USF – HR Mgmt. Exam 3

1) Which of the following is an advantage of voluntary benefits?
A) always less costly for small businesses
B) typically linked to worker productivity
C) usually nontaxable to the employee
D) always government sponsored
C) usually nontaxable to the employee
2) In most cases, the costs of voluntary benefits are paid by ________.
A) government agencies
B) state governments
C) employees
D) employers
C) employees
3) Steve is employed as an accounts manager at an advertising agency. Steve has been offered a similar position at another firm for an equivalent salary and benefits package. When making his decision, Steve should focus primarily on nonfinancial compensation factors. Which of the following questions is LEAST relevant to Steve’s decision to remain at his current job?
A) Is the job meaningful and challenging?
B) Is the employee stock option plan risky?
C) Is there a possibility for increased responsibility?
D) Is there an opportunity for growth and achievement?
B) Is the employee stock option plan risky?
4) As a rule, employees receive benefits because of their productivity in an organization.
a. true
b. false
b. false

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5) Margaret’s husband, who worked as an accountant, recently died from a heart attack while on vacation. Which of the following would most likely be provided to Margaret?
A) survivors’ benefits
B) life insurance
C) unemployment compensation
D) supplemental Medicaid payments
A) survivors’ benefits
6) Which of the following laws requires that employers and employees pay equally for Social Security retirement benefits?
A) Federal Unemployment Tax Act
B) Federal Insurance Contribution Act
C) Pension Protection Act
D) Employee Retirement Income Security Act
B) Federal Insurance Contribution Act
7) Which of the following is the LEAST likely purpose of unemployment insurance payments?
A) giving workers time to find equivalent jobs
B) minimizing the number of workers needing permanent income support from the government
C) continuing worker health benefits to prevent financial distress
D) sustaining consumer spending during difficult economic times
C) continuing worker health benefits to prevent financial distress
8) With consumer-driven health plans, it is common to increase the insurance ________.
A) premium
B) deductible
C) term
D) coverage
A) premium
9) Julie has health insurance through her employer. The managed-care health organization used by Julie’s employer covers all services for a fixed fee. However, Julie may only use the doctors and health facilities chosen by the managed-care health organization. Julie is most likely a member of a(n) ________.
A) point-of-service
B) health maintenance organization
C) preferred provider organization
D) exclusive provider organization
B) health maintenance organization
10) Coinsurance refers to the amount a person has to pay for medical services before the health plan begins to pay benefits.
a. true
b. false
b. false
11) A major disadvantage of an FSA is that generally employees forfeit any amounts left unspent in the accounts at year end.
a. true
b. false
a. true

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12) Coinsurance of 20 percent means that the insurance plan will pay 20 percent of the covered expenses while the insured will pay 80 percent.
a. true
b. false
a. true
13) Maura’s retirement plan requires her employer to make specific contributions to a retirement fund established for Maura. Which type of plan does Maura most likely have?
A) defined contribution plan
B) deferred contribution plan
C) defined benefit plan
D) deferred salary plan
A) defined contribution plan
14) Carson Enterprises is considering the idea of replacing personal leave and vacation time with paid time off. Which of the following best supports this decision?
A) Employees at Carson express satisfaction with the firm’s current PPO.
B) Last minute absences are a significant problem among Carson employees.
C) Retirement plans held by Carson employees suffered during the recession.
D) Carson employees are given the opportunity to telecommute when needed.
B) Last minute absences are a significant problem among Carson employees.
15) Which law allows companies to automatically enroll workers in a defined contribution plan?
A) Employee Retirement Income Security Act
B) Fair Labor Standards Act
C) Pension Protection Act
D) Pension Recovery Act
C) Pension Protection Act

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16) Which of the following factors necessitated the need for labor unions?
A) decline in welfare benefits
B) Great Depression
C) rise of the service industry
D) rise in family owned businesses
A) decline in welfare benefits
OR
C) rise of the service industry
*Manufacturing not Service was growing. . .

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17) Another term for factory owners is ________.
A) executive management
B) efficiency experts
C) HR managers
D) capitalists
D) capitalists
18) The local union is primarily responsible for ________.
A) actively lobbying at national and state levels
B) publishing the union newspaper
C) administering the collective bargaining agreement
D) engaging in collective bargaining at the national level
C) administering the collective bargaining agreement
19) The AFL-CIO’s major activities include all of the following EXCEPT ________.
A) improving the image of organized labor
B) resolving disputes between local unions
C) engaging in collective bargaining
D) policing internal affairs of member unions
B) resolving disputes between local unions
20) Unionized machinists who perform essential jobs at a boat manufacturing plant decide to strike for higher wages. As a result, the plant is forced to shut down until an agreement can be reached. The labor union is most likely using a strategy of ________.
A) union salting
B) pulling the union through
C) public awareness campaigns
D) strategically located union members
D) strategically located union members
21) A restaurant worker labor union is training union organizers to apply for jobs at fast food restaurants in the Chicago area. Once hired, the union organizers will actively work to unionize employees at the restaurant. This strategy is best described as ________.
A) broad banding
B) union salting
C) flooding the community
D) raising public awareness
B) union salting
22) Public awareness campaigns by labor unions are increasingly being used in lieu of strikes.
a. true
b. false
a. true
23) In conducting a legal campaign to discourage employees from voting for the union, management would most likely ________.
A) tell workers the benefits of remaining union-free
B) threaten workers with loss of their jobs to influence the votes
C) incite racial or religious prejudice by making inflammatory campaign appeals
D) make speeches to assembled employees on company time within 24 hours before an election
A) tell workers the benefits of remaining union-free
24) Which of the following is NOT one of the four major bargaining structures?
A) one company dealing with a single union
B) several companies dealing with a single union
C) several unions dealing with a single company
D) one bargaining unit dealing with several unions
D) one bargaining unit dealing with several unions
25) What is the first step in the collective bargaining process?
A) ratifying an agreement
B) preparing for negotiations
C) negotiating an agreement
D) choosing a bargaining unit
B) preparing for negotiations
26) Before negotiating an agreement, it is most important that both negotiators understand which of the following?
A) recruitment techniques of the firm
B) structure and context of the organization
C) requirements of each position at the firm
D) organizational hierarchy at the company
B) structure and context of the organization
27) What type of bargaining issues may be raised, but neither side may insist that the issues be bargained over?
A) prohibited
B) arbitrary
C) mandatory
D) permissive
D) permissive
28) Which of the following is LEAST likely to appear in a management rights section of a labor agreement?
A) power to discipline for cause
B) freedom to select company objectives
C) power to determine union security
D) freedom to determine how to use the firm’s material assets
C) power to determine union security
29) In labor agreements, seniority is an important issue because it ________.
A) addresses family and child-care problems
B) establishes the process for filing grievances
C) provides the basis of promotion decisions
D) determines the need for retirement plans
C) provides the basis of promotion decisions
30) Which of the following is typically LEAST useful during the negotiating phase of collective bargaining?
A) give-and-take attitude
B) neutral meeting location
C) clear communication
D) media involvement
D) media involvement
31) Which of the following is NOT an exception to the at-will doctrine?
A) implied contract
B) favoritism
C) violations of public policy
D) implied covenant of good faith
B) favoritism
32) In the disciplinary action process, what must occur immediately after management establishes rules?
A) observe performance
B) set organizational goals
C) compare performance with rules
D) communicate rules to employees
D) communicate rules to employees

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33) The primary purpose of disciplinary action is to ________.
A) chastise employees for breaking rules
B) prevent unionized employees from striking
C) alter behavior that hinders organizational goals
D) initiate useful discussion and feedback from managers
C) alter behavior that hinders organizational goals
34) Parker Pharmaceuticals is a corporation that employs over 400 workers. As the firm continues to grow, the need for discipline among employees has become more critical. The HR department and top executives are planning to revamp the disciplinary action process that is currently in place at Parker. Which of the following most likely undermines a decision to use the hot stove rule approach to discipline?
A) Parker supervisors desire flexibility in any disciplinary system.
B) Some Parker employees belong to labor unions while other do not.
C) The Parker ombudsperson handles most grievance procedures.
D) Most disciplinary issues at Parker are related to insubordination.
A) Parker supervisors desire flexibility in any disciplinary system.
35) Parker Pharmaceuticals is a corporation that employs over 400 workers. As the firm continues to grow, the need for discipline among employees has become more critical. The HR department and top executives are planning to revamp the disciplinary action process that is currently in place at Parker. Which of the following best supports a decision to use the progressive disciplinary action approach?
A) Major violations and terminations rarely occur at Parker.
B) Parker wants an informal procedure for disciplining employees.
C) Managers at Parker have been inconsistent with disciplining employees.
D) Chronic tardiness is the primary disciplinary issue among Parker employees.
C) Managers at Parker have been inconsistent with disciplining employees.
36) According to the hot stove rule, disciplinary action should ________.
A) occur immediately and without warning
B) consider extended circumstances
C) provide consistent punishment
D) include personal comments
C) provide consistent punishment
37) According to the hot stove rule, disciplinary action should most likely occur immediately, so that the individual will ________.
A) receive appropriate training opportunities
B) have time to contact an HR manager
C) share the experience with co-workers
D) understand the reason for it
D) understand the reason for it

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38) Which of the following is NOT a question that would likely be asked when a manager uses progressive disciplinary action?
A) Does this violation warrant more than a written warning?
B) Does this violation warrant more than an oral warning?
C) Does this violation warrant disciplinary action?
D) Does this violation warrant termination?
D) Does this violation warrant termination?
39) Consider the following situation: When an employee violates a rule, the manager issues an oral reminder. Repetition brings a written reminder, and the third violation results in the worker having to take one, two, or three days off (with pay) to think about the situation. During the first two steps, the manager tries to encourage the employee to solve the problem. If the third step is taken, upon the worker’s return, the worker and the supervisor meet to agree that the employee will not violate a rule again or the employee will leave the firm. What form of disciplinary action is being taken?
A) disciplinary action without punishment
B) hot stove approach
C) progressive disciplinary action
D) progressive discipline
A) disciplinary action without punishment

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40) Which of the following is LEAST likely to help a firm protect itself against suits claiming discriminatory disciplinary actions?
A) basing decisions solely on performance
B) disciplining in the presence of co-workers
C) training managers how to avoid bias claims
D) developing written policies barring unfair treatment
D) developing written policies barring unfair treatment

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41) The goal of progressive disciplinary action is to formally communicate problem issues to employees in a direct and timely manner so that they can improve their performance.
a. true
b. false
a. true
42) Nora, a line manager at an electronics firm, needs to fire one of her subordinates for repeatedly failing to report to work. The subordinate previously received both oral and written warnings about the violation. Which of the following would most likely help the termination process proceed smoothly?
A) Nora answers questions about the decision.
B) Nora and the subordinate gather in her office.
C) Nora gives the subordinate the final paycheck.
D) Nora meets with the subordinate privately.
C) Nora gives the subordinate the final paycheck.
43) What is the primary reason that firms provide severance pay to employees who are involuntarily terminated?
A) ensuring that current employees remain with the firm
B) preventing terminated employees from suing the firm
C) complying with federal laws that require severance pay
D) expressing concern and support for terminated employees
B) preventing terminated employees from suing the firm

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44) Parson Enterprises is a unionized organization. An employee at Parson would most likely learn how demotions are handled by ________.
A) reviewing the firm’s mission statement
B) contacting the local EEOC office
C) attending a training program
D) reading the labor-management agreement
D) reading the labor-management agreement
45) Dixon Enterprises is a unionized organization. An employee at Dixon would most likely learn how demotions and layoffs are handled by ________.
A) reviewing the firm’s corporate history
B) contacting an outside consultant
C) attending an orientation session
D) reading the labor agreement
D) reading the labor agreement
46) In order to prove that an employer has violated the general duty clause, OSHA must prove all of the following exist EXCEPT that ________.
A) the hazard was likely to cause minor injuries
B) a condition in the workplace presented a hazard
C) a feasible means existed to reduce the hazard
D) the employer or its industry recognized the hazard
A) the hazard was likely to cause minor injuries
47) Since its inception, OSHA has helped to cut occupational injury and illness rates by how much?
A) 10%
B) 40%
C) 80%
D) 100%
B) 40%
48) Thompson Manufacturing has been designated a recalcitrant employer by OSHA. As a result, Thompson will most likely ________.
A) receive a stern warning
B) close its facilities immediately
C) experience numerous inspections
D) downsize its staff and hire contractors
C) experience numerous inspections
49) Small businesses are exempt from complying with the Occupational Safety and Health Act.
a. true
b. false
b. false
50) The Securities and Exchange Commission is responsible for upholding the whistleblower provision of the Sarbanes-Oxley Act.
a. true
b. false
b. false

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51) Kelly is extremely stressed about work, and her productivity is declining. What is the best way for Kelly to manage her stress?
A) exercising regularly
B) starting a diet plan
C) working on the weekend
D) requesting new assignments
A) exercising regularly
52) Foley Foods is a mid-size food processing facility that has had a significant increase in business lately. The firm needs to hire additional workers and develop a second shift to meet productivity needs. The HR manager at Foley Foods recommends implementing a safety program. Which of the following best supports the implementation of a safety program?
A) At the end of each year, high performing employees at Foley Foods are given bonuses.
B) As a government contractor, Foley Foods must have an employee assistance program.
C) Workers’ compensation costs increased significantly in the last year at Foley Foods.
D) Foley Foods’ main competitor recently received an OSHA penalty and citation.
C) Workers’ compensation costs increased significantly in the last year at Foley Foods.
53) Foley Foods is a mid-size food processing facility that has had a significant increase in business lately. The firm needs to hire additional workers and develop a second shift to meet productivity needs. The HR manager at Foley Foods recommends implementing a safety program. Which of the following suggests that a safety program would be beneficial to Foley Foods?
A) Foley Foods recently became a smoke-free workplace.
B) Foley Foods will be hiring new workers for the night shift.
C) Employees at Foley Foods use simulators during training programs.
D) Managers at Foley Foods will soon be conducting performance appraisals.
B) Foley Foods will be hiring new workers for the night shift.
54) Tanya is a data entry specialist who spends most of her day at a computer workstation. She has recently experienced a weak grip, wrist numbness, and sensitivity to cold. Which of the following recommendations is LEAST likely to benefit Tanya?
A) placing the monitor at eye level
B) taking periodic exercise breaks
C) alternating tasks during the day
D) adjusting her chair height
A) placing the monitor at eye level
55) Which of the following best describes the primary purpose of ergonomics?
A) encouraging ethical work behavior
B) monitoring worker productivity
C) promoting good posture
D) studying fatigue issues
C) promoting good posture
56) According to research, which of the following most likely occurs from using ergonomics?
A) improved workplace security
B) lowered selection costs
C) improved recruitment
D) lowered injury rate
D) lowered injury rate
57) An employer incurs the liability of ________ when it fails to conduct a reasonable investigation of an applicant’s background, and then assigns a potentially dangerous person to a position in which he or she can inflict harm.
A) negligent hiring
B) negligent retention
C) negligent investigation
D) negligent assignation
A) negligent hiring
58) All of the following EXCEPT ________ are driving the growth in corporate wellness programs.
A) the potential to lower health-related costs
B) federal healthcare reform
C) the design of employer-sponsored healthcare benefits
D) demand for wellness programs from employees
B) federal healthcare reform

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59) The National Auto Group is going to develop a wellness program. What is the first step in the process?
A) conducting a health-risk assessment of employees
B) developing incentives for employee participation
C) establishing an on-site health clinic
D) requiring substance abuse tests
A) conducting a health-risk assessment of employees

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60) Under excessive stress, a person’s dominant trait may become more obvious, which, in the case of a positive person is likely to be ________.
A) poor time management skills
B) erratic behavior
C) hyperactivity
D) absenteeism
C) hyperactivity

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61) Dailey Enterprises is a mid-sized business that is considering expanding its operations globally. Which of the following is LEAST likely to occur as a result of Dailey globalizing?
A) improved selection process
B) some protection against domestic business cycles
C) increased competitiveness
D) increased profitability
A) improved selection process
62) An arrangement whereby the parent company grants another firm the right to do business in a prescribed manner is referred to as ________.
A) foreign investing
B) exporting
C) licensing
D) franchising
D) franchising
63) PEC Enterprises is based in the U.S. and produces plastic cooking utensils at plants in Taiwan and India. All operations are coordinated from the firm’s U.S. headquarters. PEC Enterprises is most likely a(n) ________.
A) franchiser
B) export/import firm
C) transnational corporation
D) multinational corporation
D) multinational corporation
64) The functional areas in global human resource management are unlike those in domestic human resource management because of cultural and economic differences around the world.
a. true
b. false
a. true

Best Guess
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65) In which country can prospective employers ask job applicants to report personal characteristics such as age and marital status?
A) United States
B) India
C) United Kingdom
D) all of the above
B) India

Best Guess

66) All of the following are national/cultural values EXCEPT ________.
A) job satisfaction
B) masculinity/feminity
C) accomplishing indulgence/restraint
D) individualism/collectivism
A) job satisfaction

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67) Which of the following statement best describes a masculine culture in modern times?
A) Masculine cultures place high value on achievement, material award, and assertiveness.
B) Masculine cultures emphasize quality of life and assertiveness
C) Maintaining impersonal relationships to promote group productivity.
D) Masculine cultures emphasize taking on new experiences and seeking material reward.
A) Masculine cultures place high value on achievement, material award, and assertiveness.

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68) China’s labor force consists of a multitude of older workers for the following reason: ________.
A) communism favors taking care of younger citizens by having parents and grand parents employed
B) economic growth has led employers to favor workers with greater experience
C) it is more common for Chinese citizens to stay in school longer than citizens of other countries
D) Chinese government’s one-child policy has left a substantial gap in younger generations
D) Chinese government’s one-child policy has left a substantial gap in younger generations

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69) Murphy Enterprises recently acquired a controlling interest in Mexico’s leading clothing retailer. Murphy plans to open additional retail stores in the next three years. Some of Murphy’s top executives advocate the idea of transferring U.S. managers to Mexico to oversee the construction and opening of the new stores. Another group of Murphy executives believe that host-country nationals should manage the project. Which of the following best supports a decision to fill management positions with expatriates?
A) Murphy needs to ensure that Mexico operations are closely linked to headquarters.
B) Most Murphy expatriates resign within one year of their return to the United States.
C) Murphy wants to develop close community relationships in Mexico.
D) Employees hired by Murphy are provided extensive training.
A) Murphy needs to ensure that Mexico operations are closely linked to headquarters.
70) Murphy Enterprises recently acquired a controlling interest in Mexico’s leading clothing retailer. Murphy plans to open additional retail stores in the next three years. Some of Murphy’s top executives advocate the idea of transferring U.S. managers to Mexico to oversee the construction and opening of the new stores. Another group of Murphy executives believe that host-country nationals should manage the project. Which of the following questions is LEAST relevant to the decision to fill management positions in Mexico with expatriates or host-country nationals?
A) What are Murphy’s anticipated relocation costs for using expatriates?
B) What degree of corporate control does Murphy want in Mexico?
C) What is the global safety and health record for Murphy?
D) What is the attrition rate for Murphy’s expatriates?
C) What is the global safety and health record for Murphy?
71) Murphy Enterprises recently acquired a controlling interest in Mexico’s leading clothing retailer. Murphy plans to open additional retail stores in the next three years. Some of Murphy’s top executives advocate the idea of transferring U.S. managers to Mexico to oversee the construction and opening of the new stores. Another group of Murphy executives believe that host-country nationals should manage the project. Which of the following best supports a decision to fill management positions in Mexico with host-country nationals?
A) Murphy’s marketing department created a new advertising campaign for the Mexican audience.
B) Murphy’s HR department is translating the firm’s e-learning programs from English to Spanish.
C) Murphy plans to direct operations in Mexico from the firm’s U.S. headquarters.
D) Murphy is establishing a fully functioning HR department in Mexico.
D) Murphy is establishing a fully functioning HR department in Mexico.
72) Jorge, a Mexican citizen, works for Ford Motor Company at the firm’s factory near Mexico City. Jorge would most likely be categorized as a(n) ________.
A) host-country national
B) third-country national
C) expatriate
D) operant
A) host-country national
73) All of the following are primary HR concerns associated with ethnocentric staffing EXCEPT ________.
A) handling repatriation issues
B) selecting experienced local managers
C) developing global compensation packages
D) training managers for foreign assignment
B) selecting experienced local managers
74) Tyler is a corporate HR manager at a global corporation that uses the polycentric staffing approach. Which of the following most likely describes the focus of Tyler’s job?
A) handling adjustment issues when home-country nationals return from assignment
B) coordinating relevant activities with their counterparts in each foreign operation
C) developing appropriate expatriate compensation packages
D) selecting and training managers for foreign assignments
B) coordinating relevant activities with their counterparts in each foreign operation
75) Which of the following is NOT a characteristic of the regiocentric staffing approach?
A) Each region develops a common set of employment practices.
B) Promotions from the region to headquarters rarely occur.
C) Each region actively recruits third-country nationals.
D) Some autonomy exists in regional decision making.
C) Each region actively recruits third-country nationals.