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32. The many kinds of incentive pay fall into three broad categories: _____. A. incentives linked to individual, group, or organizational performance B. incentives linked to output, productivity, or quality of a product C. pay linked to goals, focus, or achievements of an organization D. pay related to base salary, bonus, and travel allowance E. incentives obtained in the form of company shares, gift coupons, and trial products

33. Which of the following types of incentive plans are used to reward individual performance? A. gainsharing B. merit pay C. Scanlon plan D. profit sharing E. stock ownership

34. Jules & Co., a smartphone manufacturing company, provides wages to its employees based on the number of smartphones the workers assemble. The more the employees assemble, the more they earn. This type of plan is called a A. piecework rate plan. B. merit pay plan. C. Scanlon plan. D. profit-sharing plan. E. rapid hour plan.

35. As an incentive to work efficiently, some organizations pay production workers _____, a wage based on the amount they produce. A. merit pay B. a sales commission C. standard hour pay D. a piecework rate E. a special bonus

36. Wayan Inc., a health insurance company, pays clerks an incentive based on the average amount of work completed per hour. Wayan pays $10 for processing 20 invoices per hour. An employee who processes 30 invoices would earn $15 per hour. Hence, Wayan 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? A. straight piecework plan B. falling differential C. rising differential D. standard hour plan E. straight commission plan

37. An employee at CellWorks who produces 10 components in an hour earns $9 ($.90 × 10) per hour, while another employee who produces 15 components earns $13.50 ($.90 × 15). This is an example of a A. commission plan. B. differential piece rate plan. C. direct commission plan. D. profit-sharing plan. E. straight piecework plan.

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

40. Token Inc. is an envelope manufacturer based in Dallas. 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 of the following incentives is offered by Token Inc.? A. differential piecework rate B. minimum wage C. merit pay D. retention bonus E. group bonus

41. Which of the following statements is true about a piecework rate plan? A. It can be used for all types of jobs and in all types of industries. B. It is best suited for complex jobs and tasks. C. It can be used to encourage teamwork and collaboration. D. It has a direct link between the work done by the employee and the amount earned. E. It encourages the employee's peers to perform and reduces conflicts.

43. A piecework rate plan is best suited for A. HR professionals. B. executives. C. production workers. D. managers. E. knowledge workers.

44. Jeff 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, Jeff is using a A. standard hour plan. B. differential piecework plan. C. merit pay plan. D. straight piecework plan. E. Scanlon plan.

100. Electrix Inc. is an electrical appliances manufacturing company. It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf. Which of the following has been implemented by Electrix in this scenario? A. Scanlon plan B. balanced scorecard C. piecework stock plan D. employee stock ownership plan E. differential piece stock plan

101. By law, what is the minimum percentage of assets that an ESOP must invest in its company's stock? A. 10 B. 26 C. 51 D. 60 E. 76

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

45. Jupiter 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 of the following payment methods does this scenario illustrate? A. piecework plan B. differential plan C. standard hour plan D. merit pay E. performance bonus

46. Which of the following statements is true about standard hour plans? A. They encourage employees to focus exclusively on customer service. B. They succeed only for employees who are not motivated by money. C. They encourage employees to focus mainly on quality. D. In terms of their pros and cons, they are very different from piecework plans. E. They encourage employees to work as fast as they can.

47. Which of the following is a drawback of a standard hour plan? A. It does not focus on quality or customer service. B. It escalates costs for an employer in the long term. C. It is applicable only in team-based work environments. D. It helps employees work at a comfortable pace. E. It does not pay workers extra for work done in less than the standard time.

48. A standard hour incentive plan is likely to be successful if A. most or all of a salesperson's compensation is in the form of commissions. B. employers keep labor costs to a minimum. C. the pay increase is linked to ratings on performance appraisals. D. employees want the extra money more than they want to work at a pace that feels comfortable. E. the organization values employee satisfaction, product quality, and customer service more than profits.

49. An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as _____. A. commissions B. the Scanlon plan C. merit pay D. gainsharing E. profit sharing

50. The primary function of a merit increase grid is to A. make pay increases consistent. B. further increase the pay of those whose pay is relatively higher for their job. C. increase the employees' compa-ratios. D. stabilize economic conditions. E. increase incentives on a year-by-year basis.

51. Julianna, the HR manager at Hudson 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, Julianna would be applying the system of A. merit pay. B. piecework pay. C. standard hour pay. D. commissions. E. attendance bonus.

53. To make merit increases consistent, administrators of merit pay programs must closely monitor the compa-ratio and the A. number of grades in the pay structure. B. individual's performance ratings. C. number of new hires in the company. D. company's stock price in the current financial year. E. average pay of the area where the organization is based.

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

55. A _____ gives the biggest pay increases to the best performers and to those whose pay is relatively low for their job. A. piecework pay system B. merit pay system C. standard hour plan D. differential plan E. skill-based plan

56. Songreen Inc., a firm that manufactures ready-to-eat soups, offers incentives based on an employee's performance rating and the employee's compa-ratio. Which of the following payment plans is exemplified in this scenario? A. piecework plan B. merit pay C. standard hour plan D. differential plan E. skill-based plan

57. Which of the following is an advantage of the merit pay incentive system? A. It makes the reward more valuable by relating it to economic conditions. B. It promotes group performance instead of promoting individual behavior. C. It provides merit increases to employees solely on the basis of performance. D. It is the most economical incentive system for the employers. E. It provides a direct link between the work done by the employee and the amount earned.

58. _____ provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system. A. Differential piece rate B. Standard hour plan C. Merit pay D. Piece rate E. Commission

59. Which of the following is a disadvantage of a merit pay system? A. It does not relate the rewards to economic conditions. B. It cannot be used effectively with performance appraisals. C. Comparative pay is not considered in its evaluation. D. It does not provide rewards for performance in all the dimensions measured in the organization's performance management system. E. It can quickly become expensive for the company.

60. Which of the following statements is true of a performance bonus? A. It is designed to reward group performance. B. It should be re-earned by employees during each performance period. C. It is rolled into base pay and provided yearly or monthly. D. It lacks flexibility and hence it is less popular. E. It is exclusively linked to subjective ratings, rather than objective performance measures.

62. When Greater Aircraft acquired Middling Aircraft, the executives of the two companies identified key employees they needed for the combined companies' success. One of them was Michael, the vice president of engineering. The executives offered Michael a one-time bonus of $25,000 if he stayed with Greater Middling for 12 months following the acquisition. In this scenario, Michael's the $25,000 represents _____. A. a commission B. a retention bonus C. stock options D. merit pay E. a differential piece rate

63. When an employee's pay is calculated as a percentage of sales, it is referred to as A. commissions. B. gainsharing. C. a merit plan. D. a variable wage plan. E. profit sharing.

64. Straight commission plans are plans which A. provide a straight salary to employees. B. are useful when the organization wants salespeople to concentrate on listening to customers. C. help to attract risk-averse employees. D. are common among insurance and real estate agents. E. are uncommon among car salespeople.

66. Which of the following incentive plans are specifically designed to promote group performance? A. performance bonuses B. gainsharing C. standard hour plans D. merit pay E. commissions

67. QVO Financial, an auditing 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% of the improvement is the company's share. The other 40% is distributed among the employees in the company. Which of the following is being exemplified in this scenario? A. profit rate B. gainsharing C. commission sharing D. merit gain E. group bonus

68. Organizations that want employees to focus on efficiency and on group incentives are most likely to implement a _____ program. A. gainsharing B. standard hour C. bonus D. commission E. piece rate pay

69. _____ is a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees. A. Profit rate B. Gainsharing C. Commission sharing D. Merit rate E. Group bonus

70. Which of the following incentive programs measures improvements in productivity and effectiveness and distributes a portion of the earnings to all employees? A. merit pay B. team award C. commission D. standard hour plans E. gainsharing

71. Brendan, the HR manager at Baretta & Co., is trying to implement an effective group incentive plan which measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees. In this case, Brendan should apply the incentive scheme of _____. A. piecework rate B. gainsharing C. sales commission D. merit pay E. ESOPs

72. East Bay Hospital 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? A. With gainsharing, employees are freed to collaborate on how to improve performance. B. Gainsharing creates a competitive environment, so employees will try to outdo one another. C. Gainsharing is appropriate because the jobs in this case are simple, and so are the performance standards. D. Gainsharing will narrow employees' focus to the key aspects of their individual jobs and rewards. E. The success of gainsharing requires management acceptance of employee input.

73. For five years, Speed-All Production Systems 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, 23 employees earned the bonus, but last year, only 7 submitted ideas, and only two 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 of the following statements best supports this argument? A. Gainsharing succeeds regardless of whether employees understand how performance is measured. B. Gainsharing is likely to succeed under almost any organizational conditions. C. Gainsharing broadens employees' horizons beyond the range of activities they can influence. D. Gainsharing measures oversimplify the complex responsibilities of production work. E. Gainsharing expands employees' thinking beyond their individual interests.

74. Which of the following is a common condition for gainsharing to be a success in an organization? A. employees who value working in groups B. employers who do not set short-term goals for employees C. work environment with minimum management commitment D. employees who prefer minimum interaction and cooperation E. low levels of cooperation and interaction

75. The CEO of Logiworks asked the human resource manager, April, to propose an approach to incentive pay. April proposes that the company create a gainsharing plan. What action(s) by the company will best increase the likelihood that gainsharing will succeed? A. hiring employees who prefer to work alone and equipping them with cost data B. sharing data about costs and setting up time for employees to interact C. indicating that failure to achieve goals will lead to job cuts D. using incentive pay as a substitute for goal setting and performance standards E. promoting continuous improvement and limiting time spent on personal interactions

76. Developed in the 1930s, the Scanlon plan is a variation of a(n) A. profit-sharing plan. B. gainsharing plan. C. merit pay plan. D. individual bonus. E. commission plan.

77. 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 A. a group bonus. B. merit pay. C. the Scanlon plan. D. a piecework rate. E. a team award.

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

79. The Rudd-Mitchell organization uses the Scanlon plan to provide incentives to its employees. The workers produce electrical components worth $5 million. The target ratio set by the organization is 30%. The employees will be given a bonus if the actual labor costs are less than A. $0.5 million. B. $1 million. C. $1.5 million. D. $2 million. E. $2.5 million.

83. In which of the following conditions is an advantage when group incentives encourage competition between groups of employees? A. when concern for costs obscures customer service B. when groups try to outdo one another in satisfying customers C. when competition replaces cooperation to meet company goals D. when competition for sales obscures the importance of ethical behavior E. when performance goals consider only one objective, such as sales growth

85. Which of the following is an organization-level incentive plan that is intended to motivate employees to align their activities with the organization's goals? A. profit sharing B. gainsharing C. merit pay D. group bonus E. Scanlon plan

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

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

82. Which of the following is a disadvantage of using group bonuses? A. Physical outputs are not rewarded. B. It reduces the level of cooperation between the members of the group. C. The performance measures used are narrow. D. It could result in competition among groups. E. It cannot be used to promote specific goals.

26. A pay structure specifically designed to energize, direct, or control employees' behavior is known as A. monthly salary. B. wage. C. incentive pay. D. annual salary. E. fixed pay.

26. 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 _____. A. partnerships B. bureaus C. trade associations D. labor unions E. Interest groups

26. Which of the following agreements have been adopted by Canada, Mexico, and the United States to encourage trade between the three countries? A. CSN B. NAFTA C. PICTA D. APEC E. TAFTA

26. Which of the following benefits provided by employer is required by law in the United States? A. paid vacation B. personal leave C. flextime D. Social Security contributions E. retirement savings plan

26. Which of the following will most likely be a result of using an unplanned approach, in which each employee's pay is independently negotiated? A. dissatisfied employees B. equal pay distribution C. rates that are stable D. easy employment E. cost control

33. Identify the statement that characterizes an industrial union. A. All the members are in the same occupation. B. Union leaders try to limit the number of members in order to maintain high wages. C. Members are linked by their work in a particular industry. D. Members change employers more frequently than in other types of unions. E. It is often responsible for training its members through apprenticeships.

33. Mark and Chloe hold the same position at Rue & West Bros. However, Mark earns more than Chloe. Which of the following will justify the organization's decision to pay Mark more than Chloe? A. Mark meets higher productivity targets than Chloe. B. Mark comes from an economically weaker background. C. Mark is male. D. Chloe is younger than Mark. E. Chloe is not a U.S. citizen.

40. Under the Family and Medical Leave Act, which of the following criteria makes employees eligible to take unpaid family leave? A. They should be working for an organization with 50 or more employees within a 75-mile radius. B. They should have worked at least 15 hours per week. C. They should have worked for the employer for more than 5 years. D. They should belong to the top 10 percent of highest paid executives. E. They should be working for an organization with at least 100 employees.

52. David is a non-union employee at Orion 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. Which of the following does this scenario best exemplify? A. an agency shop agreement B. a checkoff provision C. a union shop agreement D. a trade-off provision E. a closed shop agreement

57. The _____ of a country's labor force affect how and the extent to which foreign companies want to operate there. A. population B. HR practices C. education and skill levels D. cultural differences E. collectivism and potential for unionization

58. The Walsh-Healy Public Contracts Act of 1936 A. requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. B. mandates that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week. C. covers construction contractors that receive more than $2,000 in federal money. D. requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the prevailing local wage rates. E. covers all government contractors receiving $10,000 or more in federal funds.

58. Which of the following factors is considered while calculating the retirement benefit levels under a defined benefit retirement plan? A. the state where the person was employed during the retirement year B. number of dependents C. employees' years of service, age, and earnings level D. average earning during the last 20 years of employment E. number of unused leaves at the end of the retirement year

58. Which of the following is a federal law passed in 1935 that supports collective bargaining and sets out the rights of employees to form unions? A. The Landrum-Griffin Act B. The Civil Rights Act C. The Wagner Act D. The Taft-Hartley Act E. The Sarbanes-Oxley Act

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

33. Which of the following terms would accurately describe an individual who was born in the United States and is currently working in Germany for a company headquartered in China? A. parent-country national B. host-country national C. third-country national D. home-country national E. guest-country national

34. A beverage company headquartered in Miami selects a Brazilian manager to run its Mexican operations. In this example, the Brazilian manager is a A. parent-country national. B. host-country national. C. third-country national. D. home-country national. E. first-country national.

34. Britt, a heavy equipment operator, Sara, an operating engineer, and Nick, 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, Britt, Sara, and Nick most likely belong to a(n) _____ union. A. international B. industrial C. stewards D. checkoff E. craft

34. Marshall finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. In this case, which of the following is true? A. he will receive full retirement benefits B. he will receive retirement benefits only according to his earnings history C. he will not be eligible for worker's compensation D. he will receive benefits at a permanently reduced level E. his exempt amount limits will be lifted

34. Ramon Inc., a software company, uses job evaluations to establish the value of its jobs in terms of criteria such as their difficulty and their importance to the organization. The company then compares the evaluation points awarded to each job with the pay for each job. If jobs have the same number of evaluation points, but are not paid equally, the pay of the lower-paid job is raised. Based on the scenario, identify the policy adopted by the company. A. comparable-worth policy B. minimum wage policy C. average pay policy D. merit pay policy E. piecework rate policy

35. 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. A. parent; third B. expatriate; host C. host; guest D. third; first E. parent; host

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

35. Two management students, Frank and Neil, discuss the pros and cons of employee benefits. Frank states that unemployment insurance is more advantageous to employees than it is to employers, while Neil argues that employers receive more rewards from it. Which of the following weakens Neil's argument? A. Unemployment insurance provides employers a competitive advantage in the talent market. B. The amount of an employer's unemployment insurance tax depends on the number of employees. C. Federal and state taxes paid by employers fund most of unemployment insurance. D. Unemployment insurance does not provide assistance to unemployed workers looking for new jobs. E. Unemployment insurance does not include payment to offset lost income during voluntary unemployment.

35. Which of the following sentences best describes a situation that comparable-worth policies were designed to address? A. In a manufacturing company, there are no female managers. B. A consumer products company has been sued for racial discrimination. C. An agency works with a supermarket's HR department to design a job that could be held by people with mental disabilities. D. In a city government, positions mostly held by women pay less than positions mostly held by men. E. At a utility company, jobs that involve physical strain and danger pay more than office jobs.

36. James, an American who works for a U.S.-based company, has been sent to England for a work assignment. James would be known as a(n) A. expatriate. B. repatriate. C. host-country national. D. third-country national. E. guest-country national.

36. Most national unions in the United States are linked with the _____, an association that pursues to improve the shared interests of its member unions at the national level. A. National Labor Relations Act (NLRA) B. Society of Modern Trade Workers and the Trade Federation of the States (SMTW-TFS) C. American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) D. Chamber of Commerce (CoC) E. National Association of Manufacturers (NAM)

36. Teno Industries Inc. is a manufacturing company based in Texas. In the year after Teno Industries implemented a comparable-worth policy, its expenses increased, and as a result, profits declined. What difficulty of comparable-worth policies does this example illustrate? A. The employer is at an economic disadvantage because of increased pay for some jobs. B. The policy overlooks the undervalued work performed by women. C. The policy uses job enrichment to establish a pay structure based on market rates. D. The employer ignores the evaluation points for each job. E. Employees in lower-paid jobs are encouraged to meet the goal of comparable worth.

39. Scorla Automobiles is a manufacturing company based in Nevada. The employees of Scorla are paid the lowest amount under federal or state law, which is stated as an amount of pay per hour. Which of the following laws is the organization abiding by in this scenario? A. laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) of minimum wage C. Fair Labor Standards Act (FLSA) of overtime D. laws governing prevailing wages E. product market laws

39. Which of the following is the usual way in which companies first enter foreign markets? A. importing B. offshoring C. exporting D. outsourcing E. relocating

40. Pentrall, a healthcare company, provides a lower training rate to its employees belonging to the age group of 18 to 19 years. The rate is applicable for a period of 90 days. In this case, which of the following laws will justify the organization's decision to pay the lower pay? A. laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) provisions for minimum wage C. Fair Labor Standards Act (FLSA) provisions for overtime D. laws governing prevailing wages E. Fair Labor Standards Act (FLSA) provisions for child labor

61. Identify an advantage of having wide latitude in reducing a company workforce. A. It gives employers the option of hiring for peak needs and laying off employees if needs decline. B. It helps in protecting workers' jobs. C. It helps employees adjust to a new culture. D. It allows workers to keep more of their earnings regardless of the taxes they pay. E. It gives employees the advantage of accumulating many years of work experience in an organization.

66. Steve is a human resource manager at an advertising firm. Steve proposes that the company adopt defined-benefit plans to attract and retain its employees. In which situation will this benefit be most valuable to the firm's employees? A. all the employees are under the age of 30 B. the nature of work demands college graduates C. the firm employs experienced, older people D. the firm employs young and creative minds E. the firm mainly employs freelancers

67. Economic theory holds that the most profitable pay level, all things being equal, would be at the _____. A. lowest possible level B. market rate C. highest possible level D. mid-range level E. CPI rate

76. House Factory Inc. 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? A. stipulation election B. decertification election C. union election D. agreement election E. consent election

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

82. Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called A. preferred provider plans. B. cafeteria-style plans. C. defined-benefit plans. D. flexible spending accounts. E. cash balance plans.

82. Identify a true statement about decisions related to the global compensation strategy. A. They affect a company's costs and abilities to compete. B. They focus more on flexibility than on fairness to account for differences across cultures. C. They are made on the basis of the cost of living in the home country. D. They do not compare wages across countries. E. They are not determined by labor costs.

82. The hourly employees at BigHeart Health System have become dissatisfied with their union. They find that management communicates more 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? A. They may negotiate for a neutrality provision to neutralize the union's authority. B. They must accept the union, because they voted for representation in a lawful manner. C. They can request an immediate decertification election. D. They can call for a decertification election to take place when their contract term ends. E. They can request that their union representative terminate the union contract.

82. Which of the following is a drawback of setting pay rates based strictly on a pay policy line? A. It increases the administrative burden of managing the compensation system. B. Employees have difficulty interpreting regression analysis. C. The estimated pay for a job may not reflect conditions in the labor market. D. It increases the costs of surveying the market. E. It groups jobs, which will result in rates of pay for individual jobs that precisely match the levels specified by the market.

83. Kazuri Inc., a manufacturing company, bases employees' pay entirely on market forces. In this case, which of the following is a practical drawback faced by the company? A. Employees might conclude that the pay rates are unfair. B. Supervisors of the company will expect to receive lower pay because of less responsibility. C. The highly paid employees will likely be dissatisfied because of more work. D. The managers will participate in rotation of responsibilities because they receive lower pay. E. All employees will be categorized as exempt employees.

83. Representatives of management at Eternal Steel and of the union representing its workers are preparing to negotiate contract provisions related to job security. Which of the following topics are most likely to be included in this round of contract negotiations? A. work rules, rest periods, and hours of work B. health insurance, pension plans, and bonuses C. application of rules to apprentices and employees who are veterans D. training programs, transfer arrangements, and relocation allowances E. grievance procedures, job classifications, and production standards

83. The founder of Rainbow Fine China wants to open its second facility to produce housewares in the United States. However, the finance manager suggests an overseas location would help the company remain competitive, because labor costs are lower in many other countries. To arrive at the decision that will best promote Rainbow's ability to compete, what other HR factors, if any, should the company consider? A. access to resources in each possible location B. differences in transportation costs from factories to customers C. no other factors, because costs determine competitiveness D. differences in workforces' education levels and languages E. differences in workforces' education, skill, and productivity

83. Which of the following is an advantage of cafeteria-style plans? A. Employees do not have to select their individual plans. B. Employees can get a better understanding of the value of benefits provided. C. These types of plans have lower administrative costs. D. Since employees will select the benefits that they need the most, it reduces the overall costs. E. When companies provide cafeteria-style plans, they do not have to pay unemployment insurance tax.

84. Collective bargaining differs from one situation to another in terms of _____. A. bargaining provisions B. bargaining structure C. bargaining campaigns D. bargaining strategies E. bargaining techniques

84. Identify a true statement about employee benefits. A. In both the United States and Europe, the awarding of stock options is linked to specific performance goals. B. Pension plans are more widespread in the United States and Japan than in Western Europe. C. Unlike in the United States, compensation plans in other countries are less likely to include benefits. D. Paid vacation tends to be more generous in Western Europe than in the United States. E. Although stock options became a common form of incentive pay in Europe during the 1990s, American businesses did not begin to adopt them until the end of that decade.

84. Ravi 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. Jess, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Ravi doing so? A. He will save time by using software packages to offer benefits packages. B. He will avoid the cost of providing employees with benefits they don't value. C. Having a non-standardized plan will make Ravi's company seem cutting-edge. D. Employees of the company, including Ravi, will be given more vacation days. E. Costs will be easy to estimate since all benefits options will be taken into consideration.

84. Which of the following is a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job? A. pay grade B. pay range C. pay differential D. compa-ratio E. compensation differential

84. _____ 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. A. Merit pay B. Gainsharing C. Group bonus D. Profit sharing E. Commission

85. In collective bargaining, the term _____ refers to the range of employees and employers covered by the contract. A. arbitrated team B. bargaining structure C. union leverage D. differentiated group E. associate mediation

85. Jim 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. Which of the following is Jim likely to do to lower costs at the initial stage? A. opt for communication methods that do not stress the value of each benefit B. avoid standardized plans available for employers opting for cafeteria-style benefits C. use software packages to design the plan D. discourage employees from choosing lower-cost options E. encourage employees to choose benefits they need the most

85. Pay ranges are most common for _____. A. white-collar jobs B. piece-rate jobs C. jobs that are covered by union contracts D. automotive workers E. construction workers

85. Weeble Brass, a maker of musical instruments based in Akron, Ohio, is preparing to open a branch office in Paris. Its benefits package in the United States includes the benefits most commonly offered in this country. What additional benefits are the French employees likely to expect? A. two weeks of paid vacation and national health insurance B. unpaid family leave and paid vacation time C. health insurance and unpaid maternity leave D. pensions and flexible work schedules E. pensions and more paid vacation time

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

99. Kim, a civil engineer, was sent by her firm to Kuwait on a temporary assignment. After completing her project within the given span of six months, Kim approaches the HR department of her firm to arrange for her return. The HR department is likely to prepare for Kim's _____ as the first task. A. expatriation B. validation C. repatriation D. culture shock E. overseas assignment

99. Which of the following is a disadvantage of skill-based pay systems? A. It makes organizations inflexible. B. It reduces employee empowerment. C. It may result in paying employees for skills they don't use. D. It reduces opportunities for promoting employees. E. It limits the number of pay levels by delayering.

61. Identify the unfair labor practice under Section 8(a) of the National Labor Relations Act (NLRA). A. engaging in collective bargaining with a labor organization B. asking to meet with employees' representatives because the employees are on strike C. failing to pay unionized employees higher wages than nonunionized employees D. complementing performance-based pay plans in the company E. restraining employees in exercising their rights to join or assist a labor organization

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

61. Which of the following is an example of a defined-contribution pension plan? A. consumer-driven pension plan B. money purchase plan C. cost-sharing plan D. flexible spending account plan E. unfunded PBGC plan

62. Ian is the human resource manager of a one-year-old technology company. The founder wants him to set up a retirement plan. Ian 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 Ian's idea? A. The plan makes employees part-owners of the company. B. The Pension Benefit Guarantee Corporation will guarantee a basic benefit. C. Employees can buy an annuity with the contributions when they retire. D. The amount employees contribute is not taxed when they contribute it. E. Contributing a share of profits gives the company more flexibility as it establishes itself.

62. Organizations under pressure to cut labor costs may respond by A. retaining staff levels. B. providing pay increases to prevent employee turnover. C. postponing hiring decisions. D. requiring employees to bear less of the cost of benefits such as insurance premiums. E. avoiding automation of routine tasks.

62. U.S.-based GlitterMe introduced a line of accessories that have been very popular in France, leading the company to want to open a distribution facility there. The marketing manager is optimistic and wants to scale up fast, but the HR manager advises proceeding with caution. What difference between the countries best explains the HR manager's advice? A. If the company replaces French workers in the future, they will have to develop new skills. B. HR planning addresses hiring but cannot prepare the company for a possible slowdown. C. French companies are developing computer systems to automate distribution facilities. D. French laws encourage layoffs when business slows, which is bad for morale. E. U.S. laws give employers wide latitude for workforce reductions, but French laws do not.

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

65. Which of the following organizations benefits when switching from a defined-benefit plan to cash balance plans? A. organizations with many experienced employees B. organizations with a few skilled employees C. organizations with many young employees D. organizations with many retired employees E. organizations with highly skilled, young employees

65. Which of the following statements is true about the Consumer Price Index (CPI)? A. The CPI helps organizations in the product markets decide an upper limit on the pay they will offer. B. Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market. C. The CPI helps organizations lure top-quality employees. D. The CPI helps control labor markets' demand for pay increases. E. The CPI helps organizations to compete with companies in other industries that hire similar employees.

66. 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 A. minimum and maximum wages fixed by the government. B. pay of federal contractors. C. organization's competitive environment. D. quality of employees. E. organization's global reputation.

66. Betty, an American, works for an automobile manufacturer in New Jersey. Her manager, Ruth, sends her on an overseas assignment to handle operations at the company's newly acquired plant in Japan. Which of the following, if true, could have most likely led to Betty being chosen for the assignment? A. Betty lacks tolerance to ambiguity and resists change B. Betty prefers to work in a less challenging work environment C. Betty works best with those from feminine cultures with low power distance D. Betty is insensitive to differences in cultures and norms E. Betty possesses the motivation to succeed and is achievement-oriented

66. Identify the law that regulates unions' actions with reference to their members, including financial disclosure and the conduct of elections. A. the Hatch Act B. the Taft-Hartley Act C. the Landrum-Griffin Act D. the Civil Service Reform Act E. the Maguire Act

99. Which of the following is a requirement set for employers under the Financial Accounting Standards Board standards? A. Employers must fund benefits on a pay-as-you-go basis. B. Benefits must not appear as future cost obligations. C. Employers should encourage employees to participate in management functions. D. Financial statements should be made in such a way that outsiders cannot understand them. E. Employers must set aside the funds they expect to need for benefits to be paid after retirement.

99. 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? A. stock options B. employee stock ownership plan C. Scanlon plan D. collective stock options E. profit-sharing plan

100. 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 Scott, the director of human resources, to file an appeal in the state courts. Scott says doing so would be a wasted expense. Which of the following statements best supports Scott's conclusion? A. The company should have considered whether the grievance procedure is fair. B. The majority of grievances are settled during the early stages of the process. C. Courts generally do not have the authority to rule on employment matters. D. Courts generally avoid reviewing arbitrators' decisions in these matters. E. Courts generally rule against businesses in employment matters.

100. Communication and _____ are the activities used by companies in the process of helping employees repatriate. A. validation B. equalization C. dissolution D. resolution E. exclusion

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

100. Which of the following statements is true about skill-based pay? A. Skill-based pay provides a way to ensure that employees can use their new skills. B. Gathering market data about skill-based pay is easy. C. Skill-based pay ensures that the employer pays the employee for learning skills that benefit the employer. D. Skill-based pay does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures. E. Skill-based pay does not require records related to skills, training, and knowledge acquired.

101. 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. Joel, one of the line workers, believes that his supervisor is unfairly passing him over when selecting employees to earn extra pay by working overtime. Joel 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? A. It must let Joel join the union so he can have representation in the process. B. It must allow Joel to use the process it negotiated, but it need not send representatives. C. It has no obligations in this process, because Joel chose not to be represented. D. It must give Joel representation equal to what a union member would receive. E. It must give Joel a copy of the labor agreement, but it need not be involved in the process.

101. Compa-ratio A. is defined as the ratio of average pay to the midpoint of the pay range. B. is defined as the ratio of the average pay for the grade divided by the minimum pay for the grade. C. can range from 0 to 100 percent. D. uses data from market-pay surveys. E. measures the degree to which new skills learnt are consistent with the increases in pay.

101. To help Pedro, an expatriate, prepare for his eventual return home, his employer sends him information that will help him recognize the changes have been happening at home. What type of repatriation support is this? A. validation B. equalization C. communication D. resolution E. rationalization

101. Which of the following is true of employee benefits? A. Employees have a thorough understanding of what benefits they have and what the market value of these benefits is. B. Employees have a hard time understanding the cost and value of their benefits. C. It is up to employees to determine the cost and value of their benefits. D. Employees, for the most part, are just not interested in their benefits. E. Employers have very limited options for communicating information about benefits.

102. Dan 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 Dan's service can be best described as a form of _____. A. expatriation B. validation C. accreditation D. cross-cultural preparation E. adjustment

102. Janet, a sales manager at Drexler Inc., claims that labor and management are rivals for most organizations. Carmella, the HR manager, says she is aware of exceptions. Which statement best supports Carmella's perspective? A. After the 1980s, most unions and organizations have acted more like adversaries. B. Examples of cooperation between labor and management include employee involvement in decision making and self-managing teams. C. Finding win-win solutions is almost impossible because unions and management have conflicting goals. D. Organizations often define jobs narrowly, which is a sign of cooperation. E. Creating a union necessarily forces employers to pay more wages, which results in loss of profits.

102. Perlis 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 Perlis most likely underpaying for human resources? A. shipping clerks: average salary of $22,000, range midpoint of $24,000 B. inventory clerks: average salary of $20,000, range midpoint of $30,000 C. order packers: average salary of $24,000, range midpoint of $22,000 D. purchasing agents: average salary of $30,000, range midpoint of $20,000 E. warehouse workers: average salary of $20,000, range midpoint of $20,000

102. Which of the following actions related to benefits can best give employers an advantage in the labor market? A. teaching employees about the value of their benefits B. limiting benefits to a few simple options C. explaining complex benefits with sophisticated language D. keeping messages about benefits basic and uncreative E. simplifying messages about benefits by delivering them through one medium

103. At Carbon Fine Inc., a maker of premium art pencils, the human resource department is evaluating its pay structure. A compensation specialist computes the compa-ratio of the designers and determines that it is 1.9. What problem is most likely to result from a compa-ratio of this size? A. The company may have difficulty keeping costs under control. B. The company may have difficulty attracting and keeping qualified employees. C. The company may be in violation of the Fair Labor Standards Act. D. The company may have misclassified these employees as exempt when they are nonexempt. E. The company may not have met minimum-wage requirements.

103. Martin, the HR vice president at Ace Trucking, evaluates responses from an employee survey and questions at the company's annual benefits presentation. He concludes that many employees are confused about their options for health insurance and often unhappy with the policy they choose. What should Martin do about this situation? A. accept that it is difficult for employees to understand the value of insurance B. save money by reducing printed messages about health insurance C. downplay the role of health insurance in the benefits package, relative to other benefits D. discontinue health insurance, since it is a source of dissatisfaction E. introduce software that will guide employees to the insurance option for their needs

103. Veronica, a vice president of human resources at an auto company, wants to develop its programs for employee empowerment. However, she is concerned because unions are heavily involved in representing auto workers and might object to empowerment programs. Which of the following statements about the National Labor Relations Board would best address Veronica's concern? A. The NLRB has issued statements indicating that it will not tolerate employee empowerment. B. In its rulings, the NLRB has allowed employee empowerment in certain very limited situations. C. The NLRB has issued rulings that say employee empowerment is allowed only in a nonunion environment. D. In its rulings, the NLRB has shown clear support for employee involvement in decision making. E. The NLRB makes it an unfair labor practice to form employee participation committees to make decisions.

103. Which of the following activities involves giving the expatriate recognition for the overseas service when the person returns home? A. resolution B. dissolution C. rationalization D. communication E. validation

104. Dynamo Dynamics is opening an overseas office for the first time and is sending its best sales manager to oversee the start-up for two years. Ray, Dynamo's human resource manager, is preparing cross-cultural training for the sales manager. A colleague suggests to Ray that he include the manager's husband in the training. Should Ray follow the advice of his colleague? A. No, train only the employee because the employee is the only one going on the assignment. B. No, train only the employee because including the spouse adds to costs but not benefits. C. Yes, the husband should be included because not doing so could be seen as sex discrimination. D. Yes, the husband should be included because doing so shows that the company values diversity. E. Yes, the husband should be included because the family's adjustment affects the success of an assignment.

104. Laura, HR manager at a tech company, is responsible for administering the company benefits program. The employee benefits package will undergo several significant changes at the start of the new year. Which of the following would be an effective strategy to share the changes with employees? A. issue a revised employee handbook to new employees B. mention the changes to a few employees and hope they spread the word C. say little about the changes D. ask the CEO to say a few words about the changes at the company holiday party E. set up Q&A sessions with each department to discuss the changes

104. The _____ requires employers to make jobs available to their workers when they return after fulfilling military duties for up to five years. A. Uniformed Services Employment and Reemployment Rights Act B. Fair Labor Standards Act C. Equal Employment Opportunity Act D. National Labor Relations Board E. Family and Medical Leave Act

104. The executives of BeeGood 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, Leslie, to plan a system of employee-manager meetings to address issues such as these. As Leslie considers this request, what potential problem should she keep in mind? A. Legal guidelines covering an employer-established system of representation are lengthy and precise. B. Workers tend to think representatives in an employer-established system cannot be counted on to stand up for them. C. It is statistically likely that most BeeGood workers are already represented by unions. D. It is possible that a management-established system of employee representation may violate the NLRA. E. Unions have never tried to organize BeeGood's workers, so they can easily make a case that the company organized workers illegally.

105. A chain of fried-fish 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, Gloria, 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 Gloria overlooking? A. self-managing employee teams, which could conduct an union organizing campaign B. management-established representation systems, which are endorsed by the NLRB C. the National Labor Relations Board, which could require the company to form a union D. worker centers, which could influence attitudes through publicity and community support E. arbitration panels, which could rule that fair labor conditions require a union

105. Bryan, an American, works for a company that manufactures electronics. His managers select him for an assignment to lead the launch of a new product line in Japan. Which of the following topics will be the most important in training to prepare him for the assignment? A. the advantages of U.S. culture B. marketing skills C. details about the new product line D. what to expect from Japanese culture E. how to determine the purchasing power of his salary in Japan

105. Executive pay has drawn public scrutiny in recent years. Which of the following statements best explains the reason? A. Top executives' pay is much higher than average workers' pay. B. Most of the top executives' pay is in the form of a salary. C. Top executives come under the category of exempt employees. D. Top executives are paid in the form of commissions. E. Executives are denied short-term or long-term incentives with their pay.

105. Gabriela, 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. Gabriela says it was. What is the most likely reason for Gabriela's opinion? A. It lowered the cost of communicating with employees, because now the company doesn't need to use printed media. B. It lowered the cost of providing benefits, because employees know what to sign up for. C. It increased employees' commitment to saving for retirement, so they won't need Social Security. D. It increased employees' happiness and job commitment, so they are more fun to be around. E. It increased employees' commitment and satisfaction, so they contribute more to the company.

122. Which of the following is a long-term incentive? A. sales commission B. group bonus C. merit pay D. stock option E. piece rate

126. How does linking executive pay to stock performance make unethical behavior tempting? A. Executives can use the advantage of knowing the company's inside information to buy or sell stock and create huge personal gains. B. Executives can roll in the stock price into their base pay to avoid paying a huge tax. C. Executives will lower the stock prices in order to enjoy bonuses. D. Executives can use the employee stock ownership plan to buy their company if it is experiencing financial problems. E. The executives can obtain as many shares as they need at a price that is much lower than the market rate.

27. Caroline, a researcher, believes that an organization needs to plan what they will pay employees in each job. Mark, her colleague, argues that an employee's pay should be independently negotiated. Which of the following statements will weaken Mark's argument? A. An unplanned approach will likely result in unfairness and dissatisfaction among the employees. B. Most of the employees prefer planned pay because negotiation with the management takes time. C. Independently negotiated pay will increase the workload and rivalry among the employees. D. When the pay is planned by the organization, it creates more employment opportunities. E. The pay structure is the same for both an entry-level and a manager-level employee if it has been independently negotiated.

27. John is the owner of the restaurant, The Round. He decides to increase employee motivation by introducing benefit packages. However, Nina, the manager, suggests that employees will be more motivated if John increases their actual wages. Which of the following statements, if true, strengthens Nina's argument? A. John's competitor, Mark, gives many benefits to his employees. B. The state has introduced mandatory requirements for employee benefits. C. Benefit packages are more difficult to understand by employees than pay structures. D. Most of the employees at The Round belong to the age group that looks forward to pensions. E. Employees do not prefer cash compensation due to higher tax rates in the state.

27. Organizations that are formed in order to represent their members' interests while dealing with employers are known as A. employee guilds. B. sororities. C. lobbies. D. member clubs. E. labor unions.

27. Peter, a British citizen, and Keith, a U.S. citizen, are employees of an electronics manufacturing company headquartered in London. While Peter works out of the London office, Keith operates out of the marketing unit in New York. Which of the following statements is true in this scenario? A. Peter is a host-country national. B. Peter is a parent-country national. C. Peter and Keith are expatriates. D. Keith is a third-country national. E. Keith is a home-country national.

28. Gerard is an Australian citizen and works at the headquarters of an Australian company. This would make him a(n) _____. A. host-country national B. expatriate C. governing-country national D. third-country national E. parent-country national

28. Max, a new supervisor at Freson 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, Max is receiving training on _____. A. checkoff provisions B. right-to-work laws C. maintenance of membership D. labor relations E. corporate campaigns

28. Steve, the vice president of Ocher Inc., plans to introduce a retirement plan for all employees. George, the operations director, disagrees because the proposed plan would increase the company's costs. Which of the following, if true, strengthens Steve's argument? A. Some benefits have become so common that today's employees expect them. B. Benefit packages are more complex than pay structures. C. The employees at Ocher are young adults who prefer cash compensation to benefits. D. Benefit packages do not affect the competitive nature of the labor market. E. The federal government does not have mandatory requirements for specific retirement plans.

28. Which of the following best defines an organization's job structure? A. It consists of the relative pay for different jobs within the organization. B. It is the average amount an organization pays for a particular job. C. It comprises the characteristics of jobs that the organization values and chooses to pay. D. It comprises regular pay, overtime pay, and bonuses. E. It refers to the standard amount that employers must pay under federal and state law.

29. A labor union in which all of the members have a particular skill or occupation is known as a(n) _____ union. A. common B. industrial C. craft D. regional E. employer's

29. FileTech, a company headquartered in the United States, opens an overseas facility in Ireland. In this scenario, the Irish facility is located in a A. host country. B. parent country. C. first country. D. third country. E. guest country.

29. Hamish Life, 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. Which of the following is being exemplified in this scenario? A. straight piecework plan B. job structure C. merit pay system D. pay differential E. balanced scorecard

29. On average, out of every dollar spent by a company on employee compensation, more than _____ cents goes to employee benefits. A. 75 B. 30 C. 50 D. 15 E. 20

30. Alonso, the union steward at Selzar 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 of the following levels of decisions is Alonso most likely concerned with in this scenario? A. forming labor relations strategies B. administering agreements C. negotiating contracts D. terminating contracts E. forming dissociation strategies

30. As Ray Inc., a shoe manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Tanya, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which of the following statements best supports Tanya's argument? A. Employees do not pay income taxes on most benefits they receive. B. Benefits are harder for employees to understand than pay structures. C. Employees could get a better deal if they bought their own insurance policies. D. Higher cash compensation gives employees more purchasing power. E. Different employees look for different types of benefits.

30. Sergio, a Spanish national, is an employee at a U.S. company. He works at the company's branch in Spain. This would imply that Sergio is a A. host-country national. B. parent-country national. C. first-country national. D. third-country national. E. guest-country national.

30. Which of the following elements establish an organization's pay structure? A. pay ranges and pay differentials B. cost control and equity C. legal requirements and job descriptions D. individual salaries of its employees E. job structure and pay level

31. 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) _____. A. craft union B. industrial union C. local union D. business union E. vertical union

31. Thomas, a South African, is employed by a pharmaceutical company whose headquarters are in Philadelphia. Thomas operates out of the firm's production facility in Cape Town, South Africa. Thomas is considered to be a(n) A. parent-country national. B. third-country national. C. host-country national. D. repatriate. E. expatriate.

31. Which of the following is an advantage of providing benefits instead of cash compensation? A. It is simpler to pay compensation in benefits than in cash. B. Benefits give greater control to employees over cash compensation. C. All companies that provide benefits become eligible for tax breaks by state and federal agencies. D. Younger employees place more importance on benefits than cash compensation. E. Employers can assemble creative benefits packages that give them a competitive advantage.

31. Which of the following statements is true of equal employment opportunity laws? A. These laws guarantee equal pay for whites and minorities. B. The goal of these laws is for employers to provide equal pay for equal work. C. Job descriptions and job structures cannot help organizations demonstrate that they are upholding these laws. D. These laws guarantee equal pay for men and women. E. Under these laws, employers cannot tie differences in pay to business-related considerations.

32. Cindy and Alex execute the same roles and responsibilities at their organization. However, Alex earns more than Cindy. Under the laws governing equal employment opportunity, which of the following statements will justify the organization's decision to pay Alex more than Cindy? A. Alex is white, and Cindy is black. B. Alex has more experience than Cindy. C. Cindy has a hearing impairment. D. Men have more stamina, so they can work longer hours. E. Cindy is an immigrant.

32. Ryan was working as an engineer at a paint manufacturing company. A chemical spill at the factory caused an accident that left him permanently disabled. Which of the following programs is specifically designed to help employees like Ryan? A. unqualified retirement plan B. vested-benefit plan C. Social Security D. defined-benefit plan E. work-sharing plan

32. Which of the following is true of a craft union? A. It represents many different occupations. B. Membership in the union is the result of working for a particular employer in the industry. C. Changing employers is not very common. D. It is often responsible for training members through apprenticeships. E. It consists of members who are linked by their work in a particular industry.

32. Which of the following refers to a country that is neither the parent country nor the host country of a company? A. first country B. facilitating country C. governing country D. third country E. guest country

36. Which of the following is a true of unemployment insurance? A. It provides payments to offset lost income during voluntary unemployment. B. Most funding for unemployment insurance is provided by employees. C. Unfavorable experience ratings of employers lead to higher premiums. D. Costs for unemployment insurance are standard across the country. E. It is a voluntary program based on number of employers in a specific state.

37. In which of the following situations will workers become eligible for unemployment benefits? A. when they have worked only for a few days B. when they are out of work because they are sick C. when they are discharged because of willful misconduct D. when they are actively seeking work E. when they are out of work because of a labor dispute

37. John and Henry are U.S. citizens and work for the same law firm that is headquartered in New York. John, however, works from the firm's London office, while Henry works from the office in New York. Which of the following is a difference between the two employees? A. John is an expatriate, whereas Henry is a parent-country national. B. John is a host-country national, whereas Henry is an expatriate. C. John is a third-country national, whereas Henry is a host-country national. D. John is a parent-country national, whereas Henry is a host-country national. E. John is repatriate, whereas Henry is a third-country national.

37. The employees of Fanzi Textiles Inc. 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 Ronny to represent them during negotiations. Ronny'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, Ronny most likely holds the position of _____. A. business representative B. chief executive officer C. stakeholder D. union trustee E. union steward

37. Which of the following is a drawback of a comparable-worth policy? A. A free-market economy assumes people will not take differences in pay into account when they choose a career. B. Employees may conclude that pay rates are unfair. C. The courts prohibit organizations from defending themselves against claims of discrimination by showing that they pay the going market rate. D. Grouping jobs will result in rates of pay for individual jobs that do not precisely match the levels specified by the market and the organization's job structure. E. Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate.

38. A company with _____ level participation is likely to have a single office, the headquarters, in the parent country. A. international B. multinational C. global D. domestic E. transnational

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

38. Which of the following is a federal law that establishes a minimum wage and requirements for overtime pay and child labor? A. Fair Labor Standards Act B. Americans with Disabilities Act C. Family and Medical Leave Act D. Employee Retirement Income Security Act E. Equal Pay Act

38. Which of the following is a similarity between unemployment insurance benefits and workers' compensation benefits? A. Both of the programs are funded by the federal taxes on employees. B. Both of the programs' costs depend on the organization's experience ratings. C. Both of the programs have the same funding costs across the states. D. Both of the programs replace the same percentage of an individual's previous earnings. E. Both of the programs provide the same amount of compensation to the employees.

38. _____ refers to incentive pay in which the wage paid is higher when a greater amount is produced. A. Profit sharing B. Differential piece rate C. Gainsharing D. Scanlon pay E. Merit pay

39. Kristen, a production manager at KartWheel Designs Inc., believes that the formation of labor unions may have a negative impact on the performance of a company's stock. Which of the following statements is likely to strengthen Kristen's belief? A. Workers in unionized organizations tend to exhibit lower levels of productivity than workers in nonunion organizations. B. Unionized organizations are often required to pay their workers higher wages and offer them more generous benefits. C. Studies reveal that unions do not have any positive effects on performance measures, such as productivity, profits, and stock performance. D. Unions tend to have a positive impact on the self-esteem of their members. E. The formation of labor unions is likely to lead to conflicts between social and labor union goals.

39. Linda, 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. A. 12 days B. 56 days C. 12 weeks D. 30 weeks E. 11 months

40. Which of the following best defines an international organization? A. an organization that builds facilities in a number of different countries in an effort to minimize distribution costs B. an organization that builds facilities in a number of different countries in an effort to minimize production costs C. an organization that sets up one or a few facilities in one or a few foreign countries D. an organization that exports goods to more than a few countries E. an organization that exports goods to a number of different countries

40. Which of the following is a factor that has been associated with the decline in union membership? A. high regulation in such areas as workplace safety and equal employment opportunity B. low competition between companies for scarce human resources C. high job growth in the manufacturing sector of the economy D. low costs of unionized labor E. low prospects for growth in the service industry

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

41. Nick, 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 Nick to say she has been called up for jury duty and needs to be away next week. What should Nick do? A. He should direct the employee to use the Family and Medical Leave Act. B. He should forbid the employee from taking time off for jury duty. C. He should ask the employee to use her sick leave for jury duty. D. He should ask the employee to use her vacation time for jury duty. E. He should establish, and then apply, policies for other situations requiring time off.

41. Which of the following best describes a multinational company? A. an organization that builds facilities within the same country to facilitate large-scale exports to various countries B. an organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs C. an organization that sets up one or a few facilities in one or a few foreign countries D. an organization that operates from one country and has customers from all over the globe E. a domestic organization that chooses to locate a facility using cultural differences as an advantage

41. Which of the following provisions is included in the Fair Labor Standards Act (FLSA)? A. personal finance B. minimum wage C. wage discrimination D. environmental hazards E. retirement plans

42. Employees of Neronsen Inc. have been working to organize a union. The company's managers wish to maintain nonunion operations, because they believe the union's demands for more generous employee benefits would hurt profits. What evidence could the employees point to in support of the idea that unions are good for business? A. Unions can reduce turnover by giving employees a way to resolve problems. B. Whether unions make employees more productive remains open to question. C. Unions raise wage and benefits costs. D. Evidence has found an association between union coverage and lower profits. E. Unions decrease productivity because of the work rules they insist on.

42. In the United States, what is the legal requirement for giving employees paid vacation? A. Paid vacation in the United States must take place on specified days in addition to holidays. B. In the United States, employers must give the amount of paid vacation that makes economic sense. C. In the United States, employers must give employees 10 paid vacation days each year. D. U.S. law requires that new employees receive 25 or 30 days off. E. U.S. law lets employers decide on paid time off; there is no minimum.

42. Piecework rate plans are most suited for _____. A. innovative tasks B. non-standard jobs C. managerial jobs D. jobs with difficult-to-measure output E. routine jobs

42. Which of the following is a drawback of a minimum wage in terms of social policy? A. It assumes people will take differences in pay into account when they choose a career. B. It is one and a half times the employee's usual hourly rate. C. It applies only to the hours worked beyond 40 in one week. D. It places the employer at an economic disadvantage relative to employers that pay the living wage. E. It tends to be lower than the earnings required for a full-time worker to rise above the poverty level.

42. Which of the following 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? A. foreign subsidiaries B. international organizations C. multinational organizations D. global organizations E. domestic organizations

43. Contrary to Western European countries, the United States has no legal requirements regarding employee _______. A. paid vacation time B. Social Security benefits C. unemployment insurance D. pension plans E. 401k contributions

43. David 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? A. $480 B. $600 C. $500 D. $520 E. $250

43. Dev and Emily are employees of a publishing house and work together on the same team. Dev believes that Emily hails from an individualistic culture, while Emily disagrees. Which of the following, if true, would strengthen Dev's argument? A. Emily prioritizes helping her team members attain their career advancement goals. B. Emily focuses on self-development and puts her needs before those of the group. C. Emily places emphasis on achieving upward social mobility by fulfilling common goals. D. Emily prefers decision making through her team members' participation in management. E. Emily's traits are typical of those from cultures that expect protection from the community.

43. With reference to the impact of unions on company performance, it can be said that companies wishing to become more competitive must A. continually monitor their labor relations strategy. B. prohibit unions. C. actively encourage unions. D. deny collective bargaining rights to their employees. E. pay workers well above market rates.

44. Blyrie Pharma is a pharmaceutical company based in Alabama. Blyrie Pharma 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 of the following laws is Blyrie Pharma abiding by in this scenario? A. laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) of minimum wage C. Fair Labor Standards Act (FLSA) of overtime D. laws governing prevailing wages E. product market laws

44. Broxton, a production manager at Silkenz 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 Broxton's viewpoint? A. Union workers tend to exhibit lower levels of productivity than nonunion workers. B. Unions are designed to cater to the interests of management rather than to those of employees. C. Unionization tends to reduce the overall costs of labor and operations. D. Forming an employee union will reduce the risk of work stoppages. E. Unionization is associated with higher costs in wages and benefits.

44. Jerome believes that the key to effective management is to involve his team members in the firm's decision-making processes. He surmises that this will allow him and his team to work as one unit, making choices that will benefit them all in addition to the firm. In this case, Jerome's thoughts reflect that of a person with A. an individualistic nature. B. a collectivist nature. C. high power distance. D. low uncertainty avoidance. E. a short-term orientation.

44. Sick leave programs A. must be provided by all employers according to the law. B. are based solely on the age of employees. C. pay employees for days not worked due to illness. D. are mandatory forms of unpaid leave. E. are forms of floating holidays.

45. Edward, 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 were offended by this gesture. Which of the following differences in culture does this scenario reveal? A. individualism/collectivism B. uncertainty avoidance C. power distance D. long-term/short-term orientation E. masculinity/femininity

45. In the U.S., the amount of sick leave given to employees is often based on _____. A. length of service B. position within the company C. age D. educational background E. prior job experience

45. Leroy joins the human resource department at ZenFuels Inc., where the production workers are represented by a union. Which of the following goals would Leroy most likely be expected to work toward in supporting any negotiations with the union? A. discouraging employees from forming a union B. making managers and workers into adversaries C. keeping operations flexible and retaining some control over schedules D. raising the value of workers' compensation package E. ensuring a regular flow of new members into the union

45. Which of the following statements is true of the FLSA requirements for overtime pay? A. The overtime rate is one and a half times the employee's hourly rate, excluding any bonuses or piece-rate payments. B. Time worked includes hours spent on production or sales, but not on activities such as attending required classes, cleaning up the work site, and so on. C. Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours. D. Everyone is eligible for overtime pay. E. Most workers paid on an hourly basis are exempt and therefore not subject to the laws governing overtime pay.

46. Beckwith Corporation has a benefits package that includes paid vacations and sick leave. The human resource manager proposes shifting this time into a bank of paid time off. What would be an advantage of this change? A. vacation and sick leave do not make economic sense B. most companies offer this arrangement C. the company won't have to set a schedule for holidays D. the company won't have to pay for the time the employees take off E. employees have more flexibility and privacy for their personal matters

46. Joe and his colleagues are members of the union at Pinnacle 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) _____. A. agency shop B. checkoff provision C. maintenance provision D. trade-off provision E. union shop

46. John is the head of the insurance claims department. John works for longer hours than his subordinates, however, he is not paid overtime for working more than 40 hours per week. Under the FLSA, which of the following will justify the organization's decision not to give John overtime pay? A. John is not a U.S. citizen. B. John comes from an economically strong background. C. John is unmarried. D. John is considered as an exempt employee. E. John has lower educational qualifications than his subordinates.

46. Tanya works at a retail store in Los Angeles. She addresses her Indian manager, Priya, by her first name. Tanya's colleague advises against addressing Priya by her name, as she might find it disrespectful. The colleague is most likely right if Priya's cultural beliefs align with a A. long-term orientation. B. collectivist nature. C. high power distance. D. low uncertainty avoidance. E. short-term orientation.

47. Kelsey, the engineering manager at Tek Solutions, takes an eight-week unpaid leave to go on a tour to promote a book she wrote. She does so in accordance with Tek Solutions' policy for leaves without pay. In what sense could this unpaid leave be an employee benefit for Kelsey? A. her leave is based on length of service, so it accumulates over time B. her time off is an example of personal days C. the Family and Medical Leave Act requires the employer to grant unpaid time off D. she uses her paid time off for the leave E. she retains her seniority and benefits during the leave

47. Name the type of union security arrangement that is illegal under the provisions of the National Labor Relations Act. A. union shop B. agency shop C. closed shop D. open shop E. checkoff provision

47. Sheena 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? A. masculinity B. time orientation C. high uncertainty avoidance D. individualism E. power distance

47. Under the FLSA, exempt status of employees depends on their A. job responsibilities and salary. B. organizational commitment. C. job title. D. work experience. E. job qualifications.

48. Barbara, a job applicant at Solace Corp., finds 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 Solace Corp. has a(n) _____ arrangement. A. open shop B. closed shop C. checkoff provision D. union shop E. agency shop

48. Eric's company lays down stringent rules for employees to follow at work. Employees are expected to set goals for each day and week, and to share those goals on the company intranet. This way, Eric and his coworkers 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 A. individualism. B. long-term orientation. C. femininity. D. uncertainty avoidance. E. power distance.

48. Kelly, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Michael, suggests that Kelly would be able to save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which of the following weakens Michael's argument? A. Individual plans are typically offered only to senior executives. B. Rates for group insurance are typically lower than those of individual policies. C. Kelly will not be eligible for other benefits if she does not enroll in a group insurance plan. D. Employees get more for their money when they receive insurance as a group benefit. E. Kelly will get more take-home pay if she opts for a group insurance plan.

48. _____ means that an employee is paid a given amount regardless of the number of hours worked or quality of the work. A. Pay level B. Nonexemption C. Pay policy line D. Piecework rate E. Salary basis

49. According to the FLSA, which of the following individuals is most likely a nonexempt employee? A. the CEO B. a senior administrative employee C. an hourly paid employee D. an HR manager E. the director of marketing

51. Tiffany, the marketing manager of a mobile phone company, is achievement-oriented and exhibits high levels of assertiveness. She creates marking plans that will maximize financial returns and enjoys competing against other managers in the company. Tiffany is most likely to be an individual whose culture reflects A. masculine traits. B. a short-term orientation. C. high power distance. D. low uncertainty avoidance. E. collectivist views.

49. Joanne and Patrick are expatriates working for different companies in two different countries. Joanne's company is very structured, follows rigid rules for security, and expects employees to behave in a certain manner. Patrick's company is a little more relaxed, and they tend to take each day as it comes. Which of the following cultural differences contributes to this difference in the way these corporations operate? A. Joanne's company is in a country high in feminine culture, whereas Patrick's company is in a country high in masculine culture. B. The culture of Joanne's company functions with a low power distance, whereas the culture of Patrick's functions with high power distance. C. Joanne's host country functions at an individualistic level, whereas Patrick's host country functions at a collectivist level. D. Joanne is in a company with a short-term orientation culture, whereas Patrick is in a company with a long-term orientation culture. E. Joanne's company's culture functions with a high uncertainty avoidance, whereas Patrick's company's culture functions with a low uncertainty avoidance.

49. Neal joins Filestene 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, Neal's HR manager is referring to a(n) _____ arrangement. A. closed shop B. maintenance of membership provision C. agency shop D. checkoff provision E. union shop

49. Sarah's employer provides her with an insurance plan that requires her to obtain approval before being admitted to the hospital for surgical procedures. Which variation of health coverage does this illustrate? A. managed care B. health maintenance organization C. employee wellness D. flexible spending account E. consumer-driven health plan

50. Adrian and Ben are employees of a software development firm in San Francisco. Ben believes that Adrian exhibits behaviors that resemble those of individuals from masculine cultures. Which of the following, if true, would support Ben's beliefs? A. Adrian places more emphasis on a harmonious working relationship between members in his team. B. Adrian places more emphasis on creating an atmosphere of competition among his team members. C. Adrian places more emphasis on undertaking initiatives aimed at mobilizing funds for the underprivileged. D. Adrian places more emphasis on undertaking initiatives aimed at preventing environmental degradation. E. Adrian places more emphasis on achieving social mobility through collectivist means.

50. Employees at Harlan Industries have formed a union and are negotiating a union security arrangement. Which option would be most favorable to the union and also legal? A. A closed shop, because any employee hired must be a union member B. An agency shop, because it requires employees to join the union for the length of the contract C. A union shop, because it requires all employees to join the union within 30 days of their start date with the company D. Maintenance of membership rules, because they require that union members remain at the company E. Free riders, because these let employees benefit from union activities without joining the union

50. Rita, 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 of the following health care plans is Rita most likely to find suitable for her needs? A. a managed care plan B. a health maintenance organization C. a preferred provider organization D. an employee wellness program E. a flexible spending account

50. Which of the following statements is true about the Fair Labor Standards Act (FLSA)? A. The overtime rate under the FLSA is two and a half times the employee's hourly rate. B. The FLSA permits federal contractors to pay less than the prevailing wage rate. C. The FLSA permits a subminimum training wage equal to 95% of the minimum wage. D. Nonexempt employees are covered by FLSA and include most hourly workers. E. Under the FLSA, executive, professional, and administrative employees are considered nonexempt employees.

51. Nina works at Gia Inc., 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 Gia providing to its employees? A. flexible spending account B. preferred provider organization C. health maintenance organization D. consumer-driven health plan E. managed care plan

51. Sapheda Inc., a heavy machinery company, has employees belonging to the age group of 17 to 30. Noah, 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 of the following will justify the organization's decision to forbid Noah from doing heavy machinery work? A. Noah cannot be employed in hazardous occupations because he is 17 years old. B. Noah is expected to work in a safe environment because he is male. C. Noah is not a U.S. citizen, therefore he is prohibited from working in a hazardous environment. D. Noah has not yet completed college, therefore he should only be given administrative duties. E. Noah comes from an economically weaker background, therefore he is expected to perform clerical duties.

51. 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? A. agency shop B. union shop C. closed shop D. maintenance of membership E. checkoff provision

52. Jack has to decide between two jobs that provide equal pay. He decides to compare the health care benefits provided by both jobs to arrive at a decision. He wants to choose the job that offers him a flexible spending account over the job that offers him managed care. Which of the following statements best supports Jack's preference? A. With managed care, the insurer makes decisions about health care, which helps avoid unnecessary procedures. B. Money in flexible spending accounts is not taxed, so employees get more take-home pay. C. The money in the flexible spending accounts must meet IRS requirements. D. At the end of each year, money remaining in a flexible spending account reverts to the employer. E. Contributions to a flexible spending account may not exceed $5,000 per year.

52. Merit pay system decisions are based on two factors: an individual's performance rating and their A. compa-ratio. B. seniority. C. pay grade. D. educational qualifications. E. experience.

52. Spark Inc., a manufacturing company, hires employees ranging in age from 14 to 25. Which of the following practices by Spark would ensure that it complies with child labor laws? A. The employees are all paid the same amount. B. The teenage employees earn a training wage for the first year. C. Only the workers over 20 earn overtime pay. D. All the employees have part-time schedules. E. The employees aged 14 and 15 work only in office jobs and for limited time periods.

52. Stephen works as an accountant in the headquarters of a fast-food chain. He encourages his colleagues to participate in an initiative he started that involved planting trees and flowers on the office's grounds. Stephen's initiative most likely reflects one of individuals in a _____ culture. A. collectivist B. short-term C. feminine D. high power distance E. low uncertainty avoidance

53. Matt has a health care plan that provides him coverage in such a way 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 Matt using? A. managed care B. health maintenance organization C. preferred provider organization D. flexible health plan E. consumer-driven health plan

53. Miranda is an employee covered by a union security arrangement that does not mandate she become a union member but requires that she pays union dues. In this scenario, which type of union security arrangement is described? A. maintenance shop B. union shop C. agency shop D. closed shop E. provision shop

53. Under the FLSA, which of the following statements is true of child labor? A. Children aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor. B. Children aged 14 and 15 may not be employed in any work associated with interstate commerce. C. The FLSA's restrictions on the use of child labor apply to children younger than 18. D. Children aged 18 and 19 may work only outside school hours, in jobs defined as nonhazardous, and for limited time periods. E. All the states have laws requiring working papers or work permits for minors.

53. Which of the following statements is true about cultures with a long-term orientation? A. They have a tendency to look down upon those who invest in savings. B. They prefer jobs that are relaxed, easy, and do not involve hard work. C. They focus primarily on cultural values that fulfill obligations in the present. D. They promote respect for those who are good at achieving immediate results. E. They focus primarily on cultural values that tend to pay off in the future.

54. Brandon is a new employee at Relagen 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 of the following security provisions of union membership is most suitable for Brandon? A. A closed shop provision because it gives an employee the right to participate in decision making without becoming a member B. A maintenance of membership provision because it allows employees to join the union as passive members C. A union shop provision because it helps an employee use indirect influence to affect management-union contracts D. An agency shop provision because it requires employees to pay union dues but does not force them to become members E. A checkoff provision because it requires all the employees of an organization to join the union, regardless of their preferences

54. Jenny, 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. Jenny's attitudes and behavior are consistent with a culture that A. is highly individualistic. B. has high power distance. C. is low on uncertainty avoidance. D. is feminine. E. is long-term oriented.

54. Ron, the manager of a shipping company, introduces a set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks and subsequent medical costs. The program aims at specific health risks, such as high blood pressure, high cholesterol levels, smoking, and obesity. Based on these offerings, Ron has introduced a(n) _____. A. employee wellness program B. health maintenance organization plan C. preferred provider program D. managed care program E. consumer-driven health program

54. Which of the following statements is true according to the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936? A. Under these laws, individuals aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor. B. Federal contractors must pay their employees at rates at least equal to the prevailing wages in the area. C. The overtime rate applies to the hours worked beyond 45 in one week. D. Employers must pay a training wage to workers under the age of 15 for a period of up to 60 days. E. Organizations can defend themselves against claims of discrimination by showing that they pay the going market rate.

55. SalientVision 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% of the local labor force. In this case, which of the following laws does the company comply with? A. the Lloyd-La Follette Act of 1912 B. the Smith-Connally Act of 1943 C. the Julie Jargon Act of 1940 and the Eric Morath Act of 1945 D. the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936 E. the Humphrey-Hawkins Full Employment Act

55. Which of the following is true of short-term disability insurance? A. It pays the full amount of a disabled employee's salary for a minimum period of one year. B. It pays the double the full salary of a disabled employee for a period of two months. C. Only employees who have been with an organization for less than two years are eligible for short-term disability insurance. D. It pays a portion of a disabled employee's salary as benefits for up to six months. E. It is only provided to those individuals who work part time.

55. _____ promote respect for past tradition and for fulfilling social obligations in the present. A. Short-term orientations B. Masculine cultures C. Feminine cultures D. Individual orientations E. Capitalist orientations

55. _____ rules require that employees who join the union remain members for a certain period of time but do not require a union membership. A. Agency shop B. Union shop C. Closed shop D. Maintenance of membership E. Checkoff provision

56. Cliff Stiff Inc., a cement company, receives more than $2,000 in federal money. The company hires employees belonging to the age group of 25 to 40. Soon after, the Cliff Stiff is charged for violation of law under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936. Which of the following would most likely explain the reason for the company being sued? A. The employees of the company are not being paid at rates at least equal to the prevailing wages in the area. B. Cement industry employees are being paid only 15% above the minimum wage. C. The company hired employees belonging to the age group of 25 to 30, and they are being employed in hazardous environments. D. Individuals eligible for overtime are being paid at one and a half times the employee's regular pay rate. E. Employees below the age of 25 are not being hired by the company.

56. 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. A. management B. union C. industrial D. societal E. economical

56. Which of the following is a feature of a company with an individualistic culture? A. It has flatter pay structures. B. It exhibits greater differences between the highest and lowest pay in the organization. C. It emphasizes on organizational rather than individual performance. D. It involves employees in collective decision making. E. It has compensation systems based on fixed pay according to seniority.

56. Which of the following is true about disability insurance? A. It benefits the disabled employee only for the first year of disability. B. Payments under short-term plans are less than that of long-term plans. C. It pays about 50% to 70% of the employee's salary in case of disability. D. Most employers offer long-term disability plans. E. It offers coverage when the employee's dependent is disabled.

57. During a meeting to discuss ways to cut costs on benefit packages, the vice president of the company, Harold, suggests getting long-term disability insurance for all employees. Alexis, HR manager, disagrees with him stating that short-term disability coverage is more advantageous for the company. Which of the following supports Alexis' statement? A. Short-term disability coverage is offered by few employers, which leads to a competitive advantage. B. Long-term disability coverage does not have any limits on the amount to be paid each month to employees. C. Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company. D. The nature of work is such that the level of risk involved is high and injuries could be permanent. E. The majority of the workforce is middle-aged and prefers long-term coverage.

57. The Davis-Bacon Act of 1931 A. requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. B. mandates that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week. C. requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates found prevailing in the locality. D. covers all government contractors receiving $10,000 or more in federal funds. E. covers construction contractors that receive more than $2,000 in federal money.

57. The National Labor Relations Act is also known as the _____. A. Taft-Hartley Act B. Wagner Act C. Landrum-Griffin Act D. Sarbanes-Oxley Act E. Hatch Act

58. Which of the following is the best way for an internationally-expanding organization to gain expertise in a host country's legal requirements? A. gather advice from a third-country national, since they are a neutral party B. hire one more host-country nationals C. increase the number of parent-country lawyers D. open a facility based on the parent-country's legal system and adjust operations as the need arises E. interview host-country nationals to learn how they would like facilities in their countries to be run

59. An organization's choices about _____ are limited by its response to the economic forces of product markets and labor markets. A. pay rates B. pay structure C. pay differentials D. pay grades E. pay ranges

59. ExAlt Technologies forecasts a sales increase in several product lines, so management is planning how to expand production capacity at its three factories in Mississippi, Poland, and Thailand. The HR department prepares estimates of local labor costs and availability of workers in each location. What else should the decision makers take into account when planning labor needs? A. calculating of the total number of floating holidays each employee will receive B. the probability that newly hired employees at each location will suffer culture shock C. whether the country in which the factory operates has an individualistic culture D. if the company can put a greater emphasis on protecting workers' jobs E. how these considerations weigh against financial and operational requirements

59. Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees? A. the Consolidated Omnibus Budget Reconciliation Act (COBRA) B. the Age Discrimination in Employment Act (ADEA) C. the American Disabilities Act (ADA) D. the Fair Labor Standards Act (FLSA) E. the Employee Retirement Income Security Act (ERISA)

59. Which of the following is covered by the National Labor Relations Act (NLRA)? A. a worker employed as a supervisor B. a person working for a parent C. an independent contractor D. a worker employed by an employer subject to the Railway Labor Act E. a worker going out on strike to secure better working conditions

60. Old Thyme Manufacturing 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 found that it couldn't afford to keep up with paying for its retirement benefits. What protection will the retirees have in this situation? A. Old Thyme must give the employees the option to sell their stock in the company. B. The employees will receive payouts from their 401(k) plans. C. The employees will receive a share of profits as part of the company's ESOP. D. Because the plan was underfunded, the retirees will no longer receive benefits. E. The Pension Benefit Guarantee Corporation will provide them with a basic benefit.

60. Several years ago, Seventh National 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 facility is most likely in this situation? A. The bank will switch to exporting these services to customers from its home office. B. The facility is moving to a higher-wage country. C. The bank does not intend to continue this service to customers. D. The bank is expecting the workers to handle each call faster. E. The facility is automating the process of answering routine questions.

60. Which of the following statements is true about a product market? A. The cost of labor does not affect the product market because it is an insignificant part of an organization's costs. B. Product-market considerations are of particular concern to a company when its customers place greater importance on product rather than price. C. Organizations in a product market are competing to serve the same customers. D. Product markets typically place a lower limit on the pay an organization will offer its employees. E. Organizations in a product market must increase the cost of labor every quarter.

60. Who among the following is NOT covered by the National Labor Relations Act (NLRA)? A. an individual employed as a supervisor B. an individual employed in the service sector C. an individual employed by a private-sector firm with less than 15 full-time employees D. an individual joining a union that is not recognized by his or her employer E. an individual refraining from activity on behalf of the union

61. Das Work and Edge Tech are electronics manufacturing companies competing to serve the same customers. The labor-related expense per product for Das Work is $30 higher than that for Edge Tech. However, Das Work makes more profits than Edge Tech. In this case, which of the following actions has contributed to the profits made by Das Work? A. It produces high quality goods and charges more for these products than competitors. B. It does not provide overtime pay to employees who work more than 40 hours in one week. C. It has recently introduced the comparable-worth policy for employees. D. It provides free home delivery of purchased goods. E. It has a company website where customers can purchase goods online.

62. Which of the following is an unfair labor practice by unions under the Taft-Hartley Act? A. insisting on provisions that the employer may hire only workers who are union members B. nominating candidates to union office and conducting secret-ballot elections C. going out on strike to secure better working conditions D. refraining from activity on behalf of the union E. joining a union not recognized by the employer

63. Under a 401(k) plan, the _____ is responsible for choosing specific investments. A. employee B. PGBC C. ERISA fiduciary advisor D. financial institution handling the account E. employer

63. When Builder Bob Enterprises, a maker of construction equipment, needs supervisors for its factories in China, it recruits Chinese workers before it looks in other countries. Which statement best explains Builder Bob's recruiting practices in China? A. Any Chinese workers Builder Bob hires must be eligible to work in the United States. B. The United States ranks among the most challenging destinations for expatriate assignments. C. Sometimes third-party nationals have better technical and human relations skills. D. Chinese employees work harder and are better motivated than expatriate employees. E. Hiring locally is much less expensive than training and transporting expatriate employees.

63. Which of the following laws permits states to pass right-to-work laws? A. the Taft-Hartley Act B. the Sarbanes-Oxley Act C. the Landrum-Griffin D. the Hatch Act E. the Maguire Act

63. Which of the following statements is true about labor markets? A. Organizations compete to sell labor in the labor market. B. Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job. C. Changes in the CPI do not affect the labor market. D. Cost-of-living considerations have little impact on labor-market rates. E. An organization's competitors in labor markets only include companies with different products.

64. Guangli is a human resource specialist at Quasio Inc., a business consulting company. To support human resource planning, Guangli monitors trends in the Consumer Price Index. In recent months, the CPI has been rising at an increasing rate. What can Guangli predict based on this information? A. A rising cost of living will lead workers in the labor market to seek higher pay. B. A falling cost of living will cause workers to leave the labor market. C. A rise in employment costs will lead companies to demand more labor. D. Competitors in Quasio's product markets will hold wages steady. E. Uncertainty about prices will cause workers to accept lower-paying jobs.

64. Which of the following is the most likely reason for hiring host-country nationals to fill most of a company's foreign positions? A. they are familiar with the parent-country's customs B. they can easily understand the values of the local workforce C. they cost more to train, showing the company invests in its workers D. the company will not be required to transport the employee's spouse E. these employees are far more open to taking on new job responsibilities

64. Which of the following is true of a cash balance plan? A. All contributions to the plan come from the employee. B. The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills. C. Older employees with many years of service benefit to a greater degree than do younger workers just starting their careers. D. It penalizes employees for changing jobs. E. Employees cannot predict retirement benefits under cash balance plans.

64. Which of the following statements is true of right-to-work laws? A. They are federal laws that protect employees' right to lifetime employment. B. They are state laws that make union shops, maintenance of membership, and agency shops illegal. C. They are laws that protect the right of unions to insist that the employer hire only union members. D. They are laws that allow terminating an existing contract and striking for a new one without notifying the employer. E. They are federal laws that ensure that all union members get pension benefits.

65. Identify the right of employees that is covered under the Taft-Hartley Act. A. the right to nominate candidates for union office B. the right to participate in union meetings and secret-ballot elections C. the right to choose whether they join a union or other group D. the right to examine unions' financial records E. the right to physically block nonstriking employees from entering the workplace

65. Sean, a consultant, was assigned an overseas project in China for a period of two years. After a period of seven months, Sean's manager decides to bring Sean back to his home country and replace him with someone else in China. Which of the following, if true, is most likely to have resulted in this decision? A. Sean exhibited the ability to effectively communicate in Mandarin. B. Sean exhibited a sense of intolerance toward collectivist ideals. C. Sean exhibited high levels of extraversion that was required for the job. D. Sean exhibited high levels of cohesiveness. E. Sean exhibited lower levels of disillusionment than other employees.

96. The four components of a total pay package are _____, tax equalization allowance, benefits, and allowances to make a foreign assignment more attractive. A. salary allowance B. exchange rates C. health plans D. uprooting fees E. base salary

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

67. Which of the following includes the right not nominate candidates for union office? A. the Roosevelt Act B. the California 1975 Labor Relations Act C. the Landrum-Griffin Act D. the Taft-Hartley Act E. the Wagner Act

67. Wowee Appliances is setting up production and distribution facilities in India to meet the growing demand there. The company's executives want the human resource department to identify one of its U.S. managers to lead the operations there, so he or she can ensure that the company culture is maintained. They ask the HR vice president to recommend a person with strong financial skills. The HR vice president agrees, but adds that they also should use psychological testing to identify candidates who are highly flexible and conscientious. Which statement best supports the HR vice president's advice? A. These traits will replace the need for support from family members. B. These traits will help the manager be extroverted in the new environment. C. These traits are associated with a high degree of financial skills. D. These traits will prevent the manager from noticing cultural differences. E. These traits will help the manager persevere through culture shock.

68. A _____ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits. A. top-heavy B. multiemployer C. special draw rights D. deferred E. defined-contribution

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

68. Trevor, the human resource manager at XTech, is advising the company's business executives that paying more for labor than competitors can support the company's strategy. Under what conditions might Trevor's idea be most valid? A. XTech pays more to attract top talent, applying employees' knowledge to be more innovative than competitors. B. XTech intends to charge more for than competitors for the same kinds of products. C. XTech hopes other companies will eventually match XTech's pay scale. D. Labor costs are a large part of XTech's total costs. E. XTech is developing a low-price strategy that will generate more sales.

68. When an expatriate sent on a foreign assignment begins experiencing feelings of isolation, criticism, stereotyping, and even hostility, they are said to be experiencing _____. A. validation B. adjustment C. recovery D. culture shock E. repatriation

69. FastForward Technology depends heavily on a workforce of software engineers, systems analysts, and coders. Which statement best explains why FastForward would offer its employees paid maternity and paternity leave? A. Only 13% of workers currently have paid family leave. B. Most industrialized nations provide this type of employee benefit. C. Management doesn't want exhausted workers in the office. D. These benefits are required by the Family and Medical Leave Act. E. It makes the company more attractive to workers who are in high demand.

69. Inverness Inc., a manufacturing company, believes that pay is an investment that can generate returns in attracting, retaining, and motivating a high-quality workforce. In this case, which of the following statements is true about Inverness? A. It considers its employees as resources. B. It gives the least importance to profits. C. It is a customer-friendly firm. D. It tries to keep its labor costs minimal. E. It helps employees find higher-paying jobs.

69. Roger, an automobile engineer, was sent on a foreign assignment to Spain. Initially, Roger was fascinated by the culture and history of the town he lived in. Within a month, he began to feel disillusioned and discomforted by the differences in norms and values. Which of the following terms best describe this phase of Roger's experience? A. recovery B. culture shock C. honeymoon D. validation E. adjustment

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

70. Christophe works for a German automobile company. He was sent to the United States for an assignment. Initially, he enjoyed the culture and practices of the country. As time progressed, however, Christophe found it difficult to adjust to the new culture and to abide by its norms and values. Christophe's experience can be defined as _____. A. power distance B. time orientation C. repatriation D. validation E. culture shock

75. Which of the following is an advantage of a two-tier wage system? A. It helps move jobs out of the country. B. It helps eliminate jobs without any legal hassles. C. It helps reduce labor costs without cutting employees' existing salaries. D. It helps provide more pay to new employees. E. It provides better standards for benchmarking.

70. Jacob is a new father. His company helps Jacob by collecting information about the cost and quality of available child care. Which of the following is true of the child care provided by Jacob's company? A. The child care provided by the company is at the lowest level of involvement. B. The child care provided by the company is at the highest level of involvement. C. According to the Family and Medical Leave Act, the company has not provided Jacob with adequate child care. D. According to the Patient Protection and Affordable Care Act, the company has exceeded the level of involvement that is permissible. E. The child care provided by the company is a form of a dependent care assistance plan.

70. Pay policies are one of the most important human resource tools for A. reducing competition in the product market. B. automating routine activities. C. persuading customers that high quality is worth a premium price. D. making decisions about product pricing. E. encouraging desired employee behaviors.

70. The _____ has the authority for certifying or decertifying a union through an election. A. American Federation of Labor and Congress of Industrial Organization (AFL-CIO) B. Small Business Association (SBA) C. National Labor Relations Board (NLRB) D. Federal Trade Commission (FTC) E. Selective Service System (SSS)

71. Capnos Inc., an insurance company, incurred losses of about $100 million. To analyze its losses and to overcome them, the company began comparing its own practices against those of its successful competitors. In this scenario, which of the following procedures is adopted by Capnos? A. benchmarking B. job evaluation C. regression analysis D. delayering E. pay structuring

71. Identify the category of employees excluded by the National Labor Relations Board (NLRB) from participating in organizing activities. A. employees in multiple facilities within a single employer B. employees covered by multiple employers C. employees with managerial duties D. employees who have been on strike for economic reasons for less than one year and who have been replaced by other employees E. employees who have a community of interest in their wages, hours, and working conditions

71. Which of the following is true of child care? A. At the highest level of involvement, organizations provide vouchers or discounts for employees to use at existing child care facilities. B. Companies that provide child care facilities face liability concerns. C. Provision of child care is mandatory under the Family and Medical Leave Act. D. Child care should be limited to provision of leaves to employees. E. Child care must include death benefits for it to be considered as a qualified plan.

71. While training and developing a global workforce, which of the following is a challenge that an organization is most likely to face? A. creating a comprehensive training program for employees from different cultures B. making employees aware of the training content and the method of evaluation C. linking training objectives to performance management D. making employees aware of the development plans E. deciding the duration of the training program

72. Beenes & Bacon Ltd., a consulting firm with offices in seven countries, is bringing together employees from all locations for a leadership training event. Which of the following considerations is most affected by the international nature of the workforce? A. the need to measure training outcomes B. the need to have training objectives C. management's interest in the topic D. the employees' motivation level E. cultural differences

72. Helen is a marketing manager at a local equipment manufacturer. She and her husband know that saving for college for their 4-year-old twin boys is a challenge. Her employer recently implemented 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 recently implemented? A. 529 savings plan B. 401k savings plan C. 207 college tuition plan D. U.S. saving bonds plan E. TD Ameritrade college tuition plan

72. Which of the following U.S. organizations conducts an ongoing National Compensation Survey measuring wages, salaries, and benefits paid to the nation's employees? A. Bureau of Labor Statistics B. Society for Human Resource Management C. American Management Association D. AFL-CIO E. Bureau of Economic Analysis

75. _____ refers to training employees and their family members to get them ready for an assignment in a foreign country. A. Acculturation B. Uncertainty avoidance C. Cross-cultural preparation D. Community training E. Biculturalism

72. Which of the following is true of how the National Labor Relations Board (NLRB) carries out the function of preventing unfair labor practices? A. The deadline for filing a charge is twelve months after the alleged unfair practice. B. The NLRB has no authority to issue cease-and-desist orders to halt unfair labor. C. The board can order the employer to reinstate workers but cannot order them to pay back pay. D. The NLRB is not authorized to set aside the results of an election and must approach the courts for this purpose. E. 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.

73. According to _____, people measure outcomes such as pay in terms of their inputs. A. expectancy theory B. equity theory C. retributive justice theory D. progressive justice theory E. economic theory

73. Jane and Martha work at Anden Inc. Jane claims that forming a union can help enhance workers' bargaining power with management. Martha, however, argues that it is quite challenging to form a union. Which of the following statements strengthens Martha's argument? A. Unionized employees have low negotiating power with the management. B. A union needs to convince a majority of workers to have a common goal. C. Union workers generally have lower productivity than nonunion workers. D. A union's goals must always contradict the employer's goals. E. A union must only include members with highly conceptual skills who can easily deal with conflict resolution.

73. Noah, a human resource manager, learns from employee surveys and conversations that many employees are struggling with the needs of aging parents. He decides to investigate offering elder care benefits. What could these benefits include? A. a 529 savings plan to save money for long-term care facilities B. providing professional caregivers and nursing care C. vacation days and sick leave D. paid time off and part-time jobs for the parents E. flexible hours and decision support from experts in geriatric care

73. Which of the following statements describes an approach that is most appropriate for training employees from cultures high in uncertainty avoidance? A. trainers adopt an impromptu style of instruction B. trainers provide a formal instructional environment C. trainers are flexible and open to schedule and activity changes D. trainers allow trainees to determine the pace of the programs E. trainers emphasize trainees' relationships with one another

74. Employees' conclusions about equity depend on A. what they choose as a standard of comparison. B. how much money they think the company CEO makes. C. what level of income they believe they should be at by this point in their lives. D. what benefits they receive. E. if they think they can bargain for a higher rate of pay.

74. 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? A. 30 percent B. 51 percent C. 20 percent D. 10 percent E. 55 percent

74. Which of the following is a function of elder care benefits offered by organizations? A. direct financial assistance B. tax exemptions on medical bills of the dependent elders C. setting up elderly care facilities close to the workplace D. information, referrals, and support E. providing vouchers and discounts to help employees access the existing elderly care facilities

74. _____ refers to training employees on overseas work assignments to work through national and cultural boundaries. A. Adventure learning B. Experiential learning C. Validation D. Cross-cultural preparation E. Repatriation

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

75. Most organizations offer _____ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills. A. tuition reimbursement programs B. paid vacations C. pension plans D. quarterly promotions E. medical insurance plans

76. James is the founder of a new start-up company. He hires mostly young employees who are fresh out of college. He finds that most of his employees are willing to develop their knowledge and skills and would like to take courses to improve themselves. This additional knowledge would benefit James' company, so he decides to encourage this behavior. Which of the following programs is James most likely to use in order to do so? A. tuition reimbursement program B. employee wellness program C. worker's compensation program D. short-term vesting program E. mature education program

76. Research on the effects of two-tier wage plans found that A. lower-paid employees were less satisfied on average than higher-paid employees. B. lower-paid employees were more satisfied on average than higher-paid employees because they made comparisons with lower-paying alternatives for themselves. C. lower-paid employees expected to be promoted into the second tier in a short time span. D. equity theory did not come into play for either group and neither group experienced more or less job satisfaction than the other. E. both existing employees and new employees have a similar pay rate.

76. Ricardo has been selected to work at his firm's manufacturing plant in China. The training department divides the cross-cultural preparation into three phases. Which of the following is the training team likely to do during the departure phase of cross-cultural preparation? A. They are likely to conduct training sessions that include language instructions. B. They are likely to arrange a mentoring program for the assignment overseas. C. They are likely to provide information about changes in the home-country workplace. D. They are likely to provide the company's newsletters and local newspapers. E. They are likely to provide a formal program for the actual assignment.

77. Employee benefits at Great Nile, an online retailer, include a basketball team, a gym, and an on-site massage therapist. In what way are these benefits most likely to support the company's business goals? A. by meeting the standards of most U.S. businesses B. by making the workplace more family-friendly C. by protecting the company against charges of employment discrimination D. by complying with legal requirements for benefits E. by helping employees cope with demanding, high-stress jobs

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

77. International assignments are especially beneficial to the organization if they are linked to the company's ____. A. labor relations B. outsourcing programs C. training methods D. bonus plans E. development programs

77. Some employees at Los Amigos Inc., a clothing manufacturer, investigate pay rates on Salary.com and learn that Los Amigos has been paying them significantly more than the national average for their jobs. In this case, which of the following is the most likely reaction of the employees at Los Amigo? A. The employees will conclude that there must be regional differences in pay. B. The employees will be motivated to work much harder. C. The employees will find their jobs less challenging. D. The employees will find a way to increase their outcomes by stealing. E. The employees' attitudes and behaviors will continue unchanged.

78. According to your text, a logical place to begin selecting employee benefits is to establish _____ for the benefits package. A. a basic hierarchy B. limits C. costs D. goals E. objectives

78. According to your text, appropriate behavior in Ghana includes A. touching foreheads as a sign of greeting. B. dramatic displays of loyalty only when it suits the individual. C. disobedience of government-suggested regulations and procedures. D. the length of eye contact. E. repaying obligations.

78. Connor, an HR manager, heard from other managers that there was talk of a union organizing effort at his company. Connor 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 Connor's reasoning about the organizing effort? A. For the organizing process to continue, at least 30% of the employees must sign an authorization card. B. In an election, workers may have a choice from among more than one union. C. In most organizing efforts, there is a hotly contested election campaign. D. Unions usually launch an organizing campaign by discussing issues with employees at home. E. Regulations forbid unions from using online databases to identify issues of interest to particular workers.

78. Triano Brothers, an insurance firm, follows an administrative procedure for measuring the relative worth of its jobs. The organization does this by assembling and training a committee consisting of people familiar with the jobs. The committee includes a human resource specialist and, if the budget permits, an outside consultant is hired. Which of the following is exemplified in this scenario? A. job rotation B. job evaluation C. merit pay system D. job enrichment E. work structure

79. Stan, the CEO of a company, considers dropping medical insurance from the list of benefits provided to employees. Alisha, the operations director, disagrees with Stan by stating that medical insurance is a high-value benefit. Which of the following supports Alisha's statement? A. Companies that do not provide medical insurance cannot have their retirement plans considered as qualified plans. B. Most employees do not appreciate what health insurance costs the employer. C. Medical insurance plans do not cover mental illness. D. A health insurance rate is higher than a general insurance rate. E. Employees usually realize that surgery or a major illness can be financially devastating.

79. Which of the following statements best describes a difference of giving performance feedback outside the United States? A. In contrast to U.S. practices, performance feedback outside the United States includes repayment of obligations. B. Performance feedback is expected in the United States, but is forbidden by many other countries' laws. C. U.S. workers are more interested than other workers in hearing about whether they are loyal. D. Employees in other countries seek out direct negative feedback more readily than U.S. employees do. E. Employees in other countries are less likely to be comfortable with direct statements about their performance.

79. Which of the following statements is true of compensable factors? A. They are generally statistically derived. B. They are the characteristics of a job that a firm values and chooses to pay for. C. They refer to the factors that are important for setting the two-tier wage system. D. They describe all aspects of the jobs being evaluated. E. They are used to ensure equity among employees.

79. Which of the following terms refers to a substitute arrangement of union membership in which members receive discounts on insurance and credit cards rather than representation in collective bargaining? A. card-check provision B. corporate union membership C. indirect union provision D. associate union membership E. relational union membership

80. Isaiah, an HR manager, conducted a survey to learn which benefits employees value the most. He discovers that the survey results will be difficult to apply. What is the most likely reason? A. Employees expect to receive benefits that are legally required and widely available. B. Software is the only method employees will accept to help them choose their benefits. C. The costs of turnover at Isaiah's company are high. D. The employees only value medical insurance. E. Employees have very different opinions about what they value.

80. Kendra, a human resource professional, works for a U.S. company that will be opening an office in Mexico City. She is preparing an outline for training the managers there in how to carryout performance management. Which of the following statements expresses a valid point to cover in the training? A. If growth slows, the company may have to update its performance plans more often. B. If managers are concerned about bad karma, they do not have to give employees feedback. C. In delivering feedback, managers should meet cultural standards for bowing and eye contact. D. Managers should review employees' shortcomings before giving praise. E. Managers can expect that employees want to know what they are doing right.

80. One of the substitutes for traditional organizing is to conduct _____, which bring financial, political, or public pressure on employers during union organization and contract negotiation. A. collective coercion B. corporate campaigns C. indirect provisions D. associate campaigns E. social campaigns

80. Which of the following statements is true about key jobs? A. Organizations usually have no survey data available for key jobs. B. Key jobs are jobs that have highly unstable content. C. Key jobs are jobs that are unique among organizations and are rare to obtain. D. Organizations make the process of creating a pay structure more impractical by defining key jobs. E. A job with a higher evaluation score than a particular key job would receive higher pay than that key job.

81. A pay policy line A. shows the mathematical relationship between the minimum pay and the maximum pay in an organization. B. can be generated using a statistical method called regression analysis. C. requires market-pay-rate data on all jobs in the organization. D. can seldom provide information on the market pay level for a given job evaluation. E. reflects the pay structure in the market, which always matches rates in the organization.

81. Grey Inc. is a start-up located in Orlando. It offers highly beneficial pension plans to its employees. Which of the following categories of employees is the company most likely to attract through its pension benefits? A. women of childbearing age B. disabled workers C. older people D. young people E. unmarried people

81. In Brazil, the pay structure includes high pay for managers relative to nonmanagement employees. Which statement best explains the wide pay difference in Brazil? A. Market structures are consistent across countries. B. Brazil does not have good recruiting systems for identifying talented managers. C. Brazilian managers tend not to be loyal, so companies are constantly replacing them. D. Multinational companies have been leaving Brazil because of falling demand. E. The demand for managers with technical expertise has been outstripping the supply.

96. The method for providing solutions to union-management conflicts over interpretation or violation of a collective bargaining agreement is known as a _____. A. complaint protocol B. chain of command C. grievance procedure D. protest procedure E. corporate campaign

86. Identify a true statement about international labor relations. A. In comparison with U.S. organizations, European organizations exert more centralized control over labor relations in the countries they operate. B. The day-to-day decisions about labor relations are usually handled by each foreign subsidiary in companies that operate across borders. C. Governments never get involved to protect workers who immigrate to other countries. D. Most U.S. organizations, in contrast to European organizations, bargain with a union representing an entire industry's employees, rather than with the local union. E. Companies that operate across national boundaries mostly work only with unions in the home country.

86. Which of the following depicts the most complex bargaining structure in collective bargaining? A. a craft union representing one facility B. a teachers' union representing a large city's school district C. a craft union representing employees in two facilities of one company D. an industrial union representing all hourly employees of several companies E. a carpenters' union representing the employees of one construction firm

86. Which of the following statements is true about pay ranges? A. Pay ranges are most common for blue-collar jobs and those covered by union contracts. B. Pay ranges are widest for employees who are at lower levels in terms of their job evaluation points. C. Pay ranges generally are designed so that they do not overlap. D. The market rate or the pay policy line generally serves as the midpoint of a range for the job. E. The less overlap, the more flexibility in transferring employees among jobs.

87. Bilge Makers Unlimited 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 of the following actions could best help Bilge Makers accomplish its goal? A. accept the high cost and look for other areas in which to reduce spending B. replace the workers' compensation insurance with disability insurance C. shop for a better deal on workers' compensation insurance D. cancel the workers' compensation insurance E. improve safety to lower the company's experience rating

87. Overlapping _____ give the organization more flexibility in transferring employees among jobs, because transfers need not always involve a change in pay. A. pay rates B. pay ranges C. pay policies D. pay differentials E. pay ranks

87. Rachel, a Canadian citizen, has been working in the United States for two years. Rachel's manager, Kevin, believes she possesses the skills required for adaptation and is ideal for an overseas managerial assignment in India. Which of the following, if true, strengthens Kevin's belief? A. Rachel can take criticism only from positions above hers. B. Rachel needs time to develop a positive self-image in a new place. C. Rachel has the ability to foster relationships with people in a host country. D. Rachel does not understand and value her own culture very well. E. Rachel is very assertive and resistant to change.

87. Timothy, a manager at Zillful 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? A. The company would have to hire replacement workers, and they might be more productive. B. When the company does not have enough workers, production output will fall. C. Employees will call off the strike if they do not receive pay from their employer. D. Employees are rarely serious when they threaten to go on strike. E. Employees will decide they are better off without union representation.

88. Assuming an organization wants to motivate employees through promotions, and assuming enough opportunities for promotions are available, the organization would want to A. increase the overlap from one level to the next. B. reduce its compa-ratio to less than 1. C. implement a broadband pay structure. D. limit the overlap from one pay range to the next. E. use a fixed interval promotion policy.

88. During contract negotiations, the union representing the teachers in District 46 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. Which of the following would be one of the most likely reasons for teachers not wanting to strike? A. The school board member will picket the schools during the strike. B. The union will likely be able to make up for some pay during the strike. C. The janitors' union will refuse to cross the teachers' picket lines. D. The district will not pay the teachers while they are on strike. E. During a strike, the employer excludes workers from the workplace.

95. Which of the following is legally required by an organization while offering early-retirement incentives? A. setting an age at which retirement benefits stop growing B. asking female employees to pay more to defined-benefit plans C. ensuring there is no coercion used to force employees to retire D. asking employees to sign compulsory waiver under ERISA E. providing employees no more than 48 hours to make an early retirement decision

88. Lindsay, a human resource professional, is evaluating some of the company's managers to select one for an overseas assignment. She knows she may not discriminate based on age or sex, but she also doesn't want to send someone on an assignment that will cause personal difficulties, disrupt family relations, and cause complications for the manager's success. How can she best avoid discrimination while selecting a candidate who can thrive in the assignment? A. by maintaining a positive view of the assignment so all candidates will be interested B. by inviting a frank, but private, conversation about family-related issues C. by interviewing only candidates without spouses or children D. by asking each candidate to describe his or her family situation E. by giving a complete, accurate preview of the assignment and the host country's culture

88. Which of the following actions help organizations reduce the cost of health care benefits offered to employees? A. increasing the amount employers pay for deductibles and coinsurance B. selecting traditional health insurance over HMOs and PPOs as a preferred option C. expanding the coverage for different types of claims D. paying some or all of the difference in cost between an HMO or PPO plan E. shifting from traditional health insurance plans to PPOs and CDHPs

89. An employer's exclusion of workers from a workplace until they meet certain conditions is known as a _____. A. strike B. lockout C. mediation D. picket line E. sabbatical

89. John and Lisa hold the same position at Flyberry Electronics. However, John earns more than Lisa. In the context of pay structure, which of the following justifies the organization's decision to pay John more than Lisa? A. John works the night shift, and night hours are less desirable for most workers. B. John is a U.S. citizen; therefore his pay should be higher than that of non-Americans. C. Lisa is pregnant; therefore her productivity is assumed to be lower. D. John is physically disabled; therefore he should be paid more than Lisa. E. Lisa lives in a location where living expenses are higher.

89. Which of the following employees is likely to be the most motivated to take on an overseas assignment? A. Sayed, who may have medical conditions to deal with if he travels overseas B. Tina, who has a very realistic understanding of what working and living abroad require C. Ria, whose spouse doesn't want to shift to a new culture and learn a new language D. Elizabeth, who is ethnocentric and has stereotypical views about other cultures E. Rick, who requires extensive training to acquire the basic skills required for the assignment

89. Which of the following strategies can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits? A. using more independent contractors rather than hiring additional employees B. limiting the coverage on life insurance based upon an employee's age C. using more full-time rather than part-time employees D. recruiting new employees instead of demanding overtime from existing employees E. substituting HMO and PPO plans with traditional health insurance plans

90. Identify a true statement about the balance sheet approach used for expatriate compensation. A. It includes planning for how the returning employee will contribute to the organization. B. It ensures managers receive extra pay for the inconvenience of locating overseas. C. It refers to the expatriate receiving information and recognizing changes while abroad. D. It withholds the amount of tax to be paid in the host country. E. It constantly changes in response to a host of economic forces.

90. The _____ usually provides the neutral third party who is used for the common alternatives to strikes. A. National Labor Relations Board B. Federal Mediation and Conciliation Service C. Federal Labor Relations Board D. Federal Arbitration and Consulting Service E. National Mediation and Arbitration Commission

90. Thomas and Alex are welders working for two different divisions of the same company. Both have the same level of experience. However, Thomas earns more than Alex. Under the Fair Labor Standards Act (FLSA), which of the following will justify the organization's decision to pay Thomas more than Alex? A. Thomas lives in a location where living expenses are higher B. Alex is younger than Thomas C. Thomas is a U.S. citizen D. Alex is physically disabled E. Alex works the night shift

90. _____ 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. A. The Internal Revenue Service B. The Consolidated Omnibus Budget Reconciliation Act (COBRA) C. The Employee Retirement Income Security Act (ERISA) D. Employee Benefit Research Institute E. The Bureau of Labor Statistics

91. Gloria, a human resource professional in the United States, is reviewing the plans to send a U.S.-born production manager to Argentina to oversee the opening of a new factory. What does her employer most likely expect her to do about the potential for language barriers with this assignment? A. Because the manager must be fluent in Spanish, she should assume there are no language barriers. B. Gloria should provide enough training to eliminate all language barriers during the assignment. C. Gloria should reassure the manager that English is the international language of business. D. Gloria should provide a trainer to teach Spanish to the manager. E. Gloria should select a manager who can learn Spanish and cope with language barriers.

91. Lola, a neutral third party, tries to resolve a conflict initiated by a manager and union representative at Thornton Inc. She does so by listening to what both parties have to say about the issue and facilitating the negotiations. In this scenario, Lola is exercising which of the following types of alternatives to work stoppages? A. mediation B. final-offer arbitration C. fact-finder technique D. conventional arbitration E. rights arbitration

91. Which of the following is an adjustment to a pay rate to reflect differences in working conditions or labor markets? A. bonus B. pay differential C. green-circle rate D. rank-and-file adjustment E. red-circle rate

91. Which of the following is an advantage of a qualified plan in retirement benefits? A. immediate tax deductions for the funds employees contribute to the plan B. taxable earnings on the money in the retirement fund C. tax-free withdrawals for highly compensated employees D. exemption of contribution from employees E. a retirement plan that provides benefits exclusively to its owners and top managers

92. According to the provisions outlined in the contract between Kranfer Inc. and its labor union, Kranfer 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 to 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) _____. A. arbitrator B. fact finder C. mediator D. rights enforcer E. stakeholder

92. Victor, a human resource professional, is preparing for Jeanne, a U.S. production manager, to take an assignment at a new facility in Vietnam. Victor wants to measure Jeanne's success in establishing high productivity, so he uses the excellent productivity numbers Jeanne 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? A. by using communication technology to send frequent updates of the performance measures B. by raising the measure to motivate Jeanne to improve on her past accomplishments C. by lowering the measure to account for Jeanne's limited knowledge of French and Vietnamese D. by adjusting the measure to account for the facility being in a different time zone E. by adjusting the measure for local factors that could affect productivity

92. Which of the following must be true for a pension plan to be deemed as a qualified plan? A. It must not discriminate in favor of an organization's highly compensated employees. B. It must not be a cafeteria-style plan. C. It should include elder care and child care. D. It has to be a defined-contribution plan. E. It has to be a defined-benefit plan that requires most of the funding to come from the employer.

92. Which of the following statements is true about job-based pay structures? A. A pay structure that rewards employees for winning promotions will encourage them to gain valuable experience through lateral career moves. B. Their focus on higher pay for higher status can work in favor of efforts for empowerment. C. They typically reward desired behaviors, particularly in a rapidly changing environment. D. Organizations may avoid change because it requires repeating the time-consuming process of creating job descriptions and related paperwork. E. They always encourage flexibility, innovation, quality, and customer service.

93. In a meeting to discuss pension plans, management decides to offer retirement plans exclusively to the organization's owners and top managers. Steven, 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 of the following strengthens Steven's belief? A. Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees. B. The ADEA provides more favorable tax treatment of benefits when they are offered to a broad range of employees. C. A top-heavy plan requires faster vesting for non-key employees. D. Extending pension plans to employees at all levels will triple the costs. E. Pension plans are determined exclusively by state and federal laws.

93. The Transport Union in Atlanta, Georgia, 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) _____. A. fact finder B. arbitrator C. stakeholder D. moderator E. rights enforcer

93. What is the main objective of a company using the balance sheet approach to determine compensation for expatriate managers? A. to ensure that the company does not get stuck with paying the higher costs of living in an overseas location B. to adjust the manager's pay downward so total compensation reflects the benefits of getting to travel C. to give the manager the same amount of pay as in the home country, but in the host country's currency D. to give the manager an amount of compensation that enables the company to balance the books E. to give the manager the same standard of living plus extra for the inconvenience of moving

93. Which of the following is a disadvantage of a pay structure that rewards employees for winning promotions? A. It does not focus on setting pay for groups of jobs. B. It does not make adjustments to a pay rate to reflect differences in labor markets. C. It discourages employees from gaining valuable experience through lateral career moves. D. It rewards employees for acquiring skills but does not provide a way to ensure that employees can use their new skills. E. It places the employer at an economic disadvantage relative to other employers that pay the market rate by raising the pay for some jobs.

94. Daniel, an American, is selected by his firm to undertake a temporary assignment in Russia. Daniel's compensation is determined and adjusted in accordance with the standard of living in Russia. He is also paid relocation expenses to ensure he is not inconvenienced by the transfer. Which of the following approaches have been used to determine Daniel's compensation? A. third-country based approach B. flat-pay approach C. transactional approach D. balance sheet approach E. going-rate approach

94. Mario, a production worker, complains to a human resource professional at his company that when he asked his supervisor for a week off to care for his son after surgery, the supervisor replied, "Can't your wife do that instead?" Which of the following statements best summarizes what the HR professional should explain to the supervisor? A. Benefits apply whether a spouse is of the same or the opposite sex. B. Females may not be required to contribute more than men to defined-benefit plans. C. Fatherhood is a protected category in the antidiscrimination laws. D. Mario has not yet used all of his sick leave. E. Equal employment opportunity requires that access to benefits not be limited by sex.

94. 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 _____. A. arbitration B. fact finder negotiation C. mediation D. checkoff bargain E. grievance leverage

94. Which of the following is a characteristic of delayering? A. It increases an organization's flexibility. B. It increases the opportunities for promoting employees. C. It sets pay according to the employees' level of knowledge. D. It encourages a climate of learning. E. It decreases the flexibility of managers in making assignments.

95. Bargaining over a new union contract typically occurs A. only about every three years. B. year after year. C. only on the anniversary of the union's establishment. D. when the union wants more power over an organization. E. when a company feels a union is overstepping its boundaries.

95. Joy Limon, a manufacturing company, has a pay structure based on job descriptions. As the company moves toward customizing production to meet customers' specific needs, it finds that managers are lacking flexibility in both job assignments as well as awarding pay increases to their employees. In this case, which of the following alternatives to job-based pay structures would best help the organization to respond to this problem? A. straight piecework plan B. skill-based pay system C. delayering D. quality-based pay system E. benchmarking

95. 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. A. going-rate approach B. destination-based approach C. home-country-based approach D. flat-pay approach E. balance sheet approach

96. Under the Older Workers Benefit Protection Act of 1990, which of the following guidelines must employers follow when asking employees to sign early-retirement waivers? A. Inform employees that they may consult with a lawyer before signing. B. Allow employees no more than 48 hours before signing the retirement agreement. C. Make Age Discrimination in Employment Act (ADEA) waivers compulsory. D. Provide lesser benefits than would otherwise be available upon retirement. E. Provide employees with an annual bonus and health insurance after the retirement.

96. Which of the following is the result of combining more assignments into a single layer, thus giving managers more flexibility in making assignments and awarding pay increases? A. outsourcing B. broad bands C. rightsizing D. benchmarks E. downsizing

97. During which phase does an employee returning from a foreign assignment experience culture shock in reverse? A. expatriation B. cross-cultural preparation C. repatriation D. honeymoon E. validation

97. The employees' union and the management at Rexen Inc. enter into a contract, which requires Rexen to improve its facilities and to 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 Rexen for violating the terms of their contract. In order to resolve this issue, the union and Rexen will both have to participate in a process for resolving conflicts, known as _____. A. lockout protocols B. right-to-work laws C. the unionship arrangement D. the grievance procedure E. the chain of command

97. Under the Americans with Disabilities Act, which of the following employers is most likely to face legal challenges? A. an employer who switches to a risk-based policy after hiring a disabled employee B. an employer who sets guidelines for using waivers C. an employer who discriminates against workers over age 40 in providing pay or benefits D. an employer who has risk-based insurance and then hires an employee with a disability E. an employer who does not have risk-based insurance

97. Which of the following is a disadvantage of broad bands? A. They reduce managers' flexibility in making assignments. B. They always result in pay decreases. C. They increase the number of levels in the organization's job structure. D. They reduce the opportunities for promoting employees. E. They discourage employees from gaining valuable experience through lateral career moves.

98. 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? A. The final step; the employee and the supervisor would meet together with the union-appointed arbitrator. B. The first step; the employee can speak with her supervisor on her own before involving the union. C. The step in which a written grievance is submitted; this must be written and delivered by the employee only. D. None; the union handles all steps of the grievance procedure without involving the employee. E. The step of deciding to appeal an unresolved grievance; it is up to the employee to choose arbitration or no appeal.

98. Alex, an employee of Teal Inc., an American company, was sent to Turkey for an assignment. HR specialists at Teal Inc. have been preparing Alex for his return to the United States after three years. Which of the following terms describes the process being undertaken by the HR team at Teal Inc.? A. cross-cultural preparation B. time orientation C. repatriation D. uncertainty avoidance E. culture shock

98. An organization employs Rick, a bilateral amputee, to work as a research analyst. When Sarah, 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 of the following will strengthen Sarah's argument? A. The organization has a risk-based insurance in place before recruiting Rick. B. The organization plans to stop Rick's benefits when he reaches the age of 50. C. The organization switched to a risk-based policy after hiring Rick. D. The organization gave Rick access to the same health insurance that is provided to the other employees. E. The organization does not have a risk-based insurance.

98. Instruck Inc. is a real estate firm based in Colorado. The company ensures that employees' pay is dependent on what they are capable of doing. The company also supports efforts to empower its employees by encouraging them to be independent and to make decisions in various areas. This, in turn, ensures job enrichment. Based on this information, identify the pay structure being utilized by Instruck. A. straight piecework plan B. skill-based pay systems C. merit pay system D. differential piece rates E. standard hour plan

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

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

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

104. Employee stock ownership plans (ESOPs) are attractive to employers. Along with tax and financing advantages, ESOPs give employers a way to build pride in and commitment to the organization. Which of the following statements weakens this argument? A. Employees are not allowed to participate in general body meetings as shareholders. B. The stocks within the trust are too widely diversified to earn high returns. C. The stock earnings are taxed at high rates. D. Employees are forced to return the stock profits to the organization. E. Risks involved will directly affect employees' retirement income.

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

106. Which of the following is a method where a combination of performance measures directed toward the company's long- and short-term goals are used as the basis for awarding incentive pay? A. merit pay B. profit sharing C. gainsharing D. balanced scorecard E. Scanlon plan

107. Kelltech Inc. is a sales and marketing company based in Baltimore. It wants to combine the advantages of different incentive-pay plans and help employees understand the organization's goals. Which of the following will help the company accomplish this goal? A. the Scanlon plan B. a balanced scorecard C. a dashboard D. an employee stock ownership plan E. a differential piece rate system

108. Which of the following best describes a balanced scorecard? A. a combination of performance measures directed toward the company's long and short-term goals and used as the basis for awarding incentive pay B. a performance review process where the organization collects feedback from customers, managers, and subordinates, assigns ratings, and lists them on the company's performance card C. an arrangement in which the organization distributes shares of stock to all its employees by placing the stock into a trust D. a 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 E. a system designed to measure the performance of HR personnel based on the quality of recruitment

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

110. Which of the following is an advantage of using balanced scorecard? A. It eliminates the need to communicate the details of an incentive plan to the employees. B. It eliminates managerial effort when providing incentives to employees. C. It increases the pay for all employees in the organization regardless of their performances. D. It reduces employee stress because it does not focus on financial targets. E. It helps employees understand the organization's goals.

111. Which of the following statements is true about a balanced scorecard? A. It encourages employees to compete at the expense of cooperating to achieve organizational goals. B. It allows employees to buy their company when it is experiencing financial problems. C. It combines the advantages of different incentive pay plans and helps employees understand the organization's goals. D. It increases cooperation, but does little to motivate day-to-day effort or to attract and retain top individual performers. E. It is the only measure used by top management to measure the performance of HR professionals and managers.

112. 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 of the following should be used by this organization? A. a retention bonus B. a piecework rate system C. a merit pay system D. the Scanlon plan E. a balanced scorecard

113. Employee participation in pay-related decisions can be part of a general move toward A. employee empowerment. B. centralized decision making. C. self ownership. D. high power distance. E. federalism.

114. Employees should participate in pay-related decisions. This will most likely help in the success of incentive plans, and the plans are more likely to influence employee behavior as desired. Which of the following statements weakens this argument? A. Employees will make decisions that are in their best interests at the expense of the organization's interests. B. It is difficult to monitor an employee's work output when decisions are made by the employee. C. When employees become more involved in pay decisions, they neglect the work assigned to them. D. Employees should be a part of the human resource department to be involved in pay-related decisions. E. It will have a negative impact on the top-level management of the company.

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

116. Keytechi 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 of the following will contribute to employees' feeling that the organization's incentive pay plans are fair and something to pursue? A. Employees must be able to understand the requirements of the incentive pay plan. B. Equal incentives should be offered to all the employees of the organization. C. Employees must be the key decision makers when creating incentive pay plans. D. The company should not inform the employees about incentive plan changes. E. Employees should make decisions that are only in favor of their interests.

117. Deep Space Aeronautics is developing a profit-sharing plan. Randy, the human resource manager, assumes the employees are excited to participate in this start-up company's success. However, a supervisor tells Randy about anxiety surrounding a rumor that employees will lose money if the company has a bad year. How should Randy address this problem with employee morale? A. by recalling that employees are also motivated by factors other than pay B. by removing non-management employees from the team designing the incentive plan C. by conducting meetings to teach about profit sharing and how employees will benefit D. by reminding employees that rumors are against company policy E. by shutting down the company's intranet to prevent further spreading of rumors

118. The human resource, accounting, and legal departments of GloryB Software, a company with locations in seven states plus Australia, are working together on developing a profit-sharing plan. Of the following options for communicating with employees about the plan, which would be the most practical and effective? A. Call a meeting of all the employees to discuss the plan face-to-face. B. Set up a balanced scorecard to measure opinions about the plan. C. Ask employees not to engage in rumors. D. Post descriptions and videos on the company's intranet. E. Hold off on any communications until all employees can be brought together.

119. Most pay-related communications come through A. the company newsletter. B. one designated company speaker. C. rumors between employees from various departments. D. an employee's annual review. E. individual discussions between employees and their supervisor.

120. Executive pay at Ashance 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. Which of the following is being exemplified in this scenario? A. long-term incentives B. balanced scorecards C. piecework plans D. employee stock ownership plans E. short-term incentives

121. Global Solutions Corp. pays its executives short-term incentives for meeting financial targets. Which of the following could be included in this incentive pay? A. bonus for meeting the return on investment goal for last year B. bonus for meeting a target for greater customer satisfaction C. stock options D. stock purchase plans E. merit pay

123. Kolese Inc., a manufacturing company, includes stock options and stock purchase plans in executive pay. Executives at the company will want to do what is best for Kolese because that will cause the value of the stock to grow. Which of the following is being exemplified in this scenario? A. Scanlon plan B. balanced scorecard C. long-term incentive D. merit plan E. short-term incentive

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

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

27. Vactin 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. Which of the following is exemplified in this scenario? A. minimum wage B. overtime pay C. incentive pay D. piecework rates E. salary

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

29. For incentive pay to motivate employees to contribute to the organization's success, the pay plans must be well designed. Which of the following statements describes a characteristic of a well-designed plan? A. Performance measures are to be linked to the individual's goals. B. Employees are given unattainable performance standards. C. Employees value the rewards or incentives that are being offered. D. Employees are given limited resources to meet their goals. E. The pay plan takes into account that employees will accept all goals irrespective of their rewards.

30. Which of the following is a disadvantage of using incentive plans? A. The goals of an incentive plan may interfere with other management goals. B. The goals of incentive plans can seldom be linked to particular outcomes or behaviors. C. Incentive plans cannot be used to promote group and organizational performance. D. Incentive plans cause dissatisfaction among the non-performing employees in the organization. E. Incentive plans are not very effective for jobs other than sales and service.

86. Which of the following best describes profit sharing? A. 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 B. incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary C. a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of profit to employees D. a combination of performance measures directed toward the company's profit and used as the basis for awarding incentive pay E. an incentive plan where a percentage of the previous year's profits is provided to the employees as a part of their salary

87. Which of the following incentive plans 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? A. merit pay B. gainsharing C. the Scanlon plan D. performance bonuses E. profit sharing

88. Mike, 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 of the following statements strengthens Mike's argument? A. In a profit-sharing plan, employees are the owners of the organization. B. Profit sharing helps employees to cooperate and to focus on organizational interests. C. Profit sharing makes employees workaholics. D. In profit sharing, employees contribute their base salary for the development of the organization. E. Profit sharing benefits employees even if the organization makes less profit or no profit.

89. Sheldon, 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, Sheldon should A. pay his employees per piece that is manufactured. B. create a balanced scorecard. C. reorganize the departments in the organization. D. implement a profit-sharing incentive plan. E. hire new employees and pay them above the market rate.

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

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

92. The link between employees' performance and pay is hardest to establish in A. piece rate plans. B. merit pay plans. C. standard hour plans. D. stock ownership plans. E. Scanlon plans.

93. If a company distributes stock to employees by granting stock options, employees exercise the option when they A. purchase the stock. B. sell the stock. C. retain the stock. D. distribute the stock. E. liquidate the stock.

94. Which of the following statements is true of using stock options as incentive pay? A. The use of stock options ensures that managers add value in terms of efficiency and customer satisfaction. B. Stock options require an option holder to purchase the organization's stocks at its present market rate. C. Stock options are rewarding for employees who exercise their option when the company's stock value has risen. D. Low-level employees with stock options are more likely to think like owners than executives who have stock options. E. A company's performance in the stock market tends to be significantly better if its low-level employees are provided stock options.

95. Maria, the financial officer at Boone & Borowitz, encourages the human resource manager to consider using stock options as incentive pay for all employees. The human resource manager cautions that employees could become upset if the options don't turn out to be as valuable as cash. Which of the following statements supports this concern? A. Stock options are not profitable to employees. B. Option owners must exercise the options, no matter what the market price. C. Employees may not purchase their employer's stock. D. Offering stock options discourages employees from thinking like owners. E. Stock prices in the market may fall below the exercise price of the options.

96. In 2017, 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 2019, the employee will most likely A. exercise the option, receiving a gain of $5. B. exercise the option, receiving a gain of $40. C. not bother to exercise the options. D. buy the stock at $45 per share. E. sell the shares to a third party slightly above the market price.

97. _____ occurs when a date or price in a stock option agreement is changed so that the option holder can buy shares at a bargain price. A. "Backdating" B. "Option revising" C. "Retro-vising" D. "Adjusting" E. "Rechecking"

98. In the context of stock ownership, what is meant by "backdating" a stock option? A. reaping windfall in the stock market by selling stock based on company's nonpublic information B. falsifying numbers in the company's annual report to hide losses and inflate the stock prices C. buying a company's stock just before the date of key product launch D. changing the date or price in an option agreement so that the option holder can buy stock at a bargain price E. hiding losses and inflating the recorded value of revenues to boost the price of the company's stock

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