D351 EXAMINATION QUESTIONS AND VERIFIED
ANSWERS
Describe the term "wage-dividend plan." - The percentage of profits paid to employees
is based on the amount of dividends paid to stockholders.
Describe the term "gainsharing (or bonus based on achievement)." - A bonus payment
based on achieving an operational goal. For example, increased customer retention.Increase =
gain
Describe the term "cash plans." - The payment of profit shares at regular intervals
Define indirect compensation. - Non-monetary benefits provided to workers, such as
pension funds, mobile phones, training, health and life insurance and employee services.
Describe the term "piecework." - Piecework is a form of variable compensation where
employees are guaranteed a standard pay rate for each unit of output
Which group incentive plan leads to enhanced productivity and subsequently creates
additional profits. - Gainsharing
In what circumstances is ranking performance appraisal method useful? - When there
are limited resources (money, promotions, etc.)
What is required from the supervisor under a forced distribution performance appraisal
method? - To assign only a certain proportion of subordinates (i.e. 5%, 10%, etc.) to
each of several categories with respect to each other.
Under what circumstances is the validity of peer appraisals reduced? - If the
organizational reward system is highly competitive and based on performance, and if there is
a low level of trust among subordinates.
What are the three ranking methods? - StraightAlternativePaired comparisonNote:
Regardless of the ranking method used, an organization ends up with a list of employees from
the best to the worst.
An organization wants to identify the top 10% of its employees for a new leadership
development program. Which performance appraisal method should the organization use? -
Forced-Distribution - This method requires managers to assign only a certain
proportion of subordinates (i.e. 5%, 10%, etc.) to each of several categories with respect to
each other.
, What is the advantage of paired comparisons - An advantage to this approach is that it
forces the assessor to compare the performance of each incumbent to all other incumbents,
one by one.
What are the four implicit HR objectives? - 1. Improve productivity2. Improve quality of
work life3. Ensure legal compliance4. Ensure ethical behavior
How can HR managers make a significant contribution toward productivity improvements? -
Two areas HR managers can make a significant contribution toward productivity
improvements are work organization and design.
What are the six major trends that have been identified as influencing the work environment?
- (1) Increased competition(2) The costs and benefits associated with HR utilization(3)
Productivity changes (resulting from changes in technology, capital investment, the 2008-2014
recession, capital utilization, outsourcing, and government policies)(4) The increasing pace
and complexity of social, cultural, legal, demographic, and educational changes(5) The
symptoms of dysfunction in the workplace(6)Societal trends of the 21st century
What business and industry knowledge must an HR professional possess? - (1) strategic
planning; (2) financial statements; (3) sales, marketing, and production techniques; (4)
knowledge of how to use tools such as data processing and management information
systems.
What is the purpose of a SWOT analysis? - SWOT is a tool allows managers to assess
the firm's internal abilities and vulnerabilities to the external environment.
What is the difference between tactical work and strategic work? - Tactical Work is the
work HR professionals do every day such as responding to manager request, ensuring legal
compliance, answering questions regarding policies.Strategic Work, on the other hand,
focuses on the future and on the improvements and innovations needed to create an
exceptional company.
What are the two categories ethical theories are often divided into? - Consequentialist
and deontological
What is the focus of deontological theory? - Uses rules to distinguish right from wrong.
Requires disregarding the possible consequences of our actions when determining what is
right and what is wrong.
What is the focus of consequentialist theory? - judges whether or not something is
right by what its consequences are.
Why is being a learning organization beneficial? - There is an increased acquisition and
transfer of knowledge throughout the organization regardless of level.
ANSWERS
Describe the term "wage-dividend plan." - The percentage of profits paid to employees
is based on the amount of dividends paid to stockholders.
Describe the term "gainsharing (or bonus based on achievement)." - A bonus payment
based on achieving an operational goal. For example, increased customer retention.Increase =
gain
Describe the term "cash plans." - The payment of profit shares at regular intervals
Define indirect compensation. - Non-monetary benefits provided to workers, such as
pension funds, mobile phones, training, health and life insurance and employee services.
Describe the term "piecework." - Piecework is a form of variable compensation where
employees are guaranteed a standard pay rate for each unit of output
Which group incentive plan leads to enhanced productivity and subsequently creates
additional profits. - Gainsharing
In what circumstances is ranking performance appraisal method useful? - When there
are limited resources (money, promotions, etc.)
What is required from the supervisor under a forced distribution performance appraisal
method? - To assign only a certain proportion of subordinates (i.e. 5%, 10%, etc.) to
each of several categories with respect to each other.
Under what circumstances is the validity of peer appraisals reduced? - If the
organizational reward system is highly competitive and based on performance, and if there is
a low level of trust among subordinates.
What are the three ranking methods? - StraightAlternativePaired comparisonNote:
Regardless of the ranking method used, an organization ends up with a list of employees from
the best to the worst.
An organization wants to identify the top 10% of its employees for a new leadership
development program. Which performance appraisal method should the organization use? -
Forced-Distribution - This method requires managers to assign only a certain
proportion of subordinates (i.e. 5%, 10%, etc.) to each of several categories with respect to
each other.
, What is the advantage of paired comparisons - An advantage to this approach is that it
forces the assessor to compare the performance of each incumbent to all other incumbents,
one by one.
What are the four implicit HR objectives? - 1. Improve productivity2. Improve quality of
work life3. Ensure legal compliance4. Ensure ethical behavior
How can HR managers make a significant contribution toward productivity improvements? -
Two areas HR managers can make a significant contribution toward productivity
improvements are work organization and design.
What are the six major trends that have been identified as influencing the work environment?
- (1) Increased competition(2) The costs and benefits associated with HR utilization(3)
Productivity changes (resulting from changes in technology, capital investment, the 2008-2014
recession, capital utilization, outsourcing, and government policies)(4) The increasing pace
and complexity of social, cultural, legal, demographic, and educational changes(5) The
symptoms of dysfunction in the workplace(6)Societal trends of the 21st century
What business and industry knowledge must an HR professional possess? - (1) strategic
planning; (2) financial statements; (3) sales, marketing, and production techniques; (4)
knowledge of how to use tools such as data processing and management information
systems.
What is the purpose of a SWOT analysis? - SWOT is a tool allows managers to assess
the firm's internal abilities and vulnerabilities to the external environment.
What is the difference between tactical work and strategic work? - Tactical Work is the
work HR professionals do every day such as responding to manager request, ensuring legal
compliance, answering questions regarding policies.Strategic Work, on the other hand,
focuses on the future and on the improvements and innovations needed to create an
exceptional company.
What are the two categories ethical theories are often divided into? - Consequentialist
and deontological
What is the focus of deontological theory? - Uses rules to distinguish right from wrong.
Requires disregarding the possible consequences of our actions when determining what is
right and what is wrong.
What is the focus of consequentialist theory? - judges whether or not something is
right by what its consequences are.
Why is being a learning organization beneficial? - There is an increased acquisition and
transfer of knowledge throughout the organization regardless of level.
