MGT 3320: EXAM #4 Practice Questions

job evaluation

A ________ system is composed of compensable factors and a weighting scheme based on the importance of each compensable factor to the organization. A. job analysis B. job description C. job design D. job specification E. job evaluation

steelworker

A(n) ________ is likely to be a part of an industrial union? A. carpenter B. electrical worker C. painter D. shoemaker E. steelworker

$7.25 per hour.

As per the Fair Labor Standards Act, the current minimum wage stands at A. $8.85 per hour. B. $9.40 per hour. C. $7.25 per hour. D. $10.50 per hour. E. $8.30 per hour.

employees should be paid at the rate of one and a half times their hourly rate for overtime worked beyond 40 hours in a week.

According to the Fair Labor Standards Act, A. employees should be paid at the rate of one and a half times their hourly rate for overtime worked beyond 40 hours in a week. B. federal contractors should pay employees no less than the prevailing wages in the area. C. outside sales employees are included in the coverage. D. employers who are not aware of the overtime work done by the employees are violating the law. E. occupations that have hourly wages are exempt from the law.

the sorting effect

An example of ________ is a public relations firm offering employee stock options to attract a higher caliber of applicants for positions in the organization. A. merit pay B. the balanced scorecard C. actual theory D. equity theory E. the sorting effect

It is a union security provision that requires a person to join the union within a certain amount of time after being hired.

At orientation for new employees you remind them that their jobs are part of a union shop. What does that mean? A. It is a union security provision that requires a person to join the union within a certain amount of time after being hired. B. It is a union security provision that requires the payment of dues but not a membership. C. It is a union security provision that requires a person to be a union member before being hired. D. It is a union contract provision that requires an employer to deduct union dues from employees' paychecks. E. It is a union contract provision that prohibits a person from joining the union within 30 days of employment.

child care at or near their worksites.

At the highest level of child care provision, firms provide employees with A. vouchers or discounts to buy products for their children. B. child care at or near their worksites. C. information about the costs of available child care. D. phone numbers of child care facilities in the area. E. comprehensive information about the quality of available child care.

Consolidated Omnibus Budget Reconciliation Act (COBRA)

Bettina has been laid off due to downsizing. She is worried about her health coverage as she has just found out she is pregnant. The HR benefits specialist tells her that she can continue to pay for health coverage for up to 36 months due to which law? A. Affordable Care Act (ACA) B. Americans with Disabilities Act (ADA) C. Employee Retirement Income Security Act (ERISA) D. Consolidated Omnibus Budget Reconciliation Act (COBRA) E. Equal Employment Opportunity Commission (EEOC)

Insurance risks can be more easily pooled in larger groups.

Companies can purchase insurance (or self-insure) at a lower rate because of which of the following? A. Insurance risks can be more easily pooled in larger groups. B. Companies can achieve great bargaining power if they have fewer employees. C. It's easier to get a lower rate if all covered employees have families. D. The government regulates insurance costs so that they remain the same no matter how many employees are covered. E. Insurance risks can be more easily pooled in smaller groups.

benefit from union activities without belonging to a union.

Delilah and Everett were able to get pay raises and two extra vacation days as a result of negotiations, even though they are not members. They are free riders because they A. pay their dues but are not members of a union. B. benefit from union activities without belonging to a union. C. act as facilitators in the negotiation processes. D. are management's representatives in the contract grievance process. E. are neutral agents who assist in conflict resolution.

employer's experience rating

Employers pay for workers' compensation costs. There is a range of cost based on which of the following? A. type of competition faced B. employer's profitability C. employee's profitability D. employer's experience rating E. employee's experience rating

a loss of revenue thereby increasing the cost of the strike to management.

If an airline's employees decide to strike, there will be A. a loss of revenue thereby increasing the cost of the strike to management. B. no loss of revenue, since there are other airlines to choose from. C. no impact, since there is little demand for this service. D. significant numbers of replacement workers. E. little impact, as there is the availability to bus and train travel.

merit pay

In ________ programs, annual compensation increases are usually linked to performance appraisal ratings. A. skill-based pay B. gainsharing C. merit pay D. incentive pay E. cost-based pay

individual incentive

In a(n) ________ plan, performance is usually measured as physical output and the payment is not rolled into the base pay. A. skill-based B. profit-sharing C. individual incentive D. merit pay E. gainsharing

individual productivity.

In incentive pay, performance measures are primarily based on A. a supervisor's appraisal. B. individual productivity. C. company profits. D. company stock returns. E. production costs.

classifying employees as contractors rather than employees

In which of the following ways may staffing practices change in response to benefit cost controls? A. increasing benefit costs per hour by having employees work more hours with fixed benefit costs B. classifying employees as contractors rather than employees C. increasing the number of full-time workers D. rehiring previously laid-off employees E. paying temporary workers for time not spent working

the institutionalization of industrial conflict.

Labor unions' major benefit to society is A. providing workers with more power than employers. B. the institutionalization of industrial conflict. C. providing unilateral control to management. D. ensuring absolute equality under federal law. E. issuing management rights clauses.

Competitors possibly will win over high performers with stronger incentive intensity.

National Robotics Inc. has weak incentives and poor performance pay. What is most likely to happen to the employees? A. Sales, executives, and stockbrokers will have greater motivation. B. High performers will be motivated to stay with the organization and improve their efficiency. C. There is a greater chance for unintended, undesirable behavior driven by pay-linked incentives. D. Employees will take excessive risks for greater premium and compensation. E. Competitors possibly will win over high performers with stronger incentive intensity.

help unemployed workers find new jobs.

One of the objectives of the unemployment insurance program is to A. offset lost income during voluntary unemployment. B. help unemployed workers find new jobs. C. provide an incentive for employers to downsize. D. encourage people to leave their company and look for a new job. E. provide workers with a cushion if they need extended leave from their company.

delayering.

Online Solutions, a software company, changed its pay structure from 3,400 job titles and 14 pay grades to a simpler structure with 1,000 jobs and 7 pay grades. The managers were then asked to choose pay levels that were based on the market. This is an example of A. decentralizing. B. departmentalizing. C. forecasting. D. delayering. E. benchmarking.

job evaluation

Organizations usually develop a market pay policy line based on the key jobs for which there are both ________ and market pay survey data available. A. job evaluation B. structured reviews C. evidence-based data D. point factor systems E. compa-ratios

firing employees for union organizing.

Section 8(a)(3) of the National Labor Relations Act (NLRA) prohibits employers from A. retaliating against employees who are not part of unions. B. refusing to bargain in good faith with union representatives. C. firing employees for union organizing. D. interfering with union activities. E. declining proposals made by union representatives.

change health-related behaviors both on and off work time.

Sun Coverage & Co. has instituted an incentive program that includes smoking cessation and exercise. The goal of this wellness program is to A. provide treatment for ailing employees. B. manage health care costs by helping employees in need. C. provide rehabilitation services. D. manage insurance-related queries from employees. E. change health-related behaviors both on and off work time.

crowding

The ________ hypotheses argues that women were historically restricted to entering a small number of occupations and, as a result, the supply of workers far exceeded demand, resulting in lower pay for such occupations? A. macho B. strain C. crowding D. contact E. calibration

compa-ratio

The ________ is an index of the correspondence between actual and intended pay. A. pay grade B. pay midpoint C. compa-ratio D. range spread E. pay range

pay level.

The ________ is the average compensation—including wages, salaries, and bonuses—of jobs in an organization. A. range spread. B. compa-ratio. C. pay level. D. job structure. E. pay grade.

point-factor system

The ________ is the most widely used method in job evaluation and yields scores for each compensable factor. A. range spread approach B. point-factor system C. market survey system D. pay policy line E. pay grade approach

skill-based pay approach

The ________ is what a company would adopt if it wanted a pay structure that rewards employees based on their knowledge and competency. A. delayering approach B. skill-based pay approach C. pay grade approach D. market survey data approach E. pay policy line approach

employers.

The unemployment insurance program is financed largely through federal and state taxes on A. employees. B. employers. C. retired personnel. D. the general public. E. employment agencies.

False

True or False: A process used by organizations to compete for talent, benchmarking involves comparing an organization's current practices with its practices in the past.

True

True or False: In collective bargaining, an important element of power is the relative ability of each party to withstand a strike.

True

True or False: Internal job worth can be measured using the administrative tool of job evaluation.

True

True or False: Relying exclusively on merit pay or individual incentives may result in high levels of work motivation but unacceptable levels of individualistic and competitive behavior.

True

True or False: The duty of fair representation mandated by the National Labor Relations Act (NLRA) requires that all bargaining unit members, whether union members or not, have equal access to and representation by the union in the grievance procedure.

False

True or False: The equity theory suggests that people evaluate the fairness of their situations by comparing them with how they were treated in their previous organization.

the closed shop

Under the National Labor Relations Act (NLRA), which of the following is the strongest union security arrangement, yet is illegal? A. the agency shop B. the checkoff provision C. the fair share provision D. the union shop E. the closed shop

short-run pay and benefits level

When an organization has a growth strategy, the ________ tend to be below market level. A. long-term time orientation B. short-run pay and benefits level C. long-run pay level D. long-run benefits levels E. decentralization of pay decisions

make centralized pay decisions.

When an organization is using concentration strategy, it will A. have short-run pay levels below the market. B. have a long-term orientation. C. make centralized pay decisions. D. maintain high variable pay levels. E. have benefit levels below the market.

have pay levels that are below market levels in the short run.

When an organization is using growth strategy, it will A. have pay levels that are below market levels in the short run. B. have a time orientation that is short-term. C. make centralized pay decisions. D. not share risks with employees. E. have benefit levels that are above market levels.

Reinforcement theory.

When high performance is not followed by a monetary reward, future high performance is less likely according to A. Herzberg's two-factor theory. B. Reinforcement theory. C. Freud's psychoanalytical theory. D. McGregor's theory X. E. Theory Z.

a sense of ownership.

When profit-sharing takes a broad view of what needs to be done to make the organization more effective, it may encourage A. individual competition. B. a knowledge of business. C. a sense of ownership. D. problem-solving orientation. E. learning and flexibility.

Trina lost her job due to outsourcing.

Which of the following individuals is eligible for unemployment benefits? A. Roberto was discharged for willful misconduct. B. Juan is not actively seeking work. C. Kalani quit her job voluntarily. D. Lois is just out of college and looking to start her career. E. Trina lost her job due to outsourcing.

The link between pay and performance is less obvious under ownership than under profit sharing.

Which of the following is a difference between profit-sharing plans and employee ownership plans? A. Unlike ownership plans, base pay is not reduced when profit-sharing plans are introduced. B. Ownership plans focus on the success of the organization as a whole, unlike profit-sharing plans. C. Profit-sharing plans promote individual competition, whereas ownership plans promote group competition. D. The link between pay and performance is less obvious under ownership than under profit sharing. E. Ownership plans promote individual competition, whereas profit-sharing plans promote group competition.

Carlito has no formal authority but, rather, acts as a facilitator and go-between in negotiations.

Which of the following is a mediator? A. Carlito has no formal authority but, rather, acts as a facilitator and go-between in negotiations. B. Renee provides inside information about the employees to the management. C. Sonro provides a solution that is binding on the parties. D. Kylie is responsible for ensuring that the terms of the collective bargaining contract are enforced. E. Valente represents the management during the collective bargaining procedure.

In the United States, union membership and coverage are declining in the private sector.

Which of the following is a trend seen in union membership and coverage? A. In the United States, union membership and coverage are declining in the private sector. B. Codetermination is mandated by law in the United States. C. Union wage premium in the United States is substantially lower than in other advanced industrialized countries. D. The labor movement in the United States is broader than that in Western Europe. E. The weak history of deep, class-based divisions in the United States has contributed to its high unionization rate.

Organizations so typically offer them that they have become institutionalized.

Which of the following is a unique aspect of benefits? A. There is no question of legal compliance. B. Organizations so typically offer them that they have become institutionalized. C. It is less complex to understand the value of a dollar in a benefits package than in a salary. D. Medical and retirement plans are not part of benefits. E. Benefits, unlike direct compensation, are never mandated by law.

Ivan, a union representative, makes a contract that requires his employer to hire employees satisfactory to the union.

Which of the following is an example of a union unfair labor practice? A. Alaina, a union member, is threatened by Tomer, her boss, with loss of benefits if she votes for a union. B. Juanita, an operations head, threatens to close down a plant if organized by a union. C. Gabriela, a new employee, refuses to join a union. D. Paolo, a nonunion employee, spies on union meetings. E. Ivan, a union representative, makes a contract that requires his employer to hire employees satisfactory to the union.

stock option

Which of the following is an example of an ownership plan used in compensation systems? A. gainsharing plan B. profit-sharing program C. group incentive D. stock option E. individual incentive plan

an interesting work assignment

Which of the following is most likely to provide intrinsic motivation? A. a sponsored vacation to Italy B. a monthly salary of $12,000 C. medical insurance D. paid leave for three months E. an interesting work assignment

The employee discusses the grievance verbally with the supervisor.

Which of the following is the first step in a typical employee-initiated grievance procedure? A. The steward and management representative meet and discuss the grievance. B. The employee discusses the grievance verbally with the supervisor. C. The grievance is submitted to the production superintendent. D. The employee consults the industrial relations staff for resolution. E. The grievance is appealed to arbitration for a binding decision.

Labor market competition places a lower bound on pay levels.

Which of the following is true of labor market competition? A. The labor market focuses primarily on competing through providing a quality product or service at a competitive price in the market. B. The labor market places an upper bound on labor costs and compensation. C. The upper bound placed by the labor market is more constrictive when labor costs are a very small share of the total costs. D. An indirect payment such as Social Security, a major component of labor costs, is not included in calculating the average cost of an employee. E. Labor market competition places a lower bound on pay levels.

Strikes are illegal at the federal level and in most states.

Which of the following is true of labor relations in the public sector? A. Union growth has been the lowest among white-collar employees. B. Union membership declined drastically since the 1960s. C. Executive Order 10988 prohibits collective bargaining by federal employees. D. The Civil Service Reform Act of 1978, Title VII, established the Federal Mediation Board. E. Strikes are illegal at the federal level and in most states.

The bulk of day-to-day interaction between labor and management takes place at the local union level.

Which of the following is true of local unions? A. The local of an industrial-based union typically covers a city or a region. B. In a craft-oriented union, the local corresponds to a single large facility or to a number of small facilities. C. Administration of the contract is beyond the powers of a local union. D. The bulk of day-to-day interaction between labor and management takes place at the local union level. E. Negotiations involved in collective bargaining are not handled at the local union level.

It permits greater flexibility in moving employees from job to job.

Which of the following is true of the pay grade approach to developing a pay structure? A. It permits greater flexibility in moving employees from job to job. B. It increases the administrative burden of setting up rates of pay. C. It has a range spread that is smaller at higher levels. D. It ensures that all of the jobs have fair rates of pay. E. It tends to contribute to reduced labor costs.

Family and Medical Leave Act

Which of the following provides 12 weeks of unpaid absence from work to care for a seriously ill child, spouse, or parent if the organization has at least 50 employees living within a 75-mile radius? A. Child and Family Services Improvement and Innovation Act B. Child and Family Services Act C. Child Support Recovery Act D. Family and Medical Leave Act E. Affordable Care Act

to compete for talent

Why would an organization use benchmarking? A. to compete for talent B. to compete for market share C. to compete on costs D. to compete on product differentiation E. to compete for consumer loyalty

defined contribution

You have the option to choose a retirement plan. You want to choose a plan that promises a specific benefit level, so you decline the ________ plan. A. defined benefit B. term benefit C. defined contribution D. flex benefit E. cash balance

Key jobs

________ are those that are common to many organizations. A. Hi-tech positions B. Nonkey jobs C. Executive positions D. Key jobs E. Noncompetitive jobs

Medical and other insurance

________ benefits involve the highest costs. A. Legally required B. Retirement and savings plan C. Payment for time not worked D. Supplemental pay E. Medical and other insurance

Defined benefit

________ plans insulate employees from investment risks, which are borne by the company. A. Unemployment benefit B. Defined contribution C. Estate insurance D. Defined benefit E. Pension service

Section 401(k)

________ plans permit employees to defer compensation on a pretax basis. A. Supplemental benefit B. Section 401(k) C. Money purchase D. Specified retirement benefit E. Profit-sharing

Gainsharing

________ programs offer a means of sharing productivity gains with employees based on group or plant performance. A. Profit-sharing B. Individual incentives C. Pay raise D. Employee stock ownership plans E. Gainsharing

Job structure

________ refers to the relative pay of jobs in an organization. A. Pay level B. Job structure C. Internal equity D. Underreward equity E. Overreward equity

Corporate campaign

________ seeks to exert public, financial, or political pressure on employers during the union-organizing process. A. Arbitration B. Checkoff provision C. Corporate campaign D. Integrative bargaining E. Mediation