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Meghan hired Trent right out of college. Trent had brought a lot to the position at the Outdoor Adventure Sporting Goods firm where Meghan served as Marketing Director over the baseball, basketball, and hockey lines. Yesterday, Trent submitted his resignation after only one year on the job, and disclosed that he is leaving sporting goods and taking a job in Canada where he will be marketing a hockey arena. Meghan is beside herself and has decided to personally conduct an exit interview. In evaluating this situation, you agree that Meghan is probably the best person to conduct this interview.

A) True
B) False

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Employment testing


A) was declared illegal by the EEOC in 1989, because it was often used to discriminate against women and minorities.
B) is legal, but is a very poor predictor of worker performance.
C) should be directly related to the job.
D) should focus on the most basic and general skills rather than on skills directly related to the job.

E) None of the above
F) B) and D)

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Michael is a worker at a large discount retailer and his wife works at a national bank with several branches. They recently adopted a child and agreed that each would take six weeks of leave from work in order to care for the child. According to the Family and Medical Leave Act, one, but not both, are eligible for leave.

A) True
B) False

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Which of the following is a valid statement about contingent workers?


A) Contingent workers are seldom skilled professionals.
B) By law, employers must provide contingent workers the same salary and benefits as permanent employees.
C) An increasing number of companies are hiring skilled professionals, such as accountants, as part of their contingent workforce.
D) By law, companies cannot hire contingent workers as part of the management team.

E) B) and C)
F) None of the above

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Steve is an office manager with a financial company. His company recently announced that it will soon implement a flextime plan. Under this new system, Steve is likely to find that


A) he will have to work longer hours.
B) workers tend to forget their work schedules.
C) almost all of his workers decide to change to an earlier schedule.
D) he will have to work harder to maintain high morale among the employees in his office.

E) A) and D)
F) B) and D)

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Daisy just accepted a management position at the Ecologic Plant Life Corporation. In order to give her an appreciation of the different functional areas of her new company, she is required to spend six weeks in each of five different functional areas of the company, including production, research and development, accounting, marketing, and the HR management department. This type of training is known as contingency employment.

A) True
B) False

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The ________, which is developed from the previous four steps of the human resource planning process, addresses how the firm will accomplish a wide array of human resource functions such as recruiting, selecting, training and developing, appraising, compensating, and scheduling its employees.


A) strategic plan
B) tactical plan
C) job specification
D) Gantt chart

E) B) and D)
F) A) and B)

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Airlines, hotels, hospitals, and many other service organizations are so labor intensive that the cost of labor is their primary cost of operations.

A) True
B) False

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Job applications can ask about educational background and past job experience.

A) True
B) False

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In just a few short weeks, Jon would arrive back in the states after a semester abroad. He was already in a temp agency's database from the previous summer, when he spent 8 weeks working for an accounting firm. Jon will again try to hire on as a ________ during the summer months. The company that hired him last summer typically hires several college students each year, mainly because they have good computer skills, and the company does not need to offer college students benefits.


A) contingent worker
B) intermediate worker
C) primary worker
D) apprentice

E) None of the above
F) All of the above

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Pete joined Texas Technologies as a sales manager. Upon starting, part of his sign-on bonus included the opportunity to buy up to 500 shares of the company's publicly traded stock at $10 per share, during the first three months of employment. The stock was trading on the NASDAQ exchange for $22 per share. Pete's new company was offering a dividend reinvestment plan.

A) True
B) False

Correct Answer

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Top managers at Unifaze Corporation have decided that the company must downsize, but are concerned about the effect the reduction in employment will have on the morale of the remaining employees. One way top management could keep morale from suffering would be to establish an early retirement program.

A) True
B) False

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Like all management, human resource management begins with planning.

A) True
B) False

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Which of the following statements identifies a key difference between a job description and a job specification?


A) A job description is concerned with the short-run objectives of a job, but a job specification is concerned with the job's long-run objectives.
B) A job description is based on a human resource inventory, while a job specification is the result of a performance appraisal.
C) A job description is a statement about the job, while a job specification is a statement about the person who does the job.
D) A job description is a brief summary of what a job involves, while a job specification is a detailed and technically complete statement of what a job involves.

E) C) and D)
F) B) and D)

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Companies compete with other firms for good employees.

A) True
B) False

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Fringe benefit payments account for more than 30 percent of payroll costs today.

A) True
B) False

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Though controversial, it is not uncommon for companies today to test their employees and job applicants for drug use.

A) True
B) False

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Which of the following statements about home-based work is most accurate?


A) Although home-based work may become very popular in the future, only a small percentage of workers currently work at home on a regular basis.
B) Home-based work offers big advantages for many workers, but is likely to increase costs for employers significantly.
C) Home-based work tends to increase the productivity of almost all workers, since people tend to be more productive when they are comfortable and can work flexible hours.
D) Home-based work allows workers to choose their own hours and interrupt work for child care and other tasks, but this freedom and flexibility can create problems for some workers.

E) All of the above
F) A) and B)

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Today, fringe benefits account for more than ________ percent of total payroll costs.


A) 6
B) 18
C) 24
D) 30

E) None of the above
F) A) and B)

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When she met with Rafi to discuss his performance appraisal, Cady noted that Rafi had difficulty with managing his time on certain projects. One drawback of a performance appraisal is that it does not allow for feedback during the evaluation process.

A) True
B) False

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