LMNO Corporation is a U.S.-based company with four distinct businesses, including a national music and video store chain, a rap music production company, a talent agency that represents several famous rap stars, and a digital video disc (DVD) production facility that makes and records music videos on DVDs. LMNO is in the process of acquiring another company, its major music store rival BeBop Records. Because its rap stars are so famous, LMNO charges crazed fans a higher price for its music compact discs and DVD videos. The fans don't mind, as they often have the opportunity to meet the rap stars in person at various LMNO music stores throughout the year. LMNO has a policy of promotion from within as well as a no-layoff policy, and all managers are required to rotate through each business before they can be promoted.

LMNO Corporation is a U.S.-based company with four distinct businesses, including a national music and video store chain, a rap music production company, a talent agency that represents several famous rap stars, and a digital video disc (DVD) production facility that makes and records music videos on DVDs. LMNO is in the process of acquiring another company, its major music store rival BeBop Records. Because its rap stars are so famous, LMNO charges crazed fans a higher price for its music compact discs and DVD videos. The fans don't mind, as they often have the opportunity to meet the rap stars in person at various LMNO music stores throughout the year. LMNO has a policy of promotion from within as well as a no-layoff policy, and all managers are required to rotate through each business before they can be promoted.

Refer to Scenario 4.1. Which grand strategy does LMNO appear to have chosen at this time?
a. Cost leadership
b. Stability
c. Growth
d. Analyzer
e. Prospector

Refer to Scenario 4.1. Which corporate-level strategy does LMNO appear to follow?
a. Related diversification
b. Unrelated diversification
c. Retrenchment
d. Differentiation
e. Cost leadership

Refer to Scenario 4.1. Which competitive strategy does LMNO's music and video store chain appear to have adopted?
a. Focus
b. Growth
c. Stability
d. Cost leadership
e. Differentiation

Refer to Scenario 4.1. Which organizational form or design is LMNO likely to have adopted?
a. Functional, or U-form
b. Conglomerate, or H-form
c. Divisional, or M-form
d. Horizontal
e. Vertical

Refer to Scenario 4.1. LMNO's policies of no layoffs and promotion from within are likely to have the MOST positive effect on
a. production efficiency.
b. leadership within the company.
c. excessive absenteeism, due to the threat of being fired.
d. employees' psychological contracts with the company.
e. employee attrition.
c. Growth
a. Related diversification
e. Differentiation
c. Divisional, or M-form
d. employees' psychological contracts with the company.

Pierre would like to increase the effectiveness of human resources at his firm. What advice would you give him?

Pierre would like to increase the effectiveness of human resources at his firm. What advice would you give him?



a. Don't have formal performance appraisals because workers are upset by criticism.
b. Carefully control the behavior of teams and don't let them make their own decisions.
c. Don't pay everyone the same. Pay high-performing workers more in order to increase motivation.
d. Don't annoy workers by constantly requiring them to go through a lot of training.
e. Assume that quiet workers are happy; there's no reason to bother them with attitude surveys.


Answer: C

When Hershey family interests considered selling their Hershey Foods stock in 2001, employees were outraged. They felt betrayed and were angry and pessimistic. Which individual or interpersonal process was interfering with implementation of Hershey's strategy?

When Hershey family interests considered selling their Hershey Foods stock in 2001, employees were outraged. They felt betrayed and were angry and pessimistic. Which individual or interpersonal process was interfering with implementation of Hershey's strategy?



a. Worker personalities
b. Worker attitudes
c. Motivation
d. Team processes
e. Communication


Answer: B

Adrienne believes that it is fine to spend one or more hours each workday talking on the phone with personal friends. Adrienne's employer disagrees. This disagreement involves which part of the psychological contract?

Adrienne believes that it is fine to spend one or more hours each workday talking on the phone with personal friends. Adrienne's employer disagrees. This disagreement involves which part of the psychological contract?



a. The attitude
b. The organizational inducements
c. The personality
d. The individual contributions
e. The motivation


Answer: D

What is a psychological contract?

What is a psychological contract?



a. The extent to which people perceive they are being treated equitably by their organization
b. The set of expectations held by an individual as to what he or she will contribute to the organization and what the organization will provide in return
c. The set of psychological attributes or traits that distinguish one individual from another
d. The attitudes an individual holds toward the employing organization
e. A contract for psychological counseling provided by the organization


Answer: B

The Home Depot is following an overall strategy of growth. It's the fastest-growing retailer in history, opening a new store every 43 hours. Which of the following actions is Home Depot NOT likely to use as it implements its strategy?

The Home Depot is following an overall strategy of growth. It's the fastest-growing retailer in history, opening a new store every 43 hours. Which of the following actions is Home Depot NOT likely to use as it implements its strategy?



a. The Home Depot will hire many employees in the near future.
b. The Home Depot will increase its recruiting efforts.
c. The Home Depot will offer early retirement to workers.
d. The Home Depot will try to ensure that its current workers stay with the firm.
e. The Home Depot will offer extensive training to its staff.


Answer: C

Yum Brands began with three businesses: Pizza Hut, Taco Bell, and Kentucky Fried Chicken. Since its founding, the company has acquired other fast-food firms, including Long John Silver's and A&W. Which type of organization design would be most appropriate for Yum's strategy?

Yum Brands began with three businesses: Pizza Hut, Taco Bell, and Kentucky Fried Chicken. Since its founding, the company has acquired other fast-food firms, including Long John Silver's and A&W. Which type of organization design would be most appropriate for Yum's strategy?



a. A functional design
b. A unitary design
c. A multidivisional design
d. A holding company
e. A horizontal corporation design


Answer: C

Tia's Tamale Factory employs 50 workers to make and ship food products all over the United States. Tia's factory is located in Southern California, in a community where 60 percent of the residents have Spanish surnames or identify themselves as Hispanic. Tia must hire a new cook and despite her best efforts, she gets only three applicants. Conchita is a 35-year-old Hispanic female, Sancho is a 17-year-old Hispanic male, and Maureen is a 48-year-old white woman who uses a wheelchair.

Tia's Tamale Factory employs 50 workers to make and ship food products all over the United States. Tia's factory is located in Southern California, in a community where 60 percent of the residents have Spanish surnames or identify themselves as Hispanic. Tia must hire a new cook and despite her best efforts, she gets only three applicants. Conchita is a 35-year-old Hispanic female, Sancho is a 17-year-old Hispanic male, and Maureen is a 48-year-old white woman who uses a wheelchair.



Refer to Scenario 2.1. Tia's workers are mostly Hispanic women. If Tia believes that only a Hispanic women could fit in at her workplace and hires Conchita for this reason, it will likely be
a. discrimination on the basis of national origin in violation of Title VII.
b. discrimination on the basis of age in violation of the ADEA.
c. permissible discrimination because national origin would be a bona fide occupational qualification in this case.
d. permissible because most of the local residents are Hispanics.
e. permissible because Tia is a private employer.



Refer to Scenario 2.1. Suppose Tia does not hire Sancho. Which of the following regulations could Sancho use in an attempt to claim that Tia discriminated against him?
a. Americans with Disabilities Act
b. The disparate treatment clause of Title VII, due to his race
c. The disparate treatment clause of Title VII, due to his gender
d. Occupational Safety and Health Act
e. Age Discrimination in Employment Act



Refer to Scenario 2.1. Suppose Conchita and Maureen are equally qualified and Tia flips a coin to decide between them. The coin lands on tails and accordingly Tia hires Maureen. This action would probably be
a. a violation of Executive Order 11246.
b. a violation of the Equal Protection Clause of the Fourteenth Amendment.
c. a violation of Title VII.
d. not a violation of Title VII because the other employees are primarily Hispanic.
e. permissible under Title VII because the applicants were treated equally.



Refer to Scenario 2.1. Suppose Conchita and Maureen are equally qualified but Tia must raise the stove at a cost of $10,000 to accommodate Maureen's wheelchair. To avoid the expense, Tia hires Conchita. It is likely this action is
a. lawful under ADA because the applicants were equally qualified.
b. unlawful under Title VII because the applicants were of different races.
c. lawful under ADA if the accommodation was an undue hardship on Tia.
d. lawful under ADA. Maureen is not considered disabled under ADA because her disability is correctable with a wheelchair.
e. unlawful under the ADEA because Conchita is younger than Maureen.

Mini-PC is a Houston-based maker of handheld computers. In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld manufacturer in Stockholm

Mini-PC is a Houston-based maker of handheld computers. In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld manufacturer in Stockholm, Sweden. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U.S. managers to oversee Swedish operations. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value women's rights, and are predominantly Christian in religious beliefs. Sweden has an extremely stable political system, a sound economy, a highly educated workforce, and it is a member of the European Union. However, Swedes do take a different view of work time, in that they expect at least two months of vacation per year. Also, the Swedish workforce is about 80% unionized, in comparison to Mini-PC's nonunionized workforce. Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower health benefits costs for employers. When comparing average national scores on Hofste e's dimensions of culture, the United States and Sweden are about the same in power distance and long-term orientation, but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity.

Refer to Scenario 3.1. Which staffing model is Mini-PC using for its Swedish unit?
a. Geocentric
b. Ethnocentric
c. Polycentric
d. Egocentric
e. Multicentric

Refer to Scenario 3.1. Which aspect of culture will MOST likely affect Mini-PC's human resource activities at the corporate level because of differences between its U.S. and Swedish business units?
a. Language
b. Religious differences
c. Gender roles
d. Personal norms
e. Differences in views of child labor

Refer to Scenario 3.1. On the basis of scores on Hofstede's dimensions of culture, which organization cultural values will create the most discomfort and resistance among Swedish workers?
a. Swedes will resist Mini-PC's policy of calling everyone, from the CEO to the lowest worker, by his or her first name.
b. Swedes will place a much greater value on patience and persistence than do Mini-PC's American workers.
c. Swedes will prefer to emphasize individual contributions, as opposed to Mini-PC workers in the United States, who value team or group contributions.
d. Swedes will be much less competitive, ambitious, and driven than Mini-PC's American workers.
e. Swedes will not be comfortable when given tasks that are too structured, as opposed to American workers, who prefer lots of structure.

Refer to Scenario 3.1. Which international strategy is Mini-PC using to expand its international operations?
a. Exporting
b. Licensing
c. Direct investment
d. Joint venture
e. Strategic alliance

Rolex, a maker of expensive, high-quality watches that convey status and luxury, follows a differentiation strategy. Therefore, an important goal of its human resource strategy will likely be to

Rolex, a maker of expensive, high-quality watches that convey status and luxury, follows a differentiation strategy. Therefore, an important goal of its human resource strategy will likely be to



a. focus employee training on cost reduction efforts.
b. hire workers who are flexible and can perform a variety of tasks.
c. keep the size of the workforce small to increase efficiency.
d. retrench using layoffs and terminations.
e. provide minimal compensation and benefits.


Answer: B

_____ are often used to help talented executives who are in trouble because of behavioral style deficiencies, or to help them lead critical transitions, such as having to lead a major change effort.

_____ are often used to help talented executives who are in trouble because of behavioral style deficiencies, or to help them lead critical transitions, such as having to lead a major change effort.



A)Psychologists
B)External coaches
C)Hypnotists
D)Administrative consultants


Answer: external coaches

The time and money expended for training will increase in the future for all of the following reasons EXCEPT:

The time and money expended for training will increase in the future for all of the following reasons EXCEPT:



A)undereducated youth will be needed for entry-level jobs.
B)a power shift away from the customer.
C)transfer of mission-critical knowledge to those who remain will become a top priority.
D)underutilized minorities will be entering the workforce.


Answer: a power shift away from the customer

What is the purpose of the assessment phase of training?

What is the purpose of the assessment phase of training?



A)To design the environment in which to achieve the objectives of the training program.
B)To define what it is the employee should learn in relation to desired job behaviors.
C)To choose methods and techniques carefully and deliver them systematically.
D)To establish indicators of success training, as well as on the job.


Answer: To define what it is the employee should learn in relation to desired job behaviors.

Which of the following is a disadvantage of forced distribution?

Which of the following is a disadvantage of forced distribution?



A)Difficult to make comparisons across employees.
B)May be inaccurate if a group of employees is either very effective or ineffective.
C)Provides little basis for individual feedback and development.
D)Forces raters to make distinctions among employees.


Answer: May be inaccurate if a group of employees is either very effective or ineffective.

Which of the following steps will NOT help to avoid legal difficulties in regard to performance appraisals?

Which of the following steps will NOT help to avoid legal difficulties in regard to performance appraisals?



A)Conduct a job analysis to determine the characteristics necessary for successful job performance.
B)Include formal appeal mechanisms, coupled with higher-level review of appraisals.
C)Train supervisors to avoid documenting cases where subjective standards were applied unevenly to members of protected groups.
D)Provide some form of performance counseling or corrective guidance to assist poor performers.


Answer: Train supervisors to avoid documenting cases where subjective standards were applied unevenly to members of protected groups.

Which of the following is an advantage of narrative essays?

Which of the following is an advantage of narrative essays?



A)Good for individual feedback and development.
B)Good for making comparisons across employees.
C)Forces raters to make distinctions among employees.
D)Provides a direct link between job analysis and performance appraisal.


Answer: good for individual feedback and development

_____ is a process of managing that relies on goal-setting to establish objectives for the organization as a whole, for each department, for each manager within each department, and for each employee.

_____ is a process of managing that relies on goal-setting to establish objectives for the organization as a whole, for each department, for each manager within each department, and for each employee.



A)FOR
B)BARS
C)MBO
D)IDPS



Answer: MBO

The simplest type of absolute rating system is _____, in which a rater describes, in writing, an employee's strengths, weaknesses, and potential, together with suggestions for improvement.

The simplest type of absolute rating system is _____, in which a rater describes, in writing, an employee's strengths, weaknesses, and potential, together with suggestions for improvement.



A)simple ranking
B)narrative essay
C)relative essay
D)comparative


Answer: narrative essay

_________ implies that there are clear links between the performance standards for a particular job and organizational objectives, and between the critical job elements identified through a job analysis and the dimensions to be rated on an appraisal form.

_________ implies that there are clear links between the performance standards for a particular job and organizational objectives, and between the critical job elements identified through a job analysis and the dimensions to be rated on an appraisal form.



A)Acceptability
B)Reliability
C)Relevance
D)Sensitivity


Answer: relevance

The advantage of using a behavioral checklist is that:

The advantage of using a behavioral checklist is that:



A)it is good for individual feedback and development.
B)the meaning of response categories is generally interpreted similarly by various raters.
C)it focuses directly on job behaviors.
D)it provides a direct link between job analysis and performance appraisal.


Answer: it provides a direct link between job analysis and performance appraisal.

Which of the following is not a supervisory activity that should be done before a performance feedback interview?

Which of the following is not a supervisory activity that should be done before a performance feedback interview?



A)Set goals that you feel the employee should strive for.
B)Communicate frequently with subordinates about their performance.
C)Get training in performance appraisal interviewing.
D)Plan to use a problem-solving approach rather than "tell-and-sell."


Answer: set goals that you feel the employee should strive for

An administrative exercise that is typically done once a year to identify and discuss job-relevant strengths and weaknesses of individuals or work teams is:

An administrative exercise that is typically done once a year to identify and discuss job-relevant strengths and weaknesses of individuals or work teams is:



A)performance appraisal.
B)performance facilitation.
C)performance encouragement.
D)performance standard.


Answer: performance appraisal

_________ focus on employee behaviors, either by comparing the performance of employees to that of other employees or by evaluating each employee in terms of performance standards without reference to others.

_________ focus on employee behaviors, either by comparing the performance of employees to that of other employees or by evaluating each employee in terms of performance standards without reference to others.



A)Behavior oriented rating systems
B)MBO-oriented
C)Relative systems
D)Results-oriented systems


Answer: behavior oriented rating systems

Which of the following statements about graphic rating scales is false?

Which of the following statements about graphic rating scales is false?



A)They may not yield the depth of essays or critical incidents.
B)They are time-consuming to develop and administer.
C)They allow results to be expressed in quantitative terms.
D)They consider more than one performance dimension.


Answer: They are time-consuming to develop and administer.

________ feedback utilizes input from a variety of sources including managers, subordinates, peers and customers to provide a perspective on performance from all angles.

________ feedback utilizes input from a variety of sources including managers, subordinates, peers and customers to provide a perspective on performance from all angles.



A)Multi-variance
B)Multirater or 360-degree
C)Various sources
D)SPOT


Answer: multirater of 360-degree

The term BARS stands for:

The term BARS stands for:



A)Behavior and reaction system.
B)Best anchored rating system.
C)Behavior attitude reconstruction.
D)Behaviorally anchored rating scales.


Answer: behaviorally anchored rating scales

This approach assumes that a candid statement from a rater who is knowledgeable about an employee's performance is just as valid as more formal and more complicated rating methods.

This approach assumes that a candid statement from a rater who is knowledgeable about an employee's performance is just as valid as more formal and more complicated rating methods.



A)Simple ranking
B)Paired comparisons
C)Narrative essay
D)Alternation ranking


Answer: narrative essay

If a rater is asked to assess an employee's performance over a 6- to 12-month period, _____ ratings may result, especially if information has been stored in a rater's memory according to irrelevant, over simplistic, or otherwise faulty categories.

If a rater is asked to assess an employee's performance over a 6- to 12-month period, _____ ratings may result, especially if information has been stored in a rater's memory according to irrelevant, over simplistic, or otherwise faulty categories.



A)objective
B)impartial
C)biased
D)neutral


Answer: biased

_____ error results when a rater assigns his/her ratings on the basis of the employee's most recent performance, and is most likely to occur when appraisals are done only after long periods.

_____ error results when a rater assigns his/her ratings on the basis of the employee's most recent performance, and is most likely to occur when appraisals are done only after long periods.



A)Halo
B)Contrast
C)Recency
D)Virtual


Answer: recency

In the context of training, research suggests that we do all of the following in attempting to maximize trainees' identification with a model EXCEPT:

In the context of training, research suggests that we do all of the following in attempting to maximize trainees' identification with a model EXCEPT:



A)the model should be similar to the observer in age, gender, and race.
B)rank the behaviors to be modeled in a sequence from most to least difficult.
C)portray the behaviors to be modeled clearly and in detail.
D)have several models portray the behaviors, not just one.


Answer: rank the behaviors to be modeled in a sequence from most to least difficult.

Regardless of which specific training method is chosen, it should attempt to all of the following EXCEPT:

Regardless of which specific training method is chosen, it should attempt to all of the following EXCEPT:



A)motivate the employee to evaluate the effectiveness of the training.
B)provide opportunities for practice.
C)structure material from simple to complex.
D)provide feedback and reinforcement.


Answer: motivate the employee to evaluate the effectiveness of the training.

Training that results in ______ is costly because of the cost of training (which proved to be useless) and the cost of hampered performance.

Training that results in ______ is costly because of the cost of training (which proved to be useless) and the cost of hampered performance.



A)applicability of training
B)simulation of training
C)negative transfer of training
D)reinforcement of training


Answer: negative transfer of training

_____ provides exposure to and practice with other teammates' tasks, roles, and responsibilities in an effort to increase shared understanding and knowledge among team members.

_____ provides exposure to and practice with other teammates' tasks, roles, and responsibilities in an effort to increase shared understanding and knowledge among team members.



A)Team-coordination training
B)Evaluation training
C)Cross-training
D)Guided-team correction


Answer: cross-training

Increasing an individual's employability outside the company simultaneously increases his/her job security and desire to stay with the current employer is known as the:

Increasing an individual's employability outside the company simultaneously increases his/her job security and desire to stay with the current employer is known as the:



A)training paradox.
B)Pygmalion effect.
C)distributed practice.
D)massed practice.


Answer: training paradox