Better Business 4th Edition Solomon Test Bank

Better Business 4th Edition Solomon
Test Bank
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Better Business, 4e (Solomon)
Chapter 9 Human Resource Management
1) Janet is the human resource manager for a large consumer products company. She has a great
many job responsibilities. Which of the following is most likely NOT an aspect of her job?
A) training and motivating
B) employee evaluations
C) asset management
D) benefits
E) staffing needs
Answer: C
Explanation: C) HR managers are normally responsible for planning staffing needs, recruiting
and hiring, training and motivating, evaluating, compensating, and terminating and repositioning
employees. Today, HRMs also deal with diversity issues, work/lifestyle preferences, and global
business considerations.
Diff: 1
AACSB: Reflective thinking
LO: 9.1: What processes are involved in human resources management (HRM)?
Classification: Application
Learning Outcome: Summarize the functions carried out by human resources
2) Carlos needs to assess the current supply of employees in his company. He consults a
document detailing the ages, educational backgrounds, training, experiences, specialized skills,
and current and previous office positions for each employee. In HR, this document is called the
________.
A) workforce profile
B) workforce forecast
C) job description
D) job advertisement
E) job specifications
Answer: A
Explanation: A) A workforce profile is used to determine the current supply of employees. It is a
personnel inventory of information about each employee, such as age, education, training,
experience, specialized skills, current position, and previous positions held.
Diff: 1
1
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3) Gabrielle is in charge of hiring new employees for her company. She decides she needs to
assess the future demand for employees through forecasting and sets out to learn more about it.
Which of the following statements about forecasting does Gabrielle discover is FALSE?
A) Forecasting considers predicted sales of a company's products.
B) Forecasting considers the effect of technology changes on staff needs.
C) Forecasting considers the role of antidiscrimination policies at present.
D) Forecasting considers normal turnover rates and their likely effect on business.
E) Forecasting considers the current workforce skill level.
Answer: C
Explanation: C) Forecasting determines future demand for employees. It is based on predicted
sales of a company's goods or services, current workforce skill level, the effect of technology
changes on staff needs, and employment alternatives. In addition, it considers staffing changes
that result from normal turnover or retirement.
Diff: 2
4) Nolan is applying for a promotion within his company. The ________ state that the qualified
candidate must have a four-year college business degree, five years of experience with the sales
force, the ability to work under pressure, and excellent communication and organizational skills.
A) workforce profiles
B) job descriptions
C) job shares
D) job specifications
E) job forecasts
Answer: D
Explanation: D) Job specifications are the skills, education, experience, and personal attributes
that candidates must possess to successfully fulfill the role. They are not to be confused with a
job description, which summarizes what the employee will do in the role, including the job
responsibilities, the conditions under which the job will be performed, and its relationship to
other functions in the organization. Together, the job description and job specifications comprise
the job analysis.
Diff: 2
2
5) Elizabeth saw a posting for a new job on her company's intranet. She was interested in the
new challenges this job could provide her, so she applied right away. Elizabeth's company was
performing ________.
A) external recruiting
B) internal recruiting
C) simulation recruiting
D) virtual recruiting
E) social network recruiting
Answer: B
Explanation: B) With internal recruiting, companies seek to fill job vacancies with existing
employees. With external recruiting, companies look outside the organization to fill vacancies.
Diff: 1
6) Midori was searching for a new job. An employment agency contacted her about a job that
was perfect for her skill set. Midori was hired. Midori's new company was performing ________.
A) external recruiting
B) internal recruiting
C) simulation recruiting
D) virtual recruiting
E) social media recruiting
Answer: A
Explanation: A) With internal recruiting, companies seek to fill job vacancies with existing
Diff: 1
3
7) Benito is an HR manager who is responsible for online recruitment of new employees.
Technology has created many challenges for recruiters like him. Which of the following is most
likely FALSE?
A) Benito should make his company stand out from his competitors when posting job
descriptions.
B) Benito must stay up to date on how to use social networking techniques and Web 2.0
techniques.
C) Benito can quickly sift through the responses to online postings to find qualified candidates.
D) Benito must create online job postings that appeal to the most qualified candidates.
E) Benito's online posts will yield a large pool of potential candidates.
Answer: C
Explanation: C) Technology has created some recruiting challenges for HR professionals.
Online job postings yield a great many results and sifting through them to find qualified
candidates can be time consuming. Additionally, HR managers must stay abreast of changes and
updates to technologies so that they can create job postings that appeal to the most qualified
candidates and that stand out from those of their competitors.
Diff: 2
Classification: Concept
8) Roseanne is in the process of hiring a new administrative assistant. What is the last step in this
hiring process?
A) conduct background checks
B) monitor through probationary period
C) test candidate for specific job skills
D) conduct follow-up interviews
E) make final selection
Answer: B
Explanation: B) There are six steps in the hiring process: determine the initial pool of candidates
from applicant files, conduct and initial follow-up interviews, test for specific job skills, conduct
background and reference checks, make final selection, and hire and monitor through the
probationary or trial period.
Diff: 1
4
9) Tyrone is an African American who was told during a recent job interview that he would not
be hired because the interviewer had issues with the color of his skin. Which federal law was
created to combat this kind of discrimination?
A) Civil Rights Act of 1964
B) Americans with Disabilities Act
C) Age Discrimination in Employment Act
D) Race Discrimination in Employment Act
E) Fair Labor Standards Act
Answer: A
Explanation: A) The Civil Rights Act of 1964 prohibits discrimination based on race, color,
gender, religion, and national origin.
Diff: 2
AACSB: Diverse and multicultural work environments
10) Kyle has just accepted a job as an accountant for a large firm. He is deaf, so his employer is
expected to accommodate Kyle's needs with some modified telephone equipment. These
reasonable accommodations are legislated under the ________.
D) Discrimination Act of 1999
E) Fair Labor Standards Act
Answer: B
Explanation: B) The Americans with Disabilities Act prohibits discrimination based on
disabilities. It requires employers to make reasonable accommodations to the known disability of
a qualified applicant or employee as long as it does not impose undue hardship on the operation
of the business.
Diff: 2
5
11) An insurance company was posting a job notice about a new position within the company.
The notice stated that a younger employee was desirable because they thought he/she would stay
with the company for a longer period of time. This kind of behavior is considered illegal under
the ________.
D) Discrimination Act of 1999
E) Workplace Diversity Act
Answer: C
Explanation: C) The Age Discrimination in Employment Act makes it unlawful to discriminate
against a person because of his/her age with respect to employment.
Diff: 1
12) Julia is the HR manager. Before she can start hiring staff at her company, she first must
determine whether it has the correct number of employees.
Answer: TRUE
Explanation: Planning staffing requires determining the optimal number of employees the
business needs and clearly identifying the exact job positions and the requirements of those
positions.
Diff: 2
13) Alexander needs to determine the current supply of employees. He consults a computerized
file that details information about each employee–ages, educational backgrounds, training,
specialized skills, etc. The file Alexander consults is the workforce profile.
Answer: TRUE
Explanation: A workforce profile is used to determine the current supply of employees. It is an
inventory of information about each employee, such as age, education, training, experience,
specialized skills, current position, and previous positions held.
Diff: 1
6
14) Sydney recently saw a notice in her company newsletter about a new job opening within her
company. Since it would be a promotion for her, she applied later that day. In this example,
Sydney's company recruited externally.
Answer: FALSE
Explanation: With internal recruiting, companies seek to fill job vacancies with existing
Diff: 1
15) Jonathan is confined to a wheelchair. He was just transferred to a new office location, which
is in a very old building with many steps leading to the door, but no ramp. His boss refuses to
accommodate his needs. The Civil Rights Act of 1964 prohibits this kind of discrimination.
Answer: FALSE
Explanation: It is actually the Americans with Disabilities Act that prohibits discrimination
based on disabilities. It requires employers to make reasonable accommodations to the known
disability of a qualified applicant or employee as long as it does not impose undue hardship on
the operation of the business. Reasonable accommodations would include a wheelchair ramp in
this case. The Civil Rights Act of 1964 prohibits discriminating based on a person's race, color,
gender, religion, and natural origin.
Diff: 2
16) What are the functions of human resource management (HRM)?

Answer: HRM covers every aspect of managing the people resources in a company. It involves
hiring, training, motivating, evaluating, and compensating personnel. In addition to the
traditional functions, HRM also works through many challenges in today's workplace, such as
diversity issues, work/life preferences, and global business considerations.
Diff: 1
7
17) Develop a workforce profile that includes yourself and your best friend as employees.
Answer: Student answers will vary. However, a workforce profile is used to determine the
current supply of employees. It is a personnel inventory of information about each employee,
such as age, education, training, experience, specialized skills, current position, and previous
positions held.
Diff: 2
18) Think of your ideal job. Write a job description and job specifications for it.
Answer: Student answers will vary. However, the job description is a formal statement that
includes job responsibilities, the conditions under which the job will be performed, etc. These are
not to be confused with job specifications, which are the skills, education, experience, and
personal attributes that the candidate must possess to successfully fulfill the role.
Diff: 2
19) Define the HR activity of recruiting. What are the two types of recruiting?
Answer: Recruiting is the process of finding, screening, and selecting people for a job. With
internal recruiting, companies seek to fill job vacancies with existing employees. With external
recruiting, companies look outside the organization to fill vacancies.
Diff: 2
20) Define the steps in the HR activity of hiring.

Answer: There are six steps in the hiring process: determine the initial pool of candidates from
applicant files, conduct initial and follow-up interviews, test for specific job skills, conduct
background and reference checks, make a final selection, and hire and monitor through the
probationary or trial period.
Diff: 2
8
21) On Michaela's first day at work, she was introduced to her coworkers, given a tour of the
facilities, given information about company procedures and expectations, and was given the
opportunity to ask questions. Michaela experienced a(n) ________.
A) on-the-job training program
B) orientation program
C) programmed learning program
D) apprentice program
E) job analysis
Answer: B
Explanation: B) Orientation programs familiarize the new employee with facilities, coworkers,
mentors, company procedures, company mission, etc. Quality orientation programs also discuss
how the new employee's contributions can add to the company's success. Failure to properly
orient a new employee often leads to low retention rates.
Diff: 1
LO: 9.2: How are employees trained and evaluated?
22) Yoshiko owns a greeting card store and recently hired a new daytime clerk. The new clerk is
learning job skills by performing them under Yoshiko's informal direction. Yoshiko is
conducting a(n) ________.
A) simulation training program
B) programmed learning program
C) orientation program
D) on-the-job training program
E) job analysis
Answer: D
Explanation: D) In an on-the-job training program other employees in the department, or a
mentor, help the employee learn skills by having the employee perform them.
Diff: 2
9
23) Steve has a new job as a data warehouse specialist. He has attended formal classes at the
local university and informal classes provided by his employer in order to learn the skills
required by his new job. Steve also has learned job skills by performing them during the
workday. Steve has experienced a(n) ________.
A) programmed learning approach
B) orientation program
C) job analysis
D) apprentice training program
E) simulation training program
Answer: D
Explanation: D) In an apprentice training program, employees are trained through classroom or
formal instruction and on-the-job efforts.
Diff: 2
24) While training for a new job, Vincenzo was given a computerized, multiple-choice test,
which provided him immediate feedback regarding his answers. Vincenzo experienced a(n)
________.
A) programmed learning approach
B) on-the-job training program
C) apprentice training program
D) off-the-job training approach
E) simulation training approach
Answer: A
Explanation: A) In the programmed learning approach, an employee is asked to perform step-
by-step instructions or to respond to questions, often via computerized multiple-choice tests.
These tests provide immediate feedback and allow an employee to progress at his/her own pace.
Diff: 1
10
25) Simulation training would be LEAST LIKELY to be used for which of the following jobs?
A) airline pilot
B) astronaut
C) retail manager
D) surgeon
E) nurse
Answer: C
Explanation: C) Simulation training provides realistic job training in a manner that is
challenging, but does not create the threat of failure. It is suitable for airline pilots, astronauts,
and medical professionals for whom making mistakes during training is not an option or is too
costly.
Diff: 2
26) Kathleen wants to be a nurse manager at a local children's hospital. She is studying for this
position through a distance learning program and is taking a class offered by a university in
another state. The type of training Kathleen is experiencing is ________.
A) simulation
B) off-the-job
C) on-the-job
D) online
E) programmed learning
Answer: D
Explanation: D) Online training allows employees to take college classes via the Internet to
obtain specific job-related education, delivered live or at their own convenience. It also involves
teletraining, videoconferencing, and Electronic Performance Support Systems (EPSSs).
Diff: 2
11
27) Which of the following is NOT a part of a typical management development program?
A) job rotation
B) coaching program
C) workforce profiles
D) action learning
E) understudy program
Answer: C
Explanation: C) Management development programs prepare management-trainees to become
managers within the organization. The trainees participate in on-the-job training programs that
may include job rotation, a coaching/understudy program, and action learning.
Diff: 2
28) Yvette was recently hired as a restaurant manager for McDonald's and must attend classes at
Hamburger University. This is an example of ________.
A) off-the-job training
B) on-the-job training
C) programmed learning
D) online training
E) gamification
Answer: A
Explanation: A) Off-the-job training and development techniques require employees to
participate in outside seminars, university-conducted programs, or corporate universities.
Diff: 2
12
29) What is the difference between performance management and performance appraisals?
A) Performance management is an ongoing process while a typical performance appraisal
happens once per year.
B) Performance management provides one-time feedback, whereas performance appraisals give
employees constant feedback.
C) Performance management requires employees to be extrinsically motivated, whereas
performance appraisals require employees to be intrinsically motivated.
D) Performance management often results in employee criticisms, but performance appraisals
are more defensible.
E) Performance appraisal is more of a cyclical and fluid process than the single occurrence of
performance management.
Answer: A
Explanation: A) A criticism of performance appraisals is that they often suggest ways to
improve weak performance or to enhance solid performance, but the process does not offer the
opportunity to follow up. Often, these issues are not readdressed until the next appraisal, which
may be a year away. Performance management, on the other hand, is an ongoing process.
Diff: 2
30) Which of the following is NOT a problem typically encountered with performance
appraisals?
A) There can be discomfort when it is necessary to make negative comments during this review
process.
B) There are often difficulties objectively appraising performance, because appraisers often do
not see all aspects of an employee's performance.
C) There is much administrative pressure due to the high frequency of an individual's
performance appraisals in one year.
D) There is often no built-in mechanism for following up on suggestions for change or
development.
E) Often, it is not until the next performance appraisal that it is recognized that recommended
training and development did not occur.
Answer: C
Explanation: C) Criticisms of performance appraisals include discomfort when handing out
harsh comments, the difficulty in quantifying performance and in defending ratings, and the lack
of opportunity for follow-up on suggestions for change or development.
Diff: 2
13
31) When Iris was trained for her new job, she was asked to respond to questions on a
computerized multiple-choice test. Iris' company used the apprentice training approach.
Answer: FALSE
Explanation: In the programmed learning approach, an employee is asked to perform step-by-
step instructions or to respond to questions, often via computerized multiple-choice tests. These
tests provide immediate feedback and allow an employee to progress at his/her own pace.
Diff: 1
32) Yvette was recently hired as a restaurant manager for McDonald's and must attend classes at
Hamburger University. This is an example of the programmed learning approach.
Answer: FALSE
Explanation: Off-the-job training and development techniques require employees to participate
in outside seminars, university-conducted programs, or corporate universities.
Diff: 2
33) Daniel is due for his regularly scheduled performance appraisal. This is the time when Daniel
receives an official evaluation of his performance, feedback about his work, and areas where
improvements should be made.
Answer: TRUE
Explanation: Performance appraisals evaluate an employee's performance, give feedback about
how well the employee is doing, and make suggestions for changes or improvements. Results
help managers make decisions about promotions, raises, additional training, or reassignments.
Diff: 1
14
34) Ramona's company has taken a new approach to the appraisal system. They combine goal
setting, performance appraisals, training, and feedback into an ongoing process. This approach is
called performance management.
Answer: TRUE
Explanation: Performance management is an alternative to the traditional performance appraisal.
It combines goal setting, performance appraisals, training, and development into a unified and
ongoing process. Employees are constantly receiving feedback on their work to make changes or
necessary corrections quickly.
Diff: 2
35) Quinn is seeking a promotion within her company and needs to complete her master's
degree. To help facilitate this, she took a marketing class over the Internet. What kind of training
is Quinn receiving? How do you know?
Answer: Online training, or distance learning, allows employees to take college classes via the
Internet to obtain specific job-related education. It also involves teletraining, videoconferencing,
and Electronic Performance Support Systems (EPSSs).
Diff: 2
36) Ronald was recently hired as a restaurant manager for McDonald's and must attend classes at
Hamburger University. What type of training is Ronald receiving? How do you know?
Answer: Ronald is receiving off-the-job training and development, which requires employees to
participate in outside seminars, university-conducted programs, or corporate universities.
Diff: 2
37) Why are performance appraisals useful? What are the drawbacks?
Answer: Performance appraisals are evaluations of employee performance that give feedback
and suggestions for improvement. Drawbacks to performance appraisals include the
uncomfortable feelings from handing out negative criticisms, the difficulty in objectively
evaluating performance since supervisors often do not see all aspects of their performance, and
the lack of follow-up.
Diff: 2
15
38) Why might performance management systems be preferred to the performance appraisal
system?
Answer: Performance management is an approach that combines goal setting, performance
appraisals, and training and development into a unified and ongoing process. As such, it is more
of a cyclical and fluid process than the single occurrence of a performance appraisal. This is a
superior system to the one-time-per-year appraisal.
Diff: 2
39) Suki earns $52,000 per year for her work as an associate marketing manager. Suki's
compensation is called a ________.
A) salary
B) wage
C) commission
D) bonus
E) defined contribution plan
Answer: A
Explanation: A) Salaries are fixed annual sums for a specific job. Wages are payments for
hourly work.
Diff: 1
LO: 9.3: How are employees compensated and scheduled?
40) Joshua is paid the minimum hourly rate for his work as a lifeguard. Joshua's compensation is
called a ________.
A) salary
B) wage
C) commission
D) bonus
Answer: B
Explanation: B) Salaries are fixed annual sums for a specific job. Wages are payments for
hourly work.
Diff: 1
16
41) Chelsea is a marketing manager and receives a lump sum payment from her company based
on the company's higher-than-normal profits from last year. This compensation is called a
________.
A) salary
B) wage
C) commission
D) bonus
Answer: D
Explanation: D) A bonus is compensation based on total corporate profits and helps tie the
employee's efforts to the company's bottom line.
Diff: 1
42) Oscar works in pharmaceutical sales. His base compensation is fairly low, but it is enhanced
with compensation directly tied to his sales results. The incentive-based payments Oscar receives
are called ________.
A) commissions
B) bonuses
C) wages
D) salaries
E) defined contribution plans
Answer: A
Explanation: A) Commissions are incentive-based payments that are based directly on an
employee's job performance. Bonuses are also incentive-based payments, but are based on total
corporate profits and are meant to tie employee's efforts to the company's bottom line.
Diff: 2
17
43) Felix is concerned about saving money for retirement. His company offers him a plan that
requires him to contribute a specific amount of money each year through payroll deductions. At
retirement, Felix will receive the monies he contributed as well as the fund's investment
earnings. Felix is contributing to a(n) ________.
A) profit sharing plan
B) pension plan
C) 401(k) plan
D) ESOP
E) incentive-based payment structure
Answer: B
Explanation: B) Some pension plans specify the annual amount of money employees will
contribute to their plan through payroll deductions. The actual amount received at retirement will
depend on the amount contributed and the fund's investment earnings. These are also known as
defined contribution plans. A 401(k) plan is different because there the employee decides the
contribution amounts (up to a specified legal limit).
Diff: 2
44) Carson is involved in a plan that gives him stock in his company based on the number of
years he has worked there. His stock is held in trust for him by the company until he leaves or
retires. Because of his ownership in the company, Carson feels more connected to the business
and is motivated to ensure its success. Carson is participating in a(n) ________.
A) profit sharing plan
B) employee stock purchase plan
C) ESOP
D) 401(k)
E) pension plan
Answer: C
Explanation: C) An advantage of ESOP is that employees tend to feel more connected to the
company and are motivated to ensure its success. For United Airlines, the first year under ESOP
was the best for stockholders in the 70-year history of the company.
Diff: 2
18
45) Teresa just received a quarterly statement from the Vanguard Group, which shows earnings
from investments using her pretax dollars. Teresa contributes a percentage of her salary to the
plan and her company matches it. Teresa is participating in a(n) ________.
A) pension plan
B) 401(k)
C) stock option agreement
D) ESOP
E) profit sharing plan
Answer: B
Explanation: B) A 401(k) plan is a defined contribution plan in which pretax dollars are
invested. It is often managed by an outside investment company, such as the Vanguard Group.
An employee's annual contribution is determined by the employee as a percentage of salary up to
a specified legal limit.
Diff: 2
46) Which of the following is also known as a "cafeteria plan?"

A) employee stock purchase plan
B) employee stock ownership plan
C) flexible benefit plan
D) personal life benefit plan
E) profit sharing plan
Answer: C
Explanation: C) Flexible benefit plans are called cafeteria plans because employees are
permitted to choose the benefits (much like choosing food in a cafeteria) that are most important
to them, while reducing the cost of offering all benefits to all employees.
Diff: 1
19
47) Benjamin has a full-time job and has decided to work toward earning his master's degree at a
local university. Some days he works from 7:00 A.M. until 3:30 P.M. so he can leave in time to
attend his 4:00 P.M. classes. The rest of the week, Benjamin works from 8:00 A.M. until 4:30
P.M. From this example, we know Benjamin's company allows ________.
A) flextime schedules
B) permanent part-time schedules
C) compressed workweeks
D) telecommuting
E) job sharing
Answer: A
Explanation: A) With flextime, or alternative scheduling plans, management defines a total
number of required hours as a core workday and is flexible with starting and ending times.
Flextime allows for increased productivity due to reductions in absenteeism and tardiness.
Diff: 2
48) Julia works in the HR department for a large firm. She works at her desk in the office on
Tuesdays, Wednesdays, and Thursdays. She works from home on Mondays and Fridays so that
she can help care for her elderly mother. From this example, we know Julia's company allows
________.
A) flextime schedules
B) job sharing
C) permanent part-time schedules
D) telecommuting
E) compressed workweeks
Answer: D
Explanation: D) Telecommuting allows employees to work in the office part-time and to work
from home part-time. Alternatively, employees may work from home full time with only
occasional visits to the office. It reduces commuting costs and allows employees to take care of
other responsibilities outside the office setting.
Diff: 2
20
49) Bella has two young children and a full-time job. Her day care provider cannot work on
Fridays. Bella's employer allows her to work Mondays through Thursdays, as long as she puts in
ten hours each day. From this example, we know Bella's employer allows ________.
A) telecommuting
B) a compressed workweek
D) flextime
E) job sharing
Answer: B
Explanation: B) In a compressed workweek, employees work more hours in fewer days (e.g.,
four 10-hour days). It reduces worker overtime and allows for longer blocks of personal time and
less commuting time.
Diff: 2
50) The local library system offers some employees the opportunity to work five days per week
for four hours each day. These employees also receive the same health insurance and paid time
off plans that the employees working 40 hours per week receive. From this example, we know
the library system is offering ________.
A) flextime
B) job sharing
D) compressed workweeks
E) telecommuting
Answer: C
Explanation: C) Permanent part-time employees are hired on a permanent basis to work a part-
time week. They receive the same benefits that full-time employees receive.
Diff: 2
21
51) Jamie is a school nurse and prefers to work on Mondays, Wednesdays, and Fridays. Her
friend Cindy works as the school nurse on Tuesdays and Thursdays. They both work eight-hour
days and are considered part-time employees. From this example, we know the school is offering
________.
A) flextime
B) job sharing
C) telecommuting
D) compressed workweeks
E) family leave
Answer: B
Explanation: B) Jamie and Cindy are job sharing, which is an arrangement wherein two
employees work part-time sharing one full-time job. In a compressed workweek, employees
work more hours in fewer days (i.e., four 10-hour days).
Diff: 2
52) Doreen is a marketing instructor at the branch office of a local college. When she cannot
teach one of her evening classes, she hires her friend Patrick to fill in for her. In this case, Patrick
is a(n) ________.
A) contingent worker
B) independent contractor
C) consultant
D) flextime worker
E) job sharer
Answer: A
Explanation: A) Contingent workers are hired on an as-needed basis and lack status as regular,
full-time employees. These workers are often hired to fill in for absent workers or to augment the
staff during busy periods.
Diff: 2
22
53) Linda owns a bakery and wants to hire Bill, a Web-page developer, to create a new site for
her company. Linda does not need Bill on staff permanently. Bill would be considered a(n)
________.
A) contingent worker
B) independent contractor
C) permanent part-time worker
D) flextime worker
E) telecommuter
Answer: B
Explanation: B) Independent contractors are hired for those jobs that commonly are hard to fill
and involve state-of-the-art skills.
Diff: 2
54) Which of the following is NOT a reason to seek out temporary work?
A) to experience different types of work and to meet many people
B) to gain real-world experience in a field in which you may be interested
C) to join retirement and pension plans at various companies
D) to earn income while maintaining a flexible schedule
E) to gain real-world experience in an industry you'd like to pursue on a full-time basis
Answer: C
Explanation: C) Temporary workers find there are many benefits in this type of work. They
enjoy working for different companies, doing different jobs, and meeting new people. Some
people find temporary work beneficial for earning extra income while maintaining a flexible
schedule or for learning more about a potential field of interest. Temporary workers are not
typically entitled to retirement and pension plans.
Diff: 2
55) James is a pizza delivery driver and earns just over eight dollars an hour. This compensation
is known as a fixed salary.
Answer: FALSE
Explanation: This is an example of wages. Compensation, payment for work performed,
generally is offered through direct financial payments in the form of fixed salaries (annual pay
for a specific job) or wages (payments for hourly work).
Diff: 1
23
56) Teresa just received a quarterly statement from the Vanguard Group, which shows earnings
from investments using her pretax dollars. Teresa contributes a percentage of her salary to the
plan and her company matches it. Teresa has a 401(k) plan.
Answer: TRUE
Explanation: A 401(k) plan is a defined contribution plan in which pretax dollars are invested. It
is often managed by an outside investment company, such as the Vanguard Group. An
employee's annual contribution is determined by the employee as a percentage of salary up to a
specified legal limit.
Diff: 2
57) Mary Beth is opening her own day care center. She plans to offer her employees flexible
schedules, free child care, and free memberships to the local fitness center in hopes of keeping
them motivated and relaxed. Mary Beth is offering work/life benefits to her employees.
Answer: TRUE
Explanation: Work/life benefits help an employee achieve balance between the demands of life
both inside and outside the workplace. They include flexible work schedules, relaxed
atmospheres, and child care and fitness/gym programs.
Diff: 2
58) Sandy has worked as an office manager for many years and is planning to retire soon. She
decides to ease out of the job by working only on Thursdays and Fridays. Amy is hired to fulfill
the duties of office manager on the days Sandy does not work. Both work eight-hour days and
are considered part-time employees. Sandy and Amy are both working a compressed workweek.
Answer: FALSE
Explanation: Sandy and Amy are job sharing, which is an arrangement wherein two employees
work part-time sharing one full-time job. In a compressed workweek, employees work more
hours in fewer days (i.e., four 10-hour days).
Diff: 2
24
59) Arthur is the new HR manager and is investigating the various forms of compensation the
company uses for its employees. What forms of compensation might be offered at Arthur's
company?
Answer: Compensation may take the form of salaries (annual pay for a specific job) or wages
(payments for hourly work). It may also include incentive-based pay, such as commissions
(compensation based directly on employee performance) or bonuses (compensation based on
corporate profits). Profit sharing plans, stock options, employee stock purchase plans, and
employee stock ownership plans are also forms of compensation.
Diff: 1
60) Doug's company allows him to purchase its stock for 85% of its market value. What type of
financial incentive is Doug's company offering him? How do you know?
Answer: Doug's company is offering him an employee stock purchase plan. In the plan, the
company will permit Doug to purchase its stock at a discount rate. Companies typically provide
payroll deductions for these purchases and limit amounts to ten percent of total pay.
Diff: 2
61) What are work/life benefits? Give some examples.

Answer: Work/life benefits are benefits that help an employee achieve a balance between the
demands of life both inside and outside the workplace. Examples include flexible schedules,
relaxed atmospheres, child care, and fitness programs.
Diff: 1
62) Lauren has a full-time job. Due to an erratic child care situation, she works from 7:00 A.M.
until 3:30 P.M. two days a week so she can leave in time to pick up her children at 4:00 P.M.
The rest of the week, she works from 8:00 A.M. until 4:30 P.M. What type of alternative
schedule arrangement does Lauren's company offer? How do you know?
Answer: With flextime, or alternative scheduling plans, management defines a total number of
required hours as a core workday and is flexible with starting and ending times. Flextime allows
for increased productivity due to reductions in absenteeism and tardiness.
Diff: 2
25
63) Marvin has worked for his company for five years and feels it is time to increase his level of
responsibility and stature in the company. Marvin is seeking a ________.
A) promotion
B) retirement
C) termination
D) relocation
E) transfer
Answer: A
Explanation: A) After performing successfully in a position, many employees seek promotions
to increase their levels of responsibility and stature in their firms.
Diff: 1
LO: 9.4: How does an employee's status change as a result of promotions, termination, and
retirement?
64) Aneal is a very successful employee in the IT department. His supervisor wishes to recognize
him with a promotion to give him more responsibilities, but knows Aneal does not want to
manage other employees. What option does Aneal's supervisor have?
A) She does not have any options other than allowing Aneal to remain in his current job until he
changes his mind about supervising.
B) She can force Aneal to take on a supervisory role and see if he changes his mind.
C) She can offer Aneal a position on an individual contributor career track and the title of senior
IT specialist.
D) She can lower Aneal's level of responsibility in his current job until Aneal is so miserable
he'll do anything for a change.
E) She can transfer Aneal to another branch office so at least he'll have new coworkers.
Answer: C
Explanation: C) Some companies provide two career paths for their employees–one towards
management and the other for "individual contributors" who do not want to manage. The latter
often involves more responsibilities and titles such as "senior engineer."
Diff: 2
retirement?
26
65) What is the retirement age in the United States?
A) 60 years old
B) 62 years old
C) 65 years old
D) 70 years old
E) whenever the employee stops participating full-time in his/her career
Answer: E
Explanation: E) Retirement is the point in a person's life when he or she stops participating full-
time in his or her career. Traditionally, employees retired at the age of 65, but this is no longer
the case. Financial concerns are causing many employees to continue working until much later in
life.
Diff: 1
retirement?
66) Nicholas works for a marketing firm, which is looking to cut staff due to financial hardships.
Since Nicholas is nearing 70 years old, the company decides to encourage him to retire by
offering him various financial incentives. This worker buyout is also known as a(n) ________.
A) bonus
B) golden parachute
C) incentive-payment structure
D) commission
E) age discrimination case
Answer: B
Explanation: B) An aging workforce presents several challenges. Some companies offer worker
buyouts, which are financial incentives, to encourage aging workers to retire. Worker buyouts
are also called golden parachutes.
Diff: 2
retirement?
27
67) Which of the following is NOT a legally defensible reason for terminating an employee?
A) downsizing and/or restructuring of company
B) increased use of technologies replacing workers
C) testifying against the company in a legal proceeding
D) repeated documentation of poor performance
E) outsourcing and/or offshoring jobs
Answer: C
Explanation: C) Termination involves permanently laying off staff due to poor performance or a
discontinued need for their services. Companies cannot terminate employees because of whistle
blowing, filing a worker's compensation claim, jury service, or testifying against the company in
a legal proceeding.
Diff: 1
retirement?
68) Johanna decides she is bored with her current job and is ready to quit. She wants to take
some time off and then look for a new job in a different city. Her coworker tells Johanna to
check the company handbook to make sure her reasons for quitting are acceptable. Johanna
knows this is not necessary because of the legal doctrine, ________.
A) human resources
B) employment at will
C) affirmative action
D) termination at will
E) flexible employment
Answer: B
Explanation: B) Employment at will is a legal doctrine that states that an employer can fire an
employee for any reason at any time. Likewise, an employee may resign a job for any reason at
any time. Exceptions are made for such things as discrimination, whistle-blowing, jury service,
etc.
Diff: 2
retirement?
28
69) Victor has no desire to supervise other employees, so his company has no way to offer him
promotional opportunities.
Answer: FALSE
Explanation: Some companies provide two career paths for their employees–one towards
Diff: 1
retirement?
70) Peter is 67 years old and works for a retail firm, which is looking to cut staff. The company
decides to encourage Peter to retire by offering him financial incentives. This is an example of
age discrimination.
Answer: FALSE
Explanation: An aging workforce presents several challenges, such as age discrimination
lawsuits if they aggressively lay off older workers. To encourage older workers to retire, some
companies offer worker buyouts, which are financial incentives to encourage aging workers to
retire.
Diff: 2
retirement?
71) Patricia can resign from her job for any reason at any time because of the employment at will
doctrine.
Answer: TRUE
Explanation: Employment at will is a legal doctrine that states that an employer can fire an
employee for any reason at any time. Likewise, an employee may resign a job for any reason at
any time. Regardless of the doctrine, employers cannot discriminate or fire someone for reasons
such as age, race, religion, gender, national origin, disability, or childbearing plans. In addition
they cannot fire employees for whistle-blowing, jury service, etc.
Diff: 1
retirement?
29
72) Ricardo supervises a group of computer programmers. One of his employees, Natalia,
frequently tells him about another employee's tardiness and penchant for two-hour lunches. After
a few months, Ricardo fires this employee based on Natalia's information. Because Ricardo can
back up his accusations with Natalia's statements, he is guaranteed to be protected in a wrongful
discharge lawsuit.
Answer: FALSE
Explanation: Courts have sided with terminated employees when not enough evidence of poor
behavior is brought forth. Hearsay and rumors do not stand up in legal proceedings. Ricardo
should have maintained solid records with documentation and evidence.
Diff: 2
retirement?
73) Why would an employee seek a promotion?

Answer: Promotions offer employees increased levels of responsibility by taking on a job with
more challenging tasks and a higher stature and pay rate in the company.
Diff: 1
retirement?
74) Marc is not interested in taking on supervisory responsibilities. How can his company
"promote" him?
Answer: Some companies provide two career paths for their employees–one towards
Diff: 1
retirement?
75) Charles is nearing 70 years old but is not yet ready to retire from his job. What reasons might
Charles cite for his decision?
Answer: Charles may have postponed retirement to stay financially secure or stay on their
company's health plans, or to stay active and engaged.
Diff: 2
retirement?
30
76) Mary Lee's company is terminating employees to reduce the size of its workforce. She is
confused and asks the HR director to explain why this is happening. What reasons might the HR
director give Mary Lee?
Answer: The HR director may cite downsizing and restructuring, outsourcing and offshoring,
pressures of global competition, and increased use of technology.
Diff: 2
retirement?
77) Which of the following is NOT a reason that diversity in the workplace has increased?
A) advancements in technology throughout the world
B) increased numbers of employees immigrating from other countries
C) increased laws mandating hiring of employees of different ethnicities
D) increased offshoring of work to other countries
E) increased number of women entering the workforce
Answer: C
Explanation: C) Diversity is becoming more important as companies are operating on a global
scale. Reasons for a more diverse workforce include advancements in technologies, increased
offshoring of work to other countries, and the increased number of workers who have
immigrated from other countries.
Diff: 2
LO: 9.5: How does incorporating diversity affect the workforce?
31
78) Raheem works in the IT department of a large investment firm. His employer is very
conscious of Raheem's religious needs and has been most accommodating. Which of the
following is something Raheem's employer likely does NOT provide?
A) allowance for differences in dress
B) financial assistance for religious pilgrimages
C) time off to observe religious holidays
D) cafeteria selections meeting dietary requirements
E) permission to take prayer breaks during the workday
Answer: B
Explanation: B) A more culturally diverse workforce brings with it a wider variety of religious
beliefs and practices. Employers are struggling to accommodate workers' religious needs, but
also to prevent any friction from open demonstrations of religious practices. Many employers
allow employees to take prayer breaks, take time off to observe religious holidays, cater to
dietary requirements, and permit differences in dress.
Diff: 2
79) Veronica is reentering the workforce after years away caring for her elderly parents. She is
making many assumptions about today's workplace. Which of Veronica's assumptions is
FALSE?
A) Women may face sexual harassment in the workplace.
B) Women receive fewer promotions than their male counterparts.
C) Women battle sexism in the workplace.
D) Women receive pay equal to their male counterparts.
E) The number of women in the workforce is growing.
Answer: D
Explanation: D) Even though more women are entering the workforce than ever before, they are
still experiencing sexism, salary inequities, and sexual harassment. Statistically, there are fewer
female executives than is expected given the number of women in the workforce and women
have been given fewer promotions than their male counterparts.
Diff: 2
32
80) Greg is 57 years old and is looking for a new job even though he knows many companies
prefer not to hire older workers. Which of the following is likely a disadvantage of hiring Greg?
A) higher absenteeism
B) expectation of a fairly high salary
C) unwillingness to learn new skills
D) lower training costs
E) higher turnover rate
Answer: B
Explanation: B) Older employees tend to expect higher salaries and better benefits than younger
workers. However, they have lower turnover and absenteeism, lower training costs, and a
willingness to learn new skills.
Diff: 2
81) Barney is an HR manager and would like to see a more diversified workforce at his
company. He decides the best way to do this is to follow a plan that requires the company to
employ a certain number of minorities and women. This plan is otherwise known as ________.
A) affirmative action
B) diverse affirmation
C) employment at will
D) workforce profiling
E) diversity training
Answer: A
Explanation: A) Affirmative action plans set out target employment numbers for women and
minorities. They were once used to fulfill diversity requirements, but they are no longer seen as
the optimal method.
Diff: 2
82) Worldwide Technologies, Inc. has moved its customer service operations to India. In
addition to lowering its labor costs, Worldwide also is diversifying its workforce.
Answer: TRUE
Explanation: Advancements in technologies have made it possible for businesses to operate with
relative ease on a global basis. Companies that offshore work to other countries also lower their
labor costs and broaden their market reach.
Diff: 1
33
83) Ester is reentering the workforce after spending several years at home caring for her children.
Because many things have changed since Ester last worked in an office, it is nearly impossible
for her to experience any problems with sexism or salary inequities.
Answer: FALSE
Explanation: Even though more women are entering the workforce than ever before, they are
still experiencing sexism, salary inequities, and sexual harassment.
Diff: 1
84) Archie is a new HR manager and knows that a diverse workforce can benefit his company.
The best way for Archie to create a motivated, diverse staff is to follow an affirmative action
plan that prescribes a certain number of minorities and women.
Answer: FALSE
Explanation: While affirmative action plans were once used to fulfill diversity requirements,
they are no longer the optimal method. Companies now embrace diversity as a strategy and
resource to become more competitive in the global market. It is a means to improve a company's
competitiveness and its bottom line.
Diff: 2
85) Global Tech is a new company with a diverse workforce. To avoid potential conflicts or
misunderstandings, Global Tech should provide an effective diversity training program for its
employees so that they can all learn to view situations from a perspective that is different from
their own.
Answer: TRUE
Explanation: Diversity training programs are an important part of managing a diverse
workforce. They help alleviate confusion and misunderstandings that arise from differences in
opinions, viewpoints, and behaviors.
Diff: 2
34
86) Abe is a very religious man and, in today's world, expects his employer to accommodate his
needs. What are some things his employer might offer him?
Answer: Abe's employer may allow him to take prayer breaks and to take time off to observe
religious holidays. It also may cater to his dietary requirements and permit differences in dress.
Diff: 2
87) What concerns do women face in today's workforce?

Answer: Even though more women are entering the workforce than ever before, they are still
experiencing sexism, salary inequities, and sexual harassment. Historically, women in similar
positions as their male counterparts were paid less and experienced fewer promotions, despite
documented higher performance ratings. Many gender-discrimination and sexual harassment
lawsuits continue to receive national press and indicate that gender-related challenges have not
gone away.
Diff: 2
88) Edith is an older worker who has no interest in retiring. What benefits does the company
expect from Edith's employment? What disadvantages?
Answer: Older workers generally have lower turnover and absenteeism, and are willing to learn
new skills as well as help train their younger coworkers. However they tend to expect higher
salaries and better benefits than younger workers.
Diff: 2
89) Why is a diverse workforce beneficial?

Answer: A diverse workforce has proven to be more creative and innovative. A diverse
workforce helps companies offer a broad range of viewpoints that are necessary to compete in a
world that is more globalized.
Diff: 2
35
90) The California Nurses Association was formed to negotiate the unique salary needs and
working hour structures of direct-care nurses with the hospitals in which they work. The CNA is
an example of a ________.
A) special interest group
B) labor union
C) workforce profile
D) strikebreaker
E) diversification
Answer: B
Explanation: B) A labor union is a legally recognized group dedicated to protecting the interests
of workers. They negotiate employment issues, such as salary, benefits, and working hours.
Diff: 1
LO: 9.6: What are the objectives, structures, and future of labor unions in the global business
environment?
91) Orson works with a group of employees who would like to form a union. Orson and a
majority of his coworkers band together to form a group responsible for negotiating better
working conditions or pay. Orson and his coworkers formed ________.
A) a strikebreakers unit
B) a mediation unit
C) a bargaining unit
D) an arbitration unit
E) a craft group
Answer: C
Explanation: C) To form a union, a majority of workers can form a bargaining unit, which is
then responsible for negotiating with employers for better working conditions or pay.
Diff: 2
environment?
36
92) When Firefighters Local 48 negotiates directly and only with its employers for better work
conditions and terms of employment so that each firefighter doesn't need to negotiate
individually, it is called ________.
A) united mediation
B) collaborative arbitration
C) common striking
D) collective bargaining
E) boycotting
Answer: D
Explanation: D) Collective bargaining involves negotiations between union representatives and
employers over better work conditions and terms of employment. The result may be a collective
bargaining agreement, which is binding to management.
Diff: 2
environment?
93) When union and management come to an impasse, Sarah works as a neutral third party who
assists them privately and collectively to identify issues and to develop proposals for resolution
so that they can reach an agreement. This process is known as ________.
A) collective bargaining
B) mediation
C) arbitration
D) strikebreaking
E) a lockout
Answer: B
Explanation: B) Mediation is a process that involves a neutral third party that assists two parties
both privately and collectively to identify issues and to develop proposals for resolution.
Diff: 2
environment?
37
94) When union and management come to an impasse, sometimes the dispute is sent to a third
party for a decision. This process is known as ________.
A) collective bargaining
B) mediation
C) arbitration
D) strikebreaking
E) a lockout
Answer: C
Explanation: C) In arbitration, the dispute is sent to an arbitrator for a decision. The parties
agree in advance if the decision is binding or nonbinding.
Diff: 1
environment?
95) Recently, negotiations between a grocery store union and their employer broke down. The
employees staged an organized effort to encourage their supporters to shop for groceries
elsewhere. The employees organized a ________.
A) boycott
B) lockout
C) strike
D) picket
E) collective bargain
Answer: A
Explanation: A) In a boycott, unions and their supporters refuse to buy or handle the company's
products or services in an effort to prompt management to accept union demands.
Diff: 2
environment?
38
96) Recently, negotiations between a local housepainters union and their employer came to an
impasse. The employer felt he had a legitimate position in the negotiations and refused to allow
union member painters from entering the premises. This is called a ________.
A) boycott
B) lockout
C) strike
D) picket
E) strikebreaker
Answer: B
Explanation: B) In a lockout, management refuses to allow union members from entering the
premises. Lockouts are legal only if negotiations have come to an impasse and if the company is
defending a legitimate position.
Diff: 2
environment?
97) As a last resort, union workers may choose to ________ and agree to stop working. These
actions gain considerable media publicity, especially when the workers ________ by walking
outside the workplace with signs that reflect employee grievances.
A) picket; strike
B) strike; picket
C) boycott; picket
D) lockout; boycott
E) strike; boycott
Answer: B
Explanation: B) When negotiations break down, workers may decide to strike, or to stop
working. If they walk outside the workplace carrying signs displaying their grievances, they are
picketing.
Diff: 1
environment?
39
98) When plumbers from a local union stopped working during negotiations, management hired
replacement plumbers so the effects on their business would be lessened. These replacement
plumbers are called ________.
A) mediators
B) arbitrators
C) collective bargainers
D) strikebreakers
E) picketers
Answer: D
Explanation: D) Strikebreakers are replacement personnel hired by management when union
employees are striking.
Diff: 1
environment?
99) Labor unions originated during the U.S. Industrial Revolution.

Answer: TRUE
Explanation: Labor unions began as a means to protect workers from the injustices employers
inflicted on them in the 19th century during the U.S. Industrial Revolution.
Diff: 1
environment?
100) A labor union seeks to protect members from unfair labor practices and poor working
conditions.
Answer: TRUE
Explanation: A labor union is a legally recognized group dedicated to protecting the interests of
workers. They negotiate employment issues, such as salary, benefits, and working hours.
Diff: 2
environment?
40
101) Union representatives for the employees of a regional grocery store chain decide to
negotiate with management for better hourly wages and better medical benefits. After a few
meetings, they come to an agreement, which is called an arbitration.
Answer: FALSE
Explanation: Collective bargaining is the process whereby management and union
representatives negotiate such things as wages, benefits, working hours, and grievance
procedures. A collective bargaining agreement is the result of such negotiations. Arbitration is
when a third party hears both sides and provides a solution (binding or non-binding).
Diff: 2
environment?
102) The managers of a roofing company start hearing their employees talk about approaching
their local union representatives with concerns about working hours. Management legally can
use a lockout to keep these employees from entering the premises.
Answer: FALSE
Explanation: Management legally can use a lockout only if negotiations with a union have come
to an impasse and the company is defending a legitimate position.
Diff: 2
environment?
103) Both the automobile workers union and the construction trade unions have experienced
dramatic reductions in membership in recent years.
Answer: TRUE
Explanation: In the United States, the role of the labor union is declining. Many private sector
unions have experienced dramatic reductions in membership.
Diff: 1
environment?
104) The Screen Actors Guild protects the interests of film and television performers. SAG is an
example of what kind of organization? What kinds of things do they do?
Answer: SAG is an example of a labor union, which is a legally recognized group dedicated to
protecting the interests of workers. They typically negotiate issues such as salary, health benefits,
and work hours.
Diff: 2
environment?
41
105) What is collective bargaining?
Answer: Collective bargaining involves negotiations between union representatives and
employers over better work conditions and terms of employment. The result is a collective
bargaining agreement.
Diff: 1
environment?
106) If the union and management cannot reach an agreement through collective bargaining,
what options exist to bring the sides to agreement?
Answer: Mediation is a process that involves a neutral third party who assists two parties both
privately and collectively to identify issues and to develop proposals for resolution. Arbitration is
another option. In arbitration, the dispute is sent to an arbitrator for a decision. The parties agree
in advance if the decision is binding or nonbinding.
Diff: 1
environment?
107) What kinds of things happen when negotiations break down?

Answer: When negotiations break down, workers may decide to strike, or to stop working. If
they walk outside the workplace carrying signs displaying their grievances, they are picketing.
They may also boycott, in which unions and their supporters refuse to buy or handle the
company's products or services in an effort to prompt management to accept union demands. A
lockout is also possible. In a lockout, management refuses to allow union members to enter the
premises. Lockouts are legal only if negotiations have come to an impasse and if the company is
defending a legitimate position.
Diff: 2
environment?
42

Better Business 4th Edition Solomon Test Bank

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Better Business 4th Edition Solomon Test Bank

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Better Business 4th Edition Solomon

16) What are the functions of human resource management (HRM)?

20) Define the steps in the HR activity of hiring.

46) Which of the following is also known as a "cafeteria plan?"

61) What are work/life benefits? Give some examples.

73) Why would an employee seek a promotion?

87) What concerns do women face in today's workforce?

89) Why is a diverse workforce beneficial?

99) Labor unions originated during the U.S. Industrial Revolution.

107) What kinds of things happen when negotiations break down?

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