Test Compensation and Benefits

Assess your understanding of this chapter.

1) When faced with trying to make a hiring offer attractive enough to “land” a highly qualified applicant, recruiters must accept the limits of the going rate for the job.

a) TRUEb) FALSE

The correct answer is b.

Reference: LO 01: Explain the objectives of effective compensation management.Feedback: If a recruiter wants to offer an unusually high salary to attract a qualified recruit the hiring manager must make a tradeoff between the recruiting objectives and the internal equity objectives of the company, with the guidance of the human resource department. P. 334

2) Regardless of any tradeoffs, an overriding objective of compensation administration is to stay within the law.

a) TRUEb) FALSE

The correct answer is a.

Reference: LO 01: Explain the objectives of effective compensation management.Feedback: Regardless of any tradeoffs, an overriding objective of compensation administration is to maintain legal compliance. P. 334

3) Fortunately, compensation is not concerned with controlling costs, a function that resides with the finance department.

a) TRUEb) FALSE


Reference: LO 01: Explain the objectives of effective compensation management.Feedback: Other objectives of compensation are to reward desired behaviour and to control costs. P. 334

4) Compensation objectives are not rules—they are guidelines.

a) TRUEb) FALSE


Reference: LO 01: Explain the objectives of effective compensation management.Feedback: Compensation objectives are not rules—they are guidelines. P. 335

5) Employees’ physiological and security needs are primarily met from their absolute levels of pay.

a) TRUEb) FALSE


Reference: LO 02: Discuss the consequences of mismanaged compensation programs.Feedback: When the total, or absolute, amount of pay is too low, employees cannot meet their physiological or security needs. P. 334

6) Compensation is the cash rewards employees receive in exchange for their work.

a) TRUEb) FALSE


Reference: LO 02: Discuss the consequences of mismanaged compensation programs.Feedback: Compensation is the cash and noncash rewards employees receive in exchange for their work. P. 334

7) Job grading, or job classification, is a much more sophisticated method of job evaluation than job ranking, and therefore much more precise.

a) TRUEb) FALSE


Reference: LO 03: Describe how wages and salaries are determined.Feedback: Job grading, or job classification, is a slightly more sophisticated method than job ranking, but it too is not very precise. P. 336

8) The least precise method of job evaluation is job grading.

a) TRUEb) FALSE


Reference: LO 03: Describe how wages and salaries are determined.Feedback: The simplest and least precise method of job evaluation is job ranking. P. 336

9) A point system assesses the relative importance of a job's key factors.

a) TRUEb) FALSE


Reference: LO 03: Describe how wages and salaries are determined.Feedback: A point system evaluates the critical—also called compensable—factors of each job, determines different levels or degrees for each factor, and allocates points to each level. P. 336

10) The final step in the point system of job evaluation is to allocate points to levels (or degrees).

a) TRUEb) FALSE


Reference: LO 03: Describe how wages and salaries are determined.Feedback: The final step in the point system is to apply the point system (e.g. the point matrix matrix and manual) to determine the relative value of each job in the organization. P. 339

11) Internal equity refers to the perceived equity of a pay system within one organization.

a) TRUEb) FALSE


Reference: LO 03: Describe how wages and salaries are determined.Feedback: Internal equity refers to the perceived equity of a pay system within one organization. P. 341.

12) Human Resources and Skills Development Canada is the primary source of wage and salary data.

a) TRUEb) FALSE


Reference: LO 03: Describe how wages and salaries are determined.Feedback: While HRSDC is a major source of wage and salary data, additional sources include Canadian Human Resource Centres, Employee and Professional Associations and private consultants. P. 341

13) A wage trend line is used to help determine the wage rates for non-key jobs.

a) TRUEb) FALSE


Reference: LO 03: Describe how wages and salaries are determined.Feedback: The wage-trend line uses two steps to help determine the wage rates for non-key jobs. P. 342

14) Key jobs are jobs that are similar and common in the organization and its labour market.

a) TRUEb) FALSE


Reference: LO 03: Describe how wages and salaries are determined.Feedback: Key jobs are jobs that are similar and common in the organization and its labour market – for example, accountant, tool-and-die maker. P. 342

15) Some jobs must be paid more than is indicated by their relative worth because of market forces.

a) TRUEb) FALSE


Reference: LO 04: Identify the major issues that influence compensation management.Feedback: Some jobs must be paid more than is indicated by their relative worth because of market forces. P. 344

16) A job that is paid below a wage range minimum is called a red circle rate.

a) TRUEb) FALSE


Reference: LO 04: Identify the major issues that influence compensation management.Feedback: A Red-circled rate is a rate of pay higher than the contractual, or formerly established, rate for the job. P. 344

17) Unions can and do raise the prevailing rate for many jobs.

a) TRUEb) FALSE


Reference: LO 04: Identify the major issues that influence compensation management.Feedback: When the union controls most or all of a particular skill, such as carpentry or plumbing, this enables the union actually to raise the prevailing rate for those jobs. P. 344

18) Companies rarely opt to give nonunion workers the same raise as that received by unionized workers.

a) TRUEb) FALSE


Reference: LO 04: Identify the major issues that influence compensation management.Feedback: One common wage/salary policy is to give nonunion workers the same raise as that received by unionized workers. P. 345

19) The Canada Labour Code is a federal law that establishes minimum wages and overtime pay requirements for all Canadian workers.

a) TRUEb) FALSE


Reference: LO 04: Identify the major issues that influence compensation management.Feedback: Federal laws, such as the Canada Labour Code affect compensation rights such as minimum wages and overtime pay) for organizations (and Canadians) under federal jurisdiction. P. 345

20) The concept of pay equity makes it illegal to discriminate on the basis of job value.

a) TRUEb) FALSE


Reference: LO 05: Explain the differences between “equal pay for equal work” and “equal pay for work of equal value.”Feedback: The pay equity makes it illegal to discriminate on the basis of job value (or content). P. 346

21) What makes the issue of equal pay for work of equal value very tricky is the lack of any generally acceptable definition of “equal value” and how it can be measured

a) TRUEb) FALSE


Reference: LO 05: Explain the differences between “equal pay for equal work” and “equal pay for work of equal value.”Feedback: What makes the issue of equal pay for work of equal value very tricky is the lack of any generally acceptable definition of “equal value” and how it can be measured. P. 347

22) The pay gap between men and women is almost entirely due to gender-based discrimination

a) TRUEb) FALSE


Reference: LO 05: Explain the differences between “equal pay for equal work” and “equal pay for work of equal value.”Feedback: The gender wage gap exists in part because women have traditionally found work in lower-paying occupations, such as teaching, retailing, nursing, and secretarial work, and in such positions as receptionist and telephone operator. P. 346

23) The Canadian Human Rights Act applies only to organizations under federal jurisdiction.

a) TRUEb) FALSE


Reference: LO 05: Explain the differences between “equal pay for equal work” and “equal pay for work of equal value.”Feedback: The Canadian Human Rights Act applies only to organizations under federal jurisdiction, such as federal government departments and Crown agencies, the RCMP, the Canadian Armed Forces, banks, airlines, most railway companies, and communication firms. P. 348

24) Piecework is an incentive system that compensates the worker for each unit of output.

a) TRUEb) FALSE


Reference: LO 06: Evaluate the advantages and disadvantages of incentive systems.Feedback: Piecework is a type of incentive system that compensates the worker for each unit of output. P. 349

25) Production bonuses are used in conjunction with a base wage rate or salary.

a) TRUEb) FALSE


Reference: LO 06: Evaluate the advantages and disadvantages of incentive systems.Feedback: Production bonuses are incentives paid to workers for exceeding a specified level of output and are used in conjunction with a base wage rate or salary. P. 349

26) When employees are paid on a commission only basis, the salary commission mix varies with the type of product, territory and sales support.

a) TRUEb) FALSE


Reference: LO 06: Evaluate the advantages and disadvantages of incentive systems.Feedback: See Figure 9-9 on page 350. When the sales plan type is commission only, total compensation is based on an established commission schedule. P. 350

27) Employee stock ownership plans are declining in popularity in North America.

a) TRUEb) FALSE


Reference: LO 07: Explain the major approaches to group incentive plans.Feedback: Employee stock ownership plans are becoming popular in North America. P. 352

28) The “freeloader” effect is a clear advantage of team based compensation.

a) TRUEb) FALSE


Reference: LO 07: Explain the major approaches to group incentive plans.Feedback: If team cohesiveness is not strong a “freeloader effect” may take place, which is a disadvantage of team-based pay systems. P. 351

29) One reason few organizations have implemented the total reward approach is that it requires a reward system tailor-made for the organization.

a) TRUEb) FALSE


Reference: LO 08: Define total compensation.Feedback: The total reward approach requires a reward system tailor-made for the organization, a major undertaking and a reason few organizations have implemented it—though to their great advantage. P. 356

30) One component of a total reward system is respect and or prominence due to work.

a) TRUEb) FALSE


Reference: LO 08: Define total compensation.Feedback: True. See #5 in Figure 9-14: Components of a Total Reward System, P. 356

31) Studies have shown that companies adopting a total rewards model enjoy an enhanced reputation as an “employer of choice”.

a) TRUEb) FALSE


Reference: LO 08: Define total compensation.Feedback: Studies have shown that companies adopting a total rewards model enjoy an enhanced reputation as an “employer of choice”. P. 356

32) Broadbanding assists with many things but not in flattening large, hierarchical organizations.

a) TRUEb) FALSE


Reference: LO 08: Define total compensation.Feedback: One of the advantages of broadbanding is that it assists in flattening large, hierarchical organizations. P. 356

33) Studies show that effective incentive systems can improve the motivation of individuals to perform by as much as 60 percent

a) TRUEb) FALSE


Reference: LO 09: Describe pay and organizational strategy.Feedback: Studies show that effective incentive systems can improve the motivation of individuals to perform by as much as 40 percent. P. 357

34) The common year-end bonus does little to make individuals aware of any performance-reward connection

a) TRUEb) FALSE


Reference: LO 09: Describe pay and organizational strategy.Feedback: The common year-end bonus does little to make individuals aware of any performance-reward connection. P. 358

35) An individual’s motivation to perform is strongly influenced by the consequences of missing set objectives.

a) TRUEb) FALSE


Reference: LO 09: Describe pay and organizational strategy.Feedback: An individual’s motivation to perform is strongly influenced by the consequences of missing set objectives. P. 358

36) The compensation principles originates from one main source: the overall strategy of the organization.

a) TRUEb) FALSE


Reference: LO 09: Describe pay and organizational strategy.Feedback: The compensation principles originate from two sources: the overall strategy of the organization and its corporate values. P. 359

Top of Form

Review your understanding of this chapter.

1) When the objectives of compensation conflict with each other, HR professionals must consider:

a) Reinforcing pay policies

b) Making tradeoffs

c) Being “creative”

d) Rewriting pay guidelines

e) Ignoring pay rules altogether


Reference: LO 01: Explain the objectives of effective compensation management.Feedback: The administration of compensation must meet numerous objectives and sometimes, the ones listed in Figure 9-1 conflict with each other and tradeoffs must be made. P. 334

2) An example of a conflict between compensation objectives is:

1160 0

a) To reward the desired behaviour of controlling costs

b) To reward desired behavior and to award merit raises

c) To reward desired behaviour and to control costs.

d) To reward behavior and to implement performance appraisals

e) To control costs and to create annual compensation budgets

The correct answer is c.

Reference: LO 01: Explain the objectives of effective compensation management.Feedback: Two objectives of compensation which can conflict are: to reward desired behaviour and to control costs (e.g. a department manager might want to reward outstanding performance with a raise, but every raise adds to costs.) p. 334

3) The one compensation objective which overrides all other compensation objectives is:

a) To further operational efficiency

b) To maintain legal compliance

c) To retain present employees

d) To reward desired behavior

e) To further administrative and operational efficiency.


Reference: LO 01: Explain the objectives of effective compensation management.Feedback: Regardless of the tradeoffs, an overriding objective is to maintain legal compliance. P. 334

4) Compensation objectives are not __________, they are _______________.

a) rules; guidelines

b) guidelines; rules

c) suggestions; rules

d) guidelines; Canadian law

e) policy; rules


Reference: LO 01: Explain the objectives of effective compensation management.Feedback: Compensation objectives are not rules—they are guidelines. P. 335

5) Employee physiological and security needs are primarily met through ______ pay, whereas _______ pay is related to social and esteem needs.

a) primary; secondary

b) relative; absolute

c) low; high

d) effective; desired

e) absolute; relative

The correct answer is e.

Reference: LO 02: Discuss the consequences of mismanaged compensation programs.Feedback: Employee physiological and security needs are primarily met through absolute pay, whereas relative pay is related to social and esteem needs. 334

6) Which of the following choices best describes the results that can be achieved when the HR department develops, implements, and administers a compensation systems which ties rewards to the achievement of company objectives,

a) Improved employee performance and happier supervisors.

b) Improved employee satisfaction and cost control

c) Improved employee motivation and cost control.

d) Control of costs

e) Improved employee performance, motivation and satisfaction.


Reference: LO 02: Discuss the consequences of mismanaged compensation programs.Feedback: One way the human resource department improves employee performance, motivation, and satisfaction is through the development, implementation, and administration of compensation systems, which tie rewards to the achievement of company objectives. P. 334

7) Compensation programs help to maintain an organization’s ___________.

a) Corporate mission

b) human resources

c) operations personnel

d) corporate objectives

e) corporate vision


Reference: LO 02: Discuss the consequences of mismanaged compensation programs.Feedback: Compensation programs help to maintain an organization’s human resources. 334

8) Systematic procedures to determine the relative worth or value of jobs is:

a) job evaluation

b) a wage and salary survey.

c) pricing jobs.

d) job analysis.

e) Job relativity


Reference: LO 03: Describe how wages and salaries are determined.Feedback: Job evaluation is the systematic procedures to determine the relative worth or value of jobs. P. 335

9) The simplest, though not necessarily best, approach to job evaluation is:

a) factor compensation.

b) job grading.

c) job ranking.

d) point system

e) job classification.


Reference: LO 03: Describe how wages and salaries are determined.Feedback: The simplest and least precise method of job evaluation is job ranking. P. 336

10) Compensable factors are part of which of the following job evaluation techniques?

a) Grade comparison method

b) Job grading

c) Job ranking

d) Point system

e) Key job approach.

The correct answer is d.

Reference: LO 03: Describe how wages and salaries are determined.Feedback: Compensable factors are the basis of job evaluation using the point system. p. 336

11) The use of wage and salary surveys helps organizations provide for:

a) internal equity

b) absolute equity

c) external equity

d) pricing equity

e) Internal evaluation


Reference: LO 03: Describe how wages and salaries are determined.Feedback: To achieve external equity (i.e. perceived fairness in pay relative to what other employers are paying for the same type of work), most firms rely on wage and salary surveys which determines what other employers in the same labour market are paying for specific key jobs. p. 341

12) The most commonly used, and probably most accurate, system of job evaluation is:

a) factor compensation.

b) job grading.

c) job ranking.

d) a point system.

e) job classification


Reference: LO 03: Describe how wages and salaries are determined.Feedback: Now the point system is, by far, the most commonly used evaluation method as it provides, relatively, the best information regarding job values. P. 335 and 336

13) Internal equity is determined through:

a) human rights commission.

b) balancing market forces.

c) employment equity act.

d) job evaluation.

e) wage surveys.


Reference: LO 03: Describe how wages and salaries are determined.Feedback: All job evaluation techniques result in a ranking of jobs based upon their perceived relative worth. This assures internal equity; that is, jobs that are worth more will be paid more. P. 341

14) Wage and salary surveys determine:

a) how much each employee in the company is making.

b) point values for jobs.

c) wages in relevant labour markets.

d) national averages for wages.

e) total labour costs for the company


Reference: LO 03: Describe how wages and salaries are determined.Feedback: To determine a fair rate of compensation, most firms rely on wage and salary surveys, which discover what other employers in the same labour market are paying for specific key jobs. 341

15) To develop a wage-trend line, a scattergram is constructed showing the relationship between:

a) current pay levels and market wages.

b) points and factor comparisons.

c) current pay levels and rate ranges.

d) market wages and employer wages.

e) points and wage levels of key jobs


Reference: LO 03: Describe how wages and salaries are determined.Feedback: The scattergram is created by plotting the total points and wage level for each key job; each dot represents the intersection of the point value and the wage rate for a particular key job. P. 342

16) When building a compensation system based on points, the first step that must be taken is:

a) determine compensable factors.

b) determine degrees of factors.

c) allocate points.

d) develop a point manual.

e) perform a wage survey.


Reference: LO 03: Describe how wages and salaries are determined.Feedback: Step 1: Determine Compensable Factors. See Figure 9-4 which shows how the factor of responsibility can be broken down into safety of others etc.. P. 337

17) When a job is paid more than its relative worth, this is referred to as a:

a) green-circled rate.

b) merit raise.

c) Red-circled rate

d) Rate range

e) Point allocation


Reference: LO 04: Identify the major issues that influence compensation management.Feedback: When a job is paid more than its relative worth, this is referred to as a red circled rate. P. 344

18) Components of a total reward system include all of the following, EXCEPT:

a) wages.

b) benefits.

c) development opportunities.

d) recognition.

e) Compa-ratio


Reference: LO 04: Identify the major issues that influence compensation management.Feedback: Compa-ratio is an index (used in administration of compensation) that indicates how an individual or groups salary relates to the midpoint of their relevant pay grades. P. 345

19) A _________ is an indicator of how the salary of an employee relates to the midpoint of the relevant pay grade.

a) compensation index

b) compa-ratio

c) compensation matrix

d) compa-matrix

e) Matrix indicator


Reference: LO 04: Identify the major issues that influence compensation management.Feedback: A compa-ratio is an indicator of how the salary of an employee relates to the midpoint of the relevant pay grade. P. 345

20) Without ___________, a company cannot attract the ____________ necessary to remain competitive.

a) People; investors

b) People; job applicants

c) Profits; investors

d) Profits; employees

e) Employees; investors

21) A job is gender-dominated if, depending on jurisdiction, _______________of the job occupants are from one sex.

a) 20 to 30 percent

b) Less than 50 percent

c) 60 to 70 percent

d) 30 to 40 percent

e) 50 to 60 percent

22) To a large degree, women’s job choices in our culture have been determined by:

a) Male dominance in our culture

b) Gender dominance in our culture

c) Society’s expectations about the role of women in our culture

d) Men’s expectations about the role of women in our culture

e) Women’s expectations about the role of women in our culture

23) What makes the issue of equal pay for work of equal value very tricky is:

a) the lack of any generally acceptable definition of “equality” and how it can be measured.

b) the lack of any generally acceptable definition of “equal value” and how it can be measured.

c) the lack of any generally acceptable definition of “male dominance” and how it can be measured.

d) the lack of any generally acceptable definition of “equal value”

e) the lack of any generally acceptable definition of “gender wage gap” and how it can be measured.

24) __________is the principle that means pay must be equal for jobs with comparable content.

a) Equal pay for equal work

b) Equal pay for work of equal value

c) Equal pay

d) Equal pay structures

e) Gender pay

25) Individual incentive plans include all of the following, EXCEPT:

a) production bonuses.

b) piecework.

c) commissions

d) profit-sharing.

e) executive incentives

26) ________________is the accomplishment of assigned tasks; ___________ is the measure of output.

a) Performance; productivity

b) Productivity; commission

c) Work; compensation

d) Productivity; performance

e) Incentive; productivity

27) One of the most significant benefits of financial incentives is that:

a) employees see a direct line of sight.

b) better performance is reinforced on a regular basis

c) employees can see something tangible

d) employees feel truly rewarded

e) managers have control over costs

28) An example of piecework as an incentive system is:

a) in agricultural labour, workers are often paid a specific amount per bushel of produce picked.

b) in agricultural labour, workers are often paid a specific amount per hour.

c) in agricultural labour, workers are often paid a specific amount per bushel of produce sold

d) in agricultural labour, workers are often paid a specific hourly rate for picking produce.

e) in agricultural labour, workers are often paid a specific amount per week.

29) Executives are sometimes granted _____________, that is, the right to purchase the company’s stock at a predetermined price.

a) Excessive perquisites

b) Large bonuses

c) stock options

d) Grant options

e) Stock privileges

30) The common element in most executive incentive plans is:

a) their relation to the performance of the organization

b) their relation to the performance of their subordinates

c) their relation to the performance of the stock market.

d) their relation to the performance of other executives

e) their relation to the pay of other executives

31) The team concept seems to work best in ___________ companies.

a) Manufacturing

b) exporting

c) High tech

d) Consumer products

e) Pharmaceutical

32) A team approach tends to foster:

a) group cohesion and organizational commitment.

b) Group cohesion and higher productivity

c) Higher productivity and increased profit.

d) group cohesion and employee appreciation.

e) Group cohesion and larger profits

33) One disadvantage of a team-based pay systems, if team cohesiveness is not strong, can be that:

a) A “help yourself” attitude may take place.

b) A “freeloader effect” may take place.

c) An “every man for himself” effect may set in

d) A “red circle” effect may set in.

e) A “silver circle” effect may set in.

34) Plans that allow groups of workers to receive bonuses for exceeding predetermined levels of output are called:

a) Exceeding output plans

b) Bonus output plans

c) Production incentive plans

d) Worker group incentives

e) Commission plans

35) Profit-sharing plans can have a dramatic impact on organizations because they can:

a) create a sense of comaraderie among workers and management.

b) create a feeling of success among workers and management.

c) create a sense of democracy between workers and management.

d) create a sense of trust and a feeling of common fate among workers and management.

e) Create a sense of justice among workers

36) The advantages of pay secrecy include all of the following except:

a) Most employees prefer to have their pay kept secret

b) Gives managers greater freedom

c) May generate a distrust in the pay system

d) Many employers don’t like to publish salary levels.

e) Covers inequities in the internal pay structure

37) The first thing to be done to create a skill- or knowledge-based pay system is:

a) skills have to be priced so that pay rates can be determined.

b) The skills required have to be certified.

c) The tasks identified have to be certified.

d) the skills required to complete the tasks have to be identified.

e) tasks that have to be performed in the organization must be identified.

38) The second step in establishing a skill or knowledge based pay system is:

a) skills have to be priced so that pay rates can be determined.

b) the skills required have to be certified.

c) the tasks identified have to be certified.

d) the skills required to complete the tasks have to be identified.

e) tasks that have to be performed in the organization must be identified.

39) A powerful way to motivate employees in the development of autonomous work groups (also known as leaderless work groups) is to:

a) Give every member of management an increase.

b) Give every member of the work group a promotion.

c) Give every member of the work group an increase

d) Offer one of the members of the work group the position of team leader

e) Give every member of a work group a unique t-shirt.

40) The greatest advantage of skill-based pay is:

a) the flexibility of the workforce.

b) Increased job satisfaction among management group

c) Increased productivity of both management and the workforce.

d) Increased job satisfaction of the workforce.

e) Increased compensation of the workforce.

41) A survey by Hewitt Associates, a Human Resource Consulting firm, found that of 420 large Canadian companies surveyed in 2008, _____________ use variable pay as part of their compensation system.

a) 39 percent

b) Fewer than 10 percent

c) Greater than 30 percent

d) 86 percent

e) Less than 20 percent

42) Which of the following is not an advantage of broadbanding?

a) allows for a more flexible workforce and organization

b) deemphasizes promotion

c) Demphasizes cost controls

d) assists in flattening large, hierarchical organizations

e) encourages employees to broaden their skills and abilities

43) Lawler suggests concentrating on motivating performance because:

a) Money motivates when the company is doing well.

b) Money is easy to administer.

c) Money talks.

d) Money is still a strong motivator

e) Money is an important manipulator

44) Simply stated, companies that offer the most valued rewards tend to have the best:

a) attraction and retention rates

b) Credit rating

c) Corporate brand

d) Consumer and employee brand

e) Branding opportunities

45) The compensation principles originate from two sources: the overall strategy of the organization and its corporate values.

a) the overall strategy of the compensation committee and the company’s profitability.

b) The philosophy of the original founder and the effectiveness of the compensation committee.

c) The overall strategy of the organization and its corporate values.

d) The general sustainability of the organization and its corporate values.

e) The overall strategy of the organization and sustainability in dynamic markets.

Pay is called direct compensation because it is based on critical job factors or performance.

a) TRUE

b) FALSE


Reference: LO 01: Describe the objectives of indirect compensation.Feedback: Pay is called direct compensation because it is based on critical job factors or performance. P. 368

2) Since the Second World War means that the average employer spends more than one-half of its payroll costs on benefits and services.

a) TRUE

b) FALSE


Reference: LO 01: Describe the objectives of indirect compensation.Feedback: Since the Second World War means that the average employer spends more than one-third of its payroll costs on benefits and services. P. 369

3) It is accurate to state that indirect compensation may actually reduce fatigue and even discourage labour unrest.

a) TRUE

b) FALSE

4) Legally required benefits and services are important to the human resource department for one main reason - top management holds the human resource department responsible for meeting these legal obligations.

a) TRUE

b) FALSE

5) Both CPP and QPP are contributory plans, that is, both the employer and the employee pay part of the costs.

a) TRUE

b) FALSE

6) One of the key features of the new Employment Act which was fully implemented in 2001–2002, and which was fundamentally restructured is that benefits are now based on hours rather than on weeks worked

a) TRUE

b) FALSE

7) Under provisions of various Workers Compensation Acts, employers cannot be charged a higher rate of contribution even if they have many workers’ compensation claims.

a) TRUE

b) FALSE

8) Vacations are usually based on the employee’s length of service, but federal and provincial laws specify a three-week minimum vacation entitlement.

a) TRUE

b) FALSE

9) Life insurance was the first form of insurance offered to workers by employers, and as a result, group life insurance has become a practically universal element in corporate employee benefit programs.

a) TRUE

b) FALSE

10) A short-term disability plan typically involves crediting or allocating a certain number of days to an employee, to be used as sick leave for occupational accidents or illnesses.

a) TRUE

b) FALSE

11) Under most long term disability plans, payments, when necessary, are made until the normal retirement age is reached.

a) TRUE

b) FALSE

12) Paid sick leave is one of the most abused benefits that employers provide because some employees actually take the attitude that these are simply extra days off.

a) TRUE

b) FALSE

13) Cafeteria benefit programs is another name for benefits programs that allow employees to select benefits that match their individual needs.

a) TRUE

b) FALSE

14) The main advantage of flexible benefits is participation of insurance carriers. .

a) TRUE

b) FALSE

15) It has now become more common in flexible benefits plans for employers to offer the opportunity to “purchase” more vacation, and it is even possible to sell vacation time.

a) TRUE

b) FALSE

16) Interactive voice response systems (IVRs) and Web-based technologies are becoming the norm for the administration of flexible benefit plans,

a) TRUE

b) FALSE

17) Integrated registered pension plans take into account benefits received from the Canada Pension Plan.

a) TRUE

b) FALSE

18) With a defined contribution (DC) plan, the employee receives a fixed dollar amount as a pension, depending on age and length of service.

a) TRUE

b) FALSE

19) For employees a DC plan may mean greater benefits, especially if it is started at a younger age, unless employees leave the organization.

a) TRUE

b) FALSE

20) The Pension Benefits Standards Act requires that pension funds be held in trust for members, and that the funds not be held under the complete custody and control of either the employer or the employees.

a) TRUE

b) FALSE

21) There have been many changes in the field of employee benefits over the years, which means that in order to find the right approach for the administration of benefit plans, a needs analysis should be an essential first step.

a) TRUE

b) FALSE

22) In many provinces, some of the items included in private group insurance plans are already covered under the workers’ compensation and health insurance plans.

a) TRUE

b) FALSE

23) Benefits consultants point out that many dental plans were designed in pre-fluoride days which means that six-month checkups may not be necessary anymore in benefits plans.

a) TRUE

b) FALSE

24) Although several studies have been done on the topic of flexible benefit plans, they do not seem to be very effective tools in attracting and retaining highly skilled staff

a) TRUE

b) FALSE

25) The most popular options for employees in future benefits plans seem to include increased medical coverage, dental plans and optometrist services, above all.

a) TRUE

b) FALSE

26) Improve portability rights and earlier vesting are not likely to be in high demand in benefits plans over the next 10 years.

a) TRUE

b) FALSE

27) Some companies will go to extremes when it comes to retaining key employees, offering such nontraditional benefits as free laundry, backup child care, or dog walking services

a) TRUE

b) FALSE

28) Organizations cannot afford to treat employee benefits and services independent of direct compensation, especially since they are growing at four times the pace of wages and salaries.

a) TRUE

b) FALSE

) Employee benefits and services seek to satisfy several objectives, which include:

a) Employee and employer objectivesb) Societal, organizational, and employee objectivesc) Societal, organizational and employer objectivesd) Internal and external objectivese) Compensation and business objectives.


Reference: LO 01: Describe the objectives of indirect compensation.Feedback: Employee benefits and services seek to satisfy several objectives. These include societal, organizational, and employee objectives. P. 369

2) Benefits programs have become a very significant part of a company’s compensation system, currently approaching the ________ mark of annual payroll expenses, versus 15% in the early 1950s.

a) 25 percentb) 35 percentc) 50 percentd) 60 percente) 65 percent


Reference: LO 01: Describe the objectives of indirect compensation.Feedback: Benefit programs have become a very significant part of a company’s compensation system, slowly approaching the 50 percent mark of annual payroll expenses, as compared to about 15 percent in the early 1950s. p. 368

3) Another common name for the benefits and services that make up indirect compensation is:

a) “Extras”b) Employee Assistancec) Direct Compensationd) “Fringe benefits”e) Employee “extras”


Reference: LO 01: Describe the objectives of indirect compensation.Feedback: To many people, compensation means pay. Anything else an employer might provide is often considered so minor that it is called a “fringe benefit.” P. 368

4) Employees usually seek employer-providded benefits and services because of:

a) Lower costs and availabilityb) Personal needc) High dental and medical costs.d) Ease of administration of expenses.e) A natural desire to maximize compensation.


Reference: LO 01: Describe the objectives of indirect compensation.Feedback: Employees usually seek employer-providded benefits and services because of lower costs and availability. P. 369

5) John Brown is trying to convince the CEO of his company to increase indirect compensation for employees. Which of the following arguments could John not accurately present as areas where employers gain through indirect compensation when making his case?

a) Reduce fatigue.b) Reduce staffing requirementsc) Reduce turnover d) Minimize overtime costse) Discourage labour unrest


Reference: LO 02: Explain how government furthers employee security and which major Canadian laws relate to it.Feedback: It is accurate to state that indirect compensation may do the following: reduce fatigue, discourage labour unrest; satisfy employee objectives; aid recruitment; reduce turnover and minimize overtime costs. P. 369

6) A large majority of Canadians are dependent on their:

a) Pension earningsb) Personal savingsc) Monthly paychequesd) Employerse) Families of origin


Reference: LO 02: Explain how government furthers employee security and which major Canadian laws relate to it.Feedback: A large majority of Canadians are dependent on their monthly paycheques. P. 370

7) Currently about 11 million Canadians are covered by Employment Insurance (EI), but _________________ are not eligible for benefits under the present regulations.

a) Pregnant individualsb) Self-employed individualsc) Terminated individualsd) Landed immigrantse) Part time employees


Reference: LO 02: Explain how government furthers employee security and which major Canadian laws relate to it.Feedback: The self-employed are not eligible for benefits under the present regulations. P. 371

8) Which of the following characteristics was not one of the key features of the new fundamentally restructured Employment Act that was fully implemented in 2001–2002?

a) A higher income threshold for the claw back of benefits.b) Increased eligibility requirements for people entering the labour market.c) Reduction in the maximum benefit entitlement period.d) A family income supplement top-up for claimants in low-income families.e) Collection of premiums based on first dollar earned.


Reference: LO 02: Explain how government furthers employee security and which major Canadian laws relate to it.Feedback: When the new Employment Act became fully implemented in 2001–2002, it included as one of its key features a lower income threshold for the claw back of benefits. P. 371

9) Which of the following statements does not describe the characteristics of life insurance, a frequent benefit provided to employees?

a) Coverage is commonly based on the employee’s pay, often 100 or 200 percent of annual pay.b) Since coverage is generous to start with, optional expanded coverage is seldom made available to

employees.c) Employers generally pay the cost of these life-insurance plans.d) Group life insurance has become a practically universal element in corporate employee benefit

programs.e) Life insurance was the first form of insurance offered to workers by employers.


Reference: LO 03: Describe the costs of employee benefits and ways to control them.Feedback: Optional expanded coverage is usually available. P. 373

10) Which of the following is not considered to be a voluntary form of benefits employers may choose to offer to their employees?

a) Insurance benefitsb) Federal and provincial holidays c) Employee security benefitsd) Paid time-off benefitse) Various employee services


Reference: LO 03: Describe the costs of employee benefits and ways to control them.Feedback: Federal and provincial holidays are benefits mandated by the government and such benefits are not voluntary, but rather required of employers. P. 372 and PP. 373-378

11) At the Left Shoe Company, employees may be promised a minimum of 1,500 hours of work or pay a year (as compared with the “normal” 52 forty-hour weeks for a total of 2,080 hours). This is an example of:

a) A guaranteed annual wage (GAW)b) The Part time Alternate Program c) A Minimum Hours Program.d) A unique company plane) A Pre-Layoff Plan.


Reference: LO 03: Describe the costs of employee benefits and ways to control them.Feedback: Some companies provide a guaranteed annual wage (GAW), which plans assure the worker of receiving some minimum amount of work or pay, as in the exampled described here. P. 374

12) Although _______________ benefits may seem minor, according to one survey they were the costliest major category, making up 15 percent of gross annual payroll.

a) Paid vacation timeb) Paid time-off benefitsc) Salary continuation plans

d) Health related insurancee) Severance Pay


Reference: LO 03: Describe the costs of employee benefits and ways to control them.Feedback: Although these benefits (paid time-off benefits) may seem minor, according to one survey they were the costliest major category, making up 15 percent of gross annual payroll. P. 375

13) Flexible benefits plans have been changing along with everything else. Which of the following statements accurately describes the way such plans were designed in the past?

a) Flexible benefits have traditionally offered the usual choices of better long-term disability insurance, dental or vision care, etc.

b) Flexible benefits have always been supported by web-based technologies.c) In the past it was common for employers to offer the opportunity to “purchase” more vacation.d) In the past it was common for employees to sell vacation time.e) In the past, cafeteria plans often provided employees choices independent of marital status.


Reference: LO 04: Describe the advantages and disadvantages of flexible benefit plans.Feedback: It is accurate to say that flexible benefits, until recently, have offered the usual choices of better long-term disability insurance, dental or vision care, prescription drug coverage, life insurance, group legal services. P. 381

14) Flexible benefits plans have been changing along with everything else. Which of the following statements accurately describes the way such plans are being currently designed?

a) Mundane offerings such as prescription drug coverage have been replaced with better provisions.b) Employees now make choices based on whether they are single or married.c) Interactive voice response systems (IVRs) are becoming the norm for administration. d) Web-based technologies are no longer used in administration of flexible benefits plans.e) Employers no longer allow employees to sell vacation time since it impacts productivity.


Reference: LO 04: Describe the advantages and disadvantages of flexible benefit plans.Feedback: While paper still plays a role in the process in many companies, interactive voice response systems (IVRs) and Web-based technologies are becoming the norm for the administration of flexible benefit plans, making the communication process more effective. P. 381

15) Flexible benefits are considered to be a ______________ solution to problems in administration of benefits, namely proliferation of benefits offerings and increasing employer cost.

a) Proactiveb) Reactivec) Collaboratived) Cooperativee) Flexible


Reference: LO 04: Describe the advantages and disadvantages of flexible benefit plans.Feedback: Since the central problem in supplementary compensation is a lack of employee involvement, allowing employees to select benefits and services that match their individual needs is a proactive solution to recognizing the individual differences and wishes of employees that creates proliferation of benefits and increased employer cost. P. 380

16) To ensure that pension trust funds never come under the complete control of either the employer or the employee, funding of a private pension plan in Canada must be carried out via one or more of the following mechanisms except one. Which is the exception?

a) an insurance contract with a company authorized to conduct a life insurance business in Canadab) a corporate pension society

c) an arrangement administered by the Government of Canada or a provincial governmentd) a trust in Canada whose trustees are either a trust company or a group of individuals, at least three

of whom live in Canada and one of whom must be independent of the employer and employees

e) An arrangement administered by Canada’s governing parliament.


Reference: LO 05: Explain the key issues in designing pension plans.Feedback: To protect pension trust funds, the funding of a private pension plan must be carried out by one or more of the means listed here except through an arrangement by Canada’s governing parliament. P. 375

17) Advantages of the Defined Benefit (DB) pension plans include all but one of the following. Which is the exception?

a) Employers know in advance what the cost of the plan will be.b) Predictable outcomesc) These plans are strictly regulated. d) Employees know in advance what their retirements benefits will be.e) Such plans encourage retention of employees.


Reference: LO 05: Explain the key issues in designing pension plans.Feedback: Although employees know in advance what their retirement benefits will be, employers can only predict the ultimate cost of the plan if contributions are defined, which is the basis of a Defined Contribution Plan (DC), not a Defined Benefits Plan. P. 374-375

18) Vesting refers to:

a) tendency of benefit plans to become outdated if not regularly audited.b) the right of workers to severance pay after six months' service.c) the right of workers to pension benefits even if they leave the company.d) categories of supplemental income benefits.e) Payment of pension benefits


Reference: LO 05: Explain the key issues in designing pension plans.Feedback: Vesting is

19) This Act requires that all pension funds be held in trust for members and that the fund not be held under the complete custody and control of either the employer or the employees.

a) The Defined Contribution Pension Standards Act.b) The Pension Benefits Standards Actc) The Ontario Pension Benefits Standards Act.d) The Canadian Pension Act.e) The All Provincial Pension Benefits Act.


Reference: LO 05: Explain the key issues in designing pension plans.Feedback: The Pension Benefits Standards Act requires that pension funds be held in trust for members, and that the funds not be held under the complete custody and control of either the employer or the employees. P. 375

20) Which of the following benefits does GST generally apply to?

a) A Christmas turkeyb) Health Benefitsc) Company cars (if also used for private purposes)

d) Stock optionse) Long term residential accommodation


Reference: LO 06: Identify the administrative problems of employee benefits and services and suggest improvements.Feedback: Of the benefits listed here, GST would only apply to company cars (if also used for private purposes). P. 383

21) Which of the following is not one of the objectives of a benefits audit?

a) To make sure that insurers are doing a good job.b) To exert control over the benefits chosen by employees.c) To identify opportunities for HR savings.d) To identify opportunities for financial savingse) To compare employee claim habits to other Canadian employers.


Reference: LO 06: Identify the administrative problems of employee benefits and services and suggest improvements.Feedback: Exerting control over the benefits chosen by employees is not one of the objectives of a Benefits Audit. P. 383

22) The central problem in supplementary compensation is a lack of ____________ .

a) fundingb) Upper level management supportc) Planning on the part of human resourcesd) Concern for the impact of demographic on design of benefits.e) employee involvement


Reference: LO 06: Identify the administrative problems of employee benefits and services and suggest improvements.Feedback: The central problem in supplementary compensation is a lack of employee involvement. P. 380

23) Which of the following questions are not one of the five basic questions of a needs analysis used for finding the right administration approach of benefits plans?

a) How long will it take to implement each option, and can the implementation ever be truly completed?

b) What alternative ways of performing these tasks are possible and practical?

c) What reports are available to help decision makers.d) What tasks need to be performed, how often, and how quickly?

e) Who currently performs these tasks, and what does it cost now to perform them (including internal as well as external costs)?


Reference: LO 06: Identify the administrative problems of employee benefits and services and suggest improvements.Feedback: All of the questions listed here are part of the five basic questions of a needs analysis to find the right approach to administering benefits plans except: What reports are available to help decision makers?

24) Which of the following are not implications of financial security plans for human resource departments?

a) Challenge all unjustified claims for employment compensation made against employers.b) Make sure that the firm adheres to all provisions relating to minimum wages and pension

deductions.c) Avoid duplication when designing their firm’s own benefit and service plansd) Utilize compensation consultants.e) Be concerned about reducing accidents.


Reference: LO 06: Identify the administrative problems of employee benefits and services and suggest improvements.Feedback: Utilizing compensation consultants is not one of the implications of financial security plans for human resources. departments. P. 382

25) What do child care and elder care have in common when discussing the topic of benefits coverage?

a) They have nothing in commonb) Several studies have indicated they are both types of benefits that will be in demand over the next

10 years.c) If employers offer child care they are unlikely to offer elder care.d) Both types of benefits are called “sandwich generation” benefitse) Generally when employers offer child care they will offer elder care too.


Reference: LO 07: Discuss benefits and services that are likely to become more common in the future.Feedback: Several studies have indicated that child care and elder care are types of benefits that will be in demand over the next 10 years. P. 378

26) Despite the current economic recession, current trends indicate that all but one of the following statements about indirect compensation is possible:

a) It may well become easier for employees to enroll in benefit plans through liberalized eligibility requirements.

b) Indirect compensation will form a greater proportion of total compensation offered.c) Indirect compensation will form a lesser proportion of total compensation offered.d) Perhaps the employer share of contributions to the various current benefit plans will rise without

any new types of benefits being added.e) Employees may be able to make choices among benefits


Reference: LO 07: Discuss benefits and services that are likely to become more common in the future.Feedback: Despite the current economic recession, current trends do not indicate that indirect compensation will form a smaller proportion of total compensation offered, but rather that they will form a greater proportion of compensation offered. P. 379

27) Which of the following is not a benefits planning issue that should concern management when it takes into account the changes in the labour force that will take place over the next 10 to 20 years?

a) Part-time work also will become more common, with still unforeseeable consequences, since traditionally part-timers received few or no benefits.

b) The average age of the labour force will increase.c) Due to the large baby boom projected over this period of time, greater emphasis will be placed on

child care offerings.d) Greater emphasis will need to be placed on pensions as part of the benefit package.e) More women will be working, and more will do so longer, making their job a career.


Reference: LO 07: Discuss benefits and services that are likely to become more common in the future.Feedback: All the issues here are expected trends that must be taken into account by management in future planning of benefits except for a large projected baby boom. P.379

28) In studies that project benefits that will be in demand in the future, eldercare and offering employees time off to take care of aging and dependent relatives, is seen to be often coupled with:

a) Prepaid legal adviceb) Counselling and special assistancec) Additional funds for nursing assistantsd) More holidayse) Sabbatical leaves for managers


Reference: LO 07: Discuss benefits and services that are likely to become more common in the future.Feedback: Several studies have attempted to predict the types of benefits that will be in demand over

the next 10 years and in the results of such studies, elder care emerges as often coupled with counselling and special assistance. P. 379

1) In a recent study of Canadian employees bt Paul Fairlie, almost 25 per cent of employees indicated that their job had both little recognition and low satisfaction.

a) TRUE

b) FALSE


Reference: LO 01: Discuss the importance of downward and upward communication in organizational settings.Feedback: In a recent study of Canadian employees, only 15% reported having jobs with both clear feedback and a significant impact (that is, the work is important). Almost 25 per cent of employees indicated that their job had both little recognition and low satisfaction. P. 391

2) Good employee relations ensure implementation of organizational strategies

a) TRUE

b) FALSE


Reference: LO 01: Discuss the importance of downward and upward communication in organizational settings.Feedback: Good employee relations ensure implementation of organizational strategies. P. 391

3) Most organizations use a blend of informal, communication efforts and l ad hoc arrangements in the upward and downwards approaches to communication..

a) TRUE

b) FALSE


Reference: LO 01: Discuss the importance of downward and upward communication in organizational settings.Feedback: Most organizations use a blend of formal, systematically designed communication efforts and informal ad hoc arrangements. P. 393

4) Organizations use a variety of downward communication methods because multiple channels are more likely to overcome barriers and reach the intended receivers.

a) TRUE

b) FALSE


Reference: LO 01: Discuss the importance of downward and upward communication in organizational settings.Feedback: Organizations use a variety of downward communication methods because multiple channels are more likely to overcome barriers and reach the intended receivers. P. 393

5) Grapevine communication is an informal system is the people-to-people system that arises naturally from human desires to make friends and share ideas.

a) TRUE

b) FALSE


Reference: LO 02: Define employee counselling and the major types of counselling.Feedback: Grapevine communication is an informal system that arises spontaneously from the social interaction of people in the organization. It is the people-to-people system that arises naturally from human desires to make friends and share ideas. P 397

6) An interesting development in providing EAP services involves the use of online communications, which effectively substitutes for expensive face-to-face employee contact.

a) TRUE

b) FALSE


Reference: LO 02: Define employee counselling and the major types of counselling.Feedback: An interesting development in providing EAP services involves the use of online communication, which are not a substitute for face-to-face employee contact, they may supplement existing EAP structures. P. 401

7) EAPs are designed to assist emmployeees iwth personal problems such as famly or marital differences, substance abuse or even stress.

a) TRUE

b) FALSE

8) The ability to discipline an employee may be restricted by union contracts and government legislation.

a) TRUE

b) FALSE

9) There are three types of discipline: preventive, dismissive and corrective

a) TRUE

b) FALSE

10) Preventive discipline consists of action taken prior to an infraction to encourage employees to follow standards and rules.

a) TRUE

b) FALSE

11) The objectives of disciplinary action are: to reform the offender; to deter others from similar actions; and, to maintain consistent, effective group standards.

a) TRUE

b) FALSE

12) The objectives of disciplinary action are negative, educational and corrective.

a) TRUE

b) FALSE

13) The hot-stove rule states that disciplinary action should have the same characteristics as the penalty a player receives in a hockey game.

a) TRUE

b) FALSE

14) Employee involvement (EI) consists of a variety of systematic methods that empower employees to participate in the decisions that affect them and their relationship with the organization.

a) TRUE

b) FALSE

15) While management by stress may help in raising productivity (at least over the short term), workers often experience considerable personal stress and a sense of being “dehumanized.”

a) TRUE

b) FALSE

16) A study by Watson Wyatt found that good human resource management practices can increase market value by as much as 97%.

a) TRUE

b) FALSE

17) Contrary to the downsizing trend of the 1990s, some organizations are now developing no-layoff policies.

a) TRUE

b) FALSE

18) It is possible to identify three types of downsizing strategies: workforce redesign, work reduction and systematic change.

a) TRUE

b) FALSE

19) While firms frequently believe that downsizing will enhance organizational performance, study after study shows that “following a downsizing, surviving employees become narrow-minded, self-absorbed, and risk averse.

a) TRUE

b) FALSE

20) There is growing evidence that effective communication can reduce some of the negative consequences associated with downsizing

a) TRUE

b) FALSE

1) Which of the following is NOT a method of downward communication?

a) in-house publicationb) grapevinec) e-maild) employee handbookse) all of the above are methods of downward communication


Reference: LO 01: Discuss the importance of downward and upward communication in organizational settings.Feedback: Grapevine communication is an informal system that arises spontaneously from the social interaction of people in the organization that is also an upward communication channel. P. 397

2) To lessen the burden of "going over the boss's head," __________ have been installed by some organizations.

a) e-mail systemsb) grapevine communicationsc) manager-employee meetingsd) attitude surveyse) in-house complaint procedures


Reference: LO 01: Discuss the importance of downward and upward communication in organizational settings.Feedback: To lessen the burden of "going over the boss's head," some organizations have installed in-house complaint procedures. P. 398

3) Which of the following is a type of alternative dispute resolution program?

a) open door policyb) mediationc) moderationd) Both open door policy and mediatione) Both mediation and moderation


Reference: LO 01: Discuss the importance of downward and upward communication in organizational settings.Feedback: The goal of ADR is to resolve disputes in a timely, cost-effective manner. Some types of ADR programs include: an open door policy, a peer review panel, Mediation and arbitration. P. 398

4) Upward communication systems include all of the following, EXCEPT:

a) in-house complaint procedures.b) open-book management.c) suggestion systems.d) manager-employee meetings.e) employee attitude/opinion surveys.


Reference: LO 01: Discuss the importance of downward and upward communication in organizational settings.Feedback: Open book management consists of presentation of reports and information to employees by managers, and employees are therefore dependent on managers for the information, making it a form of downward communication. P. 396

5) Counseling is the discussion of a problem with an employee, with the general objective of helping the worker ________ or ________________ so that he or she can become more effective.

a) Consider resigning; “pull up their socks”b) Resolve the issue; cope with the situationc) Follow the rules; cope with the situationd) Forgive themselves; forgive otherse) Work harder; worker smarter


Reference: LO 02: Define employee counselling and the major types of counselling.Feedback: counsellingThe discussion of a problem with an employee, with the general objective of helping the worker resolve the issue or cope with the situation so that he or she can become more effective. P. 400

6) Some firms advise managers to avoid giving non-job related personal advice to employees. All of the reasons provided to managers here are valid except:

a) Because the managers are not professionally qualified to do so. b) Because managers are generally not practicing psychologistsc) There is a chance that they will give inappropriate or wrong advice d) There is a chance such advice may aggravate the problem. e) It is a waste of the managers valuable time.


Reference: LO 02: Define employee counselling and the major types of counselling.Feedback: Some firms advise managers to avoid giving personal advice to employees that is not related to the job because the managers are not professionally qualified to do so; and there is a chance that they will give inappropriate or wrong advice that aggravates an employee’s problem. P. 400

7) Organizations may establish __________________ to assist employees with personal problems (such as family or marital difficulties, substance abuse, or stress) that may be affecting their performance at work.

a) Arrangements with fitness clubs and recreation facilitieesb) An employee assistance program (EAPc) Access to Marriage counselingd) Access to Addiction counselinge) Access to Marriage or addiction counselling


Reference: LO 02: Define employee counselling and the major types of counselling.Feedback: Organizations may establish an employee assistance program (EAP) to assist employees with personal problems (such as family or marital difficulties, substance abuse, or stress) that may be affecting their performance at work. P. 401

8) The Personal Information Protection and Electronic Documents Act (PIPEDA) protects individuals’:

a) right to fair treatment.b) right to privacy.c) rights in business closings and workplace restructuringd) right to reasonable notice.e) right to employee involvement


Reference: LO 03: Describe how progressive discipline and wrongful dismissal work.Feedback: The Protection of Personal Information and Electronic Documents Act (PPIEDA) came into force in January 2004 in every province without their own privacy legislation with the aim of requiring organizations to hold personal information about individuals in a responsible manner, permitting individuals to access and correct personal information, and allowing individuals control over the handling of information about them. P. 409

9) One of the objectives of corrective discipline is:

a) to have employees discipline themselves.b) to encourage self-discipline.c) to deter others from similar actions.d) to reward inappropriate behaviour.e) To establish who is the boss with employees.


Reference: LO 03: Describe how progressive discipline and wrongful dismissal work.Feedback: The objectives of disciplinary action are to reform the offender; to deter others from similar actions; and to maintain consistent, effective group standards. P. 401

10) The second step in a typical progressive discipline system is:

a) verbal reprimand from supervisor.b) one-to three day suspension from work.c) written reprimand with a record in file.d) suspension for a week or more


Reference: LO 03: Describe how progressive discipline and wrongful dismissal work.Feedback: Step 2 of a Progressive Discipline System is Writen reprimand with a record in file. See Figure 11-2 on P. 403

11) Which of the following is a key step in using positive discipline include:

a) Convey your suspicions to the individual being disciplined at the beginning of the process.b) Approach discipline as a problem-solving process.c) Document “anything and everything”as you go.d) Investigate everything that might influence the issue. e) Follow your hunches and don’t allow yourself to be discouraged from doing so.


Reference: LO 03: Describe how progressive discipline and wrongful dismissal work.Feedback: The key steps in using positive discipline include: 3. Approach discipline as a problem-solving process. P. 403

12) __________ encourages employees to follow standards and rules to prevent infractions.

a) Preventive disciplineb) Corrective disciplinec) Progressive disciplined) Both preventive and corrective disciplinee) Both corrective and progressive discipline


Reference: LO 03: Describe how progressive discipline and wrongful dismissal work.Feedback: Preventive discipline is action taken to encourage employees to follow standards and rules, with the basic objective being to encourage self-discipline among employees. P. 401

13) A growing number of organizations are adopting ______ as a means of reducing the amount of administrative work performed by human resource professionals.

a) job sharingb) quality of work lifec) employee self-service

d) total quality managemente) problem-solving groups


Reference: LO 04: Explain the different techniques available to improve quality of work life.Feedback: Although employee self-service is a fairly new concept, a growing number of organizations are introducing self-service as a means of reducing the amount of administrative work performed by human resource professionals.P. 415

1) It is very difficult to arrive at a broad and universally acceptable definition of diversity that is inclusive yet does not overwhelm us in the process, mainly because of the myriad differences among humans.

a) True

b) False


Reference: LO 01: Define diversity management.Feedback: Given such myriad differences among humans, it is very difficult to arrive at a broad and universally acceptable definition of diversity that is inclusive yet does not overwhelm us in the process. P.

2) The presence of an "old boys network" means that many women will never reach positions of power.

a) True

b) False


Reference: LO 01: Define diversity management.Feedback: Many women are also hindered by lack of access to the old boys’ network, the set of informal relationships that develop among male managers and executives. P. 426

3) Core dimensions of diversity have a significant impact on how an individual is perceived by others, but has little influence on the individual’s perceptions and behaviours in the workplace.

a) True

b) False


Reference: LO 01: Define diversity management.Feedback: Age, ethnicity and culture, gender, race, religion, sexual orientation, and mental and physical capabilities are considered to be the core dimensions of diversity since they exert considerable impact on our early socialization and a powerful, sustained impact throughout our lives. P. 427

4) The secondary dimensions of diversity (education, family status, language and income levels) play important roles in shaping individual’s values, expectations, behaviours and experiences, but they are more variable in their impact on individual behaviours.

a) True

b) False


Reference: LO 01: Define diversity management.Feedback: Secondary dimensions such as education, family status, language, and even income levels play important roles in shaping our values, expectations, behaviours, and experiences by they are less visible, more mutable, and more variable in their impact on individual behaviours. P. 427-428

5) Managing diversity requires an organization to treat its employees as individuals.

a) True

b) False


Reference: LO 01: Define diversity management.Feedback: Managing diversity requires an organization to treat its employees as individuals rather than as numbers or categories. P. 428

6) The increasing role of work teams has little impact on the strategic importance of diversity management.

a) True

b) False


Reference: LO 02: Discuss the strategic importance of diversity management today.Feedback: Teams play a dominant role in modern organizations and while teams always reflected some degree of diversity, today the differences among members are even greater. P. 431.

7) The average member of the workforce of the past was male, white, approximately 30 years old, and usually held a high school diploma or lower.

a) True

b) False

8) In today’s workplace, the most valuable parts of the firm’s operation may be reflected in human tasks of sensing, judging, and making decisions.

a) True

b) False

9) A traditional paradigm in the context of diversity is that organizational success is linked to an individual’s contribution.

a) True

b) False

10) Commitment from senior management is vital for diversity efforts to be successful.

a) True

b) False

11) Diversity management skill-building training creates understanding of the need to manage and value diversity.

a) True

b) False

12) Managing diversity requires an organization to treat its employees as individuals.

a) True

b) False

13) One of the key steps in managing diversity is to identify an ideal future state.

a) True

b) False

14) Anyone can be an effective mentor.

a) True

b) False

15) Career development is relevant to employees of varying ages.

a) True

b) False

16) Most managers and supervisors already have the knowledge and skills needed to manage and motivate a diverse workforce.

a) True

b) False

17) Eliminating the use of ‘he’ when referring to managers in policy manuals refers to creating communication standards within an organization.

a) True

b) False

18) International assignments are usually most attractive to mid-career, experienced candidates.

a) True

b) False

19) Tolerance for ambiguous situations is a quality of successful expatriates.

a) True

b) False

20) Care needs to be taken when forming transnational teams to include persons who also have the interpersonal skills to work as a team.

a) True

b) False

21) Successful global managers show the ability to understand and value differences in cultures.

a) True

b) False

1) Existing values, norms, and patterns of interactions among managers may act as a(n) _____ that _____ the growth of women and minorities beyond a certain level.

a) glass ceiling; helpsb) umbrella policy; stuntsc) glass ceiling; stuntsd) umbrella policy; helpse) none of the above


Reference: LO 01: Define diversity management.Feedback: The existing values, norms, and patterns of interactions among managers may also act as a glass ceiling that stunts the growth of women and minority persons beyond a certain level. P. 426

2) One of the core dimensions of diversity is:

a) education.b) ethnicityc) status.d) language.e) Income level


Reference: LO 01: Define diversity management.Feedback: One of the seven core dimensions of diversity is ethnicity and culture. P. 427

3) ______ is not a secondary dimension of diversity.

a) First languageb) Incomec) Family statusd) Hobbies e) Mental abilities


Reference: LO 01: Define diversity management.Feedback: Mental and physical abilities are core dimensions of diversity. See Figure 12-1 and discussion on P. 427-28

4) Core dimensions of diversity include all of the following, EXCEPT:

a) ageb) education.c) genderd) religione) sexual orientation


Reference: LO 01: Define diversity management.Feedback: Education is a secondary dimension of diversity. See discussion and Figure 12-1 on P. 427-428

5) Which of the following is NOT a factor that makes diversity management strategically important?

a) importance of human capitalb) diversity as a competitive advantagec) paradigm shiftd) changing workforcee) decreasing role of work teams


Reference: LO 02: Discuss the strategic importance of diversity management today.Feedback: The role of work teams is increasing in organizations, which is another factor that makes diversity management strategically important in organizations. P. 431

6) In a Canadian survey, __________ viewed the increasing diversity of the workforce as a competitive opportunity and a sustainable source of competitive advantage

a) 25 per cent of employeesb) 56 percent of employers

c) 25 per cent of senior executivesd) 56 percent of shareholderse) 75 percent of immigrants


Reference: LO 02: Discuss the strategic importance of diversity management today.Feedback: In a Canadian survey, 25 per cent of senior executives viewed the increasing diversity of the workforce as a competitive opportunity and a sustainable source of competitive advantage. P. 430

7) Many of the growing export markets for Canadian firms are located in:

a) The U.S., South America and Europeb) East Asia, South Asia, Latin America, and Africa.c) East Asia, Asia, South America, and South Africa.d) The United States, China and Indiae) East and South Asia, South America, and India


Reference: LO 02: Discuss the strategic importance of diversity management today.Feedback: Many of the growing export markets for Canadian firms are located in East Asia, South Asia, Latin America, and Africa. P. 430

8) Within the context of diversity, the notion that diveristy is a cost is an example of:

a) A traditional paradigmb) An enlightened view of managementc) A new paradigmd) A realistic view of diversity e) A North American view


Reference: LO 02: Discuss the strategic importance of diversity management today.Feedback: Within the context of diversity, the notion that diveristy is a cost is an example of a traditional paradigm. See Figure 12-2 on p. 431

9) The first step in diversity management is:

a) analyze present systems and procedures.b) change systems, procedures, and prioritiesc) establish a diversity committee.d) identify the ideal future state.e) provide education and retraining.


Reference: LO 03: Discuss the various steps in managing diversity.Feedback: In almost all instances, diversity management efforts require four key steps, the first of which is to identify the ideal future state of the organization. See P. 432 and Figure 12-3 on P. 433.

10) Assimilation into a homogeneous culture may result in:

a) Improved creativityb) Valuing differencesc) Devaluing individualsd) Devaluing culturee) Loss of synergy


Reference: LO 03: Discuss the various steps in managing diversity.Feedback: While assimilation into a homogeneous culture may result in loss of synergy, valuing differences can result in improved creativity and innovative problem solving. P. 431

11) Training to create understanding of the need to manage and value diversity is______ training.

a) awarenessb) skill-buildingc) mentoringd) Coachinge) sensitivity


Reference: LO 04: List current industry practices in this field.Feedback: Awareness training focuses on creating an understanding of the need for managing and valuing diversity. P. 438

12) An organization replaces “chairman” with “chairperson” when referring to a position on the firm’s Board of Directors. This action relates to the application of formal protocols for internal communications referred to as:

a) support groups.b) career development.c) mentoring.d) senior management commitment.e) communication standards


Reference: LO 04: List current industry practices in this field.Feedback: The use of “he” when referring to managers in policy manuals has the result of perpetuating the “male” image of a manager. There is no reason why a “chairman” of a meeting is a man; the more progressive organizations recognize this and use the term “chairperson.” P. 441

13) In 2009, _________________ of Canadian employers surveyed by Catalyst indicated a stated commitment to diversity in their mission or vision statements; however, _____________ of them had any policies or practices that in fact supported such a vision

a) nearly two-thirds; fewer than halfb) nearly half; fewer than two-thirdsc) Nearly two thirds; less than ten percent d) Nearly half; less than ten per cente) Nearly eighty percent; fewer than fifteen percent


Reference: LO 04: List current industry practices in this field.Feedback: In 2009, nearly two-thirds of Canadian employers surveyed by Catalyst, a New York based research and advisory organization that promotes women in business, indicated a stated commitment to diversity in their mission or vision statements; however, fewer than half of them had any policies or practices that in fact supported such a vision. P. 438

14) A(n) __________ is a home country national sent to a foreign work location.

a) expatriateb) host country nationalc) third country nationald) home workere) Foreign national worker


Reference: LO 05: Discuss the special challenges facing global firms in the context of diversity management.Feedback: An expatriate is a home-country national sent to foreign locations on temporary or extended stay. P. 443

15) One of the benefits of using a(n) ________ is the person will understand local culture better.

a) expatriateb) host country nationalc) third country nationald) Valued employeee) Foreign national worker


Reference: LO 05: Discuss the special challenges facing global firms in the context of diversity management.Feedback: Increasingly, there has been a trend away from use of expatriates to local (or host country) nationals to minimize culture shock, reduce costs, and meet the demands of local governments. P. 444

16) One of the core competencies of a(n) expatriate manager is:

a) cultural adaptability.b) being a parent.c) being married.d) agee) Technical orientation


Reference: LO 05: Discuss the special challenges facing global firms in the context of diversity management.Feedback: Cultural adaptability is a core competency of the expatriate manager, which is the ability to understand and adapt to local cultural norms and practices without losing track of one’s objectives. See Figure 12-9 Core Competencies of an Expatriate Manager.

17) The Japanese often use a consensus decision making process called:

a) consenisei.b) delphi technique.c) nominal group technique.d) Ringi-sei.e) Decision-sei


Reference: LO 05: Discuss the special challenges facing global firms in the context of diversity management.Feedback: Ringi-sei is a type of decision making by consensus often used by the Japanese; literally, “bottom-up decision making”. P. 448

18) All of the following are issues that individuals see as barriers to international recruitment except:

a) Fear of losing touch with developments at HQb) lack of knowledge about job openings.c) assignments located in less-developed areas.d) languagee) Having a spouse who does not work outside the home.


Reference: LO 05: Discuss the special challenges facing global firms in the context of diversity management.Feedback: Dual-career families are a barrier to international recruitment. P. 444

19) Culture disorientation that causes expatriates stress is known as:

a) cultural assimilation.b) culture shock.c) critical incidents.d) cultural norming.e) cultural sensitivity.


Reference: LO 05: Discuss the special challenges facing global firms in the context of diversity management.Feedback: Culture shock is cultural disorientation causing stress and the inability to respond appropriately. P. 448

20) Cross-cultural training methods include:

a) role-plays, simulations, and lectures.b) critical incidents, lectures, and simulations.c) role-plays, critical incidents, and simulations.d) cases, lectures, and role-plays.e) Sensitivity training, culture assimilators, critical incidents, cases, role-lay and simulation.


Reference: LO 05: Discuss the special challenges facing global firms in the context of diversity management.Feedback: Cross cultural training methods do not include lectures, and a list of methods used may be found on p. 449.

Top of Form

1) Joint Occupational Health and Safety Committees are usually required in every workplace with 5 or more employees.

a) TRUEb) FALSE


Reference: LO 01: Describe the major Canadian laws relating to occupational health and safety.Feedback: A key element of health and safety laws is the Joint Occupational Health and Safety Committee, which is usually required in every workplace with 20 or more employees. P. 465

2) The Canada Labour Code gives safety officers the right to enter an industrial workplace at any reasonable time to make inquiries or conduct an inspection.

a) TRUEb) FALSEc) Section 141 of the Canada Labour Code (Part II) details that (1)


Reference: LO 01: Describe the major Canadian laws relating to occupational health and safety.Feedback: A safety officer may, in the performance of the officer’s duties and at any reasonable time, enter any work place controlled by an employer and, in respect of any work place, may conduct test, inquiries, take samples of material or substances for analysis, etc. P. 467

3) All provinces and territories have safety regulations similar to the federal regulations.

a) TRUEb) FALSE


Reference: LO 01: Describe the major Canadian laws relating to occupational health and safety.Feedback: At the Federal level, the Canada Labour Code (Part II) details the elements of an industrial safety program and provides for regulations to deal with various types of occupational safety problems. All provinces and the territories have similar legislation. P.465

4) Federal occupational health and safety standards take precedence over provincial standards.

a) TRUEb) FALSE


Reference: LO 01: Describe the major Canadian laws relating to occupational health and safety.Feedback: The administration of safety programs comes mainly under provincial jurisdiction. Each province has legislated specific programs for the various industries and occupations within it. Across the

country, provinces are following a trend of consolidating health and safety legislation and streamlining the enforcement of the relevant statutes by combining different agencies into one body. P. 467

5) Over the last 45 years there has been a growing emphasis on health and safety in the workplace.

a) TRUEb) FALSE


Reference: LO 02: Assess the traditional thinking with respect to occupational health and safety issues.Feedback: Over the last 25 years there has been a growing emphasis on health and safety in the workplace. P. 461

6) Accidents at work are usually caused by unsafe employee behaviour.

a) TRUEb) FALSE


Reference: LO 02: Assess the traditional thinking with respect to occupational health and safety issues.Feedback: Accidents at work are caused by a complex combination of unsafe employee behaviour and unsafe working conditions. P. 462

7) Exposure to such natural organisms as parasites, bacteria, insets, viruses and so on is one of the four categories of health hazards known as biological agents/biohazards.

a) TRUEb) FALSE


Reference: LO 03: Explain the new thinking with respect to employee rights relating to occupational health and safety issues.Feedback: It is possible to combine the various health hazards into four categories, which include biological agents/biohazards, which is exposure to such natural organisms as parasites, bacteria, insets, viruses and so on. P. 464

8) With reference to age, younger workers are the most likely to be injured.

a) TRUEb) FALSE


Reference: LO 03: Explain the new thinking with respect to employee rights relating to occupational health and safety issues.Feedback: With reference to age, younger workers were most likely to be injured; the time-loss injury incidence rate per 100 workers was 2.93 for employees age 15 to 24, 2.59 for employees from age 25 to 54, and 1.91 for workers age 55 and over. P. 463

9) The back is the most common body part to be injured on the job.

a) TRUEb) FALSE


Reference: LO 03: Explain the new thinking with respect to employee rights relating to occupational health and safety issues.Feedback: An employee is most likely to injure his or her back, while injuries to one’s fingers or legs are the second and third most common body parts injured. P. 464

10) Supervisors need to have only a general awareness of managing safety, whereas HR professionals need to be proficient in managing safety.

a) TRUEb) FALSE


Reference: LO 04: Outline the safety and health responsibilities of employers and employees.Feedback: As part of their management training, supervisors must become proficient in managing safety, which means knowing about health and safety laws, safety regulations, training in observing safety violations, and learning communication skills to convey the necessary information to their employees. P. 470

11) Executives and managers may be held criminally responsible for workplace accidents.

a) TRUEb) FALSE


Reference: LO 04: Outline the safety and health responsibilities of employers and employees.Feedback: Section 217.1 of the Criminal Code states: Everyone who undertakes, or has the authority, to direct how another person does or performs work or performs a task is under a legal duty to take reasonable steps to prevent bodily harm to that person, or any other person, arising from that work or task. P. 469

12) A major purpose of occupational health and safety laws is to prevent injuries.

a) TRUEb) FALSE


Reference: LO 04: Outline the safety and health responsibilities of employers and employees.Feedback: A major purpose of occupational health and safety laws is to prevent injuries from happening. P. 468

13) A poll of Canadians indicated that 85% would like to see corporate executives made criminally responsible for avoidable accidents that occur in the workplace.

a) TRUEb) FALSE


Reference: LO 04: Outline the safety and health responsibilities of employers and employees.Feedback: A poll of Canadians indicated that 85% would like to see corporate executives made criminally responsible for avoidable accidents that occur in the workplace. P. 469

14) Two of the work environment antecedents of safety performance include individual attitudes and differences.

a) TRUEb) FALSE


Reference: LO 04: Outline the safety and health responsibilities of employers and employees.Feedback: Individual attitudes and differences are individuall antecedents of safety performance. See Figure 13-4: P. 473

15) One study of stress in the Canadian workplace indicated that about 47 per cent of Canadian workers experience a great deal of stress at work and 41 per cent believe that their company does not do enough to help manage workplace stress.

a) TRUEb) FALSE


Reference: LO 05: Discuss the impact of stress on employees and the workplace.Feedback: One study of stress in the Canadian workplace indicated that about 47 per cent of Canadian workers experience a great deal of stress at work and 41 per cent believe that their company does not do enough to help manage workplace stress. P. 476

16) When employers give employees the opportunity to relax through activities such as yoga and meditation this is referred to as a curative solution to workplace stress.

a) TRUEb) FALSE


Reference: LO 05: Discuss the impact of stress on employees and the workplace.Feedback: In terms of curative measures, some employers give employees the opportunity to relax through such activities as aerobic exercises, yoga and meditation. P. 478

17) A stress audit assists in identifying the causes of stress.

a) TRUEb) FALSE


Reference: LO 05: Discuss the impact of stress on employees and the workplace.Feedback: It is possible to evaluate the extent of dysfunctional stress by performing a stress audit, which assists in identifying the causes of stress. P. 479

18) A recent study of violence and aggression in the workplace indicated that the three most common incidents of workplace violence were loud screaming, destruction of employer property and throwing an office object in anger.

a) TRUEb) FALSE


Reference: LO 05: Discuss the impact of stress on employees and the workplace.Feedback: A recent study entitled Violence and Aggression in the Workplace involved a survey of Canadian CEOs. The results indicated that the three most common incidents of workplace violence were loud screaming or yelling, destruction of employer property during a fit of anger, and throwing a telephone, pen or some other office object in anger. P. 482

19) Not all stress is harmful

a) TRUEb) FALSE


Reference: LO 05: Discuss the impact of stress on employees and the workplace.Feedback: Moderate levels of stress may actually increase workplace performance. P. 474

20) A scan of newspapers and television reports indicates that workplace violence is a rather rare event.

a) TRUEb) FALSE


Reference: LO 06: Summarize the relationship between health and safety issues and human resource management.Feedback: A scan of newspapers and television reports indicates that workplace violence is not a rare event. P. 482

21) In the U.S., violence is the leading cause of workplace death for women.

a) TRUEb) FALSE


Reference: LO 06: Summarize the relationship between health and safety issues and human resource management.Feedback: Evidence from the United States indicates that violence is the third-highest cause of all workplace deaths and the leading cause of workplace death for women. P. 482

22) The textbook recommends that mandatory training for managers, supervisors, and union leaders, is important to the set-up of a successful AIDS program.

a) TRUEb) FALSEc) Some recommendations on how to set up a successful AIDS program are outlined on p. 485 of the

text, including: (2)Mandatory Training for managers, supervisors, and union leaders. P. 485


Reference: LO 06: Summarize the relationship between health and safety issues and human resource management.Feedback:

23) Employers are required by law to use ergonomics (human factors engineering) in the design and operation of their workplaces.

a) TRUEb) FALSE


Reference: LO 06: Summarize the relationship between health and safety issues and human resource management.Feedback: Employers are not required by law to use ergonomics in the design and operation of their workplaces, but rather proactive employers aim to ensure that the work system is compatible with employees; recent research indicates that about 33% of employers provide some type of wellness initiative associated with ergonomics. P. 483

24) The events of September 11, 2001 led to a reassessment of security policies used to make workplaces safe.

a) TRUEb) FALSE


Reference: LO 06: Summarize the relationship between health and safety issues and human resource management.Feedback: The events of September 11, 2001, have increased employer and employee awareness of workplace security issues, which has led to a reassessment of security policies used to make workplaces safe. P. 481

Top of Form

) When working conditions are perceived to be unsafe, the law permits workers to:

a) get the police to arrest management.b) perform a work refusal.c) inform the media.d) Down tools and remove hardhatse) Tell anyone who will listen


Reference: LO 01: Describe the major Canadian laws relating to occupational health and safety.Feedback: Part Ii of the Canada Labour Code establishes three fundamental employee rights, one of which is the right to refuse dangerous work. P. 465.

2) Part II of the Canada Labour Code provide all of the following, EXCEPT:

a) the right to know about hazards in the workplace.b) the right to participate in correcting workplace hazards.c) the right to refuse dangerous work.d) the right to avoid stressful situations in the workplace.e) Three fundamental employee rights.


Reference: LO 01: Describe the major Canadian laws relating to occupational health and safety.Feedback: Part II of the Code does not establish the right to avoid stressful situations in the workplace. P. 465

3) A(n) _________ attitude toward accident prevention where the worker accepts all risks and unsafe practices is called ______.

a) current; assumption of riskb) obsolete; careless worker modelc) current; careless worker modeld) obsolete; assumption of riske) obsolete; shared responsibility model


Reference: LO 02: Assess the traditional thinking with respect to occupational health and safety issues.Feedback: At the turn of the century, the thinking and attitudes of employers and employees toward accident prevention were quite different from today. During this period, the courts used a legal expression, “assumption of risk,” meaning that the worker accepted all the customary risks associated with the occupation he or she worked in. p. 461

4) The most common time-loss injury to workers in Canada is due to:

a) sprains and strains.b) multiple injuries.c) cuts or punctures.d) broken bones.e) burns.


Reference: LO 02: Assess the traditional thinking with respect to occupational health and safety issues.Feedback: The most common type of injury involves strains and sprains, followed by contusions, crushing, or bruises. P. 465

5) The early approach to safety at work used the:

a) Careless worker modelb) Shared Worker modelc) Careless responsibility modeld) Assumption of responsibility modele) Management responsibility model


Reference: LO 02: Assess the traditional thinking with respect to occupational health and safety issues.Feedback: The early approach to safety at work used the careless worker model. P. 461

6) ________ is the most common body part injured on the job in Canada.

a) Fingerb) Legc) Shoulderd) Backe) Hand


Reference: LO 02: Assess the traditional thinking with respect to occupational health and safety issues.Feedback: An employee is most likely to injure his or her back, while injuries to one’s fingers or legs are the second and third most common body parts injured. P. 464

7) Accidents at work are caused by a coplex combination of _______________ and ____________________.

a) Ignorant employees; ignorant management.b) Unsafe employee behavior; unsafe working conditionsc) Careless employees; uncaring supervisorsd) Unsafe employee behavior; untrained supervisorse) Untrained employees; untrained supervisors


Reference: LO 03: Explain the new thinking with respect to employee rights relating to occupational health and safety issues.Feedback: Accidents at work are caused by a coplex combination of unsafe employee behavior and unsafe working conditions. P. 462

8) Which of the following is not one of the indirect costs incurred by employers as a result of workplace injuries?

a) Lost productionb) Recruiting and selecting new employeesc) Lost wages and disability compensation

d) Training new employeese) Damage to facilities and equipment


Reference: LO 03: Explain the new thinking with respect to employee rights relating to occupational health and safety issues.Feedback: Lost wages and disability compensation are direct costs of workplace injuries that employers must bear. P. 462-3

9) Research on the number of time-loss injuries in Canada reveals that there are about _________ injuries for each 100 workers.

a) 10.5b) 5.5c) 6.6d) 7.7e) 7.5


Reference: LO 03: Explain the new thinking with respect to employee rights relating to occupational health and safety issues.Feedback: When considering injury incidence there ar about 5.5 injuries for each 100 workers in Canada. P. 463

10) One of the four categories of health hazards is chemical agents, which involves:

a) Exposure to noise, temperature and lighting. b) Exposure to vibrations and radiationc) Exposure to harmful toxic substances. d) Repetitive strain, stress, over-exertion/fatigue and back injuries. e) Exposure to natural organisms like bacteria, viruses etc.


Reference: LO 03: Explain the new thinking with respect to employee rights relating to occupational health and safety issues.Feedback: Chemical agents is a health hazard category that involves exposure to chemical compounds or other harmful toxic substances. P. 464

11) Bill C-45 imposes a new duty on executives and anyone who directs the work of others. These individuals are now:

a) required to attend monthly safety training programs.b) required to attend Occupational Health and Safety meetings.c) demoted or terminated if an avoidable workplace accident occurs.d) held criminally responsible for avoidable workplace accidents.e) Required to provide input into safety legislation.


Reference: LO 04: Outline the safety and health responsibilities of employers and employees.Feedback: In addition, the Bill C-45 amendments to the Criminal Code imposed a new duty on individuals and organizations. Section 217.1 of the Criminal Code states: Everyone who undertakes, or has the authority, to direct how another person does or performs work or performs a task is under a legal duty to take reasonable steps to prevent bodily harm to that person, or any other person, arising from that work or task.P. 469.

12) As the Health and Safety Manager at Nufarm Chemicals, Ben Black designed a comprehensive safety orientation program to ensure that employees at Nufarm would know how to respond in a crisis situation. Which of the following is not something his program might address?

a) Fire safety and smoking at workb) Accident proceduresc) Benefits policies and proceduresd) Protective equipmente) Material and chemical hazards


Reference: LO 04: Outline the safety and health responsibilities of employers and employees.Feedback: Safety policies and procedures would be part of a comprehensive safety orientation program, but benefits policies and procedures would not be relevant. P. 469.

13) Shift workers may experience higher stress and may be prone to an increase in accidents and mistakes due to such factors as:

a) Social networking on the jobb) Sleepiness and not eating properlyc) Substance abuse

d) Poor driving habitse) High divorce rates


Reference: LO 04: Outline the safety and health responsibilities of employers and employees.Feedback: Shift workers may experience higher stress and may be prone to an increase in accidents and mistakes due to such factors as sleepiness and fatigue and not eating properly. P. 469

14) While the cost of a health and safety consultant ranges from $50- $100 per hour, companies often save _______________ times the cost of the consulting bill from lower _______________ alone.

a) Three to five; experience ratingsb) Five to seven; experience ratingsc) Three to five; accident ratesd) Five to seven; accident ratese) Two to four; experience ratings


Reference: LO 04: Outline the safety and health responsibilities of employers and employees.Feedback: While the cost of a health and safety consultant ranges from $50- $100 per hour, companies often save three to five times the cost of the consulting bill from lower experience ratings alone. P. 469

15) The first Bill C-45 conviction involved:

a) A fatal but preventable accident involving two trucks on the 401.b) An accident involving an 18 year old injured on her first day of work c) An accident that occurred on Take Your Child to Work Day in Ontariod) The crash of a company plane which seriously injured several senior management people. e) The fatality of an employee in Quebec


Reference: LO 04: Outline the safety and health responsibilities of employers and employees.Feedback: The first Bill C-45 conviction involved the death of an employee in Quebec. P. 470

16) Ben Black emphasized with the Director of HR that if the company is every charged with a health and safety offence, the company’s best defence is __________________,

a) An excellent defense lawyer.b) Studied avoidance of the topic.c) Due diligenced) A huge insurance policye) A strong presence on the witness stand.


Reference: LO 04: Outline the safety and health responsibilities of employers and employees.Feedback: When charged with a health and safety offence, a company best defence is “due diligence”, which means that the company took all reasonable stpes to avoid the particular event. P. 472

17) Stress may be associated with:

a) cardiovascular disease.b) musculoskeletal disorders and cancerc) workplace injuries and cancerd) cancere) Cardiovascular disease, workplace injuries, cancer and musculoskeletal disorders.


Reference: LO 05: Discuss the impact of stress on employees and the workplace.Feedback: There is a growing body of research indicating that stress may be associated with cardiovascular disease, workplace injuries, cancer and musculoskeletal disorders. P. 475

18) ______ is a term used to describe an employee who is able to come to work but is inhibited from achieving optimal levels of productivity due to ongoing health issues.

a) Burnoutb) Engagedc) Presenteeismd) Risk factore) Curative


Reference: LO 05: Discuss the impact of stress on employees and the workplace.Feedback: Presenteeism is a term used to describe an employee who is able to come to work but is inhibited from achieving optimal levels of productivity due to ongoing health issues. P. 477

19) Major causes of workplace stress include all of the following, EXCEPT:

a) workload.b) Over-promotion c) Change d) physical environment.e) Workload, overpromotion, change and the physical environment.


Reference: LO 05: Discuss the impact of stress on employees and the workplace.Feedback: Workload, over-promotion, change and the physical environment are all major causes of workplace stress, together with others listed in Figure 13-5 on p. 475.

20) The most rapidly growing category of workplace illnesses involves:

a) AIDS.b) viral infectionsc) off-duty accidents.d) ergonomic disorders.e) slips and falls.


Reference: LO 06: Summarize the relationship between health and safety issues and human resource management.Feedback: Research suggests that the most rapidly growing category of workplace illnesses involves ergonomic disorders. P. 484

21) Ben Black registered for a Health and Safety Conference in Vancouver because he wanted to learn the latest on contemporary and emerging safety issues. Which of the following workshop topics would Ben be less likely to attend given his learning requirements?

a) Ergnonomicsb) Sick building syndrome

c) Workplace security and Workplace violenced) AIDS in the workplacee) Health and Safety Committees


Reference: LO 06: Summarize the relationship between health and safety issues and human resource management.Feedback: Ben would be less interested in learning about health and safety committees since this is not an emerging issue. Rather it is a requirement of health and safety legislation if an organization has between 10 and 20 employees. P. 483-

22) Two common types of injuries that may be reduced by the application of ergonomic principles are:

a) Overexertion and lower back injuryb) CTD and OSc) Overexertion and RSId) OS and MSIe) Lower back injury and lifting injuries


Reference: LO 06: Summarize the relationship between health and safety issues and human resource management.Feedback: Two common types of injuries that may be reduced by the application of ergonomic principles are (1) overexertion and lower back injury and (2) repetitive-strain injuries (RSI. P. 484

23) Ben Black is giving a workshop on AIDS in the workplace, and a supervisor asks him what he should do if a job applicant mentions during the interview that he/she has an HIV –related infection. What key piece of information do the workshop attendees need to know from Ben about handling such a situation?

a) It is a breach of etiquette to discuss the issue with a job applicant.b) It is a breach of human rights laws to discriminate against such a person.c) It is not necessary to hire such a person.d) It is important not to touch such a person.e) The supervisor should ask what medications the individual is on.


Reference: LO 06: Summarize the relationship between health and safety issues and human resource management.

Feedback: Ben would be remiss if he did not advise the supervisor and other workshop attendees that it is a breach of human rights laws to discriminate against such a person. P. 485

24) As Ben Black plans the training program for managers, supervisors and union leaders about AIDS in the workplace which of the following components should not be included:

a) Provide a forum for an open, frank discussion about AIDSb) Present facts on HIVc) Address personal concerns about AIDS in the workplaced) Address personal concerns about cancer in the workplace.e) Encourage empathy for those with AIDS


Reference: LO 06: Summarize the relationship between health and safety issues and human resource management.Feedback: In an AIDS workshop it would be relevant to address personal concerns about AIDS n the workplace, but not about cancer, since it is a different disease. P. 485

Assess your understanding of this chapter.

1) Craft unions are a type of industrial union.

a) Trueb) False


Reference: LO 01: Describe the structure of Canadian unions.Feedback: Craft unions are a type of local union composed of workers who possess the same skills or trades. P. 496

2) The formation of unions means less management interaction with the HR department.

a) Trueb) False


Reference: LO 01: Describe the structure of Canadian unions.Feedback: Unions do not reduce the need for effective human resource policies and procedures because

management must still manage, and the union does not assume the responsibilities of the human resource department. P. 494

3) The mission of business unionism is to improve workers’ wages, hours, and working conditions through the lobbying of governments.

a) Trueb) False


Reference: LO 01: Describe the structure of Canadian unions.Feedback: The mission of business unionism is to protect workers, increase their pay, improve their working conditions, and help workers in general. P. 496

4) National and international unions exist to organize and help local unions.

a) Trueb) False


Reference: LO 01: Describe the structure of Canadian unions.Feedback: National and international unions exist to organize and help local unions. P. 497

5) The Canadian Labour Congress is the only labour federation in Canada.

a) Trueb) False


Reference: LO 01: Describe the structure of Canadian unions.Feedback: While the Canadian Labour Congress is the largest labour federation, it is not the only one. P. 497

6) Craft unions represent skilled and unskilled workers in an industry.

a) Trueb) False


Reference: LO 01: Describe the structure of Canadian unions.Feedback: A craft union is composed of workers who possess the same skills or trades. P. 496

7) A collective agreement places restrictions on management's rights in managing the workplace.

a) Trueb) False


Reference: LO 02: Discuss the major reasons why workers join unions.Feedback: A collective agreement places restrictions on management's rights in managing the workplace. P. 494

8) The reasons for joining a union vary from person to person.

a) Trueb) False


Reference: LO 02: Discuss the major reasons why workers join unions.Feedback: Why do employees join unions? The reasons for joining a union vary from person to person and there is no single force that motivates people to join unions. P. 494

9) The lowest rates of unionization in 2008 were in the utilities sector.

a) Trueb) False


Reference: LO 03: Identify conditions that indicate unionization may occur.Feedback: In 2008, the lowest rates of unionization were in the agricultural, wholesale trade and food and beverage sectors.

10) Most collective agreements are settled without a labour disruption.

a) Trueb) False


Reference: LO 03: Identify conditions that indicate unionization may occur.Feedback: The reality is that most collective agreements are settled without the union resorting to strike action or the employer locking out the workers. P. 499

11) More than half of Canadian union members are female.

a) Trueb) False


Reference: LO 03: Identify conditions that indicate unionization may occur.Feedback: In recent years, the number of women members in Canadian unions has been increasing rapidly and now more than 50 percent of union members are female. P. 498

12) Full-time unionized workers earn more than comparable nonunionized workers.

a) Trueb) False


Reference: LO 03: Identify conditions that indicate unionization may occur.Feedback: The average hourly wage for full-time unionized employees in 2006 was $23.34 (compared with $19.84 for non-union workers). P. 501

13) Groups of employees in huddled conversations that end when a manager walks by can be an indicator that suggests union activity.

a) Trueb) False


Reference: LO 04: Explain how a union organizing campaign is carried out.Feedback: Groups of employees in huddled conversations that end when a manager walks is one of a numbef of indicators that suggest union activity. See Figure 14-8 P. 505

14) Engaging in, encouraging, or threatening illegal strikes is considered fair labour practice by unions.

a) Trueb) False


Reference: LO 04: Explain how a union organizing campaign is carried out.Feedback: Unfair Labour practices by unions include engaging in, encouraging, or threatening illegal strikes. See Figure 14-10 on P. 507

15) In Alberta, British Columbia, Newfoundland, Nova Scotia and Ontario, unions are automatically certified based on card signatures.

a) Trueb) False


Reference: LO 04: Explain how a union organizing campaign is carried out.Feedback: Five provinces - Alberta, British Columbia, Newfoundland, Nova Scotia and Ontario – do not automatically certify unions based on card signatures. P. 508

16) In all cases, unions only begin when workers create them.

a) Trueb) False


Reference: LO 04: Explain how a union organizing campaign is carried out.Feedback: It is worth remembering that a union exists only when workers create it. P. 504

17) To enforce labour legislation, the federal and all provincial governments have created collective bargaining boards.

a) Trueb) False


Reference: LO 05: Summarize the core legal principles relating to collective bargaining.Feedback: To enforce labour legislation, the federal and all provincial governments have created labour relations boards (LRB). P. 504

18) Groups of employees huddled in conversations that end when a manager walks by can be an indicator that suggests union activity.

a) Trueb) False


Reference: LO 05: Summarize the core legal principles relating to collective bargaining.Feedback: Groups of employees in huddled conversations that end when a manager walks by can be an indicator that suggests union activity.

19) It is legal for a union to strike during the life of a contract.

a) Trueb) False


Reference: LO 05: Summarize the core legal principles relating to collective bargaining.Feedback: It is illegal for a union to strike or an employer to lock out employees during the life of the contract. P. 503

20) In all jurisdictions in Canada, collective agreements must be at least 2 years in duration.

a) Trueb) False


Reference: LO 05: Summarize the core legal principles relating to collective bargaining.Feedback: Common characteristics of Federal and provincial Labour Legislation include the fact that all jurisdictions require that a collective agreement be in force for at least one year. See Figure 14-6 on p. 503.

21) The first and often most critical stage of the collective bargaining process is preparation for negotiations.

a) Trueb) False


Reference: LO 06: Outline the key steps in negotiating a union contract.Feedback: The collective bargaining process has three overlapping phases, preparation for negotiations being the first and often the most critical stage. P. 508

22) Mutual gains bargaining involves adopting a win-lose attitude.

a) Trueb) False


Reference: LO 06: Outline the key steps in negotiating a union contract.Feedback: The mutual gains bargaining approach moves away from the us-versus-them or win-lose attitude in favour of a win-win approach in which both parties work together to solve common problems. P. 510

23) When negotiating with the union, discussions often start as much as 60 – 90 days before the end of the present contract.

a) Trueb) False


Reference: LO 06: Outline the key steps in negotiating a union contract.Feedback: When negotiating with the union, discussions often start as much as 60 – 90 days before the end of the present contract. P. 509

24) The bargaining stage of negotiations is completed when the agreement is approved by management.

a) Trueb) False


Reference: LO 06: Outline the key steps in negotiating a union contract.Feedback: Negotiations are not complete until the union also approves the proposed agreement. P. 511

25) Either management or the union can file a grievance.

a) Trueb) False


Reference: LO 07: List common techniques to resolve disputes.Feedback: Either management or the union can file a grievance. P. 512

26) An employee may be required to join a union as a condition of employment

a) Trueb) False


Reference: LO 07: List common techniques to resolve disputes.Feedback: According to union security provisions in union –management agreements, if a workplace is a “union shop”, all new workers must join the union shortly after being hired. In An Agency Shop, they may not have to join but they must at least pay dues to the union. P. 514

27) The second step in a typical union management grievance procedure occurs when the chief steward takes the complaint to the department superintendent.

a) Trueb) False


Reference: LO 07: List common techniques to resolve disputes.Feedback: Step 2 of typical steps in a union management grievance procedure occurs when the chief steward takes the complaint to the department superintendent. A written response is required, usually within a week. P. 512

28) All jurisdictions require that collective agreements include a provision for final settlement by mediation.

a) Trueb) False


Reference: LO 07: List common techniques to resolve disputes.Feedback: In their legislation, all jurisdictions provide for conciliation and mediation services, but they are not required in collective agreements. P. 511

29) The union substitution approach examines what unions bring to the employment relationship and then tries to introduce such features into the nonunion workplace.

a) Trueb) False


Reference: LO 08: Describe how unions affect the human resource management environment.Feedback: The union substitution approach examines what unions bring to the employment relationship and then tries to introduce such features into the nonunion workplace. P. 517

30) In nonunion facilities, an implicit objective of many employers is to remain nonunion.

a) Trueb) False


Reference: LO 08: Describe how unions affect the human resource management environment.Feedback: In nonunion facilities, an implicit objective of many employers is to remain nonunion. P. 517

31) When an employer tries to avoid a union by threatening closing or moving the plant or facility, it is call the union depression approach.

a) Trueb) False


Reference: LO 08: Describe how unions affect the human resource management environment.Feedback: When an employer tries to avoid a union by threatening closing or moving the plant or facility, it is called the union suppression approach. P. 517

32) Training programs do little to build cooperation between union and management.

a) Trueb) False


Reference: LO 09: Suggest ways to build union–management cooperation.Feedback: Training programs are another way to build cooperation. If human resource management sponsors training for both union and management, a common understanding of the contract is likely to be brought about. P. 521

33) In an effort to manage costs, a number of employers are looking to more variable pay programs.

a) Trueb) False


Reference: LO 09: Suggest ways to build union–management cooperation.Feedback: In an effort to manage costs, a number of employers are looking to more variable pay programs. P. 520

34) It sounds simple, but human resource specialists can build cooperation through a sincere concern for employees – like settling grievances quickly.

a) Trueb) False


Reference: LO 09: Suggest ways to build union–management cooperation.Feedback: Human resource specialists can also build cooperation through a sincere concern for employees. This concern may be shown through the prompt settlement of grievances. P. 521

35) Cooperation may not be politically attractive to union leaders who see little gain in cooperating with management.

a) Trueb) False


Reference: LO 09: Suggest ways to build union–management cooperation.Feedback: Cooperation may not be politically attractive to union leaders who see little gain in cooperating with management. P. 519

36) Although there has been much research on the topic there is little evidence to indicate that organizational performance is enhanced when labour and management cooperate.

a) Trueb) False


Reference: LO 09: Suggest ways to build union–management cooperation.Feedback: There is growing evidences that organizational performance is enhanced when labour and management cooperate. P. 519

Top of Form

For most union members and industrial relations practitioners, the _____ unions are the most important part of the union structure.

a) localb) craftc) industriald) nationale) international


Reference: LO 01: Describe the structure of Canadian unions.Feedback: For most union members and industrial relations practitioners, the local unions are the most important part of the union structure. P. 496

2) A type of local union composed of workers who possess the same skills or trades is a(n):

a) industrial union.b) craft union.c) local union.d) national union.e) international union.


Reference: LO 01: Describe the structure of Canadian unions.Feedback: A type of local union composed of workers who possess the same skills or trades is a(n) craft union. P. 496

3) Functions of the CLC include:

a) collective bargaining.b) lobbying the federal governmentc) grievance handling.d) organizing and helping local unions get certifiede) Playing a very active role in local union affairs


Reference: LO 01: Describe the structure of Canadian unions.Feedback: The Canadian Labour Congress (CLC) represents many unions in Canada and has five main functions, one of which is influencing public policy at the federal level. P. 497

4) The __________ is the largest union in Canada.

a) Canadian Union of Postal Workersb) United Food and Commercial Workers International Unionc) Public Service Alliance of Canadad) Canadian Auto Workers Unione) Canadian Union of Public Employees


Reference: LO 01: Describe the structure of Canadian unions.Feedback: The Canadian Union of Public Employees (CLC) has 570,000 members which makes it the largest union in Canada. See Figure 14-3 on P. 498.

5) A labour contract that addresses issues such as wages and benefits, hours of work and working conditions is a:

a) collective settlementb) statement of management rights.c) collective agreementd) collective results agreemente) labour contract


Reference: LO 02: Discuss the major reasons why workers join unions.Feedback: A labour contract that addresses a variety of issues such as wages and benefits, hours of work and working conditions, grievance procedures etc. is a collective agreement. P. 494

6) From an industrial relations perspective, workplace conflict is viewed in which of the following ways?

a) Conflict can be constructiveb) Conflict is to be avoided at all costsc) Conflict leads to perilous consequencesd) Conflict stems from poor union management.e) If avoidance tactics are employed, conflict becomes a non-issue


Reference: LO 02: Discuss the major reasons why workers join unions.Feedback: Conflict can be constructive. See Figure 14-1 on P. 493

7) Once the union is organized, it becomes the employees’:

a) “rule book”b) management representativec) bargaining agentd) labour relations boarde) Arbitrator


Reference: LO 02: Discuss the major reasons why workers join unions.Feedback: Once the union is organized, it becomes the employees bargaining agent and the employer is legally obligated to meet with the union and bargain a labour contract. P. 493

8) The idea that conflict stems from poor management is a:

a) Human resources perspectiveb) “pie in the sky” approachc) Industrial relations perspectived) Labour relations board perspectivee) International union perspective


Reference: LO 02: Discuss the major reasons why workers join unions.Feedback: The idea that conflict stems from poor management is a human resource perspective. See Figure 14-1 on P. 493

9) Which industry sector has the highest rate of unionization?

a) Educationb) Financec) Public administrationd) Both education and public administration are the most highly unionized industry sectors.e) Actually, all industry sectors have similar rates of unionization.


Reference: LO 03: Identify conditions that indicate unionization may occur.Feedback: In terms of industry sector, education and public administration were the most highly unionized at 68 per cent, followed closely by utilities (67 per cent). The lowest rates of unionization were in the agricultural (4%), wholesale trade (7%), and food and beverage (8%) sectors. P. 498

10) Which of the following provinces has the lowest rate of unionization?

a) Ontariob) Albertac) Quebecd) Newfoundlande) Saskatchewan


Reference: LO 03: Identify conditions that indicate unionization may occur.Feedback: In comparing unionization across provinces, Newfoundland had the highest rate (37 per cent), followed closely by Quebec and Manitoba (36 per cent) while the lowest union density was in Alberta (22 percent). P. 499

11) Unions are ___ prevalent in ________ companies.

a) less; largerb) more; largerc) more; smallerd) less; manufacturinge) less; social and public service


Reference: LO 03: Identify conditions that indicate unionization may occur.Feedback: Larger workplaces are more likely to be unionized -- about 13% of employees in firms with less than 20 employees were unionized, 30% in firms with 20 to 99 employees, 41% in firms with 100 to 500 employees, and 51 percent in firms with more than 500 employees. P. 499

12) Studies have shown that unions _________ employee turnover and _____ productivity of workers.

a) increase; increaseb) increase; decreasec) decrease; increased) decrease; have no effect one) decrease; decrease


Reference: LO 03: Identify conditions that indicate unionization may occur.Feedback: Studies have shown that unions:

reduce employee turnover (fewer quits): increase tenure with the firm; and raise productivity or output per worker. P. 502

13) Employee behavior that suggests union activity is when:

a) Employees ask for time off b) Employees question company policies and their benefits more often.c) Employees become more passived) Turnover becomes stagnant.e) Turnover decreases.


Reference: LO 04: Explain how a union organizing campaign is carried out.Feedback: One of the signs of union activity is an increase in questions about company policies and benefits. P. 505

14) All of the following are examples of unfair labour practices by management EXCEPT:

a) interfering with the formation of a union.b) coercing an employee to not become a member of a union.c) discriminating against an employee because s/he is a member of a union.d) making a financial contribution to a union.e) Failing to represent employees fairly.


Reference: LO 04: Explain how a union organizing campaign is carried out.Feedback: Failing to represent employee fairly is an unfair labour practice of unions. P. 507

15) When unions are organizing, labour relations boards pay particularly close attention to:

a) The actions of employeesb) The reactions of employeesc) The reactions of competitor unionsd) The actions of employerse) Preparations for negotiation


Reference: LO 04: Explain how a union organizing campaign is carried out.Feedback: When unions are organizing, labour relations boards pay particularly close attention to the actions of employers. P. 505

16) Employers are well advised to ______________ in the wake of a union organizing campaign.

a) hire security guardsb) obtain prudent legal advicec) install security gates around their facilityd) Give out lots of raisese) Implement a lot of promotions into the management ranks


Reference: LO 04: Explain how a union organizing campaign is carried out.Feedback: Employers are well advised to obtain prudent legal advice in the wake of a union organizing campaign. P. 505

17) Which of the following is one of the common core key aspects of Canadian labour law?

a) The right to strike during a lockout during the life of a Collective Agreement.b) The right to decertify a unionc) The right to bargain without legal representation.d) The right to join a unione) The right to impose a lockout during the life of a Collective Agreement.


Reference: LO 05: Summarize the core legal principles relating to collective bargaining.Feedback: The right to join a union is one of the key aspects of Canadian labour law. P. 503

18) All jurisdictions have legislation prohibiting ____________________ by employers and unions

a) unfair labour practices.b) delay tactics in negotiationsc) Contacting a labour relations board during a disputed) Encouraging or threatening to strikee) Voluntary recognition


Reference: LO 05: Summarize the core legal principles relating to collective bargaining.Feedback: All jurisdictions have legislation prohibiting unfair labour practices by employers and unions. P. 503

19) The right of a union to strike is (in most provinces) delayed until:

a) The labour relations board deems it permissible.b) The conciliation process is exhaustedc) The employees are exhaustedd) The employer is exhaustede) The negotiation process is exhausted


Reference: LO 05: Summarize the core legal principles relating to collective bargaining.Feedback: The right of a union to strike, or an employer to lock out employees is (in most provinces) delayed until the conciliation process is exhausted. P. 503

20) In attempting to negotiate a collective agreement, both labour and management have a duty to:

a) Remember their manners when bargaining.b) Treat each other with respect at all times.c) Refrane from use of profanity and other objectionable communication.d) Remember the “golden rule”. e) “bargain in good faith”


Reference: LO 05: Summarize the core legal principles relating to collective bargaining.Feedback: In attempting to negotiate a collective agreement, both labour and management have a duty to “bargain in good faith”. P. 503

21) The first and often most crucial phase of the collective bargaining process is:

a) face-to-face negotiations.b) signing authorization cards.c) compromising.d) preparation for negotiations.e) contract administration.


Reference: LO 06: Outline the key steps in negotiating a union contract.Feedback: The collective bargaining process has three overlapping phases. Preparation for negotiations is the first and often the most critical stage. P. 508

22) Which of the following is NOT a good suggestion to follow in negotiations?

a) start with easy issues.b) negotiate in private.c) find compromises.d) avoid making counterproposals that take into account the needs of other party.e) point out past progress


Reference: LO 06: Outline the key steps in negotiating a union contract.Feedback: When deadlocks occur, several tactics can keep negotiations moving toward a peaceful settlement such as achieving compromise by offering counterproposals that take into account the needs of the other party. P. 509

23) The success face-to-face negotiations largely depends on all of the following EXCEPT:

a) How well the union negotiators have preparedb) How well management has prepared c) How effective follow up activities of contract administration are.d) The bargaining power of each sidee) The skill of negotiators on both sides


Reference: LO 06: Outline the key steps in negotiating a union contract.Feedback: Follow-up activities of contract administration comes after face-to-face negotiations because it is the third phase of the collective bargaining process. P. 508

24) If an employer is powerful enough to force an unacceptable contract on the union negotiating team, which of the following is not an action likely to be taken by union officials or the union membership?

a) Union membership may refuse to ratify the contractb) Union officials may refuse to cooperate with management once the collective agreement goes into

effectc) the union may file unfair labour practice charges

d) Union members may refuse to cooperate with management once the collective agreement goes into effect

e) Union officials and members will adopt a “turn the other cheek” to signal their intentions.


Reference: LO 06: Outline the key steps in negotiating a union contract.Feedback: In the event of being forced into an unacceptable contract, all of the actions here are likely alternatives to be taken by union officials and/or membership except adopting a passive “turn the other cheek” approach. P. 510

25) In most provinces, no strike action is permitted before a _________ has been tried and failed.

a) member voteb) majority decisionc) final offerd) ratification votee) conciliation effort


Reference: LO 07: List common techniques to resolve disputes.Feedback: In most provinces, no strike action is permitted before a conciliation effort has been made and has failed. P 511

26) Though allowed, grievances are rarely filed by:

a) management.b) terminated workers.c) disciplined workers.d) laid-off workers.e) female workers.


Reference: LO 07: List common techniques to resolve disputes.Feedback: While either management or the union may file a grievance when the collective agreement is violated, most workplace decisions are management and therefore most grievances are filed by the union. P. 512

27) _________ poses two potential problems for labour relations practitioners: costs and unacceptable solutions.

a) Mediationb) Union securityc) Arbitrationd) Labour-management cooperatione) Mutual gains bargaining


Reference: LO 07: List common techniques to resolve disputes.Feedback: There is growing concern that the arbitration process is becoming too costly, too slow and too legalistic. P. 513

28) Under a _____ security arrangement, the employer is free to hire anyone they want, but all new employees must join the union within a specified time period.

a) union shopb) just causec) seniorityd) public sectore) contract provision


Reference: LO 07: List common techniques to resolve disputes.Feedback: Under a union shop security arrangement, the employer is free to hire anyone they want, but all new employees must join the union within a specified time period. P. 515

29) The union suppression approach may involve all of the following activities except:

a) Moving or threatening to close a plant or facilityb) fighting union representationc) Providing employees with a “voice” in the workplace to gain cooperation.d) Intimidating workerse) Discriminating against union supporters


Reference: LO 08: Describe how unions affect the human resource management environment.Feedback: Providing employees with a “voice” in the workplace is a union substitution approach , not a union suppression approach. P. 517

30) A 2009 report of a study of HRM practices among Canadian Unions revealed that _______ of union bargaining units use workteams.

a) 28%b) 95%c) 51%d) 12%e) 43%


Reference: LO 08: Describe how unions affect the human resource management environment.Feedback: See Figure 14-13 which illustrates findings of a study of HRM Practices/Programs among Canadian unions in which 28% of union bargaining units indicated they have work teams. P. 518

31) The union substitution approach is _______________ by many HR practitioners, consultants and labour lawyers.

a) advocatedb) avoidedc) ignored) rejected


Reference: LO 08: Describe how unions affect the human resource management environment.Feedback: The union substitution approach is advocated by many HR practitioners, consultants and labour lawyers. P. 518

32) In a 2009 study done by Terry H. Wagar, 95% of union bargaining units indicated they have the following program in their workplace:

a) Profit sharingb) Sexual harassment policyc) Employee Assistance program

d) Union suppression programe) TQM


Reference: LO 08: Describe how unions affect the human resource management environment.Feedback: 95% of union bargaining units reported having a sexual harassment policy. See Figure 14-13 on P. 518.

33) Research data from both employers and unions indicted that a more positive labour climate was associated with all of the following characteristics except:

a) Enhanced service qualityb) Greater customer satisfactionc) Greater employee satisfactiond) Perceptions of higher productivitye) Enhanced product quality


Reference: LO 09: Suggest ways to build union–management cooperation.Feedback: Research using data from both employers and unions indicated that a more positive labour climate was associated with perceptions of higher productivity, enhanced product or service quality, and greater customer or client satisfaction. P. 519

34) In addition to political obstacles, union leaders may resist cooperating with management because they:

a) Mistrust their membershipb) Mistrust managementc) Are usually mistrusted by their membership.d) Have an underlying goal of increasing managerial dominance.e) Have an underlying goal to “stress the system”


Reference: LO 09: Suggest ways to build union–management cooperation.Feedback: In addition to political obstacles, union leaders may mistrust management. P. 520

35) ________________________ is absolutely essential to the success of joint study committees.

a) Union participation and supportb) Management participation and supportc) Employee participation and supportd) Customer participation and supporte) Supervisory participation and support


Reference: LO 09: Suggest ways to build union–management cooperation.Feedback: Union participation and support is absolutely essential to the use and success of joint study committees. P. 521

36) Prior consultation with union leaders is a method of building labour-management cooperation that is used to :

a) Allow management union officials to find solutions to common problems. b) Provide guidance and programs that bring union leaders and managers closer together.c) Defuse problems before they become formal grievances.d) Objectively communicate the intent of union and management bargainers.e) Express sincere concern for employee problems and welfare.


Reference: LO 09: Suggest ways to build union–management cooperation.Feedback: Prior consultation is a method of building labour-management cooperation by defusing problems before they become formal grievances. P. 521

) One of the benefits of a human resource management audit is that it helps align HR goals with organizational strategies

a) TRUEb) FALSE


Reference: LO 01: Discuss the strategic importance of a human resource audit.Feedback: The benefits from a human resource audit are many and include: It helps align the human resource department's goals with larger organizational strategies. P. 531

2) Stimulating uniformity of human resource policies and procedures is another of the benefits of human reousrce audits.

a) TRUEb) FALSE


Reference: LO 01: Discuss the strategic importance of a human resource audit.Feedback: The benefits from a human resource audit are many and include: Stimulating uniformity of human resource policies and procedures. P. 531

3) HR auditing involves 4 major steps, the first of which is to choose a research approach.

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: The first step is to define the scope of the audit. P. 532

4) The scope of an HR audit is limited to the actions of the human resource department’s actions.

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: The scope of an audit extends beyond just the human resource department’s actions. P. 532

5) An audit of employee satisfaction attempts to determine how well employee needs are being met.

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: To learn how well employee needs are being met, an audit team gathers data from workers. P. 534

6) An audit of managerial compliance compares one firm’s (or division’s) HR practices with another firm’s (or division’s) to uncover areas of poor performance.

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: An Audit of managerial compliances is an audit to review how wlel managers comply with HR policies and procedures and labour laws. P. 534

7) Benchmarking is a type of comparative approach to HR audits.

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: The comparative approach typically uses another division or company as a model. Alternatively, the benchmarks offered by an outside expert or general industry standards may be used as indices against which the department’s or firm’s performance is measured and compared. P. 536

8) A balanced scorecard approach takes into consideration all stakeholders in the firm.

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: More recently, organizations have introduced a balanced scorecard approach which allows managers to look at a business from multiple perspectives thus minimizing the risk of overlooking important stakeholders or activity. P. 537

9) Statistics on absenteeism patterns and turnover figures are examples of safety and health records that may be analyzed as part of an HR audit.

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: Statistics on absenteeism patterns and turnover figures are examples productivity records that may be analyzed as part of an HR Audit. P. 540

10) One of the major areas covered in an HR audit is the HRIS.

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: Figure 15-3 lists the major areas HR Audits cover. As shown in the figure, an audit should focus on the human resource management information system, staffing and development, and organizational control and evaluation. P. 534-535

11) The simplest form of research when performing an audit is the management-by-objectives approach.

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: Of the three approaches to conducting human resource audits, the comparative approach is the simplest. P. 536.

12) The audit team may review a sample of employment, compensation, discipline, and employee appraisal forms as part of a compliance approach.

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: In the compliance approach, often the audit team reviews a sample of employment, compensation, discipline, and employee appraisal forms to ensure that field offices and operating managers comply with internal rules and legal regulations. P. 537

13) When performing an audit, one of the least costly data gathering techniques is an interview.

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: Many human resource departments supplement interviews with questionnaires and surveys. These tools are used because interviews are time-consuming, costly, and usually limited to only a few people. P. 538

14) Questionnaires may lead to more candid answers than face-to-face interviews.

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: Through surveys of employees, a more accurate picture of employee treatment can be developed. Also, questionnaires may lead to more candid answers than face-to-face interviews.

15) Audits are necessary because they are forward-looking processes.

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: Audits are necessary, but they are backward-looking. They uncover only the results of past decisions. P. 543

16) Human resource research experiments have few, if any, drawbacks

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: Experimentation does have some drawbacks. Many managers are reluctant to experiment with only some workers because of morale problems and potential dissatisfaction among those who were not selected. Those involved may feel manipulated. And the experiment may be confounded by changes in the work environment or simply by the two groups talking with each other about the experiment. P. 543

17) Human resource managers must anticipate future developments inside and outside the organization in order to be able to respond proactively to new challenges.

a) TRUEb) FALSE


Reference: LO 03: Discuss how a human resource department should prepare for the future.Feedback: Without a future orientation, the human resource department becomes reactive, not proactive, and therefore human resource departments need to develop a future orientation and constantly scan their professional and social environment for clues about the future. P. 544

18) The audit report is a comprehensive description that is focused primarily on ineffective HR practices.

a) TRUEb) FALSE


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: The audit report is a comprehensive description of human resource activities, which includes both recommendations for effective practices and recommendations for improving practices that are ineffective. A report's recognition of both good and bad practices is evidence of a more balanced approach and encourages acceptance of the report. P. 543

19) Encouraging innovation is one of the challenges facing human resource managers in the immediate future.

a) TRUEb) FALSE


Reference: LO 03: Discuss how a human resource department should prepare for the future.Feedback: HR managers have to work closely with line managers to create a work setting that facilitates continuous innovation and intrapreneurship. See Figure 15-7 on p. 545

20) Employee rewards are one of the areas where Human Resources professionals are likely to face some challenges in the future.

a) TRUEb) FALSE


Reference: LO 03: Discuss how a human resource department should prepare for the future.Feedback: When the recession is over and the economy returns to a steady state, a strong demand for skilled workers and tradespersons may cause “wage compression” and offer of non-cash compensation to attract scarce talents, making employee rewards one of the challenges facing human resources managers in the immediate future. See Figure 15-7 on P. 545

) The benefits from a human resource audit include all of the following, EXCEPT:

a) an HR audit helps align the human resource department’s goals with organizational strategies.b) an HR audit helps ensure timely compliance with legal requirements.c) an HR audit increases human resource costs through more effective procedures.d) an HR audit uncovers critical human resource problems and possible solutions.e) an HR audit stimulates uniformity of human resource policies and procedures.


Reference: LO 01: Discuss the strategic importance of a human resource audit.Feedback: A human resources audit is beneficial because it reduces human resource costs through more effective procedures. P. 531

2) The last major step in conducting an HR audit is:

a) define the scope of the results.b) data analysis and report preparation.c) select data collection method.d) choose the research approach.e) none of the above.


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: The last major step in conducting an HR audit is analysing the data, evaluating it and preparing the report containing findings and recommendations. P. 532

3) Audits of HR practices to ensure adherence to human rights legislation require use of a(n):

a) proactive approach.b) ethical approach.c) comparative approach.d) compliance approach.e) management-by-objectives approach


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: A compliance approach reviews past human resource practise to determine if they conforom to formally stated policies and legally defensible standards, which would include human rights legislation. P. 537

4) Using ________ allows an audit team to control for the effects of extraneous factors.

a) surveysb) record analysis

c) field experimentsd) interviewse) Attitude surveys


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: Field experiment allow the human resource department to compare an experimental and a control group under realistic conditions, and to control for the effects of external factors. See the example provided about training of elementary school teachers on p. 543

5) The scope of most HR audits does not include:

a) a financial audit.b) an audit of employee satisfaction.c) an audit of managerial compliance.d) an audit of alignment with corporate strategy.e) Just the human resource department


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: A financial audit is not included in the scope of an HR Audit, which would be conducted by the finance department. P. 533

6) Critical concerns to be answered by employee attitude surveys include all of the following, EXCEPT:

a) employee attitudes about supervisors.b) employee attitudes about their jobs.

c) perceived effectiveness of the HR department.d) Shareholder attitudes about employeese) How employees view their manager


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: One popular approach is an employee attitude survey. These multipage paper-and-pencil tests are used to learn how employees view their manager, their job, and the human resource department. P. 540

7) The MBO audit approach creates specific ________ against which ______ can be measured.

a) goals; complianceb) objectives; compliancec) objectives; performanced) practices; performancee) practices; compliance


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: The management-by-objectives approach (MBO) creates specific objectives against which performance of individual managers and the human resource department can be assessed on various dimensions critical for successful people management. P. 537

8) HR audit data collection methods include all of the following, EXCEPT:

a) interviews.b) audit reports.c) records analysis.d) surveys.e) experiments


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: An audit report is not a method of data collection, but rather the result of the process. Once the data is collected, in order to make the audit information useful and directive, it is compiled into an audit report. P. 543

9) Which of the following is not a potential problem with human resource experiments?

a) Realismb) Dissatisfaction among those who were not selected.c) Informal discussions between work groups that impact results.d) Morale problemse) Those involved may feel manipulated.


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: All of the issues listed here except realism is not a problem with human resources experiments. P. 543

10) A(n) ___________ is conducted with a departing employee to gauge his or her impressions of a firm’s strengths and weaknesses, especially relating to HR systems and policies.

a) attitude surveyb) records analysisc) exit interviewd) human resources experimentse) survey.


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: Another useful source of information is the exit interview. Exit interviews are conducted with departing employees to learn their views of the organization. P. 538

11) Benchmarking is a(n):

a) compliance approach.b) management-by-objectives approach.c) productivity approach.d) comparative approach.e) Balanced approach


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: Comparative approaches typically use another division or company as a model, and alternatively the benchmarks offered by an outside expert or general industry standard may be used as indices against which the department’s or firm’s performance is measured and compared. P. 536

12) Benchmarking does not use:

a) another division as a model.b) another company as a model.c) general industry standards as indices for measurement and comparisond) consultant’s or outside expert’s recommended indices for measurement and comparison.

e) Exit interviews from departing employees.


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: Benchmarking does not use exit interviews. It does however use another division or company as a model, or an expert or general industry standard may be used as indices against which the department’s or firm’s performance is measured and compared. P. 536

13) The _____ approach allows managers to look at a business from multiple perspectives thus minimizing the risk of overlooking important stakeholders or activities.

a) records analysisb) management-by-objectivesc) complianced) balanced scorecarde) comparative


Reference: LO 02: Describe the steps and research tools used in a human resource audit.Feedback: The balanced scorecard approach allows managers to look at a business from multiple perspectives thus minimizing the risk of overlooking important stakeholders or activity. P. 537

14) A comprehensive description of HR activities including commendation for effective practices and recommendations for improving practices is the:

a) grievance record report.b) audit report.c) compensation report.d) compliance report.e) exit interview report.


Reference: LO 03: Discuss how a human resource department should prepare for the future.Feedback: The audit report is a comprehensive description of human resource activities, which includes both recommendations for effective practices and recommendations for improving practices that are ineffective. A report's recognition of both good and bad practices is evidence of a more balanced approach and encourages acceptance of the report. P. 543

15) Which of the following is not a challenge facing human resource managers in the immediate future?

a) Early retirementb) Integrating immigrants into the organizationc) Portable pensionsd) Protecting employee privacye) Encouraging innovation


Reference: LO 03: Discuss how a human resource department should prepare for the future.Feedback: The decline in birth rate coupled with longevity means that the average age of Canadian population and the workforce are rising and thuse accommodating early retirement is being replaced by issues such as ergonomic needs of an older workforce. 545.

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