Multiple Choice Answers


1. Which of the following is a correct statement about executive search firms?
A. Executive search firms almost exclusively find new jobs for people who are already employed.
B. Executive search firms aren’t subject to the requirements of Title VII.
C. Executive search firms work almost exclusively with high-level, unemployed executives.
D. Executive search firms typically require the person being placed to make the initial contact with the prospective employer directly.

2. Which of the following tests assesses how well a person can acquire skills and abilities?
A. Achievement
B. Personality inventories
C. Cognitive ability
D. Aptitude

3. Which of the following correctly describes a phased-retirement program?
A. Giving older employees a certain time limit to voluntarily retire
B. Laying off older employees in small batches
C. Giving lucrative incentives to a large number of older employees so that they voluntarily retire
D. Reducing the number of hours the older employees work

4. The steps required to properly execute a workforce utilization review are
A. tremendously varied from organization to organization.
B. identical to the steps in the generic human resource planning process.
C. essentially the same as those involved in job analysis.
D. essentially the same as those involved in the strategic planning process.

5. Employers should ensure that their drug-testing programs conform to three of the following guidelines. Which is not a guideline to which employers should ensure their drug-testing programs conform?
A. The testing should be routinely administered to all technical and managerial functions across the organization.
B. The employer should send the reports of the results to applicants along with information on how to appeal and retest.
C. The testing should be conducted in an environment that isn’t intrusive and allows for strict confidentiality of results.
D. The employer should use drug testing for jobs that involve safety hazards.

6. Which of the following personnel policies is not relevant to recruitment?
A. Internal versus external recruiting
B. Administrative procedures
C. Image advertising
D. Lead-the-market pay strategies

7. According to the Training 2007 Industry Report, which training task was outsourced the most?
A. Instruction
B. Learner support
C. Need analysis
D. Custom content

8. Three of the following statements about the effects of downsizing are true. Which one is false?
A. Downsizing efforts guarantee an increase in organization competitiveness.
B. Downsizing efforts eliminate people who turn out to be irreplaceable assets.
C. Employees who survive downsizing often become narrow-minded and risk-averse.
D. Short-term cost savings often turn negative in the long term.

9. The general method of establishing the validity of a selection method by showing that there’s an association between scores on the selection measure and scores for job performance is called
A. reliability of the measurement and validation.
B. criterion-related validation.
C. content validation.
D. split-half estimate of validation.

10. The long-term success of diversity training is characterized by
A. making sure that HRM practices meet standards of equal employment opportunity laws.
B. unstructured programs.
C. training that’s tied to business objectives, such as understanding customers.
D. the number of minority or disabled employees on staff within the organization.

11. In personnel forecasting, an effective HR professional tries to
A. anticipate trends within the HR field which are most likely to affect the success of current company operations.
B. predict the number and types of legal challenges the company is likely to face within the year.
C. determine the supply of and demand for various types of human resources.
D. develop HR policies and practices in response to anticipated moves by major competitors.

12. _______ identifies the tasks, knowledge, skills, and behaviors that training should emphasize.
A. Training-method analysis
B. Task analysis
C. Organizational analysis
D. Person analysis

13. Which of the following correctly describes a learning management system?
A. The process of evaluating the organization, individual employees, and employees’ tasks to determine what kinds of training, if
any, are necessary
B. A process of systematically developing training to meet specified needs
C. A process for determining the appropriateness of training by evaluating the characteristics of the organization
D. A computer application that automates the administration, development, and delivery of training programs

14. Which of the following is found in a typical behavior-modeling session?
A. Videotape of a model performing the key behavior, planning session, coaching realistic game, and practice opportunities
B. Presentation of key behaviors, videotape of a model performing the key behavior, participation in a case study group, and
planning session
C. Lecture, videotape of a model performing the key behavior, on-the-job coaching, and practice opportunities
D. Presentation of the key behaviors, videotape of a model performing the key behavior, role-plays, and a planning session

15. Which of the following is a permissible question for applications and interviews?
A. Do you have children?
B. Do you have any disabilities?
C. What schools have you attended?
D. When did you attend high school?

16. To increase the readability of training materials, one should
A. combine two or more sentences into one long sentence
B. combine two or more paragraphs into one long paragraph.
C. add checklists and illustrations to clarify the text.
D. replace concrete words with abstract words.

17. To select a training service, the organization mails a(n) _______ to several vendors.
A. training-needs analysis
B. affirmative-action plan
C. request for training
D. request for proposal

18. Benefits of establishing objectives for a training program include three of the following. Which is not a benefit of establishing objectives for a training program?
A. Establishing objectives provides a basis for measuring the success of the program.
B. Objectives help HR professionals identify the situational constraints within the organization.
C. The training program will be more focused and more likely to succeed.
D. Employees learn best when they know what the training is supposed to accomplish.

19. Imagine that you manage a car dealership affiliated with one of the big three U.S. automakers. Given the increasing complexity and variety of today’s automobiles, it’s impossible to train your mechanics on the details of every potential repair problem. Thus, in cooperation with corporate headquarters, you have a training program whereby mechanics learn the basis of engine, emission, and other types of repair, but in the case of a particular problem, seek expert advice through an online computer application program. This approach is known as
A. an experiential behavior-modeling program.
B. a virtual-reality simulation training program.
C. e-learning.
D. an electronic performance support system.

20. The first step in the human resource planning process is
A. program implementation.
B. program evaluation.
C. goal setting.
D. forecasting.


1. Three of the following are trends in executive education. Which one is not a trend in executive
A. Distance learning is being used more frequently by companies.
B. Formal educational programs are being supplemented with other developmental activities.
C. Employers and education providers are developing short courses with content designed specifically for the audience.
D. Due to increasing costs, employees are increasingly being asked to cover tuition and other program-related costs.

2. Which of the following statements illustrates effective feedback?
A. “Overall, your performance has been satisfactory.”
B. “You’ve become careless; you came in late three times last week.”
C. “I don’t see any progress from the last review; you’re lazy.”
D. “You’ve achieved 100 percent of your target in less than six months.”

3. Total quality management differs from traditional performance measurement in that TQM
A. assesses both individual performance and the system within which the individual works.
B. has an external, rather than an internal, focus.
C. focuses on support decisions about work assignments, training, and compensation.
D. is a top-down review process.

4. Why would an employee seek a downward move?
A. To have greater challenges
B. To learn different skills
C. To increase salary and visibility
D. To have more authority

5. Which of the following statements correctly describes in-basket exercises?
A. In-basket exercises are paper-and-pencil tests designed to measure participants’ communication styles and skills.
B. In-basket exercises require teams of five to seven employees to work together to solve assigned problems within a certain time period.
C. In-basket exercises simulate the administrative tasks of a manager’s job, using a pile of documents for the employee to handle.
D. In-basket exercises require participants to take the part of a manager or employee in a situation involving the skills to be

6. Which of the following describes managing the behavior of employees through a formal system of
feedback and reinforcement?
A. Organizational behavior modification
B. Behavioral-observation scales
C. Critical incidents
D. Behaviorally anchored rating scales

7. Which of the following is a false statement about using peers as a source of performance information?
A. Peers are more willing participants in reviews used for employees.
B. Peers have expert knowledge of job requirements and bring a unique perspective to the evaluation, often resulting in extremely
valid assessments of performance.
C. Peer ratings, according to research, are highly influenced by friendships.
D. Peer ratings are particularly useful when supervisors don’t have the opportunity to observe employees.

8. Explanation, consideration, and empathy are key determinants of
A. procedural justice.
B. perceptual justice.
C. alternative dispute resolutions.
D. interactional justice.

9. A team of five to seven employees is assigned a problem and must work together to solve it within a
certain time period. Which of the following techniques is being used?
A. Discussion
B. In-basket exercise
C. Role playing
D. Leaderless group discussion

10. Which of the following is a false statement about the glass ceiling?
A. Research shows male managers receive more assignments involving high levels of responsibility than do female managers of similar ability and managerial level.
B. The barrier may be due to a lack of access to training programs, developmental job experiences, and developmental relationships, such as mentoring.
C. Research has found gender differences in accessing job experiences involving transitions and creating change.
D. The barrier may be due to stereotypes that hinder the development of women and minorities.

11. In which performance technique are managers given three performance rating scales per dimension and asked to indicate whether the employee’s performance is above (+), at (0), or below (-) the statements?
A. Graphic-rating scale
B. Mixed-standard scale
C. Behavioral-observation scale
D. Behaviorally anchored rating scale

12. The step in the career management process in which employees receive information about their skills and knowledge and where these assets fit into the organization’s plans is called
A. goal setting.
B. reality check.
C. self-assessment.
D. action planning.

13. Generally speaking, the contents of employees’ e-mail and voice-mail messages on companies’ systems are
A. not private, protected communications.
B. protected and private only if they’re directed to parties outside of the company.
C. private, protected communications.
D. protected and private if job-related.

14. An employee refuses an employer’s request to falsify the contents of a report to the EEOC. The
employer subsequently discharges the worker for “not following orders.” In a wrongful-discharge suit, the employee is likely to argue which of the following exceptions to the at-will-employment doctrine?
A. Equal employment
B. Public policy
C. Reverse discrimination
D. Implied contract

15. The Job Descriptive Index measures three of the following facets of employee satisfaction. Which is
not measured by the Job Descriptive Index?
A. Pay
B. Coworkers
C. Customers
D. The work itself

16. To improve performance of underutilizers, managers should
A. link rewards to performance outcomes.
B. offer temporary assignments for skill development.
C. demote them from their current position.
D. withhold pay increases.

17. If peer review doesn’t lead to a settlement, a neutral party from outside the organization hears the case and tries to help the people in conflict arrive at a settlement. This process is called
A. open-door policy.
B. mediation.
C. progressive discipline.
D. arbitration.

18. What is the employee’s responsibility in the self-assessment stage of career management?
A. Identify opportunities and areas of needed improvement
B. Provide assessment information to identify strengths, weaknesses, interests, and values
C. Communicate performance evaluations
D. Identify steps and a timetable to reach goals

19. Which of the following statements about benchmarks is false?
A. The instrument measures 16 skills and perspectives, such as how well managers deal with subordinates, acquire resources, and create a productive work climate.
B. While managers enjoy completing the instrument and find the results interesting, research is inconclusive regarding the skills measured and their relationship to on-the-job performance.
C. The items measured by benchmarks are based on research into the lessons that executives have learned as a result of critical events within their careers.
D. The managers’ supervisors, their peers, and the managers themselves must complete the instrument to ensure its effectiveness.

20. HR professionals can best help organizations avoid and defend against charges of wrongful discharge
through all of three following activities. Which of the following is not a good way for HR professionals to
help organizations avoid and defend against charges of wrongful discharge?
A. Writing and reviewing employee handbooks to avoid statements that might be interpreted as employment contracts
B. Training managers to avoid making promises before or during employment that imply job security
C. Designing jobs with low mental and physical skill demands to ensure low employee turnover
D. Establishing and communicating policies for handling employee misbehavior


1. In 2003, a company employee received an option to purchase the company’s stock at $45 per share. If
the stock is trading at $40 a share in 2005, the employee will most likely
A. try changing the price in the original option agreement to improve the stock’s performance.
B. exercise the option, receiving a gain of $40.
C. exercise the option, receiving a gain of $5.
D. hold on to the option, hoping the stock price will increase in the future.

2. Three of the following are vesting rights. Which is not a vesting right?
A. In most cases, a waiting period of no more than five years or a three- to seven-year period, with 20 percent in the third and
each year thereafter
B. The right to a pension at retirement
C. The right to a pension regardless of whether or not the employee remains with the employer until retirement
D. A guarantee that the employer won’t switch the pension plan from defined-benefit to defined-contribution plan

3. Quality guru W. Edwards Deming advocates the use of
A. stock options.
B. group incentives.
C. merit-pay systems.
D. piecework incentives.

4. Which of the following is a false statement about Social Security benefits?
A. Eligibility rules must be met to receive benefits.
B. Benefits are taxed as ordinary income at both the federal and state level.
C. Employers and employees share the cost of the program through a payroll tax.
D. Workers who meet requirements receive retirement benefits according to age and earnings history.

5. Since the 1990s, the trend in larger public companies is to grant stock options to
A. all top and middle managers.
B. all employees.
C. all exempt employees.
D. only top management.

6. Which level of child care is most frequently provided by organizations with 100 or more employees?
A. The organization operates a day-care center at or near the workplace.
B. The organization offers no support within this area.
C. The organization provides vouchers or discounts for employees to use at existing child-care facilities.
D. The organization supplies and helps employees collect information about the cost and quality of available child care.

7. From which source do most retirees receive the largest percentage of their retirement income?
A. Social Security
B. Earnings from personal assets
C. Private pensions
D. Disability insurance

8. Which of the following is a false statement about key jobs?
A. Key jobs are jobs on which it’s possible to obtain market-pay survey data.
B. Key jobs have many incumbents within the organization.
C. Key jobs are common to many organizations.
D. Key jobs are relatively stable in content.

9. In response to the growing concern over ethical issues surrounding incentive pay for executives, three of the following actions have been taken. Which action has not been taken in response to the growing concern over ethical issues?
A. Imposing strict limits on insider trading
B. Requiring companies to more clearly report executive compensation levels and the company’s performance relative to that of
C. Using the balanced-scorecard to design executive pay and incentives
D. Limiting the amount companies may deduct for executive and performance-related pay to no more than $1 million

10. Which of the following is a false statement about the Fair Labor Standards Act?
A. Nonexempt employees are covered by FLSA and include most hourly workers.
B. The overtime rate under the FLSA is one and a half times the employee’s hourly rate, including any bonuses and piece-rate payments.
C. The FLSA permits a subminimum training wage equal to 85 percent of the minimum wage.
D. The FLSA requires federal contractors to pay prevailing wage rates.

11. An organization is adjusting pay to better match a local labor market in which the cost of living is rising sharply. These adjustments are called
A. green-circle rates.
B. rank-and-file adjustments.
C. pay differentials.
D. bonuses.

12. Three of the following are objectives of the unemployment insurance program. Which is not an
objective of the unemployment insurance program?
A. To preserve investments in worker skills by providing income during short-term layoffs
B. To offset lost income during involuntary unemployment
C. To offset lost income during a labor dispute
D. To provide an incentive for employers to stabilize employment

13. The Scanlon plan is a variation of which type of incentive?
A. Individual
B. Gainsharing
C. Profit sharing
D. Merit pay

14. Organizations being squeezed between labor and product markets need to
A. couple pay policies with creative HR, production, and marketing management to make workers’ contributions more valuable and products more profitable.
B. move their operations overseas.
C. move from job-based pay structures to skill-based pay systems, where employees are empowered and jobs are more enriched.
D. change their strategic mission and direction, moving to more attractive industries.

15. On average, out of every dollar spent on compensation, about _______ cents go to benefits.
A. 17
B. 30
C. 45
D. 8

16. An employee produces 10 components in an hour and earns $8.00 ($.80 × 10), while an employee who produces 12 components per hour earns $9.60 ($.80 × 12). This arrangement is an example of a _______ plan.
A. differential-piece-rate
B. straight-salary
C. straight-piecework
D. commission
17. Three of the following are types of defined-contribution pension plans. Which of the following is not a type of defined-contribution pension plan?
A. Money purchase plan
B. Gainsharing plan
C. Employee stock option plan
D. Section 401(k) plan

18. Which act permits a lower training wage, which employers may pay to workers under the age of 20
for a period of up to 90 days?

19. Pay specifically designed to energize, direct, or control employees’ behavior is known as
A. incentive pay.
B. indirect pay.
C. empowerment pay.
D. exempt pay.

20. If employees conclude that they’re underrewarded, they’re likely to make up the difference in three of the following ways. Which is not a way in which employees who feel underrewarded are likely to make up the difference?
A. Finding a way to reduce their outcomes
B. Reducing their inputs
C. Withdrawing by leaving the organization
D. Refusing to cooperate


1. Which of the following is a correct statement about an organizing campaign?
A. During an organizing campaign, a union is automatically recognized if most number of employees agree.
B. During an organizing campaign, only one union can appear on the ballot.
C. During an organizing campaign, the NLRB conducts a secret-ballot election if only 30 to 50 percent of employees signed cards.
D. During an organizing campaign, unions determine the appropriate bargaining unit.

2. Under the Taft-Hartley Act, three of the following are unfair labor practices on the part of the union.
Which is not an unfair labor practice on the part of the union, under the Taft-Hartley Act?
A. Mass picketing in such numbers that nonstriking employees physically can’t enter the workplace
B. Threatening employees with physical injury or job loss if they don’t support union activities
C. Calling or visiting employees at home for the purpose of promoting union membership or activities
D. Terminating an existing contract and striking for a new one without notifying the employer, the FMCS, and the state mediation service

3. The economic approach to evaluating the effectiveness of HR practices focuses on
A. determining the dollar value of a program’s costs and benefits.
B. reviewing the various outcomes of the HR functions.
C. comparing the company’s HRM costs to those of major competitors.
D. determining whether the HR practice had the intended effect.

4. According to research, organizations that introduce high-performance work practices usually experience increases in three of the following areas. Which is not an area in which an organization can expect to experience an increase as a result of introducing high-performance work practices?
A. Long-term financial performance
B. Employee satisfaction
C. Employee turnover
D. Productivity

5. Which of the following is a false statement about international labor relations?
A. In countries such as Germany, management has an incentive to build cooperative relationships because labor representatives participate in company decision-making activities and sit on companies’ boards of directors.
B. U.S. organizations, in comparison with European organizations, exert more centralized control over labor relations in the various countries where they operate.
C. Most U.S. organizations, in contrast to European organizations, bargain with a union representing an entire industry’s employees, rather than with local union.
D. Day-to-day decisions about labor relations are usually handled by each foreign subsidiary.

6. Which of the following is a false statement about feedback across national boundaries?
A. In Thailand, managers avoid giving negative feedback to employees because they fear this would cause them to have bad karma.
B. Employees around the world appreciate positive feedback.
C. The content of the feedback is more important than the manner of giving it.
D. In Mexico, managers are expected to provide positive feedback before focusing the discussion on behaviors the employee needs to improve.

7. High-performance work systems emphasize three of the following. Which is not emphasized by high performance work systems?
A. Career management
B. Development
C. Silo thinking
D. Training

8. Which of the following is a correct statement about inpatriates?
A. Inpatriates are employees from countries other than the parent country placed in facilities of other countries.
B. Inpatriates are employees transferred from a company’s site in one state to another state within the United States.
C. Inpatriates are employees from one division of the company being moved to another division.
D. Inpatriates are foreign employees who come to the United States to work for the U.S.-based parent company.

9. Which of the following statements about expert systems is false?
A. Expert systems help avoid the errors that can result from fatigue and decision-making biases.
B. Expert systems deliver high-quality decisions at a high cost.
C. Expert systems provide consistency in decision making.
D. Expert systems can increase efficiency by enabling fewer or less-skilled employees to do work that otherwise would require many highly skilled employees.

10. When negotiating their first labor contract, over _______ of parties are unable to reach an agreement.
A. one-fourth
B. one-half
C. one-third
D. three-fourths

11. Union membership in the United States peaked in the
A. 1980s.
B. 1990s.
C. 1950s.
D. 1960s.

12. Three typical questions asked for assessing candidates for overseas assignments about family
considerations are among the following. Which is not a typical question about family considerations for an overseas assignment candidate?
A. How many moves has the family made in the past among different cities or parts of the United States?
B. Can the candidate work without supervision?
C. How is each member of the family reacting to this possible move?
D. What is the spouse’s goal in this move?

13. Which of the following is not an HRM application?
A. Customer relationship support systems
B. Decision support systems
C. Expert systems
D. Transaction processing

14. Which of the following is a false statement about grievance procedures?
A. Grievance procedures generally have several steps prior to arbitration.
B. The majority of grievances are settled during the earlier steps of the process.
C. Under the duty of fair representation, the union must give equal representation to all members of the bargaining unit, whether or not they actually belong to the union.
D. The merits of an arbitrator’s ruling can’t be appealed to the courts.

15. Recruitment and selection activities within a high-performance organization include three of the
following. Which is not a recruitment and selection activity within a high-performance organization?
A. Finding employees who innovate, share ideas, and take initiative
B. Selection methods that include group interviews, open-ended questions, and psychological tests
C. Finding employees who are enthusiastic about and able to contribute to teamwork, empowerment, and knowledge sharing
D. Selection methods that concentrate on identifying technical skills only

16. Which of the following is not a measure for an HRM audit for staffing?
A. Fairness of existing job evaluation system in assigning grades and salaries
B. Anticipation of personnel needs
C. Treatment of applicants
D. Timeliness of referring qualified workers to line supervisors

17. Which of the following is a false statement about an HRIS?
A. HR staff can retrieve information about specific applicants.
B. It lets a user sort the data by any of the fields.
C. Separate files can be linked by common elements.
D. The system is designed to serve only the HR staff.
18. _______ promotes respect for past tradition and for fulfilling social obligations in the present.
End of exam
A. Femininity
B. Uncertainty avoidance
C. Short-term orientation
D. Large power distance

19. Which of the following employee groups is most likely to be excluded by the NLRB from participating
in organizing activities and being a member of the bargaining unit?
A. Employees with certain supervisory duties
B. Employees covered by multiple employers
C. Employees who have been on strike for economic reasons for less than one year and who have been replaced by other employees
D. Employees in multiple facilities within a single employer

20. Which of the following is a false statement about fact-finding as an impasse resolution procedure?
A. A fact-finder reports on the reasons for the dispute.
B. A fact-finder’s findings are made public.
C. A fact-finder’s findings are binding on the parties.
D. A fact-finder is often used for negotiations with governmental bodies.