Chapter 3Organization/Individual Relations and Retention

MULTIPLE CHOICE 1. Applebee rewards managers who are able to retain high-performing employees. If you were a store manager, which of the following actions or behaviors would be most likely to be in your control that would improve retention of your high-performing hourly employees? a. Improve wage levels significantly for all hourly employees. b. Improve the benefits package for hourly employees. c. Base hourly employee raises on performance. d. Provide job security for hourly employees. ANS: C OBJ: 3 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 67 LOC: HRM

2. A/an ____ is the collection of unwritten expectations employees and employers have about the nature of their work relationships. a. implied agreement b. organizational culture c. psychological contract d. employment relationship ANS: C OBJ: 1 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 68 LOC: Motivation Concepts

3. The psychological contract is a. legally and ethically binding. b. relevant mainly to managerial and professional employees. c. primarily the psychological relationship of the employee and the employing organization. d. subjective and individual. ANS: D OBJ: 1 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 68 LOC: Motivation Concepts

4. From the employees point of view, the traditional psychological contract has changed mainly because of a. organizational downsizing and the layoff of long-term loyal employees. b. the transition of the U.S. economy from a manufacturing to an information-based economy. c. declining real pay which has not kept up with the cost of living. d. employers favoring younger, less-expensive Generation X and Y employees over the more highly-paid Baby Boomers and Matures. ANS: A OBJ: 1 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. 69 LOC: Motivation Concepts

5. Eighty percent of VidGameMasters employees were born between 1980 and 1990. The new director of HR at this firm realizes that employees in this firm a. tend to be non-communicative with their supervisors. b. will expect quick rewards. c. will value job security.

d. to be less adaptable than other age demographic groups. ANS: B OBJ: 1 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 69 LOC: Motivation Concepts

6. The new psychological contract between employers and employees includes the expectation that the employer will provide the employee with a. rising pay. b. career progression within the organization. c. good benefits. d. flexibility to balance work and home life. ANS: D OBJ: 1 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 69 LOC: Motivation Concepts

7. When employees feel the employer has broken the psychological contract, the key loss that contributes to employee turnover is loss of a. loyalty to the organization. b. commitment to the employees occupation or profession. c. confidence in the legal protection of employee rights. d. employee effort into achieving excellent performance. ANS: A OBJ: 1 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 69 LOC: Motivation Concepts

8. The new psychological contract involves the expectation that employees will provide employers with a. continuous skill improvement. b. permanent organizational membership. c. continuous maximum effort. d. total psychological commitment. ANS: A OBJ: 1 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 69 LOC: Motivation Concepts

9. The main reason for organizations to be interested in the differences among the various generations (Baby Boomers, Generation Y, etc.) is a. the wide variation in benefits desired by each demographic group. b. the differences in the psychological contracts each of these groups hold about employment. c. the variation in pay scales for older versus younger employees and how to balance this with variations in productivity among the generations. d. the fact that Generation X and Y employees have poor educations and work ethics in comparison to Baby Boomers. ANS: B OBJ: 1 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. 69-70 LOC: Motivation Concepts

10. ____ is a positive emotional state resulting from evaluating one's job experiences. a. Organizational commitment b. Fulfillment of the psychological contract c. Employee loyalty

d. Job satisfaction ANS: D OBJ: 1 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 70 LOC: Motivation Concepts

11. American employees are less satisfied with their jobs than they were in the past. Common reasons for this decline include all of the following EXCEPT a. distaste for traditional hierarchical relationships with management. b. more demanding work. c. shorter employment relationships. d. less confidence in long term rewards. ANS: A OBJ: 1 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 70 LOC: Motivation Concepts

12. The extent to which an employee is willing and able to contribute to the organization is called a. motivation. b. identification with the organization. c. employee engagement. d. organizational commitment. ANS: C OBJ: 1 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 70 LOC: Motivation Concepts

13. "The degree to which employees believe in and accept organizational goals and desire to remain with the organization" is a definition of a. organizational commitment. b. employee involvement. c. job satisfaction. d. employee loyalty. ANS: A OBJ: 1 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 70 LOC: Motivation Concepts

14. The relationships among job satisfaction, organizational commitment, absenteeism and turnover a. vary from industry to industry. b. have been affirmed across cultures. c. vary by demographic groups. d. are changing and unstable across time. ANS: B OBJ: 1 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 71 LOC: Motivation Concepts

15. Three factors (individual ability, effort level expended and organizational support) are the components of a. organizational efficiency. b. individual performance. c. organizational effectiveness. d. individual motivation. ANS: B PTS: 1 DIF: Moderate REF: p. 71

OBJ: 2 TOP: Definitional

NAT: AACSB Reflective Thinking

LOC: Motivation Concepts

16. Anthonys performance has been lower in the last six months than his average in the previous three years. Anthonys supervisor wants to understand why Anthonys performance is slipping. It is obvious that Anthonys ability has not changed, so the supervisor must consider all of the following factors EXCEPT a. whether Anthony is having trouble working with new job software. b. whether Anthony has lost his motivation for some reason. c. whether the supervisor herself has changed how she manages Anthony. d. if Anthonys personality has changed. ANS: D OBJ: 2 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 71-72 LOC: Motivation Concepts

17. Training and development of employees is part of the ____ component of individual performance. a. job design b. organizational support c. individual ability d. effort expended ANS: B OBJ: 2 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 72 | Figure 3-2 LOC: Motivation Concepts

18. The main factors in organizational support of individual performance include all of the following EXCEPT a. job design. b. training and development. c. equipment and technology. d. performance standards. ANS: A OBJ: 2 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. 72 | Figure 3-2 LOC: Motivation Concepts

19. Bob has an opening to fill in his department. Although high performance is really needed from a new employee, Bobs organization has little to offer in the way of organizational support. The organization has no real training program, the technology the department uses is outdated, and the relationships among Bobs other subordinates are somewhat conflict-ridden. Which of the following statements is TRUE? a. In this situation, Bob should look for an employee who is a self-starter and who can impose structure on an ambiguous job. b. In this situation, it is unlikely that any new hire would be able to perform at a high level. c. In this situation, the manager will get high performance from the new hire if he selects an applicant with extremely high ability. d. In this situation, the manager will get high performance from the new hire if he selects an applicant who is highly motivated and has a strong work ethic. ANS: B OBJ: 2 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 72 | Figure 3-2 LOC: HRM

20. The effort expended on his/her job by an individual is strongly affected by

a. b. c. d.

the design of the job he/she holds. the persons talents and interests. the training and development he/she has received. the performance standards he/she is supposed to meet. PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. 72 | Figure 3-2 LOC: Motivation Concepts

ANS: A OBJ: 2 TOP: Conceptual

21. ____ is the desire within a person causing that person to act. a. Motivation b. Loyalty c. Effort d. Work ethic ANS: A OBJ: 2 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 72 LOC: Motivation Concepts

22. Research has shown that a. motivation is largely a stable personality characteristic that is not easily affected by external factors. b. motivation is unique to each person and can only be poorly predicted. c. motivation is a goal-directed drive. d. most people are motivated by the same rewards. ANS: C OBJ: 2 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 72 LOC: Motivation Concepts

23. Tuition aid programs do not improve retention of employees in the organization unless a. the programs pay 100% of education costs. b. employees are required to pay back tuition expenses if they leave the organization within five years. c. employers give employees raises when they graduate. d. employers allow employees to use their new capabilities. ANS: D OBJ: 2 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 73-74 LOC: Motivation Concepts

24. Employees are best viewed as a. free agents. b. antagonists. c. family. d. entrepreneurs. ANS: A OBJ: 3 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 73 LOC: HRM

25. The main concept underlying NUCOR Steels technique of motivating employee performance is a. job security. b. organizational support through training and efficient technology. c. profit sharing.

d. high base wages. ANS: C OBJ: 2 TOP: Application PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 73 LOC: Motivation Concepts

26. The high school principal sighs as she examines the list of resignations for the upcoming school year. She says, I guess theres no way we can keep good people from leaving for other schools if we cant pay top salaries. We have competitive pay, but thats just not enough. As director of HR, you tell the principal a. Youre right. Money is the main reason people stay in a job. b. No. I disagree. People, especially dedicated teachers, are not much affected by pay levels. c. I dont entirely agree. There are other factors that have more impact than money when pay is competitive. d. Actually, most of our teachers are women, and they usually leave jobs for involuntary reasons connected with their families, so pay is not a big factor in their retention. ANS: C OBJ: 3 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 74 LOC: Motivation Concepts

27. Which of the following statements are TRUE? a. Money is the main reason people leave. b. Hiring has nothing to do with retention. c. When you train people, you are training them for another employer. d. Employees are best viewed as free agents. ANS: D OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 74 LOC: Motivation Concepts

28. Priscilla is trying to decide whether to quit her current job at PlayMetrix, Inc., and look for work at MotionMaster, Inc., in a nearby town. A shock that would make it more likely that Priscilla would LEAVE PlayMetrix is a. if there are rumors that in the long-run PlayMetrix will take over its main competitor. b. if Priscillas last performance appraisal at PlayMetrix was lower than she usually receives. c. if top-performing employees at PlayMetrix are regularly hired away by competitors such as MotionMaster. d. if Priscillas divorce became final. ANS: B OBJ: 3 TOP: Application PTS: 1 DIF: Easy NAT: AACSB Analytic REF: p. 75 LOC: Motivation Concepts

29. All of the issues below are drivers of retention EXCEPT a. characteristics of the employer. b. job design and work. c. employee relationships. d. mergers and acquisitions. ANS: D OBJ: 3 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 75 | Figure 3-3 LOC: HRM

30. According to the textbook, the 100 Best Companies to Work For have somewhat different cultures and values, yet one factor is consistent among them a. work that allows employees to satisfy self-actualization needs. b. work-life balancing programs. c. high compensation and benefits. d. commitment to treating their employees well. ANS: D OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 76 LOC: Motivation Concepts

31. The CEO has asked your advice as the vice-president of HR how to improve the employees view of the organization. Increasing compensation and benefits is not possible in the current economic environment. You say that there are a number of options, but one that would be realistic and appropriate to the CEOs role would be a. increasing the number of levels in the organizational hierarchy to allow for more promotion opportunities. b. arranging for well-known motivational speakers to give speeches to employees on a monthly basis. c. to demonstrate visionary leadership by developing and communicating the companys strategic plan. d. to promise employees that they will have long-term employment security. ANS: C OBJ: 3 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 76 LOC: Leadership Principles

32. "A pattern of shared values and beliefs that provides members organizational meaning and rules for behavior" is a definition of organizational a. culture. b. policies and procedures. c. ethics. d. philosophy. ANS: A OBJ: 3 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 76 LOC: Group Dynamics

33. Organizations have found that high employee turnover rates in the first few months of employment is often linked to a. inadequate selection screening. b. noncompetitive pay scales. c. incompatibility with the supervisor. d. disillusionment with the organizational culture. ANS: A OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 77 LOC: HRM

34. As director of HR of a medium-sized information technology consulting firm, you are most concerned about turnover of ____ because this will have a significant effect on retention of remaining staff. a. low performing. but highly motivated employees b. employees who are popular with a large number of co-workers c. employees with high performance levels d. middle level management employees

ANS: C OBJ: 3 TOP: Application

PTS: 1 DIF: Moderate NAT: AACSB Analytic

REF: p. 77 LOC: HRM

35. The employee selection process mostly affects retention through a. job/person match. b. the mentoring new employees receive from their first boss. c. giving the applicant a realistic idea of the job before the applicant accepts it. d. the motivation potential of the job. ANS: A OBJ: 3 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 77 LOC: HRM

36. The executive committee of the firm is concerned with the high rate of turnover among their most promising engineers between 25 and 35 years old. They ask you, as the new director of HR, what suggestions you have for retaining these individuals. You suggest ____ as the most appropriate response to this retention problem. a. retention bonuses b. increasing opportunities for personal growth for engineers c. motivational seminars and retreats d. employee recognition programs ANS: B OBJ: 3 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 78 LOC: HRM

37. Mentoring increases employee retention mainly through a. inspirational leadership. b. career opportunities and development. c. interpersonal relationships. d. psychological ownership. ANS: B OBJ: 2 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 78 LOC: HRM

38. As the HR director of a medium-sized electric utility, you are considering what programs you can implement that would improve employees ability to balance their work with their personal lives. You consider all of the following programs EXCEPT a. a compressed workweek. b. an employee assistance plan. c. a tuition-reimbursement program. d. telecommuting. ANS: C OBJ: 3 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 78 LOC: HRM

39. As the director of HR for a mid-sized manufacturer of natural and organic cosmetics, you are weighing the request by one of your HR staff for the company to pay for her to become a Certified Employee Benefits Specialist (CEBS). This will involve paying for educational programs and materials, testing fees,and giving her time off to take the exam. This staff member is in her late 20s and has been with your firm for about two years. Which of the following statements is FALSE?

a. This employee is in the age group that most values developmental opportunities. b. Paying for employee development beyond what is necessary to perform her current job well is not cost effective because her future productivity in future jobs is uncertain. c. Paying for the employees CEBS preparation will make her more marketable. d. Paying for the employees CEBS accreditation will probably increase her job satisfaction and influence her to stay with the firm. ANS: B OBJ: 3 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 78-79 LOC: Motivation Concepts

40. A type of training that integrates new employees into their jobs is called a. orientation. b. indoctrination. c. job previewing. d. mentoring. ANS: A OBJ: 2 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 78 LOC: HRM

41. Which of the following statements is FALSE? a. Most Americans are working more hours a week than they would prefer. b. Digital communication technology has eased the burden of work for American employees. c. Scheduling flexibility can help employees cope with their workload. d. Flexible schedules are best handled on an informal basis so that arrangements can be individualized. ANS: B OBJ: 3 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Technology REF: p. 78 LOC: Information Technologies

42. Competitive pay is often defined as a. the median pay in the relevant job market. b. pay within 10% of the market rate for the job. c. pay within 15% of the market rate for the job. d. pay within 20% of the market rate for the job. ANS: B OBJ: 3 TOP: Definitional PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 79 LOC: HRM

43. The COO of a major nursing home chain is having lunch with the director of HR. Turnover of employees in the lower-skilled jobs is very high. The COO remarks bitterly that these employees will abandon ship for a measly dollar an hour. They have no loyalty to us. As HR director, you reply a. at low pay scales, people are much more sensitive to wage differences than are more highly-paid employees. b. we need to implement more generous benefits to retain these employees. c. we must be more selective in the people we hire in these positions. d. this information is probably an artifact of the exit interviews and that the real reason for turnover lies elsewhere. ANS: A OBJ: 3 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 79 LOC: Motivation Concepts

44. In general, a. employees are not satisfied with either their pay level or the processes used to determine their pay. b. employees are satisfied with both their pay level and the processes used to determine their pay. c. employees are more satisfied with their pay level than the processes used to determine pay. d. employees are more satisfied with the processes used to determine their pay than the level of their pay. ANS: C OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 80 LOC: Motivation Concepts

45. Ambitious employees would be motivated to stay with the firm by all of the following programs EXCEPT a. an organizational commitment to promotion from within. b. good training and development programs. c. extensive formal and informal mentoring by senior organization members. d. the option to telecommute. ANS: D OBJ: 3 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 80 LOC: Motivation Concepts

46. ____ is an example of intangible recognition as a form of reward. a. An "employee of the month" plaque b. Perfect attendance award c. A gift voucher d. Feedback from managers ANS: D OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 80-81 LOC: Motivation Concepts

47. Which of the following statements is TRUE? a. Any recognition is a positive tool for retention. b. Intangible rewards temporarily increase employee satisfaction, but have little impact on employee retention. c. Recognition programs are a useful substitute for raises when the company cannot provide competitive pay. d. Forms of recognition such as employee of the month awards are considered to be tangible rewards. ANS: D OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 80 LOC: Motivation Concepts

48. The departments administrative assistant was at work on Friday morning, but he didnt return to work after lunch. He reported to work as usual the following Monday. This behavior would be classified as a. absenteeism. b. tardiness. c. job abandonment. d. functional turnover.

ANS: A OBJ: 4 TOP: Application

PTS: 1 DIF: Easy NAT: AACSB Analytic

REF: p. 81 LOC: HRM

49. Employee social activities such as sports teams, group charitable activities and celebrations increase retention by a. improving employee productivity and rewards by enhancing motivation. b. demonstrating organizational support. c. offsetting pay that is less than competitive. d. encouraging friendships among co-workers. ANS: D OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 81 LOC: Motivation Concepts

50. Although fair and non-discriminatory treatment of employees is an important driver of retention in any work situation, it is even more important a. in public sector workplaces. b. in non-union workplaces. c. in demographically diverse workplaces. d. in workplaces dominated by younger employees. ANS: C OBJ: 3 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Ethics REF: p. 81 LOC: Ethical Responsibilities

51. As an HR consultant specializing in reduction and prevention of absenteeism, your client is the CEO of an organization with a $1,000,000 annual payroll. You advise the CEO that, as a rough rule of thumb, the cost of absenteeism for his firm is probably around ____ annually. a. $1,500 per employee b. $15,000 per employee c. $15,000 total d. $150,000 total ANS: D OBJ: 4 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 81 LOC: HRM

52. Carl is a single father. This morning his 5-year old son woke up with a 104 degree fever and a body rash. Carl has called his supervisor to say that he will have to take his son to the doctor and that he may be out all day depending on the doctors diagnosis. This would be categorized as ____ absenteeism. a. functional b. dysfunctional c. involuntary d. voluntary ANS: C OBJ: 4 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 82 LOC: HRM

53. You are the director of HR for a medium-sized garden Internet/catalog firm. You are reviewing the absenteeism data for all non-managerial employees in order to better understand patterns of behavior in the organization. You find a. the people who are tardy are not likely to be frequently absent. b. absenteeism rates are spread fairly evenly across employees.

c. a small number of employees is responsible for most of the absenteeism. d. the Baby-Boomers are most likely to be absent because they have medical problems. ANS: C OBJ: 4 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 82 LOC: HRM

54. To some extent, organizational policies and rules can control ____ absenteeism. a. functional b. voluntary c. withdrawal-based d. health-related ANS: B OBJ: 4 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 82 LOC: Motivation Concepts

55. At SymRose, Inc., non-exempt production employees who have perfect attendance for the month receive a coupon for five free Starbucks coffee drinks. This is an example of a ____ approach to absenteeism management. a. disciplinary b. progressive c. no fault d. positive reinforcement ANS: D OBJ: 4 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Analytic REF: p. 82 LOC: Motivation Concepts

56. Both absenteeism and turnover are forms of a. silent protest against the breaking of the psychological contract. b. withdrawal from the firm. c. economically-motivated behavior. d. opportunistic employee behavior. ANS: B OBJ: 4 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 83 LOC: Motivation Concepts

57. Angela is discussing the absenteeism policies of her company with another HR professional. Angela says the new absenteeism system which allows employees to manage their own attendance works very well on the whole, but that one employee used up all his absences and had to be disciplined when he skipped work to be best man in his brothers wedding. Angelas company probably uses the ____ approach to absenteeism control a. paid-time-off b. positive reinforcement c. disciplinary d. no fault ANS: D OBJ: 4 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 83 LOC: HRM

58. Paid time-off programs usually result in a. less total time away from work.

b. high levels of abuses of the system especially in cases of illness. c. reduction in one-day absenteeism events. d. buy-backs of unused days off. ANS: C OBJ: 4 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. 83 LOC: HRM

59. Regular review of turnover data by length of service would indicate all of the following EXCEPT a. if the organization needs to improve its employee orientation processes. b. if the employer should institute flexible work scheduling. c. if the organization should implement more intensive mentoring programs. d. if the organization is losing significant experience and organizational wisdom. ANS: B OBJ: 6 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 83-84 LOC: HRM

60. The absenteeism management approach that results in lower incidents of one-day absenteeism, but in an overall higher amount of employee time away from the job is the a. no-fault approach. b. positive reinforcement approach. c. disciplinary approach. d. paid-time-off approach. ANS: D OBJ: 4 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 83 LOC: HRM

61. As HR manager for a chain of grocery stores, you estimate that (on average) the employees that you hire on August 1 will be with the store a. until the end of September. b. until early November. c. the following August. d. indefinitely. ANS: B OBJ: 4 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 84 LOC: HRM

62. Herbert, the director of HR for a large bank, has learned that the executive vice president of commercial loans has turned in her resignation. This EVP makes $150,000 per year in salary. Herbert wonders how he will manage to absorb the cost of this turnover into this years budget. He estimates it will cost the bank as much as ____ to replace this individual. a. $5,000 b. $15,000 c. $150,000 d. $300,000 ANS: D OBJ: 5 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 84 LOC: HRM

63. Which of the following statements is TRUE? a. It is illegal for an employer to continue to hire new employees at the same time it is laying

off other employees. b. When long-service employees leave the firm, the turnover is often functional because they no longer act as a brake on the introduction of new technology and new work processes. c. Employers are mainly concerned about the loss of high performing employees. The turnover of poor performers is seen as functional. d. The labor market is so tight that most employers are seeking to retain warm bodies in jobs, regardless of performance level. ANS: C OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 84 LOC: HRM

64. You have been hired to be the retention officer for a large software design firm. The firm wishes to reduce the number of adequately-performing designers who leave their jobs. Your main focus should be on ____ turnover among the designers. a. voluntary b. involuntary c. uncontrollable d. functional ANS: A OBJ: 4 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 84 LOC: HRM

65. Mark was terminated because of his excessive tardiness and absenteeism record. This is an example of a. uncontrollable turnover. b. a voluntary separation. c. involuntary turnover. d. dysfunctional turnover. ANS: C OBJ: 5 TOP: Application PTS: 1 DIF: Easy NAT: AACSB Analytic REF: p. 84 LOC: HRM

66. Analyzing organizational turnover statistics by the employees reason for leaving would identify a. what proportion of separations were functional and what proportion were dysfunctional. b. whether churn was occurring. c. if most employee turnover was controllable or uncontrollable. d. if employee turnover was voluntary or involuntary. ANS: C OBJ: 4 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. 84 LOC: HRM

67. ____ is a process in which employees leave the organization and have to be replaced. a. Turnover b. Redundancy c. Attrition d. Layoff ANS: A OBJ: 4 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 84 LOC: HRM

68. Calculations of the cost of absenteeism should include all the following EXCEPT

a. b. c. d.

cost of recruiting new employees. overtime for replacement employees. substandard production. overstaffing needed to cover absences. PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 85-86 LOC: HRM

ANS: A OBJ: 4 TOP: Conceptual

69. As the new director of HR for a small manufacturing organization that has never had an HR professional before, you have decided to calculate the absenteeism rate per month for the company. Since you want to benchmark this rate against U.S. Department of Labor data you will use its equation. You need to collect all the following data EXCEPT a. the hours of machine down-time due to absenteeism during the month. b. the number of person-days lost through absence during the month. c. the average number of employees for the month. d. the number of work days in the month. ANS: A OBJ: 5 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 85 LOC: HRM

70. WesternBioLabs, Inc., is in the process of laying off 20% of its shipping and receiving employees at the same time that it is hiring new hourly employees to staff a new night shift. WesternBioLabs is a. restructuring the organization. b. engaging in churn. c. in violation of the WARN act. d. dealing with dysfunctional turnover. ANS: B OBJ: 4 TOP: Application PTS: 1 DIF: Easy NAT: AACSB Analytic REF: p. 85 LOC: HRM

71. The U.S. Department of Labor uses "separation" to mean a. termination for cause. b. dysfunctional turnover. c. departures from the organization. d. voluntary quits. ANS: C OBJ: 5 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 86 LOC: HRM

72. The severity rate of absenteeism is a. the number of absences per 100 employees each day. b. the percent of time scheduled that is lost due to absenteeism. c. the average time lost per absent employee during a month (or year). d. the proportion of person-days lost through job absence during a certain time period. ANS: C OBJ: 5 TOP: Definitional PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 86 LOC: HRM

73. If Beta Homes has 5 employees quit during August, and if on August 15 there are 30 employees, Betas turnover rate is

a. b. c. d.

.167% 16.7% .6% 6% PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 86 LOC: HRM

ANS: B OBJ: 5 TOP: Application

74. Tina, the director of HR, is disturbed at the high level of turnover at her company. From exit interviews, she suspects that certain supervisors have higher dysfunctional turnover rates among their subordinates than others. In order to verify this hunch, Tina should analyze turnover by department and by a. employee performance rating. b. employee length of service. c. employee race and gender. d. employee job title. ANS: A OBJ: 5 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 86 LOC: HRM

75. The absenteeism incidence rate is a. the percentage of time lost to absenteeism. b. the number of absences per 100 employees per day. c. the dollar loss in revenue per absent employee per day. d. the average time lost per absent employee during a specified period of time. ANS: B OBJ: 5 TOP: Definitional PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 86 LOC: HRM

76. The simplified turnover costing model for a particular job requires the following data: the typical annual pay for the job, percentage of pay for benefits multiplied by the annual pay, the number of voluntary quits in the last year and ____ as well as other information. a. average recruiting costs for this job b. average cost of pre-employment medical and drug tests c. average training and development costs for a new hire in this job d. the number of months it takes for one employee to become fully productive ANS: D OBJ: 5 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. 87 | Figure 3-7 LOC: HRM

77. All of the following should be included as replacement costs when calculating the cost of turnover EXCEPT a. advertising expenses. b. reference checking costs. c. relocation costs. d. orientation time. ANS: D OBJ: 5 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 87 LOC: HRM

78. Carlos, the director of HR for a large paper manufacturing company, is studying the financial costs of turnover of plant personnel at all levels. The easily calculable costs are sobering, but Carlos is also concerned about the hidden costs of turnover including a. co-worker coaching and salaries. b. turnover of other employees. c. the cost of pre-employment medical tests. d. the overtime for employees covering the separated employees jobs. ANS: B OBJ: 5 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 87 LOC: HRM

79. A consumer market research firm has high turnover at its call center in suburban Minneapolis. It is paying competitive wages and benefits and the HR department has instituted the best turnover management practices available. But, the level of voluntary and uncontrollable turnover remains high. In order to cope with this rate of turnover and minimize productivity losses, the firm needs to a. increase performance standards. b. convey a stronger leadership image. c. overstaff. d. strengthen its absenteeism management policies. ANS: C OBJ: 4 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 88 LOC: HRM

80. Which of the following statements is TRUE? a. One of the benefits of running call centers from countries such as India is that turnover is reduced to only that which is uncontrollable by the individual. b. Monotonous jobs, such as many call center jobs, generate high levels of turnover regardless of the country in which the call center operates. c. A disadvantage of running call centers from countries such as India is that poor performing employees tend to stay, rather than quitting, which results in dysfunctional retention. d. Workers in different countries are motivated by different core elements of jobs. Consequently, monotonous work, such as call center jobs, are considered motivating in some countries such as India. ANS: B OBJ: 6 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. 88 LOC: Motivation Concepts

81. Alice, a chronically tardy server at a moderately-priced restaurant, who consistently gets the lowest tips from customers, has announced that she is quitting to take another job at a newly-opened casino. This could be categorized as ____ turnover. a. disruptive b. functional c. involuntary d. predictable ANS: B OBJ: 4 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 88 LOC: HRM

82. In a/an ____ interview, individuals are asked to identify their reasons for leaving the organization. a. departure b. appraisal

c. exit d. retention ANS: C OBJ: 6 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 89 LOC: HRM

83. With regard to exit interviews, which of the following statements is FALSE? a. Departing employees are eager to use the exit interview to unburden themselves about the real reasons for their leaving. b. HR typically conducts exit interviews. c. It is often more useful to contact departing employees a month or so after departure when they may be more willing to provide information. d. About half of organizations use exit interviews to make changes to aid retention. ANS: A OBJ: 6 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 89 LOC: HRM

84. Why should employers use attitude surveys? a. to identify employee needs and/or preferences b. to identify employees who are unmotivated and/or likely to quit c. as a psychological tool to assure employees that the employer cares about their opinions d. to identify jobs that can be eliminated or automated ANS: A OBJ: 6 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 90 LOC: Motivation Concepts

85. Only surveys that are ____ can measure attitudes accurately. a. internally developed b. valid and reliable c. custom-designed for the specific organization d. user-friendly ANS: B OBJ: 6 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 90 LOC: Motivation Concepts

86. The COO of ButtonVox is unwilling to authorize an attitude survey of employees that has been proposed by the director of HR. The COO has used several aphorisms to counter the HR directors arguments: Let sleeping dogs lie. If it aint broke, dont fix it. Dont ask, dont tell. and This will just open up a can of worms. The HR director suspects that the COO is most concerned that a. it will be difficult to keep employee responses to the survey confidential. b. employees will suspect an organizational restructuring is being considered. c. the survey results will reveal that employee compensation is not competitive. d. employees will expect action will be taken on the concerns identified. ANS: D OBJ: 6 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 90 LOC: Motivation Concepts

87. HR managers should view absenteeism and turnover as a. unavoidable dysfunctional behaviors. b. largely out of the organizations control.

c. unrelated forms of withdrawal. d. symptoms of problems within the organization. ANS: D OBJ: 6 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 90 LOC: HRM

88. Ideally, interventions to improve retention a. should be implemented simultaneously across the organization. b. implemented in the departments least likely to have negative consequences. c. pilot tested before being implemented in the entire organization. d. initially implemented in the departments with the worst retention problems. ANS: C OBJ: 6 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 90 LOC: HRM

89. The employee attitude survey conducted by a financial services firm three months ago has been analyzed. Although employees are generally satisfied with their pay, the survey revealed strong and generalized dissatisfaction with the organizations management style, promotion practices and training programs. As director of HR, you recommend a. sending an internal e-mail thanking employees for their cooperation and valuable feedback in the survey. b. announcing the positive survey results, while beginning to work on solutions to the problems revealed by the negative results. c. announcing the hiring of a consulting firm to address issues raised by the survey. d. communicating the positive and negative survey results to employees along with an action plan to move toward solutions of the problems revealed. ANS: D OBJ: 6 TOP: Application TRUE/FALSE 1. A major factor in whether an employer wants to retain an employee is the employees performance. ANS: T OBJ: 1 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 68 LOC: HRM PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 90 LOC: Communication

2. During a merger, people are so concerned about job security that the top quality employees who survive the layoffs have low intention to quit. ANS: F OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 69 LOC: Motivation Concepts

3. Psychological contracts include both tangible items (such as wages, benefits, employee productivity, and attendance) and intangible items (such as loyalty, fair treatment, and job security). ANS: T OBJ: 1 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 69 LOC: Motivation Concepts

4. In most organizations today, employees expect to exchange their efforts and capabilities for a secure job that offers rising wages, comprehensive benefits and career progression within the organization. ANS: F OBJ: 1 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 69 LOC: Motivation Concepts

5. A key contribution of the employer which employees expect in the modern psychological contract is the opportunity to develop their careers. ANS: T OBJ: 1 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 69 LOC: Motivation Concepts

6. People who were born between 1980 and 1990 are sometimes referred to as Generation Why. ANS: T OBJ: 1 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 69-70 LOC: HRM

7. After a corporate downsizing, the organization can expect to have a core of highly loyal and committed employees because the deadwood and poor performers will have been weeded out. ANS: F OBJ: 1 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 69 LOC: Motivation Concepts

8. Because of increasing HR attention to employee needs and expectations, American employee satisfaction overall has increased in recent years. ANS: F OBJ: 1 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 70 LOC: Motivation Concepts

9. For the organizational cause to inspire employee commitment, the organization must be exceptional, such as Doctors Without Borders or Habitat for Humanity. ANS: F OBJ: 1 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 70 LOC: Motivation Concepts

10. The director of HR for Lime Mountain Hospital realizes that the labor market for intensive care nurses is very tight. She realizes that in order to reduce the turnover of these nurses, she must somehow increase the intensive care nurses loyalty to the hospital. ANS: T OBJ: 1 TOP: Application PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 70 LOC: Motivation Concepts

11. Older employees tend to be more concerned about job security than younger workers. ANS: F OBJ: 3 PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 70 LOC: Motivation Concepts

TOP: Conceptual 12. Organizational commitment and job satisfaction have a stronger relationship with involuntary turnover than with voluntary turnover. ANS: F OBJ: 1 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 71 | p. 84 LOC: Motivation Concepts

13. Job design has an indirect effect on both employee absenteeism and turnover. ANS: T OBJ: 1 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 71 | Figure 3-1 LOC: Motivation Concepts

14. Individual performance will be high as long as two of the three major factors influencing performance are high. That is, even if one factor is low or absent, a high level of the two other factors will result in the individual performing well. ANS: F OBJ: 2 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 71-72 LOC: Motivation Concepts

15. The CEO of Glenorra Home Products has proposed bringing in a nationally-recognized motivational speaker to address the employees. Although this will cost $15,000, the CEO says this speaker is dynamite and energizing. The CEO wants you, as director of HR, to pay for this speaker out of your very limited training and development budget. You are happy to do this because you realize that excellent motivational speeches have long-lasting impact on employee motivation. ANS: F OBJ: 2 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 73 LOC: Motivation Concepts

16. One of the main characteristics of the 100 Best Companies to Work For is that they treat employees well in both good and bad times. ANS: T OBJ: 5 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 76 LOC: Motivation Concepts

17. Most people agree on what characteristics make a good job. ANS: F OBJ: 3 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 77 LOC: Motivation Concepts

18. As the director of HR for a major interstate trucking line, you realize that a safe work environment is not a key factor in retention of truck drivers because the type of person attracted to this occupation is macho and risk-taking. ANS: F OBJ: 3 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 77 LOC: Motivation Concepts

19. Experience has shown that flexible work arrangements are best handled formally. ANS: T OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 78 LOC: HRM

20. If an organization cannot pay competitive wages, it will find it difficult to retain high-performing employees. ANS: T OBJ: 3 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 79 LOC: Motivation Concepts

21. Promoting from within the organization (internal recruiting) has a positive impact on retention. ANS: T OBJ: 3 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 79 LOC: Motivation Concepts

22. A manager has come to you, as an HR specialist, for advice. One of his young, valuable employees seems to be thinking about quitting. You suggest that it would be useful to promote this employee, since it would likely keep her within the organization. Does research support this suggestion? ANS: T OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 80 LOC: Motivation Concepts

23. Providing low-cost, high-quality lunches in an employee cafeteria would increase retention by making the employees perception of the employer more favorable. ANS: T OBJ: 3 TOP: Application PTS: 1 DIF: Easy NAT: AACSB Analytic REF: p. 80 LOC: Motivation Concepts

24. Co-worker friendships can be one of the most important signs of a positive workplace. ANS: T OBJ: 3 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 81 LOC: Motivation Concepts

25. Voluntary absenteeism is absenteeism that the organization considers avoidable. ANS: T OBJ: 4 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 82 LOC: HRM

26. The most widely used method of absenteeism control is paid-time-off programs. ANS: F OBJ: 4 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 83 LOC: HRM

27. As the HR manager for a chain of grocery stores, you estimate that in order to staff one check-out clerk position, you will have to hire multiple individuals during the year.

ANS: T OBJ: 5 TOP: Application

PTS: 1 DIF: Challenging NAT: AACSB Analytic

REF: p. 84 LOC: HRM

28. Turnover is costly and should be avoided whenever possible. ANS: F OBJ: 4 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 84 LOC: HRM

29. If the investment specialist who handles the billion-dollar pension fund leaves the firm, this event would be classified as dysfunctional turnover. ANS: T OBJ: 4 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Analytic REF: p. 84 LOC: HRM

30. A retention officer in the firm would have a goal of reducing controllable turnover. ANS: T OBJ: 4 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 84 LOC: HRM

31. Glenda is keeping her job with Glenorra Home Products because if she would quit she would lose the close-knit friendships she has built up at the firm over the years. This is an example of dysfunctional retention because Glenda is staying for a reason other than commitment to the organizations goals. ANS: F OBJ: 3 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 84 LOC: HRM

32. A high level of churn is an indication of robust organizational health, because the firm is eliminating employees with outdated skills and replacing them with employees with more necessary skills. ANS: F OBJ: 4 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. 78 LOC: HRM

33. Attitude surveys rarely provide valid and reliable results because employees enjoy sabotaging these efforts to collect data. ANS: F OBJ: 6 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 89 LOC: HRM

34. An exit interview or questionnaire will probably gain more accurate data if the former employee answers questions a month or more after he/she has left the organization rather than immediately upon departure. ANS: T OBJ: 6 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 89 LOC: HRM

ESSAY 1. Traditionally, employee loyalty and long service with one employer were the norm. How has this changed? Why? Discuss this issue in terms of the psychological contract. ANS: The psychological contract refers to the unwritten expectations employees and employers have about their work relationships. Traditionally, the employer would provide a secure job with increasing pay, benefits, and career progression in exchange for employees efforts and capabilities. When these employee expectations were fulfilled, it led to loyalty and staying with the employer. But in the last decades, employees have seen massive lay-offs, mergers and acquisitions, and outsourcing of jobs. Thus, they have lost their perception of job security and of increasing benefits from long tenure with an employer. Employees see less personal benefit in being loyal to their employers and they are more willing to leave. In addition, loyalty is eroded when employees see their employers behaving in unethical and illegal manners. The traditional psychological contract has been broken. PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking TOP: Conceptual REF: p. 68-70 OBJ: 1 LOC: Motivation Concepts

2. What is meant by job satisfaction and organizational commitment? What are the advantages of a satisfied and committed workforce? ANS: Job satisfaction is a positive emotional state resulting from evaluating one's job experiences. When expectations are met, people are satisfied with their jobs. Employees view their work, pay, promotion opportunities, supervision and co-workers as important dimensions of job satisfaction. Organizational commitment is the degree to which employees believe in and accept organizational goals and desire to remain with the organization. Job satisfaction is somewhat linked to organizational commitment. A satisfied and committed employee is less likely to be absent or to voluntarily leave the organization. PTS: 1 OBJ: 1 TOP: Definitional DIF: Moderate REF: p. 70-71 | Figure 3-1 NAT: AACSB Reflective Thinking LOC: Motivation Concepts

3. Describe the major alternatives for controlling voluntary absenteeism. ANS: Management of voluntary absenteeism includes five major approaches: the disciplinary approach, positive reinforcement, a combination of discipline and reward, no fault absenteeism policies, and paid time-off programs. The disciplinary approach, which begins with warnings and ends in termination, is most widely used. Positive reinforcement techniques reward employees for being present at work. No fault policies do not require employees to provide an excuse for absences, but if employees exceed normal limits they are disciplined. Paid-time-off plans give each employee an account of days off which they can take at their discretion. If the employee runs out of days in the account, any other days off are unpaid. The paid-time-off approach is somewhat more effective in reducing one-day absenteeism, but employees typically take all of their allowed days off which tends to increase overall time away from work. PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 82-83 LOC: HRM OBJ: 5 TOP: Conceptual

4. Why should organizations address controllable turnover? What strategies would you recommend for addressing retention?

ANS: Controllable turnover occurs when people choose to leave the organization for factors that could be influenced by the employer. Employers should be most concerned about dysfunctional voluntary controllable turnover, wherein valuable employees opt to leave the organization for reasons the organization could have prevented. Strategies for improving retention include: a positive corporate culture, visionary leadership, job security, good jobs that match the nature of the work to the individual employee, good working conditions, flexible scheduling, work/life balancing, opportunities for personal growth, training, mentoring, career planning and advancement, competitive compensation, fairness in compensation, recognition, nondiscriminatory treatment of all employees, and good relationships at work with supervisors and with co-workers. PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 75-81 LOC: HRM OBJ: 3 | 4 TOP: Conceptual

5. What are the five main drivers of retention? Describe the HR-related activities which are related to each driver. ANS: The five main drivers of retention are: job design and work, career opportunities, rewards, employee relationships and characteristics of the organization. HR can affect retention in the area of job design through job/person matching, time flexibility, and work/life balancing. Career opportunities can be influenced by HR through training/development and mentoring programs, as well as career planning and advancement. HR is directly involved in employee rewards through competitive pay and benefits, performance and compensation linkages, and recognition programs. Employee relationships can be improved and encouraged by HR through fair, non-discriminatory practices, supervisory and management support of employees, and encouraging positive co-worker relations. HR can affect the characteristics of the organization through its impact on the organizations culture and values as well as its influence on management. All of these factors play a role in retaining employees. PTS: 1 OBJ: 3 TOP: Conceptual DIF: Challenging REF: p. 80-87 | Figure 3-6 NAT: AACSB Reflective Thinking LOC: HRM