HRM_Test2

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  1. A major drawback of the behavioral observation scale is:

    A. it discards many examples in creating the rating scale.
    B. its inability to provide specific guidance to employees regarding expected performance.
    C. the amount of information required.
    D. its subjective nature.
    E. its difficulty of use.
    C. the amount of information required.
    (this multiple choice question has been scrambled)
  2. A(n) _____ is a gathering at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating the influence of rating errors.

    A. performance leadership council
    B. calibration meeting
    C. LMS
    D. reliability meeting
    E. 360-degree performance appraisal
    B. calibration meeting
    (this multiple choice question has been scrambled)
  3. T/F In the tell-and-sell approach, managers tell employees their ratings and then let the employees explain their side of the story.
    F
  4. To improve the performance of underutilizers, managers should:

    A. identify development opportunities.
    B. demote them from their current position.
    C. link rewards to performance outcomes.
    D. withhold pay increases.
    E. offer temporary assignments for skill development.
    C. link rewards to performance outcomes.
    (this multiple choice question has been scrambled)
  5. T/F Attribute-based performance methods are tightly linked to organizational strategy.
    F
  6. Which of the following is true of the attribute approaches to performance management?

    A. They can be applied to a wide variety of jobs and organizations.
    B. They result in high strategic congruence.
    C. They are the least popular way to measure performance in organizations.
    D. They provide specific guidance and feedback to employees.
    E. They are difficult to develop.
    A. They can be applied to a wide variety of jobs and organizations.
    (this multiple choice question has been scrambled)
  7. In which performance technique are managers given three performance rating scales per dimension and asked to indicate whether the employee's performance is above (+), at (0), or below (-) the statements?

    A. Mixed-standard scale
    B. Graphic rating scale
    C. Behaviorally anchored rating scale
    D. Behavioral observation scale
    E. Forced distribution
    A. Mixed-standard scale
    (this multiple choice question has been scrambled)
  8. The administrative purpose of a performance management system refers to:

    A. developing employees' knowledge and skills.
    B. the ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs.
    C. measuring each employee's performance to identify areas where expectations are not being met.
    D. linking employees' behaviors with the organization's goals.
    E. linking to the organization's goals and communicating the goals and feedback about performance to employees.
    B. the ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs.
    (this multiple choice question has been scrambled)
  9. The relevant aspects of employee performance are based on:

    A. aspects of the employee's personality.
    B. management's beliefs and values.
    C. the outcomes of a job analysis.
    D. the employee's psychological contract.
    E. the nature of the company's products and services.
    C. the outcomes of a job analysis.
    (this multiple choice question has been scrambled)
  10. T/F The critical-incident method is a behavioral approach to performance management.
    T
  11. Which rater error leads employees to believe that no aspects of their performance need improvement?

    A. Contrast error
    B. Horn error
    C. Similar to me
    D. Halo error
    E. Central tendency
    D. Halo Error
    (this multiple choice question has been scrambled)
  12. How does an organization promote fairness and reduce political behavior in the appraisal system?

    A. Have employees develop a performance appraisal system.
    B. Train managers to use the appraisal process.
    C. Require that managers give feedback once a year during annual appraisal.
    D. Encourage managers to recognize accomplishments that only employees have identified.
    E. Use different performance standards to evaluate different employees.
    B. Train managers to use the appraisal process.
    (this multiple choice question has been scrambled)
  13. T/F In terms of measuring performance, a major advantage of ranking systems is that they often are linked to the organization's goals.
    F
  14. Performance management has a(n) _____ purpose, meaning that it serves as a basis for improving employees' knowledge and skills.

    A. developmental
    B. strategic
    C. systematic
    D. tactical
    E. administrative
    A. developmental
    (this multiple choice question has been scrambled)
  15. T/F Core self-evaluation refers to pervasive low levels of satisfaction in all aspects of life, compared with other people's feelings.
    F
  16. _____ is an employee's recognition that demands of the job are incompatible or contradictory.

    A. Role underload
    B. Role conflict
    C. Role ambiguity
    D. Role autonomy
    E. Role overload
    B. Role conflict
    (this multiple choice question has been scrambled)
  17. _____ is generally the last stage in an alternative dispute resolution system.

    A. Peer review
    B. Outplacement counseling
    C. Open-door
    D. Mediation
    E. Arbitration
    E. Arbitration
    (this multiple choice question has been scrambled)
  18. If peer review does not lead to a settlement, a neutral party from outside the organization hears the case and tries to help the people in conflict arrive at a settlement. This process is called:

    A. arbitration.
    B. open-door policy.
    C. mediation.
    D. negotiation.
    E. progressive discipline.
    C. mediation.
    (this multiple choice question has been scrambled)
  19. Thomas Fenton was terminated from his job with no explanation of why he was let go. It is likely that Thomas has NOT experienced:

    A. interactional justice.
    B. distributive justice.
    C. arbitration
    D. outcome fairness.
    E. procedural justice.
    A. interactional justice.
    (this multiple choice question has been scrambled)
  20. When employees cannot work with management to make changes, they may engage in ____, taking their charges to the media in the hope that if the public learns about the situation, the organization will be forced to change.

    A. progressive discipline
    B. class actions
    C. media manipulation
    D. whistle-blowing
    E. scapegoating
    D. whistle-blowing
    (this multiple choice question has been scrambled)
  21. You are concerned about an "unacceptable level" of job dissatisfaction among a number of work teams in your organization, and you have determined the primary cause of the dissatisfaction is the uncertainty that exists among employees regarding what is expected of them. Based on this limited information, the most appropriate intervention would be:

    A. job enrichment.
    B. role analysis technique.
    C. role contribution technique.
    D. use of negative affectivity as a selection criterion.
    E. job rotation.
    B. role analysis technique.
    (this multiple choice question has been scrambled)
  22. The positive or negative bottom-line opinions that individuals have of themselves is known as:

    A. egoism.
    B. negative affectivity.
    C. self-efficacy.
    D. core self-evaluation.
    E. self-portrait.
    D. core self-evaluation.
    (this multiple choice question has been scrambled)
  23. When organizations adjust pay to reflect working conditions or local labor markets, such adjustments are called:

    A. green-circle rates.
    B. red-circle rates.
    C. pay differentials.
    D. bonuses.
    E. rank-and-file adjustments.
    C. pay differentials.
    (this multiple choice question has been scrambled)
  24. Which of the following is a potential disadvantage of skill-based pay systems?

    A. Discouraged job enrichment
    B. Difficulty in obtaining market data
    C. Lesser paperwork
    D. Lack of implementation of new skills
    E. Employees "topping off"
    D. Lack of implementation of new skills
    (this multiple choice question has been scrambled)
  25. T/F Product markets place an upper limit on the pay organizations can offer employees.
    T
  26. _____ are most common for white-collar jobs and for jobs that are not covered by union contracts.

    A. Pay ranges
    B. Pay rates
    C. Pay ranks
    D. Pay differentials
    E. Pay grades
    A. Pay ranges
    (this multiple choice question has been scrambled)
  27. T/F Under a two-tier wage plan, employees doing the same job are paid two
    different rates, depending on their background and training.
    F
  28. Organizations under pressure to cut labor costs may respond by:

    A. postponing hiring decisions.
    B. providing employees more benefits.
    C. increasing staff levels.
    D. retaining staff levels.
    E. hiking pay levels.
    A. postponing hiring decisions.
    (this multiple choice question has been scrambled)
  29. A rate of pay for each unit produced is known as:

    A. hourly wage.
    B. net pay.
    C. salary.
    D. gross pay.
    E. piecework rate.
    E. piecework rate.
    (this multiple choice question has been scrambled)
  30. "Shrinkage" is also referred to as:

    A. negligence.
    B. delayering
    C. employee theft.
    D. vicarious liability.
    E. inventory control.
    C. employee theft.
    (this multiple choice question has been scrambled)
  31. A company that views employees as resources is most likely to use a(n) _____ pay rate

    A. flexible-market
    B. variable-market
    C. above-market
    D. below-market
    E. at-market
    C. above-market
  32. Economic theory holds that the most profitable pay level, all things being equal, would be:

    A. anywhere within the market-rate range.
    B. the pay level that is lower than that of the lowest paying organization.
    C. at the market rate.
    D. below the market rate.
    E. above the market rate.
    C. at the market rate.
    (this multiple choice question has been scrambled)
  33. If employees conclude that they are underrewarded, they are likely to make up the difference in all of the following ways EXCEPT:

    A. putting forth less effort.
    B. leaving the organization.
    C. finding a way to reduce their outcomes.
    D. refusing to cooperate.
    E. reducing their inputs.
    C. finding a way to reduce their outcomes.
    (this multiple choice question has been scrambled)
  34. The Fair Labor Standards Act (FLSA) includes provisions for:

    A. wage discrimination.
    B. environmental hazards.
    C. minimum wage.
    D. personal finance.
    E. retirement.
    C. minimum wage.
    (this multiple choice question has been scrambled)
  35. Which of the following would act as a market force during the development of a pay structure?

    A. Paying atleast the minimum wage established by law
    B. Restrictions on child labor
    C. Providing equal pay for equal work
    D. Meeting principles of fairness
    E. Obtaining human resources in labor markets
    E. Obtaining human resources in labor markets
    (this multiple choice question has been scrambled)
  36. _____ does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures, because it requires records related to skills, training, and knowledge acquired.

    A. Skill-based pay
    B. Broad banding
    C. Compa-ratio
    D. Benchmarking
    E. Delayering
    A. Skill-based pay
    (this multiple choice question has been scrambled)
  37. T/F Under profit sharing, payments are a percentage of the organization's profits and become part of the employees' base salary.
    F
  38. An organization uses Scanlon plan to provide incentives to employees. The workers produce parts worth $5 million. The target ratio set by the
    organization is 30%. The employees will be given a bonus if the actual labor costs are less than:

    A. $0.5 million.
    B. $2 million.
    C. $1.5 million.
    D. $2.5 million.
    E. $1 million.
    • C. $1.5 million.
    • 5 million times .3
  39. The trend, since the 1990s, in larger public companies, is to grant stock options to:

    A. the top management.
    B. all top and middle managers.
    C. all exempt employees
    D. all employees.
    E. all management executives.
    D. all employees.
    (this multiple choice question has been scrambled)
  40. An effective incentive pay plan should:

    A. have performance measures based on employees' requirements.
    B. not be provided as a direct percentage of employees' performance.
    C. have performance measures linked to the organization's goals.
    D. encourage group performance and dispirit individual achievements.
    E. be the same for all types of employees in the organization.
    C. have performance measures linked to the organization's goals.
    (this multiple choice question has been scrambled)
  41. Retention bonuses refer to:

    A. the special reward programs used to satisfy the lower and middle level managers.
    B. the bonuses provided to employees who take long leaves without pay.
    C. one-time incentives paid in exchange for remaining with the company.
    D. the bonuses provided to union members to withhold a strike decision.
    E. annual incentives paid to daily wage workers to remain in the organization.
    C. one-time incentives paid in exchange for remaining with the company.
    (this multiple choice question has been scrambled)
  42. What is a balanced scorecard?

    A. An incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary.
    B. A performance review process where the organization collects feedback from customers, managers, and subordinates, assign ratings, and list them on the company's performance card.
    C. system designed to measure the performance of HR personals based on the quality of recruitment.
    D. An arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust.
    E. A combination of performance measures directed toward the company's long-and short-term goals and used as the basis for awarding incentive pay.
    E. A combination of performance measures directed toward the company's long-and short-term goals and used as the basis for awarding incentive pay.
    (this multiple choice question has been scrambled)
  43. Which of the following is a quantity-oriented incentive provided to employees?

    A. Standard hour plan.
    B. Straight piecework plan.
    C. Merit pay plan.
    D. Differential piecework plan.
    E. Scanlon plan.
    A. Standard hour plan.
    (this multiple choice question has been scrambled)
  44. What is backdating?

    A. Buying company's stock just before the date of key product launch.
    B. Changing price in the original option agreement so that the option holder can buy stock at a bargain price.
    C. Falsifying numbers in the company's annual report to hide losses and inflate the stock prices.
    D. Reaping windfall in the stock market by selling stock based on company's nonpublic information.
    E. Re-evaluating a company's stocks to adjust it to a previous date so that the shareholders and employees minimize the losses.
    B. Changing price in the original option agreement so that the option holder can buy stock at a bargain price.
    (this multiple choice question has been scrambled)
  45. Why do organizations use profit sharing?

    A. It helps organizations perform better.
    B. Profit sharing can motivate employees more than individual incentives.
    C. It costs less when the organization is experiencing financial difficulties.
    D. This would help the employees find a direct relation between their performance and gain.
    E. It makes employees feel that they have control over the company's profits.
    C. It costs less when the organization is experiencing financial difficulties.
    (this multiple choice question has been scrambled)
  46. An advantage of merit pay is that:

    A. it provides merit increases to employees only on the basis of performance.
    B. it results in a bigger short term reward for the best performers.
    C. it would never become costly for the employers.
    D. it promotes group performance rather than promoting individual behavior.
    E. it makes the reward more valuable by relating it to economic conditions.
    E. it makes the reward more valuable by relating it to economic conditions.
    (this multiple choice question has been scrambled)
  47. Which of the following is true of 529 savings plans?

    A. They allow parents and other family members defer taxes on the earnings of their deposits into the 529 account.
    B. They are mandated by the federal government.
    C. They provide information about the education standards in different colleges to employees to help them enroll their children in better institutions.
    D. They provide education to employees' children at a subsidized rate.
    E. They are designed to support the primary education expenses of workers' children.
    A. They allow parents and other family members defer taxes on the earnings of their deposits into the 529 account.
    (this multiple choice question has been scrambled)
  48. Which one of the following is an objective of the unemployment insurance program?

    A. To offset lost income during a labor dispute
    B. To protect the employer from lawsuits
    C. To provide an incentive for employers to stabilize employment
    D. To help workers with the expenses resulting from job-related accidents and illnesses
    E. To improve the productivity and skill set of workers
    C. To provide an incentive for employers to stabilize employment
    (this multiple choice question has been scrambled)
  49. T/F A defined contribution plan guarantees a specified level of retirement income.
    F
  50. T/F Social Security benefits are free from federal income taxes and state taxes in about half the states.
    T
  51. Under the Older Workers Benefit Protection Act of 1990, employers wishing to use early-retirement waivers must adhere to which of the
    following guidelines?

    A. Allow employees not more than 48 hours before signing the retirement agreement.
    B. Provide lesser benefits than would otherwise be available upon retirement.
    C. Provide employees annual bonus and health insurance after the retirement.
    D. Inform employees that they may consult with a lawyer before signing.
    E. Make ADEA waivers compulsory and spell out the employee's rights under ADEA.
    D. Inform employees that they may consult with a lawyer before signing.
    (this multiple choice question has been scrambled)
  52. Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees?

    A. COBRA
    B. ADEA
    C. ERISA
    D. ADA
    E. FLSA
    C. ERISA
    (this multiple choice question has been scrambled)
  53. T/F Under FASB standards, employers fund retirement benefits on a pay-as-you-go basis.
    F
  54. A popular defined-contribution plan whereby employees contribute pretax dollars which are then matched by the employer is known as:

    A. ERISA benefit plans.
    B. Section 401(k) plans.
    C. profit-sharing plans.
    D. employee stock ownership plans (ESOPs).
    E. money purchase plans.
    B. Section 401(k) plans.
    (this multiple choice question has been scrambled)
  55. The cost of a worker's compensation insurance depends on:

    A. the number of years for which the organization has been in business.
    B. the total strength of the organization's workforce.
    C. the state where the company is located.
    D. the profit earned by the organization during the concerned fiscal.
    E. the number of years the concerned worker has been working in the organization.
    C. the state where the company is located.
    (this multiple choice question has been scrambled)
  56. Which of these had been accomplished by the Employee Retirement Income Security Act of 1974?

    A. The act established rights relating to vesting.
    B. The act guaranteed retirees a pension equivalent to their last drawn salary.
    C. The act barred portability of retirement savings.
    D. The act reduced the responsibility of pension plan trustees.
    E. The act required employers to offer supplemental retirement plans.
    A. The act established rights relating to vesting.
    (this multiple choice question has been scrambled)
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114714
Card Set
HRM_Test2
Description
Test 2
Updated
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