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