1. Properly designed incentive programs work because they are based on two well-accepted psychological principles: (1) increased motivation improves performance and (2) 



control-based compensation



the Rucker plan



recognition is a major factor in motivation



the Scanlon plan







2. Employee demotions usually involve.



a reduction in pay but no loss of opportunity, status, or privilege



a cut in pay, status, privilege, or opportunity 



an increase in pay and more responsibility



a decrease in status and privilege but no loss of opportunity or pay







3. When conduction a performance feedback discussion, active listening requires



interruptions to get your point across



verbal communications only



summarizing what was said and what was agreed to



summarizing your key points







4. Which of the following is a distinctive feature of the U.S. system compared with other countries? 



Wages set by arbitration councils



Low union dues and small union staffs



All agreements are of unlimited duration



Exclusive representation







5. ____________ is the biggest hurdle to overcome in a pay-for-performance plan.



Compensation equation



Salary cap performance level



Merit-pay increases



Inflation







6. _____ analysis is the level of analysis that focuses on employees specifically. 



Environmental



Individual 



Employee



Operations







7. Title VII of the _____________ states that top executives in companies receiving government support can retract bonuses, retention awards, or incentives paid to the top five senior executive officers or the next 20 most highly compensated employees based on corporate information that is later found to be inaccurate.



Pay for Performance Act (2009)



American Recovery and Reinvestment Act (2009) 



Sarbanes–Oxley Act (2002)



Equal Pay Act (1963)







8. What is our country’s income maintenance program?



Social Security



COBRA (1985)



PPA (2006), 401(k)



ERISA (1974)







9. Which question should not be important in evaluating the value of training? 



Is the change positive related to organizational goals?



Is the change due to training?



Was the cost of training within the budget?



Did change occur?







10. _____ implies that appraisal systems are easy for managers and employees to understand and use.



Sensitivity



Reliability



Practicality



Acceptability







11. This made extensive changes to the Employee Retirement Income Security Act (ERISA) of 1974 that governs employer-sponsored, qualified (for tax deferral) retirement-benefit plans.



Short-Term Severance Pay laws



Employer Cost Shifting laws



The Pension Protection Act (PPA) of 2006 



Short-Term Disability laws







12. When companies discover they can communicate better with their customers through employees who are similar to their customers, those companies then realize they have increased their _____ diversity. 



internal 



primary



external



secondary







13. For organizations, _________ is an indirect cost associated with downsizing.



outplacement



an increase in the unemployment tax rate



severance pay



administrative processing







14. The Civil Rights Act of 1991 offered what for victims of unintentional discrimination?



Adverse impact



Monetary damages and jury trials



Affirmative action



Race-norming







15. Organizations periodically turn to _________ to meet demands for talent brought about by business growth and a desire for fresh ideas, or to replace employees who leave.



outside labor markets



entry-level employees



former employees



their subsidiaries







16. To avoid legal difficulties related to performance appraisals and enhance credibility in court, employers should 



document appraisal ratings and reason for termination



have friends testify



present only the manager’s perspective



present only the employee’s perspective







17. Which is not a quality of Generation Y?



A blurring of the lines between work and leisure time while on the job



Short attention spans



The constant need for stimulation/entertainment



Inability to handle numerous projects







18. Training that results in ______ is costly because of the cost of training (which proved to be useless) and the cost of hampered performance.



applicability of training



reinforcement of training



simulation of training



negative transfer of training







19. What can affirmative action assist organizations in achieving that diversity initiatives cannot?



Increased productivity



Correcting specific problems of the past



Maximizing workforce commitment



Maximizing creativity







20. _____ proceeds from an oral warning to a written warning to a suspension to dismissal. 



Procedural justice



Due process



Positive discipline



Progressive discipline







21. Because practical considerations make job tryouts for all candidates infeasible, it is necessary to __________ the relative level of job performance for each candidate on the basis of available information.



predict



assign



abandon



accept







22. If employers fail to check closely enough on a prospective employee who then commits a crime in the course of performing his or her job duties, they can be held liable for



negligent hiring



quid pro quo



hostile environment



loss of consortium







23. ________________ include everything in a work environment that enhances a worker’s sense of self-respect and esteem by others.



Nonfinancial rewards



General business strategies



Social responsibilities 



Internal pay objectives







24. A _____ occurs when parties are unable to move further toward settlement.



mediation



grievance



lockout



bargaining impasse







25. Hard quotas



are a concerted effort by the organization to actively expand the pool of applicants so that no one is excluded because of past or present discrimination



systematically favor women and minorities in hiring and promotion decisions



are a commitment to treat all races and sexes equally in all decisions about hiring, promotion, and pay



represent a mandate to hire or promote specific numbers or proportions of women or minority group members







26. In determining the competitiveness of benefits, senior management tends to focus mainly on



worth



cost



security



value







27. In _____, workers have been fired for refusing to quit smoking, for living with someone without being married, drinking a competitor’s product, motorcycling, and other legal activities outside of work. 



constructive discharge



lifestyle discrimination



invasion of privacy



defamation







28. Mary arrives at her new job. Before she can begin actually doing the work, she must complete a series of activities including role playing and virtual reality interactions. What type of training method does Mary’s new employer use?



Simulation



On-the-job training



Information presentation



Organizational development







29. If objective performance data are available, which of the following is the best strategy to use? 



summated rating scales



BARS



work planning and review



MBO







30. ___________ is the process where managers provide feedback to the employees regarding their past and present job performance proficiency, as well as a basis for improving performance in the future.



Placement



Recruiting



Performance management



Selection

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