BUS 300 EXAM QUESTIONS WITH MARKING SCHEME 2022 UPDATE | 100% CORRECT

11 Student: _______________________________________________________________________________________ True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False 1. Human Resources Management is the process of deciding the number and types of people your business needs, and then, recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals. 2. Human resource management is receiving increased attention because the shift from traditional manufacturing industries to service and high-tech manufacturing industries requires workers to have more technical job skills. 3. Recruiting is relatively easy today because qualified labor is so plentiful. 4. Today, human resource management is viewed as a clerical function of keeping personnel records and processing payroll. 5. The human resource function has become so critical that it is now a concern of all managers. 6. The human resource manager's job is easier today than it was in the past because a growing percentage of the work force is highly educated and well-prepared for jobs in the contemporary business environment. 7. The reason industries such as robotics and biotechnology have grown rapidly in recent years is that the United States has a surplus of highly educated and experienced workers available for employment in these fields. 8. One of the challenges facing today's human resource managers is a shift in the age distribution of the labor force, including aging baby boomers, many of whom are deferring retirement. 9. Today's workers have an increased demand for benefits tailored to their individual needs. 10. Today's workers place a lower priority on leisure time than they did in the past. 11. One challenge faced by today's human resource managers is the fact that workers overseas often work for lower wages and are subject to fewer laws and regulations. 12. Today's workers tend to be very loyal, as evidenced by declining turnover rates in most industries. 13. Underemployed workers present a challenge for human resources managers. These are people who are working beyond their capabilities. 14. The appropriate term for employees whose skills and knowledge go beyond their current work environment and work responsibilities are underemployed workers. 15. Very few experienced employees have skill and knowledge that is considered a higher level than what they use at their jobs. 16. According to the Thinking Green box, "Green Eggs and Ham", contemporary firms do not see a cost benefit to providing healthy snacks for employees. 17. Contemporary firms such as Google who care about their employees also care about what their employees eat, as well as what is offered in the company cafeteria. True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False 18. It is challenging for HR managers to deal with a declining economy that results in a short-term preference for part-time and/or temporary employees; and, a trend to outsource jobs, even though there are skilled employees who are willing to work. 19. The growing importance of human resource issues has led most firms to expect only its human resource specialists to tackle HR issues. 20. According to the Thinking Green box titled, "Green Eggs and Ham", your firm stands to benefit more by encouraging employees to eat healthier. 21. San Diego State University continues to serve its employees fatty meats and dairy products in its cafeteria and vending machines because it's cheaper; it does not want to promote one choice over another; and, it can convert any waste from these products to compost. 22. HR is focused on issues directly related to a person's job and with things that happen at work, as opposed to concerns that may affect one's work such as elder care and child care, but are not directly related to work. 23. Robotek International is a rapidly growing firm specializing in the production of sophisticated robots. One of the major problems Robotek is likely to face is a shortage of qualified workers. 24. Rick is in his early sixties. A few years ago he had planned to retire by the time he was sixty, but when the time came, he decided to continue working. In fact, not only is Rick still working, he has no intention of retiring or setting a time when retirement might occur. Rick's decision to keep working into his late sixties is unusual in today's labor market. 25. Elise is the manager in the finance department for a company that competes in a service industry. If her company is like most contemporary firms, Elise will leave almost all aspects of human resource functions to specialists in the human resource department. 26. Last year Adam lost his job as a skilled welder at an automobile assembly plant. After looking for work for several months, he finally accepted a job as an unskilled laborer at a local nursery. Although he is pleased to have work, Adam feels that his new job doesn't use his skills to their full potential. Adam is an example of an underemployed worker. 27. In one year's time, James developed gall bladder problems and needed surgery; he became a single parent; he willingly moved his older mom in to live with him in order to avoid placing her in a nursing home; and, he unexpectedly tore his rotator cuff playing softball during the summer. Overall, these are not considered circumstances that impact job performance because they fall outside of the workplace. HR managers need only be concerned with how James performs when he is at work. 28. The federal government has to minimized its role in human resource management. 29. Title VII of the Civil Rights Act of 1964 prohibits discrimination in hiring, firing, or compensation, based on race, religion, creed, sex, or national origin. 30. The Civil Rights Act of 1964 did not do enough to discourage discriminatory practices in the workplace. 31. Congress has given the Equal Employment Opportunity Commission broad powers to issue guidelines for acceptable employer behavior concerning employment opportunities. 32. The effectiveness of the EEOC has been limited because Congress never gave it any authority to enforce its mandates. 33. Affirmative action programs are the least controversial method of correcting job inequities created by past discrimination. 34. Reverse discrimination is the term the EEOC uses to refer to activities designed to "right past wrongs" that resulted from discrimination against women and minorities. True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False 35. The Civil Rights Act of 1991 gave victims of discrimination the right to seek punitive damages from the firms that discriminated against them. 36. Although the purpose of affirmative action was to "right past wrongs" against minorities, subsequent laws were passed to reverse earlier decisions that required some industries to maintain employment quotas when it came to the hiring of minorities. 37. Recent federal law clearly and strongly supports the notion that companies must use strict employment quotas to correct for past discriminatory actions. 38. The concept of "reasonable accommodations" means that all workers should be treated in the same manner. 39. The EEOC sets guidelines that human resource managers follow in the process of hiring and dismissing employees. 40. Most firms have trouble implementing the structural changes required by the Americans with Disabilities Act. 41. In their efforts to accommodate disabled workers, most firms experience difficulties with cultural changes, more so than with structural changes. 42. The Age Discrimination in Employment Act only prevents discrimination against employees who are over the age of 65. 43. The Age Discrimination in Employment Act permits age limits in professions where it can be established that ability to perform the job declines significantly with age. 44. One way human resource managers can keep current on human resource legislation and rulings is to read current business literature such as The Wall Street Journal and Business Week. 45. When it comes to human resource management issues, the federal government generally has taken a "hands off" approach since the early 1960s. 46. There are laws that protect employees from undo harm due to hazardous work conditions. 47. The Americans With Disabilities Act protects people who are born with physical disabilities, exclusively, but not those who acquire disabilities later in life. 48. The Americans With Disabilities Act protects qualified persons from discriminatory hiring practices, but does not require employers to provide suitable accommodations in the workplace, or opportunities for promotion. This is left to occupational safety laws. 49. Introduction to Business students know that the creation of laws are the first step that a society takes in order to act in an ethical manner. The U.S. government learned that unless it stepped in and created business laws, many firms would not concern themselves with fair practices when it comes to hiring, firing, and non-discriminatory actions. 50. Chip Dodson is a middle-aged white male employed by a large company. Recently, he was passed over for a promotion, despite receiving an excellent performance appraisal. The promotion went to a woman Chip felt was less qualified. His supervisor told him the woman got the promotion because the business was trying to comply with affirmative action guidelines. Critics of affirmative action would cite this situation as a case of reverse discrimination. 51. Ruth Gray is a manager who takes pride in her ability to be fair and impartial. She treats all workers the same way, and evaluates them all using the same standards. Ruth is likely to have difficulty with the adjustments needed to accommodate disabled workers. True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False 52. Sonny Skies is in his late fifties and loves his work as a pilot for a major airline. He wants to continue working for many more years. The Age Discrimination in Employment Act provides Sonny with the right to keep his job as long as his company is financially sound and he does not commit a felony. 53. Sean works for a large discount retailer. His wife works for a large bank with several branches. After recently adopting a child, the couple agreed that each would take six-weeks of leave from work in order to care for the newborn. According to the Family and Medical Leave Act, one, but not both are eligible for leave. 54. Zorn Enterprises hired several qualified soldiers returning from the war with hearing impairment to rehab its recently acquired apartment complexes. As a growing business, it is abiding by the law as currently stated. It is not required to adapt the work site to help these soldiers hear and communicate better with each other. 55. Mario and Marla are web development professionals for a popular high tech company. Due to injuries Mario sustained while serving in the Army Reserves, upon his return the company provided him and other returning soldiers with ergonomic desks and chairs that accommodates wheel chairs and bad backs. Although Marla is hearing impaired, the company does not need to consider providing her with a headset that magnifies sound because she is the only employee out of 200 requiring this accommodation. 56. Ramona is a recent HR hire for a security firm that hires retired law enforcement officers to provide security for retail malls across the nation. Her supervisor was impressed with Ramona's knowledge of current laws with respect to hiring practices, but asked her to quickly get up to speed on compensation and training laws. This is a reasonable request if Ramona plans to stay in the HR field. 57. Like all management, human resource management begins with planning. 58. The first step in the human resource planning process is to prepare a job analysis for each available position within the firm. 59. One purpose of a human resource inventory is to determine whether the labor force is technically up-to-date and well trained. 60. The result of a job analysis is a written document called a human resource inventory. 61. When you collect information about a particular job title, including how the job is performed and what it takes to perform the job, you are conducting a job analysis. 62. A job analysis consists of creating two documents called a job inventory and a performance appraisal. 63. A job specification is a statement of the job itself, while a job description is a statement about the person who does the job. 64. A job specification identifies the minimum qualifications a person must have to fill a particular job. 65. A job description identifies and describes the type of person who should perform the job, including important qualifications such as deduction, skills, and experience. 66. Human resource planning involves the assessment of both the future demand and the future supply of the various types of labor needed by the organization. 67. The first four steps in human resource planning all lead to the final step, which is the development of a strategic human resource plan. 68. The second step in human resource planning consists of conducting job analyses. Through observation and research, the manager will collect information on the kinds of things that each job title performs and how they are performed, as well as the skill and knowledge True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False requirements for doing the job. 69. Job analysis helps a manager answer the question: "How many workers in my organization have this particular skill"? 70. Essentially, the steps of the human resource plan require the HR professional to (1) take inventory of the type of workers (including the skills of the workers) that the business already has, in order to determine if it has the most up to date workforce for its needs; he/she then proceeds with (2) analyzing each job; (3) forecasting the firm's requirements for various job titles, and (4) making a determination of the future supply of skilled labor available to meet the demands of the business. Lastly, the HR professional (5) develops a human resource strategic plan. 71. Chris Schubert is a human resource manager with the Night Owl Publishing Company. He just finished creating a document that describes what editors do at their jobs. The study Chris has completed is known as a human resource inventory. 72. Lani wants to know how many workers in her company have certain specialized skills and have received training to update their qualifications within the past year. She could use a human resource inventory to help her find this type of information. 73. As an HR manager, Erin is assigned to updating all job descriptions and job specifications for her company. Erin will begin by collecting information about each job title, as well as learning about the kinds of activities and responsibilities that go with each job. After she thoroughly analyzes a job, she will write the job description and job specifications for that job. 74. Toni Matthews is interested in a position that has opened up at her firm, but she wants to find out more about the type of work and responsibilities involved in the job. A document that would have the information she wants is the job specification. 75. Career B has posted a variety of sales management positions. Some require the manager to have five to ten years of experience and preferably a Master's Degree in a field of science. These requirements are part of the job specification. 76. The Administrative Assistant II position at Idle Time Gaming, Inc. performs word processing and spreadsheet development for two vicepresidents, and other secretarial duties as needed. Other job responsibilities include maintaining the office operations budget, receiving guests, and supervising two clerical positions. These tasks are part of the job description for this position. 77. Helen Caldwell is a human resource manager for a firm that is planning to switch to a more sophisticated production method. As a human resource manager, one of Helen's duties will be to forecast the demand for the type of labor needed to implement the new method. 78. Recruitment is a set of activities undertaken for attracting qualified people, at the right time. 79. Because of the continuous flow of potential employees into the labor market, recruiting usually is the easiest task for a human resource manager to accomplish. 80. Union rules and company policies can make the recruitment process more difficult. 81. When recruiting, human resource managers must attract people who not only have the right skills, but also fit in with the corporate culture, and work well under the company's leadership style. 82. Small businesses usually find recruitment easier than large firms. 83. An advantage of hiring from within is that it improves employee morale. 84. External recruitment sources are usually cheaper to use than internal sources. True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False 85. Transfers and promotions are internal sources used by human resource managers to fill recruiting needs. 86. According to the "Spotlight on Small Business" box in Chapter 11, one way that a small business can attract qualified employees is to hire its customers. 87. Public and private employment agencies and college placement offices are internal sources used by human resource managers when they are recruiting employees. 88. When recruiting employees, human resource managers focus primarily on the skills and training of the people they are recruiting, and work on determining "fit" after the hiring process has occurred. 89. Advertisements in trade journals, private and public employment agencies, college placement offices, and trade associations are internal sources for recruitment. 90. Temporary help services, job fairs and the Internet are external sources for recruitment. 91. According to the Spotlight on Small Business box in Chapter 11, small businesses have an advantage over large businesses when it comes to recruiting good talent for two reasons: they can afford to pay better; and they already have great employees who recruit for them. 92. Rob is the human resource manager for a medium- sized corporation. He understands the value of hiring from within to fill positions whenever possible. This means that Rob relies extensively on promotions, transfers, and recommendations from current employees to find qualified employees. 93. As the HR manager at a small business, John handles most of his firm's recruiting efforts. Because John recruits for a small business he has a distinct advantage over larger competitor firms when it comes to finding the right people to fill his firm's needs. 94. The What's Hapnin' Corporation is about to diversify into an entirely new market. This move will create the need for several new positions in the production and marketing departments. However, the production technologies and the marketing environment in this new market are very different than in What's Hapnin's traditional market. The company is likely to rely on external sources to fill many of the positions created by its diversification. 95. Charlie plans to hire three outside sales professionals for his small non-profit organization that operates out of a suburb of Chicago. The new recruits know that after a three-month period, only one will remain. He is using a method of recruitment called part-time, temporary employment. 96. Selection is the process of gathering information and deciding who should be hired, under legal guidelines, for the best interests of the individual and the organization. 97. The cost of recruiting, processing, and training a new entry level employee is significant, and sometimes exceeds the annual salary earned by the employee. 98. The amount most businesses spend on selecting and training workers is relatively low. 99. Because current legal guidelines limit the types of questions that can be asked, completed job application forms contain very little useful information about job candidates. 100. Job applications can ask about educational background and past job experience. 101. Staff members from the human resource department seldom take part in initial screening interviews, but often participate in the follow- True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False up interviews of top job candidates. 102. Artificial intelligence software already exists that will review information provided by an applicant and e-mail a report to a manager with a recommendation as to whether the applicant should be interviewed. 103. During an interview, a manager should be careful not to ask the applicant about his or her family or other non-job related questions. 104. Trial periods are an effective method of reducing the firm's turnover costs. 105. Most firms today are checking the backgrounds of job applicants more carefully than they did in the past. 106. Services now exist that allow firms to perform quick background checks of potential employees. 107. Employment tests should focus on general job skills rather than skills that are related directly to the job. 108. It is not uncommon for companies today to test their employees and job applicants for drug use. 109. Part-time workers, seasonal workers and independent contractors are all examples of contingent workers. 110. The most common reason for hiring contingent workers is that they improve worker morale. 111. Though temporary workers are employed in most sectors of the economy, almost none have been hired to fill manufacturing jobs. 112. An increasing number of contingent workers are highly trained professionals. 113. It is not unusual to find persons with a variety of skills and skill levels serving as contingent workers. Contingent workers in the U.S. are usually under 25 years of age and may include independent contractors, middle management positions, and even college students who only want to work during the summer months. 114. According to the Making Ethical Decisions box in Chapter 11, it is not unethical to motivate temporary employees by alluding to future opportunities to become a permanent employee, even when you know that there are no additional permanent positions on the horizon. 115. All states in the U.S. require pre-employment physical exams for select groups of applicants. 116. Garrett works in his firm's human resources department. He is responsible for designing a new job application form for his firm. The questions Garrett includes on the new form should avoid broad questions about the applicant's beliefs, culture and family background, and should focus instead on factors such as the applicant's work experience, education, and career objectives. 117. HR manger Rob Spears is very concerned about the high cost of labor turnover at his firm. A good way for Rob's firm to eliminate high turnover costs at the company is to establish a policy of hiring workers for trial periods. 118. An HR manager at a large company interviewed several candidates for a position opening at her firm. Based on her interviews, she assesses that one candidate looks particularly promising. She will recommend a second interview between this candidate and the manager who will supervise the new employee. 119. Tri Cities Professional Printing wants to expand its services into new markets, but to remain competitive it needs to keep its costs low. If True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False it is like most firms, one way Tri Cities can save a lot of money is by reducing the time and effort it devotes to the selection of employees. 120. Sun Valley Produce finds it needs more workers during harvest times than at other times of the year. Hiring contingent workers could be an efficient way for Sun Valley to meet its temporary employment needs. 121. During good economic times, when unemployment is low, few people would voluntarily choose to be contingent workers. 122. Employee training focuses on short-term skills, while employee development focuses on long-term abilities. 123. Besides increasing productivity, a good training program can increase a firm's retention rates. 124. A recent study has shown that the most effective way for most firms to improve worker productivity is to increase expenditures on machinery and equipment. 125. One purpose of employee orientation programs is to initiate new workers to the organization's policies, practices and objectives. 126. Vestibule training is the most fundamental type of training available. 127. New technologies are assisting off-the-job training and creating more cost-effective methods for on-the-job training, when the job requires learning more intricate skills. 128. On-the-job training is best suited for jobs that are easily learned or require the employee to perform repetitive physical tasks. 129. Over the next ten to fifteen years, most firms will discontinue apprenticeship programs as changes in technology make this type of training obsolete. 130. In recent years, firms have expanded off-the-job training to include personal development subjects such as time management, health and nutrition, and language. 131. Online training gives employers the ability to provide consistent content that is tailored to specific employee training needs. 132. Vestibule training attempts to precisely duplicate both the methods and conditions of a real world job. 133. Job simulation is used to train astronauts, airline pilots, and ship captains. 134. The strategy of giving managers assignments in a variety of departments in order to expose them to different functions is called apprenticeship training. 135. The process of training and educating employees to become good managers, and then monitoring the progress of their managerial skills over time is called management simulation. 136. Most management training programs include methods such as on-the-job coaching, understudy positions, and off-the-job courses and training. 137. Networking is the process of establishing and maintaining contacts and using those contacts to develop strong relationships that serve as True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False informal development systems. 138. A mentor is a manager who supervises, coaches, and guides selected lower-level employees, and generally acting as their organizational sponsor. 139. Students can benefit from networking in college even before they take their first full-time job. 140. Women usually find it easier than men to obtain mentors and engage in networking. 141. Minority groups have made great strides in creating networking associations. For example, Black Enterprise Magazine sponsors networking forums. 142. The U.S. Supreme Court has ruled that women cannot be barred from "men only" clubs where, in the past, business contacts are often made and business activity occurs. 143. Grooming women and minorities for management positions creates fewer hiring opportunities for white men. 144. Firms spend time and money to train new employees so that they will work productively over the short-term. Development type activities such as assigning mentors and creating networks have long-term implications for employees and firms. 145. Distance learning training is gaining in popularity among all firms because employees can log-on to company tutorials at a time convenient to them and acquire the same training information as everyone else. 146. While efforts to train and develop women and minority managers appeal to many firms on the basis of legal and moral considerations, from an economic standpoint, it is rarely cost effective. 147. Keep on Truckin' School for Truck Drivers is proud of its training methods. Before its students are ever allowed on the road with a big rig, they are taught safe driving techniques with the help of sophisticated, computerized equipment that comes as close as possible to duplicating real driving conditions, right down to the sights, sounds, bumps and vibrations experienced on the road. Keep on Truckin' is using a training method known as job replication. 148. Reggie is learning to be a carpenter by working alongside experienced carpenters. After one more year of successful training, his union will classify Reggie as a journeyman. Reggie is participating in an apprenticeship program. 149. Hector Cruz is receiving training in maintaining and repairing assembly line robots at a school that uses equipment very similar to that used on his new job at Blast Off Technologies. His classroom training is called vestibule training. 150. Iris Bloom accepted a management position at the Sustainable Plant Life Corporation. In order to give her an appreciation of the different functional areas of her new company, she is required to spend six weeks in each of five different functional areas of the company, including production, research and development, accounting, marketing, and the HR management department. This type of training is known as contingency employment. 151. Jim Marlowe currently holds the position of assistant manager in his firm's credit department. He works closely with a more experienced manager to learn how to perform all of the functions involved in credit management. Jim believes he will soon be experienced enough to take over a senior position in his department. Jim has the benefit of serving as an understudy. 152. When Sally Miller was hired to a lower-level management position at Zinwick and Associates, she was introduced to Wendy Hopper, and told that Wendy would be her mentor. As a mentor, Wendy will coach and guide Sally, introduce her to the right people, and be her organizational sponsor. True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False 153. Several years ago, Drew's company sent him to Massachusetts Institute of Technology for an intensive program of leadership and business communication training. Although expensive, the firm was committed to investing in the development of key employees for the purpose of retention and promotion. This type of managerial development is known as off-the-job courses and training. 154. A performance appraisal is an evaluation in which the performance level of employees is measured against established standards to make decisions about promotions, compensation, additional training, or firing. 155. The primary reason that companies do performance appraisals is to improve worker performance. 156. Establishing performance standards is a crucial step in the performance evaluation process. 157. Most experienced workers have a clear idea of what is expected of them even if managers do not communicate their expectations explicitly. 158. Because of legal implications, managers should not use the results of performance appraisals to make decisions about promotions and compensation. 159. Performance standards should be understandable, measurable, and reasonable. 160. A performance appraisal provides an opportunity for employees to make suggestions about how a particular task could be better performed. 161. An effective performance appraisal system provides a way for the company to satisfy legal conditions concerning promotions, compensation, and policies. 162. The last step in the performance appraisal process is to discuss the results with the employee. 163. Performance appraisals are very useful for new, inexperienced workers and first-line managers, but have little value for top management. 164. Top level managers can benefit from having their performance evaluated by subordinates. 165. An employment appraisal may include a 360-degree review, which is an appraisal that includes job-related and non-job-related comments from a range of employees. 166. A 360-degree review will include the opinions of an employee's subordinates, as well as those above him/her in the organization structure, and those who work alongside the employee in comparable positions. 167. The main reason firms conduct performance appraisals is to establish a formal record of job performance that will protect them from lawsuits filed by unhappy workers. 168. One drawback of performance appraisals is that they cannot be completed for top management because there is no one above this level of management to carry out and evaluate the results. 169. Even employees who work on a busy production floor need performance appraisals. If the manager cannot conduct a closed-door appraisal session, the supervisor should conduct these wherever he/she can find room. 170. Due to the secret nature of performance standards, employees are only permitted to review these standards at the time when they receive True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False their appraisal. 171. Early in the year, manager John Jacobs set reasonable, understandable, and measurable performance standards and communicated these standards clearly to all team members. Because of these efforts, he should be prepared for the next step in the appraisal process. 172. When she met with John to discuss his performance appraisal, Regina noted that John had difficulty with managing his time on certain projects. One drawback of a performance appraisal is that it does not allow for feedback during the evaluation process. 173. Mollie Herndon is an office manager at Beaux Neaux Legal Services. The company's top management recently announced it was adopting a 360-degree review process as part of the performance appraisals of its office managers. Once this policy goes into effect, Mollie can expect her evaluations to include feedback from both the managers above her and the employees she supervises. 174. When Andrew administered the performance appraisals for his employees at California Canines, a producer of upscale clothing and accessories for pets, he made certain that he allowed at least one hour for each appraisal. He met with each employee in his quiet office, and gave each an opportunity to prepare a self-improvement program. His goal was to make each appraisal a positive experience for the employee. Andrew carried out the suggestions of experts in performing effective performance appraisals. 175. The marketing manager at Cool Rags, Inc., was very critical of the way one of the distribution analysts was handling negotiations with a manufacturer in Malaysia. On a number of occasions, she thought the discussions could have resulted in more of a win-win situation. In order to follow correct procedures, the manager made notes on these issues and decided to wait until the performance appraisal, eight months down the road, to discuss the situation with the analysts. If Cool Rags has a formal performance appraisal process in place, this is the best approach to this situation. 176. Companies compete with other firms for good employees. 177. Compensation is one of the main marketing tools a firm uses in its efforts to attract qualified employees. 178. Airlines, banks, hospitals and many other service organizations are so labor intensive that the cost of labor is their primary cost of operations. 179. The long-term success of a firm often depends on its ability to control employee costs and optimize employee efficiency. 180. Due to a strong economy, employees in manufacturing industries have not had to worry about taking pay cuts, also called "give-backs". 181. One objective of a carefully managed compensation and benefit program is to retain valued employees. 182. The Hay compensation system gives managers the flexibility to adjust pay for workers to reflect the value of their contribution to the firm. 183. Blue collar and clerical workers are normally paid a salary. 184. Bonuses can consist of cashless rewards as well as monetary payments. 185. In an ongoing study, Jay Schuster concluded that the best way to compensate members of a team is to base each member's pay on her or his individual performance. 186. Skill-based pay is a method of compensating teams in which base pay is raised when team members learn and apply new skills. True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False 187. An advantage of a skill-based system of pay for compensating teams is that such a system is easy to apply and administer. 188. Expenditures on fringe benefits have declined as a percentage of total payroll costs over the past several decades. 189. Fringe benefit payments account for about thirty percent of payroll costs today. 190. Employees sometimes prefer increases in fringe benefits rather than increases in wages or salaries, because many fringe benefits are not subject to taxes. 191. On-site haircuts and free breakfasts are examples of soft benefits some firms provide for employees. 192. A fringe benefits plan that allows employees to choose the benefits they want up to a certain dollar amount is known as a soft benefit plan. 193. Many firms are now contracting with outside companies to administer their employee benefits plans. 194. According to the Reaching Beyond Our Borders box in Chapter 11, human resource managers will be able to count on the superiority of American business practices as they help manage a global workforce. 195. One objective of a carefully managed compensation plan is to keep labor costs low. In order to achieve this objective, a firm should strive to keep wages, salaries and benefits at or below the compensation levels of its competitors. 196. According to the Reaching Beyond Our Borders box, titled, "Working Worldwide", companies must consider a number of compensation related issues for employees who work abroad. These may include currency conversion issues, special concessions such as travel and housing allowances, differences in health care standards in different countries, and even vacation benefits. 197. Recent trends suggest that the best way for firms to control labor costs is to focus on limiting the growth of wages and salaries rather than controlling fringe benefits. 198. The reason that companies use the gain sharing pay system and the skill based pay system to compensate teams of employees is that both are closely tied to profit performance. 199. Highly compensated executives sometimes prefer fringe benefits such as club memberships, company cars, and more vacation time, as opposed to higher salaries because most often these benefits are not taxable income. 200. Some firms have found that employees prefer cafeteria-style benefit plans. For these plans, the employees vote on the benefits that they prefer, and only those benefits receiving the highest votes are offered to employees. 201. As a salesman, Rob Lytle's pay is based on a percentage of his total sales. This type of pay arrangement is known as a commission. 202. When Tim joined Alamo Scientific as a sales manager, part of his sign-on bonus included the opportunity to buy up to 500 shares of the company's publicly traded stock at $10 per share, during the first three months of employment. The stock was trading on the NASDAQ exchange for $22 per share. Tim's new company was offering a dividend reinvestment plan. 203. Employees at The Eastern Eagle newspaper are paid according to the Hay system. Ralph and Steve do the same type of work and report to the same supervisor. Ralph has worked at the newspaper for 14 years while this is Steve's third year. The supervisor believes Steve is the more enthusiastic and hard-working of the two. Under the Hay system, Steve will probably earn more than Ralph. True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False 204. The Amabala Corporation is reorganizing to make more extensive use of teams. The company plans to continue paying its workers based on their individual performance. This approach is likely to maximize the success of the team by encouraging all team members to exert their best effort. 205. Employees at the MAX Card Company, a worldwide credit card business are criticizing the company's fringe benefits package because it forces all employees to accept the same benefits regardless of differences in their personal needs. In fact, they even offer some soft benefits such as an on-site day care that over 80% of the employees are too young or too old to use. MAX should consider a cafeteria style benefits plan. 206. Examples of soft benefits that a firm might offer are: onsite medical physician services, and exercise centers. 207. Flextime plans are popular with employees because they allow them to work fewer hours while still earning the same income. 208. A common feature of flextime plans is the establishment of core times when all employees are expected to be at their job stations. 209. Sun Microsystems has experimented extensively with flextime and has found that overall it has a positive impact on productivity. 210. Flextime plans are particularly well suited for workers on an assembly line. 211. In a compressed workweek, employees work more hours each day, but work fewer days each week. 212. Almost 10 million U.S. workers now telecommute, working several days each month, at home. 213. Telecommuting can actually save employers money by reducing their need for office space. 214. Job sharing has received a great deal of attention in recent years as more women with small children have entered the labor force. 215. Job sharing tends to increase absenteeism and tardiness, because part-time workers are not as dedicated and loyal as full-time workers. 216. A disadvantage of job sharing is that it requires a firm to hire, train, motivate, and supervise more employees. 217. Most companies that have tried job sharing have concluded that the extra cost of hiring and training additional workers outweigh its benefits. 218. "Hot desking" means sharing a desk with another employee, while "hoteling" means reserving office space when you plan to be at the office. 219. The benefit of a firm establishing "hoteling" is that it can reduce operating costs because it eliminates the need for office space, for employees that telecommute. 220. Most employees who use flextime prefer to work independently of others. In order to accommodate this preference, businesses permit them to clock in and out as they wish, as long as they put in the necessary 40 hour work week. On some days, they may arrive at 6:00 a.m., while on other days they may decide to come in at Noon. 221. Akiko Animoto works for a company that allows her to choose when she begins and ends her workday, as long as she works a required number of hours and is at her job station at certain specified core times. Akiko's company is using a compressed workweek plan. True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False 222. Olivia's company announced that it will implement a compressed workweek schedule. If Olivia takes part in this plan, she will be allowed to work fewer hours each week, as long as she completes all assignments. 223. Melville Bank is about to implement a job sharing plan. The bank is likely to find that scheduling workers for peak periods will become easier as the result of this policy. 224. Managers at a local bank are discussing the absentee problems they are experiencing at their west side location. Although the workers do a good job and serve customers well when they are on the job, they tend to report to work late at least two days each week, and often want to leave early. Job sharing might be a good staffing arrangement for the managers to consider. 225. The Hottie Potatee potato bar franchise chain does not permit employees at corporate headquarters to work flextime schedules. The CEO communicated with employees and explained that shift workers at the corporate owned potato bars cannot reasonably work that way and in order to keep things fair, he prefers that the corporate employees work regular hours from 8:00 a.m. until 5:00 p.m. or from 1:00 p.m. to 11:00 p.m., which is the other regular shift where they need staff. Workers at fast food operations do not have the opportunity for flextime schedules because they must be at work prior to the store's serving hours and usually after the store closes. They cannot plan their own schedule, but must comply with the hours that management needs help. 226. Central Communications, a company that provides land line, cell phone, Internet, and television services for residential customers experienced poor customer call care ratings with its overseas call center service. As a recent Introduction to Business student, you would suggest that Central implement home-based call agents. This will cost them a little more in office space and benefits, but it will certainly increase its customers' perception of their service. 227. Internal promotions (from within the company) are a cost effective way of filling positions within a firm because the employees filling the position are already familiar with the organization's culture and procedures. 228. Transferring an experienced worker to a new position at the same level within an organization can be an effective way to motivate the worker to remain with the company. 229. The "employment at will" doctrine maintained that a firm could only fire a worker if it could demonstrate "just cause." 230. In recent years, many companies have avoided hiring permanent workers during periods of growth by using temporary employees and outsourcing some of their functions. 231. A golden handshake refers to the severance pay that is offered to a worker that is laid off when the firm downsizes. 232. Exit interviews by a third party can be an effective way for a firm to prevent future losses of valuable employees. 233. Recent court cases include drug-addicted employees who claim their addiction is an illness, and therefore, they are protected from wrongful discharge under the American With Disabilities Act. 234. The prevalence of flatter corporate structures in recent years has increased the number of workers that firms promote. 235. Management is turning to a strategy of offering more lateral transfers due to the fact that many companies are operating under a flatter organization structure. 236. The doctrine of "employment at will" means that employees must be allowed to keep their jobs as long as they are willing and able to perform their required duties. Under this doctrine, employers can only fire or layoff an employee if the firm is in serious financial difficulty or the employee is grossly incompetent or has committed a felony. 237. The Golden Handshake is a popular method of firing or dismissing senior members of your workforce. True False True False True False True False 238. Marketing manager Sam Woodall has worked for Family Care Pharmaceuticals for 36 years. He fondly remembers the "good old days" when he could fire a worker for just about any reason. He feels that today's laws and regulations limiting his ability to fire workers undermines his authority and forces him to keep employees that don't measure up to his standards. Sam's views suggest he would favor working in a state that implements the policy of "employment at will." 239. Top managers at Unifaze Corporation have decided that the company must downsize, but are concerned about the effect the reduction in employment will have on the morale of the remaining employees. One way top management could keep morale from suffering would be to establish an early retirement program. 240. Liz hired Max Maxwell right out of college! Max had brought a lot to the plate at the Brooklyn Sporting Goods firm where Liz served as Marketing Director over the baseball, basketball, and hockey lines. Yesterday, Max submitted his resignation after only one year on the job, and disclosed that he is leaving sporting goods and taking a job in Canada where he will be marketing a hockey arena. Liz is beside herself and has decided to personally conduct an exit interview. In evaluating this situation, you agree that Liz is probably the best person to conduct this interview. 241. Barney's company creates promotional campaigns for other businesses. He just learned that the firm lost the Lisle Account, a longstanding customer. On the short-term, this will significantly reduce the need for several creative writers and web content developers the company has on staff. As he prepares to call each employee in for dismissal, Barney reviews the best way to approach this inevitable task. He decides that it is best not to tarnish the image of the company so rather than tell each that they lost an important account, he will blame the need to reduce the workforce on new technology the firm is implementing and his personal evaluation of their work. He also plans to offer a two-month severance, as long as each signs a no-compete agreement good for one year. In that way, he may be able to call them back if new accounts emerge. All of these strategies are considered good procedures that would surely avoid "wrongful discharge lawsuits." 242. _____________ is the process of evaluating human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals. A. Staffing B. Performance evaluation and response C. Human resource management D. Job analysis 243. The ultimate resource of a firm is its: A. business plan. B. marketing mix. C. capital budget. D. employees. 244. One of the key functions of human resource management is: A. departmentalizing. B. recruiting. C. budgeting. D. auditing. 245. Today, human resource management has become so important that in many firms it has become: A. a function performed by managers in all areas of the organization. B. the sole responsibility of the firm's legal staff. C. a function handled only by specialists in the human resource department. D. a function handled only by the firm's top management. 246. __________ workers have a higher skill level than their current job requires. A. Structurally unemployed B. Frictionally unemployed C. Contingent D. Underemployed 247. The changes in the American business system that have had the most dramatic impact on the workings of the free enterprise system are the changes in: A. the labor force. B. technology. C. financial regulations. D. consumer behavior. 248. In coming years, high tech growth areas such as computers, biotechnology, and robots are likely to experience a: A. surplus of labor. B. significant decline in market demand, leading to a stagnant labor market. C. shortage of skilled labor. D. stable equilibrium in the labor market. 249. Which of the following statements best describes the current view of the role of human resource management within a firm? A. human resource management is largely a clerical function that involves keeping records, processing payroll, and making sure that federal regulations are met B. human resource management has become so complex that only highly trained human resource specialists should make human resource decisions C. human resource management functions have become so important that in many firms all managers now perform them D. changes in technology have largely done away with the need for a separate human resource department 250. Which of the following is a challenge that is facing the human resource managers of today? A. too many unemployed scientists and computer engineers B. an increasing number of Gen Yers in the workforce C. a shift in employee attitudes toward work D. an increased demand for uniformity in benefits offered to employees 251. Which of the following statements about human resource management opportunities and challenges is most accurate? A. the age composition of the labor force is becoming younger B. workers are becoming less loyal to their firms, resulting in higher turnover C. workers are now demanding that more of their compensation be in wages and salaries and less in fringe benefits D. the number of workers who have received training in high tech fields far exceeds the number of job openings in these areas 252. Which of the following statements about human resource management opportunities and challenges is most accurate? A. Shifts in the economy have led to a huge pool of skilled and unskilled workers from declining industries that are either unemployed or are underemployed. B. Workers now would rather have more income rather than more leisure. Therefore, many employees now want to work more than 40 hours per week. C. So many people have sought training in high tech areas such as robotics and computers that there is likely to be a huge surplus of labor in high tech industries. D. Workers now desire more stability and predictability in their careers, so they now give their employers more loyalty and expect more loyalty from their employers in return. 253. When Carl Remmick lost his job as a highly skilled craftsman at a metal working shop, he searched for a good job for several months before finally accepting a position as a maintenance worker at a local community college. He is happy to have a job, but frustrated by the fact that he had to settle for a job that did not take full advantage of his skills. Carl is a(n): A. structurally unemployed worker. B. semi-employed worker. C. underemployed worker. D. quasi-employed worker. 254. Frank Lehman is a human resource manager at a major corporation. If Frank's company is like most firms today, which of the following statements about Frank's job is likely to be the most accurate? A. Most of Frank's time will be devoted to clerical duties such as processing payroll checks and keeping employee files updated. B. Frank's job will be simpler in the future than it was in the past, because the percentage of new workers entering the labor force who are poorly educated and unprepared for work is slowly but steadily declining. C. Government laws and regulations concerning hiring, worker safety, pay, and unionization will make Frank's work complex and challenging. D. Frank and his fellow human resource managers will be given complete responsibility for performing all human resource functions within the organization. 255. The theme of "Green Eggs and Green Ham", referencing the Thinking Green box in Chapter 11 is: A. green employees need mentors. B. the right food not only increases brain power and productivity of workers, but it may create cost savings for employers and be better for the environment. C. providing a hearty breakfast before each work shift is proving to be very costly for many businesses including airline companies and motivation companies that traditionally followed this course of action. D. younger workers do better with health foods; while older workers become difficult if a company does not provide junk food in its vending machines. 256. The Grandola Granola Company decided to limit the types of foods offered in its onsite snack shack, right from the start. The company provides all varieties of granola that it produces "free" to employees on duty. It also offers yogurt, dried and fresh fruit, and pure fruit drinks, tea, and water. According to the Thinking Green box in Chapter 11: A. food companies are taking the lead in green alternatives because they produce materials that are organic and can replenish the Earth. Other firms are finding it more difficult to join the food and beverage industry in its effort. B. aging baby boomers are beginning to worry about their health. Since there are still so many in the workforce, companies are having to comply with their new, more healthful eating habits. C. healthy alternatives may be good all the way around, but we are finding that they are a cheaper alternative to fatty foods, as well. Companies like saving money. D. healthy alternatives are becoming commonplace in contemporary firms that care about the health and fitness of their employees and also the health of the environment. 257. Title VII of the Civil Rights Act of 1964: A. gives all citizens over the age of 18 the right to vote regardless of race, religion, sex, or creed. B. prohibits firms from using employment testing as a means of selecting employees and determining which employees should be promoted. C. requires all firms with over 100 employees to have an affirmative action plan. D. prohibits discrimination based on race, religion, sex, creed, or national origin in matters such as hiring, firing, training, and compensation. 258. The _______________ was created by the Civil Rights Act of 1964, and has since become a formidable regulatory force in the administration of human resource management. A. National Labor Relations Board B. AFL-CIO C. Equal Employment Opportunity Commission D. Affirmative Action Transition Commission 259. Probably the most controversial program enforced by the Equal Employment Opportunity Commission concerns: A. mandatory retirement. B. affirmative action. C. equal pay reporting. D. green card requirements for illegal aliens. 260. Discrimination against whites and males is referred to as: A. de facto discrimination. B. qualification dissonance. C. conditional inequality. D. reverse discrimination. 261. The Civil Rights Act of 1991: A. declared affirmative action plans unconstitutional. B. requires any firm with over 600 employees to file an annual report with the Department of Labor identifying the steps it has taken to eliminate discriminatory practices. C. allows victims of discrimination to seek punitive damages. D. is the first law to declare reverse discrimination illegal. 262. The ____________ protects individuals over the age of 40 from discrimination based on age with respect to issues such as hiring, promotions, job benefits, and assignments. A. Age Discrimination in Employment Act of 1967 B. Equal Employment Opportunity Act of 1998 C. Fair Labor Standards Act of 1938 D. Employee Rights and Responsibilities Act of 1983 263. Employers must verify that employment candidates are eligible to work in the U.S. as mandated by: A. Manpower Development and Training Act B. Civil Rights Act of 1991 C. Immigration Reform and Control Act D. Occupational Safety and Health Act 264. The Family and Medical Leave Act: A. provides paid leave for women who choose to stay home with newborn infants. B. provides unpaid leave of up to 12 weeks for males or females for the birth or adoption of infants, or in the case where it is necessary to care for an immediate family member who may be ill. C. provides unpaid leave of up to 6 weeks for couples (male or female) who have a new baby. D. was recently eliminated by the Supreme Court due to an employment shortage. 265. An important U.S. government organization charged with setting human resource management guidelines is: A. the EEOC (Equal Employment Opportunity Commission). B. the OHSA (Occupational Health and Safety Administration). C. the WPA (Work Progress Administration). D. the MPDA (Manpower Development Administration). 266. According to U.S. business law, accommodation means: A. treating all employees fairly. B. making certain that if one employee gets medical leave during a fiscal year, that all other employees get an equal amount of leave during the year. C. careful consideration before firing someone and hiring two younger persons to replace him/her. D. providing services for employees according to their special needs. 267. Which of the following statements about the Civil Rights Act of 1964 is most accurate? The Civil Rights Act: A. was very controversial when first enacted, but a series of court rulings has largely eliminated its influence on businesses and their treatment of employees. B. explicitly protects whites and males from reverse discrimination. C. is the law that led to direct government involvement in human resource practices that involved discrimination due to sex, color, race, or religion. D. attracted a great deal of attention, but had a limited impact because it only deals with discrimination based on race and ignores other discriminatory practices related to sex, religion, or national origin. 268. The Equal Employment Opportunity Act gave the Equal Employment Opportunity Commission the authority to: A. prevent firms from firing workers based on union affiliation. B. issue guidelines for employer conduct in administering equal employment opportunity programs. C. set salary schedules for protected groups. D. require firms to pay women and minority workers more than white males for the same work. 269. If your company is selling its products or services to the U.S. government, you should study Human Resource law that pertains to: A. the Better Business Bureau in your local area of operation. B. the limits that the EPA (Environmental Protection Agency) places on the pollutants you can emit in your foreign factories. C. the total number of employees you can hire. D. nondiscrimination and affirmative action laws when doing business with the federal government. 270. Which of the following statements about how current HR law views disabilities is accurate? A. The law varies depending upon how the employee acquired the disability. B. Disabilities include diseases such as epilepsy, cancer, and diabetes. C. Disabilities refer to physical but not mental disorders. D. Any disorder that does not require the employee to adapt the work environment to accommodate the employee. 271. Evan McConnell is angry because he was passed over for a promotion even though he believes he was the most qualified candidate. He heard through the company grapevine the promotion went to a female because the firm was afraid of possible action by the EEOC if they did not select a female. What Evan is experiencing is known as: A. reverse discrimination. B. double indemnity. C. de facto discrimination. D. compensatory discrimination. 272. Which of the following statements is the most accurate description of the impact the Americans with Disabilities Act of 1990 (ADA) has had on businesses? A. ADA has had no real impact, since most businesses have always been sensitive to the needs of disabled workers. B. Most firms have found that the structural changes needed to comply with ADA requirements have been very difficult and expensive to implement. C. Most firms are finding that the cultural changes required by ADA are more difficult to implement than the structural changes. D. Businesses have found that even with the changes required by ADA, disabled workers are simply not capable of handling most types of jobs. 273. Minnie A. Dent is completi