Chapter 5

According to Maslow's need theory, an employee strives to satisfy his or her higher order needs first. a. True b. False

False

According to the equity theory, the outcomes are always tangible. a. True b. False

False

According to the two-factor theory, addressing hygiene factors in an organization ensures that employees are motivated to work harder. a. True b. False

False

Customer dissatisfaction is a direct cost of absenteeism. a. True b. False

False

Developing skills in employees increases the likelihood that the employees would quit an organization. a. True b. False

False

Hiring has little to do with retention. a. True b. False

False

In situations where the financial impact of turnover is insignificant, a company needs to pay greater attention to reducing force loss. a. True b. False

False

Older employees tend to have lower job satisfaction than younger employees. a. True b. False

False

The reasons key people choose to stay with an employer are always the opposite of those that compel others to quit. a. True b. False

False

Luminia Inc. has about five absences per 100 employees each day. Every day, it loses about 13% of its time due to absenteeism. The average percent of time lost per absent employee in the company is 34% every month. In this case, the inactivity rate of the company is _____. a. 5% b. 13% c. 34% d. 20%

B

_____ is an intangible reward for performance. a. Promotion to a new position b. Verbal praise from one's supervisor c. A performance bonus d. An opportunity for training

B

Vacancy costs incurred by a company during turnover primarily include supervisory time, pay rates to prevent separations, and exit interview time. a. True b. False

False

Mark was terminated by his company because of his poor client relations skills that resulted in a major client leaving the firm for a competitor. This is an example of _____. a. involuntary turnover b. positive turnover c. uncontrollable turnover d. dysfunctional turnover

Involuntary

Which of the following is considered to be a hygiene factor by the motivator/hygiene theory? a. Achievement b. Recognition c. Responsibility d. Salary

Salary

HR staff and supervisory time, pay rates to prevent separations, exit interview time, unemployment expenses, legal fees for challenged separations, accrued vacation expenditures, continued health benefits

Separation Costs

The average time lost per absent employee during a specified period of time is known as the _____. a. inactivity rate b. incidence rate c. severity rate d. compensation rate

Severity Rate

Paid orientation time, training staff time and pay, costs of training materials, supervisor and manager time and salaries, coworker coaching time and pay

Training Costs

To increase employee satisfaction, the performance management systems and performance appraisal processes in organizations must be designed so they are linked to compensation increases. a. True b. False

True

number of employee separations during the year / total number of employees at midyear Times 100=

Turnover Rate

Temporary help, contract and consulting firm usage, existing employee overtime, and other costs until the person is replaced

Vacancy Costs

_____ is defined as the perceived fairness of what a person does compared with what the person receives. a. Equity b. Motivation c. Need d. Expectation

Equity

People want to be treated fairly at work Perceived fairness of what the person does compared with what the person receives for doing it Inputs: What a person brings to the organization Outcomes: Rewards obtained in exchange for inputs Employee's view of fair value determines the relationship between performance and satisfaction

Equity Theory

According to the two-factor theory, interpersonal relationships are considered to be motivators. a. True b. False

False

Alice, an efficient waitress at a moderately-priced family restaurant, consistently gets the lowest tips from customers. She announces that she is quitting to take another job at a newly-opened casino. This best exemplifies a(n) _____ turnover. a. functional b. controllable c. involuntary d. positive

Functional

Reduced productivity, decreased customer service, lower quality, missed project deadlines

Hidden/Indirect Costs

Carlos, the HR director of a large paper manufacturing company, is studying the financial costs of turnover of plant personnel at all levels. The easily calculable costs are sobering, but Carlos is also concerned about the hidden costs of turnover that generally include _____. a. missed project deadlines b. co-worker coaching and salaries c. the cost of pre-employment medical tests d. the overtime paid to employees covering the separated employees' jobs

Missed project deadlines

Frederick Herzberg proposed the _____. a. need theory b. expectancy theory c. equity theory d. motivation/hygiene theory

Motivation/Hygiene Theory or Two-Factor Theory

Until the more basic needs are adequately met, a person will not fully strive to meet higher needs

Needs Theory

According to Maslow's need theory, which of the following needs will a person strive to fulfill first? a. Physiological needs b. Safety and security needs c. Actualization needs d. Belonging and love needs

Physiological Needs

Which of the following is considered to be an outcome by the equity theory? a. Age b. Prestige c. Experience d. Productivity

Prestige

_____ is defined as the percentage of employees at the beginning of a period who remain at the end. a. Retention rate b. Turnover rate c. Absenteeism ratio d. Productivity rate

Retention rate

Which of the following is a tangible item in a psychological contract? a. Loyalty b. Nondiscriminatory treatment c. Job security d. Wages

Wages

Fifty employees of Glow Corp. quit the company in 2015. 35 of them quit on their own, while the rest were asked to leave by the company due to poor performance on the job and high absenteeism. The total number of employees in the corporation was 270 in January, 2015. The mid-year employee count was 250, and the number became 220 at the end of the year. The turnover rate at Glow Corp. in 2015 was _____. a. 50% b. 35% c. 25% d. 20%

20%

Desire that exists within a person that causes that individual to act

Motivation

A(n) _____ refers to the unwritten expectations that both employees and employers have about the nature of their work relationships. a. employment contract b. psychological contract c. non-compete agreement d. effort-performance linkage

Psychological Contract

Employees leave for reasons outside the control of the employer

Uncontrollable Turnover

In the current year, many talented teachers have submitted their resignation notices in Sunnydale High School. The president of the school management board is in a fix at this attrition even when the school pays competitive wages to its teachers. In this case, which of the following is the best recommendation for the president to follow? a. Money is the main reason people stay in a job, so the school needs to consider how to raise salaries even higher. b. When pay is competitive, other job factors have more impact on turnover and need to be considered and improved. c. In service sector jobs, people are motivated more by the psychological aspects of the work than by tangible rewards. d. Teachers usually leave their jobs due to involuntary turnover, so pay is not a big factor in their retention.

B

The number of absences per 100 employees each day is known as the _____. a. inactivity rate b. incidence rate c. severity rate d. compensation rate

Incidence Rate

This includes: -talents -interests -personality factors

Individual Ability

-Individual ability to do the work -Effort expended -Organizational support Performance (P) = Ability (A) x Effort (E) x Support (S)

Individual Performance Factors

Employees are terminated for poor performance, work rule violations, or layoffs

Involuntary Turnover

Formula: # of people-days lost through job absence during period ------------------------------- avg. # of emp. x # of workdays All times by 100

Measuring Absenteeism

Degree to which workers believe in and accept organizational objectives and want to remain employed at a company

Organizational Commitment

This includes: -Training and Development -Equipment and technology -Performance standards -Management and coworkers

Organizational Support

1st step: Measurement and Assessment -absence/turnover measure -employee surveys -exit interviews -data analysis 2nd step: Management Intervention -recruiting and selection -orientation and training -compensation and benefits -career development -employee relations 3rd step: Evaluation and Follow Up -regular review of turnover -tracking of intervention results -adjustment of intervention

Process of Managing Retention

Which of the following is considered to be a motivator by the motivator/hygiene theory? a. Interpersonal relationships b. Recognition c. Working conditions d. Supervision

Recognition

Which of the following is a direct cost of absenteeism? a. Replacement for absent worker b. Lower productivity c. Replacement training d. Slower work pace

Replacement for absent worker

According to Maslow's need theory, the highest human need is the need for _____. a. self-esteem b. safety c. self-actualization d. love

Self-Actualization

Paid orientation time is a training cost involved in turnover. a. True b. False

True

Jane quit Cover Corp. without completing a high-priority project that she was handling. Due to her unavailability, the four remaining members of her team had to work overtime and they demanded adequate compensation to justify their extra hours of work. In this case, the amount subsequently paid to them best exemplifies _____. a. separation costs b. vacancy costs c. replacement costs d. training costs

Vacancy Costs

Employees leave by choice

Voluntary Turnover

Recruiting and advertising expenses, search fees, HR interviewer and staff time and salaries, employee referral fees, relocation and moving costs, supervisor and managerial time and salaries, employment testing costs, reference checking fees

Replacement costs

At Lumina Corporation, benefits for employees include employer-sponsored insurance coverage. The medical expenses of employees are covered entirely by the company in case of any accidents. In this case, which of the following needs in Maslow's hierarchy is the management in Lumina Corporation trying to fulfill? a. Physiological needs b. Safety and security needs c. Actualization needs d. Belonging and love needs

Safety and Security Needs

A major reason for categorizing an employee's departure as functional rather than dysfunctional is his/her performance level. a. True b. False

True

A no-fault policy in organizations allows employees to manage their own attendance. a. True b. False

True

According to Maslow's need theory, motivation is a goal-directed drive, and it seldom occurs in a void. a. True b. False

True

Churn tends to have a negative impact on the remaining employees in an organization. a. True b. False

True

Decreased customer service is a hidden cost of turnover. a. True b. False

True

Employee productivity is a tangible aspect of psychological contracts. a. True b. False

True

Employers can address job satisfaction by regularly surveying employees. a. True b. False

True

Functional turnover usually proves to be positive for organizations. a. True b. False

True

Higher unemployment rates usually mean more dissatisfied employees in the workforce. a. True b. False

True

Insufficient pay is one of the reasons that lead to employee turnover. a. True b. False

True

It is common for turnover to be high among newer employees during their first year. a. True b. False

True

One of the determinants of employees' willingness to exert effort is the degree to which they value the rewards offered by an organization. a. True b. False

True

Assumes that one group of factors, motivators, accounts for individual motivation -Hygiene factors can cause dissatisfaction with work Hygiene Factors: -interpersonal relations -company policy -supervision -salary -working conditions Motivators: -achievement -recognition -work itself -responsibility -advancement

Two Factor Theory

A software firm plans to reduce the number of talented designers in its workforce who leave their jobs. In this case, the firm seeks to focus on _____ turnover among the designers. a. uncontrollable b. positive c. functional d. voluntary

Voluntary

Lumina Corporation began operations in 2015 with 4900 employees. During the first half of that year, the company did not see any attrition. Profits were high, and the training and orientation programs were efficient. New hiring continued at a healthy pace and by mid-year, the employee strength of the company was 5000. However, in the second half of that year, 200 employees were laid off, and no new hiring took place. The turnover rate at Lumina Corporation in 2015 was _____. a. 50% b. 25% c. 4% d. 2%

4%

At Piaffe Products 15 employees had quit and an additional 10 were fired for poor performance in 2015. The mid-year employee count was 50 for that year. Piaffe's turnover rate for the year 2015 was _____. a. 10% b. 20% c. 30% d. 50%

50%

How does an exit interview help in employee retention efforts? a. By providing managers and supervisors with information for improving company efforts to reduce employee turnover. b. By providing managers and supervisors with information to increase involuntary turnover c. By providing managers and supervisors with information to control involuntary turnover d. By providing managers and supervisors with information to increase the incidence rate of the company

A

If the compensation for a job is within _____ of the market rate, it is considered to be competitive pay. a. 10% to 15% b. 5% to 20% c. 5% to 8% d. 8% to 10%

A

It is important to focus more on getting employees in their first year to stay because _____. a. those who stay for a year are more likely to extend their employment b. first-year employees are the most productive in an organization c. first-year employees are more knowledgeable than older employees d. first-year employees are more committed to organizational goals than older employees

A

Which of the following is the first step in the process of managing retention? a. Measurement and assessment b. Management intervention c. Evaluation and follow up d. Tracking of intervention results

A

Which of the following theorists developed the need theory? a. Frederick Herzberg b. Lyman Porter c. Abraham Maslow d. Carl Jung

Abraham Maslow

Which of the following is considered to be a motivator by the motivator/hygiene theory? a. Company policy b. Administration c. Advancement d. Salary

Advancement

Which of the following is used by employers to address the issue of job satisfaction among employees? a. The halo affect b. The Hawthorne effect c. A whistle-blower survey d. An attitude survey

Attitude Survey

Which of the following needs of employees do motivators, described by the two-factor theory, primarily try to fulfill? a. Physiological needs b. Belonging needs c. Safety needs d. Esteem needs

Esteem Needs

According to Maslow, after a person fulfilled his or her safety needs, he would immediately proceed to fulfill his _____. a. physiological needs b. belonging needs c. actualization needs d. esteem needs

Belonging Needs

A financial services firm conducted an attitude survey. It was found that although employees were generally satisfied with their pay, they were dissatisfied with the organization's management style, promotion practices, and training programs. To manage these concerns, it is recommended that the director of HR _____. a. work toward finding the employees who had given the negative feedback and increase their salaries b. announce the positive results of the survey, while beginning to work in private on solutions to the problems revealed in the survey c. hold group meetings with employees to convey the positive and negative survey results and get suggestions for improvements d. communicate the positive survey results, and argue against the negative results

C

A newly-opened real estate agency, has twenty employees on its payroll. In June 2016, Jane and Selin, each took three days of leave of absence from work. What was the absenteeism rate of the company in June 2016? a. 3 b. 6 c. 1 d. 2

C

Arden Insurance's claims processing facility has been a major employer in the town of Arbor for over 20 years, drawing mainly on workers with minimal skills and education. A large telemarketing firm is about to set up its business at Arden and it is planning to employ low-skilled workers. Which of the following statements is true in this case? a. As Arden and the marketing firm belong to different industries, the impact on Arden's workforce will be minimal since workers rarely switch between industries. b. The trained workforce will not leave even if the telemarketing firm offers higher pay than Arden. c. If Arden cannot offer higher wages, it needs to make sure that its current employees are satisfied with the intangible aspects of their jobs in order to retain them. d. Workers in small towns tend to be loyal to their employers and hence, Arden's current employees are likely to stay with Arden.

C

In which of the following cases is an employer applying the principles of positive reinforcement to curb absenteeism. a. He is conducting a company-wide session on the leave policy of the company. b. He is issuing a written warning to an employee for taking a lot of uninformed leaves of absence. c. He is giving cash to employees for meeting attendance standards. d. He is offering supportive guidance and personal counseling for employees who do not meet the attendance standards of the company.

C

Which of the following statements is true about turnover? a. It is illegal for an employer to continue to hire new employees while laying off other employees. b. When key individuals leave the firm, the turnover is often functional because they no longer act as a brake on the introduction of new technology and new work processes. c. The turnover of poor performers is considered functional. d. Organizations have little control over involuntary turnover.

C

Hiring new workers while laying off others -Employers sometimes complain about not being able to find skilled workers with the right skills while they are laying off other employees

Churn

Employees leave for reasons that could be influenced by the employer

Controllable Turnover

In a(n) _____ interview, individuals are asked to identify their reasons for leaving an organization. a. situational b. feedback c. appraisal d. exit

D

Which of the following cases exemplifies involuntary turnover? a. Jane worked hard on a project for four months, but when the project got shelved, she felt demotivated and quit the company. b. Lisa loved her job, but quit when she noticed that a lot of employees were being laid off. c. Mary announced her retirement a day after her 40th birthday. d. Pauline was asked to leave the company due to poor performance on a project that incurred huge losses for her firm.

D

Suggested by Lyman Porter and E. E. Lawler Individuals base decisions about their behaviors on their expectations of desired outcomes Behavior-outcome relationships -Effort-performance expectations -Performance-reward linkage -Value of rewards

Expectancy Theory

Which of the following exemplifies voluntary turnover? a. Jake a student intern at CL Corp. leaves the organization after his internship period is over. b. Paul, an employee of NML Corp. for five years, was fired owing to noncompliance with company policies. c. Karen is asked to resign by her manager due to her deteriorating performance. d. Gerald gets passed over for promotion twice despite being good at his job, and hence he decides to leave the organization.

D

Key individuals and high performers leave

Dysfunctional Turnover

Which of the following is considered to be an input by the equity theory? a. Educational level b. Pay c. Awards d. Recognition

Educational Level

This includes: -Motivation -Work ethic -Attendance -Job design

Effort Level Expended

The extent to which an employee's thoughts and behaviors are focused on his or her work and their employer's success

Employee Engagement

Which of the following is a replacement cost that is caused by turnover in a company? a. Cost of training materials b. Employee referral fees c. Overtime paid to existing employees d. Time spent in an exit interview

Employee Referral Fees

Which of the following is an intangible item in a psychological contract? a. Wages b. Benefits c. Attendance d. Fair treatment and loyalty

Fair Treatment and Loyalty

Psychological contracts between employers and employees are similar across cultures. a. True b. False

False

The performance-reward linkage described in the expectancy theory of motivation refers to employees' beliefs that working harder will lead to better performance. a. True b. False

False

Work rule violation is the most common reason for voluntary turnover. a. True b. False

False

Lower performing or disruptive employees leave

Functional Turnover

According to Herzberg's motivation/hygiene theory, _____ is a hygiene factor. a. Advancement b. Recognition c. Responsibility d. Working conditions

Working Conditions