Deck 6: Human Resource Decision Making in Organizations

Question 1

Which type of justice refers to beliefs about the fairness of the processes utilized to determine consequences?

A) Distributive
B) Procedural
C) Interactional
D) Person-organization
E) Reciprocal

Answer 1

B

Question 2

Which of the following is part of rightsizing?

A) Using temporary workers
B) Early retirements
C) Retention
D) Using part-time staff
E) All of these

Answer 2

E

Question 3

Tom, one of Pino's employees, is failing to perform to standard. Pino wants to use progressive discipline to change Tom's behavior. What should Pino do the next time he observes Tom's failure to perform?

A) Put a written record of the incident in Tom's personnel file.
B) Tell Tom's superior.
C) Ask the human resources department for help.
D) Give Tom a verbal warning.
E) Write a negative performance appraisal of Tom.

Answer 3

D

Question 4

When an organization seeks to keep qualified workers, this is called

A) natural attrition.
B) voluntary turnover.
C) retention.
D) termination.
E) downsizing.

Question 5

In addition to job satisfaction, what other factors are thought to play a role in job turnover?

A) The economy
B) Profound events that impact the employee
C) The labor market
D) The degree of job embeddedness
E) All of these

Question 6

Voluntary turnover occurs when

A) employees choose to leave the organization for a variety of reasons.
B) a facility is closed and all of its workers are put out of work.
C) an unsatisfactory employee must be terminated.
D) job satisfaction is very high.
E) managers choose to leave job vacancies unfilled.

Question 7

Guo-Ping would like to take action to stop a recent decline in profits and stock price at his firm. What strategy would you recommend to Guo-Ping?

A) Lay off employees to increase profits the most.
B) Make no changes. Employees and investors will react positively when they see you are not panicking.
C) Reduce facilities and other tangible assets to cut expenses.
D) Acquire a competitor to increase size and market power.
E) Lay off employees so that the survivor syndrome will cause the other workers to increase productivity.

Question 8

Which of the following is NOT an exception to employment-at-will?

A) A law forbids termination for a specific reason.
B) An employee is terminated for cause.
C) An individual has an implied contract.
D) An individual has a contractual right to his or her job.
E) A person's right to due process has been violated.

Question 9

Which of the following statements is MOST accurate in describing the outcomes of downsizing?

A) Downsizing is more effective at increasing performance than is a reduction in tangible assets.
B) Downsizing usually does NOT increase profits in the long run.
C) Downsizing is more effective in the long run than in the short run.
D) Downsizing is almost always effective in reducing long-run expenses.
E) Downsizing is effective in increasing stock prices in the long run.

Question 10

Sally's boss Kim had to choose which workers to lay off. Sally felt that Kim did not handle the situation professionally because she announced who would be laid off in front of all the employees in a meeting, which embarrassed some workers. In this situation, Sally perceives

A) a lack of procedural justice.
B) illegal discrimination.
C) a lack of interactional justice.
D) a lack of distributive justice.
E) violation of employment-at-will.

Question 11

Julie fired Annette. Which of the following circumstances would MOST improve the chances of Annette getting her job back?

A) Julie did not document Annette's poor performance in writing.
B) Julie is white and Annette is Asian-American.
C) Julie used a positive discipline plan rather than a more traditional plan.
D) Annette is a member of a labor union.
E) The company was hiring new workers at the same time as the firing.

Question 12

A shock, or profound event, can sometimes cause turnover if the

A) shock is negative.
B) labor market is currently favoring employers.
C) shock increases job satisfaction.
D) worker is very embedded in his or her job.
E) shock causes the worker to reexamine his or her fit with the firm.

Question 13

An advantage of seeking to retain effective employees is

A) the retained employees can bring fresh ideas to the organization.
B) turnover opportunities create advancement for current employees.
C) morale will increase if dissatisfied workers stay at the firm.
D) avoiding the expense involved in replacing employees.
E) nothing. There are NO advantages to retaining effective employees.

Question 14

Andy tries to be fair to his employees but does not tolerate lateness. Will, one of his employees, reported to work late one day because he had a car wreck, the first tardy since he was hired over a year ago. Andy decided to give Will a written warning to make an example for the other employees. Will felt that he did NOT receive ____ justice.

A) procedural
B) involuntary
C) distributive
D) legal
E) interactional

Question 15

Cinergy, a midwestern gas and electric utility, agreed not to penalize workers who left the company before the age of 65 and also offered leaving employees a bonus equivalent to two weeks' pay for every year of employment with Cinergy. Cinergy is

A) generating a pool of qualified applicants.
B) encouraging voluntary early retirement.
C) terminating unproductive employees.
D) reducing the workforce through natural attrition.
E) cutting its human resource department.

Question 16

John often gets into heated arguments with his bosses over his job responsibilities. He is likely to be dissatisfied with his job due to

A) the pay.
B) the work itself.
C) relationships with supervisors.
D) relationships with coworkers.
E) a negative personality.

Question 17

The easiest way for a company to manage an increase in the demand for staff is through

A) overtime.
B) early retirements.
C) downsizing.
D) temporary workers.
E) part-time workers.

Question 18

Following a bankruptcy in 2003, Air Canada laid off thousands of employees-approximately 10 percent of its workforce. Which of the following is NOT one of the likely outcomes for Air Canada?

A) Workers who were not laid off will feel guilty.
B) Turnover will increase among workers who were not laid off.
C) Employee morale will decline.
D) Remaining workers will have higher disability claims.
E) Workers who were not laid off will be satisfied and happy.

Question 19

Which of the following disciplinary problems is MOST likely to lead to immediate termination?

A) Errors in work products
B) Physically fighting another coworker
C) Frequent absenteeism
D) Telling an unprofessional joke
E) Lying to one's superior

Question 20

What is the term for the ability of an employer or employee to terminate an employment relationship at any time?

A) Free employment
B) Work rights
C) Employment-at-will
D) Contingent work
E) Psychological contract

Question 21

Job satisfaction is often based on a person's:

A) coworkers.
B) pay.
C) supervisors.
D) type work.
E) all of these.

Question 22

Which of the following strategies would likely be MOST effective in allowing a high-tech company to retain its engineers and computer scientists for an extended period of time?

A) Realistic job previews
B) Stock options
C) Stock options that cannot be exercised for the first five years of employment
D) Reducing the job requirements to make the jobs simpler and easier to do
E) Regular administration of job satisfaction surveys

Question 23

Employee leasing involves paying a fee to a company that provides a pool of employees on a temporary basis.

Question 24

If a company uses many contingent workers, the easiest way to downsize involves employing more of these contingent workers while keeping the number of permanent employees constant.

Question 25

Allison often stays at work after hours to help fellow coworkers with their training and tasks; this is known as

A) organizational citizenship behavior.
B) job satisfaction.
C) turnover.
D) absenteeism.
E) job dissatisfaction.

Question 26

Distributive justice refers to perceptions that the process used to determine outcomes were fair.

Question 27

The easiest way to deal with an increased demand for labor in through overtime pay.

Question 28

Scenario 6.1
In 2003, managers at Bambino, a national retailer of baby products, noticed that sales and profits were slumping. Store managers were ordered not to fill any vacant positions, which saved some money. However, by January of 2004, it was essential that Bambino cut expenses further. The firm decided to offer incentives for early retirement to some of the more senior top managers. Many of them decided to voluntarily leave for retirement or other jobs. Expenses still remained high, and in May, the firm asked store managers to reduce staff by laying off 10 percent of their workers (about two workers per store). When those cuts were still not enough, management called for store closings in some locations. For example, in Phoenix the store closing was announced to employees on August 1 and accomplished by December 1. In locations where stores were not closed, managers were ordered to terminate any underperforming employees, identified by low performance appraisal scores on the last two evaluations.
Refer to Scenario 6.1. Which of the following is NOT a likely outcome of Bambino's actions?

A) Workers will suffer from the survivor syndrome.
B) Voluntary turnover will increase.
C) Job satisfaction and morale will decline.
D) There will be more organizational citizenship behaviors.
E) The layoffs and store closings will be a "shock" to remaining workers.

Question 29

Today, there is a severe shortage of nurses in some medical specialties, and hospitals are working hard to retain their current nursing staff. What would be MOST effective in retaining nurses?

A) Realistic job previews
B) Better working conditions
C) Job satisfaction surveys
D) Increasing job specialization
E) Early retirements

Question 30

Which of the following is NOT a critical dimension of procedural justice?

A) ethicality
B) free from bias
C) representativeness
D) work autonomy
E) voice

Question 31

Scenario 6.1
In 2003, managers at Bambino, a national retailer of baby products, noticed that sales and profits were slumping. Store managers were ordered not to fill any vacant positions, which saved some money. However, by January of 2004, it was essential that Bambino cut expenses further. The firm decided to offer incentives for early retirement to some of the more senior top managers. Many of them decided to voluntarily leave for retirement or other jobs. Expenses still remained high, and in May, the firm asked store managers to reduce staff by laying off 10 percent of their workers (about two workers per store). When those cuts were still not enough, management called for store closings in some locations. For example, in Phoenix the store closing was announced to employees on August 1 and accomplished by December 1. In locations where stores were not closed, managers were ordered to terminate any underperforming employees, identified by low performance appraisal scores on the last two evaluations.
Refer to Scenario 6.1. What was the SECOND reduction strategy that Bambino tried?

A) Termination
B) Layoffs
C) Natural attrition
D) Performance appraisal
E) Early retirement

Question 32

Ethics is formed primarily from the ____ context in which people and organizations function.

A) corporate
B) group
C) professional
D) societal
E) none of these

Question 33

The critical dimension of procedural justice involving the perception that group opinions were considered when a decision was made is called:

A) voice
B) consistency
C) representativeness
D) ethicality
E) possibility of correction

Question 34

Ethics and the law always coincide precisely.

Question 35

The critical dimension of procedural justice involving the perception that the person had some control over an outcome is called:

A) voice
B) consistency
C) representativeness
D) ethicality
E) possibility of correction

Question 36

Scenario 6.1
In 2003, managers at Bambino, a national retailer of baby products, noticed that sales and profits were slumping. Store managers were ordered not to fill any vacant positions, which saved some money. However, by January of 2004, it was essential that Bambino cut expenses further. The firm decided to offer incentives for early retirement to some of the more senior top managers. Many of them decided to voluntarily leave for retirement or other jobs. Expenses still remained high, and in May, the firm asked store managers to reduce staff by laying off 10 percent of their workers (about two workers per store). When those cuts were still not enough, management called for store closings in some locations. For example, in Phoenix the store closing was announced to employees on August 1 and accomplished by December 1. In locations where stores were not closed, managers were ordered to terminate any underperforming employees, identified by low performance appraisal scores on the last two evaluations.
Refer to Scenario 6.1. Which of Bambino's actions is likely to have a positive impact on profitability in the long term?

A) Early retirements
B) Layoffs
C) Store closings
D) Natural attrition
E) All of these

Question 37

Scenario 6.1
In 2003, managers at Bambino, a national retailer of baby products, noticed that sales and profits were slumping. Store managers were ordered not to fill any vacant positions, which saved some money. However, by January of 2004, it was essential that Bambino cut expenses further. The firm decided to offer incentives for early retirement to some of the more senior top managers. Many of them decided to voluntarily leave for retirement or other jobs. Expenses still remained high, and in May, the firm asked store managers to reduce staff by laying off 10 percent of their workers (about two workers per store). When those cuts were still not enough, management called for store closings in some locations. For example, in Phoenix the store closing was announced to employees on August 1 and accomplished by December 1. In locations where stores were not closed, managers were ordered to terminate any underperforming employees, identified by low performance appraisal scores on the last two evaluations.
Refer to Scenario 6.1. Was it legal for Bambino to lay off 10 percent of their workers?

A) No, because of employment-at-will concerns.
B) No, because the Worker Adjustment and Retraining Notification Act prohibits mass layoffs.
C) No, because Bambino didn't provide verbal and written warnings of the layoffs.
D) No, because the layoffs were not based on job performance.
E) Yes.

Question 38

The critical dimension of procedural justice involving the perception that rules were applied the same way to everyone involved is called:

A) voice
B) consistency
C) representativeness
D) ethicality
E) possibility of correction

Question 39

An individual's beliefs about right and wrong are considered to be part of individual:

A) voice
B) representativeness
C) ethics
D) consistency
E) administration

Question 40

Scenario 6.1
In 2003, managers at Bambino, a national retailer of baby products, noticed that sales and profits were slumping. Store managers were ordered not to fill any vacant positions, which saved some money. However, by January of 2004, it was essential that Bambino cut expenses further. The firm decided to offer incentives for early retirement to some of the more senior top managers. Many of them decided to voluntarily leave for retirement or other jobs. Expenses still remained high, and in May, the firm asked store managers to reduce staff by laying off 10 percent of their workers (about two workers per store). When those cuts were still not enough, management called for store closings in some locations. For example, in Phoenix the store closing was announced to employees on August 1 and accomplished by December 1. In locations where stores were not closed, managers were ordered to terminate any underperforming employees, identified by low performance appraisal scores on the last two evaluations.
Refer to Scenario 6.1. What was the FIRST reduction strategy that Bambino tried?

A) Termination
B) Layoffs
C) Natural attrition
D) Performance appraisal
E) Early retirement

Question 41

Define the three types of justice that workers may perceive as lacking during a layoff. Describe a specific hypothetical example of an action the firm can take to increase the workers' perceptions of each type of justice.

Question 42

Survivor syndrome involves the positive feelings that retained employees have after a mass layoff has occurred.

Question 43

The first step in a progressive disciplinary program is usually the verbal warning.

Question 44

Describe a basic model of the turnover process. What other models or mechanisms have been proposed to explain turnover? Explain how each of the proposed alternatives relates to the basic model.

Question 45

The WARN Act requires that employers give at least 60 days notice for a mass layoff.

Question 46

Interactional justice refers to quality of the interpersonal treatment people receive when a decision is made.

Question 47

Should an organization attempt to retain employees who prefer to leave voluntarily? Summarize the arguments for and against such action.

Question 48

What are organizational citizenship behaviors? Give at least three specific examples of employee actions that are organizational citizenship behaviors. What can the organization do to increase these behaviors?

Question 49

In a progressive disciplinary program, the step before termination is usually suspension.

Question 50

How does each of the retention strategies mentioned in your text address one of the three causes of job dissatisfaction?