative tasks. customer-service jobs. managerial jobs. high-risk jobs. routine jobs.

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? Multiple Choice hiring employees who prefer to work alone and equipping them with cost data sharing data about costs and setting up time for employees to interact indicating that failure to achieve goals will lead to job cuts using incentive pay as a substitute for goal setting and performance standards promoting continuous improvement and limiting time spent on personal interactions

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? Multiple Choice increasing the amount employers pay for deductibles and coinsurance selecting traditional health insurance over HMOs and PPOs as a preferred option expanding the coverage for different types of claims paying some or all of the difference in cost between an HMO or PPO plan shifting from traditional health insurance plans to PPOs and CDHPs

shifting from traditional health insurance plans to PPOs and CDHPs

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. Multiple Choice management union industrial societal economical

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? Multiple Choice piecework plan differential plan standard hour plan merit pay performance bonus

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 Multiple Choice standard hour plan. differential piecework plan. merit pay plan. straight piecework plan. Scanlon plan.

standard hour plan.

What is an example of a long-term incentive? Multiple Choice sales commission group bonus merit pay stock option piece rate

stock option

The link between employees' performance and pay is hardest to establish in Multiple Choice piece rate plans. merit pay plans. standard hour plans. stock ownership plans. Scanlon plans.

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? Multiple Choice straight piecework plan falling differential rising differential standard hour plan straight commission plan

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 Multiple Choice commission plan. differential piece rate plan. direct commission plan. profit-sharing plan. straight piecework plan.

straight piecework plan.

What is an advantage of a qualified plan in retirement benefits? Multiple Choice tax-free earnings on the money in the retirement fund taxable earnings on the money in the retirement fund tax-free withdrawals for highly compensated employees exemption of contribution from employees a retirement plan that provides benefits exclusively to its owners and top managers

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? Multiple Choice merit pay team awards commission gainsharing profit sharing

team awards

Which law regulates unions' actions with reference to their members, including financial disclosure and the conduct of elections? Multiple Choice the Hatch Act the Taft-Hartley Act the Landrum-Griffin Act the Civil Service Reform Act the Maguire Act

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 Multiple Choice a group bonus. merit pay. the Scanlon plan. a piecework rate. a team award.

the Scanlon plan.

Which law permits states to pass right-to-work laws? Multiple Choice the Taft-Hartley Act the Sarbanes-Oxley Act the Landrum-Griffin the Hatch Act the Maguire Act

the Taft-Hartley Act

What are vesting rights? Multiple Choice the ability of retired employees to retain their seniority if they return to work at their former employer a government commitment to provide retirement benefits to all U.S. workers the designation that retired workers will receive cost-of-living increases as part of their monthly pension checks the guarantee that employees in a pension plan will receive a pension at retirement age, regardless of whether they stay with the employer the ability of younger workers to move their retirement savings to another account after leaving a specific employer

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

If employee participation in making pay-related decisions is encouraged in an organization, then Multiple Choice administering the plans becomes simple. the organization's interests can be best protected. the cost borne by the organization decreases. monitoring performance becomes difficult. the incentive plan has more chances of being successful.

the incentive plan has more chances of being successful.

In a company's merit pay program, an individual's compa-ratio represents Multiple Choice the individual's pay relative to the individual's performance rating. the individual's pay relative to the company's average pay for that position. the individual's worth versus that of others in the organization. the ratio of the individual's pay to benefits. the average worth of the skills possessed by the individual.

the individual's pay relative to the company's average pay for that position.

A major problem with ESOPs is that Multiple Choice they carry a significant risk for employees. employees are not allowed to participate in votes by shareholders. the stocks within the trust are too widely diversified to earn high returns. any earnings from the trust holdings are taxed at an extremely high rate. they result in reduced profitability for the employees.

they carry a significant risk for employees.

A __________ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits. Multiple Choice top-heavy multi-employer special draw rights deferred defined-contribution

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? Multiple Choice work rules, rest periods, and hours of work health insurance, pension plans, and bonuses application of rules to apprentices and employees who are veterans training programs, transfer arrangements, and relocation allowances grievance procedures, job classifications, and production standards

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? Multiple Choice tuition reimbursement program employee wellness program worker's compensation program short-term vesting program mature education program

tuition reimbursement program

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. Multiple Choice closed shop maintenance of membership provision agency shop checkoff provision union shop

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 Multiple Choice business representative. chief executive officer. stakeholder. union trustee. union steward.

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? Multiple Choice opt for communication methods that do not stress the value of each benefit avoid standardized plans available for employers opting for cafeteria-style benefits use software packages to design the plan rather than design his own discourage employees from choosing lower-cost options encourage employees to choose benefits they need the most

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

Which situation is required for workers to become eligible for unemployment benefits? Multiple Choice when they have worked only for a few days when they are out of work because they are sick when they are discharged because of willful misconduct when they are actively seeking work when they are out of work because of a labor dispute

when they are actively seeking work

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? Multiple Choice self-managing employee teams, which could conduct a union organizing campaign management-established representation systems, which are endorsed by the NLRB the National Labor Relations Board, which could require the company to form a union worker centers, which could influence attitudes through publicity and community support arbitration panels, which could rule that fair labor conditions require a union

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