CHAPTER 7:

TRAINING AND DEVELOPING EMPLOYEES

Multiple Choice Questions

1. Providing new employees with background information required to perform their

jobs satisfactorily is:
 Employee handbooks.
 Employee orientation programs.
 Training.
 ROPES.

2. Employee handbooks are used to:

 Provide training.
 Establish contracts.
 Relate rules.
 Socialize employees.

3. Successful orientation is not expected to:

 Begin socialization of employees.
 Welcome the new employee.
 Help employee understand organization.
 Establish employment contract.

4. Methods used to give new or present employees the skills they need to perform
their jobs is:
 Orientation.
 Training.
 Instructional design.
 Motivation.

5. Producing training program content is a function of:

 Implementation.
 Needs analysis.
 Instructional design.
 Validation.

6. Trainees can more easily understand and remember material that is:
 Familiar.
 Transferred.
 Meaningful.
 Valid.

7. Charges of negligent training may be avoided by:

 Training women and minorities.
 Task analysis.
 Performance analysis.
  Training extensively.

8. Identifying training needs of new employees is accomplished by:

 Task analysis.
 Performance analysis.
 Skills transfer.
 Learning.

9. Determining if poor performance can be corrected by training is the process of:

 Task analysis.
 Needs analysis.
 Performance analysis.
 On the job training.

10. A coaching or understudy method of training is:

 On the job training.
 Apprenticeship training.
 Informal learning.
 Job instruction training.

11. The greatest amount of industrial training is performed by:

 Lectures.
 onthejob training.
 Apprenticeship training.
 Worker to worker interaction.

12. Providing knowledge to large groups of trainees quickly and simply is done by:
 Lectures.
 Programmed instruction.
 Computer based training.
 Audiovisuals.

13. A disadvantage of programmed learning is:

 The amount of learning.
 The speed of learning.
 The amount of errors.
 The pace of learning.

14. Learning on actual equipment but away from the work site is performed by:
 Computer based training.
 Simulated training.
 Job rotation.
 Lecturing.

15. Integrating automated training into applications to provide support more

effectively than traditional methods is performed by:
 Computer based training.
 Teletraining.
 Electronic Performance Support Systems.
 Video conferencing.
16. Distance learning methods for training may not include:
 Teletraining.
 Paperandpencil correspondence.
 Video conferencing.
 Programmed learning.

17. Teletraining and videoconferencing are two examples of:

 Programmed learning.
 Distance learning.
 Learning portals.
 Electronic Performance Support Systems.

18. A company may contract with specific training content providers to offer
content to the firm's employees via:
 Business to employee portals.
 Computer based training.
 Action learning.
 Electronic Performance Support Systems.

19. Creating crosscultural sensitivity is the purpose of conducting:

 Internet training.
 Global training.
 Customer service training.
 Diversity training.

20. Meeting firms' expectations for firstline employees to identify new opportunities
requires them to participate in:
 Lifelong learning.
 Teamwork.
 Customer service training.
 Diversity training.

21. Continuing to upgrade skills throughout an employee's career is achieved

through:
 Lifelong learning.
 Job rotation.
 Management development.
 Literacy training.

22. The purpose of a firm developing managers is to:

 Assess strategic needs.
 Appraise the managers' performance.
 Enhance the firm's future performance.
 Anticipate management needs.

23. Moving management trainees from department to department is:

 Succession planning.
  Job rotation.
 Coaching/understudy.
 Action learning.

24. Action learning programs provide managers time to work on projects

_________.
 With a senior manager.
 Department to department.
 With management games.
 In departments other than their own.

25. Trainees analyze and diagnose a problem then present solutions to other
trainees when participating in:
 Coaching/understudy.
 Job rotation.
 Management games.
 Case study.

26. The possibility that women make better managers than men is not based upon
their:
 Transformational leadership skills.
 Simplified emotional appeals.
 Propensity to discipline.
 Providing learning opportunities.

27. Trainees assume the parts of persons in specific situations during ______
training.
 Case study
 Management games
 Behavior modeling
 Role playing

28. Whether a particular training method is best is determined by:

 How well goals are met.
 Evaluating the program.
 Controlled experimentation.
 Design of the evaluation study.

29. Comparing a trained group with an untrained group to determine changes in

performance is accomplished by:
 Reaction measures.
 Controlled experimentation.
 Control group.
 Training outcomes.

30. Reaction measures in evaluation studies determine:

 What trainees learned
 How trainees behave.
 What results are obtained
 how trainees liked the program
True and False

1. Selecting the best employees assures effective performance.

 TRUE
 FALSE

2. Employee orientation programs provide new employees with basic background

required to perform their jobs satisfactorily.
 TRUE
 FALSE

3. Employee orientation programs always are conducted in formal courses or

presentations.
 TRUE
 FALSE

4. A convenient means of distributing employment contracts to new employees is

with employee handbooks.
 TRUE
 FALSE

5. Employee handbooks may represent legally binding employment commitments.

 TRUE
 FALSE

6. The primary concern of employee orientation is to impart the firm's rules.

 TRUE
 FALSE

7. Orientation programs can be a stress reducer for new employees.

 TRUE
 FALSE

8. The methods used to give new or present employees they skills they need to
perform their jobs is orientation.
 TRUE
 FALSE

9. The first step of training programs is to prepare the instructional design.

 TRUE
 FALSE

10. The final step of the training and development process is to implement the
program.
 TRUE
 FALSE
11. Trainees find it easier to understand and remember meaningful training
material.
 TRUE
 FALSE

12. Equal employment opportunity laws do not apply to the training process.
 TRUE
 FALSE

13. An employer who fails to adequately train employees may be guilty of negligent
training.
 TRUE
 FALSE

14. Analyzing new employees' training needs differs from analyzing current
employees' needs.
 TRUE
 FALSE

15. Task analysis performs the same function as performance analysis.

 TRUE
 FALSE

16. In task analysis, the performance of current employees is appraised to

determine if training can reduce problems.
 TRUE
 FALSE

17. Job descriptions and job specifications provide the basic reference point in task
analysis to determine training required.
 TRUE
 FALSE

18. A performance deficiency that can be corrected through training is determined

by a performance analysis.
 TRUE
 FALSE

19. The first step in analyzing current employees' training needs is to prepare a job
description.
 TRUE
 FALSE

20. Learning a job by doing it is apprenticeship training.

 TRUE
 FALSE
21. On the job training is a technique for training lower level employees.
 TRUE
 FALSE

22. The greatest amount of industrial training is performed by lectures and

onthejob training.
 TRUE
 FALSE

23. Teaching all necessary steps of a job in a logical sequence is called job
instruction training.
 TRUE
 FALSE

24. A quick and simple method of training large groups is computerbased training.
 TRUE
 FALSE

25. Being trained on actual equipment used on the job but away from the jobsite is
simulated training.
 TRUE
 FALSE

26. A disadvantage of computer based training is its lack of employee motivation.

 TRUE
 FALSE

27. Job aids are particularly useful when forgetting a step in the job can be
dangerous.
 TRUE
 FALSE

28. Two modern distance learning methods are teletraining and video conferencing.
 TRUE
 FALSE

29. Despite technological advances, basic literacy training is important in today's

workplace.
 TRUE
 FALSE

30. Managerial training is similar to other employee training.

 TRUE
 FALSE
CHAPTER 8:
MANAGING STRATEGIC ORGANIZATIONAL RENEWAL

Multiple Choice Questions

1. Organizational renewal often starts with:

 Strategic change.
 Improved technology.
 Intense competition.
 Company's culture.

2. Adopting new corporate values is a part of:

 Communication.
 Structural change.
 Cultural change.
 Rewards and status.

3. Redesigning the company's span of control or decisionmaking procedures is a

part of:
 Structural change.
 Cultural change.
 Organizational development interventions.
 Technological change.

4. Technological change will most likely fail without:

 Organizational development interventions.
 Employee support.
 Attitudes and skills.
 Structural change.

5. Reducing the forces striving to maintain the status quo is termed by Psychologist
Kurt Lewin as:
 Moving.
 Unfreezing.
 Refreezing.
 Sense of urgency.

6. According to Lewin, reinforcing changes is necessary to prevent:

 Weakening the status quo.
 Reverting to former methods.
 Refreezing the organization.
 Instituting new systems.
7. Leaders begin organizational change by:
 Developing a vision.
 Diagnosing problems.
 Creating a sense of urgency.
 Creating a coalition.

8. A statement of the organization's intended direction that evokes emotional

feelings in members is:
 Sense of urgency.
 Diagnosis of problems.
 Moving.
 Leadership vision.

9. Employees formulate change that's required and implement it in:

 Action research.
 Human process interventions.
 Sensitivity training.
 Organizational development.

10. Helping employees develop a better understanding of their own and others'
behaviors and improve that behavior is:
 Human process interventions.
 Organizational development.
 Action research.
 Sensitivity training.

11. Four basic types of organizational development include all the following except:
 Team building.
 Techno structural.
 Strategic applications.
 Human process.

12. The basis of the four basic types of organizational development applications is:
 Human process interventions.
 Action research.
 Human resource management.
 Strategic applications.

13. The most widely used technique in human process applications is:
 Sensitivity training.
 Team building.
 Strategic applications.
 Total Quality Management.

14. Tgroup training may be viewed as unethical because:

 Participation may not be entirely voluntary.
 It may be dangerous.
 It depends on feedback from others.
 Participants must feel safe to expose their feelings.
15. Bringing problems into the open so they can be resolved is performed in:
 Survey research.
 Strategic applications.
 Sensitivity training.
 Confrontation meetings.

16. Changing firms' structures, methods and job designs are accomplished with:
 Strategic applications.
 Technostructural interventions.
 Total Quality Management.
 Team building.

17. How well a product or service meets customer needs is a measure of:
 Quality.
 Total Quality Management.
 ISO 9000.
 Continuous improvement.

18. Organizationwide programs aimed at maximizing customer satisfaction through

continuous improvements are called:
 Malcolm Baldrige Award.
 Total Quality Management.
 ISO 9000
 Six Sigma

19. Teams that have the training ability and authority to get their jobs done are
said to be:
 Enriched.
 Trained.
 Interdependent.
 Empowered.

20. Characteristics of selfdirected teams do not include:

 Highly trained.
 Empowered.
 Perform enriched jobs.
 Use in small businesses.

21. A formal program that lets employees participate in formulating important work
decisions is a(n):
 Total Quality Management.
 Employee involvement program.
 Business process reengineering.
 Teams.

22. ______ assumes that organizing departments and processes around specialized
tasks is wasteful and unresponsive to customers.
 Business process reengineering
 Building teams
  Redesigning compensation
 TQM

23. Business process reengineering means switching from functional departments

to:
 Commitment.
 Specialized tasks.
 Flextime.
 Processoriented teams.

24. Workers determine their own starting and stopping hours in a ______
arrangement.
 Teambased
 Flextime
 Job sharing
 Telecommuting

25. Many flexible work arrangements have failed due to:

 Management resistance.
 Supervisory indoctrination.
 Limited worker freedom.
 Flexibility.

26. Two people perform the same job in:

 Telecommuting.
 Flextime.
 Job sharing.
 Work sharing.

27. A group of employees voluntarily reduce paid work hours as a part of:
 Job sharing.
 Work sharing.
 Layoffs.
 Flextime.

28. With a _______ plan, employees can work variable hours during each month.
 Flextime
 Job sharing
 Flexyear
 Worksharing

29. Business process reengineering requires employees to have high:

 Commitment.
 Specialization.
 Flextime.
 Compensation.

30. HR related guidelines for building effective teams do not include:

 Selecting members for skill.
 Selecting people who like teamwork.
  Training extensively.
 Supervising closely

True and False

1. Today's technologies rely on highly trained employees.

 TRUE
 FALSE

2. Today's quality improvement processes depend on empowered employees.

 TRUE
 FALSE

3. Empowered employees have the authority and training to make decisions and
control their work.
 TRUE
 FALSE

4. Strategic change involves adopting new corporate values.

 TRUE
 FALSE

5. Adopting new notions of what employees view as right and wrong is strategic
change.
 TRUE
 FALSE

6. A relatively quick way to change an organization is redesigning its departmental

structure.
 TRUE
 FALSE

7. To change an organization, employees also must change.

 TRUE
 FALSE

8. Psychologist Kurt Lewin explains that organizational behavior results from forces
opposing each other's efforts.
 TRUE
 FALSE

9. To Lewin, reducing the forces striving to maintain the status quo aims to alter
people's behavior.
 TRUE
 FALSE

10. Lewin advocated instituting new systems and procedures as a part of

technological change.
 TRUE
 FALSE
11. When leaders want to change an organization, they usually begin by
communicating their vision.
 TRUE
 FALSE

12. Most leaders create major transformations through their individual effort.
 TRUE
 FALSE

13. A leadership vision should evoke emotional feelings in organization members.

 TRUE
 FALSE

14. Communicating a vision to employees is worthless if policies and procedures are

nonsupportive.
 TRUE
 FALSE

15. Employees formulate and implement needed change in organizational

development.
 TRUE
 FALSE

16. Action research is a distinguishing characteristic of organizational development.

 TRUE
 FALSE

17. Helping employees develop a better understanding of their own and others'
behavior is human resource applications.
 TRUE
 FALSE

18. The basis of organizational development applications is behavioral science

knowledge.
 TRUE
 FALSE

19. Sensitivity training is a primary human process application.

 TRUE
 FALSE

20. Feedback from others and willingness of participants to be candid about how
they perceive others' behavior dictates tgroup training's success.
 TRUE
 FALSE

21. Participants meet and resolve misperceptions about each other in sensitivity
training.
 TRUE
  FALSE

22. Technostructural interventions focus on improving productivity and efficiency.

 TRUE
 FALSE

23. Changing a firm's personnel practices is an integral part of its strategic

applications.
 TRUE
 FALSE

24. The definition of quality can be expressed as the extent to which a product or
service meets the customer's expectations.
 TRUE
 FALSE

25. Continuous improvement is the goal of Total Quality Management programs.

 TRUE
 FALSE

26. Selfdirected team members perform many tasks formerly performed by

supervisory personnel.
 TRUE
 FALSE

27. The main role of HR in team building is to ensure that team members have the
appropriate skills.
 TRUE
 FALSE

28. Team members supervising all or part of their own work activities is part of an
employee involvement program.
 TRUE
 FALSE

29. Organization departments and processes around specialized tasks are wasteful
and unresponsive to customers is a basic assumption of team building.
 TRUE
 FALSE

30. HR plays a key role in Business Process Reengineering.

 TRUE
 FALSE
CHAPTER 9:
APPRAISING PERFORMANCE

Multiple Choice Questions

1. Performance appraisal involves all the following except:

 Setting work standards.
 Comparing performance to standards.
 Providing feedback to employee.
 Preparing job descriptions for groups of job.

2. Reasons for appraising performance include all of the following except:

 Ranking employees.
 Collect information for promotion and salary decisions.
 Mutually review workrelated behavior.
 Manage the firm's performance.

3. Fear of having to hire and train someone new may lead a supervisor to:
 Improve the firm's performance.
 Review an employee's career plans.
 Give untruthful appraisal.
 Rank employees from worst to best.

4. In the appraisal process, the HR department is responsible for:

 Defining the job.
 Monitoring the appraisal system.
 Appraising performance.
 Conducting feedback sessions.

5. Appraisal systems may fail because of all the following except:

 Subordinates don't know expectations.
 Problems with forms or procedures.
 Forced distribution.
 Poor communication.

6. Listing the ranges of performance values for specified traits is a feature of the:
 Graphic rating scale.
 Alternation ranking method.
  Forced distribution method.
 Quantifying of expectations.

7. The most popular performance appraisal technique is the:

 Alternation ranking method.
 Graphic rating scale.
 Paired comparison method.
 Forced distribution method.

8. The most popular appraisal method for ranking employees is the:

 Forced distribution method.
 Paired comparison method.
 Graphic rating scale.
 Alternation ranking method.

9. Comparing every subordinate with every other subordinate helps the supervisor
to:
 Grade on a curve.
 Make the ranking method more precise.
 Give examples of good and poor performance.
 List ranges of performance values.

10. Ensuring that each employee falls into a predetermined percentile is a feature
of the:
 Paired comparison method.
 Graphic rating scale method.
 Critical incident method.
 Forced distribution method.

11. The forced distribution method rates an employee's performance:

 On each trait.
 With the worst employee.
 Relative to other employees.
 With a range of values.

12. The _________ method forces the supervisor to think about an employee's
performance appraisal all year.
 Narrative form
 Critical incident
 Paired comparison
 Forced distribution

13. The critical incident method is not useful for comparing employees without:
 Grading on a curve.
 Numerical rating.
 A narrative form.
 Forced distribution.

14. A combination of several appraisal methods is used in the:

  Narrative form.
 Critical incident method.
 Behaviorally Anchored Rating Scale
 Graphic rating scales.

15. An advantage of the BARS method is its:

 Independent dimensions.
 Forced distribution.
 Percentages of employees in performance categories.
 Monitoring by HR.

16. A manager uses _______ to set specific measurable goals with each employee
and discuss progress periodically.
 Behaviorally anchored rating scale
 Management by objectives
 Critical incident
 Narrative

17. Organization goals and departmental goals are utilized in the __________
employee appraisal.
 Computerized performance appraisal
 Management by objectives
 Behaviorally anchored rating scale
 Independent dimensions

18. Problems with appraising performance include:

 Descriptive phrases for traits.
 Ranking employees.
 Employees' expectations about ratings.
 Quantifying expectations.

19. A seemingly objective graphic rating scale may result in unfair appraisals
because of:
 Descriptive phrases that define traits.
 Unclear standards.
 Quantifying expectations.
 Ranking employees.

20. A supervisor who rates an unfriendly employee low on all traits because of it
may be influenced by the:
 Strictness problem.
 Bias problem.
 Halo effect.
 Central tendency.

21. Rating all employees the same is utilizing the:

 Strictness/leniency problem.
 Bias problem.
 Halo effect.
 Central tendency problem.
22. The central tendency problem may be solved by:
 Ranking employees.
 Being aware.
 Purpose of appraisal.
 Including descriptive phrases.

23. An employee's past performance may result in the supervisor incorporating the
___________ problem in the appraisal.
 Halo effect.
 Strictness/leniency.
 Bias.
 Central tendency.

24. Problems with graphictype rating scales to appraise performance may be

avoided by all the following actions except:
 Training supervisors.
 Understanding the problems.
 Use graphic rating scale.
 Use right appraisal tools.

25. The best way to reduce adverse effects of appraisal problems is to:
 Record critical incidents.
 Training supervisors.
 Justify ratings.
 Keeping a diary.

26. An employee's performance is best rated by:

 Peers.
 Supervisor.
 Employee.
 Rating committees.

27. Employees' performance is usually rated highest by:

 Supervisors.
 Peers.
 Self.
 Rating committees.

28. Subordinates and supervisors review the employees' performance and plan to
correct deficiencies in the:
 360 degree feedback.
 Upward feedback.
 Self rating.
 Appraisal interview.

29. Managing all elements of the organizational process that affect how well
employees perform is:
 Performance appraisal.
 Performance management.
  TQM approach.
 360degree feedback.

30. An organizationwide program whose aim is to get employees to want to

improve operations is the:
 TQM approach.
 360degree feedback.
 Performance management.
 Appraisal interview.

True and False

1. Evaluation of an employee's current or past performance is compared to the

employee's job description in a performance appraisal.
 TRUE
 FALSE

2. The purpose of performance appraisal is to motivate the employee.

 TRUE
 FALSE

3. Salary and promotion decisions are usually made upon appraisal information.
 TRUE
 FALSE

4. Performance appraisals are unnecessary for employees who are performing

above standard.
 TRUE
 FALSE

5. Appraisals help you improve the employee's and the firm's performance.
 TRUE
 FALSE

6. An untruthful appraisal may be given because of the employee's reaction.

 TRUE
 FALSE

7. The supervisor should consider the employee's feelings when conducting a

performance appraisal.
 TRUE
 FALSE

8. The appraisal process is conducted by line supervision without HR involvement.

 TRUE
 FALSE
9. Appraising performance means comparing performance to established standards.
 TRUE
 FALSE

10. Agreeing on the employee's duties and job standards is defining the job.
 TRUE
 FALSE

11. Job descriptions may cause failure of the appraisal process.

 TRUE
 FALSE

12. The appraisal process can be improved by quantifying expectations.

 TRUE
 FALSE

13. The most popular appraisal method is the alternation ranking method.
 TRUE
 FALSE

14. Providing a range of performance values for each trait is part of the graphic
rating scale.
 TRUE
 FALSE

15. An alternation ranking method makes the ranking method more precise.
 TRUE
 FALSE

16. Pairing each employee with every other employee for appraisal purposes is the
paired comparison method.
 TRUE
 FALSE

17. The forced distribution method rates an employee's performance relative to

one's peers on a rating curve
 TRUE
 FALSE

18. The critical incident method is convenient because it does not utilize numerical
calculations.
 TRUE
 FALSE

19. An appraisal method that combines advantages of several appraisal methods is

the narrative method.
 TRUE
 FALSE
20. A manager sets measurable goals with an employee and discusses progress
toward the goals in the BARS appraisal method.
 TRUE
 FALSE

21. Management by Objectives has the disadvantage of being more timeconsuming

than other appraisal methods.
 TRUE
 FALSE

22. Computerized appraisals may be conducted by electronic performance

monitoring.
 TRUE
 FALSE

23. Rating an employee low on all traits because of a single negative trait results
from the halo effect.
 TRUE
 FALSE

24. Central tendency ratings can be avoided by using graphic rating scales.
 TRUE
 FALSE

25. An employee's personal characteristics can affect their ratings because of the
strictness/leniency problem.
 TRUE
 FALSE

26. Appraisal methods are not involved in selection of employees so are unaffected
by EEO laws.
 TRUE
 FALSE

27. Subordinates may rate their supervisors' performance through upward

feedback.
 TRUE
 FALSE

28. The primary aim of the appraisal interview is to evaluate the employee's
promotability.
 TRUE
 FALSE

29. Managing all elements of the organizational process that affect how well
employees perform is performance management.
 TRUE
 FALSE
30. TQMbased appraisals base performance standards on analyses of customers'
needs and expectations.
 TRUE
 FALSE

Chapter 11:
Establishing Pay Plans

Multiple Choice Questions

1. Employee compensation is comprised of:

 Time based pay.
 Direct financial payments.
 Direct and indirect payments.
 Wages and incentives.

2. Direct financial payments include:

 Piecework pay.
 Paid insurance.
 Sales commissions.
 Bonuses.

3. Wage rates for laborers employed by federal contractors are authorized by the:
 Walsh Healey Act.
 Davis Bacon Act.
 Fair Labor Standards Act.
 Civil Rights Act.

4. Labor standards for employees on government contracts over $10,000 are set by
the:
 Fair Labor Standards Act.
 Davis Bacon Act.
 Walsh Healey Act.
 Civil Rights Act.

5. Overtime pay for working more than 40 hours in a week is set by the:
 Civil Rights Act.
 Public Contracts Act and Fair Labor Standards Act.
 Davis Bacon Act.
 Equal Pay Act.
6. An employee who works 46 hours in a week must be paid for working:
 46 hours.
 69 hours.
 49 hours.
 43 hours.

7. The Fair Labor Standards Act includes provisions for all the following except:
 Overtime pay.
 Minimum wage.
 Maximum hours.
 Vesting rights.

8. The Equal Pay Act allows unequal pay on the basis of:
 Sex.
 Seniority.
 Exempt status.
 Overtime provisions.

9. The Employee Retirement Income Security Act provides for protection of

employees':
 Equal pay.
 Portability rights.
 Pension plans.
 Disabilities.

10. An employee may move a pension plan from one employer to another due to
ERISA's:
 Vesting rights.
 Wage garnishment law.
 Equal pay provisions.
 Portability rights.

11. Employees injured on the job receive income from:

 Social Security Act.
 Workers' Compensation laws.
 Americans with Disabilities Act.
 Family and Medical Leave Act.

12. Unions gained legal protection upon passage of the:

 Walsh Healey Act.
 National Labor Relations Board.
 Davis Bacon Act.
 Wagner Act.

13. The main issue in collective bargaining traditionally has been:

 Wages.
 Benefits.
  Income security.
 Fiduciary rights.

14. How competitive a firm will be is determined by:

 Pay rates.
 Productivity.
 Compensation policies.
 Labor costs.

15. New employees are paid more than longer term employees as the result of:
 Merit pay.
 Salary compression.
 Overall labor costs.
 Geography.

16. Firms arrange jobs around ___________ based on their relative worth.
 Job evaluations
 Wage surveys
 Compensable factors
 Benchmark jobs

17. A job's relative worth is determined by:

 Job evaluations.
 Benchmark jobs.
 Compensable factors.
 Wage surveys.

18. Basic factors common to several jobs are:

 Benchmark jobs.
 Compensable factors.
 Classification.
 Job evaluations.

19. A job evaluation committee includes employees to:

 Provide expert assistance.
 Identify benchmark jobs.
 Provide impartial outlook.
 Insure employee acceptance of results.

20. Ranking a job relative to all other jobs is the _________ job evaluation method.
 Job classification
 Ranking
 Factor comparison
 Point

21. The job evaluation method that is simplest, easiest to explain and less time
consuming is the:
 Ranking method.
 Point method.
  Job classification method.
 Computerized job evaluation.

22. Categorizing jobs into grades is utilized in the:

 Ranking method.
 Point method.
 Job classification method.
 Factor comparison method.

23. Several compensable factors and the degree to which they are present in a job
must be identified for the:
 Point method.
 Job classification method.
 Factor comparison method.
 Ranking method.

24. Each job must be ranked several times with the:

 Computerized job evaluations.
 Ranking method.
 Job classification method.
 Factor comparison method.

25. Showing current pay rates for each job relative to rankings assigned is a
function of the:
 Wage line.
 Pay grade.
 Cluster.
 Wage curve.

26. The Department of Labor does not exempt meal breaks from compensable time
unless:
 Employees are required to clock out.
 An employee is called a manager.
 A break is at least 20 minutes.
 The break is properly recorded.

27. Long term incentives for executives encourage actions to:

 Reflect executive's contribution.
 Achieve short term goals.
 Guarantee bonuses.
 Drive up stock value.

28. Consolidating salary grades and ranges into a few levels containing wide ranges
of jobs is:
 Broad banding.
 Comparable worth.
 Salary grade.
 Inflexibility.
29. Most U.S. firms still use point and factor comparison plans due to job
evaluation's:
 Ease of use and familiarity.
 Greater flexibility.
 Reduced need for job evaluation.
 Skill based pay.

30. Requiring equal wages for jobs of comparable value to the employer is called:
 Broad banding.
 Point method.
 Comparable worth.
 Skill based pay.

True and False

1. Employee compensation is the base salary paid for employees' performance.

 TRUE
 FALSE

2. Commissions and bonuses are a form of indirect payments to employees.

 TRUE
 FALSE

3. Wage rates for employees of federal contractors are governed by the Public
Contract Act.
 TRUE
 FALSE

4. Labor standards for employees working on government contracts over $10,000

are set by the Walsh Healey Act.
 TRUE
 FALSE

5. The Civil Rights Act of 1964 requires payment of overtime for hours worked over
forty.
 TRUE
 FALSE

6. Minimum wage and child labor provisions are contained in the Fair Labor
Standards Act.
 TRUE
 FALSE
7. Seniority systems allow paying women less than men under the 1963 Equal Pay
Act.
 TRUE
 FALSE

8. Vesting rights in employers' pension plans are governed by the Social Security
Act.
 TRUE
 FALSE

9. Workers' compensation laws entitle employees to take job protected leave for
the care of a spouse or parent.
 TRUE
 FALSE

10. Unions earned legal protection and the right to bargain collectively by passage
of the Fair Labor Standards Act.
 TRUE
 FALSE

11. A firm's competitive level will be determined by its compensation and benefits.
 TRUE
 FALSE

12. Salary compression means new workers are paid more than longterm
employees.
 TRUE
 FALSE

13. Salaries to be paid for various jobs are compared to benchmark jobs.
 TRUE
 FALSE

14. The worth of one job in relation to another is determined by a job evaluation.
 TRUE
 FALSE

15. Factors that establish how jobs compare to one another are called compensable
factors.
 TRUE
 FALSE

16. The most important function of a job evaluation committee is to create

compensable factors.
 TRUE
 FALSE

17. The basis for ranking jobs for pay purposes is job specifications.
 TRUE
 FALSE
18. A disadvantage of the ranking method is that it provides no measurement of
the value of one job relative to another.
 TRUE
 FALSE

19. Jobs are categorized into groups in the job classification method.
 TRUE
 FALSE

20. The job classification method is the most widely used job evaluation method.
 TRUE
 FALSE

21. Jobs must be ranked several times each when using the factor comparison
method.
 TRUE
 FALSE

22. Federal compensation laws requiring paying employees for all meal breaks.
 TRUE
 FALSE

23. Job evaluation methods are unnecessary for employees in managerial positions.
 TRUE
 FALSE

24. An advantage of broad banding is its flexibility.

 TRUE
 FALSE

25. Managers and professionals are paid more for what they can do rather than for
their job demands.
 TRUE
 FALSE

26. Short term incentives encourage executives to take actions that improve the
firm's stock value.
 TRUE
 FALSE

27. Executive compensation emphasizes performance incentives more than for

other employees.
 TRUE
 FALSE

28. The cornerstone of executive compensation is benefits, incentives and stock

options.
 TRUE
  FALSE

29. Today's trend is toward bolstering executive pay on which performance

incentives are based.
 TRUE
 FALSE

30. Broad banding means having only a few wide salary ranges, each containing a
wide range of jobs and salary levels.
 TRUE
 FALSE