MGMT Final Study Guide
Eleanor, who is pregnant, works for an organization with more than 100 employees. She lives 20 miles away from work. By federal law, she is entitled to ________ of unpaid leave after her child is born.
12 weeks
Most national unions in the United States are linked with the ________, an association that seeks to improve the shared interests of its member unions at the national level.
American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
Karina, a researcher, believes that an organization needs to plan what they will pay employees in each job. Timmy, her colleague, argues that an employee's pay should be independently negotiated. Which statement weakens Timmy's argument?
An unplanned approach will likely result in unfairness and dissatisfaction among the employees.
Daniel is an employee at Atex Inc. Recently, he was moved to a new work team to help in the development of a new product. Chris, his supervisor on the new team, describes the set of behaviors that the new team members will expect of Daniel. Daniel, however, feels that these demands contradict the expectations set forth in his previous role at Atex Inc. Which situation is most likely to be the primary source of Daniel's dissatisfaction about his role?
Atex Inc. has brought together employees from different functions to form a team, leading to conflicting expectations.
Zachary was recently made the manager of his department at Cyscon Co. He has to evaluate his subordinates' behavior in the next two weeks and is unsure if he should use the behaviorally anchored rating scale (BARS) or the behavioral observation scale (BOS) to assess their behavior. Which characteristic of the two would help Zachary decide the scale that would be most appropriate for him to use?
BOS because it looks at all of the employees behavior and rates them all during the period.
Becky and Dave are expatriates working for different companies in two different countries. Becky's company is very structured, follows rigid rules for security, and expects employees to behave in a certain manner. Dave's company is a little more relaxed, and they tend to take each day as it comes. Which cultural difference contributes to this difference in the way these corporations operate?
Becky's company's culture functions with a high uncertainty avoidance, whereas Dave's company's culture functions with a low uncertainty avoidance.
What is the difference between bonuses and team awards?
Bonuses reward attainment of a specific goal, whereas team awards reward performance measured more broadly.
What is a similarity between unemployment insurance benefits and workers' compensation benefits?
Both of the programs' costs depend on the organization's experience ratings.
Derrick, a sales manager at Kappa Corp., finds that Jack, a salesman, lacks motivation to perform well in his job. In the context of finding solutions to performance problems, what is the right way to deal with this situation?
Derrick must counsel Jack to help him understand the factors that are affecting his motivation.
Employee turnover at Wholesome Publishing is low, but many employees in the Children's Book Division seek transfers to other divisions. Which situation is most likely to explain the employees seeking to leave the Children's Book Division?
Employees consider the manager of the Children's Book Division to be unfair.
Keith, a human resource manager at Uno Inc., is considering the use of self-appraisals. Which statement is TRUE about self-appraisals?
Employees have a tendency to inflate their self-assessments
Vince, an HR manager, conducts a survey to learn which benefits employees value the most. However, he finds that the survey results are difficult to apply. What is the most likely reason?
Employees have very different opinions about what they value.
Which statement best describes a difference of giving performance feedback outside the United States?
Employees in other countries are less likely to be comfortable with direct statements about their performance.
Allen, the CEO of a company, considers dropping medical insurance from the list of benefits provided to its employees. Monique, the operations director, disagrees with Allen by stating that medical insurance is a high-value benefit. Which of the following supports Monique's statement?
Employees usually realize that surgery or a major illness can be financially devastating.
For incentive pay to motivate employees to contribute to the organization's success, the pay plans must be well designed. Which statement describes a characteristic of a well-designed plan?
Employees value the rewards or incentives that are being offered.
Joe, a supervisor, believes that employees should participate in pay-related decisions. He says that it will most likely help in the success of incentive plans, and the plans are more likely to influence employee behavior as desired. Which statement weakens this argument?
Employees will make decisions that are in their best interests at the expense of the organization's interests.
What is an advantage of providing benefits instead of cash compensation?
Employers can assemble creative benefits packages that give them a competitive advantage.
Which manager is using the most effective approach to conducting a performance feedback session?
Evan works with each employee to solve performance problems respectfully, focusing on behaviors.
Showery Drugs is a pharmaceutical company based in Detroit. Showery Drugs expects its employees to work long hours and achieve increased production rates. Employees earn one and a half times the usual hourly rate for working more than 40 hours in one week. Which law is Showery Drugs abiding by in this scenario?
Fair Labor Standards Act (FLSA) of overtime
The ________ usually provides the neutral third party who is used for the common alternatives to strikes.
Federal Mediation and Conciliation Service
Deepak, a trainee at NextGen Corp., is known among his colleagues for his arrogance, rude behavior, and short-tempered nature. His supervisor, Garin, does not feel like Deepak is performing well and wants to fire him. However, Marissa, the manager of the HR department, advises Garin to rethink his decision in order to avoid the possibility of Deepak reacting violently or filing a lawsuit when he receives the news. In this scenario, which situation is most likely to result in an amicable discharge of Deepak from NextGen Corp.?
Garin encourages Deepak to think about whether he is a good fit for the job and whether he might want help finding another.
Which situation is an example of involuntary turnover?
Gisele, an employee at Innovative Tech, is fired because of theft.
What is the name of the rating error that leads employees to believe that no aspect of their performance needs improvement?
Halo error
Saad was an employee at a chemical company called FGR Inc. He noticed that several of the security personnel at FGR allowed tankers to be filled over the legal limit with highly inflammable gases. Saad gathered ample evidence of such instances and presented it to senior management. A few months later, the company had not acted, and Saad contacted the Occupational Safety and Health Administration. Less than a week later, the company fired Saad. Assuming that Saad had not had disciplinary issues and wanted to file a claim alleging he was wrongfully discharged, what would be the strongest basis for his claim?
He was disciplined for doing what the law requires.
Jerome is the CEO of a magazine publishing company. He wants to provide benefits for his employees but would still like to control his company's costs. Ashley, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Jerome doing so?
He will avoid the cost of providing employees with benefits they don't value.
Jordan, the CEO of Sinc Co., believes in providing employees with a flexible and open environment to enhance their skills and growth in the company. In the context of performance management and ethical issues associated with it, which of the following would Jordan most likely oppose and why?
He would be against electronic monitoring systems because they make the employees feel like robots and that they are being watched.
What is true of how the National Labor Relations Board (NLRB) carries out the function of preventing unfair labor practices?
If an employer or union refuses to comply with an NLRB order, the board has the authority to petition the U.S. Court of Appeals.
Which statement is true of effective performance management?
It can tell top performers they are valued.
What is a disadvantage of using group bonuses?
It could result in competition among groups.
What is a disadvantage of a pay structure that rewards employees for winning promotions?
It discourages employees from gaining valuable experience through lateral career moves.
Identify a true statement about the balance sheet approach used for expatriate compensation.
It ensures managers receive extra pay for the inconvenience of locating overseas.
What is a feature of a company with an individualistic culture?
It exhibits greater differences between the highest and lowest pay in the organization.
Tina, 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. Tina says it was. What is the most likely reason for Tina's opinion?
It increased employees' commitment and satisfaction, so they contribute more to the company.
Which of the following best defines job withdrawal?
It is a set of behaviors with which employees try to avoid the work situation physically, mentally, or emotionally.
Identify the correct statement regarding an employee assistance program.
It is a system that supervisors can use to refer their employees for professional treatment when necessary.
The executives of Bee Hive Honey 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, Ashley, to plan a system of employee--manager meetings to address issues such as these. As Ashley considers this request, what potential problem should she keep in mind?
It is possible that a management-established system of employee representation may violate the NLRA.
What is an advantage of using results-oriented performance measurement?
It is relatively easy to link to the organization's goals.
What is a disadvantage of skill-based pay systems?
It may result in paying employees for skills they don't use.
What must be true for a pension plan to be deemed a qualified plan?
It must not discriminate in favor of an organization's highly compensated employees.
Which statement is true of a performance bonus?
It should be re-earned by employees during each performance period.
________ is a pleasant feeling resulting from the perception that one's job fulfills or allows for the fulfillment of one's important job values.
Job satisfaction
Lillian and Thomas are employees of a software development firm in San Francisco. Thomas believes that Lillian exhibits behaviors that resemble those of individuals from masculine cultures. Which statement, if true, supports Thomas's beliefs?
Lillian places more emphasis on creating an atmosphere of competition among her team members.
Lillian is the purchasing manager at Ceramic Central, a maker of housewares. She has evaluated the first year's performance of Jason, a purchasing agent. In the evaluation, she noted that he places orders accurately, but when employees in the company ask about the status of their orders, he has difficulty finding the information for them in a timely manner. What should be the next step in performance management in this situation?
Lillian should arrange for training so Jason can learn how to look up the status of orders.
Cameron, a supervisor at Margolia Co., needs to appraise the performance of her subordinate, Stefan. In the context of performance information, what is the least biased source of information for appraisal and why?
Managers because their success depends on the employee's productivity.
Deena, a human resource professional, works for a U.S. company that is opening an office in Brazil. She is preparing a training program for the managers there to learn how to carry out performance management. What is a valid point Deena should cover in the training?
Managers can expect that Brazilian employees want to know what they are doing right.
Identify the statement that characterizes an industrial union.
Members are linked by their work in a particular industry.
Morgan, a consultant, was assigned to an overseas project in China for a period of two years. After only seven months, Morgan's manager decides to bring Morgan back to the home country and replace him with someone else in China. Which statement, if true, is most likely to have caused this decision?
Morgan exhibited a sense of intolerance toward collectivist ideals.
The ________ has the authority for certifying or decertifying a union through an election.
National Labor Relations Board (NLRB)
Which statement is true about the Fair Labor Standards Act (FLSA)?
Nonexempt employees are covered by FLSA and include most hourly workers.
Which statement is true about a product market?
Organizations in a product market are competing to serve the same customers.
Which statement is true about job-based pay structures?
Organizations may avoid change because it requires repeating the time-consuming process of creating job descriptions and related paperwork.
________ is a process for resolving disagreements by taking them to a panel composed of representatives from the organization at the same levels as the people in the dispute.
Peer review
Min, the production manager of Manning Inc., is writing a recommendation to begin gathering performance appraisal information from peers along with other sources of information. Which statement best supports Min's recommendation for getting peer feedback?
Peers have expert knowledge of job requirements.
When Thomas Inc. dismissed Jim, his supervisor told him the reason was that he did not meet performance standards. The supervisor assumed that would prevent Jim from claiming he had been dismissed unjustly. What is the main flaw in the supervisor's assumption?
People who sue for unjust dismissal usually claim the real reason for the dismissal differs from what the employer said.
Choose the correct statement about personal dispositions.
People with a positive core self-evaluation tend to experience job satisfaction.
________ is a type of incentive pay in which payments are a percentage of an organization's profits and do not become part of its employees' base salary.
Profit sharing
________ is uncertainty about what the organization and others expect from the employee in terms of what to do or how to do it.
Role ambiguity
Heidi is a single mother who works full-time and attends to the needs of her two young children. She often feels a lot of pressure in balancing her work and looking after her children. What is Heidi experiencing?
Role conflict
________ is an employee's recognition that demands of the job are incompatible or contradictory.
Role conflict
Ron and Yin are welders working for two different divisions of the same company. Both have the same level of experience. However, Ron earns more than Yin. Under the Fair Labor Standards Act (FLSA), which statement justifies the organization's decision to pay Ron more than Yin?
Ron lives in a location where living expenses are higher.
Shannon, a Canadian citizen, has been working in the United States for two years. Shannon's manager, Eric, believes she possesses the skills required for adaptation and is ideal for an overseas managerial assignment in India. Which statement, if true, strengthens Eric's belief?
Shannon has the ability to foster relationships with people in a host country.
Virginia considers Howard, her office assistant, to be both highly skilled and highly motivated. Howard frequently surprises Virginia with his creative problem solving, above and beyond the basic job requirements. What response should Virginia make to Howard's performance?
She should reward Howard and offer him opportunities for career development.
________ promote respect for past tradition and for fulfilling social obligations in the present.
Short-term orientations
Dina, the human resource manager at K-Pack Inc., wants to use subordinates as sources of performance appraisal information. Which statement best supports that idea?
Subordinates often have reliable information about a manager's behavior toward employees.
Under the FLSA, which statement is true of child labor?
The FLSA's restrictions on the use of child labor apply to children younger than 18.
Park Production offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of their age, earnings, and years of service. But the company didn't keep up with technology, and its earnings fell. When the stock market dipped, the company could no longer afford to keep paying for its retirement benefits. What protection will the retirees have in this situation?
The Pension Benefit Guarantee Corporation will provide them with a basic benefit.
Veronica is the supervisor of the recruiting department at Kintex Inc. She is currently in charge of filling a few high-demand positions at Kintex Inc. and is planning to poach talent from rival companies, luring their employees away with job benefits. Drew, the HR head of Kintex Inc., however, argues that Veronica's plan will not work. Which explanation is most likely to strengthen Drew's argument?
The candidates are looking for higher pay, not better benefits.
According to the hot-stove rule, which quality makes discipline more effective?
The consequences for breaking a rule are immediate.
During contract negotiations, the union representing the teachers in District 52 is calling for a strike if the union's demands aren't met by the end of the week. A new school board member is worried about school shutting down and suggests directing the negotiators to accept the union's demands. A more experienced board member says the teachers also have reasons for not wanting to strike. What would be one of the most likely reasons for teachers not wanting to strike?
The district will not pay the teachers while they are on strike.
William, a supervisor, is discussing an employee with Barb, the human resource manager at his company. The employee's performance has been falling, and the employee has been absent on several workdays. William is concerned about this change in behavior. The HR manager suggests that William encourage the employee to contact the employee assistance program (EAP) for a referral to a counselor. In which situation would Barb's advice be most appropriate?
The employee has the necessary skills but lacks motivation.
GR Designs, a manufacturing company, hires employees ranging in age from 14 to 25. Which practice by GR would ensure that it complies with child labor laws?
The employees aged 14 and 15 work only in office jobs and for limited time periods.
Some employees at Opal Coin, a clothing manufacturer, investigate pay rates on Salary.com and learn that Opal Coin has been paying them significantly more than the national average for their jobs. In this case, what is the most likely reaction of the employees at Opal Coin?
The employees will conclude that there must be regional differences in pay.
Spencer & Solomon, CPAs, brought in an HR consulting firm to evaluate the firm's performance management system. The firm has offices in six locations, and the manager of each location rates the office's staff members using a 5-point rating scale. After studying the appraisal results from the past three years, the consultants reported that they cannot make comparisons among the offices. What is the most likely problem?
The managers are making distributional errors, each using only part of the rating scale.
Which statement is true about pay ranges?
The market rate or the pay policy line generally serves as the midpoint of a range for the job.
What is true of a cash balance plan?
The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills.
An organization employs Roger, a bilateral amputee, to work as a research analyst. When Lauren, 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 statement will strengthen Lauren's argument?
The organization switched to a risk-based policy after hiring Roger.
Fernando, a manager at a top engineering company, believes he can hire a few employees by promising them job security and later terminating them if business slows down. On what grounds could such a termination be considered a wrongful discharge?
The terminations deviate from the promise of job security in the work agreement.
What attitude do employees typically express toward performance feedback?
They appreciate regular feedback, because they want to know if they are on track.
What is a disadvantage of broad bands?
They reduce the opportunities for promoting employees.
Under the Family and Medical Leave Act, which criteria makes employees eligible to take unpaid family leave?
They should be working for an organization with 50 or more employees within a 75-mile radius.
Deed Manufacturers, a heavy machinery company, has employees belonging to the age group of 17 to 30. Todd, a 17-year-old, is prohibited from working with heavy machinery tools. Instead, he works in the mail room. Under the laws governing Fair Labor Standards Act (FLSA), which statement justifies the organization's decision to forbid Todd from doing heavy machinery work?
Todd cannot be employed in hazardous occupations because he is 17 years old.
Which statement describes an approach that is most appropriate for training employees from cultures high in uncertainty avoidance?
Trainers provide a formal instructional environment.
In performance appraisal, ________ refers to whether an appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance.
Validity
When BBG Inc. was preparing to roll out a new performance management system, Kayla, the human resource executive, insisted that for the new system to succeed, they must first explain it to employees. Kayla said employees need to perceive the system as fair. Why would this effort make the performance management system more effective?
When employees see performance measures as fair, they are likelier to apply the feedback.
Jake, a manager at Wishful Company, 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?
When the company does not have enough workers, production output will fall.
Agger Inc. is opening an overseas office for the first time and is sending its best sales manager to oversee the start-up for two years. Zac, Agger Inc.'s human resource manager, is preparing cross-cultural training for the sales manager. A colleague suggests to Zac that he include the manager's spouse in the training. Should Zac follow the advice of his colleague?
Yes, the spouse should be included because the family's adjustment affects the success of an assignment.
Which of the following best describes a balanced scorecard?
a combination of performance measures directed toward the company's long- and short-term goals and used as the basis for awarding incentive pay
Meghan, 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 Meghan most likely to find suitable for her needs?
a preferred provider organization
Dan is a non-union employee at Lexia Inc. Although he does not intend to join the union at the company, he is still required to pay union dues as part of a union contract with the company. What does this scenario best exemplify?
an agency shop agreement
Under the Americans with Disabilities Act, which employer is most likely to face legal challenges?
an employer who switches to a risk-based policy after hiring a disabled employee
Who among the following is NOT covered by the National Labor Relations Act (NLRA)?
an individual employed as a supervisor
What depicts the most complex bargaining structure in collective bargaining?
an industrial union representing all hourly employees of several companies
The ________ performance management method requires managers to rate the frequency with which an employee has exhibited a behavior during a rating period.
behavioral observation scale
Global Development Corp. pays its executives short-term incentives for meeting financial targets. What could be included in this incentive pay?
bonus for meeting the return on investment goal for last year
Adam, a human resource professional, is preparing for Marianne, a U.S. production manager, to take an assignment at a new facility in Vietnam. Adam wants to measure Marianne's success in establishing high productivity, so he uses the excellent productivity numbers Marianne achieved in her current assignment as a basis for setting performance goals for the Vietnamese position. How could this method of measuring performance be improved?
by adjusting the measure for local factors that could affect productivity
The management of D&D Group wants to begin electronically monitoring the computer work of the employees who process claims filed by customers. Eden, the company's human resource executive, expects that employees will resist the monitoring, because they will feel robbed of their human dignity. How could the human resource department best address this concern?
by applying the data to employee development programs that can help employees advance in their careers
Maria and Devin are both data-entry clerks in the same department of a company. On the anniversary of her employment, Maria receives a 2 percent increase in salary. Later that day, while talking to Devin, she learns that on his anniversary, his pay increase was 4 percent. How could the company's supervisor and human resource department best ensure that Maria will perceive outcome fairness in this situation?
by demonstrating that raises of different sizes are associated with differences in performance
How can data analytics improve the measurement of employees' performance?
by finding patterns in an employee's behavior
How can managers improve employee satisfaction with the feedback process?
by letting employees voice their opinions and discuss performance goals during the feedback process
Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called
cafeteria-style plans.
Mark and his colleagues are members of the union at Newsprint Inc. While negotiating the terms of the labor contract, they request their employer to deduct union dues from their paychecks. This type of contractual arrangement between the two parties is known as a(n)
checkoff provision.
Jesse has a health care plan that provides him with coverage that allows him to be involved in making decisions to help lower costs. This plan typically includes insurance with a high deductible, a medical savings account, and ongoing health education. Which type of health care plan is Jesse using?
consumer-driven health plan
Benny, a supervisor, needs to assess Amanda's, a subordinate's, performance. He considers Amanda to be reliable and meets all his requirements, so he rates her as a good performer. But then Benny thinks about an exceptional employee, Christina, in his department, and decides that, compared with her, Amanda is just average. In this way, Benny's rating is a ________ error.
contrast
The positive or negative bottom-line views that people have of themselves are known as
core self-evaluations.
Dwight, Dane & Associates, a consulting firm with offices in seven countries, is bringing together employees from all locations for a leadership training event. Which consideration is most affected by the international nature of the workforce?
cultural differences
What is the first step in performance management process?
defining performance outcomes for company division and department
Subordinate evaluations are the most appropriate to use for which purpose?
developmental
Corey, a supervisor, needs to rate the performance of 20 subordinates. He uses a rating scale to rate them on a scale of 1 to 10. He rates 18 employees at 5, which leads to central tendency. In the context of types of rating errors, Corey commits a ________ error.
distributional
Which term refers to a referral service that employees can make use of to pursue professional treatment for emotional problems or substance abuse?
employee assistance program
Employee participation in pay-related decisions can be part of a general move toward
employee empowerment.
Which of the following is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust?
employee stock ownership plan
A standard hour incentive plan is likely to be successful if
employees want the extra money more than they want to work at a pace that feels comfortable.
Historically, if an organization and employee do not have a specific employment contract, the employer or employee may not require a specific time to end the employment relationship. This is referred to as the ________ doctrine.
employment-at-will
Low job involvement and low organizational commitment are
examples of psychological withdrawal.
Pablo, an American who works for a U.S.-based company, has been sent to England for a work assignment. Pablo would be known as a(n)
expatriate.
Strikes are illegal in most states for which class of workers?
federal and state workers
Which organizations are most likely to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage?
global organizations
Joel is a manager at Malan Inc., and he uses a rating approach to evaluate his employees. He considers one employee at a time and circles a number or a word to signify the degree to which that employee demonstrates a particular trait in the scale. Which approach is Joel using to assess his employees?
graphic rating scale
Ashlee hails from a country whose legal system is based on religious scriptures. Social and business behaviors are judged based on religious laws and legal codes to a great extent. Which aspect of culture do these conditions represent?
high uncertainty avoidance
Identify a way in which an organization can promote fairness and reduce political behavior in the appraisal system.
hold a calibration meeting in which managers discuss employee performance ratings and provide evidence supporting their ratings
Jose, a Spanish national, is an employee at a U.S. company. He works at the company's branch in Spain. This would imply that Jose is a
host-country national.
Which principle of discipline holds that an organization's discipline should give a clear-cut warning and follow up with consistent, objective, and immediate consequences?
hot-stove rule
QFV International has a goal to lower the cost of employee benefits. Its human resource department compares the costs of its benefits with averages published by the Bureau of Labor Statistics, the U.S. Chamber of Commerce, and other sources. The investigation shows that its cost for workers' compensation insurance is high relative to other companies. Which action could best help QFV International accomplish its goal?
improve safety to lower the company's experience rating
Most pay-related communications come through
individual discussions between employees and their supervisors.
Fresher Inc. is a whole-foods distributor. Its human resource department gathers the following data for computing compa-ratios of some positions. Based on the data, for which position is Fresher Inc. most likely underpaying for human resources?
inventory clerks: average salary of $20,000, range midpoint of $30,000
Tracey, an employee at Holander Holdings, was suspended for two weeks for drug use. Six months later, she was fired from the job because her productivity did not show any improvement even after undergoing treatment for drug use. Which form of discharge did Tracey experience?
involuntary turnover
When conducting a workplace search, employers can act fairly and minimize the likelihood of a lawsuit by
justifying that the organization has work rules that provide for searches.
Organizations that are formed in order to represent their members' interests while dealing with employers are known as
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
labor unions.
Economic theory holds that the most profitable pay level, all things being equal, would be at the
market rate.
If peer review does not lead to a compromise, a neutral party from outside the organization hears the case and tries to resolve the conflict and attempts to reach a compromise. This process is called
mediation.
An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as
merit pay.
Julie, the HR manager at Forge Corp., wants to ensure that incentive pay rewards the individuals who contribute the most to the organization and whose contributions have grown since their pay rates were originally set. She determines that she can best accomplish these goals by paying an incentive amount based on individuals' performance ratings and compa-ratios. In this scenario, Julie would be applying the system of
merit pay.
Which type of alternative dispute resolution functions well only to the extent that employees trust management and managers who hear complaints listen and are able to act?
open-door policy
Although labor and product markets limit organizations' choices about pay levels, there is a range within which organizations can make decisions. The size of this range depends on the
organization's competitive environment.
A difference between an industrial union and a craft union is that only an industrial union
organizes as many employees in as wide a range of skills as possible.
Destiny is an employee at ColorBlock Inc. She loves gossiping about her colleagues during office hours, which causes her to receive a reprimand by her supervisor, Alfonso. A few days later, Alfonso fires Colt, another subordinate, from work for a similar reason. The employees reporting to Alfonso are most likely to conclude he demonstrates a lack of ________ in dealing with employees who gossip at work.
outcome fairness
What is a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job?
pay range
Retaining top performers is not always easy because ________ for high-demand positions, such as software engineers, from other companies has become the norm.
poaching talent
Christopher, a U.S. businessman, visits India for a corporate meeting. While interacting with the board members, he addresses them by their first names, as he does with board members in the United States. However, the board members in India are offended by this gesture. Which difference in culture does this scenario reveal?
power distance
Riley works at Kupton Co., which provides her with a health care plan that contracts with health care professionals to provide services at a reduced fee. Which type of health care plan is Kupton Co. providing to its employees?
preferred provider organization
Which approach to performance feedback is generally most effective?
problem-solving
People's perception of ________ is their judgment that impartial methods were used to determine the consequences an employee obtains.
procedural justice
A piecework rate plan is best suited for
production workers.
Which process seeks to avert misbehavior and to correct, rather than merely punish, misbehavior?
progressive discipline
Anita is very dissatisfied with her job situation, but she does not perceive any other employment opportunities, so she stays and spends most of the workday dreaming about non-work matters. What is Anita experiencing?
psychological job withdrawal
Matt is employed as a supervisor at Total Charge Industries. However, he gets fired from his job when he refuses to break local laws and discharge harmful chemicals from the company's production facility into a nearby river. Matt files a wrongful discharge suit Total Charge Industries. Which exception to the employment-at-will doctrine is Matt likely to choose when filing his suit?
public policy
If a company distributes stock to employees by granting stock options, employees exercise the option when they
purchase the stock.
Kathryn, a manager at Harper Haw, uses a rating tool to evaluate the performance of her subordinates. However, she finds that the scale she used did not yield consistent results, and she could not determine if a change had taken place in the performance of the employees. What was lacking in the rating scale?
reliability
Appropriate behavior in Ghana includes
repaying obligations.
After Fran, a human resource manager, hears reports that some employees are drinking liquor on the job, she arranges to conduct a random search for evidence. Which action would be the most appropriate way for Fran's company to act fairly regarding employees' privacy in this scenario?
requesting consent before gathering information
The ________ is a process of formally identifying expectations associated with a role.
role analysis technique
Venus is concerned about an unacceptable level of job dissatisfaction among a number of work teams in her organization. She has determined that the primary cause of the dissatisfaction is the uncertainty that exists among employees regarding what is expected of them. Based on this limited information, the most appropriate intervention would be
role analysis technique.
Outplacement counseling programs are:
services in which professionals try to help dismissed employees manage the transition from one job to another.
Meghan is the new HR manager at Turner Times. She meets with the company's leaders to discuss how she intends to support business objectives. Meghan tells them that Turner Times has a performance management process that delivers reliable information, but it needs to be more strategic. Which action would best make performance management more strategic?
setting individual performance measures that are linked to the organization's goals
Which action helps organizations reduce the cost of health care benefits offered to employees?
shifting from traditional health insurance plans to PPOs and CDHPs
Fiona, a supervisor at Ronaldo Co., wants to compare the performance of her employees. If she does this by listing the employees from best to worst performer, which term describes her method?
simple ranking
Which of the following helps performance management meet the goals of supporting strategy and developing employees?
specific feedback
Saturn Systems, an information technology company, determines that most problems handled by employees at its help desk can be resolved within 20 minutes. The company sets 20 minutes as the standard time for resolving a customer problem. If an employee solves a customer's problem in less than 20 minutes, the employee still earns 20 minutes' worth of wages. Which payment method does this scenario illustrate?
standard hour plan
Trent owns and manages a small electronics 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, Trent is using a
standard hour plan.
Wayne Inc., a health insurance company, pays clerks an incentive based on the average amount of work completed per hour. Wayne pays $10 for processing 20 invoices per hour. An employee who processes 30 invoices would earn $15 per hour. Hence, Wayne pays the same rate per invoice no matter how many invoices an employee processes per hour. Which type of incentive pay does this scenario illustrate?
straight piecework plan
April, a production manager at Alton Corp., needs to evaluate the performance of her employees. She asks her subordinate, Tiff, to carry out this job. Tiff uses a rating scale, which ranges from 1 to 10, to rate 50 employees. She gives a score of 3 to 39 employees. In doing so, Tiff commits a ________ error.
strictness
The ________ approach to performance feedback is used by most managers.
tell-and-sell
Brian, the HR manager at Haller Co., establishes a performance management system for his company. He wants to check the consistency of results over time. In the context of criteria for determining the effectiveness of performance measures, Brian is trying to check the ________ of the performance management system.
test-retest reliability
Quey Inc., a construction company, receives more than $2,000 in federal money. The company pays its employees at rates at least equal to the prevailing wages in the area. The calculation of prevailing rates by the company is based on 30 percent of the local labor force. In this case, which law does the company comply with?
the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936
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 referred to as
the Scanlon plan.
Which law permits states to pass right-to-work laws?
the Taft-Hartley Act
Gainsharing
the distribution of savings or "gains" to groups of employees who reduced costs and increased measurable productivity
The employees' union and the management at Rex Inc. enter into a contract, which requires Rex to improve its facilities and ensure the safety of its employees. However, a few months later, the employees observe that the conditions have remained the same and that management has not taken any steps to revamp its systems. As a result, the union files a case against Rex for violating the terms of their contract. In order to resolve this issue, the union and Rex will both have to participate in a process for resolving conflicts, known as
the grievance procedure.
Who has the main responsibility of developing a formal discipline process for the workplace?
the human resource department
Sean's company lays down stringent rules for employees to follow at work. Employees are expected to set goals for each day and week and share those goals on the company intranet. This way, Sean and his co-workers can be aware of the progress of departmental projects and prepare far in advance to meet deadlines. These qualities best describe a company that rates high on
uncertainty avoidance.
Nevin joins Firebreak 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, Nevin's HR manager is referring to a(n) ________ arrangement.
union shop
The employees of Fantasy Textiles 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 Gino to represent them during negotiations. Gino'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, Gino most likely holds the position of
union steward.
What is a typical first response in the progressive discipline system?
unofficial spoken warning
Michael 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 Michael likely to do to lower costs at the initial stage?
use software packages to design the plan
In the context of effectiveness of performance management, ________ means the extent to which a measurement tool actually measures what it is intended to measure.
validity
Hameta is a top manager at her current company. However, she is leaving the company for a better job at a competing firm. Which form of turnover is illustrated in this scenario?
voluntary turnover
According to research evidence, in which situation would an employer most have to guard against raters giving unfair low performance ratings to black employees?
when most of the employees in a work group are white
Jeremiah, a vice president of human resources, wants to ensure that his company's performance management process is effective, so he sets up an annual review of the process. What should that review measure?
whether measures of individual performance support the department's and company's objectives
When employees cannot work with management to make changes, they may engage in ________, taking their charges to the media in the hope that if the public learns about the situation, the organization will be forced to change.
whistle-blowing