Business Canadian 8th Edition Griffin Test Bank Download

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 8—Managing Human Resources
Business Canadian 8th Edition Griffin
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Chapter 08: Managing Human Resources
Chapter 08 Multiple Choice Questions
1. ________ is the set of organizational activities directed at attracting, developing, and maintaining an
effective workforce.
a. Production management
b. Operations management
c. Developing a mission statement
d. Human resource management
e. Financial management
Difficulty: 2 Page-Reference: 244
Question ID: 08-1-01 Skill: Knowledge
Objective: 8.1
Answer : d.Human resource management
2. Which of the following is considered the starting point of effective human resource management?
a. Advertising
b. Financing
c. Human resource planning
d. External staffing
e. Recruitment
Objective: 8.1
Answer : c.Human resource planning
3. Like many other companies, Supreme Inc. has experienced reduced sales revenues during the last few
years. But the company has not laid any workers off, and turnover is not high. The CEO thinks that this
lack of disruption in the company's workforce is a positive sign, but the human resources director says
that employees are too focused on maintaining their job, and they are not enthusiastically pursuing the
company's goals. Which of the following would MOST support the CEO's position that the firm is
basically healthy?
a. Supreme's sales have declined less than those of its competitors.
b. Supervisors don't report much in the way of complaints from their subordinates.
c. The company is likely to turn a profit next year, given that the economy is slowly improving.
d. Supreme has had no problems replacing the few workers that have left.
e. The company continues to reward its top performers.
Question ID: 08-1-03 Skill: Analysis
Copyright © 2014 Pearson Canada Inc. 1

Objective: 8.1
Answer : a.Supreme's sales have declined less than those of its competitors.
4. Like many other companies, Supreme Inc. has experienced reduced sales revenues during the last few
years. But the company has not laid any workers off, and turnover is not high. The CEO thinks that this
lack of disruption in the company's workforce is a positive sign, but the human resources director says
that employees are too focused on maintaining their job, and they are not enthusiastically pursuing the
company's goals. Which of the following would support the human resource director's feeling that the
workforce is not engaged in their work?
a. Human resource polls involving hundreds of companies show that only one-third of all employees are really
engaged in their work.
b. Supreme's vision statement says that every employee must be committed to the company's goals.
c. There are few opportunities at Supreme for current employees to move into new, higher level jobs.
d. Supreme offers only voluntary training programs to prepare workers for job advancement.
e. Peformance appraisals are conducted only once each year.
Objective: 8.1
Answer : c.There are few opportunities at Supreme for current employees to move into new, higher
level jobs.
5. Cindy is observing and interviewing several database administrators to determine the duties and
responsibilities associated with their job, as well as the knowledge, skills, and abilities that someone
must have to perform the job. Cindy is performing the HR function of
a. job analysis.
b. setting a bona fide occupational requirement.
c. promotion.
d. training.
e. external recruiting.
Question ID: 08-1-05 Skill: Comprehension
Objective: 8.1
Answer : a.job analysis.
6. Sarah has the responsibility of developing a document that outlines the duties of a job, its working
conditions, and the tools, materials, and equipment used to perform it. She is developing a
a. job specification.
b. job quantification.
c. recruitment effort.
d. job description.
e. job advertisement.
Objective: 8.1
Answer : d.job description.
7. Cindy has identified the skills, abilities, and other credentials necessary for a database administrator in
her organization. She will record this information in a(n)
a. job description.
b. employee analysis.
c. job specification.
d. staffing survey.
e. on-the-job training agreement.
Objective: 8.1

Answer : c.job specification.
8. When managers conduct a job analysis, they may use this information to
a. establish performance appraisal systems.
b. develop appropriate selection methods.
c. set equitable compensation rates.
d. start planning for the organization's future HR needs.
e. all of these.
Objective: 8.1
Answer : e.all of these.
9. George, the Director of Human Resources, must start planning for human resources. What are the first
two steps involved in planning for human resources?
a. Employee development and internal promotion
b. Job analysis and recruiting
c. Labour supply and labour demand
d. Job analysis and forecasting
e. Recruiting and preparation of job descriptions
Objective: 8.1
Answer : d.Job analysis and forecasting
10. June, a new employee, has been given the responsibility of doing a job analysis, but she doesn't know
what it involves, so she asks you. You tell her that it is
a. a written statement that outlines the duties, tasks, and relationship with other positions in the organization.
b. an attempt to generate large numbers of qualified applicants.
c. the specific method by which the firm will attempt to reach its objectives.
d. the detailed study of the specific duties required for a particular job and human qualities required to perform t
job.
e. analysis of the characteristics of individuals who currently hold jobs with the firm.
Objective: 8.1
Answer : d.the detailed study of the specific duties required for a particular job and human qualities
required to perform that job.
11. Joe manages 15 workers on a production line. He has asked each of them to create a checklist of all
the duties they perform. Joe is working on
a. job analysis.
b. job specification.
c. job description.
d. person-job matching.
e. job relatedness.
Objective: 8.1
Answer : c.job description.

12. In addition to spending several hours with each of her subordinates, Stephanie is having one-on-one
meetings with each of them to determine their exact duties, specific skills, and education. Stephanie is
working on
a. job descriptions.
b. job specifications.
c. job analysis.
e. job relatedness.
Objective: 8.1
Answer : c.job analysis.
13. John is reading a document that describes the conditions under which his job will be done, the ways in
which it relates to other positions, and the duties he needs to perform. John is probably looking at
a. a job specification.
b. a job description.
c. job relatedness.
e. a job analysis.
Objective: 8.1
Answer : b.a job description.
14. A ________list(s) each important managerial position, who occupies it, how long that person will likely
stay in the job, and who is qualified for the job when the current occupant moves on.
a. job analysis
b. skills inventory
c. replacement chart
d. job specification
e. managerial grid
Difficulty: 1 Page-Reference: 245-246
Objective: 8.1
Answer : c.replacement chart
15. A ________ contains information on each employee's education, skills, work experiences, and career
aspirations.
a. job analysis
b. skills inventory
c. managerial grid
d. replacement chart
e. job specification
Objective: 8.1
Answer : b.skills inventory

16. Cindy has developed a database that contains information on each employee's education, skills, work
experience, and career aspirations. She plans to use this database to identify employees to fill
vacancies. This data base is a ___________.
a. job specification
b. skills inventory
c. managerial grid
d. job analysis
e. replacement chart
Objective: 8.1
Answer : b.skills inventory
17. Mark, a manager in production, is trying to determine the supply and demand of employees in order to
develop specific strategies. John is working on
a. job specifications.
b. job descriptions.
c. performance appraisal.
d. job analysis.
e. forecasting.
Objective: 8.1
Answer : e.forecasting.
18. When forecasting HR demand

a. industry comparisons are mandatory.
b. the company forecasts the number and type of people who will be available for hiring from the labour market
large.
c. employees are interviewed and asked how long they think they will remain with the company.
d. employees sign a contract stating the number of years they will stay.
e. a company must assess trends in past HR usage, future organizational plans, and general economic trends.
Objective: 8.1
Answer : e.a company must assess trends in past HR usage, future organizational plans, and general
economic trends.
19. Forecasting the supply of labour involves two tasks. The first task is to forecast
a. future organizational plans.
b. the number and type of employees who will be in the firm at some future date.
c. general economic trends.
d. trends in past HR usage.
e. demand for certain types of employees.
Objective: 8.1
Answer : b.the number and type of employees who will be in the firm at some future date.

20. After comparing future demand and internal supply, managers can make plans to manage predicted
shortfalls or overstaffing. If a shortfall is predicted, the company may do all of the following except
a. install labour-saving or productivity-enhancing systems.
b. hire new employees.
c. encourage early retirement.
d. transfer present employees into understaffed areas.
e. retrain present employees.
Objective: 8.1
Answer : c.encourage early retirement.
21. The process of attracting qualified persons to apply for the jobs that are open is called ________.
a. searching
b. soliciting
c. interviewing
d. recruiting
e. selection
Objective: 8.2
Answer : d.recruiting
22. The purpose of recruiting is to

a. determine wage rates for a new employee.
b. find the best candidate for a job.
c. choose the best candidate for a job.
d. develop a pool of interested, qualified applicants.
e. ensure that anyone who wishes to obtain a job has an equal opportunity to apply for it.
Objective: 8.2
Answer : d.develop a pool of interested, qualified applicants.
23. What are the two main phases of staffing?

a. Closed and open promotion systems
b. Recruitment and orientation
c. Job descriptions and job specifications
d. Open promotion systems and job analysis
e. Recruitment and selection
Objective: 8.2
Answer : e.Recruitment and selection
24. Cindy has placed an advertisement for a job vacancy in the employment section of the newspaper. This
is a form of
a. profit sharing.
b. external recruitment.
c. job analysis.
d. vestibule training.
e. internal recruitment.
Objective: 8.2

Answer : b.external recruitment.
25. Which of the following is not a form of external recruiting?

a. Use of a skill inventory
b. Employee referrals
c. Campus interviews
d. Advertising a vacancy in the newspaper
e. Use of employment agencies
Objective: 8.2
Answer : a.Use of a skill inventory
26. All of the following are external recruiting methods except

a. advertising.
b. campus interviews.
c. a skills inventory system.
d. hiring "walk-ins."
e. union hiring halls.
Objective: 8.2
Answer : c.a skills inventory system.
27. External recruiting methods include all of the following except

a. union hiring halls.
b. referrals by present employees.
c. advertising.
d. campus interviews.
e. promoting employees through the ranks.
Objective: 8.2
Answer : e.promoting employees through the ranks.
28. The use of newspaper advertisements; visits to high schools, colleges, and university campuses;
internet advertising; and use of employment agencies are part of
a. internal recruiting.
b. external recruiting.
c. community involvement.
d. internal training.
e. compensation studies.
Objective: 8.2
Answer : b.external recruiting.
29. What is the step in the staffing process in which managers must evaluate and choose the best
candidate?
a. Ability and aptitude tests
b. Organizational induction
c. Application or resume
d. Internal staffing
e. Selecting human resources

Objective: 8.2
Answer : e.Selecting human resources
30. When Sara, the human resource manager, attempts to determine the predictive value of a selection
technique, she is doing
a. validation.
b. certification.
c. training.
d. internal recruitment.
e. external recruitment.
Objective: 8.2
Answer : a.validation.
31. Once the recruiting process has attracted a pool of applicants, the next step is to select someone to
hire. The intent of the selection process is to gather information from applicants that will predict their job
success. The organization can only gather information about factors that are predictive of future
performance. This process is called
a. psychological profiling.
b. screening.
c. job specification.
d. validation.
e. none of these.
Objective: 8.2
Answer : d.validation.
32. Louis, an information-technology manager, needs to select a new employee. Which of the following
would Louis not normally use as a part of the employee selection process?
a. Performance appraisals
b. Ability and aptitude tests
c. Applications and resumes
d. Medical examinations
e. Reference checks
Objective: 8.2
Answer : a.Performance appraisals
33. Kim, public relations manager, has just completed the process of checking the references of several job
candidates. What should she do next?
a. Conduct screening interviews
b. Conduct medical and drug tests
c. Conduct an interviews with the candidates
d. Give ability/aptitude tests
e. Administer polygraph tests
Question ID: 08-1-33 Skill: Application
Objective: 8.2
Answer : c.Conduct an interviews with the candidates

34. Jerry, a marketing manager, has just conducted screening interviews with several job candidates. What
should he do next?
a. Consider applications and resumes
b. Give a polygraph test
c. Give an ability/aptitude test
d. Give medical/drug/polygraph tests
e. Check references
Objective: 8.2
Answer : c.Give an ability/aptitude test
35. Which of the following steps is not part of the selection process?
a. Development of a pool of applicants
b. Reference checks
c. Screening interview
d. Job offer
e. Screening of resumes and application forms
Objective: 8.2
Answer : a.Development of a pool of applicants
36. The first step in the selection process is

a. asking the candidate to fill out an application form.
b. doing reference checks.
c. doing a job analysis.
d. conducting an in-person interview.
e. posting the job.
Objective: 8.2
Answer : a.asking the candidate to fill out an application form.
37. Jim is an accounts-receivable manager who has received many applications for an accounts-receivable
clerk position. What would he most likely do next?
a. Interviews with his manager
b. Reference checks
c. Screening interviews
d. Polygraph tests
e. Give ability/aptitude tests
Objective: 8.2
Answer : c.Screening interviews
38. Which of the following is correct with regard to selecting human resources?
a. An application form is an inefficient method of gathering information about an applicant.
b. An assessment centre is a place where human resource professionals analyze an applicant's application form
c. The interview is a popular selection tool because it is almost always a good predictor of future job success.
d. Interviewers can increase interview validity by asking "curveball" questions, i.e., questions that job applicants
never be expected to be asked.
e. All of these are correct.
Objective: 8.2

Answer : d.Interviewers can increase interview validity by asking "curveball" questions, i.e., questions
that job applicants would never be expected to be asked.
39. Video assessments

a. provide a biased view of the corporation.
b. are more expensive than assessment centers.
c. are inexpensive, but unfortunately not very reliable.
d. have been shown to be inferior to old-fashioned one-on-one assessments.
e. give management greater insight into employee strengths and weaknesses before they are hired.
Objective: 8.2
Answer : e.give management greater insight into employee strengths and weaknesses before they are
hired.
40. Video assessment refers to

a. an expensive alternative to traditional hiring techniques.
b. videotaping employees on the job in order to evaluate their job performance.
c. having new hires watch videos that show a series of realistic work situations, and then asking them to choose
course of action to deal with the situation.
d. videotaping new hires during an interview in order to evaluate their personality and how well they present
themselves.
e. none of these.
Objective: 8.2
Answer : c.having new hires watch videos that show a series of realistic work situations, and then
asking them to choose a course of action to deal with the situation.
41. In an assessment centre

a. potential employees are assessed by a psychologist to determine if they are suitable for the job.
b. potential employees perform management tasks while being watched by an appraiser.
c. the emphasis is on giving potential employees paper-and-pencil tests to determine their suitability for the job
d. potential job candidates do actual (paid) work for the organization.
e. all of these are correct.
Objective: 8.2
Answer : b.potential employees perform management tasks while being watched by an appraiser.
42. Asking a prospective employee a question like "Tell me about a situation where you took the initiative"
would happen when the __________ approach is being used.
a. aptitude testing
b. behaviour-based interviewing
c. curveball
d. testing
e. assessment centre
Objective: 8.2
Answer : b.behaviour-based interviewing

43. Which of the following is correct with respect to behaviour-based interviewing?

a. It assesses how well an applicant is likely to get along with other workers if the applicant is hired.
b. A question like "Do you often take the initiative?" is a good example of the kind of question that would be ask
behaviour-based interview.
c. It focuses on finding out how an applicant has reacted to important or difficult job situations in the past and a
that these are a good indicator of how the person will react in the future.
d. The interviewer asks the applicant a highly structured series of questions.
Objective: 8.2
Answer : c.It focuses on finding out how an applicant has reacted to important or difficult job situations
in the past and assumes that these are a good indicator of how the person will react in the
future.
44. With regard to drug testing, it is correct to say that

a. according to Canadian Human Rights Commission policy, pre-employment drug testing and random drug tes
are generally permitted.
b. the Greater Toronto Airport Authority (GTAA) and Goodyear Canada were allowed to use drug and alcohol te
for safety-sensitive positions.
c. post-treatment checks for employees with a history of drug abuse are not allowed.
d. employers are allowed to deny selection because of a positive pre-employment drug test.
e. all of these statements are correct.
Objective: 8.2
Answer : b.the Greater Toronto Airport Authority (GTAA) and Goodyear Canada were allowed to use
drug and alcohol testing for safety-sensitive positions.
45. The process of introducing new employees to the organization so that they can more quickly become
effective contributors is known as
a. selecting.
b. orientation.
c. on-the-job training.
d. training and development.
e. vestibule training.
Objective: 8.3
Answer : b.orientation.
46. Which of the following is not part of orientation?

a. Providing information about pay days
b. Reading manuals
c. Taking a polygraph test
d. Introduction to co-workers
e. Learning about parking priorities
Objective: 8.3
Answer : c.Taking a polygraph test

47. The starting point in assessing training and development needs is conducting a
a. development analysis.
b. performance analysis.
c. needs analysis.
d. training analysis.
e. vestibule analysis.
Objective: 8.3
Answer : c.needs analysis.
48. You are responsible for training in your company, and have created a management training program to
take place at a local conference center. This is an example of
a. vestibule training.
b. off-the-job training.
c. a lecture program.
d. video conferencing.
e. mentoring.
Objective: 8.3
Answer : b.off-the-job training.
49. Employee training and development programs are used to

a. make up for some deficiency or to help employees acquire a new skill.
b. provide input into the job analysis process.
c. introduce employees to the business.
d. determine the wage and salary structure.
e. evaluate employee performance on the job.
Objective: 8.3
Answer : a.make up for some deficiency or to help employees acquire a new skill.
50. Suzy has been assigned to a veteran employee for the first week on a new job. She will follow him
around and learn the job by watching how he does it. This process is
a. vestibule training.
b. orientation.
c. performance appraisal.
d. off-the-job training.
e. on-the-job training.
Objective: 8.3
Answer : e.on-the-job training.
51. Elsie is using a simulator to learn how to fly a new jet without ever leaving the ground. In order to learn
this new skill set, Elsie is using
a. job expansion.
b. job shadowing.
c. vestibule training.
d. job rotation.
e. on-the-job training.
Objective: 8.3

Answer : c.vestibule training.
52. One major family of training techniques and methods consists of various work-based programs. This
includes all of the following except
a. systematic job rotations.
b. on-the-job training.
c. lecture or discussion approach.
d. vestibule training.
e. systematic job transfers.
Objective: 8.3
Answer : c.lecture or discussion approach.
53. Vestibule training is

a. a work simulation in which the job is performed under conditions closely simulating the actual work environm
b. an instructional-based program in which a trainer presents material in a descriptive fashion to those attending
trainee program.
c. a development program in which employees gain new skills at a location away from the normal work site.
d. training workers through the use of classroom-based programs.
e. a technique that ties training and development activities directly to task performance.
Objective: 8.3
Answer : a.a work simulation in which the job is performed under conditions closely simulating the
actual work environment.
54. This developmental process may be formal or informal and would include such items as being shown
how to use the photocopier or how to operate a new electronic mail system. It is called
a. performance appraisal.
b. orientation.
c. off-the-job training.
d. on-the-job training.
e. management development.
Objective: 8.3
Answer : d.on-the-job training.
55. Sally is part of an informal network of managers who discuss mutual problems, solutions, and
opportunities. Sally is involved in
a. mentoring.
d. group therapy.
e. networking.
Objective: 8.3
Answer : e.networking.

56. Management development programs usually try to enhance all of the following skills except
a. analytical skills.
b. conceptual skills.
c. networking skills.
d. problem-solving skills.
e. decision making skills.
Objective: 8.3
Answer : c.networking skills.
57. When an older, more experienced manager sponsors and teaches a younger, less experienced
manager, this is known as
a. mentoring.
d. group therapy.
e. networking.
Objective: 8.3
Answer : a.mentoring.
58. A few years ago, McMaster University president Peter George had his performance evaluated by staff,
union leaders, and board members. This was an example of
a. on-the-job training.
c. vestibule training.
d. 360-degree feedback.
e. a management development program.
Objective: 8.4
Answer : d.360-degree feedback.
59. Merilee has developed a ranking method that consists of a series of statements or questions about
some aspect of an individual's job performance (e.g., how much initiative the person takes). This is
called
a. a graphic rating scale.
b. the critical incident method.
c. the forced distribution method.
d. a simple ranking system.
e. the degree of agreement method.
Objective: 8.4
Answer : a.a graphic rating scale.
60. Adam, the manager of sewing production, has been asked to rank-order his team from best to worst.
This is an example of what type of ranking method?
a. High-low feedback
b. Graphic rating
c. Top-down order ranking
d. Forced distribution
e. Simple ranking


Objective: 8.4
Answer : e.Simple ranking
61. Tom is using an evaluation system that requires him to rate employee performance by recalling
examples of especially good or poor performance by an employee. This is called
a. the process improvement method.
b. the high-low performance assessment method.
c. the new work force method.
d. the high-visibility method.
e. the critical incident method.
Objective: 8.4
Answer : e.the critical incident method.
62. Which of the following is correct regarding performance appraisals?

a. They are required by law.
b. The appraisal process begins when the manager defines performance standards for the employee.
c. The process is completed when the employee's performance improves.
d. Organizations focus on information provided by the subordinate's peers.
e. All of these.
Objective: 8.4
Answer : b.The appraisal process begins when the manager defines performance standards for the
employee.
63. Lily has decided that 10 percent of the employees in her department will be categorized as
"outstanding." Lily is using the ______ of performance appraisal.
a. simple ranking method
b. complex ranking method
c. forced distribution method
d. graphic rating scale method
e. all-or-nothing method
Objective: 8.4
Answer : c.forced distribution method
64. When university and college teachers grade on the normal curve, they are essentially using which
method for appraising the performance of students?
a. Forced distribution method
b. Simple ranking method
c. Graphic rating scale
d. 360-degree feedback
e. None of these
Objective: 8.4
Answer : a.Forced distribution method

65. Computers B Us is thinking about evaluating the performance of its software programmers based on
the number of lines of code they produce. If the following facts were known, which one would suggest
that this idea is unwise?
a. Software programmers typically don't have direct contact with customers, nor do they decide on product
specifications.
b. The company has found a way to use fewer lines of code to perform a given function than its competitors.
c. Software programmers can decide to program in such a way that the number of lines required to perform a fu
increases.
d. The financial success of the company is dependent on having an effective software programming team.
e. Most of the current programmers would receive poor evaluations if they are evaluated based on the number
of code.
Objective: 8.4
Answer : c.Software programmers can decide to program in such a way that the number of lines
required to perform a function increases.
the number of errors they make. A decision to use this strategy is based on which of the following
assumptions?
a. Errors in software errors are more likely than errors in hardware.
b. All users are equally affected by software errors.
c. Software errors have had an increasing impact recently.
d. Software errors are always obvious to the user of the product.
e. It is possible to determine which programmer made the software error that is discovered.
Objective: 8.4
Answer : e.It is possible to determine which programmer made the software error that is discovered.
the market success of the products that they produce. This idea is vulnerable to what criticism?
a. Software programming is only one of many things that are required for a product to be successful in the mark
b. The idea is not attainable.
c. The idea does not give enough weight to the fact that good software programming enhances the customer's
experience.
d. The idea would require that the company change the way it evaluates software programmers.
e. The idea means that software programmers do not have to put forth any significant effort to achieve success
Objective: 8.4
Answer : a.Software programming is only one of many things that are required for a product to be
successful in the market.
68. Pay awarded to employees according to the relative value of their contributions is
a. merit pay.
b. sales commission.
c. knowledge-based pay.
d. incentive pay.
e. skill-based pay.
Objective: 8.5
Answer : a.merit pay.

69. The most general form of a merit pay plan is

a. the raise.
b. profit-sharing plan.
c. benefits.
d. a bonus.
e. gain-sharing program.
Objective: 8.5
Answer : a.the raise.
70. Jake is reviewing his salary, the bonus plan, the profit-sharing plan, and the benefit program. Jake is
looking at the
a. wages system.
b. salary system.
c. compensation system.
d. pay-for-performance system.
e. merit salary system.
Objective: 8.5
Answer : c.compensation system.
71. Wages are paid for ________, while salary is paid for ________.
a. getting a job done; time worked
b. time worked; number of units produced
c. number of units produced; getting a job done
d. time worked or number of units produced; getting a job done
e. time worked; unusually high performance
Objective: 8.5
Answer : d.time worked or number of units produced; getting a job done
72. Bill is looking at his pay cheque. He worked 38 hours last week, and since he is paid $10.00 per hour
his gross pay was $380.00. Bill's compensation is in the form of
a. variable pay.
b. workers' compensation.
c. salary.
d. wages.
e. bonus.
Objective: 8.5
Answer : d.wages.
73. Scott is looking at his pay cheque. He worked 48 hours last week but got paid the same as he did the
previous week when he worked only 36 hours. His compensation plan is based on
a. workers' compensation.
b. bonuses.
c. variable pay.
d. wages.
e. salary.
Objective: 8.5

Answer : e.salary.
74. George is paid 38 cents for every unit he produces. George is on a

a. salary program.
b. piece-rate incentive program.
c. wage program.
d. pay-for-performance program.
e. merit pay program.
Objective: 8.5
Answer : b.piece-rate incentive program.
75. When employees are awarded with pay for learning new skills, they are receiving
a. stock options.
b. gain-sharing.
c. pay-for-knowledge.
d. skill-based pay.
e. profit-sharing.
Objective: 8.5
Answer : c.pay-for-knowledge.
76. Sammy is looking at his pay cheque. He received $900 for producing 75 units. This pay is called
a. merit pay.
b. a stock option.
c. knowledge-based pay.
d. a piece-rate incentive plan.
e. skill-based pay.
Objective: 8.5
Answer : d.a piece-rate incentive plan.
77. The type of incentive program for major league baseball players that pays them extra money for hitting
over .300 or making the All-Star team is called
a. gain-sharing.
b. variable pay.
c. profit-sharing.
d. stock options.
e. a bonus.
Objective: 8.5
Answer : e.a bonus.
78. Workforce management systems

a. pay the most productive employees more than the less productive employees.
b. schedule the most productive staff to work at the store's busiest times.
c. focus on forming the most highly productive work teams.
d. manage the workforce so that employee satisfaction is maximized.
e. manage the workforce so that team incentives are emphasized, not individual incentives.
Objective: 8.5

Answer : b.schedule the most productive staff to work at the store's busiest times.
79. All of the following are considered incentive systems except

a. profit-sharing plans.
b. benefits.
c. individual incentive plans.
d. gain-sharing.
e. sales commissions.
Objective: 8.5
Answer : b.benefits.
80. Gina has heard good things about incentive programs, but doesn't know much about them. She asks
you for examples of incentive programs and you tell her about two such program. They are
a. employee-of-the-month awards and profit-sharing plans.
b. wages based on comparable worth and profit-sharing plans.
c. gain-sharing plans and profit-sharing plans.
d. wages based on comparable worth and gain-sharing plans.
e. employee recognition and profit-sharing plans.
Objective: 8.5
Answer : c.gain-sharing plans and profit-sharing plans.
81. After a very successful year when the firm exceeded targeted earnings levels by 10 percent, the CEO
of Bain Industries decided to give each employee extra pay equal to 10 percent of what they earned for
the year. Bain is using a plan called
a. merit salary.
b. pay-for-knowledge.
c. profit-sharing.
d. gain-sharing.
e. pay-for-performance.
Objective: 8.5
Answer : c.profit-sharing.
82. At Palliser Furniture, any profit resulting from production that exceeds a certain level is split 50-50
between the company and the employees. This is an example of
a. gain-sharing.
b. skill-based pay.
c. pay-for-knowledge.
d. profit-sharing.
e. a bonus.
Objective: 8.5
Answer : a.gain-sharing.

83. Takato wants to set up either a gain-sharing plan or a profit-sharing plan, but doesn't know the
difference between the two. You tell him that
a. profit-sharing plans are generally preferred by employees.
b. gain-sharing is based on cost savings from productivity improvements, while profit-sharing is based on the fir
profits.
c. gain-sharing plans generally result in more money being given to employees than profit-sharing plans do.
d. there is really very little difference in the two types of plans.
e. gain-sharing plans are generally used only in the public sector, while profit-sharing plans are generally used
the private sector.
Objective: 8.5
Answer : b.gain-sharing is based on cost savings from productivity improvements, while profit-sharing
is based on the firm's profits.
84. Brown Corp. distribute bonuses to all employees based upon reduced costs from working more
efficiently. The company is using ___________.
a. a profit-sharing plan.
b. a gain-sharing plan.
c. a merit salary system.
d. a bona fide occupational requirement.
e. an assessment centre.
Objective: 8.5
Answer : b.a gain-sharing plan.
85. Some benefits are voluntary and some are required by law. Benefits that companies often voluntarily
offer employees include all of the following except
a. life insurance.
b. dental benefits.
c. extended health coverage.
d. workers' compensation coverage.
e. disability insurance.
Objective: 8.5
Answer : d.workers' compensation coverage.
86. Shawn has been hurt while working on his job. The cost for him to have the injury repaired and to
recuperate is covered under
a. major medical insurance.
b. disability insurance.
c. health insurance.
d. workers' compensation.
e. hospitalization insurance.
Objective: 8.5
Answer : d.workers' compensation.

87. Lee Corp. has a plan under which a certain dollar amount of benefits per employee is set aside and
employees select from a variety of alternatives. This is an example of a(n)
a. variable benefits plan.
b. optional benefits plan.
c. alternative benefits plan.
d. discretionary benefits plan.
e. cafeteria benefits plan.
Objective: 8.5
Answer : e.cafeteria benefits plan.
88. Joan is finding that her current benefit package does not meet her needs since it is a "one size fits all"
approach. What would Joan likely recommend to her employer to improve her satisfaction with the
benefit package?
a. Impose a wage and salary freeze in order to expand the benefits offered.
b. Use a cafeteria benefit plan and let the employee select the benefits within a set monetary limit.
c. Lower commission rates for sales people in order to expand the benefits offered.
d. Pay employees more money so they can afford to purchase their own external benefits plan.
e. Offer only the benefits that are required by law.
Objective: 8.5
Answer : b.Use a cafeteria benefit plan and let the employee select the benefits within a set monetary
limit.
89. As a new employee of Mega Computers, Sam has received a package outlining possible benefits that
he may choose from. He has been given a specific amount of annual benefit dollars with which he can
select the benefits which best fit his situation. This is a(n)
a. discretionary benefits plan.
b. cafeteria benefits plan.
c. optional benefits plan.
d. alternative benefits plan.
e. variable benefits plan.
Objective: 8.5
Answer : b.cafeteria benefits plan.
90. Which of the following is true with respect to mandated benefits?

a. The Canada Pension Plan is in a deficit position, and it is doubtful that people retiring after 2030 will get their
entitlement from the plan.
b. Employment insurance premiums for employees are $3.80 per hundred dollars of earnings.
c. The workers' compensation premiums are related to each employer's expected future experience with job-re
accidents and illnesses.
d. Only employers pay premiums to an employment insurance fund.
e. All of these statements are true.
Objective: 8.5
Answer : c.The workers' compensation premiums are related to each employer's expected future
experience with job-related accidents and illnesses.

91. At Maremount Corp., ten percent of each salesperson's yearly bonus is based on whether the company
as a whole reaches its yearly financial goals. The company's compensation structure is based on which
fundamental principle?
a. People will work to accomplish a goal if they have a real stake in the reaching the goal.
b. Incentive structures should be as simple as possible.
c. An incentive scheme will be more effective if it encourages individuals to act in ways that benefit both society
the individual.
d. Compensation policies must be legal.
e. People are more likely to adhere to a policy if they have had some input into the development of the policy.
Objective: 8.5
Answer : a.People will work to accomplish a goal if they have a real stake in the reaching the goal.
92. At Maremount Corp., ten percent of each salesperson's yearly bonus is based on whether the company
as a whole reaches its yearly financial goals. The incentive plan is based on which assumption?
a. Salespeople are less interested in the company's success than other employees are.
b. Salespeople think that they can have a significant effect on the overall performance of the company.
c. In recent years, management has been concerned that salespeople have not consistently acted in the best in
of the company.
d. Financial incentives are the only effective way to motivate employees.
e. Employees at Maremount are not much different than salespeople at other companies in the industry.
Objective: 8.5
Answer : b.Salespeople think that they can have a significant effect on the overall performance of the
company.
93. Landon Industries is considering a merger with Lake Industries. Landon offers its employees
competitive salaries and generous benefit packages, but salaries at Lake are below the industry
average, and Lake's benefit packages is much lower than Landon's. Not surprisingly, the employees at
Landon are concerned that a merger with Lake would cause their benefits to decline. The CEO of
Landon thinks that the best way to overcome the employees' resistance to the merger is through
education and communication, but the CEO of Lake wants to force all employees in the newly merged
companies to accept the changes. Which of the following facts would MOST weaken the Landon CEO's
argument?
a. Lake's strong financial situation means outstanding long-term stability for the merged companies.
b. Both companies use several different tools to communicate their respective corporate cultures.
c. Lake's offer includes paying a higher price to Landon shareholders if the merged companies adopt Lake's be
policy.
d. Landon divisions are departmentalized on the basis of customers served.
e. Lake has promised that it will adopt Landon's policies for attracting and retaining talent.
Objective: 8.5
Answer : c.Lake's offer includes paying a higher price to Landon shareholders if the merged
companies adopt Lake's benefits policy.

companies to accept the changes. Which of the following facts would MOST strongly support the
Landon CEO's argument?
a. The terms of the merger include the guarantee that Lake employees with outstanding benefit packages get to
them in the merged company.
b. The shareholders of Landon support the merger.
c. Any savings that result from reducing benefits will be noted in a report one year after the merger occurs.
d. The recent economic downturn means people are having a harder time finding new jobs.
e. Lake employees advance up the hierarchy faster than employees in most other companies in the industry.
Objective: 8.5
Answer : e.Lake employees advance up the hierarchy faster than employees in most other companies
in the industry.
companies to accept the changes. If the following facts were known, which one would strengthen the
Lake CEO's argument?
a. Mergers in this industry are more common than mergers in most other industries.
b. If the two organizations have similar cultures, mergers are easier to do.
c. At Lake, the accounting, operations, and human resource departments are able to serve a much larger
organization.
d. Using coercion and threats to overcome resistance to change should be used only after other options have b
tried.
e. Lake gives its employees the opportunity to serve for a year or more in its overseas offices.
Objective: 8.5
Answer : c.At Lake, the accounting, operations, and human resource departments are able to serve a
much larger organization.
companies to accept the changes. If the following facts were known, which one would weaken the Lake
CEO's argument?
a. Several years ago, Lake merged with another company.
b. Employees at Landon have a variety of concerns about the merger, not just the concern about reduced bene
c. Management's credibilitiy is undermined if it attempts to overcome change by hiding the truth about the effec
the change.
d. Landon's customers are loyal to the salespeople they deal with, but they have little loyalty to Landon as a com
e. Employees at Landon are paid more than the people at Lake who are doing the same kind of work.


Objective: 8.5
Answer : d.Landon's customers are loyal to the salespeople they deal with, but they have little loyalty
to Landon as a company.
97. Maurice works for Logan Trainers, a company that provides management development workshops for
businesses. Maurice is very popular and companies often ask for him by name, even though Logan has
a lot of different instructors it could assign to workshops. Logan pays all instructors the same amount
for teaching a workshop, but last week Maurice asked that he be given a higher rate of pay than the
other instructors because he is so popular with companies. If the following facts were known, which one
would MOST strengthen Maurice's case?
a. He has led more training workshops than any other seminar leader who is employed by Logan.
b. If Logan lost Maurice, companies might stop coming to Logan for management development workshops.
c. Maurice has worked for Logan for fifteen years, which is longer than any other instructor.
d. Maurice is also a teacher in the local high school, and he has received several awards for his teaching.
e. The businesses that contract with Logan say that the workshops are essential to their operation.
Objective: 8.5
Answer : b.If Logan lost Maurice, companies might stop coming to Logan for management
development workshops.
98. Maurice works for Logan Trainers, a company that provides management development workshops for
businesses. Maurice is very popular and companies often ask for him by name, even though Logan has
a lot of different instructors it could assign to workshops. Logan pays all instructors the same amount
for teaching a workshop, but last week Maurice asked that he be given a higher rate of pay than the
other instructors because he is so popular with companies. If the following facts were known, which one
would MOST strengthen Logan's argument to keep Maurice at his current contract rate?
a. No one from Logan has ever directly observed Maurice's performance in presenting a workshop.
b. Maurice does not receive retirement benefits because he is not a full-time worker at Logan.
c. Logan has received very few applications from other instructors.
d. Logan uses a single-rate pay system for contingent workers.
e. There is no other agency in the city with whom Maurice could contract to provide similar workshops.
Objective: 8.5
Answer : e.There is no other agency in the city with whom Maurice could contract to provide similar
workshops.
99. Nondiscrimination in employment on the basis of race, colour, creed, sex, or national origin is
a. reverse discrimination.
b. equal employment opportunity.
c. equal pay.
d. comparable worth.
e. affirmative action.
Objective: 8.6
Answer : b.equal employment opportunity.

100. What is the objective of the Canadian Human Rights Act?

a. To ensure that everyone who wants a job can have one
b. To protect immigrants from being mistreated while on the job
c. To ensure that everyone who wants a job has an equal opportunity to compete for it
d. To prevent employers from discriminating among job applicants on the basis of past experience
e. All of these are objectives
Objective: 8.6
Answer : c.To ensure that everyone who wants a job has an equal opportunity to compete for it
101. What is the difference between the Employment Equity Act of 1986 and the Canadian Human Rights
Act of 1977?
a. The former applies only to government employees, while the latter applies only to private-sector employees
b. The former prohibits employment discrimination against four designated groups (women, visible minorities,
Aboriginal people, and people with disabilities), while the latter prohibits a variety of practices in recruiting,
selecting, and dismissing personnel.
c. The former supersedes the latter.
d. The former doesn't try to achieve employment equity, while the latter does.
e. All of these statements are correct.
Objective: 8.6
Answer : b.The former prohibits employment discrimination against four designated groups (women,
visible minorities, Aboriginal people, and people with disabilities), while the latter prohibits a
variety of practices in recruiting, selecting, and dismissing personnel.
102. The ________ prohibits a wide variety of practices in recruiting, selecting, promoting, and dismissing
personnel.
a. Canada Labour Standards Act
b. National Labour Relations Act
c. Canadian Human Rights Act
d. Canadian Labour Relations Act
e. Employment Equity Act of 1986
Objective: 8.6
Answer : c.Canadian Human Rights Act
103. When an employer may choose one applicant over another based on overriding characteristics of the
job, this is called
a. comparable worth.
b. discrimination.
c. harassment.
d. bona fide occupational requirement.
e. human rights.
Objective: 8.6
Answer : d.bona fide occupational requirement.

104. The Athletic Club hires only women to supervise the women's locker room. This is an example of
a. comparable worth.
b. discrimination.
c. harassment.
e. human rights.
Objective: 8.6
Answer : d.bona fide occupational requirement.
105. The ________ is federal legislation that designates four groups as employment disadvantaged:
women, visible minorities, aboriginal people, and people with disabilities.
a. Equal Pay Act of 1963
b. Canadian Human Rights Act
c. Fair Labour Standards Act
d. Employment Equity Act of 1986
e. Canadian Employment Rights Act
Objective: 8.6
Answer : d.Employment Equity Act of 1986
106. The program for the same wages to be paid for jobs that have similar value to a firm regardless of the
gender of the job holder is
a. equal employment opportunity.
b. reverse discrimination.
c. equal pay.
d. affirmative action.
e. comparable worth.
Objective: 8.6
Answer : e.comparable worth.
107. Comparing dissimilar jobs, such as those of nurses and mechanics, would be most likely necessary if a
manager is pursuing the idea of
a. bona fide occupational requirement.
b. affirmative action.
c. comparable worth.
d. reverse discrimination.
e. equal pay.
Objective: 8.6
Answer : c.comparable worth.
108. Ann keeps hearing the term "comparable worth." She is confused about it, so you explain that it means
a. that an employer cannot discriminate against workers who are older than 40 years of age.
b. that handicapped employees should be paid the same as their non-handicapped peers when they perform
comparable work.
c. men and women should receive equal wages.
d. wages should be the same for men and women who hold jobs which are of comparable value to the firm.
e. men and women should be paid the same wages when their work requires equal skill, effort, and responsib
is performed under the same conditions.


Objective: 8.6
Answer : d.wages should be the same for men and women who hold jobs which are of comparable
value to the firm.
109. What is the main argument that opponents of comparable worth make?
a. Women are not as strong as men.
b. The average woman spends a lower proportion of her potential years of work actually working.
c. Comparable worth ignores the supply and demand aspects of labour.
d. Comparable worth costs too much money.
e. Women live longer than men.
Objective: 8.6
Answer : c.Comparable worth ignores the supply and demand aspects of labour.
110. Mimi, a senior secretary, has a value to the company that is about the same as Tom, who is a
mechanic. She has found out that Tom is paid about the same as she is. The firm's successful program
is
a. equal pay.
b. male subjugation.
d. affirmative action.
e. reverse discrimination.
Objective: 8.6
Answer : c.comparable worth.
111. Requests for sexual favors, unwelcome sexual advances, or verbal or physical conduct of a sexual
nature that creates an intimidating or hostile environment for an employee is called
a. discrimination.
b. an antiprogressive organization.
c. a hostile work environment.
d. repetitive strain.
e. sexual harassment.
Objective: 8.6
Answer : e.sexual harassment.
112. Suppose that a company runs a series of programs to reduce the problem of sexual harassment in the
workplace. A survey conducted after the programs were completed showed that employee attitudes
and behaviours showed no improvement. Upon seeing these results, one manager concluded that the
survey was conducted improperly. What assumption was being made by this manager?
a. That every employee would benefit from some training in stopping sexual harassment.
b. That the company has more "bad" employees than other companies in the industry.
c. That the program that was offered was the most effective programs that could have been offered.
d. The effects of the educational programs in changing attitudes were greater than they were in changing beh
e. That educational programs have a significant effect on attitudes and behaviours.
Objective: 8.6
Answer : e.That educational programs have a significant effect on attitudes and behaviours.

113. Jane, a supervisor, has offered George, a subordinate, a raise and promotion in exchange for a sexual
relationship. This is an example of ________ harassment.
a. employment-at-will
b. quid pro quo
c. reverse discrimination
d. affirmative action
e. hostile work environment
Objective: 8.6
Answer : b.quid pro quo
114. Mary's male coworkers routinely make off-colour jokes and display calendars of scantily clad women.
This is an example of ________ harassment.
a. reverse discrimination
b. a hostile work environment
c. affirmative action
d. "boys-will-be-boys" behaviour
e. quid pro quo harassment
Objective: 8.6
Answer : b.a hostile work environment
115. A company is liable in cases of sexual harassment

a. always, even if the harassment was done only once.
b. under no circumstances, as it is the actions of two private individuals.
c. only when the person doing the harassment holds a management position and the person being harassed
lower-level employee.
d. if management knew about the harassment but decided to do nothing about it.
e. only if the management intentionally harassed an employee.
Objective: 8.6
Answer : d.if management knew about the harassment but decided to do nothing about it.
116. To deal effectively with the potential for sexual harassment, managers should do all of the following
except
a. establish a procedure for dealing with harassment complaints.
b. train employees to recognize and refrain from sexual harassment.
c. try to work out sexual harassment complaints informally.
d. take action against those who are involved in sexual harassment.
e. develop clear and enforceable policies dealing with sexual harassment.
Objective: 8.6
Answer : c.try to work out sexual harassment complaints informally.
117. Safety supervisors and workers' compensation boards have to deal with claims of repetitive strain
injuries. It is important to know that repetitive strain injuries
a. account for a clear majority of all time-loss claims.
b. are injuries that are not work-related.
c. account for nearly half of all time-loss claims.
d. account for one-quarter of all time-loss claims.
e. are very rare.


Objective: 8.6
Answer : c.account for nearly half of all time-loss claims.
118. You are a pension consultant. In designing pension plans for companies you need to know that the
trend for retirement is:
a. the average age has remained about the same.
b. the average age is lower than it used to be.
c. there is no discernible trend.
d. the median age has been cyclical, being lower in good economic times and higher in poor economic times.
e. the median age is higher than it used to be.
Objective: 8.6
Answer : b.the average age is lower than it used to be.
119. The range of workers' attitudes, values, beliefs, and behaviours that differ by gender, race, and
ethnicity is called
a. glass ceiling.
d. reverse discrimination.
e. workforce diversity.
Objective: 8.7
Answer : e.workforce diversity.
120. The DuPont Corporation offers a course for managers that teaches them to acknowledge the
individuality of each person they employ. This is an example of
a. employment equity.
c. workforce diversity.
e. sensitivity training.
Objective: 8.7
Answer : c.workforce diversity.
121. Which of the following is correct with regard to workforce diversity?

a. The proportion of Aboriginals in the workforce has risen rapidly during the last decade, but will soon level o
b. About half of the people who immigrated to Canada during the 1990s were visible minorities.
c. By 2017, visible minorities will comprise more than 50 percent of the populations of Toronto and Vancouve
d. Immigration officials are now starting to restrict the entrance of visible minorities into Canada.
Objective: 8.7
Answer : c.By 2017, visible minorities will comprise more than 50 percent of the populations of Toronto
and Vancouver.

122. Workers who are experts in specific fields and who add value because of what they know, rather than
how long they have worked or the job they do, are known as
a. knowledge workers.
b. information workers.
c. expert workers.
d. value workers.
e. specialized workers.
Objective: 8.7
Answer : a.knowledge workers.
123. Which of the following is correct with regard to knowledge workers?

a. They add value to an organization because of their connections to technical workers in other firms.
b. They tend to work for traditional manufacturing firms.
c. The need for knowledge workers is gradually declining as the general education level of the workforce incre
d. Training updates are important for knowledge workers so that their skills do not become obsolete.
e. All of these.
Objective: 8.7
Answer : d.Training updates are important for knowledge workers so that their skills do not become
obsolete.
124. Knowledge workers include

a. top managers.
b. middle managers.
c. musicians.
d. production line workers.
e. engineers.
Objective: 8.7
Answer : e.engineers.
125. Computer scientists, engineers, and physical scientists are all be examples of ________.
a. contingent workers
b. temporary workers
c. shop stewards
d. knowledge workers
e. technical experts
Objective: 8.7
Answer : d.knowledge workers
126. An employee who is hired on something other than a permanent or full-time basis is a
a. technical employee.
b. knowledge worker.
c. contingent worker.
d. knowledge expert.
e. shop steward.
Objective: 8.7

Answer : c.contingent worker.
127. Independent contractors, on-call workers, temporary employees, contract employees, and leased
employees are all examples of
a. contingent workers.
b. flextime workers.
c. migratory workers.
d. telecommuters.
e. union trustbusters.
Objective: 8.7
Answer : a.contingent workers.
128. Categories of contingent workers include all of the following except

a. knowledge workers.
b. freelancers.
c. on-call workers.
d. part-time workers.
e. contract employees.
Objective: 8.7
Answer : a.knowledge workers.
129. Cindy works on a temporary basis in order to supplement the organization's permanent workforce.
Cindy is considered to be a
a. knowledge worker.
b. supervisor.
c. technician.
d. manager.
e. contingent worker.
Objective: 8.7
Answer : e.contingent worker.
Chapter 08 True/False Questions
1. Human resources management involves the recruitment, development, and maintenance of an

effective workforce.
a. True
b. False
Objective: 8.1
Answer : a.True
2. Job analysis is a detailed study of a job to determine the specific duties and the human qualities
required to perform that job.
a. True
b. False
Objective: 8.1

Answer : a.True
3. A job description outlines the key tasks, objectives, and responsibilities of a job.
a. True
b. False
Objective: 8.1
Answer : a.True
4. In most companies, the job description is more important than the job specification.
a. True
b. False
Objective: 8.1
Answer : b.False
5. Planning for human resources involves an analysis of the job and recruitment of a pool of job
applicants.
a. True
b. False
Objective: 8.1
Answer : b.False
6. A key purpose of forecasting is to determine the demands that workers are likely to make for higher
wages and better working conditions.
a. True
b. False
Objective: 8.1
Answer : b.False
7. At higher levels of the organization, the technique most commonly used to plan for specific people and
positions is the replacement chart.
a. True
b. False
Objective: 8.1
Answer : a.True
8. After comparing future demand and internal supply, managers can make plans to manage predicted
shortfalls or overstaffing. If a shortfall is predicted, extra employees can be transferred and early
retirement may be encouraged.
a. True
b. False
Objective: 8.1
Answer : b.False

9. The purpose of recruitment is to select the best applicant available for the position.
a. True
b. False
Objective: 8.1
Answer : b.False
10. A study by the Canadian Federation of Independent Business found that the top three characteristics
employers are looking for when they hire people are good grooming, the ability to work well with others,
and good communication skills.
a. True
b. False
Objective: 8.2
Answer : b.False
11. Both external and internal staffing start with effective recruiting.
a. True
b. False
Objective: 8.2
Answer : a.True
12. Promotion from within can help build morale and keep high-quality employees from leaving.
a. True
b. False
Objective: 8.2
Answer : a.True
13. External recruiting methods include advertising, union hiring halls, referrals by present employees,
internet advertising, and campus interviews.
a. True
b. False
Objective: 8.2
Answer : a.True
14. The questionnaire that asks for information such as the background, experience, and education of each
applicant is known as the job application form.
a. True
b. False
Objective: 8.2
Answer : a.True

15. Marilyn has just received a batch of job applications. Her next step in the selection process is to do
reference checks.
a. True
b. False
Objective: 8.2
Answer : b.False
16. The two basic processes of external staffing are recruitment and selection.
a. True
b. False
Objective: 8.2
Answer : a.True
17. Experience has shown that promoting staff from within is generally the best approach.
a. True
b. False
Objective: 8.2
Answer : b.False
18. The process of determining the predictive value of information is called validation.
a. True
b. False
Objective: 8.2
Answer : a.True
19. An assessment centre focuses on conducting interviews to determine whether job candidates are
suitable hires for the firm.
a. True
b. False
Objective: 8.2
Answer : b.False
20. Many companies are placing more emphasis on testing and less emphasis on interviewing because job
candidates are becoming clever at giving all the "right" answers during interviews.
a. True
b. False
Objective: 8.2
Answer : a.True
21. Behaviour-based interviewing works well when assessing candidates for managerial positions, but not
so well when assessing candidates for technical positions like accounting.
a. True
b. False


Objective: 8.2
Answer : b.False
22. According to the Canadian Human Rights Commission policy, pre-employment drug testing and
random drug testing are not permitted, but recent court rulings have not necessarily been consistent
with this policy.
a. True
b. False
Objective: 8.2
Answer : a.True
23. The first step for a new employee is to enter a training program.
a. True
b. False
Objective: 8.3
Answer : b.False
24. Vestibule training is an instructional-based program in which a trainer presents material in a descriptive
fashion to those attending a trainee program.
a. True
b. False
Objective: 8.3
Answer : b.False
25. On-the-job training is generally more effective than vestibule training.

a. True
b. False
Objective: 8.3
Answer : b.False
26. Systematic job rotations and transfers are more likely to be used for lower-level managers or operating
employees.
a. True
b. False
Objective: 8.3
Answer : a.True
27. Instructional-based programs include on-the-job training, vestibule training, and systematic job rotations
and transfers.
a. True
b. False
Objective: 8.3

Answer : b.False
28. When airline pilots use the Airbus 380 simulator, this is an example of vestibule training.
a. True
b. False
Objective: 8.3
Answer : a.True
29. Networking and mentoring are informal means of management development.

a. True
b. False
Objective: 8.3
Answer : a.True
30. Reverse mentoring is becoming more common because of the popularity of social media.
a. True
b. False
Objective: 8.3
Answer : a.True
31. Training and development programs are used to learn new skills or to correct a deficiency.
a. True
b. False
Objective: 8.3
Answer : a.True
32. A performance appraisal is primarily used to judge the effectiveness of training, such as an accident
prevention program.
a. True
b. False
Objective: 8.4
Answer : b.False
33. A performance appraisal is used to evaluate how well an individual employee is doing in his or her job.
a. True
b. False
Objective: 8.4
Answer : a.True
34. The simple ranking method is more appropriate for upper-level management positions, while the forced
distribution method is more appropriate for lower-level management positions.
a. True
b. False


Objective: 8.4
Answer : b.False
35. Barbara uses a rating system that consists of a series of statements about some aspect of an
individual's job performance, and has five possible responses: strongly agree, agree, neither agree nor
disagree, disagree, and strongly disagree. Barbara is using the critical incident method to rate her
employees.
a. True
b. False
Objective: 8.4
Answer : b.False
36. The simple ranking method requires a manager to rank-order from best to worst each member of a
particular workgroup or department.
a. True
b. False
Objective: 8.4
Answer : a.True
37. The simple ranking method involves grouping employees into predefined frequencies of performance
ratings.
a. True
b. False
Objective: 8.4
Answer : b.False
38. A critical incident is simply an example of especially good or poor performance on the part of the
employee.
a. True
b. False
Objective: 8.4
Answer : a.True
39. Wages and salary are interchangeable terms that both refer to the amount of money an employee is
paid.
a. True
b. False
Objective: 8.5
Answer : b.False
40. The highest-paid Canadian CEOs earn 189 times what the average Canadian worker earns.
a. True
b. False

Objective: 8.5
Answer : a.True
41. Job evaluation is mainly concerned with establishing internal pay equity.
a. True
b. False
Objective: 8.5
Answer : a.True
42. John has been at Mountain Co. for over 20 years and has seniority over Peter. This means that he will
have priority in promotions over Peter.
a. True
b. False
Objective: 8.5
Answer : b.False
43. Company-wide incentive plans include pay-for-performance, profit-sharing, gain-sharing, and pay-for-
knowledge.
a. True
b. False
Objective: 8.5
Answer : b.False
44. A profit-sharing plan means that employees receive a bonus when they reduce costs.
a. True
b. False
Objective: 8.5
Answer : b.False
45. Compensation includes not only wages or salaries but incentives and benefits programs.
a. True
b. False
Objective: 8.5
Answer : a.True
46. Merit pay awards pay according to the relative value of employee contributions.
a. True
b. False
Objective: 8.5
Answer : a.True

47. When Palliser Furniture introduced a plan to reward employees for increasing production, this was an
example of a gain-sharing plan.
a. True
b. False
Objective: 8.5
Answer : a.True
48. Gain-sharing and profit-sharing are essentially identical incentive programs.

a. True
b. False
Objective: 8.5
Answer : b.False
49. Individual incentive plans reward individual performance on a real-time basis, that is, they give some
financial reward for outstanding performance immediately or soon after it happens.
a. True
b. False
Objective: 8.5
Answer : a.True
50. Workforce management systems develop data on the productivity of retail workers and are used to
schedule the most productive staff to work at the busiest times.
a. True
b. False
Objective: 8.5
Answer : a.True
51. The Canada Pension Plan is in a worrisome deficit position.

a. True
b. False
Objective: 8.5
Answer : b.False
52. The federal government requires that employers provide incentive programs such as retirement
benefits.
a. True
b. False
Objective: 8.5
Answer : b.False
53. A cafeteria benefits plan provides a free lunch for all employees who are covered by the plan.
a. True
b. False


Objective: 8.5
Answer : b.False
54. "Bona fide occupational" requirement means that an employer can choose one worker over another
based on overriding characteristics of the job.
a. True
b. False
Objective: 8.6
Answer : a.True
55. The basic goal of equal employment opportunity regulations in Canada is to ensure that individuals who
want a job and are qualified for it actually get the job.
a. True
b. False
Objective: 8.6
Answer : b.False
56. The Canadian Human Rights Act guarantees a job to any qualified person who wants one.
a. True
b. False
Objective: 8.6
Answer : b.False
57. The Employment Equity Act of 1986 designates four groups as employment disadvantaged: women,
visible minorities, Aboriginal people, and people with disabilities. These four groups comprise about 60
percent of the Canadian workforce.
a. True
b. False
Objective: 8.6
Answer : a.True
58. Comparable worth programs focus mostly to paying similar wages or salaries to individuals who hold
that jobs that are of equal value to the employer.
a. True
b. False
Objective: 8.6
Answer : a.True
59. The application of the comparable worth concept may result in very similar pay for jobs that are very
different.
a. True
b. False
Objective: 8.6

Answer : a.True
60. Critics of comparable worth say that it ignores the supply and demand aspects of labour; that is, it
forces companies to pay people more than the open market price for their labour (which may happen in
jobs where there is a surplus of workers).
a. True
b. False
Objective: 8.6
Answer : a.True
61. Comparable worth requires that employers use the same pay scale for employees regardless of their
race, colour, religion, national origin, or sex.
a. True
b. False
Objective: 8.6
Answer : b.False
62. Quid pro quo harassment is the most blatant form of sexual harassment, while the creation of a hostile
work environment is more subtle.
a. True
b. False
Objective: 8.6
Answer : a.True
63. In spite of the abolishment of a mandatory age for retirement in most provinces, workers in Canada are
actually retiring earlier than they used to.
a. True
b. False
Objective: 8.6
Answer : a.True
64. Workforce diversity refers to the range of workers' attitudes, values, beliefs, and behaviours that differ
by gender, race, ethnicity, age, and physical abilities.
a. True
b. False
Objective: 8.7
Answer : a.True
65. In recent years, the number of contingent workers has increased dramatically.
a. True
b. False
Objective: 8.7
Answer : a.True

66. Categories of contingent workers include independent contractors, but not on-call workers.
a. True
b. False
Objective: 8.7
Answer : b.False
Chapter 08 Short Answer Questions
1. What are the key activities of human resource management?

Objective: 8.1
Answer : - attracting, developing, and maintaining an effective workforce
2. What are the two documents that result from job analysis?
Objective: 8.1
Answer : Job description and job specification.
3. What type of information is included in a skills inventory?

Objective: 8.1
Answer : A skills inventory contains information on each employee's education, skills, work experience,
and career aspirations.
4. What is recruitment?
Objective: 8.2
Answer : Recruitment is the process of attracting qualified persons to apply for jobs an organization is
seeking to fill.
5. List four external recruitment methods.

Objective: 8.2
Answer : (Answers will vary.) Advertising, campus interviews, employment agencies, executive search
firms, union hiring halls, referrals by present employees, and hiring walk-ins.
6. What is validation?
Objective: 8.2
Answer : Validation is the process of determining the predictive value of a selection technique.
7. What is vestibule training?

Objective: 8.3
Answer : Vestibule training is off-the-job training conducted in a simulated environment.

8. What is the purpose of a performance appraisal?

Objective: 8.4
Answer : Employers conduct performance appraisal to determine the degree at which an employee is
performing his/her job.
9. What is a piece-rate incentive plan?

Objective: 8.4
Answer : A compensation program where an employee receives a certain amount of money for each
unit produced.
10. List three forms of performance-based compensation.

Objective: 8.5
Answer : individual incentive compensation systems, group and team compensation systems, and
workforce management systems
11. Describe two team and group incentive plans.

Objective: 8.5
Answer : Profit-sharing plans and gain sharing
12. What are the two types of sexual harassment?

Objective: 8.6
Answer : Quid pro quo harassment and hostile work environment
13. What are knowledge workers?

Objective: 8.7
Answer : Knowledge workers are employees who are valuable because of the knowledge they
possess.
14. What are the various categories of contingent workers?

Objective: 8.7
Answer : independent contractors, on-call workers, temporary workers, and contract workers
Chapter 08 Essay Questions
1. What is the difference between job analysis, job description, and job specification?
Objective: 8.1

Answer : - job analysis is first and evaluates the duties of a job and the qualities to perform it
- job description is derived from job analysis and summarizes objectives, tasks, and
responsibilities
- job specification covers the skills, education, and experience needed to do the job
2. Why would a business firm wish to select employees for promotion from within the organization?
Describe how an internal staffing system works.
Objective: 8.2
Answer : - knowledgeable about current employees (skills, attitudes, work habits, etc.)
- promotion from within can help build morale and keep high-quality employees from leaving
- in unionized firms, the procedures for notifying employees of internal job-change
opportunities are usually spelled out in the union contract
- for higher-level positions, a skills inventory system may be used to identify internal
candidates or managers may be asked to recommend individuals who should be considered
3. What does the organization hope to accomplish in a recruiting effort? Identify ways that this recruiting
may be accomplished.
Objective: 8.2
Answer : - to generate a large number of potential employees
- develop a pool of interested, qualified applicants for a position
- ways:
- current employees
- visit high schools, universities, vocational schools, and colleges
- labour unions' membership rolls
- advertise in newspapers, trade publications
- internet advertising
- help of public and private employment agencies
- word of mouth
- personal recommendations
- unsolicited letters and resumes from job seekers
4. What are the typical stages of selecting from external candidates?

Objective: 8.2
Answer : - application or resumes
- screening interview
- ability/aptitude test
- reference checks
- interview with manager
- medical, drug, and polygraphs
5. What types of activities take place in the selection stage? Identify the variety of selection techniques
that are used.
Objective: 8.2

Answer : - sort through pool of candidates to choose the best one for a job
- techniques:
- applications
- ability and aptitude tests
- resumes
- reference checks
- screening interviews
- on site interview
- medical, drug and polygraph tests
6. Describe the human resources development process.

Objective: 8.3
Answer : - begins with orientation, then proceeds to the assessment of training and development
needs including the performance of a needs analysis and selecting the best training
techniques and methods.
7. What are work-based programs? What are the three common methods of work-based training?
Objective: 8.3
Answer : - Work-based programs tie training and development activities directly to task performance
- Three common methods:
- on-the-job training: those development programs in which employees gain new skills while
performing them at work
- vestibule training: a work simulation in which the job is performed under conditions closely
simulating the actual work environment
- systematic job rotations and transfers: a technique in which an employee is systematically
rotated or transferred from one job to another
8. What is the difference between instructional-based programs and work-based programs?

Objective: 8.3
Answer : work-based: ties training activities directly to task performance
instructional-based: training through the use of classroom-based programs
9. What are instructional-based programs? What are the two common methods of instructional-based
training?
Objective: 8.3
Answer : - Instructional-based programs: training workers through the use of classroom-based
programs such as the lecture approach
- Two common methods:
- lecture or discussion approach: an instructional-based program in which a trainer presents
material in a descriptive fashion to those attending a trainee program
- off-the-job training: those development programs in which employees learn new skills at a
location away from the normal work site
10. What is the purpose of a performance appraisal system? Explain how a good system works and how
management uses the information obtained through this system.
Objective: 8.4

Answer : - a formal program for comparing employees' actual performance with expected
performance; used in making decisions about training, promoting, compensation, and firing
- make job performance expectations clear to an employee
- observe performance
- compare expectations with actual performance (rating scale)
- written appraisal
- decisions about any raise, promotion, demotion, or firing of the employee
- meet with employee to discuss the appraisal
11. There are many methods used to appraise performance. Some of the methods are based on relative
rankings and others are based on ratings. Discuss four of these methods.
Objective: 8.4
Answer : - Ranking Methods
- simple ranking method: a method of performance appraisal that requires a manager to rank-
order from top to bottom or from best to worst each member of a particular work group or
department
- forced distribution method: a method of performance appraisal that involves grouping
employees into predefined frequencies of performance ratings
- Rating Methods
- graphic rating scale: a statement or question about some aspect of an individual's job
performance for which the rater must select the response that fits best
- critical incident method: a technique of performance appraisal in which raters recall
examples of especially good or poor performance by an employee and then describe what
the employee did (or did not do) that led to success or failure
12. Why do so many business firms have employee compensation and benefit programs? Identify and
describe some of the usual benefits.
Objective: 8.5
Answer : - to retain skilled workers
- to make employees feel valued while simultaneously keeping company costs to a minimum
- parts of a compensation and benefit scheme: wages, salary, incentive program, gain-
sharing plan, profit-sharing plan, benefits, cafeteria benefits, retirement plans
13. Identify and discuss the various types of incentive compensation plans.
Objective: 8.5
Answer : - piece rate incentive plan: a compensation system in which an organization pays an
employee a certain amount of money for every unit produced
- individual incentive plans: a compensation system in which an employer gives an individual
a salary increase or some other financial reward for outstanding performance immediately or
shortly after the performance occurred
- sales commission: paying salespeople based on the number of units they sell or the dollar
value of sales they generate for the company
- gain-sharing program: an incentive program in which employees receive a bonus if the
firm's costs are reduced because of greater worker efficiency and/or productivity
- profit-sharing plan: an incentive program in which employees receive a bonus depending on
the firm's profits
14. What is a cafeteria-style benefits plan?


Objective: 8.5
Answer : - A flexible approach to providing benefits in which employees are allocated a certain sum to
cover benefits and can "spend" this allocation on the specific benefits they prefer.
- The organization typically establishes a budget, indicating how much it is willing to spend,
per employee, on benefits. Employees are then presented with a list of possible benefits and
the cost of each. They are free to put the benefits together in any combination they wish.
15. Discuss some of the facts/issues of retirement.

Objective: 8.6
Answer : - workers are retiring earlier than they used to
- boomer couples are unlikely to retire at the same time
- in Canada workers have successfully challenged mandatory retirement rules
- some companies need the expertise of older workers
- women often stay in the workforce longer than their husbands
- research shows employees who stay on the job past 65 are usually the most productive
ones
16. Describe the concept of bona fide occupational requirements and provide two examples.
Objective: 8.6
Answer : - when an employer may choose one applicant over another based on overriding
characteristics of the job
- examples could include:
- requiring delivery driver applicants to be tested to see if they can lift 30 kilograms since the
product being delivered weighs 30 kilograms
- a woman hired to run women's locker room
17. Explain the procedures to deal effectively with potential sexual harassment.
Objective: 8.6
Answer : - develop clear and enforceable policies dealing with sexual harassment
- inform all employees about the existence of these policies
- train employees to recognize and refrain from sexual harassment
- take complaints about sexual harassment seriously
- establish a procedure for dealing with harassment complaints
- take action against those who are involved in sexual harassment
18. In an effort to reduce costs, companies are hiring contingent workers. Explain how this statement can
be misleading.
Objective: 8.7
Answer : Employers must be able to document their labour-cost savings precisely and compare that
with how much they would be paying people in wages and benefits if they were on
permanent staff. As well, contingent workers might be less effective performers than
permanent workers.
19. Discuss the four keys to using contingent and temporary workers effectively.
Objective: 8.7

Answer : - careful planning - need to integrate workers into the workplace in an organized fashion
rather than calling them in sporadically without notice
- understanding this type of worker and realizing their advantages and disadvantages i.e.
expecting too much from contingent workers
- carefully assessing the costs associated with this course of action
- fully understanding their own strategies including how they intend to manage temporary
workers including their integration into the workplace

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Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 8—Managing Human Resources

Business Canadian 8th Edition Griffin

Full download at:

Chapter 08: Managing Human Resources

Chapter 08 Multiple Choice Questions

Copyright © 2014 Pearson Canada Inc. 1

Copyright © 2014 Pearson Canada Inc. 2

Answer : c.job specification.

Copyright © 2014 Pearson Canada Inc. 3

Copyright © 2014 Pearson Canada Inc. 4

18. When forecasting HR demand

Copyright © 2014 Pearson Canada Inc. 5

22. The purpose of recruiting is to

23. What are the two main phases of staffing?

Copyright © 2014 Pearson Canada Inc. 6

Answer : b.external recruitment.

25. Which of the following is not a form of external recruiting?

26. All of the following are external recruiting methods except

27. External recruiting methods include all of the following except

Copyright © 2014 Pearson Canada Inc. 7

Copyright © 2014 Pearson Canada Inc. 8

36. The first step in the selection process is

Copyright © 2014 Pearson Canada Inc. 9

39. Video assessments

40. Video assessment refers to

41. In an assessment centre

Copyright © 2014 Pearson Canada Inc. 10

43. Which of the following is correct with respect to behaviour-based interviewing?

44. With regard to drug testing, it is correct to say that

46. Which of the following is not part of orientation?

Copyright © 2014 Pearson Canada Inc. 11

49. Employee training and development programs are used to

Copyright © 2014 Pearson Canada Inc. 12

Answer : c.vestibule training.

53. Vestibule training is

Copyright © 2014 Pearson Canada Inc. 13

Copyright © 2014 Pearson Canada Inc. 14

Question ID: 08-1-60 Skill: Comprehension

62. Which of the following is correct regarding performance appraisals?

Copyright © 2014 Pearson Canada Inc. 15

Copyright © 2014 Pearson Canada Inc. 16

69. The most general form of a merit pay plan is

Copyright © 2014 Pearson Canada Inc. 17

74. George is paid 38 cents for every unit he produces. George is on a

78. Workforce management systems

Copyright © 2014 Pearson Canada Inc. 18

79. All of the following are considered incentive systems except

Copyright © 2014 Pearson Canada Inc. 19

Copyright © 2014 Pearson Canada Inc. 20

90. Which of the following is true with respect to mandated benefits?

Copyright © 2014 Pearson Canada Inc. 21

Copyright © 2014 Pearson Canada Inc. 22

Copyright © 2014 Pearson Canada Inc. 23

Question ID: 08-1-96 Skill: Analysis

Copyright © 2014 Pearson Canada Inc. 24

100. What is the objective of the Canadian Human Rights Act?

Copyright © 2014 Pearson Canada Inc. 25

Copyright © 2014 Pearson Canada Inc. 26

Question ID: 08-1-108 Skill: Comprehension

Copyright © 2014 Pearson Canada Inc. 27

115. A company is liable in cases of sexual harassment

Copyright © 2014 Pearson Canada Inc. 28

Question ID: 08-1-117 Skill: Knowledge