MGMT 330

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.

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

National Labor Relations Board (NLRB)

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.

Chris, the CEO of an automobile 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 Chris' argument?

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

Which statement is true regarding decisions related to the global compensation strategy?

They affect a company's costs and abilities to compete.

Which statement is true about standard hour plans?

They encourage employees to work as fast as they can.

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.

Brayden, a production manager at Helix 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 Brayden's viewpoint?

Unionization is associated with higher costs in wages and benefits.

Landon, an HR manager, heard from other managers that there was talk of a union organizing effort at his company. Landon 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 Landon's reasoning about the organizing effort?

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

Which of the following is a union security arrangement that requires a person to pay union dues, but is not required to join the union?

agency shop

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

According to the FLSA, which individual is most likely a nonexempt employee?

an hourly paid production line employee

The differential piece rate system refers to

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

What depicts the most complex bargaining structure in collective bargaining?

an industrial union representing all hourly employees of several companies

Which description best defines an international organization?

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

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

balance sheet approach

In collective bargaining, the term ________ refers to the range of employees and employers covered by the contract.

bargaining structure

What is the result of combining more assignments into a single layer, thus giving managers more flexibility in making assignments and awarding pay increases?

broad bands

A Pay Policy Line

can be generated using a statistical method called regression analysis.

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

masculine traits.

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

third-country national

What is a disadvantage of a merit pay system?

It can quickly become expensive for the company.

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

It encourages the salesperson to focus on closing the sale.

What is an advantage of a two-tier wage system?

It helps reduce labor costs without cutting employees' existing salaries.

What is a disadvantage of skill-based pay systems?

It may result in paying employees for skills they don't use.

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. Keith, one of the line workers, believes that his supervisor is unfairly passing him over when selecting employees to earn extra pay by working overtime. Keith wants to file a grievance according to the process in the labor agreement, but he is not a member of the union. What must the union do in this situation?

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

What is true of short-term disability insurance?

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

What is true about disability insurance?

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

Which statement is true of a performance bonus?

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

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.

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

Merit pay

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

keeping operations flexible and retaining some control over schedules

Antonio, a new supervisor at Fresh Food 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, Antonio is receiving training on

labor relations.

In the U.S., the amount of sick leave given to employees is often based on

length of service.

Assuming an organization wants to motivate employees through promotions, and assuming enough opportunities for promotions are available, the organization would want to

limit the overlap from one pay range to the next.

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

the Taft-Hartley Act

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.

Ty earns a base rate of $12 an hour and receives a weekly attendance award of $20. He works 40 hours this week. What would be his total compensation for the week?

$500

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

Rashana is a human resource specialist at Piper Co., a business consulting company. To support human resource planning, Rashana monitors trends in the Consumer Price Index. In recent months, the CPI has been rising at an increasing rate. What can Rashana predict based on this information?

A rising cost of living will lead workers in the labor market to seek higher pay.

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.

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

Brenda possesses the motivation to succeed and is achievement-oriented.

Connor and McKenzie hold the same position at Delta Inc. However, Connor earns more than McKenzie. Which statement justifies the organization's decision to pay Connor more than McKenzie?

Connor meets higher productivity targets than McKenzie.

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 Luke, the director of human resources, to file an appeal in the state courts. Luke says doing so would be a wasted expense. Which statement best supports Luke's conclusion?

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.

Differential piece rate

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

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

What is a requirement set for employers under the Financial Accounting Standards Board standards?

Employers must set aside the funds they expect to need for benefits to be paid after retirement.

Willow Producers is a manufacturing company based in Iowa. The employees of Willow Products are paid the lowest amount under federal or state law, which is stated as an amount of pay per hour. Which law is the organization abiding by in this scenario?

Fair Labor Standards Act (FLSA) of minimum wage

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

Yang, 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 Yang to say she has been called up for jury duty and needs to be away next week. What should Yang do?

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

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

He will receive benefits at a permanently reduced level.

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

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

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

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

Which statement is true about skill-based pay?

Skill-based pay does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures.

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

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

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?

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

Identify a true statement about international labor relations.

The day-to-day decisions about labor relations are usually handled by each foreign subsidiary in companies that operate across borders.

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

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

What is a drawback of setting pay rates based strictly on a pay policy line?

The estimated pay for a job may not reflect conditions in the labor market.

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

The facility is automating the process of answering routine questions.

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

corporate campaigns

While training and developing a global workforce, what is a challenge that an organization is most likely to face?

creating a comprehensive training program for employees from different cultures

Tucked Inc. is an envelope manufacturer based in Fort Worth. 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 Tucked Inc.?

differential piecework rate

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.

Pay policies are one of the most important human resource tools for

encouraging desired employee behaviors.

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.

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

feminine

Which incentive plans are specifically designed to promote group performance?

gainsharing

A feature of an effective incentive pay plan is that it should

have performance measures linked to the organization's goals.

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

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

incentive pay

Which of the following best describes profit sharing?

incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary

Britney, a heavy equipment operator, Kristin, an operating engineer, and Sam, 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, Britney, Kristin, and Sam most likely belong to a(n) ________ union.

industrial

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

inform employees that they may consult with a lawyer before signing

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

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

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

is long-term oriented.

Ring Associates, an insurance company, defines the difference in pay between an entry-level recruiter and an entry-level assembler, as well as the difference between an entry-level recruiter, an HR manager, and the vice president of the human resource department. What is being exemplified in this scenario?

job structure

Identify the law that regulates unions' actions with reference to their members, including financial disclosure and the conduct of elections.

the Landrum-Griffin Act

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

mediator.

Dino Corp. is a start-up located in Orlando. It offers highly beneficial pension plans to its employees. Which category of employees is the company most likely to attract through its pension benefits?

older people

Bargaining over a new union contract typically occurs

only about every three years.

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

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

parent; third

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

Overlapping ________ give the organization more flexibility in transferring employees among jobs, because transfers need not always involve a change in pay.

pay ranges

Jewels & Co., a watch manufacturing company, provides wages to its employees based on the number of watches the workers assemble. The more the employees assemble, the more they earn. This type of plan is called a

piecework rate plan.

Organizations under pressure to cut labor costs may respond by

postponing hiring decisions.

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

profit sharing

If a company distributes stock to employees by granting stock options, employees exercise the option when they

purchase the stock.

During which phase does an employee returning from a foreign assignment experience culture shock in reverse?

repatriation

Appropriate behavior in Ghana includes

repaying obligations.

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

shifting from traditional health insurance plans to PPOs and CDHPs

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

short-term incentives

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

teaching employees about the value of their benefits

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

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

validation

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

validation.

In which condition is it an advantage when group incentives encourage competition between groups of employees?

when groups try to outdo one another in satisfying customers