TBChap012 Final

Chapter 12
Human Resource Management
True / False Questions

1. Human resource management (HRM) includes all the activities managers engage in to attract and retain
employees and to ensure that they perform at a high level and contribute to the accomplishment of
organizational goals.

True False

2. A human resource management system is a part of the organizational architecture that managers develop to
use resources efficiently and effectively.

True False

3. By regularly evaluating employee performance, managers may fail to identify their strengths and
weaknesses.

True False

4. Labor relations encompass the steps that managers take to develop and maintain good working relationships
with the unions that may represent their employees’ interests.

True False

5. Human resource management is simple because organizations need not adhere to state or national laws.

True False

6. An advantage afforded by outsourcing is the increased control that managers gain over the quality of goods
and services.

True False

7. A disadvantage of outsourcing is increased cost and decreased flexibility.

True False

12-1
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8. Cost saving is the only reason why mangers engage in offshoring.

True False

9. Supply forecasts estimate the supply of qualified workers in the external labor market.

True False

10. Instead of hiring an accountant, J&K Consultants decide to contract with a local accounting firm for their
accounting needs. This is an example of outsourcing.

True False

11. An organization that selects students by conducting career fairs inside college campuses is using internal
recruitment.

True False

12. Lateral moves refer to job changes that entail significant changes in job responsibility and authority.

True False

13. An honest assessment of the advantages and disadvantages of a job and organization is called a job
appraisal.

True False

14. In an unstructured interview, the interviewer feels free to ask probing questions to discover what the
applicant is like and does not ask a fixed set of questions determined in advance.

True False

15. Ability tests assess the extent to which applicants possess the skills necessary for job performance, such as
verbal comprehension or numerical skills.

True False

16. In the context of selection tools, validity is the degree to which a tool or test measures the same thing each
time it is administered.

True False

17. In the context of selection tools, validity is the degree to which a test predicts performance on the tasks or
job in question.

True False

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18. Training focuses more on building the skills of organizational members to take on new responsibilities than
equipping them to perform the current tasks effectively.

True False

19. Promising employees are required to undergo various training programs that focus on the skills required to
become an effective manager in their respective fields in the future. This is called development.

True False

20. Development activities tend to take place at the lower levels of management of the organization, while
training activities tend to take place at the higher levels of the organization.

True False

21. In on-the-job training, learning occurs in classrooms, outside the work setting where employees acquire the
knowledge and skills required to perform their jobs.

True False

22. In simulations, learning occurs in the work setting as employees perform their job tasks.

True False

23. Performance appraisal is the evaluation of employees’ job performance and contributions to the
organization.

True False

24. The process by which managers share performance appraisal information with their subordinates is known
as performance feedback.

True False

25. Performance feedback demotivates the employees and affects their performance negatively.

True False

26. A trait appraisal involves assessing subordinates on personal characteristics that are relevant to job
performance, such as skills, abilities, or personality.

True False

27. Trait appraisals have the advantage over behavioral appraisals in giving employees clear information about
what they are doing right and wrong and how they can improve their performance.

True False

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28. Behavior appraisals are especially useful when what workers are like is more important than how workers
perform their jobs.

True False

29. A subjective appraisal is an appraisal that is based on perceptions of traits, behaviors, or results.

True False

30. In a 360-degree appraisal, a manager receives feedback based on evaluations by his or her superior alone.

True False

31. An informal appraisal is conducted at a set time during the year and is based on performance dimensions
and measures that were specified in advance.

True False

32. Benefits include employees’ base salaries, pay raises, and bonuses and are determined by a number of
factors such as characteristics of the organization and the job and levels of performance.

True False

33. Pay structure is the arrangement of jobs into categories reflecting their relative importance to the
organization and its goals, levels of skill required, and other characteristics.

True False

34. A high pay level is best suited for an organization that is pursuing a low-cost strategy.

True False

35. All benefits are optional; organizations are not legally obligated to provide any benefit.

True False

36. In cafeteria-style benefit plan, all employees are offered the same benefit package that is predetermined by
managers at the top.

True False

37. Labor relations are the activities managers engage in to ensure that they have effective working relationships
with the worker's unions that represent their employees’ interests.

True False

38. The National Labor Relations Act of 1935 prohibits workers from organizing into unions.

True False

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39. Collective bargaining refers to negotiation between labor unions and managers to resolve conflicts and
disputes about important issues.

True False

40. Using grievance procedures, workers who believe they are not being fairly treated are allowed to voice their
concerns and have their interests represented by the union.

True False

Multiple Choice Questions

41. _____ includes all the activities managers engage in to attract and retain employees and to ensure that they
perform at a high level and contribute to the accomplishment of organizational goals.

A. Product management
B. Human resource management
C. Total quality management
D. Distribution management
E. Customer relationship management

42. Which of the following components of the HRM system focuses on attracting and hiring employees who
have the abilities and experiences to help the organization achieve its goals?

A. Training and development

B. Labor relations
C. Recruitment and selection
D. Performance appraisal
E. Feedback

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43. Davidson Software Technologies believes in hiring only the best programmers in the industry. As a result, it
uses a comprehensive hiring process that involves testing and interviewing dozens of highly qualified
professionals before hiring. This is an example of which of the following components of the HRM system?


B. Labor relations
E. Performance feedback

44. Managers at Wayfowler Inc. ensure that new recruits receive on-the-job coaching by experienced employees
who serve as mentors and advisers to them. This is an example of which of the following components of the
HRM system?


B. Recruitment and selection
C. Labor relations
E. Feedback

45. Which of the following components of the HRM system focuses on ensuring employees learn and build the
skills and abilities needed to perform their jobs effectively both in the present as well as the future?

A. Recruitment and selection

B. Labor relations
C. Performance appraisal
D. Performance feedback
E. Training and development

46. Which of the following components of the HRM system serves a developmental purpose by providing
employees valuable information about their strengths and weaknesses?


B. Labor relations
C. Performance appraisal and feedback
D. Pay and benefits

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47. The _____ component of human resource management encompasses the steps that managers take to develop
and maintain good working association with the worker's unions that may represent their employees’
interests.

A. recruitment and selection

B. labor relations
C. performance appraisal and feedback
D. pay and benefits
E. training and development

48. Which of the following laws requires that managers ensure that employees are protected from workplace
hazards?

A. Occupational Safety and Health Act

B. Civil Rights Act
C. Family and Medical Leave Act
D. National Labor Relations Act
E. Taft–Hartley Act

49. The _____ restricts mandatory retirement and especially benefits older employees.

A. Equal Pay Act

B. Civil Rights Act
C. Age Discrimination in Employment Act
D. Americans with Disabilities Act
E. Family and Medical Leave Act

50. An employee needs time off from work to care for a family member who is ailing from a terminal illness.
Which of the following laws mandates that she be allowed to do this?


B. Civil Rights Act
E. COBRA Act

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51. _____ includes all the activities managers engage in to develop a pool of qualified candidates for open
positions.

A. Labor relation
B. Subjective appraisal
C. Feedback
D. Recruitment
E. Job enlargement

52. _____ refers to the process by which managers decide the relative qualifications of job applicants and their
potential for performing well in a particular job.

A. Training
B. Selection
C. Development
E. Feedback

53. At the beginning of a fiscal year, Bob undertakes various activities to make demand and supply forecasts.
Bob does these activities as a part of _____.

A. human resource accounting

B. human resource development
C. human resource planning
D. training and development
E. job analyses

54. When managers estimate the qualifications and numbers of employees an organization will need given its
goals and strategies, they are engaging in _____.

A. supply forecasting
B. insourcing
C. training and development
D. demand forecasting
E. outsourcing

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55. As a part of its human resource planning process, KRQ Consulting estimates the qualifications of all current
employees as well as the qualifications of the available workers in the external job market. KRQ Consulting
is engaging in_____.

A. management accounting
B. supply forecasting
C. insourcing
D. offshoring
E. simulations

56. Instead of hiring an accountant, an organization decides to contract with a local accounting firm for its tax
accounting needs. The process is known as _____.

A. lateral recruitment
B. external recruitment
C. outsourcing
D. internal recruitment
E. offshoring

57. The process of identifying the tasks, duties, and responsibilities that make up a job and the knowledge,
skills, and abilities needed to perform the job is collectively known as _____.

A. a job evaluation
B. a job application
C. a job definition
D. a job appraisal
E. a job analysis

58. A(n) _____ details the knowledge, skills, and abilities needed to perform the job.

A. job description
B. subjective appraisal
C. Position Analysis Questionnaire (PAQ)
D. job specification
E. objective appraisal

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59. The tasks, duties, and responsibilities that make up a job are known as the _____.

A. job description
B. job evaluation
C. statement of goals
E. performance feedback

60. Recruiting processes conducted by an organization to find people outside the organization who have not
worked for the organization previously is known as _____.

A. internal recruiting
B. lateral recruiting
C. external recruiting
D. transferring
E. promoting

61. _____ refer(s) to job changes within an organization that entail no major changes in responsibility or
authority levels.

A. Promotion
B. Lateral moves
C. Job hunting
D. External recruitment
E. Job hopping

62. Which of the following is true of internal recruitment?

A. The cost for internal recruitment is higher than that of external recruitment.
B. External applicants are more familiar with the organization than internal applicants.
C. Internal recruitment consumes relatively less time than external recruitment.
D. Managers have a wider pool of candidates to select from if they recruit internally than externally.
E. Managers rely more on internal applicants to bring fresh ideas to the organization than external
applicants.

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63. Joe always ensures that potential job applicants are aware of both the advantages as well as the
disadvantages associated with the position they are applying for. Joe's assessment of the position is
indicative of :

A. equal employment opportunity compliance.

B. a 360-degree appraisal.
C. a focus strategy.
D. a realistic job preview.
E. a low-cost strategy.

64. Managers determine the potential of job applicants in performing particular jobs by evaluating their
qualifications and previous job experience. This process is called _____.

A. interviewing
B. selection
C. 360-degree appraisal
D. validating
E. reference-checking

65. An organization requires all job applicants to fill out applications with details such as their name, age,
educational qualifications, and previous work experience. This organization is focusing on which aspect of
the selection process?

A. Interview process
B. Paper-and-pencil test
C. Personality assessment
D. Background information
E. Reference-checking

66. Tim's method of interviewing involves asking applicants the same standard set of questions. What type of
interview does Tim conduct?

A. Unstructured interview
B. Situational interview
C. Customized interview
D. Structured interview
E. Virtual interview

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67. Gathering background information, performance tests, physical ability tests, and references are all examples
of _____.

A. selection tools
B. performance appraisal tools
C. subjective appraisal tools
D. quality assurance tools
E. objective appraisal tools

68. _____ questions often present interviewees with a scenario they are likely to encounter on the job and ask
them to indicate how they would handle it.

C. Traditional interview
D. Conventional interview
E. Informal interview

69. As part of the selection process, Mark was required to take a test to determine if he had the necessary skills
to perform the jobs successfully. What type of test would Mark most likely be required to take?

A. Behavioral test
B. Personality test
C. Trait test
D. Morale test
E. Ability test

70. Tests that measure the individual characteristics of job applicants that are relevant to successful performance
on the job are known as _____.

A. ability tests
B. physical tests
C. IQ tests
D. personality tests
E. performance tests

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71. The routine selection process for becoming a law enforcement officer includes tests that measure an
applicant's ability to perform certain job-specific tasks such as running stairs, dragging a weight, or climbing
a wall. This is an example of a(n) _____.

A. physical ability test

B. personality test
C. trait test
D. behavioral test
E. IQ test

72. The selection process for a school teacher's job requires the applicant to keep a class of thirty students
engaged in a classroom activity for an hour. The candidate is evaluated by the interviewers during this
period and the activity plays a vital role in the selection process. This is an example of which of the
following types of tests?

A. Physical ability test

B. Personality test
C. Ability test
D. Paper-and-pencil test
E. Performance test

73. A job applicant is interviewed multiple times by different interviewers. In each case, it was found that the
interviewers drew very similar conclusions about the applicant. This indicates the interview process has high
_____.

A. validity
B. reliability
C. flexibilit
y
D. affability
E. complexity

74. A manager attempting to select a test for a job applicant that will most accurately predict the applicant's
performance on the job is primarily concerned with the _____ of the test.

A. validity
B. predictability
C. reliability
D. compatibility
E. consistency

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75. Before creating training and development programs, managers should perform a _____ to determine which
employees require training or development and what type of skills or knowledge they ought to acquire.

A. job analysis
B. feedback session
C. realistic job preview
D. needs assessment
E. subjective appraisal

76. _____ focuses primarily on teaching organizational members how to perform their current jobs and helping
them acquire the knowledge and skills needed to be effective performers.

A. Performance appraisal
B. Training
C. Development
D. Objective appraisal
E. Worker relations

77. Which of the following focuses primarily on equipping organizational members to take on new
responsibilities and challenges?

A. Training
B. Evaluation
C. Appraisal
D. Job analysis
E. Development

78. Which of the following is specific only to employee development, and not training?

A. Simulation
B. Classroom instruction
C. On-the-job training
D. Formal education
E. Role playing

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79. Due to the complexity and severe consequences of mistakes, pilots are required to undergo training in an
artificial setting that closely mimics actual flying conditions. This type of training is called _____.

A. simulation
B. apprenticeship
C. on-the-job training
D. formal education
E. assistantship

80. Newly-hired trucking employees of a courier delivery service ride with experienced drivers during
deliveries to familiarize themselves with routes, timings, and driving conditions. This method of imparting
training is an example of _____.

A. simulations
B. classroom instruction
D. formal education
E. role playing

81. To develop executives who will have an understanding of, and expertise in, a variety of functions, products
and services, and markets, managers make sure that executives with high potential have different job
proficiencies, some in line positions and some in staff positions. This is employee development through
_____.

A. varied work experiences

B. formal education
D. role-playing
E. simulation

82. In order to develop employees who can take on new responsibilities and more challenging positions, an
organization provides a tuition reimbursement program to its employees. In this case, the organization is
aiming to develop its employees through _____.

A. mentoring
B. training
C. formal education
D. varied work experiences
E. simulation

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83. _____ refers to a manager's evaluation of a subordinate's job performance and her contributions to the
organization.

A. Monitoring
B. Invigilating
C. Validating
D. Performance training
E. Performance appraisal

84. _____ is the process by which a manager shares performance appraisal information with a subordinate and
develops a plan for the future development of that subordinate.

A. Training
B. Selection
C. Performance feedback
D. Recruitment
E. Job evaluation

85. _____ are used by managers to assess subordinates on personal characteristics that are relevant to job

A. Sales appraisals
B. Behavior appraisals
C. Goal appraisals
D. Results appraisals
E. Trait appraisals

86. Which of the following is true about traits and trait appraisals?

A. In trait appraisals, managers appraise performance by the results or the actual outcomes of work
behaviors
B. Possessing a certain trait always ensures that it will be used on the job and result in high performance.
C. Trait appraisals may be viewed as unfair or potentially discriminatory by workers and courts of law.
D. Trait appraisals often enable managers to give employees feedback they can use to significantly improve
performance.
E. Trait appraisals focus on relatively short-lived human characteristics that change often.

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87. _____ appraisals assess what workers are like while _____ appraisals assess what workers do.

A. Trait; results
B. Behavior; results
C. Trait; behavior
D. Results; behavior
E. Behavior; trait

88. Organizations that focus on the actual outcomes of work behaviors rather than how the outcome has been
achieved, is using _____.

A. result appraisals
B. trait appraisals
C. behavior appraisals
D. personality appraisals
E. cognitive appraisals

89. A sales manager working for a car dealership evaluates each one of his sales staff solely on the number of
cars sold by each member in one month and not by the method used to make the sales. This is an example of
a(n) _____.

A. subjective appraisal
B. trait appraisal
C. personality appraisal
D. behavioral appraisal

90. Behaviorally anchored rating scale (BARS) and the behavior observation scale (BOS) that measures
performance as perceived by the manager are often used in _____.

A. subjective appraisals
B. mathematical appraisals
C. objective appraisals
D. factual appraisals
E. statistical appraisals

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91. In order to improve performance and motivation, Scott's performance is evaluated not only by his direct
manager, but also by his customers, subordinates, and coworkers. This is an example of a _____.

A. self appraisal
B. peer appraisal
C. client appraisal
D. supervisor appraisal
E. 360-degree appraisal

92. An organization that officially fixes meetings on a particular day on a yearly basis between a manager and a
subordinate in which the subordinate is given feedback on her performance uses the _____ method.

A. informal appraisal
B. casual appraisal
C. off-the-record appraisal
D. formal appraisal
E. unofficial appraisal

93. In _____ managers and their subordinates meet whenever the need to discuss ongoing progress and areas for
improvement arises.

A. informal appraisals
B. conventional appraisals
C. annual appraisals
D. reserved appraisals
E. formal appraisals

94. A broad comparative concept that refers to how an organization's monetary compensation incentives
compare, in general, to those of other organizations in the same industry employing similar kinds of workers
is known as:

A. pay level.
B. pay structure.
C. economies of scale.
D. relative benefits plans.
E. relative employee perks.

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95. A(n) _____ clusters jobs into categories reflecting their relative importance to the organization and its goals,
levels of skill required, and other characteristics managers consider important.

A. employee grade
B. pay structure
C. job analysis
D. job description
E. simulated structure

96. _____ is an example of a benefit that is legally required and hence not optional.

A. Life insurance
B. Unemployment insurance
C. Health insurance
D. Dental insurance
E. Child care

97. _____ are the activities managers engage in to ensure that they have effective working relationships with the
labor unions that represent their employees' interests.

A. Subjective appraisals
B. Labor relations
C. Conflict management
D. Conflict resolution
E. Objective appraisals

98. The act that made it legal for workers to organize into unions was the _____.

A. Fair Labor Standards Act

B. Civil Rights Act
C. National Labor Relations Act
D. Occupational Safety and Health Act
E. Equal Employment Opportunity Act

12-19
99. Negotiation between labor unions and managers to resolve conflicts and disputes about important issues
such as working hours, wages, working conditions, and job security is called _____.

A. organized labor
B. picketing
C. group protesting
D. collective bargaining
E. strike instigating

100. A neutral third party called a(n) _____ is usually called in to resolve any conflict that may arise over the
interpretation of the contract that spell out the terms of the collective bargaining agreement.

A. mediator
B. management spokesperson
C. arbitrator
D. picketer
E. union representative

Essay Questions

101. What is the goal of equal employment opportunity? List and briefly describe any three major equal
employment opportunity laws that affect human resource management.

102. Discuss the five major components of a human resource management system.
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103. Discuss the reasons why managers may choose to outsource and also evaluate the disadvantages of
outsourcing for an organization.

104. Discuss the advantages and disadvantages of internal recruitment. Explain how external recruitment can
compensate for these disadvantages.

105. What is reliability and validity in the context of selection tools?

106. Differentiate between training and development. Provide two examples each of the different types
of training and development.

107. Discuss how performance appraisal and feedback contribute to the effective management of human
resources within an organization.

108. List and explain the three factors on which performance appraisal is evaluated.
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109. Differentiate between objective and subjective appraisals.

110. List at least five guidelines for giving effective performance feedback that contributes to employee
motivation and performance.

111. Discuss how different organizational strategies affect wages and pay levels.

112. Describe the collective bargaining process.
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Chapter 12 Human Resource Management Answer Key
Comp: Ignore bold and underline.

True / False Questions

1. Human resource management (HRM) includes all the activities managers engage in to attract and retain
employees and to ensure that they perform at a high level and contribute to the accomplishment of

A. True
B. False
Answer: TRUE
Feedback: Human resource management (HRM) includes all the activities managers engage in to attract
and retain employees and to ensure that they perform at a high level and contribute to the
accomplishment of organizational goals.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 12-01
Topic: Human resource management The Role of Human Resource Management
2. A human resource management system is a part of the organizational architecture that managers develop
to use resources efficiently and effectively.

A. True
B. False
Answer: TRUE
Feedback: Organizational architecture is the combination of organizational structure, control systems,

culture, and a human resource management system that managers develop to use resources efficiently
and effectively.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
12-23
3. By regularly evaluating employee performance, managers may fail to identify their strengths and
weaknesses.

A. True
B. False
Answer: FALSE
Feedback: When managers regularly evaluate their subordinates’ performance, they can provide
employees with valuable information about their strengths and weaknesses and the areas in which they
need to concentrate.

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Topic: Performance feedback The Role of Human Resource Management
4. Labor relations encompass the steps that managers take to develop and maintain good working
relationships with the unions that may represent their employees’ interests.

A. True
B. False
Answer: TRUE
Feedback: Labor relations encompass the steps that managers take to develop and maintain good
working relationships with the unions that may represent their employees’ interests.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Labor relations The Role of Human Resource Management
5. Human resource management is simple because organizations need not adhere to state or national laws.

A. True
B. False
Answer: FALSE
Feedback: The local, state, and national laws and regulations that managers and organizations must abide
by add to the complexity of human resource management.

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
12-24
6. An advantage afforded by outsourcing is the increased control that managers gain over the quality of
goods and services.

A. True
B. False
Answer: FALSE
Feedback: When work is outsourced, managers lose some control over the quality of goods and services.

AACSB: Analytic
Blooms: Remember
Author: Someone has probably told you this already, and it is likely too late to change
for this edition, but "The Planning . . . of Employees" makes no sense. The topic—and, I
assume, its associated chapter title—should be revised to something like "Planning for,
Recruiting, and Selecting Employees."
Topic: Human resource planning
7. A disadvantage of outsourcing is increased cost and decreased flexibility.

A. True
B. False
Answer: FALSE
Feedback: Outsourcing can give managers increased flexibility and also allows them to use human
resources at a lower cost.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Human resource planning The Planning, Recruitment, and Selection of Employees
8. Cost saving is the only reason why managers engage in offshoring.

A. True
B. False
Answer: FALSE
Feedback: While cost savings continue to be a major motivation for offshoring, managers also want to
take advantage of an increasingly talented global workforce and be closer to the growing global
marketplace for goods and services.

AACSB: Analytic
Blooms: Understand
12-25
9. Supply forecasts estimate the supply of qualified workers in the external labor market.

A. True
B. False
Answer: TRUE
Feedback: Supply forecasts estimate the availability and qualifications of current employees now and in
the future, as well as the supply of qualified workers in the external labor market.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Forecast
10. Instead of hiring an accountant, J&K Consultants decide to contract with a local accounting firm for their
accounting needs. This is an example of outsourcing.

A. True
B. False
Answer: TRUE
Feedback: Instead of recruiting and selecting employees to produce goods and services, managers
sometimes contract with people who are not members of their organization to produce goods and
services. This is called outsourcing.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
11. An organization that selects students by conducting career fairs on college campuses is using internal
recruitment.

A. True
B. False
Answer: FALSE
Feedback: When managers recruit externally to fill open positions, they look outside the organization for
people who have not worked for the organization previously. Many large organizations send teams of
interviewers to college campuses to recruit new employees.

AACSB: Analytic
Blooms: Understand
12-26
Difficulty: 1 Easy
Topic: Selection
12. Lateral moves refer to job changes that entail significant changes in job responsibility and authority.

A. True
B. False
Answer: FALSE
Feedback: A job change that entails no major changes in responsibility or authority levels is called a
lateral move.

AACSB: Analytic
Blooms: Understand
Topic: Selection
13. An honest assessment of the advantages and disadvantages of a job and organization is called a job
appraisal.

A. True
B. False
Answer: FALSE
Feedback: An honest assessment of the advantages and disadvantages of a job and organization is called
a realistic job preview.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Selection
14. In an unstructured interview, the interviewer feels free to ask probing questions to discover what the
applicant is like and does not ask a fixed set of questions determined in advance.

A. True
B. False
Answer: TRUE
Feedback: In an unstructured interview, the interviewer feels free to ask probing questions to discover
what the applicant is like and does not ask a fixed set of questions determined in advance.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Structured interview
12-27
15. Ability tests assess the extent to which applicants possess the skills necessary for job performance, such
as verbal comprehension or numerical skills.

A. True
B. False
Answer: TRUE
Feedback: Ability tests assess the extent to which applicants possess the skills necessary for job
performance, such as verbal comprehension or numerical skills.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Employment tests
16. In the context of selection tools, validity is the degree to which a tool or test measures the same thing
each time it is administered.

A. True
B. False
Answer: FALSE
Feedback: In the context of selection tools, reliability is the degree to which a tool or test measures the
same thing each time it is administered.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: sSelection
17. In the context of selection tools, validity is the degree to which a test predicts performance on the tasks
or job in question.

A. True
B. False
Answer: TRUE
Feedback: Validity is the degree to which a tool measures what it purports to measure.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Validity
12-28
18. Training focuses more on building the skills of organization members to take on new responsibilities
than equipping them to perform the current tasks effectively.

A. True
B. False
Answer: FALSE
Feedback: Training focuses primarily on teaching organization members how to perform their current
jobs and helping them acquire the knowledge and skills they need to be effective performers.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Training and Development
19. Promising employees are required to undergo various training programs that focus on the skills required
to become an effective manager in their respective fields in the future. This is called development.

A. True
B. False
Answer: TRUE
Feedback: Development focuses on building the knowledge and skills of organization members so they
are prepared to take on new responsibilities and challenges.

AACSB: Analytic
Blooms: Remember
20. Development activities tend to take place at the lower levels of management of the organization, while
training activities tend to take place at the higher levels of the organization.

A. True
B. False
Answer: FALSE
Feedback: Training tends to be used more frequently at lower levels of an organization; development
tends to be used more frequently with professionals and managers.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
12-29
21. In on-the-job training, learning occurs outside the work setting, in classrooms where employees acquire
the knowledge and skills required to perform their jobs.

A. True
B. False
Answer: FALSE
Feedback: In on-the-job training, learning occurs in the work setting as employees perform their job
tasks.

AACSB: Analytic
Author: Please add topic. Topic: Training and Development / Human resource management
22. In simulations, learning occurs in the work setting as employees perform their job tasks.

A. True
B. False
Answer: FALSE
Feedback: In a simulation, key aspects of the work situation and job tasks are duplicated as closely as
possible in an artificial work setting.

AACSB: Analytic
Blooms: Remember
23. Performance appraisal is the evaluation of employees’ job performance and contributions to the
organization.

A. True
B. False
Answer: TRUE
Feedback: Performance appraisal is the evaluation of employees’ job performance and contributions to
the organization.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Performance appraisal
12-30
24. The process by which managers share performance appraisal information with their subordinates is
known as performance feedback.

A. True
B. False
Answer: TRUE
Feedback: Performance feedback is the process through which managers share performance appraisal
information with their subordinates, give subordinates an opportunity to reflect on their own
performance, and develop, with subordinates, plans for the future.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: How to Measure Performance and Reward Employees Performance feedback
25. Performance feedback demotivates the employees and affects their performance negatively.

A. True
B. False
Answer: FALSE
Feedback: Performance feedback encourages high levels of employee motivation and performance.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Performance feedback
26. A trait appraisal involves assessing subordinates on personal characteristics that are relevant to job

A. True
B. False
Answer: TRUE
Feedback: Trait appraisal involves assessing subordinates on personal characteristics that are relevant to
job performance, such as skills, abilities, or personality.

AACSB: Analytic
Blooms: Remember
12-31
27. Trait appraisals have the advantage over behavioral appraisals in giving employees clear information
about what they are doing right and wrong and how they can improve their performance.

A. True
B. False
Answer: FALSE
Feedback: A disadvantage of trait appraisals is that they often do not enable managers to give employees
feedback they can use to improve performance. Behavior appraisals have the advantage of giving
employees clear information about what they are doing right and wrong and how they can improve their
performance.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
28. Behavior appraisals are especially useful when what workers are like is more important than how
workers perform their jobs.

A. True
B. False
Answer: FALSE
Feedback: Through behavior appraisals, managers assess how workers perform their jobs—the actual
actions and behaviors that workers exhibit on the job. Whereas trait appraisals assess what workers are
like, behavior appraisals assess what workers do.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
29. A subjective appraisal is an appraisal that is based on perceptions of traits, behaviors, or results.

A. True
B. False
Answer: TRUE
Feedback: A subjective appraisal is an appraisal that is based on perceptions of traits, behaviors, or

results.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
12-32
30. In a 360-degree appraisal, a manager receives feedback based on evaluations by his or her superior
alone.

A. True
B. False
Answer: FALSE
Feedback: In a 360-degree appraisal, a variety of people, beginning with the manager and including
peers or coworkers, subordinates, superiors, and sometimes even customers or clients, appraise a
manager’s performance. The manager receives feedback based on evaluations from these multiple
sources.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: 360-degree assessment
31. An informal appraisal is conducted at a set time during the year and is based on performance dimensions
and measures that were specified in advance.

A. True
B. False
Answer: FALSE
Feedback: An informal appraisal is an unscheduled appraisal of ongoing progress and areas for
improvement.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
32. Benefits include employees’ base salaries, pay raises, and bonuses and are determined by a number of
factors such as characteristics of the organization and the job and levels of performance.

A. True
B. False
Answer: FALSE
Feedback: Pay includes employees’ base salaries, pay raises, and bonuses and is determined by a number
of factors such as characteristics of the organization and the job and levels of performance.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
12-33
Topic: Cafeteria-style benefit plan
33. Pay structure is the arrangement of jobs into categories reflecting their relative importance to the
organization and its goals, levels of skill required, and other characteristics.

A. True
B. False
Answer: TRUE
Feedback: Pay structure is the arrangement of jobs into categories reflecting their relative importance to
the organization and its goals, levels of skill required, and other characteristics.

AACSB: Analytic
Blooms: Remember
Topic: How to Measure Performance and Reward Cafeteria-style benefit plan
34. A high pay level is best suited for an organization that is pursuing a low-cost strategy.

A. True
B. False
Answer: FALSE
Feedback: A high pay level prohibits a manager from effectively pursuing a low-cost strategy.

AACSB: Analytic
Blooms: Remember
Topic: How to Measure Performance and Reward EmployeesCafeteria-style benefit plan
35. All benefits are optional; organizations are not legally obligated to provide any benefit.

A. True
B. False
Answer: FALSE
Feedback: Organizations are legally required to provide certain benefits to their employees, including
workers' compensation, social security, and unemployment insurance.

AACSB: Analytic
Blooms: Remember
Topic: How to Measure Performance and Reward Employees Cafeteria-style benefit plan
12-34
36. In cafeteria-style benefit plans, all employees are offered the same benefit package that is predetermined
by managers at the top.

A. True
B. False
Answer: FALSE
Feedback: Cafeteria-style benefit plans let employees themselves choose the benefits they want.

AACSB: Analytic
Blooms: Remember
Topic: How to Measure Performance and Reward Employees Cafeteria-style benefit plan
37. Labor relations are the activities managers engage in to ensure that they have effective working
relationships with the workers' unions that represent their employees’ interests.

A. True
B. False
Answer: TRUE
Feedback: Labor relations are the activities managers engage in to ensure that they have effective
working relationships with the labor unions that represent their employees’ interests.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Labor relations
38. The National Unions and Labor Laws Act of 1935 prohibits workers from organizing into unions.

A. True
B. False
Answer: FALSE
Feedback: The National Unions and Labor Laws Act of 1935 made it legal for workers to organize into
unions to protect their rights and interests and declared certain unfair or unethical organizational
practices to be illegal. Author: Because you are writing of workers organizing,
"organizational" is ambiguous. Do you mean the union's actions while organizing or the
company's/organization's actions?

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
12-35
39. Collective bargaining refers to negotiation between labor unions and managers to resolve conflicts and
disputes about important issues.

A. True
B. False
Answer: TRUE
Feedback: Collective bargaining is negotiation between labor unions and managers to resolve conflicts
and disputes about important issues.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Collective bargaining
40. Using grievance procedures, workers who believe they are not being fairly treated are allowed to voice
their concerns and have their interests represented by the union.

A. True
B. False
Answer: TRUE
Feedback: Using grievance procedures, workers who believe they are not being fairly treated are allowed
to voice their concerns and have their interests represented by the unions.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Multiple Choice Questions

12-36
41. _____ includes all the activities managers engage in to attract and retain employees and to ensure that
they perform at a high level and contribute to the accomplishment of organizational goals.

A. Product management
B. Human resource management
C. Total quality management
D. Distribution management
E. Customer relationship management
Answer: B
Feedback: Human resource management includes all the activities managers engage in to attract and
retain employees and to ensure that they perform at a high level and contribute to the accomplishment of

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Human resource management
42. Which of the following components of the HRM system focuses on attracting and hiring employees who
have the abilities and experience to help the organization achieve its goals? Author: If you actually
mean "experiences," you would need to write, "who have the abilities and have had the
experiences." Otherwise, the sentence is ungrammatical.


B. Labor relations
E. Feedback
Answer: C
Feedback: Managers use recruitment and selection, the first component of an HRM system, to attract
and hire new employees who have the abilities, skills, and experience that will help an organization
achieve its goals.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Selection
12-37
43. Davidson Software Technologies believes in hiring only the best programmers in the industry. As a
result, it uses a comprehensive hiring process that involves testing and interviewing dozens of highly
qualified professionals before hiring. This is an example of which of the following components of the
HRM system?


B. Labor relations
E. Performance feedback
Answer: C
achieve its goals.

AACSB: Analytic
Blooms: Remember
Topic: Selection
44. Managers at Wayfowler Inc. ensure that new recruits receive on-the-job coaching by experienced
employees who serve as mentors and advisers to them. This is an example of which of the following
components of the HRM system?


B. Recruitment and selection
C. Labor relations
E. Feedback
Answer: A
Feedback: After recruiting and selecting employees, managers use the second component of HRM,
training and development, to ensure that organization members develop the skills and abilities that will
enable them to perform their jobs effectively in the present and the future.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
12-38
Topic: The Role of Human Resource Managemet Training and Development / Human resource management
45. Which of the following components of the HRM system focuses on ensuring employees learn and build
the skills and abilities needed to perform their jobs effectively both in the present and the future?
Author: Or "effectively in the present as well as the future."


B. Labor relations
C. Performance appraisal
D. Performance feedback
Answer: E
Feedback: After recruiting and selecting employees, managers use the second component of the HRM
system, training and development, to ensure that organization members develop the skills and abilities
that will enable them to perform their jobs effectively in the present and the future.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Training and Development / Human resource management
46. Which of the following components of the HRM system serves a developmental purpose by providing
employees valuable information about their strengths and weaknesses?


B. Labor relations
C. Performance appraisal and feedback
D. Pay and benefits
Answer: C
Feedback: Feedback from performance appraisal serves a developmental purpose for members of an
organization. When managers regularly evaluate their subordinates’ performance, they can provide
employees with valuable information about their strengths and weaknesses and the areas in which they
need to concentrate.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
12-39
47. The _____ component of human resource management encompasses the steps that managers take to
develop and maintain a good working association with the workers' unions that represent their
employees’ interests.

A. recruitment and selection

B. labor relations
C. performance appraisal and feedback
D. pay and benefits
E. training and development
Answer: B
Feedback: Labor relations encompass the steps that managers take to develop and maintain good
working relationships with the labor unions that may represent their employees’ interests.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
48. Which of the following laws requires that managers ensure that employees are protected from workplace
hazards?


B. Civil Rights Act
E. Taft–Hartley Act
Answer: A
Feedback: The Occupational Safety and Health Act of 1970 requires that managers ensure that
employees are protected from workplace hazards and that safety standards are met.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
12-40
49. The _____ restricts mandatory retirement and especially benefits older employees.

A. Equal Pay Act

B. Civil Rights Act
C. Age Discrimination in Employment Act
D. Americans with Disabilities Act
E. Family and Medical Leave Act
Answer: C
Feedback: The Age Discrimination in Employment Act prohibits discrimination against workers over
the age of 40 and restricts mandatory retirement.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
50. An employee needs time off from work to care for a family member who is ailing from a terminal
illness. Which of the following laws mandates that she be allowed to do this?


B. Civil Rights Act
E. COBRA Act
Answer: C
Feedback: The Family and Medical Leave Act requires that employers provide 12 weeks of unpaid
leave for medical and family reasons, including paternity and illness of a family member.

AACSB: Analytic
Blooms: Understand
Topic: The Role of Human Resource Management Human resource management
12-41
51. _____ includes all the activities managers engage in to develop a pool of qualified candidates for open
positions.

A. Labor relation
B. Subjective appraisal
C. Feedback
D. Recruitment
E. Job enlargement
Answer: D
Feedback: Recruitment includes all the activities managers engage in to develop a pool of qualified
candidates for open positions.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Selection
52. _____ refers to the process by which managers decide the relative qualifications of job applicants and
their potential for performing well in a particular job.

A. Training
B. Selection
C. Development
E. Feedback
Answer: B
Feedback: Selection is the process by which managers determine the relative qualifications of job
applicants and their potential for performing well in a particular job.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Selection
12-42
53. At the beginning of a fiscal year, Bob undertakes various activities to make demand and supply
forecasts. Bob does these activities as a part of _____. Author: Would it be a good idea to specify
labor supply and demand?

A. human resource accounting

B. human resource development
C. human resource planning
D. training and development
E. job analyses
Answer: C
Feedback: Human resource planning includes all the activities managers engage in to forecast their
current and future human resource needs.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
54. When managers estimate the qualifications and numbers of employees an organization will need given
its goals and strategies, they are engaging in _____.

A. supply forecasting
B. insourcing
C. training and development
D. demand forecasting
E. outsourcing
Answer: D
Feedback: Demand forecasts estimate the qualifications and numbers of employees an organization will
need given its goals and strategies.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Strategic human resource planning
12-43
55. As a part of its human resource planning process, KRQ Consulting estimates the qualifications of all
current employees as well as the qualifications of the available workers in the external job market. KRQ
Consulting is engaging in_____.

A. management accounting
B. supply forecasting
C. insourcing
D. offshoring
E. simulations
Answer: B
Feedback: Supply forecasts estimate the availability and qualifications of current employees now and in
the future, as well as the supply of qualified workers in the external labor market.

AACSB: Analytic
Blooms: Remember
56. Instead of hiring an accountant, an organization decides to contract with a local accounting firm for its
tax accounting needs. The process is known as _____.

A. lateral recruitment
B. external recruitment
C. outsourcing
D. internal recruitment
E. offshoring
Answer: C
Feedback: Outsource is to use outside suppliers and manufacturers to produce goods and services.

AACSB: Analytic
Blooms: Remember
12-44
57. The process of identifying the tasks, duties, and responsibilities that make up a job and the knowledge,
skills, and abilities needed to perform the job is collectively known as _____.

A. a job evaluation
B. a job application
C. a job definition
D. a job appraisal
E. a job analysis
Answer: E
Feedback: Job analysis is the process of identifying (1) the tasks, duties, and responsibilities that make
up a job (the job description) and (2) the knowledge, skills, and abilities needed to perform the job (the
job specifications).

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Job analysis
58. A(n) _____ details the knowledge, skills, and abilities needed to perform the job.

A. job description
B. subjective appraisal
C. Position Analysis Questionnaire (PAQ)
Answer: D

AACSB: Analytic
Blooms: Remember
Topic: Job specification
12-45
59. The tasks, duties, and responsibilities that make up a job are known as the _____.

A. job description
B. job evaluation
C. statement of goals
E. performance feedback
Answer: A

AACSB: Analytic
Blooms: Remember
Topic: Job description
60. Recruiting processes conducted by an organization to find people outside the organization who have not
worked for the organization previously are known as _____.

A. internal recruiting
B. lateral recruiting
C. external recruiting
D. transferring
E. promoting
Answer: C
Feedback: When managers recruit externally to fill open positions, they look outside the organization
for people who have not worked for the organization previously.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Selection
12-46
61. _____ refer(s) to job changes within an organization that entail no major changes in responsibility or
authority levels.

A. Promotion
B. Lateral moves
C. Job hunting
D. External recruitment
E. Job hopping
Answer: B
Feedback: Employees recruited internally are either seeking lateral moves (job changes that entail no
major changes in responsibility or authority levels) or promotions.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Selection
62. Which of the following is true of internal recruitment?

A. The cost for internal recruitment is higher than that of external recruitment.
B. External applicants are more familiar with the organization than internal applicants.
C. Internal recruitment consumes relatively less time than external recruitment.
D. Managers have a wider pool of candidates to select from if they recruit internally than externally.
E. Managers rely more on internal applicants to bring fresh ideas to the organization than external
applicants.
Answer: C
Feedback: Internal recruiting is normally less time-consuming and expensive than external recruiting.

AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
Topic: Selection
12-47
63. Joe always ensures that potential job applicants are aware of both the advantages as well as the
disadvantages associated with the position they are applying for. Joe's assessment of the position
indicates:

A. equal employment opportunity compliance.

B. a 360-degree appraisal.
C. a focus strategy.
D. a realistic job preview.
E. a low-cost strategy.
Answer: D
Feedback: Recruitment is more likely to be effective when managers give potential applicants an honest
assessment of both the advantages and the disadvantages of the job and organization. Such an assessment
is called a realistic job preview.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Selection
64. Managers determine the potential of job applicants in performing particular jobs by evaluating their
qualifications and previous job experience. This process is called _____.

A. interviewing
B. selection
C. 360-degree appraisal
D. validating
E. reference-checking
Answer: B
Feedback: Selection is the process by which managers determine the relative qualifications of job
applicants and their potential for performing well in a particular job.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Selection
12-48
65. An organization requires all job applicants to fill out applications with details such as their name, age,
educational qualifications, and previous work experience. This organization is focusing on which aspect
of the selection process?

A. Interview process
B. Paper-and-pencil test
C. Personality assessment
D. Background information
E. Reference-checking
Answer: D
Feedback: To aid in the selection process, managers obtain background information from job
applications and from résumés. Such information might include the highest level of education obtained,
college major and minor, type of college or university attended, years and type of work experience, and
mastery of foreign languages.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
66. Tim's method of interviewing involves asking applicants the same standard set of questions. What type
of interview does Tim conduct?

C. Customized interview
D. Structured interview
E. Virtual interview
Answer: D
Feedback: In a structured interview, managers ask each applicant the same standard questions.

AACSB: Analytic
Blooms: Remember
12-49
67. Gathering background information, performance tests, physical ability tests, and references are all
examples of _____.

A. selection tools
B. performance appraisal tools
C. subjective appraisal tools
D. quality assurance tools
E. objective appraisal tools
Answer: A
Feedback: There are several selection tools that help managers sort out the relative qualifications of job
applicants and appraise their potential for being good performers in a particular job. These tools include
background information, interviews, paper-and-pencil tests, physical ability tests, performance tests, and
references.

AACSB: Analytic
Blooms: Remember
68. _____ questions often present interviewees with a scenario they are likely to encounter on the job and
ask them to indicate how they would handle it.

C. Traditional interview
D. Conventional interview
E. Informal interview
Answer: B
Feedback: In situational interview questions, interviewees are presented with a scenario they are likely
to encounter on the job and asked to indicate how they would handle it.

AACSB: Analytic
Blooms: Remember
12-50
69. As part of the selection process, Mark was required to take a test to determine if he had the necessary
skills to perform the jobs successfully. What type of test would Mark most likely be required to take?

A. Behavioral test
B. Personality test
C. Trait test
D. Morale test
E. Ability test
Answer: E
Feedback: Ability tests assess the extent to which applicants possess the skills necessary for job
performance, such as verbal comprehension or numerical skills.

AACSB: Analytic
Blooms: Remember
70. Tests that measure the individual characteristics of job applicants that are relevant to successful
performance on the job are known as _____. Author: This question, or at least its possible answers
below, is ambiguous. Isn't an ability a characteristic? And a physical ability or skill could also be a
characteristic. People have many characteristics that are not part of personality.

A. ability tests
B. physical tests
C. IQ tests
D. personality tests
E. performance tests
Answer: D
Feedback: Personality tests measure personality traits and characteristics relevant to job performance.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
12-51
71. The routine selection process for becoming a law enforcement officer includes tests that measure an
applicant's ability to perform certain job-specific tasks such as running stairs, dragging a weight, or
climbing a wall. This is an example of a(n) _____.

A. physical ability test

B. personality test
C. trait test
D. behavioral test
E. IQ test
Answer: A
Feedback: For jobs requiring physical abilities, managers use physical ability tests that measure physical
strength and stamina as selection tools.

AACSB: Analytic
Blooms: Understand
72. The selection process for a school teacher's job requires the applicant to keep a class of thirty students
engaged in a classroom activity for an hour. The candidate is evaluated by the interviewers during this
period, and the activity plays a vital role in the selection process. This is an example of which of the
following types of tests?

A. Physical ability test

B. Personality test
C. Ability test
D. Paper-and-pencil test
E. Performance test
Answer: E
Feedback: Performance tests measure job applicants’ performance on actual job tasks.

Author: Please add AACSB category. AACSB:
Blooms: Apply
Blooms: Understand
12-52
73. A job applicant is interviewed multiple times by different interviewers. In each case, it was found that
the interviewers drew similar conclusions about the applicant. This indicates the interview process has
high _____.

A. validity
B. reliability
C. flexibilit
y
D. affability
E. complexity
Answer: B
Feedback: Reliability is the degree to which a tool or test measures the same thing each time it is
administered. If the interviews are reliable, the interviewers should come to similar conclusions about an
applicant's qualifications.

AACSB: Analytic
Blooms: Remember
74. A manager attempting to select a test for a job applicant that will most accurately predict the applicant's
performance on the job is primarily concerned with the _____ of the test.

A. validity
B. predictability
C. reliability
D. compatibility
E. consistency
Answer: A
Feedback: Validity is the degree to which a tool measures what it purports to measure. For selection
tools, it is the degree to which the test predicts performance on the tasks or job in question.

AACSB: Analytic
Blooms: Understand
Topic: Validity
12-53
75. Before creating training and development programs, managers should perform a _____ to determine
which employees require training or development and what type of skills or knowledge they ought to
acquire.

A. job analysis
B. feedback session
C. realistic job preview
D. needs assessment
E. subjective appraisal
Answer: D
Feedback: Before creating training and development programs, managers should perform a needs
assessment to determine which employees need training or development and what type of skills or
knowledge they need to acquire.

AACSB: Analytic
Blooms: Remember
76. _____ focuses primarily on teaching organization members how to perform their current jobs and
helping them acquire the knowledge and skills needed to be effective performers.

A. Performance appraisal
B. Training
C. Development
D. Objective appraisal
E. Worker relations
Answer: B
Feedback: Training focuses primarily on teaching organization members how to perform their current
jobs and helping them acquire the knowledge and skills they need to be effective performers.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
12-54
77. Which of the following focuses primarily on equipping organization members to take on new
responsibilities and challenges?

A. Training
B. Evaluation
C. Appraisal
D. Job analysis
E. Development
Answer: E
Feedback: Development focuses on building the knowledge and skills of organization members so they
are prepared to take on new responsibilities and challenges and tends to be used more frequently with
professionals and managers.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
78. Which of the following is specific only to employee development, and not training?

A. Simulation
B. Classroom instruction
C. On-the-job training
D. Formal education
E. Role playing
Answer: D
Feedback: Although both classroom instruction and on-the-job training can be used for development as
well as training, development often includes additional activities such as varied work experiences and
formal education. Role playing and simulations are both types of classroom instruction.

AACSB: Analytic
Blooms: Remember
12-55
79. Due to the complexity and severe consequences of mistakes, pilots are required to undergo training in an
artificial setting that closely mimics actual flying conditions. This type of training is called _____.

A. simulation
B. apprenticeship
D. formal education
E. assistantship
Answer: A
Feedback: Simulations can be a part of classroom instruction, particularly for complicated jobs that
require an extensive amount of learning and in which errors carry a high cost. In a simulation, key
aspects of the work situation and job tasks are duplicated as closely as possible in an artificial setting.

AACSB: Analytic
Blooms: Remember
Difficulty: 3 Hard
80. Newly hired trucking employees of a courier delivery service ride with experienced drivers during
deliveries to familiarize themselves with routes, timing, and driving conditions. This method of
imparting training is an example of _____.

A. simulations
B. classroom instruction
D. formal education
E. role playing
Answer: C
Feedback: In on-the-job training, learning occurs in the work setting as employees perform their job
tasks. On-the-job training can be provided by coworkers or supervisors or can occur simply as jobholders
gain experience and knowledge from doing the work.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
12-56
81. To develop executives who will have an understanding of and expertise in a variety of functions,
products and services, and markets, managers make sure that executives with high potential have
different job proficiencies, some in line positions and some in staff positions. This is employee
development through _____.

A. varied work experiences

B. formal education
D. role-playing
E. simulation
Answer: A
Feedback: Top managers need to develop an understanding of and expertise in a variety of functions,
products and services, and markets. To develop executives who will have this expertise, managers
frequently make sure that employees with high potential have a wide variety of different job experiences,
some in line positions and some in staff positions.

AACSB: Analytic
Blooms: Understand
82. In order to develop employees who can take on new responsibilities and more challenging positions, an
organization provides a tuition reimbursement program to its employees. In this case, the organization is
aiming to develop its employees through _____.

A. mentoring
B. training
C. formal education
D. varied work experiences
E. simulation
Answer: C
Feedback: Many large corporations reimburse employees for tuition expenses they incur while taking
college courses and obtaining advanced degrees. It is an effective way to develop employees who can
take on new responsibilities and more challenging positions.

AACSB: Analytic
Blooms: Remember
12-57
83. _____ refers to a manager's evaluation of a subordinate's job performance and her contributions to the
organization.

A. Monitoring
B. Invigilating
C. Validating
D. Performance training
E. Performance appraisal
Answer: E
Feedback: Performance appraisal is the evaluation of employees' job performance and contributions to
the organization.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
84. _____ is the process by which a manager shares performance appraisal information with a subordinate
and develops a plan for the future development of that subordinate.

A. Training
B. Selection
C. Performance feedback
D. Recruitment
E. Job evaluation
Answer: C
Feedback: Performance feedback is the process through which managers share performance appraisal
information with their subordinates, give subordinates an opportunity to reflect on their own
performance, and develop, with subordinates, plans for the future.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
12-58
85. _____ are used by managers to assess subordinates on personal characteristics that are relevant to job
performance, such as skills, abilities, or personality. Author: This question confirms what I said
above in regard to the ambiguous question (or, more accurately, question with multiple correct
answer choices), skills, abilities, and personality are all characteristics.

A. Sales appraisals
B. Behavior appraisals
C. Goal appraisals
D. Results appraisals
E. Trait appraisals
Answer: E
Feedback: Trait appraisals are used by managers to assess subordinates on personal characteristics that
are relevant to job performance, such as skills, abilities, or personality.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Performance appraisals
86. Which of the following is true about traits and trait appraisals?

A. In trait appraisals, managers appraise performance by the results or the actual outcomes of work
behaviors
B. Possessing a certain trait always ensures that it will be used on the job and result in high
performance.
C. Trait appraisals may be viewed as unfair or potentially discriminatory by workers and courts of law.
D. Trait appraisals often enable managers to give employees feedback they can use to significantly
improve performance.
E. Trait appraisals focus on relatively short-lived human characteristics that change often.
Answer: C
Feedback: Because traits do not always show a direct association with performance, workers and courts
of law may view them as unfair and potentially discriminatory.

AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
12-59
87. _____ appraisals assess what workers are like, while _____ appraisals assess what workers do.

A. Trait; results
B. Behavior; results
C. Trait; behavior
D. Results; behavior
E. Behavior; trait
Answer: C
Feedback: Whereas trait appraisals assess what workers are like, behavior appraisals assess what
workers do.

AACSB: Analytic
Blooms: Understand
88. Organizations that focus on the actual outcomes of work behaviors rather than how the outcome has been
achieved, are using _____.

A. result appraisals
B. trait appraisals
C. behavior appraisals
D. personality appraisals
E. cognitive appraisals
Answer: A
Feedback: For some jobs, how people perform the job is not as important as what they accomplish or
the results they obtain. With results appraisals, managers appraise performance by the results or the
actual outcomes of work behaviors.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
12-60
89. A sales manager working for a car dealership evaluates each one of his sales staff solely on the number
of cars sold by each member in one month and not by the method used to make the sales. This is an
example of a(n) _____.

A. subjective appraisal
B. trait appraisal
C. personality appraisal
D. behavioral appraisal
Answer: E
Feedback: Objective appraisals are based on facts and are likely to be numerical.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
90. The behaviorally anchored rating scale (BARS) and the behavior observation scale (BOS) that measures
performance as perceived by the manager are often used in _____.

A. subjective appraisals
B. mathematical appraisals
C. objective appraisals
D. factual appraisals
E. statistical appraisals
Answer: A
Feedback: Subjective appraisals are based on managers' perceptions of traits, behaviors, or results.
Because subjective appraisals rest on managers' perceptions, there is always the chance that they are
inaccurate.

AACSB: Analytic
Blooms: Remember
12-61
91. In order to improve his performance and motivation, Scott's performance is evaluated not only by his
direct manager, but also by his customers, subordinates, and coworkers. This is an example of a _____.

A. self appraisal
B. peer appraisal
C. client appraisal
D. supervisor appraisal
E. 360-degree appraisal
Answer: E
Feedback: In a 360-degree appraisal, a variety of people, beginning with the manager and including
peers or coworkers, subordinates, superiors, and sometimes even customers or clients, appraise a
manager's performance.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: 360-degree assessment
92. An organization that officially fixes meetings on a particular day on a yearly basis between a manager
and a subordinate in which the subordinate is given feedback on her performance uses the _____
method.

A. informal appraisal
B. casual appraisal
C. off-the-record appraisal
D. formal appraisal
E. unofficial appraisal
Answer: D
Feedback: A formal appraisal is an appraisal conducted at a set time during the year and based on
performance dimensions and measures that were specified in advance.

AACSB: Analytic
Blooms: Understand
12-62
93. In _____ managers and their subordinates meet whenever the need to discuss ongoing progress and areas
for improvement arises.

A. informal appraisals
B. conventional appraisals
C. annual appraisals
D. reserved appraisals
E. formal appraisals
Answer: A
Feedback: Managers and their subordinates meet in informal appraisals as the need arises to discuss
ongoing progress and areas for improvement and also when feedback for a change in job duties,
assignments, or goals change is required.

AACSB: Analytic
Blooms: Remember
94. A broad comparative concept that refers to how an organization's monetary compensation incentives
compare, in general, to those of other organizations in the same industry employing similar kinds of
workers is known as:

A. pay level.
B. pay structure.
C. economies of scale.
D. relative benefits plans.
E. relative employee perks.
Answer: A
Feedback: Pay level is a broad comparative concept that refers to how an organization's pay incentives
compare, in general, to those of other organizations in the same industry employing similar kinds of
workers.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Job analysis
12-63
95. A(n) _____ clusters jobs into categories reflecting their relative importance to the organization and its
goals, levels of skill required, and other characteristics managers consider important.

A. employee grade
B. pay structure
C. job analysis
D. job description
E. simulated structure
Answer: B
Feedback: A pay structure clusters jobs into categories reflecting their relative importance to the
organization and its goals, levels of skill required, and other characteristics managers consider important.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Job analysis
96. _____ is an example of a benefit that is legally required and hence not optional.

A. Life insurance
B. Unemployment insurance
C. Health insurance
D. Dental insurance
E. Child care
Answer: B Author: C is now also correct.
Feedback: Organizations are legally required to provide certain benefits to their employees, including
workers’ compensation, Social Security, and unemployment insurance.

AACSB: Analytic
Blooms: Remember
12-64
97. _____ are the activities managers engage in to ensure that they have effective working relationships with
the labor unions that represent their employees' interests.

A. Subjective appraisals
B. Labor relations
C. Conflict management
D. Conflict resolution
E. Objective appraisals
Answer: B
Feedback: Labor relations are the activities managers engage in to ensure that they have effective
working relationships with the labor unions that represent their employees' interests.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
98. The act that made it legal for workers to organize into unions was the _____.

A. Fair Labor Standards Act

B. Civil Rights Act
C. National Labor Relations Act Author: Wasn't it the National Unions and Labor Laws Act?
D. Occupational Safety and Health Act
E. Equal Employment Opportunity Act
Answer: C
Feedback: National Labor Relations Act of 1935 made it legal for workers to organize into unions to
protect their rights and interests and declared certain unfair or unethical organizational practices to be
illegal. Author: Wasn't it the National Unions and Labor Laws Act? Also, as I pointed out
before, "organizational practices" could refer either to practices of the organization/business or
practices the union undertakes to organize workers. It would be better to rephrase.

AACSB: Analytic
Blooms: Remember
12-65
99. Negotiation between labor unions and managers to resolve conflicts and disputes about important issues
such as working hours, wages, working conditions, and job security is called _____.

A. organized labor
B. picketing
C. group protesting
D. collective bargaining
E. strike instigating
Answer: D
and disputes about important issues such as working hours, wages, working conditions, and job security.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
100. A neutral third party called a(n) _____ is usually called in to resolve any conflict that may arise over the
interpretation of the contract that spells out the terms of the collective bargaining agreement.

A. mediator
B. management spokesperson
C. arbitrator
D. picketer
E. union representative
Answer: C
Feedback: Disagreement and conflicts can arise over the interpretation of the contract that spells out the
terms of the collective bargaining agreement. In such cases, a neutral third party called an arbitrator is
usually called in to resolve the conflict.

AACSB: Analytic
Blooms: Understand
12-66
Essay Questions

101. What is the goal of equal employment opportunity? List and briefly describe any three major equal
employment opportunity laws that affect human resource management.

Answer:
Feedback: The goal of equal employment opportunity is to ensure that all citizens have an equal
opportunity to obtain employment regardless of their gender, race, country of origin, religion, age, or
disabilities. Students' answers will vary but should include the law and a brief description of what the
law prohibits or requires.

AACSB: Analytic
Blooms: Remember
Topic: Equal employment opportunity (EEO)
102. Discuss the five major components of a human resource management system.

Answer:
achieve its goals. After recruiting and selecting employees, managers use the second component, training
and development, to ensure that organization members develop the skills and abilities that will enable
them to perform their jobs effectively in the present and the future. The third component, performance
appraisal and feedback, serves two different purposes in HRM. First, performance appraisal can give
managers the information they need to make good human resources decisions—decisions about how to
train, motivate, and reward organization members. Second, feedback from performance appraisal serves
a developmental purpose for members of an organization. On the basis of performance appraisals,
managers distribute pay to employees, which is part of the fourth component of an HRM system. By
rewarding high-performing organization members with pay raises, bonuses, and the like, managers
increase the likelihood that an organization's most valued human resources will be motivated to continue
their high levels of contribution to the organization. Last, labor relations encompass the steps that
managers take to develop and maintain good working relationships with the labor unions that may
represent their employees' interests.

AACSB: Analytic
Blooms: Understand
12-67
103. Discuss the reasons why managers may choose to outsource and also evaluate the disadvantages of
outsourcing for an organization.

Answer:
Feedback: Two reasons why human-resource planning sometimes leads managers to outsource are
flexibility and cost. First, outsourcing can give managers increased flexibility, especially when
accurately forecasting human resource needs is difficult, resource needs fluctuate over time, or finding
skilled workers in a particular area is difficult. Second, outsourcing can sometimes allow managers to
use human resources at a lower cost. When work is outsourced, costs can be lower for a number of
reasons: The organization does not have to provide benefits to workers; managers can contract for work
only when the work is needed; and managers do not have to invest in training.
Disadvantages: Loss of control; quality; union resistance.

AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
104. Discuss the advantages and disadvantages of internal recruitment. Explain how external recruitment can
compensate for these disadvantages.

Answer:
Feedback: Internal recruiting has several advantages, such as the applicant's familiarity with the
organization and the manager's knowledge of an applicant's skills and abilities and actual behavior on the
job. Internal recruiting can help boost levels of employee motivation and morale, both for the employee
who gets the job and for other workers. The disadvantages of internal recruiting include the limited pool
of candidates (with the possibility of a complete lack of suitable candidates) and a tendency among those
candidates to be set in the organization’s ways. External recruitment is advantageous since it provides
access to large applicant pool; outsiders can be found with the skills, knowledge, and abilities that the
organization needs and that internal candidates lack, and outsiders often bring in fresh approaches and
may be more knowledgeable about or have experience with new technology that has not yet been used
inside the organization.

AACSB: Analytic
Blooms: Analyze
Difficulty: 3 Hard
Topic: Selection
12-68
105. What are reliability and validity in the context of selection tools?

Answer:
Feedback: Whatever selection tools a manager uses need to be both reliable and valid. Reliability is the
degree to which a tool or test measures the same thing each time it is administered. Scores on a selection
test should be similar if the same person is assessed with the same tool on two different days; if there is
quite a bit of variability, the tool is unreliable. For interviews, determining reliability is more complex
because the dynamic is personal interpretation. That is why the reliability of interviews can be increased
if two or more different qualified interviewers interview the same candidate. If the interviews are
reliable, the interviewers should come to similar conclusions about the interviewee's qualifications.
Validity is the degree to which a tool measures what it purports to measure. For selection tools, it is the
degree to which the test predicts performance on the tasks or job in question.

AACSB: Analytic
Blooms: Understand
Topic: Validity
106. Differentiate between training and development. Provide two examples each of the different types
of training and development.

Answer:
Feedback: Training and development help to ensure that organization members have the knowledge and
skills needed to perform jobs effectively, take on new responsibilities, and adapt to changing conditions.
Training focuses primarily on teaching organization members how to perform their current jobs and
helping them acquire the knowledge and skills they need to be effective performers. Development
focuses on building the knowledge and skills of organization members so they are prepared to take on
new responsibilities and challenges. Training tends to be used more frequently at lower levels of an
organization; development tends to be used more frequently with professionals and managers. Students'
examples will vary but must include the techniques covered in the chapter.

AACSB: Analytic
Blooms: Analyze
Difficulty: 3 Hard
12-69
107. Discuss how performance appraisal and feedback contribute to the effective management of human
resources within an organization.

Answer:
Feedback: Performance appraisal and feedback contribute to the effective management of human
resources in several ways. Performance appraisal gives managers important information on which to
base human resource decisions. Decisions about pay raises, bonuses, promotions, and job moves all
hinge on the accurate appraisal of performance. Performance appraisal can also help managers determine
which workers are candidates for training and development and in what areas. Performance feedback
encourages high levels of employee motivation and performance. It lets good performers know that their
efforts are valued and appreciated. It also lets poor performers know that their lackluster performance
needs improvement. Performance feedback can give both good and poor performers insight on their
strengths and weaknesses and ways in which they can improve their performance in the future.

AACSB: Analytic
Blooms: Understand
108. List and explain the three factors on which performance is evaluated in a performance appraisal.
Author: Or, simpler, "on which performance is appraised."

Answer:
Feedback: Performance appraisal focuses on evaluating traits, behaviors, and results. When trait
appraisals are used, managers assess subordinates on personal characteristics that are relevant to job
performance, such as skills, abilities, or personality. Through behavior appraisals, managers assess how
workers perform their jobs—the actual actions and behaviors that workers exhibit on the job. With
results appraisals, managers appraise performance by the results or the actual outcomes of work
behaviors.

AACSB: Analytic
Blooms: Remember
12-70
109. Differentiate between objective and subjective appraisals.

Answer:
Feedback: Whether managers appraise performance in terms of traits, behaviors, or results, the
information they assess is either objective or subjective. Objective appraisals are based on facts and are
likely to be numerical—the number of cars sold, the number of meals prepared, the number of times late,
the number of audits completed. Managers often use objective appraisals when results are being
appraised, because results tend to be easier to quantify than traits or behaviors. When how workers
perform their jobs is important, however, subjective behavior appraisals are more appropriate than results
appraisals. Subjective appraisals are based on managers' perceptions of traits, behaviors, or results.
Because subjective appraisals rest on managers' perceptions, there is always the chance that they are
inaccurate.

AACSB: Analytic
Blooms: Understand
110. List at least five guidelines for giving effective performance feedback that contributes to employee
motivation and performance.

Answer:
Feedback: (1) Be specific and focus on behaviors or outcomes that are correctable and within a worker's
ability to improve. (2) Approach performance appraisal as an exercise in problem solving and solution
finding, not criticizing. (3) Express confidence in a subordinate's ability to improve. (4) Provide
performance feedback both formally and informally. (5) Praise instances of high performance and areas
of a job in which a worker excels. (6) Avoid personal criticisms and treat subordinates with respect. (7)
Agree to a timetable for performance improvements. The student may list five or more guidelines from
the given answer.

AACSB: Analytic
Blooms: Remember
12-71
111. Discuss how different organizational strategies affect wages and pay levels.

Answer:
Feedback: In determining wages and pay levels, managers should take into account their organization's
strategy. High wages help ensure that an organization is going to be able to recruit, select, and retain high
performers, but high wages also raise costs. Low wages give an organization a cost advantage but may
undermine the organization’s ability to select and recruit high performers and to motivate current
employees to perform at a high level. Either of these situations may lead to inferior quality or inadequate
customer service. A high pay level may prohibit managers from effectively pursuing a low-cost strategy.
But a high pay level may be worth the added costs in an organization whose competitive advantage lies
in superior quality and excellent customer service.

AACSB: Analytic
Blooms: Analyze
Difficulty: 3 Hard
Topic: Pay / Strategic human resource planning
112. Describe the collective bargaining process.

Answer:
and disputes about important issues such as working hours, wages, working conditions, and job security.
Before sitting down with management to negotiate, union members sometimes go on strike to drive
home their concerns to managers. Author: This would be extremely rare. In every case I can recall,
the workers went on strike only after a failed negotiation. Once an agreement that union members
support has been reached (sometimes with the help of a neutral third party called a mediator), union
leaders and managers sign a contract spelling out the terms of the collective bargaining agreement. The
signing of a contract, however, does not finish the collective bargaining process. Disagreement and
conflicts can arise over the interpretation of the contract. In such cases, a neutral third party called an
arbitrator is usually called in to resolve the conflict. An important component of a collective bargaining
agreement is a grievance procedure through which workers who believe they are not being fairly treated
are allowed to voice their concerns and have their interests represented by the union.

AACSB: Analytic
Blooms: Understand
12-72

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Chapter 12

Human Resource Management

True / False Questions

Multiple Choice Questions

A. Training and development

A. Training and development

A. Training and development

A. Recruitment and selection

A. Recruitment and selection

A. recruitment and selection

A. Occupational Safety and Health Act

A. Equal Pay Act

A. Occupational Safety and Health Act

A. human resource accounting

A. equal employment opportunity compliance.

A. physical ability test

A. Physical ability test

A. varied work experiences

A. Fair Labor Standards Act

Comp: Ignore bold and underline.

True / False Questions

Feedback: Organizational architecture is the combination of organizational structure, control systems,

7. A disadvantage of outsourcing is increased cost and decreased flexibility.

8. Cost saving is the only reason why managers engage in offshoring.

Feedback: A subjective appraisal is an appraisal that is based on perceptions of traits, behaviors, or

Multiple Choice Questions

A. Training and development

A. Training and development

A. Training and development

A. Recruitment and selection

A. Recruitment and selection

A. recruitment and selection

A. Occupational Safety and Health Act

A. Equal Pay Act

A. Occupational Safety and Health Act

A. human resource accounting

62. Which of the following is true of internal recruitment?

A. equal employment opportunity compliance.

A. physical ability test

A. Physical ability test

A. varied work experiences

Answer: B Author: C is now also correct.

A. Fair Labor Standards Act

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