MGMT405 Chapter 12

Long-term variable pay plans provide employees ownership opportunities as the value of the organization increases are applicable only in the ____. A. public sector B. private sector C. technology sector D. none of the above

B. private sector

Which of the following statements about negligent hiring lawsuits against employers is accurate? A. monetary damages are usually leveled against the employee found to be at fault B. the plaintiff must present evidence the injury or harm was a foreseeable consequence of hiring the unfit employee C. the employer has the initial burden to present evidence of proper hiring practice in such cases D. suits of this kind are decreasing as companies in the private sector recognize the liabilities involved

B. the plaintiff must present evidence the injury or harm was a foreseeable consequence of hiring the unfit employee

Which of the following statements about disclaimers is false? A. They can appear in almost any written documents made available to job applicants or employees. B. They can be used to limit employee rights. C. They are never oral. D. Their receipt by employees should be acknowledged in some formal way.

C. They are never oral.

The most sensible approach for addressing the issue of applicant truthfulness would be to ________. A. receive applicant information in good faith since the majority of applicants will be honest and it is not fair to inconvenience everyone with more verification because of a few "bad apples" B. treat applicants with trust and they will respond with honesty in most cases C. have applicants provide independent, third-party documentation of all job information provided on application blanks D. verify the applicant information provided that is deemed most vital

D. verify the applicant information provided that is deemed most vital

An advantage of the "competitive strategy" for negotiating initial job offers is that this strategy repeatedly yields acceptances from the highest quality (KSAOs) applicants

False

If a letter of acceptance says an employee needs to work on weekends, but the employer makes an oral promise that the employee will not have to work on weekends, the oral statement could be legally binding

False

It is best to ask for proof of employment eligibility prior to making a job offer

False

Orientation should focus on the person/job match exclusively.

False

The law is relatively indifferent between the use of written contracts and the use of oral contracts

False

The least common form of long-term variable pay in the private sector is the cost of living adjustment

False

The three elements required for a contract to be legally binding are: offer, acceptance, and written documentation

False

With a tight labor market, the organization will be in a position to provide lower cost offers

False

A disclaimer on an employment application blank stating that the employee can be terminated "with or without cause" and "with or without notice" is legally enforceable

True

A third party is someone other than the employer or the offer receiver who speaks on their behalf in the establishment or modification of employment contracts

True

In general, the employment relationship is an at-will one

True

In order for "promissory estoppel" claim to apply when a job offer is made, the offer recipient must suffer a detrimental effect

True

It is extremely important for organizations to be sure to keep promises that they make to job applicants in order to avoid subsequent lawsuits

True

It is very important for an organization to know, in advance, whether an individual will be classified as either an employee or an independent contractor.

True

Non-compete agreements that would keep employees from indefinitely practicing their trade or profession are not enforceable

True

Orientation is likely to be more effective when newcomers have realistic information about job requirements and rewards before the job begins.

True

Statements in employee handbooks can be construed as employment contracts

True

The lowball strategy will be especially effective for desperate or unknowledgeable employees

True

The strategic approach to job offers involves considering the total package of extrinsic and intrinsic rewards that the offered job will provide to the finalist.

True

The use of short-term incentive pay, like commissions or production bonuses, is common among private sector organizations

True

Upon acceptance, a formal job offer in which consideration is provided to employees becomes a contract

True

When rejecting job applicants, most organizations do so with a rejection message to the applicant that is short and vague in content

True

Whereas orientation focuses on the initial and immediate aspects of newcomer adaptation, socialization emphasizes helping the newcomer fit into the job and organization over time

True

Written job offers should normally contain terms of acceptance that require acceptance without revision

True

As a general rule concerning job offers, it can be said that __________. A. "low ball" job offers are expensive to the organization B. "competitive" job offers have no important drawbacks C. "competitive" job offers tend to leave room to negotiate D. "competitive" offers usually stimulate the most positive reactions on the part of offer recipients

C. "competitive" job offers tend to leave room to negotiate

______ prohibit current or departing employees from the unauthorized use or disclosure of information during or after employment. A. Non-compete agreements B. Retainers C. Confidentiality clauses D. Mixed-motive contracts

C. Confidentiality clauses

Studies of job seekers graduating from hotel administration and engineering programs showed that job offers involving _____ are seen more favorably. A. pay contingent on performance B. pay raises based on group performance C. a flexible benefits package D. pay pegged to skills

C. a flexible benefits package

A hot skill premium is a permanent pay premium added to the regular base pay to account for market escalation in pay for certain skills in extreme shortage

False

Access to typical salary information for various occupations or job titles is very hard to come by, especially for job seekers

False

A currently employed offer receiver normally incurs costs for leaving and will expect a "make whole" offer amounting to 20-30% of the offer receiver's current base pay

True

A non-compete agreement restricts a departing employee from competing against the organization

True

To reduce the likelihood of negligent hiring lawsuits organizations should _____. A. emphasize characteristics like licensure requirements, criminal records, and references B. avoid gathering too much KSAO information because it can be used to demonstrate that an organization "should have known" an employee would be a problem C. refuse to fire individuals with a history of mental illnesses D. none of the above are useful to prevent negligent hiring suits

A. emphasize characteristics like licensure requirements, criminal records, and references

A temporary pay premium added to the regular base pay of an employee to account for a temporary market escalation in pay for certain skills in extreme shortage is called a(n) ____________. A. hot skill premium B. tight labor market adjustment C. key skill premium D. none of the above

A. hot skill premium

Which of the following is likely to be a contingency related to a job offer? A. satisfactory reference checks B. job salary C. job benefits D. job vacation privileges

A. satisfactory reference checks

Flat pay rate job offers are least appropriate for _______. A. situations where applicants have very dissimilar KSAOs B. jobs with a plentiful supply of applicants C. situations where management desires to avoid inequities in starting pay among new employees D. jobs where applicants have KSAOs of similar quality

A. situations where applicants have very dissimilar KSAOs

A _____ is a right to purchase a share of stock for a predetermined price at a later date. A. stock option B. profit share C. realized dividend D. mutual fund

A. stock option

In using information about competitors to structure job offers, which of the following statements is not useful as a general guideline? A. It makes a difference who the competitors are. B. Competitive offers should always be matched to ensure acceptance. C. Analysis of competitive advertisements should be performed in order to have the "market information" needed to prepare effective job offers. D. Trade associations should be consulted for competitive information whenever possible.

B. Competitive offers should always be matched to ensure acceptance.

Which of the following circumstances makes it less likely an oral statement about weekend work would be legally enforceable as a contract term? A. The statement was made in the workplace. B. The statement is not supported by a written policy. C. The statement was made by an organizational manager. D. The statement was a specific one.

B. The statement is not supported by a written policy.

Consideration in a contract entails __________. A. evidence that both parties agree to the terms as offered B. a polite exchange of information C. the exchange of something of value between the parties to the contract D. none of the above

C. the exchange of something of value between the parties to the contract

Most rejection messages sent to applicants are _________. A. specific in terms of the reason for the rejection B. not conveyed by formal means C. vague in content D. designed carefully to "soften the blow" of the rejection

C. vague in content

Which of the following is true regarding long-term variable pay? A. Stock options qualify for special tax treatment for employees. B. Small public organizations are more likely to provide stock options than large public organizations. C. Stock options guarantee a fixed rate of return on investment. D. None of the above

D. None of the above

Effective orientation training should include __________. A. sources of influence in the organization B. integrating the newcomer into the work unit and team C. conducting active mentoring for the newcomer D. all of the above

D. all of the above

The delivery of newcomer socialization should be the responsibility of __________. A. his/her supervisor B. a mentor or sponsor C. the HR department D. all of the above

D. all of the above

Which of the following elements are required for a contract to be legally binding and enforceable? A. offer B. acceptance C. consideration D. all of the above

D. all of the above

From the newcomer's perspective, likely components for inclusion in the socialization process include addressing _________. A. performance proficiency B. organization goals and values C. politics D. all of the above are correct

D. all of the above are correct

The goal(s) of the socialization process is(are) ___________. A. to achieve an effective person/job match B. to achieve an effective person/organization match C. to help the newcomer fit into the job in the long-term D. all of the above are true

D. all of the above are true

Non-compete agreements should be drafted in such a way that they cover ____. A. high-value employees B. experienced employees C. all employees D. only managerial, technical, and scientific staff

D. only managerial, technical, and scientific staff

The sales approach to presenting a job offer has been adopted by many organizations because ________. A. mechanical presentations of job offers have been proven not to work B. they apply to all situations C. they cost less than mechanical presentations D. they may increase the likelihood of bringing job offers to closure

D. they may increase the likelihood of bringing job offers to closure

If a co-worker promises a prospective employee overtime hours while visiting the prospective employee in his/her home, this promised "term" of the employment would likely be legally enforceable

False

Terms and conditions of employment offered by employers unintentionally are not legally enforceable

False

The "one year rule" ensures that oral agreements for time intervals greater than one year are legally enforceable

False

When job offer negotiating strategies are to be used as part of an aggressive EEO/AA recruitment program, the strategy most appropriate to be used in such a situation is the "competitive strategy."

False

Although organizations are strongly encouraged to check the authorization to work of all employees, they cannot discriminate against applicants on the basis of country of origin

True

An organization should provide a definite starting date for an offer, or else the acceptance and consideration of the offer occur whenever the new hire actually begins to work

True

Applicant dishonesty is a common problem as relates to the reporting of the applicant's current salary

True

Having applicants sign release statements so the employer can do background investigations is a legal means for minimizing the possibility of negligent hiring

True

Hiring bonuses can be problematic because recipients of these bonuses might take the bonus and then quit soon after

True

One way to improve employee socialization outcomes is to provide realistic requirement information regarding job requirements and rewards

True

Organizations can gauge the likely reactions of job applicants to job offers not only by conducting formal research, but also by gathering information about various preferences from the offer recipient during the actual recruitment/selection process

True

What is the relationship between orientation and socialization activities? A. Orientation covers job content, socialization covers social content. B. Orientation is usually a small group activity, socialization is one on one. C. Orientation is typically an immediate activity for new hires, which overlaps with more long-term socialization. D. Orientation is formal, socialization is informal.

C. Orientation is typically an immediate activity for new hires, which overlaps with more long-term socialization.

Which of the following statements about written contracts is false? A. The law favors written contracts over oral contracts. B. A statement on a job application blank could be construed as a written contract. C. Written statements in employee handbooks that are unintended as contracts cannot be construed as contracts. D. Internal job posting notices can be construed as written job contracts.

C. Written statements in employee handbooks that are unintended as contracts cannot be construed as contracts.

A _____ contract provides certainty to both the new hire and the organization regarding the length of the employment relationship. A. variable premium B. fixed annuity C. fixed-term D. latent variable

C. fixed-term

Which of the following statements about reneging on job offers is false? A. reneging is often caused by sudden changes in circumstances, such as a change in health status B. there are substantial legal concerns about reneging C. most employers feel the level of reneging has increased dramatically in recent years D. solid evidence on reneging and why it occurs is lacking

C. most employers feel the level of reneging has increased dramatically in recent years

Terms and conditions that the organization states the employee is entitled to upon departure from the organization constitute _________. A. pay rates B. health benefits C. severance packages D. life insurance

C. severance packages

In order to improve the chances of winning a law suit based on "promissory estoppel," the most important point the plaintiff must demonstrate is that ____. A. the promise was accurate B. the promise was made in good faith C. the defendant reneged on the promise D. the promise was withdrawn, resulting in a detrimental effect

D. the promise was withdrawn, resulting in a detrimental effect

Negligent hiring claims are made when an employer fails to provide adequate compensation and benefits to a new hire

False

One reason organizations often opt out of flat pay rates in favor of differential pay rates, is because job applicants are similar in KSAO quality

False

Research suggests that socialization programs are equally effective when conducted online relative to person-to-person

False

Research has shown that ____ facilitates employee socialization to a new job. A. clarifying job requirements and knowledge and skills to be acquired B. minimizing biasing contact from current co-workers C. providing a highly positive recruitment message regarding job requirements at rewards D. all of the above

A. clarifying job requirements and knowledge and skills to be acquired

Most organizations provide some form of specific "just cause" guarantee regarding terminations during their job offers

False

Which of the following is not a choice involved in a strategic approach to job offers? A. determining a compelling offer the finalists will find difficult to turn down B. deciding which short and long term pressures to respond to in an offer C. deciding on specific pay levels that will apply to all individuals D. determine whether there will be a "standard offer" for all finalists or whether "enhanced offers" will be possible for some finalists

C. deciding on specific pay levels that will apply to all individuals

The most commonly negotiated element of a job offer is ___. A. severance packages B. educational assistance C. salary D. paid time off

C. salary

Under the requirements of the Immigration Reform and Control Act, employers must ___________. A. adjust pay scales for alien status B. verify employability status for aliens only C. verify employability status for all potential employees D. verify employability status for applicants before an offer is extended

C. verify employability status for all potential employees

Clarifying job requirements and knowledge of skills are the only demonstrated methods for consistently improving employee socialization

False

Golden handcuff agreements legally bar employees from quitting a job for a specific period of time

False

Hiring bonuses tend to enhance employee performance motivation

False