Chapter 10 Human Resource Management and Labor Relations
1) What is another name given to human resource managers?
A) Financial managers
B) Personnel managers
C) Production managers
D) Accounting managers
E) Business development managers
Answer: B
Explanation: B) Human resource or personnel managers have a substantial impact on a firm's performance as a business.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
2) Which of the following is considered the starting point of effective human resource management?
A) External staffing
B) Recruitment
C) Planning
D) Financing
E) Compensation
Answer: C
Explanation: C) The starting point for effective human resource management is human resource planning which involves job analysis and forecasting the demand for and supply of labor.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
3) What is the purpose of a skills inventory?
A) To plan and identify people for transfer or promotion
B) To list key managerial positions
C) To describe the specifications for a job
D) To assess trends in previous human resource usage
E) To hire people from outside the organization
Answer: A
Explanation: A) Some organizations also use employee information systems.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
4) Which of the following outlines the duties of a job, its working conditions, and the tools, materials, and equipment used to perform it?
A) Job advertisement
B) Job specification
C) Job description
D) Job analysis
E) Job report
Answer: C
Explanation: C) A job description lists the duties and responsibilities of a job, whereas a job specification identifies the skills, abilities, and qualifications needed to perform the job.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
5) Which of the following describes the skills, abilities, and qualifications required for a job?
A) Staffing survey
B) Advertising write up
C) Job specification
D) Employee analysis
E) Replacement chart
Answer: C
Explanation: C) A job specification lists the attributes an employee needs in order to perform the job effectively.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
6) Which of the following contains information on each employee's education, skills, work experiences, and career aspirations?
A) Managerial grid
B) Employee information system
C) Job analysis
D) Job specification
E) Labor forecast
Answer: B
Explanation: B) This system can quickly locate every employee who is qualified to fill a position.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
7) Which of the following describes an organization's investment in attracting and motivating an effective workforce?
A) Human capital
B) Talent management
C) HR planning
D) Internal forecasting
E) Job descriptions
Answer: A
Explanation: A) Human capital reflects the organization's investment in attracting, retaining, and motivating an effective workforce.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
8) Where can a manager find information on the skills, abilities and other qualifications needed to perform a job successfully?
A) Talent management files
B) Job specification
C) Human capital systems
D) Job analysis
E) Job description
Answer: B
Explanation: B) The job specification lists the skills, abilities, and other credentials and qualifications needed to perform the job effectively and is developed based on a job analysis.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
9) What is the systematic study of jobs within an organization?
A) Talent management
B) Job specification
C) Human capital systems
D) Job analysis
E) Job description
Answer: D
Explanation: D) Job analysis is a systematic analysis of jobs within an organization; most firms have trained experts who handle these analyses. A job analysis results in job descriptions and job specifications.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
10) Which of the following indicates an understanding of the skills employees hold and how to best use those skills for the success of the organization?
A) Job analysis
B) Talent management
C) Skills inventory
D) Adverse impact
E) Human capital
Answer: B
Explanation: B) Talent management reflects the view that the people in an organization represent a portfolio of valuable talents that can be effectively managed and tapped in ways best targeted to organizational success.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
11) Job analysis is the systematic analysis of jobs within an organization resulting in a job description.
Answer: TRUE
Explanation: Job analysis results in job description and job specification.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
12) Human capital represents the set of organizational activities directed at attracting, developing, and maintaining an effective workforce.
Answer: FALSE
Explanation: Human capital reflects the organization's investment in attracting, retaining, and motivating an effective workforce.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
13) A systematic study of jobs within an organization is conducted through a job analysis.
Answer: TRUE
Explanation: Job analysis is a systematic analysis of jobs within an organization; most firms have trained experts who handle these analyses.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
14) Replacement charts can be used to forecast the external supply of candidates for senior managerial positions in the organization.
Answer: FALSE
Explanation: At higher levels of an organization, managers plan for specific people and positions. The technique most commonly used is the replacement chart, which lists each important managerial position, who occupies it, how long that person will probably stay in it before moving on, and who is now qualified or soon will be qualified to move into it.
Difficulty: Difficult
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
15) Talent management reflects the organization's investment in attracting and motivating an effective workforce.
Answer: FALSE
Explanation: Talent management reflects the view that the people in an organization represent a portfolio of valuable talents that can be effectively managed and tapped in ways best targeted to organizational success. Human capital reflects the organization's investment in attracting, retaining, and motivating an effective workforce.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
16) How do human resource managers use job analysis for human resource planning?
Answer: The basis for human resource planning is job analysis. Job analysis is the evaluation of the duties required by a particular job and the qualities required to perform it. HR planning involves job analysis and forecasting the supply and demand for labor.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
17) Discuss the strategic importance of human resources within an organization.
Answer: Human resources are critical for effective organizational functioning. HRM (or "personnel," as it is sometimes called) was once relegated to second-class status in many organizations, but its importance has grown dramatically in the last two decades. Its new importance stems from increased legal complexities, the recognition that HR are a valuable means for improving productivity, and the awareness of the costs associated with poor HRM. The effectiveness of their HR function has a substantial impact on the bottom-line performance of the firm. Poor HR planning can result in spurts of hiring followed by layoffs, which are costly in terms of unemployment compensation payments, training expenses, and morale. Consequently, the chief HR executive of most large businesses is a vice-president directly accountable to the CEO, and many firms are developing strategic HR plans and integrating those plans with other strategic planning activities.
Difficulty: Difficult
AACSB: Analytical thinking
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
18) Identify the difference between a job description and a job specification and explain how they each support the job analysis process.
Answer: Job analysis is a systematic analysis of jobs within an organization. Most firms have trained experts who handle these analyses. The job description lists the duties and responsibilities of a job; its working conditions; and the tools, materials, equipment, and information used to perform it. The job specification lists the skills, abilities, and other credentials and qualifications needed to perform the job effectively.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 10.1: Define human resource management, discuss its strategic significance, and explain how managers plan for their organization's human resource needs.
19) Which legal concept holds that both employer and employee have the mutual right to terminate an employment relationship any time, for any reason, and without advance notice to the other?
A) Quid pro quo
B) Affirmative action
C) Employment at will
D) Mutual consent
E) Equal employment opportunity
Answer: C
Explanation: C) Specifically, employment at will holds that an organization employs an individual at its own will and can, therefore, terminate that employee at any time, for any reason.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
20) Which of the following constitutes an illegal hiring practice?
A) Asking someone about their availability because the position requires a 50-hour work week
B) Establishing a diversity committee to help diverse employees connect with each other
C) Asking a candidate whether or not he attends church, because it is important that candidates are available to work on Saturdays and Sundays
D) Keeping track of how many males and females are in the organization
E) Requiring an applicant to specify gender on an application
Answer: C
Explanation: C) The Civil Rights Act of 1964 prohibits employers from screening a candidate for religious reasons.
Difficulty: Difficult
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
21) Under which legal concept is it legal for a manager to discharge all her employees without advance notice?
A) Quid pro quo
B) Affirmative action
C) Employment at will
D) Joint agreement
E) Arbitration
Answer: C
Explanation: C) This concept holds that both employer and employee have the mutual right to terminate an employment relationship anytime, for any reason.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
22) Which key piece of legislation made it illegal to discriminate in key areas of employment, including hiring, promotion, and compensation?
A) Equal Employment Opportunity Act of 1972
B) Civil Rights Act of 1991
C) Equal Pay Act of 1963
D) Title VII of the Civil Rights Act of 1964
E) Fair Labor Standards Act
Answer: D
Explanation: D) Title VII of the Civil Rights Act of 1964 forbids discrimination in all areas of the employment relationship, such as hiring, opportunities for advancement, compensation increases, lay-offs, and terminations against members of certain protected classes based on factors such as race, color, gender, religious beliefs, or national origin.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
23) Which of the following pieces of legislation made it easier to sue an employer for discrimination, but limited how much could be awarded in damages?
A) Equal Employment Opportunity Act of 1972
B) Civil Rights Act of 1991
C) Equal Pay Act of 1963
D) Title VII of the Civil Rights Act of 1964
E) Fair Labor Standards Act
Answer: B
Explanation: B) The Civil Rights Act of 1991 made it easier for employees to sue an organization for discrimination but limits punitive damage awards if they win.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
24) Which Act regulated the minimum wage and overtime payable to employees?
A) ERISA
B) Wagner Act
C) Fair Labor Standards Act
D) Taft-Hartley Act
E) Civil Rights Act of 1964
Answer: C
Explanation: C) Fair Labor Standards Act establishes minimum wage and mandated overtime pay for work in excess of 40 hours per week.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
25) Who is charged with enforcing the provisions outlined in Title VII?
A) Supreme Court
B) ERISA
C) OSHA
D) EEOC
E) NLRB
Answer: D
Explanation: D) The Equal Employment Opportunity Commission (EEOC) is charged with enforcing Title VII as well as several other employment-related laws.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
26) Which type of plan intentionally seeks out employees from underrepresented groups within the organization?
A) Civil Rights
B) Adverse impact
C) Employment at will
D) Patriot Act
E) Affirmative action
Answer: E
Explanation: E) Several executive orders require that employers holding government contracts engage in affirmative action, intentionally seeking and hiring employees from groups that are underrepresented in the organization.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
27) Which Act increased management rights when a union is attempting to organize a group within an organization?
A) Taft-Hartley
B) OSHA
C) Wagner Act
D) NLRA
E) ERISA
Answer: A
Explanation: A) Following a series of severe strikes in 1946, the Labor-Management Relations Act (also known as the Taft-Hartley Act) was passed in 1947 to limit union power. The law increases management's rights during an organizing campaign.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
28) How does the EEOC define sexual harassment in the workplace?
A) A single off-color joke that makes a worker uncomfortable
B) Any unwelcomed sexual advances
C) Persistent sexual advances
D) Unwelcome sexual advances made only by members of the opposite sex
E) Behavior that is sexual in nature only when it is instigated by a supervisor
Answer: B
Explanation: B) Sexual harassment is defined by the EEOC as unwelcome sexual advances in the work environment. If the conduct is indeed unwelcome and occurs with sufficient frequency to create an abusive work environment, the employer is responsible for changing the environment by warning, reprimanding, or firing the harasser.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
29) Which of the following allows either the employer or the employee to terminate an employment relationship for any reason and at any time?
A) Quid pro quo
B) The National Labor Relations Act
C) Employment at will
D) The Patriot Act
E) Taft- Hartley
Answer: C
Explanation: C) The concept of employment at will holds that both employer and employee have the mutual right to terminate an employment relationship at any time for any reason, with or without advance notice to the other. Over the last two decades terminated employees have challenged the employment-at-will doctrine by filing lawsuits against former employers on the grounds of wrongful discharge.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
30) What legal defense can an employer use when charged with using a pre-employment test that creates adverse impact?
A) Evidence that the test identifies those who are better able to do the job than others
B) Evidence that the employer sought out minorities
C) Evidence that the employer treated all employees the same
D) Evidence that the test included goals for underused groups
E) Evidence that the test identified how hiring goals will be met
Answer: A
Explanation: A) 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.
Difficulty: Difficult
AACSB: Analytical thinking
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
31) Which of the following is used to identify employment goals for underused groups, and how those goals will be achieved?
A) Civil rights
B) Affirmative action plans
C) Equal employment
D) Adverse impact
E) Supply and demand
Answer: B
Explanation: B) Affirmative action plans spell out employment goals for underused groups and how those goals will be met.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
32) When must an employer have a written affirmative action plan that details how underused groups will be pursued?
A) When the employer applies for a loan
B) When the employer wants to issue stock
C) When the employer holds government contracts
D) When the employer expands operations internationally
E) When the employer is privately held
Answer: C
Explanation: C) Several executive orders, however, require that employers holding government contracts engage in affirmative action, intentionally seeking and hiring employees from groups that are underrepresented in the organization. These organizations must have a written affirmative action plan that spells out employment goals for underused groups and how those goals will be met.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
33) Who is defined as an older worker under the Age Discrimination in Employment Act?
A) Those over 30 years of age
B) Those over 40 years of age
C) Those over 50 years of age
D) Those over 60 years of age
E) Those over 70 years of age
Answer: B
Explanation: B) The Age Discrimination in Employment Act, passed in 1967 and amended in 1978 and 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.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
34) The Age Discrimination in Employment Act requires passive nondiscrimination. How do employers practice passive nondiscrimination?
A) By seeking employees who are protected by the act
B) By seeking minorities who are protected by the act
C) By providing special treatment to women and minorities
D) By treating all who apply fairly
E) By increasing salaries for workers covered by the Act
Answer: D
Explanation: D) 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.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
35) Which of the following Acts helps to ensure the financial security of pension funds?
A) Employee Retirement Income Security Act
B) Wagner Act
C) Age Discrimination in Employment Act
D) Equal Pay Act
E) Fair Labor Standards Act
Answer: A
Explanation: A) Employers who provide a pension plan for their employees are regulated by the Employee Retirement Income Security Act (ERISA) of 1974. The purpose of this act is to help ensure the financial security of pension funds by regulating how they can be invested.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
36) What is the purpose of the Family and Medical Leave Act of 1993?
A) To extend the length of maternity leaves
B) To allow employees to take a leave of absence with pay
C) To allow employees to take a leave of absence for family or medical emergencies or when a child is born
D) To increase the percentage of payroll spent on health care for workers
E) To ensure financial security for all employees, regardless of circumstance
Answer: C
Explanation: C) The Family and Medical Leave Act (FMLA) of 1993 requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
37) Which of the following set up procedures for employees to vote on their desire for union representation?
A) Taft-Hartley Act
B) Labor-Management Relations Act
C) Occupational Safety and Health Act
D) Wagner Act
E) Patriot Act
Answer: D
Explanation: D) Union activities and management's behavior toward unions constitute another heavily regulated area. 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.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
38) Which Act established the National Labor Relations Board?
A) Taft-Hartley Act
B) Patriot Act
C) Labor-Management Relations Act
D) Occupational Safety and Health Act
E) National Labor Relations Act
Answer: E
Explanation: E) 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. The National Labor Relations Board (NLRB) was established by the Wagner Act to enforce its provisions.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
39) Employers may require an AIDS test as a condition of an offer of employment.
Answer: FALSE
Explanation: Organizations must treat AIDS like any other disease covered by law; no employer can legally require an AIDS or any other medical exam as a condition for making an offer of employment.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
40) The Occupational Safety and Health Act of 1970 is the single most comprehensive piece of legislation regarding workplace safety and health.
Answer: TRUE
Explanation: Further, OSHA holds that every employer has an obligation to furnish each employee with a place of employment that is free from hazards.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
41) In spite of employment at will, employees may not be fired for filing workers' compensation claims.
Answer: TRUE
Explanation: Recently, the courts have ruled that employees who file workers' compensation claims are protected by law.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
42) It is illegal to use any pre-employment test that creates adverse impact.
Answer: FALSE
Explanation: 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.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
43) ERISA was designed to regulate how pension funds are invested.
Answer: TRUE
Explanation: The purpose of this act is to help ensure the financial security of pension funds by regulating how they can be invested.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
44) The Family and Medical Leave Act of 1993 requires employers to provide up to 12 weeks of paid leave for family and medical emergencies or when a child is born.
Answer: FALSE
Explanation: The Act requires employers grant up to 12 weeks leave, but the leave is unpaid.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
45) The National Labor relations Board was established by the Wagner Act to enforce the provisions of the Act.
Answer: TRUE
Explanation: National Labor Relations Board (NLRB) was established by the Wagner Act to enforce its provisions.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
46) The Patriot Act gives Human Resource Managers access to previously confidential personal information on employees, such as health and financial records.
Answer: FALSE
Explanation: Government investigators have access to previously confidential personal and financial records, not an employer's HR department.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
47) Explain the role of equal employment opportunity and the Equal Employment Opportunity Commission.
Answer: The basic goal of equal employment opportunity regulation is to protect people from unfair or inappropriate discrimination in the workplace. Problems arise when distinctions among people are not job related. Courts have determined that illegal discriminatory actions by an organization or its managers cause members of a protected class to be unfairly differentiated from other members of the organization. Discrimination is illegal when based on race, color, religion, gender, age, national origin, disability status, and status as a military veteran. The Equal Employment Opportunity Commission (EEOC) is a division of the Department of Justice. The EEOC was created by Title VII of the 1964 Civil Rights Act and has specific responsibility for enforcing Title VII, the Equal Pay Act, and the Americans with Disabilities Act.
Difficulty: Difficult
AACSB: Analytical thinking
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
48) What are the two types of sexual harassment as defined by the courts?
Answer: In cases of quid pro quo harassment, the harasser offers to exchange something of value for sexual favors. In hostile work environment harassment, the workplace is tainted by off-color jokes, lewd comments, or other actions that make employees uncomfortable. Companies must deal with sexual harassment by warning, reprimanding, or firing the harasser.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
49) Describe the purpose of the Wagner Act, including how the Act is enforced.
Answer: Union activities and management's behavior toward unions constitute another heavily regulated area. 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. The National Labor Relations Board (NLRB) was established by the Wagner Act to enforce its provisions.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
50) Discuss the implications of the Patriot Act for Human Resource Management.
Answer: In response to the terrorist attacks of September 11, 2001, the U.S. government passed legislation that increases its powers to investigate and prosecute suspected terrorists. This legislation, known as the Patriot Act, has several key implications for HRM. For instance, certain restricted individuals (including ex-convicts and aliens from countries deemed by the State Department to have repeatedly provided support for acts of international terrorism) are ineligible to work with potentially dangerous biological agents. More controversial are sections granting government investigators access to previously confidential personal and financial records.
Difficulty: Moderate
AACSB: Analytical thinking
Objective: 10.2: Discuss the legal context of human resource management and identify contemporary legal issues.
51) Which selection technique is MOST likely to introduce bias?
A) Interview
B) Application forms
C) Aptitude tests
D) Drug testing
E) Polygraph tests
Answer: A
Explanation: A) The interview is sometimes a poor predictor of job success. Biases inherent in the way people perceive and judge others on first meeting affect subsequent evaluations.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.3: Identify the steps in staffing a company and discuss ways in which organizations recruit and select new employees.
52) Which of the following is conducted to attract qualified persons to apply for available jobs?
A) Realistic job previews
B) Recruiting
C) Selection
D) Hiring
E) Interviews
Answer: B
Explanation: B) Recruiting is the process of attracting qualified persons to apply for the jobs that are open.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.3: Identify the steps in staffing a company and discuss ways in which organizations recruit and select new employees.
53) What is the advantage of promoting from within when filling an opening within the organization?
A) Less need for a realistic job preview
B) Increased influx of high quality employees
C) Increased employee morale
D) Reduced turnover
E) Increased diversity of employees
Answer: C
Explanation: C) Promotion from within can help build morale and keep high-quality employees from leaving.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.3: Identify the steps in staffing a company and discuss ways in which organizations recruit and select new employees.
54) How can a firm help to ensure a new hire has a thorough understanding of a position before accepting the position?
A) Allow the candidate to job shadow for a day.
B) Use team interviews comprised of employees from that department.
C) Institute a higher than standard compensation system.
D) Use realistic job previews.
E) Use a different application form for each type of position available.
Answer: D
Explanation: D) One generally successful method for facilitating a good person-job fit is the so-called realistic job preview (RJP). As the term suggests, the RJP involves providing the applicant with a real picture of what performing the job that the organization is trying to fill would be like.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.3: Identify the steps in staffing a company and discuss ways in which organizations recruit and select new employees.
55) What is the most popular pre-employment test given?
A) Drug tests
B) Reference checks
C) Credit checks
D) Physical exams
E) Interviews
Answer: E
Explanation: E) Interviews are a popular selection device, although they are actually often a poor predictor of job success.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.3: Identify the steps in staffing a company and discuss ways in which organizations recruit and select new employees.
56) Human resource managers need to forecast the internal and external supply of employees.
Answer: TRUE
Explanation: Forecasting labor involves two tasks: forecasting the internal and external supply of labor.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 10.3: Identify the steps in staffing a company and discuss ways in which organizations recruit and select new employees.
57) When forecasting the internal supply of labor, planners must rely on information from sources such as government reports and figures supplied by colleges on the number of students in major fields.
Answer: FALSE
Explanation: These are sources used when forecasting the external supply of labor.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.3: Identify the steps in staffing a company and discuss ways in which organizations recruit and select new employees.
58) Companies often use internal recruitment to build morale and keep high-quality employees from leaving.
Answer: TRUE
Explanation: Internal recruiting means considering present employees as candidates for openings. Promotion from within can help build morale and keep high-quality employees from leaving.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.3: Identify the steps in staffing a company and discuss ways in which organizations recruit and select new employees.
59) When selecting someone to hire, the first step in selection is usually asking the candidate to take a test.
Answer: FALSE
Explanation: The first step is to fill out an application or send a résumé.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.3: Identify the steps in staffing a company and discuss ways in which organizations recruit and select new employees.
60) Distinguish between internal and external recruiting.
Answer: Internal recruiting means considering present employees as candidates for openings. External recruiting involves attracting people outside of the organization to apply for jobs. The goal of each process is to attract the most qualified persons to apply for available jobs.
Difficulty: Easy
AACSB: Application of knowledge
Objective: 10.3: Identify the steps in staffing a company and discuss ways in which organizations recruit and select new employees.
61) Describe how wages, salaries, incentives, and benefits programs help companies attract and keep skilled workers.
Answer: A major factor in retaining skilled workers is a compensation system, the total package that a firm offers employees in return for their labor. Wages are paid for time worked and a salary is paid for discharging the responsibilities of a job. Incentive programs are designed to motivate performance and include bonuses, merit salary systems, pay for performance, profit-sharing, gainsharing, and pay-for-knowledge plans. Benefit programs include workers' compensation insurance, retirement plans, and cafeteria benefit plans. Finding the right combination of compensation elements is always complicated by the need to make employees feel valued, while holding down company costs.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 10.3: Identify the steps in staffing a company and discuss ways in which organizations recruit and select new employees.
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