Answers to Review Questions

Chapter 2: Core Knowledge Requirements for HR Professionals

1. A. A needs assessment is conducted to determine what is required to solve a problem, including whether training is the appropriate intervention. If, for example, network crashes are the cause of the low productivity, training will not solve the problem. Lesson plans (B) are created during the design stage of training discussed in Chapter 5. Talking to other managers to validate the situation (C) may be included in the needs assessment along with other factors. The training method is selected (D) during the development phase discussed in Chapter 5.
2. C. A talent-management program is a comprehensive strategy to workforce management. This approach includes planning for future needs, recruiting qualified candidates, creating compensation and retention strategies, developing employees, managing performance, and cultivating a positive culture. A succession plan (A) is part of the workforce-planning element of a talent-management program. Knowledge management (B) focuses on building systems that retain corporate knowledge accessible as needed by the organization.
3. B. A business case lays out the desired result of an action or program, presents alternative solutions, describes possible risks from both implementing and not implementing the action, and defines the criteria used to measure success. ROI (A) and CBA (C) may be included as part of the business case, and a SWOT analysis (D) may have identified the need for a program or action.
4. C. Maslow's hierarchy of needs is a theory developed to explain what motivates workers. The levels are physiological, safety, social, esteem, and self-actualization. Growth is a need level identified by Alderfer in the ERG theory, which is based on Maslow's work. Social, safety, and self-actualization are all from Mazlow; growth is Alderfer.
5. B. Assuming that the nature of the previous conversations with Rachel has been informal, the first step is a verbal warning, where Rachel is advised that this is the first step in the disciplinary process and failure to improve will lead to further disciplinary action, up to and including termination. The first written warning (A) takes place after a verbal warning. A decision-making day (C) is usually the final step prior to termination. Coaching (D) is an informal means of talking to employees about performance problems and generally occurs prior to a verbal warning.
6. B. A diversity initiative is designed to increase diversity in an organization. Diversity training educates employees about the cultural and social differences in other cultures and is designed to increase the comfort level of employees (A and D). A benefit of diversity is increased organizational creativity (C).
7. C. Data for employee expense reports is maintained by the accounting department. An HRIS system can be used to collect and track employee data for various uses, including EEO-1 reporting, time and attendance, and other employee records.
8. B. The median is the middle value when values are arranged from high to low. Half the numbers are higher than the median; half are lower. The mean (A) is calculated by adding up the values and dividing by the number of values. The mode (C) is the value that occurs most frequently in a set of numbers. The moving average (D) keeps data current by dropping the oldest data when new data is added.
9. A. The correct focus of a job analysis is the job itself, not the incumbent in the job. Performance management focuses on the person in the job (B). An analysis may use a number of sources in addition to task inventories and questionnaires (C), including interviews, observation, and supervisory input. The required qualifications should be related to the essential functions of the job to avoid complaints of discrimination (D).
10. B. As part of the risk assessment, inconsistent policies have been identified (A), a plan for reducing risk has been developed (C), and management has reviewed the plan for reducing risks (D). After the assessment is complete, the company may decide to purchase insurance, self-insure, or mitigate the risk by making operational changes.
11. C. Cultural competence considers the diversity efforts necessary to achieve corporate aims such as reflecting the population and increasing the applicant candidate pool. It measures the ability of a company to function effectively in the context of these diverse beliefs. Conflict management training is one example of an HR behavior that addresses an organization's cultural competency.
12. A. The ability to interpret and apply information related to internal sources allows HR to respond to specific elements of an organization's strategic plan. For example, understanding how an HRIS system can integrate with an accounting database is one example of cross-functional strategic decisions. Scanning the legal and regulatory environment (B), analyzing industry changes (C), and staying abreast of technological advances (D) are all examples of external forces that impact a strategic plan.
13. D. A multigenerational workforce is one example of the diversity represented in the workplace today. Bringing in new points of view for strategic decision making and needs identification (A), the ability to access the knowledge of a broad range of workers (B), and reflecting the ever-changing face of the customers (C) are three of the benefits of having an older workforce. A multi-generational workforce does not directly impact organizational productivity.
14. C. Electronic or e-learning encompasses many forms of synchronous and asynchronous training (D). Mobile and self-directed learning (A and B) are two examples of e-learning principles. E-learning is discussed in more detail in Chapter 5.
15. D. The use of a variety of tools to gather employee feedback enables employers to measure employee levels of engagement. The use of anonymous surveys, topical focus groups, and employee interviews all provide insight into both individual and organizational needs. Intuition is rarely a legally defensible methodology for use in HR, and focus groups are not the best choice for measuring individual needs.
16. A. An income statement, also referred to as a profit and loss statement, provides financial information about revenue and expenses in a set reporting period. The statement of cash flow (B) communicates the ways in which monies came in and out of the organization, and the balance sheet (C) is a thumbnail sketch of assets, liabilities, and equity at a certain time.
17. B. A product-based structure is useful for an organization with multiple well-defined product lines. The structure and subsequent job responsibilities are divided by product line, rather than shared company-wide. The functional structure (A) is the more traditional format where the organization is divided by departments such as production and sales. A divisional structure (C) groups the company based on market or industry, useful for decentralized divisions. A flat line structure (D) is a different term for a seamless organization, one in which hierarchies do not exist.
18. D. Manufacturers, importers, processors, and distributors of toxic chemicals must keep records related to hazardous material exposures, including claims of occupational diseases, for 30 years from the report date.
19. C. Job analysis and the subsequent job descriptions provide the building blocks for all other HR activities. Clearly identifying the output and skills necessary to accomplish each job allows for proper EEO compliance (D), job pricing, recruiting, and other HR functions (A and B).
20. B. Measures of central tendency such as mean average, moving average, and weighted average are useful when an organization must include outdated information in its analysis. Typically, more weight is assigned to the more current data; or, as new data is added, older criteria are dropped. This allows for a more accurate reflection of the current condition. A trend analysis (A) compares the movement of a single variable over time, for example, the hiring rate from a single recruiting source. Simple linear regression (C) measures the relationship between two variables, such as how many units employees can produce. All techniques can be used for planning and forecasting purposes.

Chapter 3: Business Management and Strategy

1. C. HR participates in the strategic planning process by providing expertise on attracting, retaining, and managing a qualified workforce. Organization strategies (A) are formulated by the executive team. Each business function participates in the environmental-scanning process (B), gathering information about its area of responsibility. Strategic goals (D) are identified by the executive team during the strategy-formulation phase.
2. A. Corporate restructuring examines individual business units to eliminate redundancy, reduce costs, and increase production. Employee assimilation (B) is accomplished with new-hire orientation and similar programs. Reengineering looks at the entire organization to improve efficiency and increase customer satisfaction (C). In an acquisition, one corporation purchases or trades stock to gain controlling interest in another (D).
3. D. The mission statement describes who the organization is, what it does, where it is going, and how it is different from others. The corporate values statement (A) communicates the executive team's expectations for the way the organization conducts business. Corporate goals (B) describe what the organization plans to achieve in the future. The vision statement (C) is a short, inspirational statement of what the organization will accomplish in the future.
4. C. As an organization becomes more successful during the growth phase, it can afford to provide competitive compensation and benefits for employees. Executive benefit packages (A) are often enhanced during the maturity stage of organizational growth. During the maturity stage, the organization is able to hire new employees with less experience (B) and train them to grow into positions requiring additional experience. Employees work the closest with organization founders (D) during the startup phase.
5. B. The greatest effect of technology is increased worker productivity. Employee morale (A) may be affected positively or negatively by technological improvements but is not the main impact. The cost of living (C) is a function of the cost of consumer goods and is a factor in an environmental scan. Span of control (D) may also be affected by technological improvements, allowing managers to directly supervise a larger number of employees, but it is not the main effect.
6. B. The balanced scorecard ties objectives to performance measurements (A), sets targets (D), and measures how the objectives contribute to organization goals (C). The elimination of unnecessary processes to increase customer satisfaction (B) is the purpose of reengineering.
7. C. An HR audit examines HR policies and procedures for compliance and to determine whether the department is successfully meeting the organization's needs. Evaluating employee skills (A) is part of a SWOT analysis during the strategic planning process. Employee productivity and turnover rates (B) are metrics used to diagnose potential workforce problems. A timeline for changes in the HR department (D) would be included in an HR plan.
8. A. The four p's of marketing are product, price, placement, and promotion, which summarize the responsibilities of the marketing team.
9. A. A SMART goal is specific, measurable, action-oriented, realistic, and time-based.
10. B. Once Congress forwards a bill, the president has 10 days to sign it. A pocket veto occurs when Congress adjourns before the 10 days are up and the president does not sign it. When the president vetoes a bill (A), Congress may try to override it with a two-thirds vote of a quorum in each house. If the bill does not pass, the veto stands. If Congress cannot raise a quorum to override a veto (C), the veto stands. If Congress submits a bill to the president and stays in session (D), the bill becomes law if the president does not sign it within 10 days.
11. C. Mentoring programs are a valuable training tool but do not necessarily reflect a corporate mission, vision, or values when the mentor is outside of the organization. Written policies (A) help an organization mitigate risk by identifying employee rights and responsibilities. Modeling appropriate behavior from the top down (B) shows employees how to act and contributes to the corporate culture. Coaching (D) gives the employee the opportunity to modify and correct behavior in accordance with company guidelines.
12. A. Employee handbooks are one tool used to compile written policies that aid in compliance with various state and federal laws but are not specifically required by any one law or standard.
13. D. An HR audit can serve many strategic and operational purposes. In all three of the other answers, the HR audit allows for a comparison of the current environment to the future desired state.
14. B. Sustainability is behavior that does not deplete the resources used to achieve an outcome. Viable sustainability programs are those that are able to have a regular, systematic impact on resource depletion, thereby reducing waste and increasing efficiencies.
15. D. Corporate responsibility has influence across all HR functions. Examples of CR concepts explored throughout the strategic planning process include worker rights, legal compliance, company culture development, and corporate governance (A, B, C).
16. A. When funding is low due to startup conditions, a decision must be made regarding obtaining the talent necessary to do the work. Because organizations at this stage do not typically have the funds to develop employees from within such as in the growth and maturity stage (B, C), they often must choose which positions are critical to day-to-day operation and outsource the rest.
17. A. An HR budget reflects how many and what types of resources are necessary to accomplish a goal. The addition of employees, costs to train, and the purchase of new equipment are all examples of items that require cash to achieve strategic goals.
18. B. Just-in-time inventory is an inventory-management strategy that purchases smaller amounts of inventory more frequently to reduce inventory and ensure a steady supply of products for distribution.
19. D. A prima facie violation of whistle-blower protection must demonstrate that an employee was engaged in a protected activity, that the employer knew or suspected that the employee was engaged in a protected activity, that the employee suffered an unfavorable employment action, and that the unfavorable action was the result of engaging in a protected activity.
20. B. Creating an HR budget takes into account standard expense items associated with having employees. They include salaries, taxes, benefits, training, travel, and equipment costs, to name a few. A compensation strategy defines pay equity both internally and externally (C) and the cost of recruiting is a measurement of HR activities return on investment (D) and can be a measurement of business impact.

Chapter 4: Workforce Planning and Employment

1. D. The candidate profile is developed after the job requirements have been determined, beginning with the job description and developing the competencies (broad requirements of the position) and the specifications necessary for successful performance. Job competencies (A) identify skills and qualities beyond tasks and responsibilities specific to the position that help determine how well a candidate will fit into the work group, such as team orientation vs. individual contribution or ability to learn new skills quickly. The job description (B) provides the tasks and responsibilities that must be accomplished. Job specifications (C) define the job-specific KSAs that will be needed for success in the position.
2. C. According to the EEOC, there are no circumstances where race or color are a BFOQ. (A) is incorrect because Title VII specifically allows religious organizations to give preference to members of the religion. (B) and (D) are incorrect because Title VII specifically allows sex as a BFOQ if it is “reasonably necessary” for business operations.
3. A. Griggs identified adverse impact to mean that discrimination need not be intentional to exist; Albemarle Paper (B) extended the concept to require that tests must be validated in accordance with the EEOC Uniform Guidelines for Employee Selection Procedures. Washington (C) determined that employment tests resulting in adverse impact are acceptable if they predict future success on the job. Taxman (D) found that employment decisions made on the basis of race are discriminatory.
4. A. A staffing needs analysis begins with an assessment of the KSAs needed to achieve future goals along with those that are currently available within the organization. Although the tasks, duties, and responsibilities (B) are used to determine what the KSAs are, it is possible for individuals with the same or similar KSAs to perform different jobs, so (B) is not used in a needs analysis. KSAs available in the local labor market (C) will be used to develop the recruiting strategy and plan but are not relevant to the staffing needs analysis. The organization's core competencies (D) are factors that make the organization unique but are not generally part of the staffing needs analysis.
5. C. The GM could be influenced by his similar experience working his way through college. Knowledge-of-predictor bias (A) is a factor when the interviewer knows that a candidate scored particularly high or low on an assessment test. The halo effect (B) occurs when interviewers allow one positive characteristic to overshadow other, less positive attributes. The gut feeling bias (D) occurs when interviewers rely on intuition to make hiring decisions.
6. B. To calculate the selection rate, divide the number of applicants hired by the total number of applicants in each group:

   

7. C. To determine whether adverse impact has occurred, multiply the highest selection rate, which is Asian, at 18%, by 4/5 or 80%. (18% × .80=14%)
8. D. Government contractors with 50 or more employees and contracts of $50,000 or more each year must complete Affirmative Action Plans. (A) was the original compliance requirement for Title VII and was changed to 15 employees by the EEOA of 1972. The criteria in (B) apply to employers that must comply with the Rehabilitation Act and federal contractors that must take affirmative action for all terms and conditions of employment based on executive orders. (C) is not a compliance requirement.
9. C. ADEA waivers are valid during a reduction in force only if the employee has 45 days to consider the agreement. Once employees sign a RIF-related waiver, the ADEA requires that they have 7 days (A) to revoke it. Terminations that are not part of a RIF require only 21 days (B) for consideration. An employee has 180 days (D) to file a charge with the EEOC in states that do not have their own EEO enforcement agency.
10. D. IRCA allows, but does not require, employers to make copies of documents presented for employment eligibility. The employee section of the I-9 must be completed by the end of the first day of employment (A). The employer section must be completed and documents checked by the end of the third day of employment. Employers who make a good faith effort to comply with IRCA (B) have an affirmative defense to inadvertently hiring an unauthorized alien. IRCA requires that I-9 forms be maintained and available for audit (C) by the USCIS for 3 years from date of hire or 1 year after the date of termination.
11. C. E-Verify is a system-wide approach to helping employers comply with post-hire documentation regulations. Recertifying (B) and requesting updated documents (D) may be appropriate on a case-by-case basis but neither is a long-term solution to the problem.
12. B. Although the decision to store employment records online is influenced by all of these factors, the ability to limit access is a strong element of labor law and privacy compliance.
13. C. Strategic staffing and recruitment involves taking a picture of the company at a 30,000-foot level, rather than from an operational perspective. Identifying recruitment sources such as employee referrals may prove to be valuable once the strategies have been defined. Conducting a labor market analysis allows HR to identify the availability of a qualified workforce for use in the achievement of strategic objectives. Total rewards packages include conducting wage surveys and utilization reviews to understand compensation and benefits trends, designed to compete with internal and external market conditions. Defining the employer brand not only creates an employer identity, but helps to differentiate a company from their competition.
14. B. Any tool used to select employees must be job related and a valid predictor of success on the job. If a selection tool results in discrimination against an individual who is a member of a protected class (A), the criteria used must be shown to be job related and valid. For example, a bona fide occupational qualification occurs when religion, sex, or national origin is “reasonably necessary to the normal operation” of the business.
15. D. State employment agencies are required under VEVRAA to give priority to Vietnam-era veterans when providing referrals to job openings. The act further requires that contractors and subcontractors meeting certain criteria list all job openings with these same state agencies. The Rehabilitation Act of 1973 prohibits discrimination against individuals with disabilities, and the executive orders prohibit discrimination in employment by federal contractors, sub-contractors and the government.
16. B. Negligent hiring occurs when an employer knows or should have known about an applicant's prior history that endangered customers, employees, vendors, or others with whom the employee comes into contact. While this behavior may be classified as a criminal act (D), it is not a violation of the employee privacy (A) but rather a function of workplace violence that may have been prevented through proper screening at the time of hire.
17. C. A major life activity under the ADA defines major life activities under two categories: general activities such as caring for oneself and major bodily functions such as breathing. A physical or mental impairment in and of itself does not constitute a disability (A, C) qualified for protection under the ADA. Mitigating factors (B) are considered if they allow an otherwise qualified individual to perform the essential functions of the job.
18. A. The EEO-1 report requires employers to group jobs into job categories based on average skill level, knowledge, and responsibility. Exempt workers are defined by professional, executive, and administrative exemption criteria (B), and these are not examples of the protected class groups under federal law (D).
19. C. Job bidding allows internal candidates to express interest in a job prior to it becoming available. It gives employees the opportunity to develop the skills necessary to successful compete for the position once it becomes available. A job posting is an internal job announcement (A); RFP's (B) are typically used to allow outside vendors to bid on project work and the ranking of job applicants is a function of the selection process used to identify the most qualified individual for the job.
20. B. Any inquiries into an applicant's citizen status must be specific to the requirements of the job. In this example, it is not necessary for the employer to know specifically whether the applicant is a U.S. citizen, but rather, whether the applicant is authorized to work in the United States.

Chapter 5: Human Resource Development

1. C. Systems thinking refers to the characteristic of a learning organization that uses a variety of information-gathering techniques to acquire knowledge about new technology, determine its value, and convert this knowledge into new and improved practices and procedures. Assessment centers (A) are used to determine what kind of training an individual needs. Massed practice (B) is a form of practicing job tasks during training in which all tasks are practiced at the same time. Programmed instruction (D) is a type of self-instruction that requires trainees to complete each step in the training before moving on to the next step.
2. A. Supervisory training programs concentrate on topics related to interactions with employees, such as conflict-resolution skills. Budgeting skills (B) and internal control training (D) are included in management development programs. Rotation through various divisions (C) is part of a leadership development program.
3. B. The learning evaluation method focuses on how well the training resulted in learning new skills. The reaction evaluation method (A) focuses on participant reactions. The behavior evaluation method (C) measures on-the-job behavior changes as a result of training, and the results evaluation method (D) measures organizational results. Of the four methods, the results evaluation method is considered the most valuable for the organization.
4. B. A lack of job reinforcement can adversely affect transfer of training. Other adverse impacts are the result of interference from the immediate work environment and a nonsupportive organizational climate. The trainer's expertise (A) could affect how well trainees learn information but does not specifically affect transfer of training. The subject of the training (C) affects how receptive trainees are to the information but not necessarily how the information transfers to the job.
5. A. The positively accelerating learning curve begins with smaller increments but increases in pace and size as learning continues. The negatively accelerating curve (B) begins with larger increments that decrease as learning continues. The S-shaped learning curve (C) is a combination of the positively and negatively accelerating learning curves, whereas a plateau (D) occurs when no learning seems to take place.
6. D. The most common reason for the failure of change initiatives is that people were not prepared for the change and given time to assimilate the reasons for the change. Failing to communicate a change in strategic direction (A) as the basis for organization changes in and of itself will not lead to failure of a change initiative. Leaders who do not support change (B) do have an influence on employees, but that factor alone is not the most common reason for failure. The absence of a training system (C) may negatively impact the change process, but it is not the most common reason for failure.
7. B. An Ishikawa diagram is an effective tool for organizing information about a problem when brainstorming with a group. A Pareto chart (A) graphically represents the 80/20 rule. A stratification chart (C) shows the individual components of a problem in addition to the total or summary. A histogram (D) provides a way of looking at random occurrences to find out if there is a pattern.
8. C. The first three choices are all employee growth and assessment programs. Behavioral-based performance assessment (A) focuses on behaviors, whereas skills-based performance assessment (B) focuses on skills. MBO programs measure the successful attainment of objectives. The continuous-feedback program (D) is a performance management program.
9. C. The BARS system is used most effectively in organizations when a number of jobs have similar duties. Because it is expensive and time-consuming to implement, an organization must have enough resources available to develop the program. Critical-incident appraisal tools (A) are most effectively used by managers who have daily interaction with subordinates. Forced ranking (B) is best for use in organizations with fewer than 100 employees because it becomes unwieldy for large groups. Field reviews (D) are conducted by someone other than a direct supervisor.
10. C. A mentor is someone who takes a personal interest in an employee's career and who guides and sponsors them. Although a supervisor may be a mentor, mentors are usually individuals who are outside the chain of command and may even be from outside the organization. The functions in A, B, and D are not generally performed by mentors.
11. D. Formative evaluation is a technique used prior to the commencement and during the design phase of training. It is used to gather data that will be used in training to ensure that the objectives are met and that the training meets the needs of the workgroup. This is different from summative evaluation (A), which occurs after the training has taken place. Knowledge banking (B) and an attitude assessment (C) are not used in the evaluation of training.
12. B. The ADDIE model is a process that begins with an analysis of the specific training needs. In this example, management may believe that the negative reviews are the result of lack of training, but until a thorough needs analysis is conducted—including the gathering of relevant data—it is not possible to create specific training objectives that will result in the desired outcomes. While training design (A), participant identification and scheduling (C, D) are components of training, they do not launch the ADDIE model.
13. A. Job design is made up of several factors related to how the work gets done, broken into two categories: job enrichment and job enlargement (B). Task identity, task significance and feedback are examples of job-enrichment activities that can significantly influence job satisfaction through design. KPI's (C, D) can be used as performance appraisal criteria, but are not directly related to job enrichment activities.
14. B. Performance feedback bias such as the halo/horn effect, leniency, and central tendency can (but don't always) exist whenever managers are asked to make a discriminatory judgment, including in rating performance and selecting new hires. Note that not all discrimination is unlawful; it is in fact necessary to make distinguishing decisions on the job. Discrimination becomes unlawful when the performance is not rated according to neutral, job-related standards.
15. C. Asynchronous training is self-paced training that typically occurs using computer-based tools. Although timelines for completion may be preestablished (such as specifying that all assignments must be submitted no later than 11:59 p.m. Sunday evening), students typically are able to set their own schedule for when they engage in learning the material. Vestibule training is a form of OJT (A), mobile learning (B) is a type of e-learning that occurs typically through mobile devices, and the Delphi technique (D) is a decision making or forecasting activity that relies on a group of experts to reach a consensus.
16. B. Formative evaluations are designed to gather information prior to the design of training to measure the needs of the participants. This allows the designer to include content and exercises that will aid in the participant transfer of the training to the job. Summative evaluations (A, C) are used after the training has taken place, and often include a measure of participant reactions and trainer evaluations (D).
17. A. Peer-to-peer coaching is useful when a management work group has shared values or objectives. Assigning a one-on-one peer coach or using a team approach maximizes the diversity of skills available in any particular peer group. A mentor relationship (B) implies a hierarchy (the mentor and a subordinate), an executive coach (C) is used for more one-on-one upper level management development, and strategic planning (D) is a broad organization-wide string of activities related to the planning the direction of the company.
18. B. Training cost per employee is calculated by dividing the total of all associated training costs by the number of full-time equivalent employees. The proper calculation is $4,500 divided by 25 full-time equivalent employees.
19. B. A case study allows participants to review real-world scenarios related to their topic of study. Practical application and transfer of training are typically more successful when participants can see how it's done in the work environment. Vestibule training (A) occurs “on the job,” facilitation (C) uses an individual to create an interactive training experience, and a Socratic seminar (D) is a type of training that welcomes opposing viewpoints in a problem-solving setting.
20. D. Comparing employee performance is a non-narrative style of performance review involving comparing one employee to another in the same job category.

Chapter 6: Compensation and Benefits

1. C. FICA requires employers to pay Social Security and Medicare for employees and to withhold an equal amount from employee paychecks. There is no federal law requiring employers to provide pension plans (A) and (B). No federal law requires employers to provide health insurance (D).
2. D. No federal law requires employers to provide a retirement plan to employees. If employers do provide retirement benefits, ERISA (A) regulates how the plans are offered and administered. OBRA (B) capped executive pay, required health plans to honor qualified medical child-support orders, and required that group health plans provide coverage for dependent adopted children of employees. The OWBPA (C) amended the ADEA to prohibit discriminating against older workers in benefit plans and defined requirements for employee waivers of their rights under the act.
3. B. Intrinsic rewards are those in which esteem is achieved from within oneself. A, C, and D are examples of extrinsic rewards that come from external sources.
4. A. A Total Rewards philosophy helps determine what kind of employees will be attracted to the organization. Developing a philosophy to target employees with the KSAs needed by the organization can help advance the organization's mission. The pecking order for jobs (B) is based on the value of those jobs to the organization. The philosophy defines leading the competition as a strategy; positioning the company to do so (C) is a result of creating the compensation structure. An entitlement culture is maintained (D) by continuing to pay employees for time on the job instead of for performance.
5. A. An entitlement culture rewards longevity in the job. If increased productivity is a function of time on the job, an entitlement culture will encourage employees to stay with the company. Line of sight (B) occurs when employees know that their performance impacts their pay. A highly competitive workforce (C) is more likely to exist in a pay-for-performance culture. A workforce with a highly desired skill set (D) would be better served by a pay-for-performance culture.
6. D. A and B are both obviously correct. Although C may seem counterintuitive to some because many employers are hesitant to terminate employees for policy violations, those terminated for cause generally aren't eligible for unemployment insurance. Because retaining an employee who is not contributing to the organization is a poor business decision, maintaining adequate records to demonstrate the reasons for termination provides the tools to fight claims that are unjustified.
7. B. A reduced FMLA leave is one in which the employee's regular work schedule is reduced by some number of hours per day or days per week. An intermittent FMLA leave (A) is one in which an employee is absent from work multiple times for the same illness or injury. Disruption to the work schedule (C) is not a factor in the type of FMLA leave. Although accurate records of time off (D) should be maintained for all FMLA leaves, they are most critical for intermittent leaves.
8. B. Workers age 40 or older who are asked to sign a waiver of their rights must be given 21 days to consider the agreement before signing it, unless they are part of a group termination or layoff. In that case, they must be given 45 days to sign the agreement (C). In both instances, they may revoke the agreement within 7 days (A). The OWBPA does not require 60 days to consider the agreement (D).
9. D. The Unemployment Compensation Amendments of 1992 required 20 percent withholding from some distributions. OBRA capped executive pay (C), required that group health coverage be offered when children are placed for adoption before the adoption is finalized (A), and required health plans to honor qualified medical child-support orders (B).
10. D. Summary plan descriptions are required only for group health plans, and not for defined contribution plans, defined benefit plans, or FSAs.
11. A. As the Director of HR, Molly is in a position of control over the administration of HR policies, procedures, and rules. As such, she is held to a high standard of responsibility that goes beyond unethical conduct (D). Fiduciary responsibility requires that the HR professional act without regard for their own self interests. A choice of law clause (B) applies in the administration of expatriate agreement, and extending pen enrollment is not necessarily illegal (C).
12. C. Group incentives share common elements including the reward of individuals based on their collective efforts. Employee Stock Ownership Plans, Employee Stock Purchase Plans, profit-sharing, and gainsharing (B) are all examples of group incentives. Deferred compensation (A) refers to tax-deferred retirement plans, and a sales bonus (D) is a type of commission paid to workers.
13. C. Distributive justice is a concept that speaks to perceived inequity in the distribution of outcomes. It is the result of the belief that an employee puts more into the system than they receive as an outcome when compared to the efforts of other organizational members. Procedural justice (B) is a perception of inequity in the procedures used to design or apply the pay structure. Wage inequity and pay disparity (A, D) are essentially the same thing, occurring when employees are either paid outside of current external position market value or internally based on compensable factors shared between jobs.
14. D. The life cycle of all compensation-related employment records is marked by specific data collection and documentation. Understanding what documents are required at each stage will allow HR to properly plan for security, updates, retention, and destruction. The other answers are not reflected in the organizational life cycle.
15. B. Under the FMLA, employees must be given at least 15 calendar days to obtain appropriate medical certification. Under certain conditions, employers may request a secondary exam, and employers are allowed to use their medical certification form provided it conforms to the requirements of the DOL's form WH-380.
16. B. EGTRRA made a number of changes to existing contribution limits, including the allowance for older workers to catch up on their retirement savings.
17. A. Medicare is a type of involuntary benefit introduced by the Social Security Act of 1935. Along with retirement (Social Security), these mandated benefits are subsidized by a tax on both the employer and the employee called FICA (Federal Insurance Contribution Act). Vision, retirement and sick pay (B, C, D) are all examples of voluntary benefits that employers may choose to offer their employees.
18. C. A key component of a gainsharing plan is the shared responsibility of outcomes between management and employees. Productivity is reviewed, new performance is measured, and both work groups share in the gain. ESPPs, bonuses and improshare (A, B, D) all could be used, but are not specifically grown around the concept of shared responsibility between management and employees.
19. C. Intrinsic rewards are driven by internal versus external factors. Job fulfillment based on work relationships, the opportunity to use strengths, and career growth are examples of nonmonetary compensation. Extrinsic rewards (C) are those rewards that are driven by external factors, usually in the form of monetary (A) or benefit rewards (components of a total rewards system (D)).
20. D. Fiduciary responsibility implies a greater legal obligation to act with great care and responsibility on behalf of a company. Acting in one's own self-interest, conflicting duties, and profiting from a role are all examples of how HR could breach this obligation. Code of conduct, breach of contract and conflict of interest are certainly components of HR standards, but in terms of ranking, they fall below the concept of fiduciary responsibility.

Chapter 7: Employee and Labor Relations

1. C. Weingarten rights give all union members the right to request that a co-worker or shop steward be present during an interview if the employee believes the interview could lead to disciplinary action. The employer may decide to use other facts available without interviewing the employee. The Weingarten ruling does not entitle employees to have an attorney present (A). Employers are not required to wait for a lengthy period of time until the co-worker returns (B). The interview must be discontinued while waiting for the co-worker (D). As of 2004, employers are required to honor Weingarten requests only for union members.
2. B. Constructive discharge occurs when the employer forces an employee to resign by creating a work environment that is so unpleasant a reasonable person would resign. The duty of good faith and fair dealing (A) applies to contracts, requiring both parties to act in a fair and honest manner with each other to ensure that benefits of the contract are realized. Promissory estoppel (C) occurs when an employer entices an employee to take an action by promising a reward but then does not follow through on the reward. Fraudulent misrepresentation (D) occurs when an employer makes untrue promises or claims to a candidate.
3. C. The public-policy exception to the at-will doctrine prevents an employer from terminating an employee who is cooperating in a government investigation of wrongdoing. Options A and B are elements of at-will employment. Option D would also be allowed based on the at-will doctrine but could be affected by other common-law doctrines.
4. A. The company may make truthful statements about a unionized environment during an organizing campaign, such as pointing out that employees will have to pay dues to the union. Although nonunion employees are free to talk about their reasons for not wanting a union (B), it is an unfair labor practice for the employer to encourage them to do so. Telling employees that the company will have to move the jobs to another country if the union is elected (C) is also a ULP, because it constitutes a threat. Employers may not threaten, interrogate, promise, or spy on (TIPS) employees during an organizing campaign (D).
5. C. Temporary employees who have a community of interest with regular employees of the client company may become part of the bargaining unit whether or not the temp agency agrees to bargain with the union.
6. A. The NLRB will conduct a decertification election if the employees present a petition signed by 30 percent of the employees in the bargaining unit. Management may not participate in or encourage employees to circulate the petition or provide any support in the process. Doing so is considered an unfair labor practice. A union can be deauthorized (B) if employees want to remove a union security clause, such as dues check-off. If there is a valid CBA in place (C), the NLRB will not direct an election. The NLRA prohibits an election if one took place during the preceding 12 months (D).
7. B. A union shop clause requires all new employees to join the union within a grace period specified by the contract: no less than 30 days, except in the construction industry, where the grace period must be 7 days. An agency shop clause (A) requires all employees to pay union dues whether or not they join the union. A closed shop clause (C) requires all new hires to be members of the union before they are hired. Closed shops are illegal except in the construction industry. A maintenance of membership clause (D) allows employees to choose whether to join the union, but once they join, they must remain members until the expiration of the contract.
8. C. Double breasting occurs when an employer has two companies that are separate and distinct from each other but do the same type of work, and one company is union while the other is nonunion. This occurs most often in the construction industry when contractors have two different crews for bidding on union and nonunion jobs. An alter ego employer has two substantially identical businesses (A). The ally doctrine describes work that is done by a neutral employer while another business is shut down by a strike (B). A straight-line operation is one in which two businesses perform operations that complement each other's operations (D). If one business is struck, the other may be as well because they are engaged in a single economic enterprise.
9. B. Votes can be challenged by the union representative or by management only before the vote goes into the ballot box.
10. D. Salting occurs when a union hires an individual experienced at organizing tactics to apply for a job with a company that has been targeted for an organizing campaign (D). Options A, B, and C are tactics used by unions during organizing campaigns.
11. A. Exit interviews are one method used to gauge employee job satisfaction or lack thereof. Brown bag lunches (B), employee committees (C), and suggestion boxes (D) are all employee communication tools, but they are not necessarily conducive to measuring overall employee job satisfaction in a consistent, measurable way.
12. A. Diversity simply means “the differences among people.” Although diversity encompasses protected-class characteristics (B) and can be a measure of non-discriminatory hiring practices (C), it represents the differences of all employee behaviors and classifications. Knowledge management programs (D) refer to the ability of the employer to retain and apply the collective knowledge of their workers to achieve strategic aims.
13. C. Collecting large amounts of data into one coherent document can be done through the use of an employee handbook that references policies (D), standard operating procedures (A), or reference guides. A troubleshooting manual (C) best represents the type of document designed for short-term reference of a specific nature.
14. A. Unusual activity related to employee meetings (B), complaints against supervisors, the sudden use of union terms (C), and an increased interest in employee benefits (D) are all signs of potential union activity.
15. D. A company cannot threaten employees or make promises to them contingent on the workforce remaining union free. A philosophy statement should be geared toward communicating the company's desire to work directly with the employees in discussions about working conditions or benefits. If a union does attempt to organize, it is important for the employer to work directly with outside council to determine the strategic benefits of discussing the desire to remain union free and the disadvantages/limitations of unions as employee representatives.
16. C. The NLRB was established by the NLRA to enforce provisions of the act related to conducting elections and preventing unfair labor practices. The LMRA, LMRDA and the Norris-La Guardia Act (A, B, D) are all examples of legislation influencing the application of unions in the workplace.
17. B. Harris v. Forklift Systems Inc. was referenced in the case of same-sex harassment brought to the Supreme Court in Oncale v. Sundowner (A). Oncale helped determine that gender is of little consequence when harassment meets the statutory requirements defined in Harris. Faragher v. City of Boca Raton (C) and Burlington Industries v. Ellerth (D) were also important cases aiding in interpreting the concept of sexual harassment in the workplace.
18. C. USERRA protects the rights of reservists called to active duty in the armed forces and applies to all public and private employers in the United States. It includes pension protection for returning service members related to vesting, accrual, and employer contribution continuity. The Sherman Anti-Trust act is legislation used to control business monopolies, and Executive Order 11246 (B) prohibits employment discrimination. The Equal Employment Opportunity Act (D) provided litigation authority to the EEOC back in 1972.
19. C. Weingarten rights were upheld by the NLRB, establishing that union workers have the right to representation in any meeting that may amount to an investigatory interview that could lead to disciplinary action. These rights do not currently apply to nonunion workers (D). Any employee has the right to consult with an attorney post-discipline, and employers do not have the right to deny representation to union workers (A, D) in a meeting that may result in discipline.
20. B. Wrongful discipline and wrongful termination are two actions that can lead to the need for ADR methods. Mediation (A), ad hoc arbitration (C), peer-review panels (D), constructive confrontation, and the use of an ombudsman are all examples of dispute methods that are an alternative to court action. A peer review panel, mediation and arbitration represents the continuum of elevating through the alternative dispute methods.

Chapter 8: Risk Management

1. B. A serious violation is the second level of violation. Willful violations (A) are, in addition to having the potential for serious harm or injury, done intentionally or with “plain indifference” to the requirements. Repeat violations (C) are violations for which an employer has been previously cited and have recurred. De-minimus violations (D) are unlikely to cause serious harm or injury.
2. D. A Notice of Contest must be filed within 15 days of the citation. The OSH Act requires employers to allow the CSHO to inspect the workplace (A). Employers may request variances until repairs are made (B) or for processes that provide equal or greater safety for workers. Employers may consult with OSHA to identify possible hazards without fear of a citation or penalty (C); but once a consultant becomes involved, the employer must abate any violations, or the consultant will refer the violation to an OSHA inspector.
3. A. Although all of these are steps in the process, the best way to ensure that employees will comply with the Drug-Free Workplace Act is to develop and publish a written policy.
4. C. The FLSA defines a list of jobs not suitable for children between the ages of 16 and 18. OSHA regulates worker safety through standards related to mine safety and hazardous communication.
5. A. The receptionist is exhibiting symptoms of all three types of stress: physical, emotional, and mental. SARS (D) is a type of disease, and while her symptoms could be attributed to job dissatisfaction (B), there must still be a root cause.
6. D. The employee representative is entitled to receive copies of incident reports with the identifying information omitted. Employers have 7 calendar days to provide the information to an employee representative. Copies of the OSHA form 300 log must be provided by the end of the following business day (C) when requested by employees or their representatives. Options A and B do not apply to OSHA requirements.
7. C. EAPs provide counseling for a variety of employee needs, including financial and legal counseling (D), substance abuse (B), and help to quit smoking. Outplacement counseling (A) is often, but not always, included in an EAP. The plans typically do not cover gambling.
8. D. Injuries that occur while performing the job are reportable, whether or not the employee was at fault. OSHA regulations exempt injuries that occur as a result of voluntary participation in fitness activities (A), those from personal grooming activities (B), or those caused by motor vehicles in a company parking lot (C).
9. C. OSHA inspections are conducted at the request of an employee based on a safety violation, as a preprogrammed high-hazard inspection, or on a random basis. The four characteristics of a safety and health-management plan are senior management support (A), ongoing worksite analysis (B), active hazard-prevention and -control programs (D), and ongoing safety and health training.
10. D. Although a review and analysis of OSHA logs (A) or workers' compensation records (B) can be used to determine any injury patterns occurring in the workplace, observing the incumbent (D) performing the work is necessary to determine whether there is an ergonomic hazard in the job. An MSDS (C) describes chemical hazards unrelated to ergonomics.
11. A. Raising awareness about safety and health is the responsibility of employers covered by all standards. Providing safety and health information in a language all employees can understand is part of the Diverse Workforce Limited Proficiency Outreach strategy. It is not specifically required by its own standard, nor is it an element of creating a model program (C) or enrolling in a VPP. Employers are however required to effectively communicate the safety rules to all employees.
12. C. Current users of illegal drugs are specifically excluded from protection under the ADA. The ADA, however, does not require that an employer retain any employee whose substance abuse—regardless of the status or type of substance—represents a serious safety risk to themselves or others. Recovering addicts are protected by the ADA. And, depending on certain conditions, users of legal substances such as alcohol or prescription drugs may be protected by the ADA.
13. B. An IME will allow Millie to be evaluated by an impartial third party. Modified duty is a short-term solution to be used when an injured worker is able to return to work but not to full duty (C). A reasonable accommodation strategy (A) may become necessary, but only after Millie's diagnosis and treatment plan is clearly understood. Terminating her employment (D) prior to identifying the extent of her qualifications and limitations is not advisable.
14. A. The construction and general industry standards are the most frequently violated—and therefore the most frequently cited—of the four major areas for which OSH provides standards. These areas include general industry, construction, maritime (B), and agriculture (D). Whistle-blower protection (C) is granted under the Sarbanes-Oxley Act.
15. C. While the use of PPE (D) could certainly be used to mitigate the exposure of hazardous chemicals in the workplace, it is the Hazard Communication Standard that requires employers to inform employees of the risks associated with chemical use in the workplace. The general-duty clause (B) is used for safety hazards that are not specifically identified through an existing standard. The control of hazardous energy (A) is part of the lockout/tagout standard.
16. B. Generally, injuries are not work-related if the employee is engaged in a voluntary wellness activity (A), eating food prepared for personal consumption (C), or has the common cold/flu (D). This is important for two reasons: to determine OSHA recordability and to determine compensability under workers' compensation.
17. D. The courts will determine whether the employee had a reasonable expectation of privacy based on the employer policy (A), how situations have been handled in the past (B), and state-by-state regulations of employee privacy laws (C).
18. B. Environmental health hazards are those hazards that include physical (A), chemical (D), or biological exposure (C) in the workplace. Workplace violence is a security risk more than a physical exposure in the workplace.
19. B. The recordability of an MSD injury is based on many factors, including the general recording criteria and the severity/description of the symptoms. Injuries from poor workplace or ergonomic design typically fall into an MSD classification, and include injuries to the back, arms, and shoulders. An MSD can be caused by a repetitive stress injury (A), although this is not always the case.
20. D. Whistleblower standards protect an employee's right to file a complaint to OSHA about a workplace safety or health hazard. It is considered a basic employee right granted under the OSH act in 1970. Emergency action (A) is a type of plan required by OSHA, and the general duty clause (C) states that employers have a general duty to provide a safe and healthy workplace for employees.