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

control-based compensation

the Rucker plan

recognition is a major factor in motivation

the Scanlon plan

2. Employee demotions usually involve.

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

a cut in pay, status, privilege, or opportunity 

an increase in pay and more responsibility

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

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

interruptions to get your point across

verbal communications only

summarizing what was said and what was agreed to

summarizing your key points

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

Wages set by arbitration councils

Low union dues and small union staffs

All agreements are of unlimited duration

Exclusive representation

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

Compensation equation

Salary cap performance level

Merit-pay increases

Inflation

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

Environmental

Individual 

Employee

Operations

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

Pay for Performance Act (2009)

American Recovery and Reinvestment Act (2009) 

Sarbanes–Oxley Act (2002)

Equal Pay Act (1963)

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

Social Security

COBRA (1985)

PPA (2006), 401(k)

ERISA (1974)

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

Is the change positive related to organizational goals?

Is the change due to training?

Was the cost of training within the budget?

Did change occur?

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

Sensitivity

Reliability

Practicality

Acceptability

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

Short-Term Severance Pay laws

Employer Cost Shifting laws

The Pension Protection Act (PPA) of 2006 

Short-Term Disability laws

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

internal 

primary

external

secondary

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

outplacement

an increase in the unemployment tax rate

severance pay

administrative processing

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

Adverse impact

Monetary damages and jury trials

Affirmative action

Race-norming

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

outside labor markets

entry-level employees

former employees

their subsidiaries

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

document appraisal ratings and reason for termination

have friends testify

present only the manager’s perspective

present only the employee’s perspective

17. Which is not a quality of Generation Y?

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

Short attention spans

The constant need for stimulation/entertainment

Inability to handle numerous projects

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

applicability of training

reinforcement of training

simulation of training

negative transfer of training

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

Increased productivity

Correcting specific problems of the past

Maximizing workforce commitment

Maximizing creativity

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

Procedural justice

Due process

Positive discipline

Progressive discipline

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

predict

assign

abandon

accept

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

negligent hiring

quid pro quo

hostile environment

loss of consortium

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

Nonfinancial rewards

General business strategies

Social responsibilities 

Internal pay objectives

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

mediation

grievance

lockout

bargaining impasse

25. Hard quotas

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

systematically favor women and minorities in hiring and promotion decisions

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

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

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

worth

cost

security

value

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

constructive discharge

lifestyle discrimination

invasion of privacy

defamation

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

Simulation

On-the-job training

Information presentation

Organizational development

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

summated rating scales

BARS

work planning and review

MBO

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

Placement

Recruiting

Performance management

Selection