BSA 435 Final Exam Answers

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Chapter 1
1. Which is not one of the major challenges currently facing HR managers?
a. motivating employees without pay raises and promotions
b. changing federal, state and local legal requirements
c. adjusting benefit programs due to increasing costs
d. replacing baby boomers as they exit the workplace
2. Human resource management is
a. supervising, monitoring, controlling, and disciplining employees in order to achieve organizational
goals efficiently and effectively.
b. the designing of organizational systems to ensure that human talent is used effectively and efficiently to
accomplish organizational goals.
c. the efficient and effective use and coordination of human capital to ensure the profitability and longterm sustainability of the organization.
d. the design of the interface between the human capital of the firm and its technological and financial
capital in order to efficiently and effectively reach organizational goals..
3. When the human resources function creates a unique capability in a firm that creates high value and
differentiates the organization from its competition, human resources is a/an ____ for the firm.
a. intangible asset
b. core competency
c. critical capability
d. strategic contributor
4. The collective value of the capabilities, knowledge, skills, life experiences and motivation of an
organizational workforce is called
a. the organizations talent inventory.
b. total human resources.
c. human capital.
d. the organizations intellectual assets.
5. Through the ____ function, HR management provides the organization with a sufficient supply of
qualified individuals to fill the jobs in the organization.
a. staffing
b. equal employment opportunity
c. talent management
d. employee and labor relations
6. Which of the following activities would NOT fall into the risk management function of HR?
a. Sending all employees a text message requiring them to report in to a designated individual after an
earthquake affects the city in which the companys plant is located.
b. Negotiating with a representative of the Occupational Safety and Health Administration (OSHA) about
appropriateness of a measure to reduce harmful gases in a mine.
c. Requiring employees to purchase a minimal level of life insurance when they are deployed overseas.
d. Designing policies and procedures for a shipping firm to handle episodes of piracy and employee
hostage-taking..
7. Compensation and benefits managers in almost all organizations face a major and growing concern
regarding the cost of
a. equalization of pay between men and women.
b. incentive pay for hourly employees.
c. health-care benefits.
d. outsourcing to lower-wage countries.

8. Talent management includes which of the following activities?

a. job-skill training
b. wage and salary administration
c. diversity assessment and analysis
d. environmental scanning
9. ____ identifies paths and activities for individual employees as they develop within the organization.
a. Staffing
b. HR development
c. Equal Employment Opportunity
d. Career planning
10. A large Japanese semiconductor manufacturer is building a manufacturing plant in rural Texas. The
Japanese firm has developed a highly-effective system of motivating employees which results in high
productivity and high worker satisfaction. As an HR consultant to the Japanese firm, what should your
advice be?
a. The Japanese firm should study the local Texas culture and redesign its motivation system for the U.S.
plant.
b. The Japanese firm can implement the same motivation system in Texas and expect high productivity
and high employee satisfaction.
c. The rural Texas and Japanese cultures are so different, that there is little likelihood that a Japaneseoperated plant in Texas could be successful.
d. As long as the Japanese companys motivation system is based on pay-for-performance, the Texas
employees will be as productive and satisfied as their Japanese counterparts.
Chapter 2
1. Which of the following statements is FALSE?
a. The organizations existing employees limit the organizations choice of strategy.
b. Although HR is a staff function, it can add value by helping the organization improve its performance.
c. Most HR professionals are not full strategic partners in their organizations.
d. In order to have a clear strategic vision, it is best for management to have sole authority to select the
organizations competitive strategy..
2. In order to add value to the human capital of the organization,
a. HR must have good metrics about the HR side of the business.
b. HR managers must be focused on reducing the total cost of labor.
c. the HR function must form the interface between the external environment of the organization and its
internal environment.
d. HR policies and practices should result in the workforce with the minimum quantity and maximum
quality needed to achieve productivity goals.
3. In order for any organizational strategy to be successful, the HR function must
a. align with the one best practice to achieve worker productivity.
b. move beyond the traditional HR focus on effectiveness and efficiency.
c. develop the needed human competencies within the organizations existing workforce.
d. having the right people in the right place at the right time.
4. Georgiana, the vice president of HR in an Ohio-based firm, is in a meeting with the other top level
corporate executives. They are discussing whether it is a good strategy for the firm to open a branch in
Amsterdam. In her role as head of HR, Georgiana must
a. concentrate on being a team player and raise no objection to this expansion.
b. raise the ethical issues of opening a branch in a country known for legalization of soft drugs,
prostitution, and other alternative lifestyles..
c. frankly explain that the firms current human talent pool does not have the capabilities to handle the
expansion.
d. meet the strategys requirement no matter what the current state of the companys human talent pool.

5. Perspectivo, Inc., is implementing formal strategic planning for the first time. The organizational
mission has been clarified, and now the next step in the process will be
a. developing supporting functional strategies.
b. formulating the organizational strategy.
c. analyzing strengths, weaknesses, opportunities and threats.
d. establishing goals and objectives.
6. __________ is the use of human resource management practices to gain or keep a competitive
advantage.
a. Manpower planning
b. Strategic HR management
c. HR business integration
d. Competitive HRM.
7. Which of the following is NOT a focus of strategic HR?
a. macro view of the organization
b. transactional skills
c. high-risk planning outlook
d. proactive HR systems and practices
8. Cliff has about 10 years of HR experience and has recently earned his professional certification. He is
searching for a job in an organization that takes a strategic approach to HR. Key phrases that Cliff is
looking for in organizational informational materials describing the competencies the hiring organization
wants in new HR professionals include all of the following EXCEPT
a. administrative expert.
b. change steward.
c. business ally.
d. talent manager.
9. Which of the following is TRUE in forming HR strategy?
a. The world changes so rapidly that the past is irrelevant.
b. The past is important only as it can predict the future.
c. The present is the best guide to the future.
d. The impact of strategy is limited to the present, because the future is unpredictable.
10. As an ambitious young HR professional, you want to advance to the top HR executive position in
your organization by having the perspective and expertise to contribute to the strategic planning process.
You should
a. understand the financial aspects of your organization and its key drivers of business success.
b. hone your skills in a technical HR area such as compensation or HR information systems.
c. become an expert in legal analysis because most HR functions are driven by employment and labor
law.
d. ask to be transferred into areas of the organization that are proven training grounds for top executives,
such as finance and marketing.
Chapter 6
1. A passive job seeker is one who
a. is seeking a job merely because it is a requirement of receiving unemployment compensation.
b. is conducting a haphazard and unplanned job search.
c. has a good job and is not actively looking to change.
d. an employed individual who cruises job boards looking for better-paying jobs.
2. The process of generating a pool of qualified applicants for organizational jobs is called
a. requisitioning.
b. pre-screening.
c. recruiting
d. selection.
3. Clement is the recruiting specialist for an online retailing company in a mid-sized Missouri town. He

has used every type of recruiting technique available to him to fill nineteen job openings. After all his
efforts have been exhausted, exactly nineteen applicants with the minimum qualifications have been
found. In this case,
a. the yield ratio will be 50%.
b. a selection process is not necessary.
c. Clements efforts have been successful because he managed to find an applicant for each opening.
d. the labor market in this area can be described as loose.
4. ____ are the external supply pool from which organizations attract prospective employees.
a. The ranks of the unemployed
b. Applicant populations
c. Applicant pools
d. Labor markets
5. Which of the following would be the LEAST important topic of training for a recruiter who will be
conducting interviews on a university campus?
a. EEO regulations
b. details of the jobs and job specifications
c. the companys desired image and brand
d. the companys job posting software
6. The ____ includes all individuals available for selection, if all possible recruitment strategies are used.
a. labor force population
b. external labor market
c. recruitment pool
d. applicant population
7. Priam Designs, Inc., is recruiting for designers using LinkedIn. The ____________ is the group of
designers that is available for selection using this recruiting approach.
a. applicant pool
b. primary labor force
c. labor market
d. applicant population
8. As director of recruiting for a large bank, Stacy has decided to restrict her recruiting efforts for loan
officers to placing advertisements on the web site of the American Banking Association. This will
determine the ____ for the job of loan officer.
a. applicant population
b. labor force population
c. applicant pool
d. talent pool
9. The ____ pool consists of all persons who are actually evaluated for selection.
a. applicant
b. selection
c. labor
d. talent
10. Decisions that affect the applicant population include all of the following EXCEPT
a. the required yield ratio from recruiting efforts.
b. recruiting method.
c. timing of recruiting efforts.
d. applicant qualifications required.
Chapter 7
1. Some organizations are using virtual online communities to screen possible hires. All of the following
are potential aspects of using avatars and a virtual setting that are different from traditional recruiting
methods EXCEPT
a. protected class applicants could mask their status by creating an avatar with traditional

characteristics.
b. applicants may be more relaxed in responding to recruiters questions.
c. more tech-savvy applicants would have advantages over less technologically-skilled applicants.
d. virtual reality interviewing could replace traditional selection methods in coming years.
2. The process of choosing individuals who have needed qualifications to fill jobs in an organization is
called
a. recruitment.
b. selection.
c. job matching.
d. placement.
3. Lack of a fit between the person and the job is most likely to result from
a. mistakes in evaluating the persons KSAs.
b. improper employee training.
c. negligent hiring.
d. a lack of a positive company brand that attracts qualified applicants.
4. Mark is unhappy with his new job as a first line supervisor at the call center. He dislikes trying to
motivate his subordinates to increase their productivity. He is dreading having to give the upcoming
performance appraisals to his subordinates. Mark finds the job boring and watches the clock all afternoon,
longing for the end of his shift. He is planning to apply for another job either within the organization or
outside the organization. Mark is experiencing
a. poor person-organization fit.
b. burnout.
c. the result of negligent hiring.
d. poor person-job fit.
5. ____ involves fitting a person to the right job.
a. Placement
b. Orientation
c. Selection
d. Staffing
6. More than anything else, placement of human resources should be seen as a/an
a. public relations activity.
b. operating management responsibility.
c. matching process.
d. marketing tool.
7. Measurable or visible indicators of the selection criteria are called
a. reliable estimators..
b. predictors.
c. essential elements.
d. validators.
8. Voltra, Inc., is planning to fill a number of openings for entry-level professionals. The selection process
is quite extensive and includes several levels of individual interviews, team interviews, and psychological
tests, as well as general ability tests. Much of the interview time is spent on the applicants philosophy of
life and work. Voltra, Inc., is highly concerned with
a. defining who is an applicant.
b. complying with EEO and ADA requirements.
c. person-organization fit.
d. matching the person to the job.
9. Jill graduated with her MBA during a severe economic recession in the region. The only acceptable job
she could find was in a bank officer training program for a major national bank. Jill was one of the top
candidates when she was hired by the bank. She has been with the bank for three months and has become
disillusioned with it. Jill feels that the individual bank customers are not valued, that the bank refuses

loans to small business borrowers who are good risks, and that the bank engages in misleading
advertising. Jill is experiencing
a. poor person-organization fit.
b. a realistic job preview.
c. the result of negligent selection by the bank.
d. poor person-job fit.
10. Mary Ann is the recruiter for a large lighting products company, Aurora Borealis Lighting, Inc. Not
only does Aurora Borealis Lighting have retail stores, it also supplies lighting for new residential and
commercial facilities. Lighting designers for commercial facilities are scarce. Mary Ann and the company
managers have decided to hire an individual who has the ability to learn the field. They estimate it will be
two years before the new hire will be fully productive. Consequently, they are looking to hire a person
who will be with the company for at least four or five years. Mary Ann suggests that they only hire
applicants who have been with their previous employer at least two years, and who have not jobhopped in the last ten years. Mary Anns suggestion is an example of a/an
a. KSA.
b. element of job performance.
c. selection criterion.
d. predictor.
Chapter 8
1. ____ provides employees with specific, identifiable knowledge and skills for use in their present jobs.
a. Executive education
b. Organizational learning
c. Employee development
d. Training
2. In order to comply with OSHA regulations, Henry is scheduling a program on handling hazardous
materials for production employees at the chemical plant. This type of program is classified as ____
training.
a. job/technical
b. required and regular
c. developmental
d. problem-solving
3. Ben, a new manager, is being sent to a series of seminars to bring his communication, meeting
management, and team-building skills to the higher level needed for his new duties. Ben is being trained
in ____ skills.
a. emotional
b. soft
c. tangible
d. concrete
4. Development is distinguished from training, in that
a. development is broader in scope, focusing on individuals gaining new capabilities useful for both
present and future jobs.
b. EEO laws and regulations apply primarily to training not development.
c. training is usually provided internally whereas development takes place in external learning
environments.
d. development provides people with specific, identifiable knowledge and skills for use on their present
jobs.
5. A fitness center is planning to invest in specialized pieces of exercise equipment. This equipment is
highly effective, but the club members could be injured if the equipment is used incorrectly. So, the
fitness center is sending its exercise instructors to a certified training program to learn how to use these
machines correctly. This would be classified as
a. required and regular training.

b. job/technical training.
c. problem-solving training.
d. developmental training.
6. Training must comply with employment laws and regulations. A primary discrimination concern
centers on
a. methods by which mentors are selected and allocated.
b. whether the trainers are representative, as a group, of the diversity of the workforce.
c. the amount of expenditures on training of minority and disabled employees versus training of majority
and able-bodied employees.
d. criteria used to select individuals for inclusion in training programs.
7. Which of the following statements is TRUE?
a. It is illegal to require hourly employees to take work-related training during non-work hours.
b. If hourly employees are required to take work-related training during their free time, they must be
compensated for the time spent in training.
c. If an hourly employees takes a college course that applies directly to his/her current job and will
increase his/her performance, the employer is required to pay the employees tuition.
d. An employer is not required to pay hourly employees for training they can take at home, only for
training which takes place at a work location or training facility.
8. Amanda has just completed her MBA for which her company paid all tuition and book expenses.
Amanda signed a training contract with her employer that runs for four years. A headhunter has contacted
Amanda with an offer of a position that would be a significant promotion. Which of the following
statements is TRUE?
a. Amanda cannot legally leave to go to another firm for four years because of this contract.
b. The headhunter is legally responsible for buying out Amandas contract with her original employer.
c. Amanda could ask the offering company for a signing bonus that would cover her financial obligation
to her employer for her MBA expenses.
d. If Amanda took the job offer from the other company, Worldwide Food Services could sue the new
employer for the cost of Amandas educational expenses under the non-piracy law.
9. A growing number of companies have recognized that training and HR development are
a. most effective and efficient when targeted at short-term, measurable outcomes.
b. primarily associated with orienting new employees to the organization and their jobs.
c. integral to competitive business success.
d. generate high ROI when used tactically.
10. Lyle has been hired as the first director of training at SISI, Inc. Lyle has been spending his first few
weeks meeting with operating managers and learning the business at SISI. Lyle has told the managers he
wants to partner with them to help solve their problems. Lyle
a. probably believes that training can solve most organizational problems.
b. is displaying a strategic training mindset.
c. is taking a tactical approach to training.
d. is focusing on knowledge management.
Chapter 10
1. An effective performance management system must have all the following characteristics EXCEPT
a. it must link organizational strategy to ultimate results.
b. it must allow individual employees flexibility in how they will achieve ultimate results.
c. it must translate organizational strategies into unit-level actions.
d. it must assign unit-level actions to individual employees.
2. Which of the following statements is TRUE?
a. If ethical behavior were evaluated in a performance appraisal system and rewarded, employees would
sometimes be rewarded for causing immediate or long-term financial losses to the organization.
b. Performance appraisal systems are most effective when the behaviors evaluated are objectively
measurable or observable. This is the main reason why most performance appraisal systems do not

incorporate specific evaluations of the ethical aspect of employee performance.

c. An organizations ethical culture is independent of its performance management system.
d. A performance-driven organization culture, especially one using management-by-objective
performance appraisal, is incompatible with strict ethical standards for employee behavior.
3. ____ is the process of determining how well employees do their jobs relative to a standard and
communicating that information to the employee.
a. Employee development
b. Performance management
c. Process improvement
d. Performance appraisal
4. Ultimately, performance management links organizational strategy to organizational
a. culture.
b. goal setting.
c. rewards.
d. results.
5. In order to translate organizational strategies in to employee behaviors that support these strategies,
performance management systems use a variety of techniques at the individual employee level. These
techniques include all of the following EXCEPT
a. informing the employee of the expected performance levels.
b. rewarding the individual employee based on his/her performance.
c. ensuring that the individual employee is satisfied with his/her performance appraisal.
d. providing feedback on individual employee performance.
6. In comparison to some Asian countries such as China and Japan, U.S.
a. managers are brutally honest in communicating negative information to employees in performance
appraisals.
b. performance appraisal systems over-emphasize traits rather than behaviors.
c. performance appraisal systems are based on fewer sources of information.
d. managers tend to be so tactful in communicating performance decrements to employees that employees
often do not know where they stand.
7. Which of the following statements is TRUE regarding performance management in a global setting?
a. Because human psychology is the same worldwide, a well-designed performance management system
will work in any cultural setting.
b. Business organizations in every culture include some type of formal performance feedback for
employees.
c. U.S.-style performance management systems are becoming more widely used overseas because of their
effectiveness in increasing employee performance.
d. U.S. companies may need to eliminate their performance management processes in certain countries.
8. Research has shown that performance-driven organizational cultures
a. are based on eliminating differentiations among employees and commitment to equality of rewards for
employees.
b. is typically welcomed by employees when it is instituted in a formerly entitlement-based organizational
culture.
c. require behavior-based performance measures.
d. tend to have significantly higher financial results compared with other types of organizational cultures.
9. Which of the following statements is TRUE?
a. Pay-for-performance systems do not work well for CEOs because most CEO performance is not
objectively measurable.
b. Performance-based pay systems for CEOs typically build in penalties for unethical behavior.
c. Performance-based pay systems for CEOs are a key factor in an organizations development of a
performance-driven culture.

d. Pay-for-performance systems do not work well for CEOs because organizational performance is
strongly affected by economic factors beyond the CEOs control
10. At SafeGreen, Inc., there is little variation in pay among employees within the existing job categories.
Raises are essentially the same for average and excellent performers. Although performance appraisals
are performed regularly, everyone views the process as paper-shuffling. The from the point of view of its
performance appraisal system, the culture of SafeGreen, Inc., can best be described as
a. entitlement-based.
b. bureaucratic.
c. performance-driven.
d. equity-driven.
Chapter 3
1. Which of the following statements is FALSE?
a. Some cities and states have made discrimination on the basis of sexual orientation illegal.
b. Veterans of the Vietnam War have additional employment protections over veterans of other wars.
c. An individual whose mother is Polynesian and whose father is Native American would not be a
member of a protected class.
d. Individuals under 40 are not protected from age discrimination.
2. In its broad sense, discrimination means
a. ethnocentrism.
b. viewing people with different characteristics negatively.
c. recognizing differences among items or people.
d. illegal employment practices.
3. The most fundamental anti-discrimination employment law, the one that is considered the keystone for
following legislation, is the
a. Fourteenth Amendment of the U.S. constitution.
b. Civil Rights Act of 1964.
c. Executive Order 11246.
d. Equal Pay Act of 1963.
4. Individuals who fall within a group identified for special treatment under equal employment laws and
regulations, are members of a/an
a. oppressed minority.
b. protected class.
c. employment caste.
d. special treatment class.
5. A large commercial landscaping service in the Southwest requires all Hispanic applicants for crew boss
positions to have a U.S. high school diploma. Native English speakers are not required to have a high
school diploma. The stated business purpose of this requirement is to insure that the Hispanic applicants
speak English well enough to perform the job. This is an example of
a. disparate treatment.
b. a bona fide occupational requirement.
c. disparate impact.
d. a business necessity.
Chapter 11
1. Behemoth Industries has experienced huge losses for the last three years due to collapsing sales of their
outdated product line. Behemoths stock has plummeted on Wall Street because it has not met projected
profits for the 24th straight quarter. Behemoth has moved to a pure pay-for-performance system that is
tied to achievement of organizational profit goals. Which of the statements below are most likely to be
TRUE?
a. Only high performers at Behemoth can be certain that they will receive a pay increase.
b. No Behemoth employee can expect he/she will receive a pay increase, regardless of his/her
performance.

c. All employees except those who are the worst performers can expect that they will receive a pay
increase.
d. Behemoth will be able to attract high performing employees from its competitors.
2. If an organizations competitive strategy relies on long-term relationships with the clients who purchase
the organizations goods and services, the organization should reward its employees from its executives to
its sales staff with incentives based on
a. quarterly sales.
b. annual profits.
c. prices of its stocks in daily trading.
d. a rolling five-year measure of financial performance.
3. Compensation is one of the organizations largest expenditures. Compensation philosophies and
systems vary from one organization to the next. Why is that?
a. There is no one right way to compensate employees. Many systems will work equally well in any
organization.
b. Different organizations have different organizational objectives and strategies.
c. Legal requirements mandate different types of compensation systems depending on the organizations
industry.
d. Organizations depend heavily on consultants to design their compensation systems, and each
consulting firm has its own system.
4. Which of the following is NOT a non-monetary reward?
a. training and development programs.
b. matching stock purchase plans.
c. career management services.
d. employee recognition.
5. All of the following are compensation objectives of the organization EXCEPT
a. legal compliance with relevant laws and regulations.
b. internal, external and individual equity for employees.
c. the lowest total cost of compensation among direct competitors.
d. performance enhancement for the organization.
Chapter 12
1. In a true pay-for-performance system, which of the following employees would qualify for incentive
reward?
a. Jack has met his sales quota even though he was hospitalized for appendicitis during the year.
b. Otto manages to meet the minimum required sales on his store location despite the fact that the
business building next door, where he receives most of his customer traffic, has closed.
c. Charlene performs up to expectations as a science teacher at a magnet high school.
d. Chris brings in 20 percent more new clients for the branch bank than is required.
2. All of the following are potential outcomes of a successful pay-for-performance plan EXCEPT
a. greater predictability of employee pay.
b. retention of high performers.
c. improved safety records.
d. aligning employee behavior with organizational business goals.
3. What are variable pay plans?
a. methods of tying compensation to the Consumer Price Index (CPI) in order to keep up with inflation
b. additional tangible rewards given to employees for performance beyond normal expectations
c. compensation that increases as employees gain new job-related knowledge, skills, and abilities
d. incentives to meet required performance standards
4. Traditional compensation systems pay employees differently based on their job responsibilities and
base employee increases mainly on
a. meeting organizational objectives.
b. growth in capabilities and competencies.

c. years of seniority.
d. changes in the Consumer Price Index.
5. Which of the following is an assumption of variable-pay systems?
a. Some jobs contribute more to organizational success than others.
b. Cooperation and teamwork can be enhanced when individuals are rewarded for extra efforts.
c. Equality in pay is a strong motivator of exceptional employee performance.
d. Both good and poor performing employees will perceive a pay system that rewards high performance
as satisfying and equitable.