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The assessment center technique for selecting employees is ideal for small firms because such centers involve limited expense.

A) True
B) False

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You have been asked to develop an effective reward system for Kroger stores. In designing such a system, you should strive to meet all of the following objectives except


A) enabling employees to satisfy their basic needs.
B) providing rewards comparable to those offered by other firms.
C) distributing rewards fairly within the organization.
D) recognizing that different people have different needs.
E) maximizing the amount spent on compensation.

F) B) and E)
G) B) and C)

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The Giant Company is concerned about controlling labor costs without diminishing its employees' incentive to work harder. The Giant Company should adopt a ____ strategy.


A) productivity-reward
B) cost-of-living
C) performance-reward
D) pay-for-performance
E) static-salary

F) A) and C)
G) A) and E)

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Which of the following type of worker is usually paid on a salary plan?


A) Clerical
B) Retail
C) Fast-food
D) Manager
E) Assembly-line

F) A) and B)
G) All of the above

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The HRM specialists at A&C Company took the opportunity to increase productivity and decrease manual data analysis by using their microcomputer along with a commercial database management system to develop a ____. Now the company can readily identify specific organizational skills, eliminating the need to comb personnel files manually.


A) compensation survey
B) management development program
C) skills inventory
D) human resources inventory
E) replacement chart

F) A) and C)
G) C) and E)

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Dunn & Company wants to use a training method to help managers understand and cope with employees' problems. What method would you suggest?


A) Simulation training
B) Classroom training
C) Seminar training
D) On-the-job training
E) Role playing

F) C) and D)
G) B) and E)

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The process of determining the relative worth of various jobs in a firm is called


A) job evaluation.
B) wage structure.
C) job analysis.
D) job specification.
E) a benefits plan.

F) A) and E)
G) B) and E)

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A form of compensation whereby the employee receives a predetermined amount of benefit dollars to spend on a benefits package he or she has selected to meet individual needs is called a(n)


A) flexible compensation plan.
B) employee benefits plan.
C) Social Security account.
D) flexible benefits plan.
E) optional benefits package.

F) A) and D)
G) B) and D)

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The Age Discrimination in Employment Act of 1967 and its amended version in 1978 apply directly to


A) wages.
B) equal pay for equal work.
C) selection and promotion.
D) employee health and safety.
E) discrimination based on age.

F) A) and D)
G) B) and C)

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____ evaluation methods use some measurable quantity as the basis for assessing performance.


A) Appraisal
B) Judgmental
C) MBA
D) Objective
E) Feedback

F) A) and E)
G) A) and B)

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At her interview, Andrea Wells is asked to provide three work-related references. What is the biggest drawback of this selection method?


A) The references are likely to be untruthful when contacted by Andrea's prospective employer.
B) The references are unlikely to be able to verify her reasons for leaving her previous employment.
C) This may give away information about Andrea's previous salary, which will unjustly influence the job offer.
D) Because Andrea provided these references, they are likely to make positive remarks about her.
E) This method can help to verify background information, but it is extremely expensive to use.

F) A) and B)
G) C) and D)

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The phase of human resources management in which an employee's skills are improved and his or her capabilities are expanded is known as maintaining.

A) True
B) False

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Atlas Company pays workers $500 for recommendations that result in a hiring. In two years, the company has hired at least forty people through this program. Atlas Company is fulfilling its employment needs by using ____ as a recruiting source.


A) college campuses
B) employment agencies
C) newspaper ads
D) walk-in applicants
E) employee referrals

F) C) and E)
G) A) and B)

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For a cultural diversity program to be successful, it is essential that


A) the employees themselves initiate the program.
B) it be given a set time frame in which to show positive results.
C) those who participate get a pay bonus for taking time out of their normal work schedule to participate.
D) it has a strong, sustained commitment from top leadership.
E) it be unstructured and free-flowing so that employees feel free to say whatever is on their minds.

F) A) and C)
G) All of the above

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Senior management in your organization wants you to explain to the board of directors the key concept that makes compensation systems work. It would be correct to tell them that the ideal compensation system must


A) keep labor costs as low as possible.
B) provide for employee needs while keeping labor costs within reasonable limits.
C) pay the highest wages in the industry.
D) encourage employees to work for as little as possible to keep company profits as high as possible.
E) focus attention on benefits rather than on salaries, which are kept low on purpose.

F) A) and C)
G) A) and E)

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The Employee Retirement Income Security Act passed in 1974 requires firms to provide a retirement plan for their employees.

A) True
B) False

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Breakfast cereal maker General Mills periodically gives lump-sum payments to employees. The amount depends on job performance, with more productive employees receiving a larger sum than less productive employees. This motivational tool is


A) a violation of the concept of comparable worth.
B) illegal under the Equal Pay Act.
C) profit sharing.
D) acceptable under the employment-at-will clause of the Equal Pay Act.
E) an incentive payment.

F) B) and E)
G) A) and C)

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Job analysis is the systematic procedure for studying jobs to determine expected levels of productivity.

A) True
B) False

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Whether or not secretaries are paid more than file clerks depends on the nature of a firm's ____ structure.


A) promotion
B) wage
C) organizational
D) evaluation
E) profit-sharing

F) A) and E)
G) B) and D)

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All of the following are elements of an effective employee reward system except


A) enabling employees to satisfy basic needs.
B) providing competitive rewards.
C) distributing rewards fairly in the organization.
D) recognizing that different people have different needs.
E) maximizing the amount of money spent on employee compensation.

F) A) and D)
G) B) and D)

Correct Answer

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