Organizations must continually train their


1. Organizations must continually train their current employees because of:

a. the need to increase the rate of attrition.

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b. rapid technological innovation.

c. the lack of competition from businesses in low labor cost countries.

d. low involuntary turnover rates of U.S. employees.

2. The “emotional” component of intercultural competence is the person’s:

a. level of sensitivity to cultural issues.

b. ability to connect with foreigners on an emotional level.

c. ability to handle the emotional stress of an overseas assignment.

d. ability to take on the emotional characteristics of the culture to which he/she is assigned.

3. In the context of training, self-efficacy refers to:

a. a person’s desire to learn training content.

b. a trainer’s belief that the learners possess the basic skills required to learn new tasks.

c. the perceived ability of the instructor to transfer the knowledge to the student.

d. a person’s belief that he/she can successfully learn the training program content.

4. For the employer, the two major advantages of cross training employees are employee development and:

a. narrowed job jurisdictions.

b. increased employee productivity without pay raises or bonuses.

c. better union relations.

d. flexibility in assigning work.

5. Which of the following is a disadvantage of the on-the-job training (OJT)?

a. Incorrect information from the supervisor can be transferred to the trainees.

b. It is the least flexible of all the available modes of employee training.

c. It is more expensive than classroom training.

d. External firms are typically used for training purposes.

6. The first step in the succession planning process is to:

a. decide whether to “make” or to “buy” talent.

b. identify key employees and their anticipated retirement dates.

c. define the positions that are critical to the organization’s strategy.

d. assess the capabilities of current employees.

7. Long-term succession planning in an organization should go beyond just high-level executives and:

a. focus on high-turnover jobs in the organization.

b. include mid-level and lower-level managers and key nonmanagement employees.

c. involve every job in the organization’s core functions.

d. target jobs for which it is most difficult to find qualified external candidates.

8. Which of the following statements is true of job sequencing?

a. It is the primary cause of career plateaus.

b. It is the pattern where an individual steps off the career track or plateaus to accommodate the demands of raising children.

c. It allows engineering and technical professionals a chance to advance without moving into management.

d. It is a form of job rotation where employees move from one major organizational function to another.

9. What impact does development have on an individual’s career?

a. The employee is likely to acquire abilities to handle a variety of assignments that might not be required for his or her current position.

b. The employee’s career goals will be subordinated to the organization’s goals.

c. The individual’s marketability at other organizations will be reduced due to employer-specific specialization.

d. The employee’s ability to learn specific behaviors is likely to be compromised.

10. What is the most common reason managers fail after being promoted to management?

a.Lack of confidence

b.Poor time management

c.Poor teamwork with subordinates and peers

d.Inability to balance work and family demands

11. Which of the following is true of performance appraisal?

a.Performance management is a part of performance appraisal.

b.Performance appraisal is the process of determining how well employees do their jobs relative to a standard and communicating that information to them.

c.Performance appraisal is the same as performance management.

d.Performance appraisal refers to the entire series of activities designed to ensure that the organization gets the performance it needs from its employees.

12. Which of the following is an example of results-based information?



c.Customer satisfaction

d.Sales volume

13. Which of the following is typically a responsibility of managers in performance appraisals?

a.Reviewing completed appraisals for consistency

b.Tracking timely receipt of appraisals

c.Identifying development areas

d.Designing and maintain appraisal systems

14. _____ is especially useful when supervisors do not have the opportunity to observe each employee’s performance but other work group members do.

a.Outsider rating


c.Peer rating

d.Employees rating managers

15. The _____ method lists the individuals being rated from highest to lowest based on their performance levels and relative contributions.


b.critical incident


d.forced distribution

16. Which of the following is a tangible direct reward?

a.Base pay

b.Health care benefits

c.Paid time off

d.Challenging work

17. Which of the following is classified as an outcome in the equity theory?




d.Job security

18. Which of the following is typically the first step in the compensation administration process?

a.Job analysis

b.Job evaluation

c.Compensation philosophy

d.External focus

19. Most federal and state entities rely on the criteria for independent contractor status identified by the _____.

a.National Labor Relations Board

b.Internal Revenue Service

c.Department of Labor

d.U.S. Treasury Department

20. The _____ prohibits companies from using different wage scales for men and women performing substantially the same jobs.

a.Fair Employment Act

b.Employment Non-Discrimination Act

c.Civil Rights Act

d.Equal Pay Act

21. Variable pay is _____.

a.compensation that is tied to the employee’s performance

b.compensation that is tied to the employee’s seniority

c.compensation that is tied to the employee’s ethnicity

d.compensation that is tied to the employee’s qualification

22. Gainsharing is the system of _____.

a.treating all employees as equals irrespective of their productivity and the gains they bring

b.sharing with employees the gains in profits and productivity equally

c.rating employees on the basis of their productivity and the profits they bring

d.sharing with employees greater-than-expected gains in profits and productivity

23. Which of the following is the most accurate metric of organizational performance in variable pay plans?

a.Customer satisfaction

b.Accident rates

c.Revenue growth

d.Employee satisfaction

24. A compensation committee generally makes recommendations to the _____ on overall pay policies, salaries for top officers, supplemental compensation such as stock options and bonuses, and additional perquisites for executives.

a.labor union

b.board of directors

c.federal government

d.state government

25. Stock option plans give employees the right to purchase: unlimited number of shares of company stock at a specified exercise price for a limited period of time. unlimited number of shares of company stock at a specified exercise price for an unlimited period of time.

c.a fixed number of shares of company stock at a specified exercise price for a limited period of time.

d.a fixed number of shares of company stock at a specified exercise price for an unlimited period of time.

26. Employee benefits can be constructively viewed as a(n):

a.intangible plan that does not affect the costs borne by a company.

b.government-mandated instrument.

c.cultural necessity.

d.tool for competitive advantage.

27. According to the 1986 amendment to the Age Discrimination in Employment Act (ADEA):

a.most employees cannot be forced to retire at a specific age.

b.workers should contribute to the defined benefit plans.

c.equal treatment should be given to older workers in severance situations.

d.employers can be sued by employees for age discrimination.

28. Which of the following is a voluntary employee benefit that employers may provide in addition to legally required benefits?

a.Medical plans

b.Workers’ compensation

c.Education assistance

d.Social security

29. Self-employed workers have higher accident rates than those who work for others because they are:

a.usually not eligible for insurance policies.

b.more likely to work in dangerous industries such as farming.

c.not regulated by the OSHA like company workers.

d.often preoccupied with their work and tend to be careless.

30. Which of the following responsibilities related to health, safety, and security issues is typically handled by an operating manager in an organization?

a.Investigating accidents

b.Providing technical expertise on accident prevention

c.Assisting with disaster planning efforts

d.Designing employee identification systems

31. Which of the following guidelines has been cited by the U.S. Department of Health and Human Services for companies, when managing drug testing in the workplace?

a.The employees should be informed about a drug testing program 5 days before its implementation.

b.Lab results should be shared with other employees so that they would be aware of the consequences of using drugs.

c.Personnel decisions should be strictly based on the initial test results as they are considered the most accurate.

d.Drug- and alcohol-related problems should not be discussed without the presence of a witness.

32. An employer is guilty of _____ if an employee is terminated for reasons that are illegal or improper.

a.wrongful discharge

b.dysfunctional turnover

c.voluntary turnover

d.deconstructive discharge

33. The concept of distributive justice primarily stresses on:

a.perceived fairness of the processes used to make decisions about employees.

b.perceived fairness in the allocation of outcomes among employees.

c.perceived fairness about how a person interacts with others.

d.perceived fairness about avoiding open-door policies.

34. Employment-at-will is a common-law doctrine holding that:

a. an employee must provide a minimum of two weeks’ notice before quitting a job.

b. employees can be asked to leave a company only if they are willing to do so.

c. employees are free agents, but employers must have a just cause for terminating them.

d. an employer has the right to hire, fire, demote, or promote whomever it chooses.

35. Which of the following statements is true of whistle-blowing?

a. Whistle-blowers are less likely to lose their jobs in public employment than in private employment.

b. Whistle-blowing is legal only if the internal management of a company is alerted by the whistle-blower and not the public.

c. For private employers to receive federal stimulus funding, they need not have the same whistleblowing regulations as the federal government.

d. Whistle-blowers typically report wrongdoing in order to punish the organization for perceived personal mistreatment.