1. All of the following statements about knowledge workers are accurate except

a) They currently comprise about 75% of the U. S. workforce.

b) They are expected to be among the fastest growing job sectors in the next decade.

c) Their jobs are designed around the acquisition and application of information.

d) Their job skills need to be continually upgraded

e) They are paid a premium for their skills. 

 2.  According to the futurist Alvin Toffler, modern civilization has evolved over four “waves”.



 3.  Maurice is suing an organization, claiming that because he is an employee and not an independent contractor, the organization should have withheld taxes for him. All of these factors could be used to support his claim except

He receives no insurance or pension benefits.

He is allowed great flexibility in scheduling his work time.

He is paid market rate for his services

He received training on company policies and procedures.

He is reimbursed for travel

4.  Jim, a plant manager in a medium-sized nonunion manufacturing firm, has just “wasted” another day answering employee complaints and questions about rumored plant closings and relocations.   He heads home with a briefcase full of the work he had scheduled to do.  He wonders if HRM can help, and scans his company phone book.  Whom should he call?

a) Tom, employment manager

b) Don, employee relations manager

c) Myrtle, compensation and benefits manager

d) Mason, training and development manager

e) Sheila, union grievance avoidance specialist

 5.  How has Sarbanes-Oxley affected HRM?

a) HRM now monitors financial reporting to shareholders.

b) HRM must coordinate visas, work visas and travel arrangements.

c) HRM now supervises executive loans.

d) HRM must certify financial reports.

e) HRM must create the environment where whistleblowers can come forward without fear of reprisal.

 6.  Leo has requested that the EEOC investigate his case of employment discrimination. What initial steps can Leo expect?

a) Nothing. This is the wrong agency for employment discrimination complaints. He needs to file with the Sarbanes-Oxley agency.

b) The EEOC will take up to 120 days to secure acceptable resolution of the discrimination charges before filing suit.

c) The EEOC will help Leo form a labor union.

d) The EEOC will explain Title VII coverage to the work group.

e) The EEOC will pay the costs for Leo to file a civil suit against the employer

7.  Larry, a 62 year old, has just been offered a full time job as merchandise representative for a large firm.  He is not offered an opportunity to participate in the pension plan. Can he sue under the ADEA?

a) No. The ADEA doesn’t cover age discrimination

b) Yes. He has a clear violation of age protection.

c) No. As long as the cost of benefits is the same for him as for younger employees, the organization is in compliance with the law.

d) Yes. Pension plans are required for all U.S. employees.

e) No. Pension plans are no longer offered to employees.

8.  Which of the following is not true regarding HRM outside the United States?

a) Canadian laws pertaining to HRM practices closely parallel those in the United States.

b) Infractions to the Mexican Federal Labor Law are subject to severe penalties, including criminal action.;

c) In Australia, a very small percentage of the workforce is unionized.

d) Australia’s discrimination laws were not enacted until the 1980s.

e) In Germany, legislation requires companies to practice representative participation

9. Nineteenth-century common law permitted employers to discipline or discharge employees at their discretion. This concept is the basis for

a) the employment-at-will doctrine.

b) the hot stove policy.

c) property rights.

d) employee surveillance.

e) labor arbitration.

10. The goal of recruiting is to give enough information about the job to attract a large number of qualified applicants and simultaneously discourage unqualified candidates from applying.

a) True

b) False

11. Chris and David both arrived one hour late for work today. Chris was fired. David was given a verbal warning. Such disparate treatment for the same offense could be considered fair and equitable for all of these reasons except

a) Chris was a long term employee. David was a new hire.

b) Chris comes in late three or four days a week. He has been warned repeatedly about consequences for such behavior. David has never been late before.

c) Chris has proven to be an unreliable employee. He is inaccurate and late in written work. He often misses meetings that he says he attends. David is a reliable employee in other aspects of the job.

d) Upper management demands that time rules be followed by all employees.

e) Chris missed the annual board review. David had nothing scheduled until noon.

12. Pierreis attempting to forecast the firm’s future supply of human resources. He is currently looking at retirements, transfers out a unit, layoffs, sabbaticals, and dismissals. Which one is likely to be the most difficult to predict?

a) Retirements

b) Transfers out a unit

c) Layoffs

d) Sabbaticals

e) Dismissals

13. What advice does your text give to organizations that want to use employment testing in the global arena?

a) Employment testing is illegal in Asia.

b) Practices must be adapted to cultures in which the organization operates.

c) Practices must be approved by the United Nations.

d) Home country nationals are required to pass local tests.

e) Graphology is illegal in all countries.

14. Company XYZ is using an aptitude test to measure the applicants’ cognitive abilities. The score of the test can vary from 10 to 100. A score of 10 indicates very low cognitive abilities whereas a score of 100 indicates exceptional cognitive abilities. A job candidate, Robert, received a score of 87 when he took the test in April. Robert took the test again (same test) in June. However, the second time his score was only 42. What type of problem may this test have?

a) A predictive validity problem

b) A reliability problem

c) A content validity problem

d) A construct validity problem

e) A concurrent validity problem

15. Socialization includes which of the following adjustment characteristics for most employees?

a) Information obtained during recruitment is usually distorted.

b) Information obtained during selection is usually complete.

c) Most people enter an organization with low anxiety levels.

d) Most employees thrive on the heightened anxiety level present during socialization.

e) Most new organizational members alter their work roles rather than their understanding of them.

16. Jim, the vice-president of human resources, is reading the evaluations from the new round of orientation programs. New employees report being excited about work, strongly identifying with the CEO’s speech. Many of them expressed frustration with awareness of physical facilities, grievance procedures, and benefits options. The major change has been that now orientation is managed by each employing division, rather than HRM. What should Jim do?

a) Hire new trainers to deliver the orientation material.

b) Stress the new buildings on the pre-interview tours.

c) Remove the CEO speech.

d) Let HRM coordinate the overall orientation program again.

e) Change the recruiting practices to attract more detail-oriented people to the firm.

17. Andrew is a well-known plastic surgeon in Los Angeles. He earns up to $800,000 a year. He lives in a mansion in Santa Monicaand drives a Jaguar. Many of his patients are Hollywood stars and celebrities. However, Andrew does not believe that his work is interesting and meaningful. In fact, he does not like his job. Furthermore, he has conflicts with his teenage son, Malcolm, who considers that his father is just “wasting” his talent for money. Andrew feels very bad about it. Which of the following is true regarding Andrew’s career?

a) Andrew’s career is objectively successful.

b) Andrew’s career is subjectively successful.

c) Andrew’s career is both objectively and subjectively successful.

d) Andrew’s career is intrinsically rewarding.

e) Andrew’s career is psychologically rewarding.

18. Sharon, a student worker in a college food service location, has just received her first performance appraisal. Her manager told her that her cleaning and sweeping skills were excellent, but that she needed to show up to work on time and follow the regulations for lunch hours, breaks, personal phone calls, and calling out sick. Her performance would be evaluated again in 30 days. What was the outcome of this appraisal process?

a) Sharon was fired – very nicely.

b) Sharon received career development from her manager.

c) Sharon received no helpful feedback from her manager during this process.

d) Sharon’s manager initiated immediate corrective action.

e) Sharon’s manager initiated basic corrective action.

19. Forced rankings are now found in about three-fourth of all U.S. organizations

a) True

b) False

20. Ray, a federal employee in Washington, DC, makes $12.00 an hour, the prevailing wage rate set by the Secretary of Labor. What law provides this protection for federal employees?

a) Fair Labor Standards Act

b) Equal Pay Act

c) Walsh-Healy Act

d) Prevalent Rate Agency

e) Minimum Financial Standards Legislation

21. Jean, a geologic specialist, agreed to accept an overseas assignment for her company after the company agreed to store her yacht, provide security service 24X7, and arrange for Mimi, her cat, to go with her. What kind of pay factor was used?

a) base pay.

b) differentials.

c) bonuses.

d) incentives.

e) assistance programs.

22. Maizie, a charge nurse in a large hospital, is frustrated with a phone call. She is thumbing through Joe’s file, looking for a patient consent signature before she can answer questions from Joe’s secretary, “How is Joe?”  What health issue is relevant to Maizie’s predicament?

a) Traditional.

b) HMO.

c) PPO.



23. Donna, a 45-year-old bank manager, is married to Darren, a 40-year-old economist with a real estate development firm. They currently waive all optional portions of Donna’s retirement package. Darren received a letter from his employer stating that the firm is changing retirement and benefits plans the first of the year. How can they determine which of their company pension retirement benefits plans should be changed or kept?

a) Social Security Administration Review.


c) Summary Plan Description.


e) Pension Benefit Guaranty Corporation Publications.

24. The main reason that companies offer flexible benefits to employees is

a) to comply with federal wage and hour law regulations.

b) to motivate employees.

c) to save money.

d) to enter new geographical markets.

e) to be product competitive in the  global environment.

25. Last year Jan set aside $5000 pretax dollars for child care in a flexible spending account. She only used $3200. What happened to the remaining $1800?

a) She received a lump sum payment of $1800 in her first January paycheck.

b) It reverted to her employer.

c) She had to pay taxes on the amount before it was added back to her income.

d) She transferred it to her medical care account.

e) It stays in the account to be used this year, a rollover.

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