CH-13-14 Working Effectively with Labor – Human Resource Management: Linking Strategy to Practice : Exam Guide

This Document Contains Chapters 13 to 14 Chapter 13: Working Effectively with Labor True/False 1. A labor union is an organization of workers who work collectively to network, socialize and create fellowship. Answer: False 2. Interest-based negotiations depend on each party competing to demonstrate the value of their interests. Answer: False 3. Regardless of HR strategy type, all organizations are better off without a unionized workforce. Answer: False 4. The gap between high- and low-performing employees is less in unionized organizations than organizations without unions. Answer: True 5. Unions tend to be incompatible with organizations that combine a desire for short-term relationships with an emphasis on recognizing performance differences. Answer: True 6. Organizations with unionized employees tend to invest less of their profits back into the business, because a higher percentage of the profit goes to employees in the form of higher wages. Answer: True 7. Cost-focused organizations are incompatible with unions because of the lower productivity of union labor. Answer: False 8. Labor unions are compatible with organizations that emphasize an external labor strategy. Answer: False 9. The central purpose of the Wagner Act is to assure that employees have the right to participate in labor unions. Answer: True 10. It is an unfair labor practice for management to punish employees who engage in union activities. Answer: True 11. It is acceptable for an organization to assist a particular union in organizing in exchange for the union agreeing to work with management. Answer: False 12. The Wagner Act requires businesses to bargain with unions in good faith. Answer: True 13. The Wagner Act is primarily seen as pro-business legislation. Answer: False 14. Featherbedding is the practice of requiring employees to join the union once they are on the job and is prohibited by the Taft-Hartley Act. Answer: False 15. The Landrum-Griffin Act, formally known as the Labor-Management Reporting and Disclosure Act is a bill of rights for union members. Answer: True 16. Misuse of union funds by union leaders is a federal crime. Answer: True 17. As of 2005, approximately 25% of workers in the U.S. belong to unions. Answer: False 18. Organizations have become increasingly hostile toward unions and more sophisticated at fighting attempts to unionize. Answer: True 19. The number of unionized employees in the public sector has been declining as is happening in the private sector. Answer: False 20. Differences in labor costs between unionized and non-unionized workers may not be a major issue to the public sector. Answer: True 21. In today’s workplace, cooperative relationships between organizations and unions are the exception rather than the rule. Answer: False 22. Union membership is declining in the U.S. but is increasing throughout the rest of the world. Answer: False 23. In order to petition the National Labor Relations Board to hold an election, union organizers must have signatures from at least 50 percent of eligible workers. Answer: False 24. The determination of an appropriate bargaining unit is rarely a source of contention between management and the union. Answer: False 25. The National Labor Relations Board (NLRB) conducts the union certification vote. Answer: True 26. After a certification election, the union is certified if the NLRB determines that at least 50 percent of employees in the bargaining unit voted in favor of the union. Answer: True 27. Employees are most likely to support unionizing when they feel that the actions of management leave them powerless. Answer: True 28. A union that has obtained signatures of support from 50 percent of eligible workers can directly ask an organization to recognize its right to bargain for employees. Answer: True 29. Wages are one of the mandatory bargaining topics, which means that management and the union must discuss wages as a part of a collective bargaining agreement. Answer: True 30. Strikes mostly impose hardships on a company when an employer closes the workplace or otherwise prevents union members from working. Answer: False 31. Adopting computerized processes will always result in a decline of union members. Answer: False 32. During the collective bargaining process, when one side makes more concessions, that party is likely to be dissatisfied with the process but it is unlikely to create future labor management issues. Answer: False 33. Cooperative labor relations usually advantage management at the expense of union members. Answer: False 34. Interest-based negotiations use data to identify key concerns. Answer: True 35. An arbitrator’s ruling is rarely binding on either the union or management. Answer: False Multiple Choice 36. Which of the following is NOT important specifically for interest-based negotiations? a) active listening b) joint data collection c) brainstorming d) a knowledge of conflict resolution strategies Answer: d 37. Which of the following is NOT an objective of unions? a) to provide employment security and long-term employment b) to secure fair wages that depend upon performance c) to encourage organizations to provide training and better develop the skills of employees d) to provide more extensive benefits to a greater number of employees Answer: b 38. Unions are most prevalent, and potentially most beneficial in organizations pursuing which HR strategy? a) Loyal Soldier HR strategy b) Free Agent HR strategy c) Bargain Laborer HR strategy d) Committed Expert HR strategy Answer: a 39. An organization with which HR strategy is likely to have the most difficulty working cooperatively with a labor union? a) Loyal Soldier HR strategy b) Free Agent HR strategy c) Bargain Laborer HR strategy d) Committed Expert HR strategy Answer: b 40. Why is a union not altogether consistent with the Committed Expert HR strategy? a) the Committed HR Expert strategy emphasizes long-term commitment b) unionized organizations generally spend less on research and development c) unions emphasize benefits and short-term employees d) organizations with unionized employees tend to invest more money back into the business Answer: b 41. What positive contributions can labor unions make to organizations pursuing the Loyal Soldier HR strategy? a) costs tend to be higher for unionized organizations b) unionized organizations tend to spend more on research and development c) the benefits of a stable workforce help maintain high quality d) unionized organizations tend to spend less on capital developments Answer: c 42. Which of the following is NOT legislation related to unions? a) the Fair Labor Standards Act b) the Wagner Act c) the Taft Hartley Act d) the Landrum-Griffin Act Answer: a 43. Which of the following is NOT provided for under the Wagner Act? a) employees have the right to bargain collectively b) employees have the right to strike, or collectively refuse to work c) employees have the right to protest unfair labor practices d) employees have the right to form picket lines that block entrances to a business Answer: d 44. Which of the following is NOT an unfair labor practice for management? a) threatening to close a facility if a union is organized b) questioning employees about union activities or membership c) granting wage increases deliberately timed to discourage employees from joining a union d) fining or expelling union members for filing unfair labor charges with the NLRB Answer: d 45. What is the purpose of the National Labor Relations Board (NLRB)? a) the NLRB appoints a general counsel who serves as a prosecutor for unfair labor practices b) to organize and oversee employee elections that determine whether a union will be formed in a particular workplace c) to investigate employee grievances and require remedies if appropriate d) to investigate management allegations Answer: b 46. The Taft-Hartley Act created a list of unfair labor practices for unions and all of the following are true EXCEPT: a) the act prohibits labor unions from coercing employees to join b) the act requires unions to bargain in good faith c) the act allows union members to be expelled or fined for filing unfair labor practices d) the act describes procedures for removing a union once it is in existence Answer: c 47. Which of the following is not true about union membership? a) a union shop hires only individuals who are members of a particular union b) an agency shop does not require employees to join the union but requires them to pay service fees to the union c) an open shop does not require employees to have any relationship with the union d) a union shop does not require union membership to be hired Answer: a 48. Which of the following is NOT provided for by the Landrum-Griffin Act, formally known as the Labor-Management Reporting and Disclosure Act? a) all union members have equal rights to nominate and vote for union leaders b) union members can vote to have a closed shop arrangement with an organization c) a union can only impose fees through democratic procedures d) all members must have the right to participate in union meetings Answer: b 49. All of the following are explanations for the continuing decline in union membership EXCEPT: a) manufacturing, which is a sector with historically high unionization, has replaced workers with automated processes b) organizations have moved their manufacturing facilities to foreign countries c) jobs remaining in the U.S. are those that have not traditionally been unionized d) demographics have created a large numbers of younger employees in entry-level positions that are not typically unionized Answer: d 50. A number of factors support the organization of public employees, including all of the following EXCEPT: a) public employees desire more of a voice b) improving their current work situation is particularly important for public-sector employees c) public sector employees often have specialized skills that are easily transferred to other organizations d) public-sector unions experience less resistance for organizing Answer: c 51. All of the following are trends that suggest that public-sector unions are currently facing many of the obstacles that caused the decline of unions in the private sector EXCEPT: a) unions representing public employees are attempting to innovate b) increased pressure to control service costs is pressuring many governments to curtail wage growth c) public sentiment seems to be shifting toward a less favorable opinion of unions d) the privatization of public services Answer: a 52. All of the following are strategies unions are using to deal with declines in membership EXCEPT: a) unions are focusing on organizing part-time workers b) unions are focusing on managing their image c) unions are focusing on organizing professional workers d) unions are making greater efforts to organize historically disadvantaged workers Answer: b 53. How do unions in the U.S. and the rest of the world differ? a) unions around the world differ in membership criteria b) unions in the U.S. are more closely aligned with political parties than in other countries c) unions worldwide differ in the emphasis they place on advancing employees’ financial interests d) unions in France are less political than in other countries Answer: c 54. All of the following are ways unions affect non-union workers EXCEPT: a) the threat of unionization can result in employers communicating more effectively with their nonunionized workers b) unionization can increase wages for an industry c) the threat of unionization can result in improved working conditions d) unionized workers impact political outcomes for non-union workers Answer: d 55. The first step in organizing a union is: a) an authorization card campaign, in which employees sign cards stating that they will vote for a union to be formed b) an authorization card campaign, in which employees sign cards stating that they wish to hold an election to determine whether a union will be formed c) a representation petition where at least 30 percent of eligible workers have signed a petition stating that they will vote for a union to be formed d) a representation petition where at least 30 percent of eligible workers have signed a petition stating that they wish to hold an election to determine whether a union will be formed Answer: b 56. All of the following are likely to increase the probability of a union organizing campaign being successful EXCEPT: a) men and women are more likely to support the union when the union pursues a national political agenda b) women are more likely to support the union when the union has less centralized control c) men are more likely to support unions that focus more on money d) women are more likely to support unions when union leadership includes women Answer: a 57. Which of the following items below is NOT a mandatory bargaining topic? a) base pay and performance bonuses b) the hours for each shift and vacation time off c) the formation of a closed shop d) the implementation of safety procedures and policies Answer: c 58. When an employer shuts down operations during a labor dispute: a) members of the union are prohibited from working but still must be paid b) members of the union are prohibited from working and are not paid c) it is a strike d) discussion of the lockout is a mandatory bargaining issue Answer: b 59. Which of the following actions related to labor relations has the potential to inflict the most damage on an organization? a) a lockout b) a boycott c) mandatory bargaining d) a strike Answer: d 60. Which of the following is NOT likely to influence cooperation during the collective bargaining process? a) the past—the level of trust developed during previous negotiations b) data gathering and data sharing c) an understanding of distributive and integrative issues d) ability to use problem-solving techniques Answer: b 61. Distributive issues: a) deal with the distribution of rewards and benefits b) deal with the effective delegation of power and authority c) deal with finding mutual gains d) deal with the distribution of information Answer: a 62. All of the following are true about integrative issues EXCEPT: a) integrative issues can result in an increase of rewards and benefits for both management and union members b) integrative issues involve areas of interest to both management and union members c) integrative issues deal with the effective delegation of power and authority d) when dealing with integrative issues, a gain for one party is not necessarily a loss for the other party Answer: c 63. Labor management relations tend to be more cooperative in all of the following cases EXCEPT: a) when management shares information with the union b) when management has practices that are perceived as fair c) when a union adopts an integrative approach to bargaining d) when management and the union approach bargaining from a distributive perspective Answer: d 64. Which of the following would be associated with interest-based negotiations? a) effectively presenting and supporting a position b) defining solutions acceptable to both parties c) pursuing a specific bargaining position d) using pressure to obtain a desired position Answer: b 65. Which of the following is NOT true about interest-based negotiations? a) during the preparation for negotiations, both sides should be educated about the interest-based process b) at the start of negotiations, each side should develop and prepare opening statements c) during negotiations, the focus should be on generating and evaluating options d) the results achieved through negotiations should be communicated by each party to their respective groups—management prepares a statement for management and the union prepares statements for bargaining unit members Answer: d 66. Interest-based negotiations are often more effective than traditional negotiation methods because: a) arbitration is an integral part of interest-based negotiations b) mediation is an integral part of interest-based negotiations c) union stewards are not a part of the bargaining team d) both parties focus on working together and resolving problems rather than advocating only for their own interests Answer: d 67. Arbitration: a) is similar to interest-based negotiations b) involves a third party who helps the disagreeing parties arrive at a mutually beneficial resolution c) is a type of judicial process d) is less formal than mediation Answer: c 68. When it comes to filing grievances: a) men and women are equally likely to file a grievance, regardless of Industry b) young and educated males are more likely to file a grievance c) mature minority women are more likely to file a grievance d) young minority males are more likely to file a grievance Answer: b 69. Which of the following is true about the likelihood of grievances? a) grievance rates are higher when supervisors emphasize production rather than friendly relationships b) grievance rates are higher when more women are in the bargaining unit c) grievance rates are higher when the work unit has more diversity d) grievance rates are lower when a supervisor is more rigorous Answer: a 70. Which of the following is NOT true about mediation? a) mediation involves a third party who helps the parties reach a mutually beneficial resolution b) mediation involves a third party who makes a decision that is binding on all parties c) mediation is more informal than arbitration d) there are no witnesses during the mediation process Answer: b Short Answer 71. Interactions between employing organizations and labor unions are called __________ ____________. Answer: labor relations 72. The Taft-Hartley Act prohibits a labor union from pressuring other businesses to stop purchasing goods and services from a business with which the union has a dispute, which is a practice known as a ____________ ___________. Answer: secondary boycott 73. A(n) _______ ________ does not require employees to have any relationship with the organization’s union. Answer: open shop 74. The states have the authority to enact _______-____-_______ laws that allow open shops where employees are not required to join or contribute to a union. Answer: right-to-work 75. A ___________ ________ is two or more employees who share a “community of interest” and may be reasonably grouped together for collective bargaining purposes. Answer: bargaining unit 76. ____________ ___________ is the process of agreeing on a labor contract. Answer: Collective bargaining 77. When striking employees encourage consumers or other companies not to do business with their company, such as not purchasing goods and services, it is known as a _________________. Answer: boycott 78. A dispute that arises between an employer and employee over the terms of a negotiated employment agreement is called a ______________. Answer: grievance Essays 79. Discuss the goals of unions and how unions and organized labor fit with various human resource strategies. Answer: A. Unions strive to: • provide employment security and long-term employment for their members • secure fair wages and benefits for all workers, which has the impact of reducing pay differences between employees with different skills and reducing pay differences between high and low performers. • The union emphasis on equal treatment is most compatible with the Loyal Soldier HR strategy given its emphasis on organizational commitment and long-term employment relationships. A cost-focused organization can thus achieve higher productivity through working with unions to reduce costs and create processes that are more efficient. • The Committed Expert HR strategy emphasizes long-term relationships, which is compatible with union priorities. However, because of the higher wages usually paid to union employees, unionized organizations generally spend less on research and development and capital projects, which is inconsistent with the Committed Expert HR strategy. In addition, the Committed Expert HR strategy depends on some pay differential based upon expertise. • The Bargain Laborer HR strategy is inconsistent with the union’s emphasis on employment security and long-term employment. Therefore, unionization is not compatible with the Bargain Laborer HR strategy. • The Free Agent HR strategy with its external labor focus is incompatible with unionization because of its emphasis on paying experts highly for working as needed. The lack of employment security or long term employment and the emphasis on high pay for some workers makes the Free Agent HR Strategy inconsistent with unionization. 80. Discuss the various means for resolving problems at the individual and organizational level in a union environment. Be sure to include mediation and arbitration in your discussion. Answer: A. Management and the union may file unfair labor practices with the National Labor Relations Board (NLRB). Examples of inappropriate Management behavior that can result in an unfair labor practice (Table 13.1) include: • threatening employees with loss of jobs or benefits if they join a union • threatening to close a plant if a union is organized • questioning employees about union activities or membership • spying on union gatherings • granting wage increases deliberately timed to discourage employees from forming a union B. Examples of inappropriate union or union member actions that can result in the filing of an unfair labor practice (Table 13.2) include: • mass picketing in numbers that physically bar others from entering the workplace • threatening bodily harm to other employees • threatening that employees will lose their jobs unless they support the union • entering into a contract with an employer when a majority of employees have not chosen the union • fining or expelling members for filing unfair labor charges with the NLRB C. A grievance is a dispute that arises between an employer and employee over the terms of an employment agreement. It is usually dealt with through a multi-step process that moves from informal to formal discussions. A majority of complaints are handled during informal discussions. D. Arbitration is the final step in many grievance processes. It is a type of judicial process where management and the union present facts and arguments to support their position. An arbitrator, a neutral third party, hears the arguments and makes a ruling, which is usually binding on both parties. E. Mediation involves a third party—a mediator—who helps the parties work together to arrive at a mutually beneficial resolution. Each side presents facts and the mediator does not make a decision; rather, the mediator facilitates problem resolution. Chapter 14: Aligning Strategy with Practice True/False 1. The effective execution of human resource best practices is more critical to organizational success than are considerations of strategy. Answer: False 2. “Hire for attitude; train for skills,” reflects the Bargain Laborer HR strategy employed by The Walt Disney Company. Answer: False 3. For all organizations, minimizing turnover creates a competitive advantage through human resources. Answer: False 4. The alignment of human resource practices is achieved by focusing on the relationships between human resources best practices. Answer: False 5. Research studies support the value of vertical alignment for organizational success. Answer: True 6. Organizations with human resource strategies that emphasize developing long-term relationships with highly skilled employees have been shown to be more effective than their competitors because they create more new products and services. Answer: True 7. Horizontal alignment refers to the fit of practices within the organization. Answer: True 8. Organizations with consistent bundles of human resource practices have been found to be more effective than firms without consistent practices. Answer: True 9. An organization that has a selection process that focuses on hiring team players and employs a competitive merit pay performance appraisal process will be highly productive because it has horizontal alignment of its practices. Answer: False 10. The Bargain Laborer HR strategy focuses on internal labor markets because promoting from within is less costly and helps minimize labor costs. Answer: False 11. Few workers feel strong commitment to an organization pursuing a Bargain Laborer HR strategy. Answer: True 12. In an organization pursuing the Bargain Laborer HR strategy, employees are expected to complete specific tasks in a prescribed way, which helps ensure coordination. Answer: True 13. Autonomy is high in an organization pursuing a Bargain Laborer HR strategy. Answer: False 14. Under a Bargain Laborer HR strategy low performing employees are usually allowed to stay employed as long as they meet minimum performance standards. Answer: True 15. Identifying specific skills and abilities is not of critical importance for organizations employing a Bargain Laborer HR strategy. Answer: True 16. Assessing organizational fit and dependability are important for an organization pursuing a Bargain Laborer HR strategy. Answer: False 17. Under the bargain laborer HR strategy good employees are encouraged to remain employed and high performers have ample incentives to remain employed. Answer: False 18. Organizations that follow the Bargain Laborer HR strategy set wage rates at the point necessary to attract workers and do not usually offer a premium to attract and retain highly skilled employees. Answer: True 19. Employees are less likely to organize or join unions in an organization with the Bargain Laborer HR strategy because the employees do not expect to have a long-term relationship with the organization. Answer: True 20. Work design under the Loyal Soldier HR strategy focuses on determining efficient production processes and then encouraging employees to follow prescribed methods of doing work. Answer: True 21. The Loyal Soldier HR strategy emphasizes organizational fit rather than fit with a particular job. Answer: True 22. Under the Loyal Soldier HR strategy applicants receive a realistic recruiting message that provides information about all aspects of the job and organization. Answer: True 23. Employees are expected to turn over under the Loyal Soldier HR strategy given the level of wages paid by the organization. Answer: False 24. The Loyal Soldier HR strategy predicts that an employee who is not performing well in a given job will be swiftly removed from the position and organization and a new employee will be hired from the external labor market. Answer: False 25. Compensation plans under the Loyal Soldier HR strategy seek to significantly differentiate the pay of high and low performers to enhance motivation. Answer: False 26. An organization with a Loyal Soldier HR strategy will use group incentives to encourage cooperation among workers. Answer: True 27. Profit-sharing and stock plans to link employee behavior with long-term organizational interest are consistent with the Loyal Soldier HR strategy. Answer: True 28. A labor union’s emphasis on long-term employment and equality among workers is compatible with the Loyal Soldier HR strategy. Answer: True 29. Like the Free Agent HR strategy, the Committed Expert HR strategy emphasizes the development of talent internally. Answer: False 30. Compensation under the Committed Expert HR strategy includes substantial pay at risk, a risk premium, and long-term incentives such as profit sharing and stock options. Answer: True 31. Removing low-performing employees is particularly important for organizations pursuing the Free Agent HR strategy, so employees who cannot do what is required are dismissed. Answer: True 32. Compensation rates are relatively high in organizations pursuing the Free Agent HR Strategy. Answer: True 33. Under a growth strategy, organizations frequently expand into new markets through acquisitions and mergers. Answer: True 34. Research has demonstrated that for small organizations, one outcome of better strategic plans for human resources is a higher rate of survival among small organizations. Answer: True 35. HR professionals are widely viewed as being the final decision makers in HR matters. Answer: False Multiple Choice 36. Vertical alignment: a) deals with the positioning of an organization’s human resource management strategy in relation to its competitive strategy b) refers to how a company interacts with its suppliers c) refers to how a company interfaces with its competition d) refers to the fit of specific human resource practices with other practices Answer: a 37. Which of the following is an example of vertical alignment? a) a company seeks to be the low cost provider and adopts a Loyal Soldier HR strategy b) a company seeks to differentiate its product through superior service and adopts a Bargain Laborer HR strategy c) a company seeks to be the low cost provider and adopts a Free Agent HR strategy d) a company seeking long-long term committed employees offers health insurance and a retirement program Answer: a 38. Horizontal alignment: a) deals with the positioning of an organization’s human resource management strategy in relation to its competitive strategy. b) refers to how a company interacts with its suppliers c) refers to how a company interfaces with its competition d) refers to the fit of specific human resource practices with other organizational practices Answer: d 39. Which of the following is an example of horizontal alignment? a) a company seeks to be the low cost provider and adopts a Loyal Soldier HR strategy b) a company seeks to differentiate its product through superior service and adopts a Bargain Laborer HR strategy c) a company seeks to be the low cost provider and adopts a Free Agent HR strategy d) a company seeking long-term committed employees offers health insurance and a retirement program Answer: d 40. An HR strategy that focuses on creating efficiency using talent from the external labor markets is the: a) Bargain Laborer HR strategy b) Free Agent HR strategy c) Committed Expert HR strategy d) Loyal Soldier HR strategy Answer: a 41. Which characteristics of work design are NOT compatible with the Bargain Laborer HR strategy? a) work design emphasizes simplified tasks b) work is structured according to concepts from the mechanistic approach to job design c) work is broken down into simple tasks that can be easily learned d) autonomy is high and employees are encouraged to improve work processes Answer: d 42. Recruitment and selection under the Bargain Laborer HR strategy: a) emphasizes internal promotions b) seeks to identify a large number of candidates and uses a broad skill approach c) emphasizes organizational fit d) emphasizes organizational and job fit Answer: b 43. Which of the following describes recruiting methods likely to be used by an organization pursuing the Bargain Laborer HR strategy? a) referrals, print advertising in newspapers, electronic advertising and public employment agencies b) job postings and electronic advertising on the company intranet c) job posting and company web page d) employee referrals, print advertising in specialized journals, targeted Internet sites and private employment agencies Answer: a 44. During the hiring process, an organization with a Bargain Laborer HR strategy: a) tends to provide an accurate job preview b) tends to emphasize the negative aspects of the job to avoid early turnover c) emphasizes the positive aspects of the job to encourage applicants to accept a position d) tends to provide a positive review of the organization and emphasizes organizational fit Answer: c 45. Which of the following is NOT true about training and development under the Bargain Laborer HR strategy? a) training focuses on teaching employees specific job duties b) training emphasizes efficient operations c) training emphasizes the importance of following company procedures d) a company pursuing a Bargain Laborer HR strategy rarely uses on the job training Answer: d 46. Unions are somewhat at odds with which HR strategy because of the lack of job security inherent with this strategy: a) Loyal Soldier HR strategy b) Committed Expert HR strategy c) Free Agent HR strategy d) Bargain Laborer HR strategy Answer: d 47. This HR strategy focuses on internal talent development, efficiency, and developing a strong culture of commitment: a) Committed Expert HR strategy b) Loyal Soldier HR strategy c) Bargain Laborer HR strategy d) Free Agent HR strategy Answer: b 48. Which characteristic of work design is NOT compatible with the Loyal Soldier HR strategy? a) standardization is important b) the mechanistic approach to job design is used c) employees are encouraged to develop new and better ways of accomplishing work d) assembly lines are common and each employee performs a limited number of tasks Answer: c 49. The recruiting and selection strategies compatible with this HR strategy include identifying current employees who can be promoted and employees who will benefit from new job opportunities. a) Loyal Soldier HR strategy b) Committed Expert HR strategy c) Free Agent HR strategy d) Bargain Laborer HR strategy Answer: a 50. All of the following are true about an organization under the Loyal Soldier HR strategy EXCEPT: a) fit with organizational culture is essential b) identifying specific skills and interests of applicants is essential c) general aptitude and motivation are important d) employees are hired more for potential than past accomplishments Answer: b 51. Common methods for locating applicants include employee referrals, electronic advertising, public employment agencies, and campus recruiting when an organization has adopted this HR strategy: a) Bargain Laborer HR strategy b) Free Agent HR strategy c) Committed Expert HR strategy d) Loyal Soldier HR strategy Answer: d 52. Which of the following performance management practices is incompatible with the Loyal Soldier HR strategy? a) employee contributions are assessed and feedback is important to provide guidance for improvement b) cooperation and teamwork are emphasized over high individual performance c) parity-based assessments compare employees against each other resulting in rankings d) performance management is used to motivate employees Answer: c 53. All of the following are true of training and development under the Loyal Soldier HR strategy EXCEPT: a) employees are selected mostly for organizational fit, so skills must be developed after they are hired b) training is general in nature rather than related to specific skills c) training is critical for success d) employees will likely rotate through a number of jobs during their career with the organization Answer: b 54. Compensation under the Loyal Soldier HR strategy: a) will likely have little pay at risk from pay period to pay period b) will have a great deal of pay at risk c) is likely to involve high levels of merit pay d) is designed to significantly differentiate high and low performers Answer: a 55. Work design in an organization with a Committed Expert HR strategy: a) focuses on designing work in ways that provide employees with opportunities to innovate and develop ongoing relationships with others. b) emphasizes the job of the individual expert. c) requires that employees work like parts in an efficient machine to produce goods and services. d) focuses on determining efficient processes and then encouraging employees to follow the prescribed way of accomplishing work. Answer: a 56. Which of the following is NOT true about recruiting and selection under the Committed Expert HR strategy? a) the focus is on internal candidates b) the targeted skills approach, combined with external sourcing seeks to identify candidates with particular unique skills c) the focus is on identifying people who have specific skills and who are committed to advancing through the ranks within the organization d) the goal is to identify individuals with the potential to develop specific expertise over time Answer: b 57. Under the Committed Expert HR strategy, retention practices are most likely to include which of the following: a) employees who are not performing at a high level are reassigned or transferred b) employees who meet minimum performance standards are encouraged to stay c) employees who fit with the organization are encouraged to stay d) an emphasis on the retention of high performers and dismissal of low performers Answer: d 58. Merit-based performance appraisals, employee rankings, and/or forced distributions are most likely under which HR strategy? a) Committed Expert HR strategy b) Loyal Soldier HR strategy c) Bargain Laborer HR strategy d) Free Agent HR strategy Answer: a 59. Which of the following is NOT true about the Committed Expert HR strategy? a) the emphasis on long-term employment is compatible with labor unions b) performance appraisal practices are consistent with labor unions c) unions are often incompatible with the focus on innovation d) the overall pay level of employees is usually higher than at other organizations Answer: b 60. All of the following are true about the Free Agent HR strategy EXCEPT: a) human resource practices focus on locating external talent b) employees are more committed to a particular profession than to any one organization c) workers are frequently replaced by new employees who have up-to-date skills d) compensation is often based upon time employed with the organization Answer: d 61. Which of the following is NOT true about the Free Agent HR strategy? a) recruitment focuses on locating talent outside the organization who clearly possess particular skills b) targeted recruiting seeks applications from a select few c) the emphasis is on assessing potential employees’ past achievements to determine whether they already have the skills needed for the job d) fit with the organization takes precedence over fit with the demands of a particular job Answer: d 62. Retention for an organization with a Free Agent HR strategy: a) is critical given the specialized knowledge and skill employees bring to the organization b) is critical given the high costs involved in recruiting employees with specialized skills c) is not as important an issue as quickly removing low-performing employees d) is critical given the specialized training and development provided employees Answer: c 63. Performance management in an organization with a Free Agent HR strategy: a) is used to create a competition of excellence by comparing employees with each other, so only a few receive the highest evaluations b) focuses on employee effort with consideration given to contingencies c) results in low performers being reassigned elsewhere in the organization where their talents can be used more effectively d) focuses on ensuring that the performance of all employees meets minimum performance standards Answer: a 64. The Free Agent HR strategy: a) is compatible with unions because of the professional nature of employees b) is adopted by organizations seeking to minimize unionization c) is mostly incompatible with unionization, and employees who work in an organization with a Free Agent HR strategy see themselves as professionals rather than union members d) is incompatible with unionization because of the emphasis on short-term employment but compatible with unionization because professional employees do not have time to deal with personnel issues and prefer to delegate these issues to a union Answer: c 65. Which of the following would be consistent with a turnaround organizational strategy? a) employees who meet minimum standards for performance are retained b) low performers are dismissed and new employees hired for their ability to change how work is accomplished c) low performers are reassigned elsewhere in the organization where their talents can be used more effectively d) either a Committed Expert or Bargain Laborer HR strategy would be appropriate Answer: b 66. Which HR strategy is most closely aligned with the global expansion competitive strategy? a) Free Agent HR Strategy b) Bargain Laborer HR Strategy c) Loyal Soldier HR Strategy d) Committed Expert HR Strategy Answer: a 67. Human resource strategy and practices a) are less important for small businesses b) are often times well developed in small businesses c) are critical for the survival of small businesses d) for small businesses usually involve a differentiation strategy and Loyal Soldier HR Strategy. Answer: c 68. The future role of Human Resources: a) will increase in value as talented workers become more and more scarce b) will be more linked with technology as human resource functions become increasingly technology driven c) will increasingly require positional power to ensure decision makers engage in good practices for obtaining and motivating employees d) will focus less on the intangible assets of an organization Answer: a 69. Which of the following is NOT a challenge faced by Human Resource professionals? a) lack of power and the need to develop more expert power b) being overwhelmed by the demands for their services c) the challenge of balancing the interests of owners and managers d) moving beyond the enforcement role and focusing on strategic aspects of HR Answer: c 70. Changes in the field of Human Resource Management include all of the following EXCEPT: a) a renewed emphasis on the importance of Human Resource professionals understanding and enforcing the wide variety of labor regulations including Equal Employment, FLSA, the Family Medical Leave Act, and the Americans with Disabilities Act b) a shortage of well qualified workers will increase the importance of Human Resource Management c) trends towards increasing prominence for strategic HR d) an emphasis on measuring the dollar value of HR Answer: a Short Answer 71. An emphasis on training employees how to perform specific job duties, with an emphasis on efficient operations, is the key focus of training for the ____________ _____________ HR strategy. Answer: Bargain Laborer 72. The ___________ ____________ HR strategy emphasizes high worker autonomy and reciprocal processing. Answer: Committed Expert 73. Sources for recruiting under the ___________ ___________ HR strategy include job postings and electronic advertising in areas of the company website that are accessible only to employees, employee referrals and campus recruiting. Answer: Committed Expert 74. Training that teaches specific skills for current jobs and continuous improvement of employees’ skills so they can produce goods and services superior to those produced by competitors are consistent with the ___________ ___________ HR strategy. Answer: Committed Expert 75. A variation of competitive strategy that focuses on growing an organization’s presence in foreign countries is called a _____________ ___________ strategy. Answer: global expansion 76. The strategic approach that unfolds over time and oftentimes is based upon an organization’s human resource capabilities is the ___________ strategic approach. Answer: evolutionary 77. The nonphysical assets that represent value to an organization include the organization’s pool of talent and are referred to as __________ _________. Answer: intangible assets 78. _________ _________ comes from providing useful knowledge and skills and plays a vital role in the success of Human Resource professionals as they work to persuade decision makers to engage in good practices for obtaining and motivating employees. Answer: Expert power Essays 79. Compare and contrast performance management and compensation practices in each of each of the four HR strategies. Answer: A. Performance management practices 1. Bargain Laborer HR strategy: Primary concern is assuring that employee performance is above a minimally acceptable level. Assessments are based on absolute standards that do not compare employees with each other. Little emphasis is placed on identifying high performers. 2. Loyal Soldier HR strategy: Performance management is used to motivate employees. Assessments are used to provide feedback and guidance for improvement. Parity-based assessments compare performance against absolute standards and allow everyone to be classified as a high performer. Cooperation and teamwork are emphasized over high individual performance. 3. Committed Expert HR strategy: Organizations use competition to encourage employees to stretch their efforts. High performers are identified by comparing employees with each other. Forced distributions ensure that only a few receive the highest ratings. 4. Free Agent HR strategy: Performance management is used to separate high and low performers. A culture of competition and excellence is created by comparing employees with each other and forcing distribution so only a few receive the highest evaluations. Assessments focus on outcomes rather than behavior. B. Compensation practices 1. Bargain Laborer HR strategy: The desire to minimize labor costs means wage rates are set at the point necessary to attract workers. No premiums are used to attract or retain highly skilled workers. Pay differences are minimized among employees and usually pay is not contingent upon performance. Piece-rate compensation may be used in some cases. 2. Loyal Soldier HR strategy: Compensation focuses on rewarding long-term contributions. Base pay is a large part of compensation and little pay is at risk. Organizations seek to minimize pay differences between employees. Benefits may be offered to help strengthen the bond between employees and the organization. 3. Committed Expert HR Strategy: The overall level of pay is usually higher than the level at other organizations. High performers are acknowledged and paid more than average performers. A substantial amount of pay is at risk and high performers are paid a risk premium. Long-term incentives such as profit sharing and stock options are used. Good benefits strengthen the ties between the organization and employees. Overall compensation is designed to provide high incentives to top performers who pursue long careers with the organization. 4. Free Agent HR strategy: Compensation rates are relatively high so the organization can hire and retain highly skilled employees. Top performers receive top compensation. Newly hired employees are paid top dollar. Commissions and bonuses are frequently offered. Emphasis is on providing immediate rewards for high contributions. 80. Discuss three of the five key challenges identified that Human Resource professionals are likely to face in their careers. Answer: A. Lack of power: HR professionals are seldom final decision makers, so they must work to convince others of the value of human resource management. Expert power will be increasingly important so HR professionals can persuade decision makers to engage in good practices for obtaining and motivating employees. B. Walking the tightrope: HR professionals must constantly balance an emphasis on organizational productivity with the protection of employee interests. C. Dealing with skeptical people: HR professionals oftentimes work with others who do not see the value created by systems for effectively managing people. D. Vulnerability to workforce reductions: HR professionals must avoid being laid off by continually demonstrating their contributions to the organization. E. Being overwhelmed: HR professionals often feel overwhelmed by the demands for their services. Those who have successful careers will likely be those who learn to prioritize and focus on the things that are most important. Test Bank for Human Resource Management: Linking Strategy to Practice Greg L. Stewart, Kenneth G. Brown 9780471717515