Business

Chapter 12 - Human Resource Management
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. Managers use recruitment and selection, the second component of an HRM system, to
attract and hire new employees who have the abilities, skills, and experiences that will help an
organization achieve its goals.
True False
4. Effectively managing human resources helps ensure that customers are satisfied and loyal.
True False
5. Title VII of the Civil Rights Act prohibits discrimination in hiring, on the basis of sexual
orientation.
True False
6. The activities in which managers engage in order to create a pool of qualified candidates
for a position are known collectively as the selection process.
True False
12-1
7. The process by which managers decide on the relative qualifications of job applicants for a
particular job opening is known as the selection process.
True False
8. Simpson Lumber Company estimates the number of workers it will need to harvest the
timber it believes it will sell this spring. This is known as a demand forecast.
True False
9. As a part of its human resource planning process, RST Consulting estimates the
qualifications of all current employees as well as the qualifications of the available workers in
the external job market. RST Consulting is conducting a supply forecast.
True False
10. Instead of hiring an accountant, Johnson and Stevenson LLC decided to contract with a
local accounting firm for their tax accounting needs. The process is known as off shoring.
True False
11. Two reasons why human resource planning sometimes leads managers to outsource are
speed and quality.
True False
12. The PAQ is an instrument that helps managers conduct job analyses.
True False
13. After managers have completed the job analyses for all jobs in an organization, they will
know what knowledge, skills, and abilities potential employees need to perform those jobs.
True False
12-2
14. Both the external and internal recruiting processes are now supplemented by recruiting
over the Internet.
True False
15. One of the primary advantages of external recruiting is its relatively low cost.
True False
16. Recruitment is more successful when managers only stress the advantages of the
organization to the potential applicant.
True False
17. In general, unstructured interviews are superior to structured interviews because they are
more likely to yield information that will help identify qualified candidates.
True False
18. Today, many organizations are using multiple interviewers in order to avoid individual
idiosyncrasies and biases.
True False
19. Personality tests assess the degree to which job applicants have the necessary skills for
successful job performance.
True False
20. Ability tests assess the extent to which applicants possess the skills necessary for job
performance, such as verbal comprehension or numerical skills.
True False
12-3
21. Former employers usually provide both positive and negative information about an
applicant.
True False
22. Managers have an ethical and legal obligation to use reliable and valid selection tools.
True False
23. If the same job applicant takes the same test on two different days and receives different
but approximately the same score, this test is unreliable.
True False
24. The degree to which a test measures what it is supposed to measure is known as the
validity of the test.
True False
25. The purpose of training activities within an organization is to build the knowledge and
skills of organizational members so they are prepared to take on new responsibilities and
challenges.
True False
26. The purpose of development activities within organizations is to teach current employees
new skills so they can be better prepared to take on new responsibilities within the
organization.
True False
27. 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
12-4
28. Managers can use the performance appraisal system to determine which workers are
candidates for training and development.
True False
29. The process by which managers share performance appraisal information with their
subordinates is known as performance feedback.
True False
30. Performance feedback must take place prior to the performance appraisal.
True False
31. During his performance appraisal, Brad was assessed on his ability to use the equipment
and his knowledge of the job. Brad's manager was performing a trait appraisal.
True False
32. Trait appraisals are often used because they enable managers to give employees feedback
they can use to improve performance.
True False
33. 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.
True False
34. Employee pay is based on membership in an organization and not necessarily on the
particular job held.
True False
12-5
35. A low pay level may be worth pursuing for an organization whose competitive advantage
lies in superior quality and excellent customer service.
True False
36. Employers are required to provide workers' compensation benefits to their employees, but
not unemployment insurance.
True False
37. Unions exist solely to represent workers' interests in organizations.

True False
38. The percentage of U.S. workers represented by unions is smaller than it was in the 1950s.
True False
Multiple Choice Questions
39. The component of an HRM system that focuses on attempting to attract and to hire
employees who have the abilities and experiences to help the organization to achieve its goals
is known as:
A. Training
B. Development
C. Recruitment and selection
D. Performance appraisal
E. Feedback
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40. Microsoft Corporation interviews dozens of highly qualified programmers before deciding
on which ones to hire. This is an example of which component of the HRM process?
A. Training
B. Development
E. Performance feedback
41. Managers at Mayflower Manufacturing focus on teaching their subordinates the most
efficient and effective way to utilize the equipment. What component of the HRM system is
Mayflower Manufacturing utilizing?
A. Training and development
B. Recruitment
C. Selection
E. Feedback
42. When pay is linked to performance, __________ employees are more likely to stay with
the organization and managers are __________ likely to be able to fill open positions with
highly talented employees.
A. high-performing; less
B. high-performing; more
C. low-performing; less
D. low-performing; more
E. pay-for-performance is not linked to either turnover or hiring.
43. Newly-hired programmers at Microsoft Corporation join small work teams so that
experienced workers can serve as mentors to them while they are adjusting to their new job.
This is an example of which component of the HRM process?
A. Recruitment
B. Selection
C. Performance appraisal
D. Performance feedback
E. Training and development
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44. In the U.S., which of the following laws requires male and female employees to be paid
equally if they perform "equal work?"
A. Title VII of the Civil Rights Act
B. Age Discrimination in Employment Act
C. Americans with Disabilities Act
D. Equal Pay Act
E. Pregnancy Discrimination Act
45. Family and Medical Leave Act requires that employers provide ______ of unpaid leave
for medical and family reasons.
A. 12 weeks
B. 1 month
C. 3 week
D. 6 months
E. 6 weeks
46. The set of activities in which managers engage to develop a pool of qualified candidates
for open positions is known as:
A. Selection
B. Performance appraisal
C. Feedback
D. Recruitment
E. Training
47. The process by which managers decide the relative qualifications of job applicants for an
open position is known as:
A. Training
B. Selection
C. Development
E. Feedback
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48. At the beginning of each fiscal year, Bob goes through various activities to forecast his
current and future human resource needs. Bob is engaged in:
A. Performance appraisal
B. Human resource development
C. Human resource planning
D. Recruitment
E. Selection
49. When managers estimate the qualifications and numbers of employees an organization
will need given its goals and strategies, they are engaged in:
A. Supply forecasting
B. Recruitment
C. Selection
D. Demand forecasting
E. Development
50. As a part of its human resource planning process, RST Consulting estimates the
the external job market. RST Consulting is conducting a(n):
A. Demand forecasting
B. Supply forecasting
C. Training
D. Development
E. Outsourcing
51. Instead of hiring an accountant, Johnson and Stevenson LLC decided to contract with a
local accounting firm for their tax accounting needs. The process is known as:
A. A lateral transfer
B. An RJP
C. Outsourcing
D. Off shoring
E. Placement
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52. When her current secretary left, Josephine hired a temp from an employment agency,
instead of hiring a new permanent secretary. This is an example of:
A. Outsourcing
B. On-the-job training
C. A 360-degree appraisal
D. An RJP
E. Training
53. 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 known as:
A. A job description
B. A job specification
C. A job development
D. A job appraisal
E. A job analysis
54. A written summary of the knowledge, skills, and abilities that are needed to perform a
specific job is known as:
A. A job design
B. A performance appraisal
C. A job analysis
D. The job specifications
E. A statement of goals
55. The tasks, duties, and responsibilities that make up a job are known as the:
A. Job description
B. Job development
C. Job analysis
D. Job specification
E. Performance plan
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56. Recruiting outside of an organization to find workers who have not worked for the
organization previously is known as:
A. Internal recruiting
B. Walk-in recruiting
C. External recruiting
D. Selection
E. Modified recruiting
57. All of the following are advantages to external recruiting EXCEPT:

A. Larger applicant pool
B. Newcomers with a fresh approach
C. Attract new knowledge, skills, and abilities
D. Less expensive
E. Newcomers who understand the latest technology
58. When managers attempt to fill open positions with workers who are already working for
the organization in some other capacity, they are engaging in:
A. Development
B. External recruiting
C. Walk-in recruiting
D. Outsourcing
E. Internal recruiting
59. When an employee changes jobs within the organization and moves to another job at the
same level without any major changes in authority or responsibility, this is known as:
A. Promotion
B. A lateral move
C. Outsourcing
D. External recruiting
E. Performance appraisal
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60. When Joe was looking to fill a vacancy on his shift, he made sure to tell all potential
applicants about the advantages of the position as well as the potential dangers associated
with the position. Joe's assessment of the position is referred to as:
A. MBO
B. EEO
C. EEOC
D. RJP
E. MRP
61. When a manager studies the resume of a job applicant to evaluate the work history and
education of the applicant, this is known as the process of:
A. Interviewing
B. Selection
C. Gathering background information
D. Situational interviewing
E. Reference-checking
62. An organization requires all job applicants to complete an application that asks them to
list their college degrees. On which aspect of the HRM process is this organization focusing?
A. Interviewing
B. Paper-and-pencil testing
C. Personality assessment
D. Background information
63. An organization requires all job applicants to complete an application that asks for the
number of years of their work experience and the types of positions they have held. On which
aspect of the HRM process is this organization focusing?
A. Reference-checking
B. Interviewing
C. Paper-and-pencil testing
D. Personality testing
E. Background information
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64. During the interview process, Tim deliberately asked all the applicants the same set of
questions. What type of interview did Tim use?
A. Unstructured
B. Situational
C. Role-playing
D. Structured
E. Ad hoc
65. All of the job applicants for a sales position are asked: "What would you do when a
customer complains that it takes too long to receive service?" What type of interview is being
used?
A. Unstructured
B. Situational
C. Personality
D. Ad hoc
E. Impromptu
66. When Mary went in for her job interview, the process seemed more like a conversation
without a fixed set of questions. What type of interview did Mary experience?
A. Situational
B. Unstructured
C. Ad hoc
D. Impromptu
E. Structured
67. When managers present a job applicant with a situation that is likely to occur on the job
and ask the applicant what he or she would do in such a situation, this is known as:
A. An unstructured interview
B. Recruiting
C. A situational interview
D. Gathering background information
E. Development
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68. A manager interviews a series of job applicants and asks each applicant whatever he feels
like asking without trying to ask all of the applicants the same questions. This is known as:
A. A structured interview
B. A realistic job preview
C. An unstructured interview
D. A situational interview
E. Training
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 did Mark take?
A. Paper-and-pencil tests
B. Personality tests
C. Structured tests
D. Performance tests
E. Ability tests
70. Tests that measure the personal characteristics of job applicants that are relevant to
successful performance on the job are known as:
A. Ability tests
B. Physical tests
C. Paper-and-pencil tests
D. Personality tests
E. Performance tests
71. Ford Motor Co. tests applicants for assembly-line positions to determine their reading and
mathematical skills in order to determine if they have the mental abilities necessary to do
these types of jobs. What type of screening procedure is being used?
A. Personality tests
B. Ability tests
C. Situational tests
D. Unstructured tests
E. Ad hoc tests
12-14
72. Chrysler Corp. tests applicants for autoworker positions on their mechanical dexterity in
an attempt to determine if they have the capability of performing an assembly-line job. This is
an example of:
A. Physical ability testing
B. Personality testing
C. Situational testing
D. Unstructured testing
E. Role-play testing
73. Before he was offered the job with ExpressFed, Adam had to take a test to prove his
ability to lift over 50 pounds. This is an example of a:
D. Paper and pencil testing
74. Tests that measure a job applicant's performance on actual tasks of the job are known as:
A. Physical ability tests
B. Paper-and-pencil tests
C. Personality tests
75. After a lengthy job interview, Eva had to demonstrate her secretarial skills by taking a
typing test. The typing test is a type of:
A. Physical ability test
B. Paper-and-pencil test
C. Personality test
D. Performance test
E. Aptitude test
12-15
76. Prior to being offered a top-level managerial position with OceanReef Consulting, Scott
had to spend a few days at an assessment center where he was evaluated on his problemsolving, organizational, communication, and conflict resolution skills. This is an example of:
A. A personality test
B. A physical ability test
C. A role-play test
D. A performance test
E. An ad hoc test
77. Eva requests that her college professor and advisor write a letter to a prospective employer
commenting on her classroom performance. This is part of:
B. Recruiting
C. Training
D. Development
E. Feedback
78. The degree to which a test generates a similar score each time it is administered to a job
applicant is known as the __________ of the test.
A. validity
B. compatibility
C. rjp
D. reliability
E. capability
79. The degree to which a test measures what it is supposed to measure is called the
__________ of the test.
A. reliability
B. validity
C. rjp
D. compatibility
E. capability
12-16
80. A manager attempting to select a test for a job applicant that will be a good predictor of
the applicant's performance on the job if hired should be primarily concerned with the
__________ of the test.
A. validity
B. capability
C. reliability
D. compatibility
E. consistency
81. An HR manager asks about a manual-dexterity test that has been used to select automobile
assembly-line workers "Does this test predict on-the-job performance for these types of
workers?" On which aspect of the HRM process is this manager focusing?
A. Reliability
B. Performance
C. Validity
D. Capability
E. Compatibility
82. Before creating training and development programs, managers should perform a ______
to determine which employees need training or development and what type of skills or
knowledge they need to acquire.
A. job validation
B. job analysis
C. job assessment
D. needs assessment
E. job design
83. What focuses primarily on teaching organizational members how to perform their current
jobs and helping them acquire the knowledge and skills they need to be effective performers?
A. Mentoring
B. Training
C. Development
D. Formal education
E. Varied work experience
12-17
84. What focuses on building the knowledge and skills of organizational members so they are
prepared to take on new responsibilities and challenges?
A. On-the-job training
B. Training
C. Development
D. Classroom instruction
E. Role-playing
85. An employee learns how to do her job as the result of actually performing the tasks. This
is known as:
A. Simulation
B. Mentoring
C. On-the-job training
E. Role-playing
86. What type of development broadens employees' horizons and help them think about the
big picture by exposing them to a wide variety of different job experiences, some in line
positions and some in staff positions?
A. Varied work experiences
B. Formal education
D. Role-playing
E. Simulation
87. MissouriBank provides a tuition reimbursement program to its employees. This is an

example of:
A. Mentoring
B. Training
C. Formal education
D. Development
E. Informal education
12-18
88. A manager evaluates a subordinate's job performance and her contributions to the
organization. This is known as the process of:
A. Performance testing
B. Performance feedback
D. Training
E. On-the-job training
89. The process by which a manager shares performance appraisal information with a
subordinate and develops a plan for the future development of that subordinate is known as:
A. Training
B. Selection
C. Performance feedback
D. Recruitment
E. Performance review
90. A manager assesses a subordinate on personal characteristics that are relevant to the job
performance of that subordinate. This is known as:
A. Selection
B. Trait appraisal
C. Recruitment
D. Ability testing
E. Simulation
91. All the following are disadvantages of trait appraisals EXCEPT:

A. Cause managers to rely on other appraisals
B. Personal characteristics may not lead to high performance
C. Do not allow the manager to give feedback
D. Ratings may be viewed as discriminatory
E. Expensive to administer
12-19
92. ______ appraisals assess what workers are like, ______ appraisals assess what workers
do.
A. trait; results
B. behavior; results
C. trait; behavior
D. results; behavior
E. behavior; trait
93. If a manager is more concerned with what an employee accomplishes, the manager may
use a:
A. Results appraisal
B. Trait appraisal
C. Behavior appraisal
D. Structured appraisal
E. Situational appraisal
94. A sales manager for a Ford Motor Co. dealer evaluates each one of his sales staff monthly
on the basis of the number of new cars sold during the past month. This is an example of:
A. A subjective appraisal
B. Situational testing
C. Personality testing
D. Ability testing
E. An objective appraisal
95. A manager for an accounting firm evaluates each accounts supervisor monthly on the
basis of the number of customer audits completed during that month. This is an example of:
C. An objective appraisal
D. An ability appraisal
E. Behavioral evaluation
12-20
96. An appraisal based on managers' perceptions of traits, behaviors, or results always has a
chance of being inaccurate, and is called:
A. Subjective
B. Situational
C. Objective
D. Ability
E. Behavioral
97. Pat, a supervisor, evaluates the performance of his subordinates on scales on a form
provided by the Human Resources department. The scales ask Pat to rate the performance of a
nurse on "following doctors' orders" from "almost never" to "almost always". Pat's
organization is using:
A. GRS
B. BARS
C. BOS
D. Objective evaluations
E. 360 degree feedback
98. 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 peers. What type of
performance evaluation did Scott's manager use?
A. BARS
B. BOS
C. Graphic rating scale
D. Quantity of results
E. 360-degree appraisal
99. 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 is known as:
A. Pay level
B. Pay structure
C. Pay grid
D. Pay range
E. Pay policy
12-21
100. An employee's pay within job categories is determined by factors such as:
A. Performance only
B. Seniority only
C. Skill level only
D. Performance and skill level but not seniority
E. Performance, skill level and seniority
101. The arrangement of jobs into categories reflecting their relative importance to the
organization and its goals, level of skills required, and other characteristics is called:
A. Pay level
B. Pay structure
C. Job analysis
D. Benefit structure
E. Chain of command
102. Because not everybody's needs are the same, some organizations let employees pick and
choose the benefits they want. This is known as a:
A. HMO
B. Cafeteria style benefit plan
C. Flexible benefit plan
D. Fixed benefit plan
E. PPO
103. The activities managers engage in to ensure that they have effective working
relationships with the labor unions that represent their employees' interests are known as:
A. Labor negotiations
B. Labor relations
C. Conflict management
D. Conflict resolution
E. Collective bargaining
12-22
104. 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
105. 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. Labor relations
C. Conflict resolution
D. Collective bargaining
E. Strike
106. Which of the following is NOT usually a topic for collective bargaining?
A. Pay
B. Organizational strategy
C. Job security
D. Hours
E. Benefits
107. ___________ resolve union-management conflict after a ___________ has been filed.
A. mediators; contract
B. mediators; grievance
C. arbitrators; grievance
D. negotiators; contract
E. union representative; contract
Essay Questions
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108. Define strategic human resource management. State its objective.
109. Discuss the five major components of a human resource management system.
110. Discuss the reasons why managers outsource and then evaluate disadvantages of
outsourcing for the organization.
111. External recruiting of new managers has both advantages and disadvantages for the
organization. Discuss both the advantages and the disadvantages of external recruiting. When
is external recruiting better for organizations than internal? Defend your answer.
12-24
112. Discuss the importance of reliability and validity on the various selection techniques.
113. Differentiate between training and development. Provide two examples of each.
114. Discuss how performance appraisal and feedback contribute to the effective management
of human resources within an organization.
115. Trait appraisals have both advantages and disadvantages for the organization. Explain
what is meant by this term and discuss three disadvantages of this technique.
12-25
116. Differentiate between objective and subjective appraisals.
117. List five guidelines for giving effective performance feedback that contributes to
employee motivation and performance.
118. Discuss the relationship between pay levels and organizational strategy.
119. Discuss the collective bargaining process.
12-26
Chapter 12 Human Resource Management Answer Key
True / False Questions
1. (p. 391) 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
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: Reflective Thinking

Bloom's: Remember
Difficulty: Easy
Learning Objective: 12-01 Explain why strategic human resource management can help an organization gain a competitive advantage.
Topic: Human Resource Management
12-27
2. (p. 391) A human resource management system is a part of the organizational architecture that
managers develop to use resources efficiently and effectively.
TRUE
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.

Bloom's: Understand
Difficulty: Medium
3. (p. 392) Managers use recruitment and selection, the second component of an HRM system, to
attract and hire new employees who have the abilities, skills, and experiences that will help an
FALSE
Managers use recruitment and selection, the first component of an HRM system, to attract and
hire new employees who have the abilities, skills, and experiences that will help an

Bloom's: Understand
Difficulty: Medium
4. (p. 393) Effectively managing human resources helps ensure that customers are satisfied and
loyal.
TRUE
Effectively managing human resources helps ensure that both customers and employees are
satisfied and loyal.

Bloom's: Understand
Difficulty: Medium
12-28
5. (p. 395) Title VII of the Civil Rights Act prohibits discrimination in hiring, on the basis of
sexual orientation.
FALSE
Title VII of the Civil Rights Act prohibits employment discrimination on the basis of race,
religion, sex, color, or national origin; covers a wide range of employment decisions,
including hiring, firing, pay, promotion, and working conditions.

Bloom's: Remember
Difficulty: Medium
6. (p. 396) The activities in which managers engage in order to create a pool of qualified
candidates for a position are known collectively as the selection process.
FALSE
Recruitment includes all the activities managers engage in to develop a pool of qualified
candidates for open positions.

Bloom's: Remember
Difficulty: Medium
Learning Objective: 12-02 Describe the steps managers take to recruit and select organizational members.
Topic: Recruiting and Selection
7. (p. 396) The process by which managers decide on the relative qualifications of job applicants
for a particular job opening is known as the selection process.
TRUE
Selection is the process by which managers determine the relative qualifications of job
applicants and their potential for performing well in a particular job.

Bloom's: Remember
Difficulty: Easy
12-29
8. (p. 397) Simpson Lumber Company estimates the number of workers it will need to harvest
the timber it believes it will sell this spring. This is known as a demand forecast.
FALSE
Demand forecasts estimate the qualifications and numbers of employees an organization will
need given its goals and strategies.

Bloom's: Apply
Difficulty: Medium
9. (p. 397) As a part of its human resource planning process, RST Consulting estimates the
the external job market. RST Consulting is conducting a supply forecast.
TRUE
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.

Bloom's: Apply
Difficulty: Medium
10. (p. 397) Instead of hiring an accountant, Johnson and Stevenson LLC decided to contract
with a local accounting firm for their tax accounting needs. The process is known as off
shoring.
FALSE
Outsource is to use outside suppliers and manufacturers to produce goods and services.

Bloom's: Apply
Difficulty: Medium
12-30
11. (p. 397) Two reasons why human resource planning sometimes leads managers to outsource
are speed and quality.
FALSE
Two reasons why human resource planning sometimes leads managers to outsource are
flexibility and cost.

Bloom's: Remember
Difficulty: Medium
12. (p. 398) The PAQ is an instrument that helps managers conduct job analyses.
TRUE
The Position Analysis Questionnaire (PAQ) is a comprehensive standardized questionnaire
that many managers rely on to conduct job analyses.

Bloom's: Remember
Difficulty: Easy
13. (p. 398) After managers have completed the job analyses for all jobs in an organization, they
will know what knowledge, skills, and abilities potential employees need to perform those
jobs.
TRUE
After managers have completed human resource planning and job analyses for all jobs in an
organization, they will know what knowledge, skills, and abilities potential employees need to
perform those jobs.

Bloom's: Understand
Difficulty: Easy
12-31
14. (p. 398) Both the external and internal recruiting processes are now supplemented by
recruiting over the Internet.
TRUE
Organizations traditionally have used two main types of recruiting: external and internal,
which are now supplemented by recruiting over the Internet.

Bloom's: Understand
Difficulty: Medium
15. (p. 399) One of the primary advantages of external recruiting is its relatively low cost.
FALSE
These advantages have to be weighed against the disadvantages, including the relatively high
costs of external recruitment.

Bloom's: Understand
Difficulty: Medium
16. (p. 400) Recruitment is more successful when managers only stress the advantages of the
organization to the potential applicant.
FALSE
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.

Bloom's: Understand
Difficulty: Medium
12-32
17. (p. 402) In general, unstructured interviews are superior to structured interviews because they
are more likely to yield information that will help identify qualified candidates.
FALSE
In general, structured interviews are superior to unstructured interviews because they are more
likely to yield information that will help identify qualified candidates.

Bloom's: Understand
Difficulty: Medium
18. (p. 402) Today, many organizations are using multiple interviewers in order to avoid
individual idiosyncrasies and biases.
TRUE
Using multiple interviewers can be advantageous because their individual biases and
idiosyncrasies may cancel one another out.

Bloom's: Understand
Difficulty: Easy
19. (p. 403) Personality tests assess the degree to which job applicants have the necessary skills
for successful job performance.
FALSE
Personality tests measure personality traits and characteristics relevant to job performance.

Bloom's: Remember
Difficulty: Easy
12-33
20. (p. 403) Ability tests assess the extent to which applicants possess the skills necessary for job
TRUE
Ability tests assess the extent to which applicants possess the skills necessary for job

Bloom's: Remember
Difficulty: Easy
21. (p. 403) Former employers usually provide both positive and negative information about an
applicant.
FALSE
Yet the fact that many former employers are reluctant to provide negative information in
references sometimes makes it difficult to interpret what a reference is really saying about an
applicant.

Bloom's: Understand
Difficulty: Medium
22. (p. 404) Managers have an ethical and legal obligation to use reliable and valid selection
tools.
TRUE
Managers have an ethical and legal obligation to use reliable and valid selection tools.

Bloom's: Remember
Difficulty: Medium
12-34
23. (p. 404) If the same job applicant takes the same test on two different days and receives
different but approximately the same score, this test is unreliable.
FALSE
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.

Bloom's: Remember
Difficulty: Medium
24. (p. 404) The degree to which a test measures what it is supposed to measure is known as the
validity of the test.
TRUE
Validity is the degree to which a tool measures what it purports to measure.

Bloom's: Remember
Difficulty: Easy
25. (p. 404) The purpose of training activities within an organization is to build the knowledge
and skills of organizational members so they are prepared to take on new responsibilities and
challenges.
FALSE
Training focuses primarily on teaching organizational members how to perform their current
jobs and helping them acquire the knowledge and skills they need to be effective performers.

Bloom's: Remember
Difficulty: Medium
Learning Objective: 12-03 Discuss the training and development options that ensure organizational members can effectively perform their
jobs.
Topic: Training and Development
12-35
26. (p. 404) The purpose of development activities within organizations is to teach current
employees new skills so they can be better prepared to take on new responsibilities within the
organization.
TRUE
Development focuses on building the knowledge and skills of organizational members so they
are prepared to take on new responsibilities and challenges.

Bloom's: Remember
Difficulty: Medium
jobs.
27. (p. 404) 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.
FALSE
Training tends to be used more frequently at lower levels of an organization; development
tends to be used more frequently with professionals and managers.

Bloom's: Remember
Difficulty: Medium
jobs.
28. (p. 407) Managers can use the performance appraisal system to determine which workers are
candidates for training and development.
TRUE
Performance appraisal can also help managers determine which workers are candidates for
training and development and in what areas.

Bloom's: Understand
Difficulty: Medium
Learning Objective: 12-04 Explain why performance appraisal and feedback is such a crucial activity; and list the choices managers must
make in designing effective performance appraisal and feedback procedures.
Topic: Performance Appraisal
12-36
29. (p. 407) The process by which managers share performance appraisal information with their
subordinates is known as performance feedback.
TRUE
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.

Bloom's: Remember
Difficulty: Easy
30. (p. 407) Performance feedback must take place prior to the performance appraisal.
FALSE
Before performance feedback, performance appraisal must take place.

Bloom's: Understand
Difficulty: Easy
31. (p. 407) During his performance appraisal, Brad was assessed on his ability to use the
equipment and his knowledge of the job. Brad's manager was performing a trait appraisal.
TRUE
When trait appraisals are used, managers assess subordinates on personal characteristics that
are relevant to job performance, such as skills, abilities, or personality.

Bloom's: Apply
Difficulty: Hard
12-37
32. (p. 408) Trait appraisals are often used because they enable managers to give employees
feedback they can use to improve performance.
FALSE
The third disadvantage of trait appraisals is that they often do not enable managers to give
employees feedback they can use to improve performance.

Bloom's: Understand
Difficulty: Hard
33. (p. 408) 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.
TRUE
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.

Bloom's: Understand
Difficulty: Medium
34. (p. 413) Employee pay is based on membership in an organization and not necessarily on the
FALSE
Employee benefits are based on membership in an organization and not necessarily on the

Bloom's: Understand
Difficulty: Easy
Learning Objective: 12-05 Explain the issues managers face in determining levels of pay and benefits
Topic: Pay and Benefits
12-38
35. (p. 413) A low pay level may be worth pursuing for an organization whose competitive
advantage lies in superior quality and excellent customer service.
FALSE
A high pay level may be worth the added costs in an organization whose competitive
advantage lies in superior quality and excellent customer service.

Bloom's: Remember
Difficulty: Medium
36. (p. 415) Employers are required to provide workers' compensation benefits to their
employees, but not unemployment insurance.
FALSE
Organizations are legally required to provide certain benefits to their employees, including
workers' compensation, social security, and unemployment insurance.

Bloom's: Remember
Difficulty: Medium
37. (p. 417) Unions exist solely to represent workers' interests in organizations.
TRUE
Unions exist to represent workers' interests in organizations.

Bloom's: Remember
Difficulty: Easy
Learning Objective: 12-06 Understand the role that labor relations play in the effective management of human resources.
Topic: Labor Relations
12-39
38. (p. 418) The percentage of U.S. workers represented by unions is smaller than it was in the
1950s.
TRUE
The percentage of U.S. workers represented by unions today is smaller than it was in the
1950s, an era when unions were especially strong.

Bloom's: Remember
Difficulty: Easy
Multiple Choice Questions
39. (p. 392) The component of an HRM system that focuses on attempting to attract and to hire
employees who have the abilities and experiences to help the organization to achieve its goals
is known as:
A. Training
B. Development
E. Feedback

Bloom's: Understand
Difficulty: Medium
12-40
40. (p. 392) Microsoft Corporation interviews dozens of highly qualified programmers before
deciding on which ones to hire. This is an example of which component of the HRM
process?
A. Training
B. Development
E. Performance feedback

Bloom's: Apply
Difficulty: Medium
41. (p. 393) Managers at Mayflower Manufacturing focus on teaching their subordinates the
most efficient and effective way to utilize the equipment. What component of the HRM
system is Mayflower Manufacturing utilizing?
A. Training and development
B. Recruitment
C. Selection
E. Feedback
After recruiting and selecting employees, managers use the second component, training and
development, to ensure that organizational members develop the skills and abilities that will
enable them to perform their jobs effectively in the present and the future.

Bloom's: Apply
Difficulty: Easy
12-41
42. (p. 393) When pay is linked to performance, __________ employees are more likely to stay
with the organization and managers are __________ likely to be able to fill open positions
with highly talented employees.
A. high-performing; less
B. high-performing; more
C. low-performing; less
D. low-performing; more
E. pay-for-performance is not linked to either turnover or hiring.
Moreover, if pay is linked to performance, high-performing employees are more likely to stay
with the organization, and managers are more likely to fill positions that become open with
highly talented individuals.

Bloom's: Understand
Difficulty: Hard
43. (p. 393) Newly-hired programmers at Microsoft Corporation join small work teams so that
experienced workers can serve as mentors to them while they are adjusting to their new job.
This is an example of which component of the HRM process?
A. Recruitment
B. Selection
D. Performance feedback
E. Training and development
After recruiting and selecting employees, managers use the second component, training and
development, to ensure that organizational members develop the skills and abilities that will
enable them to perform their jobs effectively in the present and the future.

Bloom's: Apply
Difficulty: Medium
12-42
44. (p. 395) In the U.S., which of the following laws requires male and female employees to be
paid equally if they perform "equal work?"
A. Title VII of the Civil Rights Act
B. Age Discrimination in Employment Act
C. Americans with Disabilities Act
D. Equal Pay Act
E. Pregnancy Discrimination Act
Equal Pay Act requires that men and women be paid equally if they are performing equal
work.

Bloom's: Remember
Difficulty: Easy
45. (p. 395) Family and Medical Leave Act requires that employers provide ______ of unpaid
leave for medical and family reasons.
A. 12 weeks
B. 1 month
C. 3 week
D. 6 months
E. 6 weeks
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.

Bloom's: Remember
Difficulty: Medium
12-43
46. (p. 396) The set of activities in which managers engage to develop a pool of qualified
candidates for open positions is known as:
A. Selection
B. Performance appraisal
C. Feedback
D. Recruitment
E. Training
Recruitment includes all the activities managers engage in to develop a pool of qualified
candidates for open positions.

Bloom's: Remember
Difficulty: Easy
47. (p. 396) The process by which managers decide the relative qualifications of job applicants
for an open position is known as:
A. Training
B. Selection
C. Development
E. Feedback

Bloom's: Remember
Difficulty: Easy
12-44
48. (p. 396) At the beginning of each fiscal year, Bob goes through various activities to forecast
his current and future human resource needs. Bob is engaged in:
A. Performance appraisal
B. Human resource development
C. Human resource planning
D. Recruitment
E. Selection
Human resource planning includes all the activities managers engage in to forecast their
current and future human resource needs.

Bloom's: Apply
Difficulty: Easy
49. (p. 397) When managers estimate the qualifications and numbers of employees an
organization will need given its goals and strategies, they are engaged in:
A. Supply forecasting
B. Recruitment
C. Selection
D. Demand forecasting
E. Development
Demand forecasts estimate the qualifications and numbers of employees an organization will
need given its goals and strategies.

Bloom's: Remember
Difficulty: Easy
12-45
50. (p. 397) As a part of its human resource planning process, RST Consulting estimates the
the external job market. RST Consulting is conducting a(n):
A. Demand forecasting
B. Supply forecasting
C. Training
D. Development
E. Outsourcing
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.

Bloom's: Apply
Difficulty: Medium
51. (p. 397) Instead of hiring an accountant, Johnson and Stevenson LLC decided to contract
with a local accounting firm for their tax accounting needs. The process is known as:
A. A lateral transfer
B. An RJP
C. Outsourcing
D. Off shoring
E. Placement

Bloom's: Apply
Difficulty: Easy
12-46
52. (p. 397) When her current secretary left, Josephine hired a temp from an employment
agency, instead of hiring a new permanent secretary. This is an example of:
A. Outsourcing
B. On-the-job training
C. A 360-degree appraisal
D. An RJP
E. Training

Bloom's: Apply
Difficulty: Easy
53. (p. 398) 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 known as:
A. A job description
B. A job specification
C. A job development
D. A job appraisal
E. A job analysis
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).

Bloom's: Remember
Difficulty: Medium
12-47
54. (p. 398) A written summary of the knowledge, skills, and abilities that are needed to perform
a specific job is known as:
A. A job design
B. A performance appraisal
C. A job analysis
D. The job specifications
E. A statement of goals

Bloom's: Remember
Difficulty: Easy
55. (p. 398) The tasks, duties, and responsibilities that make up a job are known as the:
A. Job description
B. Job development
C. Job analysis
D. Job specification
E. Performance plan

Bloom's: Remember
Difficulty: Easy
12-48
56. (p. 398) Recruiting outside of an organization to find workers who have not worked for the
organization previously is known as:
A. Internal recruiting
B. Walk-in recruiting
C. External recruiting
D. Selection
E. Modified recruiting
When managers recruit externally to fill open positions, they look outside the organization for
people who have not worked for the organization previously.

Bloom's: Remember
Difficulty: Easy
57. (p. 399) All of the following are advantages to external recruiting EXCEPT:
A. Larger applicant pool
B. Newcomers with a fresh approach
C. Attract new knowledge, skills, and abilities
D. Less expensive
E. Newcomers who understand the latest technology
These advantages have to be weighed against the disadvantages, including the relatively high
costs of external recruitment.

Bloom's: Understand
Difficulty: Medium
12-49
58. (p. 400) When managers attempt to fill open positions with workers who are already working
for the organization in some other capacity, they are engaging in:
A. Development
B. External recruiting
C. Walk-in recruiting
D. Outsourcing
E. Internal recruiting
When recruiting is internal, managers turn to existing employees to fill open positions.

Bloom's: Remember
Difficulty: Easy
59. (p. 400) When an employee changes jobs within the organization and moves to another job at
the same level without any major changes in authority or responsibility, this is known as:
A. Promotion
B. A lateral move
C. Outsourcing
D. External recruiting
E. Performance appraisal
Employees recruited internally are either seeking lateral moves (job changes that entail no
major changes in responsibility or authority levels) or promotions.

Bloom's: Remember
Difficulty: Easy
12-50
60. (p. 400) When Joe was looking to fill a vacancy on his shift, he made sure to tell all potential
applicants about the advantages of the position as well as the potential dangers associated
with the position. Joe's assessment of the position is referred to as:
A. MBO
B. EEO
C. EEOC
D. RJP
E. MRP
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.

Bloom's: Apply
Difficulty: Medium
61. (p. 401) When a manager studies the resume of a job applicant to evaluate the work history
and education of the applicant, this is known as the process of:
A. Interviewing
B. Selection
C. Gathering background information
D. Situational interviewing

Bloom's: Remember
Difficulty: Easy
12-51
62. (p. 401) An organization requires all job applicants to complete an application that asks them
to list their college degrees. On which aspect of the HRM process is this organization
focusing?
A. Interviewing
B. Paper-and-pencil testing
C. Personality assessment
D. Background information
To aid in the selection process, managers obtain background information from job
applications and from rsums.

Bloom's: Remember
Difficulty: Easy
63. (p. 401) An organization requires all job applicants to complete an application that asks for
the number of years of their work experience and the types of positions they have held. On
which aspect of the HRM process is this organization focusing?
B. Interviewing
C. Paper-and-pencil testing
D. Personality testing
E. Background information
To aid in the selection process, managers obtain background information from job
applications and from rsums.

Bloom's: Remember
Difficulty: Easy
12-52
64. (p. 402) During the interview process, Tim deliberately asked all the applicants the same set
of questions. What type of interview did Tim use?
A. Unstructured
B. Situational
C. Role-playing
D. Structured
E. Ad hoc
In a structured interview, managers ask each applicant the same standard questions.

Bloom's: Apply
Difficulty: Medium
65. (p. 402) All of the job applicants for a sales position are asked: "What would you do when a
customer complains that it takes too long to receive service?" What type of interview is being
used?
A. Unstructured
B. Situational
C. Personality
D. Ad hoc
E. Impromptu
Sometimes called situational interview questions, these often present interviewees with a
scenario they would likely encounter on the job and ask them to indicate how they would
handle it.

Bloom's: Understand
Difficulty: Hard
12-53
66. (p. 402) When Mary went in for her job interview, the process seemed more like a
conversation without a fixed set of questions. What type of interview did Mary experience?
A. Situational
B. Unstructured
C. Ad hoc
D. Impromptu
E. Structured
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.

Bloom's: Apply
Difficulty: Medium
67. (p. 402) When managers present a job applicant with a situation that is likely to occur on the
job and ask the applicant what he or she would do in such a situation, this is known as:
A. An unstructured interview
B. Recruiting
C. A situational interview
D. Gathering background information
E. Development
Sometimes called situational interview questions, these often present interviewees with a
scenario they would likely encounter on the job and ask them to indicate how they would
handle it.

Bloom's: Remember
Difficulty: Medium
12-54
68. (p. 402) A manager interviews a series of job applicants and asks each applicant whatever he
feels like asking without trying to ask all of the applicants the same questions. This is known
as:
A. A structured interview
B. A realistic job preview
C. An unstructured interview
D. A situational interview
E. Training
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.

Bloom's: Understand
Difficulty: Easy
69. (p. 403) 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 did Mark take?
A. Paper-and-pencil tests
B. Personality tests
C. Structured tests
D. Performance tests
E. Ability tests

Bloom's: Apply
Difficulty: Medium
12-55
70. (p. 403) Tests that measure the personal characteristics of job applicants that are relevant to
successful performance on the job are known as:
A. Ability tests
B. Physical tests
C. Paper-and-pencil tests
D. Personality tests
Personality tests measure personality traits and characteristics relevant to job performance.

Bloom's: Remember
Difficulty: Easy
71. (p. 403) Ford Motor Co. tests applicants for assembly-line positions to determine their
reading and mathematical skills in order to determine if they have the mental abilities
necessary to do these types of jobs. What type of screening procedure is being used?
A. Personality tests
B. Ability tests
C. Situational tests
E. Ad hoc tests

Bloom's: Apply
Difficulty: Medium
12-56
72. (p. 403) Chrysler Corp. tests applicants for autoworker positions on their mechanical
dexterity in an attempt to determine if they have the capability of performing an assembly-line
job. This is an example of:
D. Unstructured testing
Autoworkers are typically tested for mechanical dexterity because this physical ability is an
important skill for high job performance in many auto plants.

Bloom's: Apply
Difficulty: Medium
73. (p. 403) Before he was offered the job with ExpressFed, Adam had to take a test to prove his
ability to lift over 50 pounds. This is an example of a:
D. Paper and pencil testing
For jobs requiring physical abilities, such as firefighting, garbage collecting, and package
delivery, managers use physical ability tests that measure physical strength and stamina as
selection tools.

Bloom's: Apply
Difficulty: Medium
12-57
74. (p. 403) Tests that measure a job applicant's performance on actual tasks of the job are
known as:
A. Physical ability tests
B. Paper-and-pencil tests
C. Personality tests
Performance tests measure job applicants' performance on actual job tasks.

Bloom's: Remember
Difficulty: Easy
75. (p. 403) After a lengthy job interview, Eva had to demonstrate her secretarial skills by taking
a typing test. The typing test is a type of:
A. Physical ability test
B. Paper-and-pencil test
C. Personality test
D. Performance test
E. Aptitude test
Performance tests measure job applicants' performance on actual job tasks.

Bloom's: Remember
Difficulty: Easy
12-58
76. (p. 403) Prior to being offered a top-level managerial position with OceanReef Consulting,
Scott had to spend a few days at an assessment center where he was evaluated on his problemsolving, organizational, communication, and conflict resolution skills. This is an example of:
A. A personality test
B. A physical ability test
C. A role-play test
D. A performance test
E. An ad hoc test
In a typical assessment center, about 10 to 15 candidates for managerial positions participate
in a variety of activities over a few days. During this time they are assessed for the skills an
effective manager needs-problem-solving, organizational, communication, and conflict
resolution skills.

Bloom's: Apply
Difficulty: Hard
77. (p. 403) Eva requests that her college professor and advisor write a letter to a prospective
employer commenting on her classroom performance. This is part of:
B. Recruiting
C. Training
D. Development
E. Feedback
Applicants for many jobs are required to provide references from former employers or other
knowledgeable sources (such as a college instructor or adviser) who know the applicants'
skills, abilities, and other personal characteristics.

Bloom's: Apply
Difficulty: Medium
12-59
78. (p. 404) The degree to which a test generates a similar score each time it is administered to a
job applicant is known as the __________ of the test.
A. validity
B. compatibility
C. rjp
D. reliability
E. capability
Reliability is the degree to which a tool or test measures the same thing each time it is
administered.

Bloom's: Remember
Difficulty: Easy
79. (p. 404) The degree to which a test measures what it is supposed to measure is called the
__________ of the test.
A. reliability
B. validity
C. rjp
D. compatibility
E. capability
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.

Bloom's: Remember
Difficulty: Easy
12-60
80. (p. 404) A manager attempting to select a test for a job applicant that will be a good predictor
of the applicant's performance on the job if hired should be primarily concerned with the
__________ of the test.
A. validity
B. capability
C. reliability
D. compatibility
E. consistency

Bloom's: Understand
Difficulty: Medium
81. (p. 404) An HR manager asks about a manual-dexterity test that has been used to select
automobile assembly-line workers "Does this test predict on-the-job performance for these
types of workers?" On which aspect of the HRM process is this manager focusing?
A. Reliability
B. Performance
C. Validity
D. Capability
E. Compatibility

Bloom's: Apply
Difficulty: Hard
12-61
82. (p. 404) Before creating training and development programs, managers should perform a
______ to determine which employees need training or development and what type of skills
or knowledge they need to acquire.
A. job validation
B. job analysis
C. job assessment
D. needs assessment
E. job design
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.

Bloom's: Remember
Difficulty: Medium
jobs.
83. (p. 404) What focuses primarily on teaching organizational members how to perform their
current jobs and helping them acquire the knowledge and skills they need to be effective
performers?
A. Mentoring
B. Training
C. Development
D. Formal education
E. Varied work experience
Training focuses primarily on teaching organizational members how to perform their current
jobs and helping them acquire the knowledge and skills they need to be effective performers.

Bloom's: Remember
Difficulty: Easy
jobs.
12-62
84. (p. 404) What focuses on building the knowledge and skills of organizational members so
they are prepared to take on new responsibilities and challenges?
A. On-the-job training
B. Training
C. Development
D. Classroom instruction
E. Role-playing
Development focuses on building the knowledge and skills of organizational members so they
are prepared to take on new responsibilities and challenges.

Bloom's: Remember
Difficulty: Easy
jobs.
85. (p. 405) An employee learns how to do her job as the result of actually performing the tasks.
This is known as:
A. Simulation
B. Mentoring
E. Role-playing
In on-the-job training, learning occurs in the work setting as employees perform their job
tasks.

Bloom's: Remember
Difficulty: Easy
jobs.
12-63
86. (p. 406) What type of development broadens employees' horizons and help them think about
the big picture by exposing them to a wide variety of different job experiences, some in line
positions and some in staff positions?
A. Varied work experiences
B. Formal education
D. Role-playing
E. Simulation
Varied work experiences broaden employees' horizons and help them think about the big
picture.

Bloom's: Understand
Difficulty: Medium
jobs.
87. (p. 406) MissouriBank provides a tuition reimbursement program to its employees. This is an
example of:
A. Mentoring
B. Training
C. Formal education
D. Development
E. Informal education
Many large corporations reimburse employees for tuition expenses they incur while taking
college courses and obtaining advanced degrees.

Bloom's: Apply
Difficulty: Easy
jobs.
12-64
88. (p. 407) A manager evaluates a subordinate's job performance and her contributions to the
organization. This is known as the process of:
A. Performance testing
B. Performance feedback
D. Training
E. On-the-job training
Performance appraisal is the evaluation of employees' job performance and contributions to
the organization.

Bloom's: Remember
Difficulty: Easy
89. (p. 407) The process by which a manager shares performance appraisal information with a
subordinate and develops a plan for the future development of that subordinate is known as:
A. Training
B. Selection
C. Performance feedback
D. Recruitment
E. Performance review
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.

Bloom's: Remember
Difficulty: Easy
12-65
90. (p. 407) A manager assesses a subordinate on personal characteristics that are relevant to the
job performance of that subordinate. This is known as:
A. Selection
B. Trait appraisal
C. Recruitment
D. Ability testing
E. Simulation
When trait appraisals are used, managers assess subordinates on personal characteristics that
are relevant to job performance, such as skills, abilities, or personality.

Bloom's: Understand
Difficulty: Medium
91. (p. 408) All the following are disadvantages of trait appraisals EXCEPT:
A. Cause managers to rely on other appraisals
B. Personal characteristics may not lead to high performance
C. Do not allow the manager to give feedback
D. Ratings may be viewed as discriminatory
E. Expensive to administer
Expense is not a disadvantage of the trait appraisal process.

Bloom's: Understand
Difficulty: Medium
12-66
92. (p. 408) ______ appraisals assess what workers are like, ______ appraisals assess what
workers do.
A. trait; results
B. behavior; results
C. trait; behavior
D. results; behavior
E. behavior; trait
Whereas trait appraisals assess what workers are like, behavior appraisals assess what workers
do.

Bloom's: Understand
Difficulty: Medium
93. (p. 408) If a manager is more concerned with what an employee accomplishes, the manager
may use a:
A. Results appraisal
B. Trait appraisal
C. Behavior appraisal
D. Structured appraisal
E. Situational appraisal
For some jobs, how people perform the job is not as important as what they accomplish or the
results they obtain.

Bloom's: Understand
Difficulty: Medium
12-67
94. (p. 408) A sales manager for a Ford Motor Co. dealer evaluates each one of his sales staff
monthly on the basis of the number of new cars sold during the past month. This is an
example of:
C. Personality testing
D. Ability testing
E. An objective appraisal
Objective appraisals are based on facts and are likely to be numerical.

Bloom's: Apply
Difficulty: Medium
95. (p. 408) A manager for an accounting firm evaluates each accounts supervisor monthly on
the basis of the number of customer audits completed during that month. This is an example
of:
C. An objective appraisal
D. An ability appraisal
E. Behavioral evaluation
Objective appraisals are based on facts and are likely to be numerical.

Bloom's: Understand
Difficulty: Medium
12-68
96. (p. 409) An appraisal based on managers' perceptions of traits, behaviors, or results always
has a chance of being inaccurate, and is called:
A. Subjective
B. Situational
C. Objective
D. Ability
E. Behavioral
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.

Bloom's: Understand
Difficulty: Medium
97. (p. 410) Pat, a supervisor, evaluates the performance of his subordinates on scales on a form
provided by the Human Resources department. The scales ask Pat to rate the performance of a
nurse on "following doctors' orders" from "almost never" to "almost always". Pat's
organization is using:
A. GRS
B. BARS
C. BOS
D. Objective evaluations
E. 360 degree feedback
A BOS assesses performance by how often specific behaviors are performed.

Bloom's: Apply
Difficulty: Hard
12-69
98. (p. 411) 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 peers. What type
of performance evaluation did Scott's manager use?
A. BARS
B. BOS
C. Graphic rating scale
D. Quantity of results
E. 360-degree appraisal
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.

Bloom's: Apply
Difficulty: Medium
99. (p. 413) 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 is known as:
A. Pay level
B. Pay structure
C. Pay grid
D. Pay range
E. Pay policy
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.

Bloom's: Remember
Difficulty: Easy
12-70
100. (p. 415) An employee's pay within job categories is determined by factors such as:
A. Performance only
B. Seniority only
C. Skill level only
D. Performance and skill level but not seniority
E. Performance, skill level and seniority
Individual jobholders' pay within job categories is then determined by factors such as
performance, seniority, and skill levels.

Bloom's: Understand
Difficulty: Medium
101. (p. 415) The arrangement of jobs into categories reflecting their relative importance to the
organization and its goals, level of skills required, and other characteristics is called:
A. Pay level
B. Pay structure
C. Job analysis
D. Benefit structure
E. Chain of command
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.

Bloom's: Remember
Difficulty: Easy
12-71
102. (p. 416) Because not everybody's needs are the same, some organizations let employees
pick and choose the benefits they want. This is known as a:
A. HMO
B. Cafeteria style benefit plan
C. Flexible benefit plan
D. Fixed benefit plan
E. PPO
Realizing that employees' needs and desires might differ, some organizations offer cafeteriastyle benefit plans that let employees themselves choose the benefits they want.

Bloom's: Understand
Difficulty: Medium
103. (p. 417) The activities managers engage in to ensure that they have effective working
relationships with the labor unions that represent their employees' interests are known as:
A. Labor negotiations
B. Labor relations
C. Conflict management
D. Conflict resolution
E. Collective bargaining
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.

Bloom's: Remember
Difficulty: Easy
12-72
104. (p. 418) 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
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.

Bloom's: Remember
Difficulty: Easy
105. (p. 419) 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. Labor relations
C. Conflict resolution
D. Collective bargaining
E. Strike
Collective bargaining is negotiation between labor unions and managers to resolve conflicts
and disputes about important issues such as working hours, wages, working conditions, and
job security.

Bloom's: Remember
Difficulty: Easy
12-73
106. (p. 419) Which of the following is NOT usually a topic for collective bargaining?
A. Pay
B. Organizational strategy
C. Job security
D. Hours
E. Benefits
job security.

Bloom's: Remember
Difficulty: Easy
107. (p. 419) ___________ resolve union-management conflict after a ___________ has been
filed.
A. mediators; contract
B. mediators; grievance
C. arbitrators; grievance
D. negotiators; contract
E. union representative; contract
Workers who think they were unjustly fired in violation of a union contract, for example, may
file a grievance, have the union represent them, and get their jobs back if an arbitrator agrees
with them.

Bloom's: Understand
Difficulty: Medium
Essay Questions
12-74
108. (p. 392) Define strategic human resource management. State its objective.
Strategic human resource management is the process by which managers design the
components of an HRM system to be consistent with each other, with other elements of
organizational architecture, and with the organization's strategy and goals. The objective of
strategic HRM is the development of an HRM system that enhances an organization's
efficiency, quality, innovation, and responsiveness to customers-the four building blocks of
competitive advantage.

Bloom's: Understand
Difficulty: Medium
109. (p. 392-393) Discuss the five major components of a human resource management system.
organization achieve its goals. After recruiting and selecting employees, managers use the
second component, training and development, to ensure that organizational 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
organizational 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 organizational 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.

Bloom's: Understand
Difficulty: Medium
12-75
110. (p. 397) Discuss the reasons why managers outsource and then evaluate disadvantages of
outsourcing for the organization.
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.

Bloom's: Understand
Difficulty: Hard
111. (p. 398-399) External recruiting of new managers has both advantages and disadvantages for
the organization. Discuss both the advantages and the disadvantages of external recruiting.
When is external recruiting better for organizations than internal? Defend your answer.
Advantages: access to large applicant pool; organization may need the KSAs that outsiders
have; outsiders often bring in fresh approaches and may be more knowledgeable about new
technology. Disadvantages: high costs of external recruitment, lack of knowledge by outsiders
about the inner workings of the organization & may need more training, uncertainty about
whether the outsiders are really good performers.

Bloom's: Analyze
Difficulty: Hard
12-76
112. (p. 404) Discuss the importance of reliability and validity on the various selection
techniques.
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.

Bloom's: Understand
Difficulty: Hard
113. (p. 404-407) Differentiate between training and development. Provide two examples of each.
Training and development help to ensure that organizational 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 organizational 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
organizational 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.

Bloom's: Analyze
Difficulty: Hard
jobs.
12-77
114. (p. 407) Discuss how performance appraisal and feedback contribute to the effective
management of human resources within an organization.
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.

Bloom's: Understand
Difficulty: Hard
115. (p. 407-408) Trait appraisals have both advantages and disadvantages for the organization.
Explain what is meant by this term and discuss three disadvantages of this technique.
A trait appraisal is a manager's subjective assessment of the personal characteristics of
subordinate that the manager believes are relevant to job performance. Disadvantages include:
Possession of a personal characteristic does not guarantee that the characteristic will be used
on the job; courts may view them as unfair and discriminatory; and they do not allow
managers to provide feedback and suggestions for improvement to subordinates.

Bloom's: Understand
Difficulty: Hard
12-78
116. (p. 408-409) Differentiate between objective and subjective appraisals.

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.

Bloom's: Analyze
Difficulty: Medium
117. (p. 412-413) List five guidelines for giving effective performance feedback that contributes to
employee motivation and performance.
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.

Bloom's: Remember
Difficulty: Medium
12-79
118. (p. 413) Discuss the relationship between pay levels and organizational strategy.
In determining pay levels, managers should take into account their organization's strategy. 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.

Bloom's: Understand
Difficulty: Hard
119. (p. 419) Discuss the collective bargaining process.

job security. Before sitting down with management to negotiate, union members sometimes
go on strike to drive home their concerns to managers. 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, for example, 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.

Bloom's: Understand
Difficulty: Hard
12-80

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Chapter 12 - Human Resource Management

2. A human resource management system is a part of the organizational architecture that

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

37. Unions exist solely to represent workers' interests in organizations.

Multiple Choice Questions

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

57. All of the following are advantages to external recruiting EXCEPT:

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

87. MissouriBank provides a tuition reimbursement program to its employees. This is an

Chapter 12 - Human Resource Management

91. All the following are disadvantages of trait appraisals EXCEPT:

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

108. Define strategic human resource management. State its objective.

Chapter 12 - Human Resource Management

Chapter 12 - Human Resource Management

116. Differentiate between objective and subjective appraisals.

119. Discuss the collective bargaining process.

Chapter 12 - Human Resource Management

Chapter 12 Human Resource Management Answer Key

True / False Questions

AACSB: Reflective Thinking

Chapter 12 - Human Resource Management

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

Chapter 12 - Human Resource Management

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

Chapter 12 - Human Resource Management

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

Chapter 12 - Human Resource Management

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

Chapter 12 - Human Resource Management

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

Chapter 12 - Human Resource Management

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking