Final Exam Flashcards
Which of the following is an example of indirect financial compensation (employee benefits)?
paid vacation
Direct financial compensation consists of the pay that a person receives in the form of wages, salaries, commissions, and health benefits.
true
Which type of compensation increases an employee’s base pay and contributes to cost control over time?
merit pay
John works at a company that uses a variety of heavy machines. John knows how to operate three of the machines, and if he learns how to use another one, his pay will increase. Which type of compensation plan is most likely used by John’s employer?
skill-based pay
The rationale for adopting seniority pay plans is described by which theory?
human capital theory
Which of the following is a disadvantage associated with team-based incentives?
Exemplary performers become disgruntled and quit.
Which type of profit-sharing plan places company contributions in an irrevocable trust and credits individual employees’ accounts?
deferred plan
When the United Auto Workers negotiate with GM and Ford for higher wages, which legislation supports the union’s right to engage in collective bargaining?
National Labor Relations Act
What is the primary by-product of job analysis?
job description
How many universal job factors are there with the factor comparison job evaluation method?
5
The classification method of job evaluation is the simplest job evaluation method and requires comparing a job description with a class description.
true
Firms which pay below the average labor market price for jobs will most likely have ________.
higher turnover rates
In determining pay grades, each dot on a scatter diagram represents ________.
one job
Firms use compensation surveys to determine pay structures.
true
Which of the following is a problem inherent in compensating contingent workers?
internal equity
Benefits are typically unrelated to employee ________.
productivity
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?
Is the employee stock option plan risky?
As a rule, employees receive benefits because of their productivity in an organization.
false
Benefits do not generally serve as motivation for improved performance.
false
Which of the following laws requires that employers and employees pay equally for Social Security retirement benefits?
Federal Insurance Contribution Act
Health care benefits represent the most expensive cost in the area of indirect financial compensation. Which of the following is NOT a factor that has combined to create this situation?
inefficient administrative processes
Disability insurance, survivors’ benefits, Medicare, and unemployment insurance are provided by and administered by the Social Security Administration.
true
Which law set the criteria for distinguishing between qualified and nonqualified plans?
Employee Retirement Income Security Act
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?
Last minute absences are a significant problem among Carson employees.
Which law gives employees the opportunity to temporarily continue their health insurance coverage if they are terminated from their job?
Consolidated Omnibus Budget Reconciliation Act
Anne, who has a preexisting medical condition, recently changed jobs. Which legislation was passed to protect individuals such as Anne?
Health Insurance Portability and Accountability Act
The primary reason for enacting ERISA was to ________.
strengthen current and future retirement programs
All of the following are true about the Patient Protection and Affordable Care Act of 2010 EXCEPT that ________.
children over 21 cannot remain on their parents’ policy
A 401(k) plan is a defined benefit plan in which employees may defer income up to a maximum amount allowed.
false
________ are effective programs that focus on solving any personal issues that can detract from an employee’s work.
Sabbaticals
Which of the following is typically LEAST useful during the negotiating phase of collective bargaining?
media involvement
Which of the following factors necessitated the need for labor unions?
Great Depression
Factory owners sought out the expertise of mechanical engineers to work with unions to balance the satisfaction of workers with efficiency goals.
false
What was one of the major outcomes of the labor strike that happened with the strike against four Johnson Controls Inc. factories?
production of the Chevy Trail Blazer was shut down
The basic element in the structure of the American labor movement is the national union.
false
A group of employees recognized by an employer as appropriate for representation by a labor organization for purposes of collective bargaining is called a ________.
bargaining unit
Which section of the labor agreement usually appears at the beginning?
recognition
Peterson Manufacturing and the local steelworkers’ union are having a negotiation breakdown. Peterson’s management is keeping employees out of the workplace and running the operation with temporary replacements. Which type of strategy is most likely being used to overcome the negotiation breakdown?
lockout
Todd, a manager at Dexter Manufacturing, has received a grievance filed by a group of his subordinates who are union members. Which of the following most likely indicates that filing a grievance is appropriate in this situation?
The employees assert that Dexter failed to provide them with adequate personal protection equipment.
Todd, a manager at Dexter Manufacturing, received a grievance filed by a group of his subordinates who are union members. Which of the following most likely indicates that the grievance could NOT be settled informally?
A signed copy of the grievance is discussed during a meeting between the HR manager and union officials.
Which of the following made it possible to decertify a union?
Taft-Hartley Act
When a union loses its right to act as the exclusive bargaining representative of a group of employees, the process is referred to as ________.
decertification
Which of the following established the basic framework for collective bargaining in federal government agencies?
Executive Order 10988
Which Act established the Federal Labor Relations Authority?
Civil Service Reform Act
The Federal Mediation and Conciliation Services established the process for union decertification.
false
Which of the following is NOT an exception to the at-will doctrine?
favoritism
Discipline refers to the ________.
state of employee self-control present in an organization
Which of the following is a drawback to the hot stove approach?
lacks flexibility
Maria is chronically tardy to work. In response, Maria’s manager has given Maria time off with pay to think about whether she wants to follow the rules and continue working for the company. Which disciplinary method is Maria’s manager most likely using?
disciplinary action without punishment
If the circumstances surrounding all disciplinary action situations were the same, the hot stove approach would be effective at all times.
true
Taking disciplinary action against a worker in the presence of others is essential to providing the necessary legal documentation.
false
Which group is typically the most vulnerable to termination?
lower level managers
Parson Enterprises is a unionized organization. An employee at Parson would most likely learn how demotions are handled by ________.
reading the labor-management agreement
Dixon Enterprises is a unionized organization. An employee at Dixon would most likely learn how demotions and layoffs are handled by ________.
reading the labor agreement
Firing employees is typically easier to do at unionized firms than at union-free firms.
false
Which of the following is a complaint officer with access to top management who hears employee complaints, investigates, and recommends appropriate action?
ombudsperson
Johnson Enterprises is recruiting candidates to fill the new position of ombudsperson. Johnson is most likely adding this position to ________.
handle internal problems before they become lawsuits
Alternative dispute resolution is less adversarial than litigation, but it tends to be more costly.
false
Employees are primarily transferred for all of the following reasons EXCEPT to ________.
reward outstanding performance
All of the following are most likely identified during exit interviews EXCEPT ________.
effective disciplinary procedures
What is the top leading cause of workplaces injuries and their associated costs?
overexertion
Thompson Manufacturing has been designated a recalcitrant employer by OSHA. As a result, Thompson will most likely ________.
experience numerous inspections
Within the Department of Labor, OSHA enforces ________ for workplace safety, the environment, consumer products, the financial system, and other areas.
whistleblower protection provisions
OSHA can issue warnings, but it does not have the power to issue fines.
false
The Severe Violator Enforcement Program focuses on employers that have repeatedly violated safety regulations.
true
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?
Foley Foods will be hiring new workers for the night shift.
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 most likely undermines the need for a safety program?
All machines at Foley Foods are equipped with safety interlocks.
What results in a detailed written procedure for safely completing many tasks within a plant?
job hazard analysis
Which of the following is most likely to reduce the risk of developing carpal tunnel syndrome?
resting the hand and wrist in a neutral position
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.
negligent hiring
What state has a law that permits employees to take up to three days leave from work in any 12-month period for a variety of activities connected with domestic violence issues?
Florida
Negligent hiring is the liability an employer may incur when a company keeps persons on the payroll whose records indicate a strong potential for wrongdoing and fails to take steps to defuse a possibly violent situation.
false
Raj, a software designer, has been frequently absent from work lately. In addition, his quality of work has declined as well as his ability to manage tasks in a timely manner. These symptoms are most likely indicative of ________.
stress
George, a project manager at a publishing firm, is experiencing many stress-related symptoms. Which of the following is the best advice an HR manager could give George?
Recognize your own limitations.
Burnout and stress are synonymous terms for employee exhaustion and disillusionment.
false
