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Chapter 10 Managing Human Resource Systems
MULTICHOICE
1. Diana works for a hospital. Her day started with placing an ad for X-Ray technicians. She
then reviewed the progress of a training program she organized for volunteers in the
emergency department. Later in the day she will meet with the vice president of operations
to determine which administrative employee should be promoted to a new management
position that was created. What is Diana's role with the hospital?
(D) recruiting
Answer : (B)
Answer : (B)
Answer : (B)
4. For which of the following reasons is it legal to NOT hire a 45-kg job candidate as a dock
worker to move 30 kg boxes of produce?
Answer : (C)
5. Engineered Fabrics makes bladders for airplane gas tanks. In the event of a puncture, the
bladder will prevent the tank from exploding. The bladders must be defect-free. To check
the bladders, company employees must be able to crawl into a 46 cm (18-inch) diameter
hole in the bladder side and look for light leaks. Why is it legal to limit the weight and
height of individuals working in quality control at this company?
Answer : (C)
6. Pedro comes from a culture where people are shorter than most nations. Pedro was not
selected for a job by a security firm and feels the firm is against hiring people from his
culture. What is this an example of?
Answer : (A)
7. Leonard is putting a cover over the rotating belt of a sanding machine. This is to ensure
new workers in particular do not accidentally injure themselves when turning off the sander
since the switch is close to the belt. What role does Leonard fulfill for the company?
Answer : (B)
8. The CEO opened the nationwide sales-force meeting with a crude, sexually explicit joke
about Foreign Legion soldiers. What was this an example of?
Answer : (D)
Answer : (B)
10. Darlene worked for nearly 20 years in a casino sports bar. She was an outstanding
employee but was passed over for promotions because the manager of the bar wanted male
workers to have higher positions. What is this an example of?
(A) discrimination
Answer : (A)
11. The International Gay Rodeo Association (IGRA) began in 1976. By the end of the 1980s,
gay rodeos were being held in a number of Canadian and U.S. cities. But IGRA is not exempt
from concerns about discrimination. Which type of claim is IGRA avoiding by allowing
heterosexuals to participate in all IGRA events?
Answer : (B)
12. Under what legislation have the Human Rights Commissions in each province and
territory been established?
Answer : (B)
13. What are the two kinds of sexual harassment, from a legal perspective?
Answer : (A)
14. What is the term for the form of workplace harassment in which employment outcomes,
such as hiring, promotion, or simply keeping one's job, depend on whether an individual
submits to sexual harassment?
Answer : (B)
15. Timothy is suing the company he worked for. His manager criticized his work and made
unrealistic demands. It was clear the manager wanted Tim to leave the company. What did
Tim experience at this company?
Answer : (C)
16. Former female employees of a national real-estate brokerage firm claimed that they
were subjected to lewd remarks, unwanted groping, and sexual propositions by male
coworkers. According to their attorney, "The firm created a frat-house culture and then
failed to do anything about it." Which of the following would this suit claim the women were
victims of?
Answer : (B)
17. Which action should a company first take to ensure that sexual harassment laws are
followed and not violated?
(B) They should write a clear, understandable, strongly worded policy that is well publicized
within the company.
(C) They should make sure it is acting in compliance with not only federal laws but also with
local laws.
(D) They should respect the privacy of the accused and the accusers.
Answer : (A)
18. Karen has created a step-by-step routine to follow to complete her job properly. Karen
first observes each job function. She then records how each job affects other functions.
Karen then compares her information to industry statistics about that job. What role does
Karen fulfill for her company?
Answer : (A)
19. In which of the following would bona fide occupational qualifications most likely be
included?
Answer : (A)
20. What are the two most important results of a job analysis?
Answer : (B)
21. Which of the following helps companies meet the legal requirement that their human
resource decisions be job related?
Answer : (C)
22. When it recruits firefighters, the Calgary fire department identifies all the qualifications
needed to become a firefighter. What is this recruitment advertising actually an example of?
Answer : (A)
Answer : (D)
Answer : (C)
(B) reliable
(C) concrete
Answer : (D)
26. Laurie is hiring for a position in her department. She creates a notice that is included in
the company's internal circular and posted on the general bulletin board for all employees
to see. What did Laurie create?
Answer : (C)
(C) walk-ins
Answer : (B)
(A) advertising
Answer : (A)
(C) The company that is recruiting will receive applications only from qualified people.
(D) Internet recruiting targets potential applicants that are college or university educated.
Answer : (B)
(A) selection
(C) training
(D) HR planning
Answer : (D)
31. A study in the construction industry found that when equipment is stolen from building
sites, workers are the culprits 82 percent of the time. If background checks reduced
employee thievery over time and throughout the industry, what could be said about this
selection process?
(A) It is validated.
(D) It is corroborated.
Answer : (A)
(D) Potential employees typically create generic résumés that do not pertain to specific jobs
that are available.
Answer : (A)
33. Deirdre works in human resources. She is comparing past tests given to the operations
workers when they were hired and comparing the test results to their actual performance.
What activity is Deirdre engaged in?
(A) selection
(B) validation
(C) compensation
(D) recruiting
Answer : (B)
34. What are the first selection devices most job applicants encounter when they seek a job?
Answer : (D)
35. Which procedures are used to verify the truthfulness and accuracy of information that
applicants provide about themselves and to uncover negative, job-related information not
provided by applicants?
Answer : (B)
36. What legal problem may employers encounter in seeking, providing, or using
employment references as part of the selection process?
Answer : (A)
37. From which type of selection information would employers receive the greatest benefit if
their goal is to stop employee theft?
(A) résumés
Answer : (D)
38. Estimates of losses in the HAZMAT driver workforce could vary from 2 percent to 20
percent as a result of new federal regulations requiring that all drivers be fingerprinted and
each set of fingerprints checked to see whether the driver has a criminal record. This new
requirement will cause a worsening problem for the already over-extended workforce. What
does this requirement call for?
Answer : (B)
39. References Etc. is a five-employee firm that, in exchange for a fee of roughly $80 to $90,
will pose as a prospective employer, call a prior employer on an employee's behalf, and find
out what the former employer is saying. If the prior employer provides unsubstantiated
negative information, which of the following should the job applicant do?
(B) The applicant should not list references on the job application.
40. Which of the following questions is deemed acceptable-that is, legal-for employers to ask
applicants during the selection process?
Answer : (C)
41. An employer is interested in an applicant for a position in the company. The candidate
has an excellent résumé and interviewed well. However, the background check came back
neutral. Past employers have provided very basic information such as start date, position,
and end date. What should the employer do next?
Answer : (B)
42. All job applicants for a position in an interior design company were given 10 swatches of
fabrics of different colours and textures, 30 different paint chips, and 6 different floor
treatments and told to select the best fabric, paint, and floor treatment for an office that
would also be used as a guest room. What type of selection test did the design company
use?
(A) biotesting
Answer : (D)
Answer : (A)
44. Which type of test accurately predicts job performance in almost all kinds of jobs?
Answer : (B)
(D) biodata
Answer : (D)
46. According to the text, if an employer was to use only one type of selection test, what
would be the one to use?
47. Which of the following is a direct (rather than an indirect) measure of job applicants'
capabilities to do the job?
Answer : (D)
48. Which type of interview uses only standardized, job-related interview questions that are
prepared ahead of time and asked of all candidates?
(A) formalized
(B) structured
(C) semistructured
(D) informal
Answer : (B)
Answer : (C)
50. Which type of job interview might be used after a background question reveals the
applicant had spent three years working in Africa to convince parents to allow their children
to take polio vaccine?
(A) canned
(B) semistructured
(C) tangential
(D) creative
Answer : (B)
51. Which of the following activities provides opportunities for employees to develop the job-
specific skills, experience, and knowledge they need to do their jobs or improve their
performance?
(A) supervising
(B) directing
(C) training
(D) mentoring
Answer : (C)
52. Which type of interviewing typically leads to much more accurate hiring decisions-that
is, correctly predicting which job applicants will perform better and therefore should be
hired?
(A) structured
(B) unstructured
(C) scripted
(D) formalized
Answer : (A)
53. Which training method is most appropriate for imparting information or knowledge to
trainees?
Answer : (B)
54. Which training method is most appropriate when the objective of training is practising,
learning, or changing behaviours?
Answer : (C)
Answer : (D)
Answer : (C)
(A) Most employees and managers intensely dislike the performance appraisal process.
(B) Performance appraisals can be used as a basis for compensation, but not as a basis for
determining who needs further training.
(C) Since performance appraisal is only a marginally important human resource process, any
problems associated with it do not affect the organization overall.
(D) Legally, a disgruntled employee cannot sue an employer on the basis of a dissatisfactory
performance appraisal.
Answer : (A)
(D) revenues
Answer : (A)
59. Which of the following asks raters to rate the frequency with which workers perform
specific actions representative of the job dimensions that are critical to successful job
performance?
Answer : (A)
60. Which of the following is a common type of rating error that managers are prone to in
the performance appraisal process?
Answer : (D)
61. Which type of error did the manager commit when she rated all of her subordinates as
above-average in all performance areas?
Answer : (C)
Answer : (D)
63. In which performance appraisal process is feedback obtained from the boss,
subordinates, peers and coworkers, and the employees themselves?
Answer : (A)
Answer : (C)
(A) 360-degree feedback is most effective when used to train performance raters.
(B) 360-degree feedback provides feedback from peer workers only.
(C) With the 360-degree feedback approach, feedback comes from four sources.
(D) Employees do not provide feedback about their own efforts in the 360-degree feedback
approach.
Answer : (C)
66. Which of the following determines the worth of each job by establishing the market
value of the knowledge, skills, and requirements needed to perform it?
Answer : (B)
67. What term refers to both the financial and nonfinancial rewards organizations give
employees in exchange for their work?
(A) wages
(C) compensation
(D) salaries
Answer : (C)
68. Which of the following is an example of a pay variability decision used to motivate
employee performance?
(A) salary
(C) wage
Answer : (D)
69. What does the acronym ESOP stand for?
Answer : (B)
70. One reason items manufactured in Southeast Asia can be imported into Canada so
cheaply is that workers are paid a small amount of money for each item produced. Which
type of pay plan do manufacturers operating in Southeast Asia use?
(C) piecework
Answer : (C)
71. After 27 years of working for a high-end autobody shop, Joe decided to retire. What is
this an example of?
Answer : (A)
72. What should managers do to minimize the problems inherent in firing employees?
(A) Before firing employees, managers should give them a chance to improve.
(B) Managers should keep moving an unproductive employee to different positions until they
become productive.
(D) While written records are not necessary, managers should verbally report the reason for
the firing to the human resource department.
Answer : (A)
73. Sharron Grant-Burton was a marketing director for Covenant Care, an owner of skilled-
nursing and assisted-living facilities. During a discussion of the fairness of the company's
bonus structure with other marketing directors, Grant-Burton said she did not receive a
bonus because her executive director "did not believe in them." Several days later, Grant-
Burton was fired and told she had been terminated for several unspecified reasons,
including her comments about bonuses. What is this an example of?
(A) de-employment
Answer : (B)
(B) alert the remaining employees of the reality that they may lose their jobs soon as well
(C) create an outplacement program to help the affected employees find alternative work
Answer : (C)
75. Which of the following provides employment counselling services for employees faced
with downsizing?
Answer : (A)
76. Raymond was given several opportunities to improve his level of work before he was let
go by the company. What is this an example of?
(A) voluntary separation
Answer : (B)
77. Vanessa sells the most for a personal care products distributor. Vanessa is leaving to
joining a more established company that offers a wider range of products. What is this an
example of?
(A) de-employment
Answer : (B)
78. Following a challenging couple of years, many people who were employed in the oil and
gas sector in Canada are leaving the sector to start new businesses and try new
opportunities. This is likely to lead to staff shortages in the coming years. What does the
departure of the current oil and gas workers exemplify?
(A) de-employment
Answer : (B)
79. A company conducts a series of simulations and hires trained observers to evaluate
applicants to help determine the best candidate for a managerial position. What is this an
example of?
Answer : (C)
80. A company that listens to customer complaints and surveys employees and managers is
performing which step in the training process?
Answer : (B)
(B) identify who does (and doesn't) need training and evaluate training
(D) identify who does (and doesn't) need training and select the training methods
Answer : (D)
Answer : (B)
83. ERIPs have posed problems for some employers-such as the University of Waterloo,
which saw more than 300 faculty and staff leave. What are HR departments doing to combat
the problems?
Answer : (C)
Refer to Scenario 10-1. The need for creative skills in order to work at Amy's would have
been developed for franchisees by the company's HR department. What is the term for what
HR developed?
Answer : (C)
Answer : (D)
Refer to Scenario 10-1. Amy's is convinced that how applicants respond to its request to do
something creative with a brown paper bag accurately predicts how well job applicants will
perform if hired. In other words, what does it believe its pre-employment assessment
method to be?
(A) standardized
(B) valid
(C) efficient
(D) reliable
Answer : (B)
(A) performance
(B) biodata
(C) unstructured
(D) semistructured
Answer : (D)
Those mistakes are costly in two ways. First, if the order is wrong, late, or missing,
customers get angry and may not do business with Domino's again. According to a leading
consumer satisfaction index, Domino's ranks in the bottom half of fast-food companies.
Second, to right those wrongs, Domino's often says the pizza is free, and that hurts profits.
Turnover is costly in other ways. It costs time and money to find and hire new workers.
Domino's estimates that it costs $2,500 to replace each hourly worker who leaves and
$20,000 to replace a store manager. New workers take time and money to train-each new
worker spends the first 30 days in training, learning to take orders, handle the cash
register, make pizza dough, and ultimately, how to make a pizza in less than a minute.
Turnover costs Domino's several hundred million dollars a year, or 15 to 20 percent of
revenues! The question, of course, is what to do about it.
Robert Chabot owns a series of Domino's franchise stores. He says it's all about hiring
people who want to do good work. Consequently, Chabot relies heavily on employee
referrals to first identify good job applicants. Chabot assumes that if current employees are
satisfied with their jobs, they'll tell others, and those people will, in turn, want to work for
him. He also pays employees $25 for each person they recommend who gets hired and then
stays for at least 90 days.
Domino's has improved the screening and selecting of potential managers. Anyone who
wants to manage a Domino's store has to pass a 30-minute online test of their financial and
management skills. If you're not familiar with financial concepts such as "break-even" and
"cash flow," and you're not sure how to handle poorly performing employees (hint: yelling
and screaming isn't the preferred answer), then you're unlikely to pass the test.
Refer to Narrative 10-1. What does Robert Chabot use when he relies on employee referrals
to first identify good job applicants?
Answer : (D)
Those mistakes are costly in two ways. First, if the order is wrong, late, or missing,
customers get angry and may not do business with Domino's again. According to a leading
consumer satisfaction index, Domino's ranks in the bottom half of fast-food companies.
Second, to right those wrongs, Domino's often says the pizza is free, and that hurts profits.
Turnover is costly in other ways. It costs time and money to find and hire new workers.
Domino's estimates that it costs $2,500 to replace each hourly worker who leaves and
$20,000 to replace a store manager. New workers take time and money to train-each new
worker spends the first 30 days in training, learning to take orders, handle the cash
register, make pizza dough, and ultimately, how to make a pizza in less than a minute.
Turnover costs Domino's several hundred million dollars a year, or 15 to 20 percent of
revenues! The question, of course, is what to do about it.
Robert Chabot owns a series of Domino's franchise stores. He says it's all about hiring
people who want to do good work. Consequently, Chabot relies heavily on employee
referrals to first identify good job applicants. Chabot assumes that if current employees are
satisfied with their jobs, they'll tell others, and those people will, in turn, want to work for
him. He also pays employees $25 for each person they recommend who gets hired and then
stays for at least 90 days.
Domino's has improved the screening and selecting of potential managers. Anyone who
wants to manage a Domino's store has to pass a 30-minute online test of their financial and
management skills. If you're not familiar with financial concepts such as "break-even" and
"cash flow," and you're not sure how to handle poorly performing employees (hint: yelling
and screaming isn't the preferred answer), then you're unlikely to pass the test.
Refer to Narrative 10-1. Which selection method is used to determine that prospective
employees do not have a criminal record?
Answer : (D)
Those mistakes are costly in two ways. First, if the order is wrong, late, or missing,
customers get angry and may not do business with Domino's again. According to a leading
consumer satisfaction index, Domino's ranks in the bottom half of fast-food companies.
Second, to right those wrongs, Domino's often says the pizza is free, and that hurts profits.
Turnover is costly in other ways. It costs time and money to find and hire new workers.
Domino's estimates that it costs $2,500 to replace each hourly worker who leaves and
$20,000 to replace a store manager. New workers take time and money to train-each new
worker spends the first 30 days in training, learning to take orders, handle the cash
register, make pizza dough, and ultimately, how to make a pizza in less than a minute.
Turnover costs Domino's several hundred million dollars a year, or 15 to 20 percent of
revenues! The question, of course, is what to do about it.
Robert Chabot owns a series of Domino's franchise stores. He says it's all about hiring
people who want to do good work. Consequently, Chabot relies heavily on employee
referrals to first identify good job applicants. Chabot assumes that if current employees are
satisfied with their jobs, they'll tell others, and those people will, in turn, want to work for
him. He also pays employees $25 for each person they recommend who gets hired and then
stays for at least 90 days.
Domino's has improved the screening and selecting of potential managers. Anyone who
wants to manage a Domino's store has to pass a 30-minute online test of their financial and
management skills. If you're not familiar with financial concepts such as "break-even" and
"cash flow," and you're not sure how to handle poorly performing employees (hint: yelling
and screaming isn't the preferred answer), then you're unlikely to pass the test.
Refer to Narrative 10-1. What is Domino's using when it asks those who want to manage a
Domino's store to pass a 30-minute online test of their financial and management skills?
Answer : (B)
Those mistakes are costly in two ways. First, if the order is wrong, late, or missing,
customers get angry and may not do business with Domino's again. According to a leading
consumer satisfaction index, Domino's ranks in the bottom half of fast-food companies.
Second, to right those wrongs, Domino's often says the pizza is free, and that hurts profits.
Turnover is costly in other ways. It costs time and money to find and hire new workers.
Domino's estimates that it costs $2,500 to replace each hourly worker who leaves and
$20,000 to replace a store manager. New workers take time and money to train-each new
worker spends the first 30 days in training, learning to take orders, handle the cash
register, make pizza dough, and ultimately, how to make a pizza in less than a minute.
Turnover costs Domino's several hundred million dollars a year, or 15 to 20 percent of
revenues! The question, of course, is what to do about it.
Robert Chabot owns a series of Domino's franchise stores. He says it's all about hiring
people who want to do good work. Consequently, Chabot relies heavily on employee
referrals to first identify good job applicants. Chabot assumes that if current employees are
satisfied with their jobs, they'll tell others, and those people will, in turn, want to work for
him. He also pays employees $25 for each person they recommend who gets hired and then
stays for at least 90 days.
Domino's has improved the screening and selecting of potential managers. Anyone who
wants to manage a Domino's store has to pass a 30-minute online test of their financial and
management skills. If you're not familiar with financial concepts such as "break-even" and
"cash flow," and you're not sure how to handle poorly performing employees (hint: yelling
and screaming isn't the preferred answer), then you're unlikely to pass the test.
Refer to Narrative 10-1. One new pay method Domino's implemented to combat its problems
is a store-profitability bonus. On average, the store-profitability bonuses add 30 percent, or
about $10,000, to the $32,000 base pay for the managers of Domino's good-performing
stores. What are these bonuses a form of?
Answer : (D)
Refer to Narrative 10-2. How did Dr. McGeough identify the learning needs of small
business owners?
Refer to Narrative 10-2. Which of the following did Dr. McGeough do to determine that
entrepreneurs "aren't interested in education that's uninspiring or unaffordable"?
Answer : (C)
Refer to Narrative 10-2. Which form of training might Dr. McGeough have chosen due to her
firm's partnership with Community Futures?
(A) lectures
Refer to Narrative 10-2. What might be the most effective form of evaluating training as a
marketing tool for the GoForth Institute?
(A) behaviour
(B) learning
(C) results
(D) reactions
Answer : (C)
TRUEFALSE
96. Human resource management (HRM) is the process of finding, developing, and keeping
the right people to form a qualified workforce.
(A) True
(B) False
Answer : (A)
97. The only time that gender, age, religion, and so on can be used to make employment
decisions is when they are considered a bona fide occupational qualification (BFOQ).
(A) True
(B) False
Answer : (A)
98. The federal government has laws that often mirror those of the provinces, but human
rights, employment standards, labour relations, health and safety, and employment equity,
as well as other employment-related legislation, belongs to the 10 provinces and three
territories.
(A) True
(B) False
Answer : (A)
(A) True
(B) False
Answer : (A)
(A) True
(B) False
Answer : (B)
101. The hostile work environment form of sexual harassment occurs when employment
outcomes, such as hiring, promotion, or simply keeping one's job, depend on whether an
individual submits to being sexually harassed.
(A) True
(B) False
Answer : (B)
102. Full compliance with federal law is enough to ensure that an organization cannot incur
liability in sexual harassment complaints.
(A) True
(B) False
Answer : (B)
103. Job analysis is a purposeful and systematic process for collecting information on the
important work-related aspects of a job.
(A) True
(B) False
Answer : (A)
104. A job specification summarizes the basic tasks, duties, and responsibilities of a job, and
a job description summarizes the qualifications needed to successfully perform the job.
(A) True
(B) False
Answer : (B)
105. Job analyses, job descriptions, and job specifications help companies meet the legal
requirement that their human resource decisions be job related.
(A) True
(B) False
Answer : (A)
106. Validation is the process of determining how well a selection test or procedure predicts
future job performance.
(A) True
(B) False
Answer : (A)
107. Background checks can be used to verify the truthfulness and accuracy of information
that applicants provide about themselves.
(A) True
(B) False
Answer : (A)
(A) True
(B) False
Answer : (B)
109. If an HR manager were allowed to use just one selection test, cognitive ability tests
would be the one to use.
(A) True
(B) False
Answer : (A)
110. Since interviews are especially good at assessing applicants' interpersonal skills, they
work especially well together with cognitive ability tests, where the combination leads to
even better selection decisions than using either alone.
(A) True
(B) False
Answer : (A)
111. Training provides opportunities for employees to develop the job-specific skills,
experience, and knowledge they need to do their jobs or improve their performance.
(A) True
(B) False
Answer : (A)
112. To choose the best training method, a company should consider such factors as the
number of people to be trained, the cost of training, and the objectives of the training.
(A) True
(B) False
Answer : (A)
113. Behavioural observation scales (BOS) ask raters to rate the frequency with which
workers perform specific behaviours representative of the job dimensions that are critical to
successful job performance.
(A) True
(B) False
Answer : (A)
114. In setting their pay structures, companies use a procedure known as performance
assessment, which determines the worth of each job by determining the market value of the
knowledge, skills, and requirements needed to perform it.
(A) True
(B) False
Answer : (B)
115. Piecework, sales commission, profit sharing, employee stock ownership plans, and
stock options are common pay variability options.
(A) True
(B) False
Answer : (A)
116. Wrongful discharge is a legal doctrine that requires a manager to have the approval of
the human resource manager to terminate employees.
(A) True
(B) False
Answer : (B)
117. Once a company finishes the downsizing process, it should never need to downsize
again.
(A) True
(B) False
Answer : (B)
(A) True
(B) False
Answer : (B)
119. Dysfunctional turnover is the loss of high-performing employees due to unplanned
downsizing.
(A) True
(B) False
Answer : (B)
(A) True
(B) False
Answer : (B)
121. The Canadian Charter of Rights and Freedoms requires equal pay for equal work.
(A) True
(B) False
Answer : (B)
(A) True
(B) False
Answer : (B)
123. Workplace safety acts are administered by boards appointed by the provincial and
territorial governments.
(A) True
(B) False
Answer : (A)
124. Internal recruiting helps hire less costly, more reliable employees.
(A) True
(B) False
Answer : (A)
125. Internal recruiting relies on career paths, or planned sequences of advancement within
an organization.
(A) True
(B) False
Answer : (A)
126. Succession planning means organizations should help their employees become more
promotable-even if they might leave the organization as a result.
(A) True
(B) False
Answer : (A)
(A) True
(B) False
Answer : (B)
128. Freelance industry experts are often hired through sites such as Monster, Workopolis,
and LinkedIn.
(A) True
(B) False
Answer : (B)
129. Recruitment firms may be at risk due to the rise of Internet job sites.
(A) True
(B) False
Answer : (A)
130. Needs assessments identify employees' learning needs and should never be used to
determine which employees shouldn't attend training.
(A) True
(B) False
Answer : (B)
131. Needs assessments may identify employees' training needs on the basis of age and
gender.
(A) True
(B) False
Answer : (B)
132. Employees should be sent to training even if they don't need it in order to maximize
use of classroom seats in a training program.
(A) True
(B) False
Answer : (B)
133. Case studies are an appropriate training tool to learn job behaviours.
(A) True
(B) False
Answer : (B)
134. Training should be evaluated using measurements of trainees' behaviour changes and
learning.
(A) True
(B) False
Answer : (B)
135. Training can be evaluated using financial metrics such as increased revenue or lower
costs.
(A) True
(B) False
Answer : (A)
136. In 360-degree feedback, feedback comes from three sources: the boss, subordinates, as
well as peers and coworkers.
(A) True
(B) False
Answer : (B)
137. Managers should deliver administrative and developmental feedback at the same time.
(A) True
(B) False
Answer : (B)
(A) True
(B) False
Answer : (A)
139. Phased retirement is beneficial to companies, because it allows them to reduce salaries
and other costs.
(A) True
(B) False
Answer : (A)
ESSAY
140. Identify the employee characteristics that are protected by federal employment anti-
discrimination laws (i.e., the characteristics upon which employers are not legally allowed to
discriminate). Specify which human resource management decisions these laws affect.
Graders Info :
141. Briefly identify and describe the two kinds of sexual harassment that can be specified
from a legal perspective.
Graders Info :
From a legal perspective, the two kinds of sexual harassment are sexual harassment and
hostile work environment. Sexual harassment occurs when employment outcomes, such as
hiring, promotion, or simply keeping one's job, depend on whether an individual submits to
being sexually harassed. By contrast, a hostile work environment occurs when unwelcome
and demeaning sexually related behaviour creates an intimidating, hostile, and offensive
work environment.
142. Explain how job analysis is related to recruiting. Be sure to specify how it helps an
organization to meet a basic legal requirement for human resource management.
Graders Info :
Recruiting is the process of developing a pool of qualified job applicants. The first step in
recruiting is to conduct a job analysis to collect information about the important work-
related aspects of the job. The job analysis is then used to write a job description of basic
tasks, duties, and responsibilities and to write job specifications indicating the knowledge,
skills, and abilities needed to perform the job. Job analyses, descriptions, and specifications
help companies meet the legal requirement that their human resource decisions be job
related.
143. Differentiate between internal and external recruiting. Provide two examples of each.
Graders Info :
Recruiting is the process of finding qualified job applicants. Internal recruiting, or finding
qualified job applicants from inside the company, can be done through job posting and
career paths. External recruiting, or finding qualified job applicants from outside the
company, is done through advertising, employee referrals, walk-ins, outside organizations,
employment services, special events, and Internet job sites.
144. Explain how a human resource department defines selection. List the four common
categories of selection procedures used by companies. Specify which of these four generally
does the best job of predicting applicants' future job performance.
Graders Info :
Selection is the process of gathering information about job applicants to decide who should
be offered a job. The common selection procedures used by companies are (1) application
forms and résumés, (2) references and background checks, (3) selection tests, and (4)
interviews. Selection tests generally do the best job of predicting applicants' future job
performance.
145. Identify and describe the three kinds of job interviews. Which type works best as a
selection tool?
Graders Info :
146. Identify two common problems that occur during the performance appraisal process.
Recommend one approach for avoiding each of these problems.
Graders Info :
Some of the problems associated with appraisals can be avoided by (1) accurately
measuring job performance, and (2) effectively sharing performance feedback with
employees. Managers are prone to three kinds of rating errors: central tendency, halo, and
leniency error, which pose a challenge to the accurate measurement of job performance.
One way to minimize rating errors is to use better appraisal measures, such as objective
measures of performance or behavioural observation scales. Another method is to directly
train performance raters to minimize errors and more accurately rate the important
dimensions of job performance. One way to overcome the inherent difficulties in
performance appraisal feedback is to provide 360-degree feedback, in which feedback is
obtained from four sources: the boss, subordinates, peers and coworkers, and the
employees themselves. Feedback tends to be more credible if heard from several sources.
Traditional performance appraisal feedback sessions can be improved by separating
developmental and administrative feedback, by basing feedback discussions on employee
self-appraisals, and especially for managers, by having people discuss the feedback they
received with executive coaches or the people who provided it.
147. List and briefly define the three basic kinds of compensation decisions.
Graders Info :
There are three basic kinds of compensation decisions: pay level, pay variability, and pay
structure. Pay-level decisions are decisions about whether to pay workers at a level that is
below, above, or at current market wages. Pay variability decisions are decisions concerning
the extent to which employees' pay varies with individual and organizational performance.
Pay structure decisions are concerned with internal pay distributions, meaning the extent to
which people in the company receive different levels of pay.
148. Identify three things that managers can do to minimize the problems inherent in
terminating employees.
Graders Info :
Getting fired is a terrible thing, but many managers make it even worse by bungling the
firing process, needlessly provoking the people who were fired, and unintentionally inviting
lawsuits. This problem is potentially serious for employers since former employees win 68
percent of wrongful discharge cases. There are several things managers can do to minimize
the problems inherent in firing employees. First, in most firing situations, firing should not
be the first option. Instead, employees should be warned and given sufficient time to change
their behaviour. Second, employees should be fired only for a good reason. That is,
termination decisions should be made on the basis of job-related factors, such as violating
company rules or giving consistently poor performance. For legal protection, managers
should record the job-related reasons for the termination, document specific instances of
rule violations or continued poor performance, and keep notes and documents from the
counselling sessions held with employees. Finally, to reduce the chances of a wrongful
discharge suit, employees should always be fired in private, behind closed doors, and not in
the presence of others.
149. Explain the nature and intent of federal employment law. Identify the circumstances
under which protected characteristics such as gender, age, or religion can be used as the
basis for employment decisions as well as the circumstances under which a company may be
found guilty of illegal discrimination. Define the relationship between the federal, provincial,
and territory employment laws and governing bodies.
Graders Info :
Human resource management is subject to the following major federal employment laws:
Constitution Act (BNA) of 1867, Canadian Charter of Rights and Freedoms, Canadian
Human Rights Act, Canada Labour Code, employment equity and pay equity legislation, as
well as the Workers Compensation Act (Manitoba). It is important to understand that these
laws govern the entire human resource management process, including selection decisions
(i.e., hiring and promotion), as well as all training and development activities, performance
appraisals, terminations, and compensation decisions.
The general result of this body of law, which is still evolving through court decisions, is that
employers may not discriminate in employment decisions on the basis of gender, age,
religion, colour, national origin, race, or disability. The intent is to make these factors
irrelevant in employment decisions. Stated another way, employment decisions should be
based on factors that are "job related," "reasonably necessary," or a "business necessity" for
successful job performance. Section 15a of the Canadian Charter of Rights and Freedoms
prohibits discrimination based on race, creed, colour, religion, gender, and so on. The only
time that gender, age, religion, and so on can be used to make employment decisions is
when they are considered a bona fide occupational qualification (BFOQ).
The Human Rights Commissions in each province and territory have been established under
the Canadian Human Rights Act. They are responsible for enforcing the Canadian Human
Rights Act. The Canadian Human Rights Commission provides guidelines and support to the
various provincial agencies. The various Human Rights Commissions investigate and hold
hearings on issues relating to complaints under the various labour acts.
150. What is sexual harassment? Identify the two kinds of sexual harassment from a legal
perspective. Describe some frequent misunderstandings about sexual harassment, and
specify steps that companies can take to make sure that sexual harassment laws are
followed and not violated. Give one example of possible sexual harassment that you have
heard or read about, and explain which of the steps just described could have averted or
resolved that situation more effectively.
Graders Info :
Managers often wrongly assume (1) that the victim and harasser must be of the opposite sex
(they do not; according to the courts, sexual harassment can occur between people of the
same sex), (2) that sexual harassment can occur only between coworkers or between
supervisors and their employees (it can also include agents of employers, such as
consultants, or even non-employees; the key is whether the harassment occurs while
conducting company business), and (3) that only people who have themselves been harassed
can file complaints or lawsuits (in fact, especially in hostile work environments, anyone
affected by offensive conduct can file a complaint or lawsuit).
To make sure that sexual harassment laws are followed, companies should (1) respond
immediately when harassment is reported, (2) write a clear, understandable, strongly
worded sexual harassment policy that gives specific examples of what constitutes sexual
harassment and is widely publicized within the company, (3) establish clear reporting
procedures that ensure a quick response by impartial parties who will protect the privacy of
both the accused and accuser, and (4) be aware of and follow city and provincial or
territorial laws concerning sexual harassment in addition to federal law.
Student examples of potential harassment will typically cover the gamut from mild to
extreme. Better answers will specify one of the two legal definitions of harassment for the
situation, and will clearly articulate steps from the recommended list that could have been
taken to avert or resolve the situation more effectively.
151. What makes an effective selection process? What are the steps in the common selection
procedures used by companies? Which of these procedures would you recommend that a
company use to hire managers? Explain the reasons for your recommendations.
Graders Info :
Selection is the process of gathering information about job applicants to decide who should
be offered a job. The common selection procedures used by companies are (1) application
forms and résumés, (2) references and background checks, (3) selection tests, and (4)
interviews. Accurate selection procedures have three characteristics. First, they are valid
(i.e., they accurately predict the future job performance of the applicants who are hired).
Second, they are legally defendable (i.e., do not violate federal, provincial/territorial, or
local law). Third, they improve organizational performance (by hiring the individuals from
the applicant pool who are likely to perform best, and not hiring individuals who are likely
to perform poorly).
Application forms and résumés are the most common selection devices. Because many
application forms request illegal, non-job-related information and as many as one-third of
job applicants falsify information on résumés, these procedures can sometimes be of little
value when making hiring decisions. References and background checks can also be
problematic, given that previous employers are reluctant to provide such information for
fear of being sued for defamation. The lack of this information puts other employers at risk
of negligent hiring lawsuits. Selection tests generally do the best job of predicting
applicants' future job performance. In general, cognitive ability tests, work sample tests,
biographical data, and assessment centres are the most valid tests, followed by personality
tests and specific ability tests, which are still good predictors. Selection tests aren't perfect
predictors of job performance, but almost nothing predicts future job performance as well
as selection tests. The three kinds of job interviews are unstructured, structured, and semi-
structured interviews. Of these, structured interviews work best because they ensure that
all applicants are consistently asked the same situational, behavioural, background, or job-
knowledge questions.
For hiring managers, it would be appropriate to minimally recommend the use of (1)
application forms and résumés (for screening the applicant pool), (2) references and
background checks (for verifying credentials and previous performance, and weeding out
potential problem employees), and (3) structured interviews (to assess the interpersonal
skills that are crucial to a managerial job). Better answers will identify specific types of
selection tests that would be of additional value in screening out potentially poor
performers, and identifying potentially good performers. Such tests would include (4)
assessment centres (which are designed to select managers and have a 69 percent
probability of success in separating good and poor performers), (5) cognitive ability tests
(since people with strong cognitive or mental abilities are usually good at learning new
things, processing complex information, and solving problems and making decisions, all of
which are important in managerial work), and perhaps (6) a personality test for
conscientiousness (to assess the degree to which an individual is organized, hardworking,
responsible, persevering, thorough, and achievement oriented). Since the data from meta-
analyses clearly indicates that a combination of procedures tends to have stronger
predictive power than a single procedure, better student answers will identify an
appropriate set of multiple selection procedures within the context of any additional
assumptions necessary to support choices of procedures beyond those described above.
Graders Info :
Performance appraisal is the process of assessing how well employees are doing their jobs.
Since organizational performance (and thereby success) is ultimately dependent upon
employee performance, the performance appraisal process, which is designed to manage
and maintain employee performance at acceptable to high levels, is crucial to organizational
success. Performance appraisal is used for a variety of crucial purposes within
organizations. For example, performance appraisals are used as a basis for compensation,
promotion, and training decisions. In human resource planning, performance appraisals are
used for career planning and for making termination decisions. As a direct result of their
key role in so many organizational decisions, performance appraisals are central to many of
the lawsuits that employees (or former employees) file against employers. It is obvious then,
that, due to the crucial importance of performance appraisal in so many areas, companies
with poor performance appraisal systems face tremendous problems.
Performance appraisal poses a particular challenge to managers due to the typical reactions
of both managers and employees to the process. Most employees and managers intensely
dislike the performance appraisal process. Seven out of 10 employees are dissatisfied with
the performance appraisal process in their companies. Likewise, according to a survey, 90
percent of human resource managers are dissatisfied with the performance appraisal
systems used by their companies. Thus, the challenge for managers lies in having
responsibility for performing this difficult (but crucially important) task, which must be
performed appropriately in order to ensure organizational success, while both employees
and managers intensely dislike and dread engaging in this very task.
153. List and explain the three basic kinds of compensation decisions. Give two examples of
what is involved in making each kind of compensation decision. What is a job evaluation?
Which kind(s) of compensation decisions are job evaluations directly related to?
Graders Info :
There are three basic kinds of compensation decisions: pay level, pay variability, and pay
structure. Pay-level decisions are decisions about whether to pay workers at a level that is
below, above, or at current market wages. Some companies choose to pay above-average
wages to attract and keep employees. Above-market wages can attract a larger, more
qualified pool of job applicants, increase the rate of job acceptance, decrease the time it
takes to fill positions, and increase how long employees stay. Pay variability decisions are
decisions concerning the extent to which employees' pay varies with individual and
organizational performance. Linking pay to organizational performance is intended to
increase employee motivation, effort, and job performance. Piecework, sales commission,
profit sharing, employee stock ownership plans, and stock options are common pay
variability options. Pay structure decisions are concerned with internal pay distributions,
meaning the extent to which people in the company receive very different levels of pay. With
hierarchical pay structures, there are big differences from one pay level to another. By
contrast, with compressed pay structures, there are typically fewer pay levels and smaller
differences in pay between pay levels. Pay is less dispersed and more similar across jobs in
the company.
As stated in the text, companies use job evaluation to set their pay structures. Job evaluation
determines the worth of each job by determining the market value of the knowledge, skills,
and requirements needed to perform it. After conducting a job evaluation, most companies
try to pay the "going rate," meaning the current market wage. Thus, as explained in the text,
job evaluation is clearly related to pay-level decisions in this context. However, students
who are thinking critically will realize that job evaluation is also used for pay structure
decisions, which are concerned with internal pay distributions, or the extent to which people
in the company receive very different levels of pay. Depending upon where a job is
evaluated in comparison to all other jobs in the company, it will tend to be paid more or less
(in addition to the preceding decision regarding market value).