Fundamentals of Management 8th Edition Ricky Griffin Test Bank

Fundamentals of Management 8th
Edition Ricky Griffin Test Bank

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1. The set of activities directed at attracting, developing, and maintaining an effective workforce is called _____.
a. operations management
b. organization development
c. relationship management
d. enterprise feedback management
e. human resource management
ANSWER: e
RATIONALE: HRM is the set of organizational activities directed at attracting, developing, and maintaining
an effective workforce.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 226
LEARNING OBJECTIVES: MGMT.GRIF.16. 8-1 - LO: 8-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: HRM
TOPICS: The Environmental Context of HRM
KEYWORDS: Bloom's: Knowledge
NOTES: Digital Story: Engage
2. _____ reflects an organization’s investment in attracting, retaining, and motivating an effective workforce.
a. Financial capital
b. Human capital
c. Surplus capital
d. Enterprise capital
e. Production capital
ANSWER: b
RATIONALE: Human capital reflects an organization’s investment in attracting, retaining, and motivating
an effective workforce.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 226
KEYWORDS: Bloom’s: Knowledge
3. _____forbids discrimination on the basis of sex, race, color, religion, or national origin in all areas of the employment
relationship.
a. The Citizen Rights Act of 1957
b. Title IV of the Sarbanes Oxley Act
c. Title VII of the Civil Rights Act of 1964
d. Section 1107 of the Sarbanes Oxley Act
e. Section 401 of the Public Company Accounting Reform and Investor Protection Act
ANSWER: c
RATIONALE: Title VII of the Civil Rights Act of 1964 forbids discrimination on the basis of sex, race,
color, religion, or national origin in all areas of the employment relationship.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 226
4. A hospital refuses to employ male nurses. This illustrates _____.

a. confirmatory bias
b. affirmative action
c. a direct form of discrimination
d. equal employment opportunity
e. employment at will
ANSWER: c
RATIONALE: The intent of Title VII is to ensure that employment decisions are made on the basis of an
individual’s qualifications rather than on the basis of personal biases. The law has reduced
direct forms of discrimination (such as refusing to promote African Americans into
management, failing to hire men as flight attendants, or refusing to hire women as
construction workers) as well as indirect forms of discrimination (such as using employment
tests that whites pass at a higher rate than African Americans).
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 228
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
STATE STANDARDS: United States - AK - DISC: Legal Responsibilities
KEYWORDS: Bloom's: Application
NOTES: Digital Story: Perform
5. A taxi company has a policy that it will never hire women drivers. This scenario illustrates_____.
a. workforce diversity
b. source monitoring error
c. a direct form of discrimination
d. confirmatory bias
e. affirmative action
ANSWER: c
POINTS: 1
REFERENCES: p. 228
NATIONAL STANDARDS: United States - BUSPROG: Analytic
6. Which of the following is an example of a direct form of discrimination?

a. An organization intentionally seeking and hiring employees from groups that are underrepresented in
the organization
b. An organization refusing to promote employees belonging to an ethnic minority into management
c. An organization hiring professionals based on their experience and skills
d. An organization using employment tests that men pass at a higher rate than women
e. An organization using realistic job previews to recruit employees
ANSWER: b
POINTS: 1
REFERENCES: p. 228
KEYWORDS: Bloom's: Comprehension
NOTES: Digital Story: Connect
7. When an organization uses an employment test that the majority ethnic group is known to pass at a higher rate than
minority groups , it is exhibiting _____.
a. an indirect form of discrimination
b. equal employment opportunity
c. affirmative action
d. a direct form of discrimination
e. a realistic job preview
ANSWER: a
POINTS: 1
REFERENCES: p. 228
8. _____ is defined as intentionally seeking and hiring qualified or qualifiable employees from racial, sexual, and ethnic
groups that are underrepresented in an organization.
a. Affirmative action
b. Direct form of discrimination
c. Indirect form of discrimination
d. Adverse impact
e. Validation
ANSWER: a
RATIONALE: Affirmative action is defined as intentionally seeking and hiring qualified or qualifiable
employees from racial, sexual, and ethnic groups that are underrepresented in an
organization.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 228
9. A medical student belonging to a minority ethnic group was selected for an internship program at a hospital even
though he had lower grades and test scores than other applicants. This scenario illustrates:
a. confirmatory bias.
b. employment at will.
c. affirmative action.
d. source monitoring error.
e. equal employment opportunity.
ANSWER: c
organization.
POINTS: 1
REFERENCES: p. 228
10. The Age Discrimination in Employment Act forbids discrimination against workers above which of the following
ages?
a. 40
b. 45
c. 50
d. 55
e. 65
ANSWER: a
RATIONALE: The Age Discrimination in Employment Act, passed in 1967, amended in 1978, and amended
again in 1986, is an attempt to prevent organizations from discriminating against older
workers. In its current form, it outlaws discrimination against people older than 40 years.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 228
11. Employment requirements such as test scores and other qualifications are legally defined as having a(n) _____
on minorities and women when such individuals meet or pass the requirement at a rate less than 80 percent of the rate of
majority group members.
a. affirmative action
b. adverse impact
c. confirmatory action
d. lien
e. divergent impact
ANSWER: b
RATIONALE: Employment requirements such as test scores and other qualifications are legally defined as
having an adverse impact on minorities and women when such individuals meet or pass the
requirement at a rate less than 80 percent of the rate of majority group members.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 228
12. The Age Discrimination in Employment Act:
a. exclusively protects the elderly belonging to minority groups from discrimination.
b. sets a minimum wage for the elderly and requires overtime pay for work in excess of 40 hours per week.
c. protects individuals below the age of 25 years from discrimination.
d. requires affirmative action.
e. requires passive nondiscrimination.
ANSWER: e
RATIONALE: Both the Age Discrimination in Employment Act and Title VII require passive
nondiscrimination, or equal employment opportunity. Employers are not required to seek out
and hire minorities, but they must treat all who apply fairly.
POINTS: 1
REFERENCES: p. 228
13. The Civil Rights Act of 1991:

a. increases punitive damages in lawsuits.
b. makes it easier for employees to sue an organization for discrimination.
c. requires employers to provide up to 12 weeks of paid leave for family and medical emergencies.
d. limits union powers.
e. sets standards for safe working conditions.
ANSWER: b
RATIONALE: The Civil Rights Act of 1991 makes it easier for employees to sue an organization for
discrimination but limits punitive damage awards if they win.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 228
14. The Civil Rights Act of 1991:

a. limits union powers.
b. mandates affirmative action in all private business firms.
c. limits punitive damages in lawsuits.
d. allows passive discrimination.
e. sets standards for product packaging
ANSWER: c
RATIONALE: The Civil Rights Act of 1991 amends the original Civil Rights Act, making it easier to bring
discrimination lawsuits while also limiting punitive damages.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 228
15. The _____ sets up a procedure for employees to vote on whether to have a union.
a. National Labor Relations Act
b. Labor Management Relations Act
c. Taft–Hartley Act
d. Civil Rights Act of 1991
e. Fair Labor Standards Act
ANSWER: a
RATIONALE: The National Labor Relations Act (also known as the Wagner Act), passed in 1935, sets up a
procedure for employees to vote on whether to have a union. If they vote for a union,
management is required to bargain collectively with the union.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 229
16. Which of the following laws limits union power and specifies management rights during union-organizing campaign?
a. The National Labor Relations Act
b. The Employee Retirement Income Security Act of 1974
c. The Fair Labor Standards Act
d. The Labor Management Relations Act
e. The Occupational Safety and Health Act of 1970
ANSWER: d
RATIONALE: The Labor Management Relations Act limits union power and specifies management rights
during union-organizing campaign.It's also known as the Taft–Hartley Act.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 229
17. The Family and Medical Leave Act of 1993 requires employers to provide up to _____ for family and medical
emergencies.
a. six months of paid leave
b. 12 weeks of unpaid leave
c. 15 weeks of paid leave
d. one year of unpaid leave
e. one year of paid leave
ANSWER: b
RATIONALE: The Family and Medical Leave Act of 1993 requires employers to provide up to 12 weeks of
unpaid leave for family and medical emergencies.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 229
18. _____ also contains the National Emergency Strike provision, which allows the president of the United States to
prevent or end a strike that endangers national security.
a. The Civil Rights Act of 1991
b. Title IV of the Sarbanes Oxley Act
c. The Occupational Safety and Health Act of 1970
d. The Taft–Hartley Act
e. The Kennedy-Hawkins Act
ANSWER: d
RATIONALE: The Taft–Hartley Act also contains the National Emergency Strike provision, which allows
the president of the United States to prevent or end a strike that endangers national security.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 228
19. The Americans with Disabilities Act:
a. allows passive discrimination against individuals with disabilities.
b. requires employers to pay higher wages to employees with disabilities.
c. requires employers to provide reasonable accommodations for employees with disabilities.
d. requires employers to provide 24 weeks of unpaid leave to employees with disabilities.
e. requires employers to eliminate policies that support affirmative action.
ANSWER: c
RATIONALE: The Americans with Disabilities Act forbids discrimination on the basis of disabilities and
requires employers to provide reasonable accommodations for disabled employees.
POINTS: 1
REFERENCES: p. 228
20. The _____, passed in 1938 and amended frequently since then, sets a minimum wage and requires the payment of
overtime rates for work in excess of 40 hours per week.
a. National Labor Relations Act
b. Labor Management Relations Act
c. National Labor Relations Act
d. Occupational Safety and Health Act
e. Fair Labor Standards Act
ANSWER: e
RATIONALE: The Fair Labor Standards Act, sets a minimum wage and requires the payment of overtime
rates for work in excess of 40 hours per week.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 228
21. _____ is a systematized procedure for collecting and recording information about jobs within an organization.
a. Job analysis
b. Job evaluation
c. Job specialization
d. Job enrichment
e. Job enlargement
ANSWER: a
RATIONALE: Job analysis is a systematized procedure for collecting and recording information about jobs
within an organization.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 230
TOPICS: Attracting Human Resources
22. Which of the following is the first step in human resource planning?
a. Assessing external and internal trends
b. Predicting demand
c. Forecasting supply
d. Comparing future demand and internal supply
e. Planning a response to predicted shortfalls or overstaffing
ANSWER: a
RATIONALE: After managers fully understand the jobs to be performed within the organization, they can
start planning for the organization’s future human resource needs. The manager starts by
assessing trends in past human resource usage, future organizational plans, and general
economic trends.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 231
23. The _____ lists the duties of a job, the job’s working conditions, and the tools, materials, and equipment used to
perform it.
a. job specification
b. job description
c. replacement chart
d. statement of qualification
e. article of incorporation
ANSWER: b
RATIONALE: The job description lists the duties of a job, the job’s working conditions, and the tools,
materials, and equipment used to perform it.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 230
24. The _____ lists the skills, abilities, and other credentials needed to do a job.
a. article of incorporation
b. replacement chart
c. job description
d. job specification
e. statement of qualification
ANSWER: d
RATIONALE: The job specification lists the skills, abilities, and other credentials needed to do a job.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 230
25. A(n) _____ is usually computerized and contains information on each employee’s education, work experience, and
career aspirations.
a. bona fide occupational qualification
b. article of incorporation
c. skills inventory
d. statement of qualification
e. job description
ANSWER: c
RATIONALE: To facilitate both planning and identifying persons for current transfer or promotion, some
organization have an employee information system, or skills inventory, which is usually
computerized and contains information on each employee’s education, skills, work
experience, and career aspirations.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 232
26. A job description is most likely to provide information about:
a. the skills of an existing employee.
b. the tools, materials, and equipment used to perform the job.
c. the educational background of an applicant.
d. the personal profile of a supervisor.
e. the kind of skills that a job demands.
ANSWER: b
RATIONALE: The job description lists the duties of a job, the job’s working conditions, and the
tools,materials, and equipment used to perform it.
POINTS: 1
REFERENCES: p. 230
27. You are reading a document that says that a job applicant must have good writing skills, be a citizen of the United
States, and have a degree in management. You are reading a(n) _____.
b. job analysis
c. job description
d. replacement chart
e. job specification
ANSWER: e
RATIONALE: The job specification lists the skills, abilities, and other credentials needed to do the job.
POINTS: 1
REFERENCES: p. 230
28. A(n) _____ lists each important managerial position in an organization, who occupies it, how long he or she
will probably remain in the position, and who is or will be a qualified fill-in.
a. skills inventory
b. employee information system
c. enterprise resource planning system
d. replacement chart
e. Gantt chart
ANSWER: d
RATIONALE: A replacement chart lists each important managerial position in the organization, who
occupies it, how long he or she will probably remain in the position, and who is or will be a
qualified fill-in.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 232
29. The CEO of Redd Inc. needs to know the names of the line managers in the company who will soon be ready to take
up positions in middle management. The CEO can obtain this information from the _____.
a. demand forecast
b. job analysis
c. supply forecast
d. job evaluation
e. replacement chart
ANSWER: e
RATIONALE: The replacement chart lists each important managerial position, who occupies it, how long he
or she will probably stay in it before moving on, and who (by name) is now qualified or soon
will be qualified to move into the position.
POINTS: 1
REFERENCES: p. 232
30. Jennifer, the CEO of Phoenix Corp., is planning to build an internal design team for the company. She is looking for
employees within the company who have the expertise and an interest in designing. Jennifer can find this information in
the _____.
a. replacement chart
b. job specification
c. skills inventory
d. job description
e. article of incorporation
ANSWER: c
RATIONALE: An employee information system contains information on each employee’s education, skills,
work experience, and career aspirations and is usually computerized.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 232
31. Jason, a manager, is working on a new project that involves a lot of statistics. Jason is looking for employees with a
background in statistics. He can find this information in the _____ of his company.
b. job description
c. job specification
d. skills inventory
ANSWER: d
RATIONALE: A skills inventory contains information on each employee’s education, skills, work
experience, and career aspirations.
POINTS: 1
REFERENCES: p. 232
32. While matching human resource supply and demand, managers can handle predicted shortfalls by _____.
a. avoiding the employment of new employees
b. convincing individuals who are approaching retirement to stay on
c. not replacing people who have quit
d. laying off employees
e. reducing the benefits provided to employees
ANSWER: b
RATIONALE: If a shortfall is predicted, new employees can be hired, present employees can be retrained
and transferred into the understaffed area, individuals approaching retirement can be
convinced to stay on, or labor-saving or productivity-enhancing systems can be installed.
POINTS: 1
REFERENCES: p. 232
33. _____ is the process of attracting qualified persons to apply for jobs that are open.
a. Mentoring
b. Recruiting
c. Job analysis
d. Job evaluation
e. Validation
ANSWER: b
RATIONALE: Recruiting is the process of attracting qualified persons to apply for jobs that are open.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 232
34. Advertising, campus interviews, employment agencies, and union hiring halls are all _____ methods.
a. external recruiting
b. job analysis
c. validation
d. job evaluation
e. realistic job preview
ANSWER: a
RATIONALE: External recruiting methods include advertising, campus interviews, employment agencies or
executive search firms, union hiring halls, referrals by present employees, and hiring “walk-
ins” or “gate-hires.”
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 233
35. _____ is defined as determining the extent to which a selection device is really predictive of future job performance.
a. Realistic job preview
b. Internal recruitment
c. Job evaluation
d. Validation
e. Job analysis
ANSWER: d
RATIONALE: Validation is defined as determining the extent to which a selection device is really predictive
of future job performance.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 233
36. Nelson recently attended an interview where the HR manager showed him a video of an ordinary work day in the
organization and explained in detail the expectations of the job. The HR manager also explained about the criteria for
promotions in the company. Although some of the information did not appeal to Nelson, he was sure about what to expect
from the job and the company. The organization used the _____ method in the interview.
a. affirmative action
b. training and development
c. job enlargement
d. job specialization
e. realistic job preview
ANSWER: e
RATIONALE: A realistic job preview (RJP) provides the applicant with a real picture of what it would be
like to perform the job that the organization is trying to fill.
POINTS: 1
REFERENCES: p. 233
37. A job application blank should not contain questions about an applicant's_____.
a. previous work history
b. educational background
c. national origin
d. age
e. personal interests
ANSWER: c
RATIONALE: Application blanks should not contain questions about areas not related to the job, such as
gender, religion, or national origin.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 234
38. Teresa, a recruiter, needs to know basic information such as the name, educational background, and the work
experience of a candidate she will be interviewing. Teresa can find this information in the candidate’s _____.
a. skills inventory
b. job description
c. job specification
d. application blank
ANSWER: d
RATIONALE: Application blanks are an efficient method of gathering information about the applicant’s
previous work history, educational background, and other job-related demographic data.
Application blank data are generally used informally to decide whether a candidate merits
further evaluation, and interviewers use application blanks to familiarize themselves with
candidates before interviewing them.
POINTS: 1
REFERENCES: p. 234
39. The assessment center:

a. is used to select external candidates.
b. is a content-valid simulation of major parts of the managerial job.
c. is most likely to be biased against women and minority groups.
d. essentially involves conducting physical exams and drug tests on candidates.
e. essentially involves running credit checks on prospective employees.
ANSWER: b
RATIONALE: Assessment centers are a popular method used to select managers and are particularly good
for selecting current employees for promotion. The assessment center is a content-valid
simulation of major parts of the managerial job.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 234
40. A company has all of its candidates who are qualifiable for promotion attend a five-day evaluation session during
which they take a battery of tests, interviews, and perform in simulated work scenarios. The _____ method is used for the
selection process in this scenario.
a. assessment center
b. structured orientation process
c. job analysis
d. job deskilling
e. attrition
ANSWER: a
RATIONALE: Assessment centers are a popular method used to select managers and are particularly good
for selecting current employees for promotion. The assessment center is a content-valid
simulation of major parts of the managerial job.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 234
41. _____ refers to teaching managers and professionals the skills needed for both present and future jobs.
a. Development
b. Deskilling
c. Validation
d. Job evaluation
e. Performance appraisal
ANSWER: a
RATIONALE: Development refers to teaching managers and professionals the skills needed for both present
and future jobs.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 235
TOPICS: Developing Human Resources
42. In human resource management, _____ usually refers to teaching operational or technical employees how to do the
job for which they were hired.
a. job rotation
b. job specialization
c. development
d. training
e. deskilling
ANSWER: d
RATIONALE: A deficiency of skills and knowledge among employees can be remedied by training.
POINTS: 1
REFERENCES: p. 235
43. Sara is an efficient supervisor at a restaurant, which is part of a large national chain. She was recently sent to a two-
week educational course by her employer to help her get the skills she needs for promotion to a higher management post.
The human resource management concept illustrated in the scenario is _____.
a. job specialization
b. job rotation
c. development
d. training
e. recruitment
ANSWER: c
RATIONALE: Development refers to teaching managers and professionals the skills needed for both present
and future jobs.
POINTS: 1
REFERENCES: p. 235
44. Venus LLC has recently recruited a new batch of employees, and the HR manager intends to apprise company rules
to the employees. Which of the following training methods is most preferable in this scenario?
a. Electronic-media–based training
b. The lecture method
c. Role-playing
d. Case discussion groups
e. On-the-job training
ANSWER: b
RATIONALE: When the training content is factual material (such as company rules or explanations for how
to fill out forms), assigned reading, programmed learning, and lecture methods work well.
POINTS: 1
REFERENCES: p. 235
45. _____is an ideal method for training employees in group decision making.
a. Vestibule training
b. Programmed learning
c. Role-playing
d. Assigned reading
e. The lecture method
ANSWER: c
RATIONALE: When the content is interpersonal relations or group decision making firms must use a
method that allows interpersonal contact, such as role-playing or case discussion groups.
POINTS: 1
REFERENCES: p. 235
46. Ken is a newly hired police officer. He has been asked to spend a workday with a more experienced officer to
learn about paperwork, how to handle accident scenes, how to interact with people, and other duties that he will be
expected to perform. Which of the following concepts is illustrated in the scenario?
a. Performance appraisal
b. The assessment center method
c. Training manuals
d. On-the-job training
e. The lecture method
ANSWER: d
RATIONALE: When employees must learn a physical skill, methods allowing practice and the actual use of
tools and materials are needed, as in on-the-job training or vestibule training.
POINTS: 1
REFERENCES: p. 235
47. _____ is an effective method to use for training employees about ethical dilemmas and ethical decision making.
a. Job specialization
b. Case discussion groups
c. On-the-job training
d. The lecture method
e. Programmed instruction
ANSWER: b
RATIONALE: When the content is interpersonal relations or group decision making firms must use a
method that allows interpersonal contact, such as role-playing or case discussion groups.
POINTS: 1
REFERENCES: p. 235
48. _____ is used when employees must learn a physical skill, and this method also enables participants to focus on
safety, learning, and feedback rather than on productivity.
a. Job rotation
b. The lecture method
c. Case discussion groups
d. Vestibule training
e. Assigned reading
ANSWER: d
RATIONALE: When employees must learn a physical skill, methods allowing practice and the actual use of
tools and materials are needed, as in on-the-job training or vestibule training.
POINTS: 1
REFERENCES: p. 235
49. Which of the following is an advantage of Web-based training methods?

a. They can be easily updated and revised.
b. They facilitate interpersonal skills better than all other training methods.
c. They perfectly simulate real activities.
d. They effectively facilitate face-to-face interaction.
e. They can be easily used in place of vestibule training methods.
ANSWER: a
RATIONALE: Web-based and other electronic-media–based training are becoming very popular. Such
methods allow a mix of training content, are relatively easy to update and revise, let
participants use a variable schedule, and lower travel costs.
POINTS: 1
REFERENCES: p. 235
50. _____ is a formal assessment of how well employees are doing their jobs.
a. Job specialization
b. Job analysis
c. Performance appraisal
d. Employment branding
e. Validation
ANSWER: c
RATIONALE: Performance appraisal is a formal assessment of how well employees are doing their jobs.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 237
51. Which of the following is an example of an objective measure of performance?

a. Dollar volume of sales
b. Interpersonal agreeability
c. Ranking
d. Ratings
e. Commitment
ANSWER: a
RATIONALE: Objective measures of performance include actual output (that is, number of units produced),
scrap rate, dollar volume of sales, and number of claims processed.
POINTS: 1
REFERENCES: p. 237
52. Number of claims processed, total sales, and scrap rate are all examples of _____.
a. training methods
b. predictive validation methods
c. content validation methods
d. judgmental performance appraisal criteria
e. objective performance appraisal criteria
ANSWER: e
RATIONALE: Objective measures of performance include actual output (that is, number of units produced),
scrap rate, dollar volume of sales, and number of claims processed.
POINTS: 1
REFERENCES: p. 237
53. An example of judgmental performance measure is _____.

a. ranking
b. total sales
c. scrap rate
d. dollar volume of sales
e. number of units produced
ANSWER: a
RATIONALE: Judgmental methods, including ranking and rating techniques, are the most common ways to
measure performance.
POINTS: 1
REFERENCES: p. 237
54. _____ compares each employee with a fixed standard rather than comparison with other employees.
a. An objective method
b. Rating
c. Ranking
d. Job specialization
e. Job enlargement
ANSWER: b
RATIONALE: Rating differs from ranking in that it compares each employee with a fixed standard rather
than comparison with other employees.
POINTS: 1
REFERENCES: p. 237
55. The Behaviorally Anchored Rating Scale (BARS) is _____.

a. a method used for the validation of a selection device
b. an objective method of performance appraisal
c. a judgmental method of performance appraisal
d. a job training technique
e. a job analysis technique
ANSWER: c
RATIONALE: The Behaviorally Anchored Rating Scale (BARS) is an example of a judgemental method of
performance appraisal. It is a sophisticated and useful rating method in which supervisors
construct rating scales associated with behavioral anchors.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 238
56. A(n) _____ occurs when a manager allows the assessment of an employee on one dimension to spread to ratings of
that employee on other dimensions.
a. recency error
b. average error
c. validation error
d. source monitoring error
e. halo error
ANSWER: e
RATIONALE: Halo error is allowing the assessment of an employee on one dimension to “spread” to ratings
of that employee on other dimensions.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 239
57. Jan works as a salesperson. She generally achieves the expected targets but has also failed several times. For the
previous month, she performed better than all her team members and achieved a huge sales volume. Even though Jan has
not achieved her targets on several occasions during the past one year, her supervisor ranked her as number one. This is an
example of how a(n) _____ can influence a performance appraisal.
a. recency error
b. halo error
c. source monitoring error
d. severity error
e. average error
ANSWER: a
RATIONALE: Recency error is the tendency to base judgments on the subordinate’s most recent
performance because it is most easily recalled.
POINTS: 1
REFERENCES: p. 238
58. A performance appraisal system in which managers are evaluated by everyone around them—their boss, their peers,
and their subordinates is known as _____.
a. employment at will
b. 360-degree feedback
c. source monitoring
d. job evaluation
e. job specialization
ANSWER: b
RATIONALE: A performance appraisal system in which managers are evaluated by everyone around
them—their boss, their peers, and their subordinates is known as 360-degree feedback.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 239
59. _____ is the financial remuneration given by an organization to its employees in exchange for their work.
a. Progression
b. Compensation
c. Validation
d. An intangible benefit
e. Insurance
ANSWER: b
RATIONALE: Compensation is the financial remuneration given by an organization to its employees in
exchange for their work.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 240
TOPICS: Maintaining Human Resources
60. A(n) _____ represents a special compensation opportunity that is usually tied to performance.
a. wage
b. salary
c. incentive
d. benefit
e. intangible reward
ANSWER: c
RATIONALE: Incentives represent special compensation opportunities that are usually tied to performance.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 240
61. _____, sometimes called indirect compensation, are things of value other than compensation that an organization
provides to its workers.
a. Appraisals
b. Ratings
c. Rankings
d. Benefits
e. Scrap rates
ANSWER: d
RATIONALE: Benefits are things of value other than compensation that the organization provides to its
workers.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 243
62. At Omega Inc., a fixed amount of money is added to the salaries of employees if their performance exceeds a
predetermined level of expectation. A smaller portion of the amount is added if the employees’ performances just meet the
expected level. Omega is most likely to be motivating their employees with _____.
a. incentives
b. intangible benefits
c. rankings
d. progressions
e. appraisals
ANSWER: a
RATIONALE: Incentives represent special compensation opportunities that are usually tied to performance.
POINTS: 1
REFERENCES: p. 240
63. During a job interview, Sarah asked the HR manager if the company would provide her a family insurance or a
retirement plan. She was discussing the _____ that companies generally offer.
a. benefits
b. intangible benefits
c. incentives
d. wages
e. progressions
ANSWER: a
workers.
POINTS: 1
REFERENCES: p. 243
64. Gamma Inc. has a reputation for paying higher than the prevailing wages in its industry. This is an example of
a(n) _____ decision by its management.
a. wage-level
b. wage-structure
c. individual wage
d. wage-benefit package
e. benefit-level
ANSWER: a
RATIONALE: The wage-level decision is a management policy decision about whether a firm wants to pay
above, at, or below the going rate for labor in the industry or the geographic area.
POINTS: 1
REFERENCES: p. 242
65. The _____ is a management policy decision about whether a firm wants to pay above, at, or below the going rate for
labor in the industry or the geographic area.
a. wage-level decision
b. benefit-level decision
c. wage-structure decision
d. individual wage decision
e. individual benefit decision
ANSWER: a
RATIONALE: The wage-level decision is a management policy decision about whether the firm wants to
pay above, at, or below the going rate for labor in the industry or the geographic area.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 242
66. An attempt to assess the worth of each job relative to other jobs is known as _____.
a. job analysis
b. job evaluation
c. the wage-level decision
d. performance appraisal
e. benefit determination
ANSWER: b
RATIONALE: An attempt to assess the worth of each job relative to other jobs is known as job evaluation.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 242
67. When human resource managers determine how much each worker in a particular wage grade will be paid, they are
making a(n) _____ decision.
a. wage-level
b. wage-structure
c. individual wage
d. benefit-level
e. overall-benefit
ANSWER: c
RATIONALE: After wage-level and wage structure decisions are made, the individual wage decision must
be addressed. This decision concerns how much to pay each employee in a particular job.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 243
68. _____ are usually set up through a procedure called job evaluation—an attempt to assess the worth of each job relative
to other jobs.
a. Wage-level policies
b. Wage structures
c. Individual wage policies
d. Wage level decisions
e. Individual-benefit structures
ANSWER: b
RATIONALE: Wage structures are usually set up through a procedure called job evaluation—an attempt to
assess the worth of each job relative to other jobs. Jobs of equal value are often grouped into
wage grades for ease of administration.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 242
69. A policy at Synergy Corp. states that the middle managers get a pay that is three times the pay of supervisors and the
top managers get a pay that is six times the pay of first-line managers. The policy is regarding the _____ of Synergy.
a. wage-benefit decision
b. wage-level decision
c. individual-wage structure
d. benefit structure
e. wage structure
ANSWER: e
RATIONALE: Wage structures are usually set up through a procedure called job evaluation—an attempt to
assess the worth of each job relative to other jobs.
POINTS: 1
REFERENCES: p. 240
70. A cafeteria benefits plan:

a. allows employees to choose from a set of optional benefits.
b. provides performance-linked incentives to employees.
c. reimburses employees for their food and transportation expenses.
d. pays extra wages to employees for work they do during their lunch hour.
e. allows employees to take a certain number of unpaid leaves.
ANSWER: a
RATIONALE: In cafeteria benefit plans, basic coverage is provided for all employees but employees are
then allowed to choose which additional benefits they want (up to a cost limit based on
salary).
POINTS: 1
REFERENCES: p. 243
71. In the business world, the term _____ is generally used to refer to demographic differences among people—
differences in gender, age, ethnicity, and so forth.
a. homogeneity
b. synergy
c. diversity
d. divestiture
e. entropy
ANSWER: c
RATIONALE: Diversity exists in a community of people when its members differ from one another along
one or more important dimensions. In the business world, the term diversity is generally used
to refer to demographic differences among people—differences in gender, age, ethnicity, and
so forth.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 244
STATE STANDARDS: United States - AK - DISC: Group Dynamics
TOPICS: Managing Workforce Diversity
72. Organizations with a diverse workforce are most likely to _____ when compared to less diverse organizations.
a. have higher levels of productivity
b. have higher levels of turnover
c. have higher levels of absenteeism
d. foster fewer conflicts
e. have a lack of understanding of different market segments
ANSWER: a
RATIONALE: Organizations that manage diversity effectively often have higher levels of productivity and
lower levels of turnover and absenteeism.
POINTS: 1
REFERENCES: p. 244
73. Which of the following is an effective individual strategy for managing diversity?
a. Using micromanagement techniques for managing minority groups
b. Limiting interpersonal communication
c. Fostering tolerance
d. Treating everyone the same without regard for their fundamental human differences
e. Forming culturally and ethnically homogenous work teams
ANSWER: c
RATIONALE: Even though people may learn to understand others, and even though they may try to
empathize with others, the fact remains that they still may not accept or enjoy some aspect of
their behavior. So, tolerance is also required.
POINTS: 1
REFERENCES: p. 245
KEYWORDS: Bloom’s: Comprehension
74. An effective individual strategy for managing a diverse workforce is:

a. Encouraging interpersonal communication
b. Treating everyone the same without regard for their fundamental human differences
c. Creating ethnically homogenous work teams
d. Using micromanagement techniques
e. Limiting managerial communication
ANSWER: a
RATIONALE: Encouraging interpersonal communication is an effective individual strategy for managing a
diverse workforce effectively.
POINTS: 1
REFERENCES: p. 244
NATIONAL STANDARDS: United States - BUSPROG: Diversity
75. An organization with a diverse workforce:

a. is most likely to have a high turnover.
b. is most likely to have low productivity.
c. is least likely to have conflicts.
d. is least likely to require communication.
e. is most likely to have a competitive advantage.
ANSWER: e
RATIONALE: Most organizations are finding that diversity can be a source of competitive advantage in the
marketplace (in addition to the fact that hiring and promoting in such a way as to enhance
diversity are simply the right things to do).
POINTS: 1
REFERENCES: p. 244
76. Which of the following statements is true in the context of diversity in an organization?
a. Organizations with a diverse workforce are also better able to understand different market segments than are
less diverse organizations.
b. Organizations with diverse workforces are generally less creative and innovative than other organizations.
c. Organizations that place emphasis on diversity tend to have fewer conflicts and communication problems than
other organizations.
d. Organizations that place emphasis on diversity have fewer training requirements than organizations with non-
diverse workforces.
e. Organizations with diverse workforces generally have lower levels of productivity than other organizations.
ANSWER: a
RATIONALE: Organizations with a diverse workforce are also better able to understand different market
segments than are less diverse organizations.
POINTS: 1
REFERENCES: p. 244
77. Organizations with a diverse workforce:

a. have fewer training needs.
b. find it difficult to gain competitive advantages.
c. tend to have low productivity.
d. tend to have conflicts.
e. find it difficult to understand different market segments.
ANSWER: d
RATIONALE: Unfortunately, diversity in an organization can also create conflict. This conflict can arise for
a variety of reasons.
POINTS: 1
REFERENCES: p. 245
78. Which of the following statements is true in the context of effectively managing diverse workforces?
a. Tolerance is not required to effectively function in a diverse workforce.
b. A diverse workforce can be managed effectively by not acknowledging the differences among people.
c. Organizations can more effectively manage diversity by following practices and procedures that are based on
flexibility.
d. Any effort to treat everyone the same, without regard for their fundamental human differences, will reduce
problems.
e. Limiting communication among different ethnic groups is an effective way of handling conflicts in a diverse
organization.
ANSWER: c
RATIONALE: In general, the idea is that, because diversity and multiculturalism are characterized by
differences among people, organizations can more effectively manage that diversity by
following practices and procedures that are based on flexibility rather than on rigidity.
POINTS: 1
REFERENCES: p. 245
79. _____ is the process of dealing with employees who are represented by a union.
a. Labor relations
b. Public relations
c. Human relations
d. Operational management
e. Assembly-line management
ANSWER: a
RATIONALE: Labor relations is the process of dealing with employees who are represented by a union.
POINTS: 1
REFERENCES: p. 246
TOPICS: Managing Labor Relations
80. A person who works for an organization on something other than a permanent or fulltime basis is known as
a(n)_____.
a. SCORE volunteer
b. union worker
c. contingent worker
d. knowledge worker
e. intrapreneur
ANSWER: c
RATIONALE: A person who works for an organization on something other than a permanent or fulltime
basis is known as a contingent worker.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 250
81. Which of the following is a discussion process between a union and management that focuses on agreeing to a written
contract that will cover all relevant aspects of their relationship?
a. Job evaluation
b. Collective bargaining
c. The grievance procedure
d. Certification
e. Arbitration
ANSWER: b
RATIONALE: Collective bargaining is the process of agreeing on a satisfactory labor contract between
management and a union.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 248
82. The means by which a labor agreement is enforced is the _____.
a. grievance procedure
b. union rights clause
c. management rights clause
d. union security clause
e. strike/lockout procedure
ANSWER: a
RATIONALE: The grievance procedure is the means by which a labor contract contract is enforced.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 248
83. Executives who retire and then work as consultants are part of the _____ workforce.
a. temporary
b. emergent
c. task-oriented
d. job-specific
e. union
ANSWER: a
RATIONALE: A contingent or temporary worker is a person who works for an organization on something
other than a permanent or full-time basis.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 250
TOPICS: New Challenges in the Changing Workplace
84. Top managers at Phoenix Inc. are all computer engineers and are highly regarded by other companies. They are
frequently approached by executive search firms with information about openings at other companies. The managers
are examples of _____.
a. temporary workers
b. emergent workers
c. contingent employees
d. job-specific employees
e. knowledge workers
ANSWER: e
RATIONALE: Knowledge workers are workers whose contributions to an organization are based on what
they know.
POINTS: 1
REFERENCES: p. 249
85. A category of temporary workers is:

a. independent contractors.
b. shareholders.
c. intrapreneurs.
d. angel investors.
e. venture capitalists.
ANSWER: a
RATIONALE: Categories of contingent workers include independent contractors, on-call workers,
temporary employees (usually hired through outside agencies), and contract and leased
employees.
POINTS: 1
REFERENCES: p. 250
86. The _____ is charged with enforcing Title VII as well as several other employment-related laws.
ANSWER: Equal Employment Opportunity Commission
RATIONALE: The Equal Employment Opportunity Commission is charged with enforcing Title VII as well
as several other employment-related laws.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 228
87. A(n) _____ provides the applicant with a real picture of what it would be like to perform the job that the organization
is trying to fill.
ANSWER: realistic job preview
RATIONALE: A realistic job preview provides the applicant with a real picture of what it would be like to
perform the job that the organization is trying to fill.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 233
88. _____ is defined as determining the extent to which a selection device is really predictive of future job performance.
ANSWER: Validation
RATIONALE: Validation is defined as determining the extent to which a selection device is really predictive
of future job performance.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 233
89. When Hortensia wants to ensure that her auto dealership hires sales people from a variety of groups, she places help
wanted ads in the paper with the largest circulation, and the city's Spanish-language newspaper. By doing this, Hortensia
is complying with _____ requirements.
ANSWER: affirmative action
organization.
POINTS: 1
REFERENCES: p. 228
90. Deciding to pay your employees the industry average for a particular job is called the _____ decision.
ANSWER: wage-level
RATIONALE: The wage-level decision is a management policy decision about whether the firm wants to
pay above, at, or below the going rate for labor in the industry or the geographic area.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 242
91. School districts in Harry's city allocate as much money to teachers' indirect compensation, or _____ , as they do to
teacher salaries and wages.
ANSWER: benefits
workers.
POINTS: 1
REFERENCES: p. 243
92. _____ is the process of dealing with employees who are represented by a union.
ANSWER: Labor relations
RATIONALE: Labor relations is the process of dealing with employees who are represented by a union.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 246
93. In _____, basic coverage is provided for all employees but employees are then allowed to choose which additional
benefits they want.
ANSWER: cafeteria benefit plans
RATIONALE: In cafeteria benefit plans, basic coverage is provided for all employees but employees are
then allowed to choose which additional benefits they want.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 243
94. A _____ worker is a person who works for an organization on something other than a permanent or full-time basis.
ANSWER: contingent
RATIONALE: A contingent worker is a person who works for an organization on something other than a
permanent or full-time basis.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 250
95. _____ are employees whose contributions to an organization are based on what they know.
ANSWER: Knowledge workers
RATIONALE: Knowledge workers are workers whose contributions to an organization are based on what
they know.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 250
96. Discuss the contents of the Equal Employment Opportunity Title VII of the Civil Rights Act of 1964.
ANSWER: This law forbids discrimination in all areas of the employment relationship. The intent of
Title VII is to ensure that employment decisions are made on the basis of an individual’s
qualifications rather than on the basis of personal biases. The law has reduced direct forms of
discrimination (such as refusing to promote African Americans into management, failing to
hire men as flight attendants, or refusing to hire women as construction workers) as well as
indirect forms of discrimination (such as using employment tests that
whites pass at a higher rate than African Americans).
Employment requirements such as test scores and other qualifications are legally defined as
having an adverse impact on minorities and women when such individuals meet or pass the
requirement at a rate less than 80 percent of the rate of majority group members. Criteria that
have an adverse impact on protected groups can be used only when there is solid evidence
that they effectively identify individuals who are better
able than others to do the job. The Equal Employment Opportunity Commission is charged
with enforcing Title VII as well as several other employment-related laws.
POINTS: 1
REFERENCES: p. 228
97. Define recruiting. Discuss internal and external recruiting.

ANSWER: Recruiting is the process of attracting qualified persons to apply for jobs that are open.
Internal recruiting means considering present employees as candidates for openings. 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. Most businesses today routinely post job openings on
their internal communication network, or intranet.
External recruiting involves attracting persons outside the organization to apply for jobs.
External recruiting methods include advertising, campus interviews, employment agencies or
executive search firms, union hiring halls, referrals by present employees,
and hiring “walk-ins” or “gate-hires.” Increasingly, firms are using the Internet to post job
openings and to solicit applicants.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 232-233
98. Describe the types of errors that can occur in performance appraisal systems.
ANSWER: Errors or biases can occur in any kind of rating or ranking system. One common problem is
recency error—the tendency to base judgments on the subordinate’s most recent performance
because it is most easily recalled. Often a rating or ranking is intended to evaluate
performance over an entire time period, such as six months or a year, so the recency error
does introduce error into thejudgment. Other errors include overuse of one part of the scale—
being too lenient, being too severe, or giving everyone a rating of “average.” Halo error is
allowing the assessment of an employee on one dimension to “spread” to ratings of that
employee on other dimensions. For instance, if an employee is outstanding on quality of
output, a rater might tend to give him or her higher marks than deserved on other dimensions.
Errors can also occur because of race, sex, or age discrimination, intentionally or
unintentionally. The best way to offset these errors is to ensure that a valid rating system is
developed at the outset and then to train managers in how to use it.
POINTS: 1
REFERENCES: p. 238-239
Match the following numbered items with the most correct response letter.
A response may be used once, more than once, or not at all.
a. Employee Retirement Income Security Act of 1974 (ERISA) Equal Pay Act of 1963
b. Fair Labor Standards Act
c. Labor-Management Relations Act (Taft-Harley)
d. National Labor Relations Act (Wagner)
e. Equal Pay Act of 1963
DIFFICULTY: Easy
REFERENCES: p. 227
99. Spells out procedures by which employees can establish labor unions
ANSWER: d
POINTS: 1
100. Establishes minimum wage

ANSWER: b
POINTS: 1
101. Limits union power and specifies management rights during union-organizing campaign
ANSWER: c
POINTS: 1
102. Requires that men and women be paid the same amount for doing the same job
ANSWER: e
POINTS: 1
103. Regulates how organizations manage their pension funds

ANSWER: a
POINTS: 1
Match the following statements with the most accurate terms.
You may use a response once, more than once, or not at all.
a. Behaviorally Anchored Rating Scale
b. 360-degree feedback,
c. Performance appraisal
REFERENCES: p. 227
p. 242-243
p. 246-248
MGMT.GRIF.16. 8-4 - LO: 8-4
MGMT.GRIF.16. 8-6 - LO: 8-6
Managing Labor Relations
The Environmental Context of HRM
104. Managers are evaluated by everyone around them—their boss, their peers, and their subordinates.
ANSWER: b
POINTS: 1
105. A sophisticated and useful rating method.

ANSWER: a
POINTS: 1
106. A formal assessment of how well employees are doing their jobs
ANSWER: c
POINTS: 1

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Fundamentals of Management 8th Edition Ricky Griffin Test Bank

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Fundamentals of Management 8th

Edition Ricky Griffin Test Bank

4. A hospital refuses to employ male nurses. This illustrates _____.

6. Which of the following is an example of a direct form of discrimination?

13. The Civil Rights Act of 1991:

14. The Civil Rights Act of 1991:

39. The assessment center:

49. Which of the following is an advantage of Web-based training methods?

51. Which of the following is an example of an objective measure of performance?

53. An example of judgmental performance measure is _____.

55. The Behaviorally Anchored Rating Scale (BARS) is _____.

70. A cafeteria benefits plan:

74. An effective individual strategy for managing a diverse workforce is:

75. An organization with a diverse workforce:

77. Organizations with a diverse workforce:

85. A category of temporary workers is:

97. Define recruiting. Discuss internal and external recruiting.

100. Establishes minimum wage

103. Regulates how organizations manage their pension funds

105. A sophisticated and useful rating method.

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