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) TRUE
b) 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) TRUE
b) FALSE
The correct answer is a.
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) TRUE
b) FALSE
Feedback: Other objectives of compensation are to reward desired behaviour and to control costs. P. 334
4) Compensation objectives are not rulesthey are guidelines.

a) TRUE
b) FALSE

Feedback: Compensation objectives are not rulesthey are guidelines. P. 335
5) Employees physiological and security needs are primarily met from their absolute levels of pay.
a) TRUE
b) 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) TRUE
b) 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) TRUE
b) 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) TRUE
b) FALSE

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) TRUE
b) FALSE
Feedback: A point system evaluates the criticalalso called compensablefactors 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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) 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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) 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) TRUE
b) FALSE
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) TRUE
b) FALSE
equal value.
Feedback: The gender wage gap exists in part because women have traditionally found work in lowerpaying 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) TRUE
b) FALSE
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) TRUE
b) 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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) 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) TRUE
b) 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) TRUE
b) 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 itthough to their great advantage. P.
356
30) One component of a total reward system is respect and or prominence due to work.
a) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE

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) TRUE
b) 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) TRUE
b) FALSE
Feedback: The common year-end bonus does little to make individuals aware of any performance-reward
connection. P. 358
35) An individuals motivation to perform is strongly influenced by the consequences of missing set
objectives.
a) TRUE
b) FALSE
Feedback: An individuals 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) TRUE
b) FALSE

Feedback: The compensation principles originate from two sources: the overall strategy of the
organization and its corporate values. P. 359
1160
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

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:
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.

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.

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

Feedback: Compensation objectives are not rulesthey 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.

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 organizations ___________.

a) Corporate mission
b) human resources
c) operations personnel
d) corporate objectives
e) corporate vision

programs.
Feedback: Compensation programs help to maintain an organizations 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

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.

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.

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

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

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.

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

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

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.

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

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

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, womens job choices in our culture have been determined by:
a) Male dominance in our culture
b) Gender dominance in our culture
c) Societys expectations about the role of women in our culture
d) Mens expectations about the role of women in our culture
e) Womens 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 companys 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 dont 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 companys
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

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 20012002, 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 employees 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 objectives
b) Societal, organizational, and employee objectives
c) Societal, organizational and employer objectives
d) Internal and external objectives
e) Compensation and business objectives.
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 companys

compensation system, currently approaching the ________ mark of annual payroll
expenses, versus 15% in the early 1950s.
a) 25 percent
b) 35 percent
c) 50 percent
d) 60 percent
e) 65 percent
Feedback: Benefit programs have become a very significant part of a companys
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 Assistance
c) Direct Compensation
d) Fringe benefits
e) Employee extras
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-provid

ded benefits and services because of:
a) Lower costs and availability
b) Personal need
c) High dental and medical costs.
d) Ease of administration of expenses.
e) A natural desire to maximize compensation.
Feedback: Employees usually seek employer-provid
ded 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 requirements
c) Reduce turnover
d) Minimize overtime costs
e) 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 earnings
b) Personal savings
c) Monthly paycheques
d) Employers
e) Families of origin
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 individuals
b) Self-employed individuals
c) Terminated individuals
d) Landed immigrants
e) Part time employees
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.
Feedback: When the new Employment Act became fully implemented in 20012002,
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 employees 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 benefits
b) Federal and provincial holidays
c) Employee security benefits
d) Paid time-off benefits
e) Various employee services
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 plan
e) A Pre-Layoff Plan.
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 time
b) Paid time-off benefits
c) Salary continuation plans
d) Health related insurance
e) Severance Pay
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.
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) Proactive
b) Reactive
c) Collaborative
d) Cooperative
e) Flexible
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 Canada
b) a corporate pension society
c) an arrangement administered by the Government of Canada or a provincial
government
d) 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 Canadas 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 Canadas 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 outcomes
c) These plans are strictly regulated.
d) Employees know in advance what their retirements benefits will be.
e) Such plans encourage retention of employees.
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
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 Act
c) The Ontario Pension Benefits Standards Act.
d) The Canadian Pension Act.
e) The All Provincial Pension Benefits Act.

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 turkey
b) Health Benefits
c) Company cars (if also used for private purposes)
d) Stock options
e) 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 savings
e) To compare employee claim habits to other Canadian employers.
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) funding
b) Upper level management support
c) Planning on the part of human resources
d) Concern for the impact of demographic on design of benefits.

e) employee involvement
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)?
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 firms own benefit and service plans
d) Utilize compensation consultants.
e) Be concerned about reducing accidents.

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 common
b) 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 benefits
e) 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
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.
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 advice
b) Counselling and special assistance
c) Additional funds for nursing assistants
d) More holidays
e) Sabbatical leaves for managers
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

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

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

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

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 publication
b) grapevine
c) e-mail
d) employee handbooks
e) all of the above are methods of downward communication
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 systems
b) grapevine communications
c) manager-employee meetings
d) attitude surveys
e) in-house complaint procedures
settings.
Feedback: To lessen the burden of "going over the boss's head," some organizations have installed inhouse complaint procedures. P. 398
3) Which of the following is a type of alternative dispute resolution program?

a) open door policy
b) mediation
c) moderation
d) Both open door policy and mediation
e) Both mediation and moderation
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.
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 situation
c) Follow the rules; cope with the situation
d) Forgive themselves; forgive others
e) Work harder; worker smarter
Feedback: counselling
The 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 psychologists
c) 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.
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 employees 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 facilitiees
b) An employee assistance program (EAP
c) Access to Marriage counseling
d) Access to Addiction counseling
e) Access to Marriage or addiction 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 restructuring
d) 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.
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
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 everythingas you go.
d) Investigate everything that might influence the issue.
e) Follow your hunches and dont allow yourself to be discouraged from doing so.
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 discipline
b) Corrective discipline
c) Progressive discipline
d) Both preventive and corrective discipline
e) Both corrective and progressive discipline
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 sharing
b) quality of work life
c) employee self-service
d) total quality management
e) 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

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 individuals perceptions and behaviours in the workplace.
a) True
b) False

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 individuals values, expectations, behaviours and experiences, but they are
more variable in their impact on individual behaviours.
a) True
b) False

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

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 todays workplace, the most valuable parts of the firms 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

individuals 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; helps
b) umbrella policy; stunts
c) glass ceiling; stunts
d) umbrella policy; helps
e) none of the above
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) ethnicity
c) status.
d) language.
e) Income level
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 language
b) Income
c) Family status
d) Hobbies
e) Mental abilities
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) age
b) education.
c) gender
d) religion
e) sexual orientation
Feedback: Education is a secondary dimension of diversity. See discussion and Figure 12-1 on P. 427428
5) Which of the following is NOT a factor that makes diversity management strategically important?
a) importance of human capital
b) diversity as a competitive advantage
c) paradigm shift
d) changing workforce
e) decreasing role of work teams

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 employees
b) 56 percent of employers
c) 25 per cent of senior executives
d) 56 percent of shareholders
e) 75 percent of immigrants
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 Europe
b) East Asia, South Asia, Latin America, and Africa.
c) East Asia, Asia, South America, and South Africa.
d) The United States, China and India
e) East and South Asia, South America, and India
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 paradigm
b) An enlightened view of management
c) A new paradigm
d) A realistic view of diversity
e) A North American view

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 priorities
c) 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 creativity
b) Valuing differences
c) Devaluing individuals
d) Devaluing culture
e) 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) awareness
b) skill-building
c) mentoring
d) Coaching
e) 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 firms
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
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 half
b) nearly half; fewer than two-thirds
c) Nearly two thirds; less than ten percent
d) Nearly half; less than ten per cent
e) Nearly eighty percent; fewer than fifteen percent
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) expatriate
b) host country national
c) third country national
d) home worker
e) 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) expatriate
b) host country national
c) third country national
d) Valued employee
e) Foreign national worker
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) age
e) Technical orientation
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 ones 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
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 HQ
b) lack of knowledge about job openings.
c) assignments located in less-developed areas.
d) language
e) Having a spouse who does not work outside the home.
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.
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.
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) TRUE
b) 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) TRUE
b) FALSE
c) Section 141 of the Canada Labour Code (Part II) details that (1)
and safety.
Feedback: A safety officer may, in the performance of the officers 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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) 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) TRUE
b) FALSE
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) TRUE
b) 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) TRUE
b) FALSE
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) TRUE
b) FALSE
Feedback: An employee is most likely to injure his or her back, while injuries to
ones 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) TRUE
b) 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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) 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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) 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) TRUE
b) FALSE
Feedback: Evidence from the United States indicates that violence is the thirdhighest 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) TRUE
b) FALSE
c) 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
Feedback:
23) Employers are required by law to use ergonomics (human factors engineering)
in the design and operation of their workplaces.
a) TRUE
b) FALSE
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) TRUE
b) FALSE
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 hardhats
e) Tell anyone who will listen
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.
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 risk
b) obsolete; careless worker model
c) current; careless worker model
d) obsolete; assumption of risk
e) obsolete; shared responsibility model
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.
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 model
b) Shared Worker model
c) Careless responsibility model
d) Assumption of responsibility model
e) Management responsibility model
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) Finger
b) Leg
c) Shoulder
d) Back
e) Hand
and safety issues.
Feedback: An employee is most likely to injure his or her back, while injuries to
ones 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 conditions
c) Careless employees; uncaring supervisors
d) Unsafe employee behavior; untrained supervisors
e) Untrained employees; untrained supervisors
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 production
b) Recruiting and selecting new employees
c) Lost wages and disability compensation
d) Training new employees
e) Damage to facilities and equipment
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) 10.5
b) 5.5
c) 6.6
d) 7.7
e) 7.5
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 radiation
c) Exposure to harmful toxic substances.
d) Repetitive strain, stress, over-exertion/fatigue and back injuries.
e) Exposure to natural organisms like bacteria, viruses etc.
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.
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 work
b) Accident procedures
c) Benefits policies and procedures
d) Protective equipment
e) Material and chemical hazards
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 job
b) Sleepiness and not eating properly
c) Substance abuse
d) Poor driving habits
e) High divorce rates
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 ratings
b) Five to seven; experience ratings
c) Three to five; accident rates
d) Five to seven; accident rates
e) Two to four; experience ratings
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 Ontario
d) The crash of a company plane which seriously injured several senior
management people.
e) The fatality of an employee in Quebec
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 companys best defence is
__________________,
a) An excellent defense lawyer.

b) Studied avoidance of the topic.
c) Due diligence
d) A huge insurance policy
e) A strong presence on the witness stand.
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 cancer
c) workplace injuries and cancer
d) cancer
e) Cardiovascular disease, workplace injuries, cancer and musculoskeletal
disorders.

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) Burnout
b) Engaged
c) Presenteeism
d) Risk factor
e) Curative
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.
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 infections
c) off-duty accidents.
d) ergonomic disorders.
e) slips and falls.
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) Ergnonomics
b) Sick building syndrome
c) Workplace security and Workplace violence
d) AIDS in the workplace
e) Health and Safety Committees
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 injury
b) CTD and OS
c) Overexertion and RSI
d) OS and MSI
e) Lower back injury and lifting injuries
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) repetitivestrain 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.
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 AIDS
b) Present facts on HIV
c) Address personal concerns about AIDS in the workplace
d) Address personal concerns about cancer in the workplace.
e) Encourage empathy for those with AIDS
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) True
b) 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) True
b) False
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) True
b) False
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) True
b) False
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) True
b) False
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) True
b) False
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) True
b) 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) True
b) False
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) True
b) 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) True
b) False
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) True
b) False
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) True
b) False
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) True
b) 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) True
b) False
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) True
b) False
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) True
b) False
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) True
b) 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
a) True
b) False
Feedback: Groups of employees in huddled conversations that end when a manager walks by can be an
19) It is legal for a union to strike during the life of a contract.

a) True
b) False
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) True
b) False
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) True
b) 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) True
b) False
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) True
b) False
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) True
b) False
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) True
b) 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) True
b) False
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) True
b) False
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) True
b) False
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) True
b) 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) True
b) False
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) True
b) False
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) True
b) False
Reference: LO 09: Suggest ways to build unionmanagement 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) True
b) False
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) True
b) False
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) True
b) False
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) True
b) False
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) local
b) craft
c) industrial
d) national
e) international

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.
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 government
c) grievance handling.
d) organizing and helping local unions get certified
e) Playing a very active role in local union affairs
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 Workers
b) United Food and Commercial Workers International Union
c) Public Service Alliance of Canada
d) Canadian Auto Workers Union

e) Canadian Union of Public Employees
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 settlement
b) statement of management rights.
c) collective agreement
d) collective results agreement
e) labour contract
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 constructive
b) Conflict is to be avoided at all costs
c) Conflict leads to perilous consequences
d) Conflict stems from poor union management.
e) If avoidance tactics are employed, conflict becomes a non-issue
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 representative
c) bargaining agent
d) labour relations board
e) Arbitrator
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 perspective
b) pie in the sky approach
c) Industrial relations perspective
d) Labour relations board perspective
e) International union perspective
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) Education
b) Finance
c) Public administration
d) Both education and public administration are the most highly unionized industry
sectors.
e) Actually, all industry sectors have similar rates of unionization.
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) Ontario
b) Alberta
c) Quebec
d) Newfoundland
e) Saskatchewan
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; larger
b) more; larger
c) more; smaller
d) less; manufacturing
e) less; social and public service
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; increase
b) increase; decrease
c) decrease; increase
d) decrease; have no effect on
e) decrease; decrease
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 passive
d) Turnover becomes stagnant.
e) Turnover decreases.
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.
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 employees
b) The reactions of employees
c) The reactions of competitor unions
d) The actions of employers
e) Preparations for negotiation

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 guards
b) obtain prudent legal advice
c) install security gates around their facility
d) Give out lots of raises
e) Implement a lot of promotions into the management ranks
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 union
c) The right to bargain without legal representation.
d) The right to join a union
e) 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 negotiations
c) Contacting a labour relations board during a dispute
d) Encouraging or threatening to strike

e) Voluntary recognition
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 exhausted
c) The employees are exhausted
d) The employer is exhausted
e) The negotiation process is exhausted
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
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.
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
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 prepared
b) How well management has prepared
c) How effective follow up activities of contract administration are.
d) The bargaining power of each side
e) The skill of negotiators on both sides
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 contract
b) Union officials may refuse to cooperate with management once the collective
agreement goes into effect
c) 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.
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 vote
b) majority decision
c) final offer
d) ratification vote
e) conciliation effort
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.

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) Mediation
b) Union security
c) Arbitration
d) Labour-management cooperation
e) Mutual gains bargaining
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 shop
b) just cause
c) seniority
d) public sector
e) contract provision
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 facility
b) fighting union representation
c) Providing employees with a voice in the workplace to gain cooperation.
d) Intimidating workers
e) 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%
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) advocated
b) avoided
c) ignore
d) rejected
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 sharing
b) Sexual harassment policy
c) Employee Assistance program
d) Union suppression program
e) TQM
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 quality
b) Greater customer satisfaction
c) Greater employee satisfaction
d) Perceptions of higher productivity
e) Enhanced product quality
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 membership
b) Mistrust management
c) Are usually mistrusted by their membership.
d) Have an underlying goal of increasing managerial dominance.
e) Have an underlying goal to stress the system

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 support
b) Management participation and support
c) Employee participation and support
d) Customer participation and support
e) Supervisory participation and support
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 labourmanagement 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.
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) TRUE
b) 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) TRUE
b) FALSE
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) TRUE
b) 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 departments actions.
a) TRUE
b) FALSE
Feedback: The scope of an audit extends beyond just the human resource departments actions. P. 532
5) An audit of employee satisfaction attempts to determine how well employee needs are being met.
a) TRUE
b) FALSE
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 firms (or divisions) HR practices with another firms
(or divisions) to uncover areas of poor performance.
a) TRUE
b) FALSE
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) TRUE
b) FALSE
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 departments or firms performance is measured and compared. P. 536
8) A balanced scorecard approach takes into consideration all stakeholders in the firm.
a) TRUE
b) FALSE
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) TRUE
b) FALSE

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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) 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) TRUE
b) FALSE
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) TRUE
b) FALSE
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) TRUE
b) FALSE
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 departments 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.
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.
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
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) surveys
b) record analysis
c) field experiments
d) interviews
e) Attitude surveys
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
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 employees
e) How employees view their manager
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; compliance
b) objectives; compliance
c) objectives; performance
d) practices; performance
e) practices; compliance
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
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) Realism
b) Dissatisfaction among those who were not selected.
c) Informal discussions between work groups that impact results.
d) Morale problems
e) Those involved may feel manipulated.
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 firms
strengths and weaknesses, especially relating to HR systems and policies.
a) attitude survey
b) records analysis
c) exit interview
d) human resources experiments
e) survey.
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
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 departments or firms 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 comparison
d) consultants or outside experts recommended indices for measurement and comparison.
e) Exit interviews from departing employees.

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
departments or firms 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 analysis
b) management-by-objectives
c) compliance
d) balanced scorecard
e) comparative
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.
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 retirement
b) Integrating immigrants into the organization
c) Portable pensions
d) Protecting employee privacy
e) Encouraging innovation
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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Assess your understanding of this chapter.

4) Compensation objectives are not rulesthey are guidelines.

The correct answer is a.

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

Reference: LO 03: Describe how wages and salaries are determined.

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

Reference: LO 06: Evaluate the advantages and disadvantages of incentive systems.

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

Reference: LO 07: Explain the major approaches to group incentive plans.

Reference: LO 08: Define total compensation.

The correct answer is b.

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

d) Rewriting pay guidelines

e) Ignoring pay rules altogether

The correct answer is b.

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

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.

3) The one compensation objective which overrides all other compensation

b) To maintain legal compliance

c) To retain present employees

d) To reward desired behavior

e) To further administrative and operational efficiency.

The correct answer is b.

Reference: LO 01: Explain the objectives of effective compensation management.

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

d) guidelines; Canadian law

The correct answer is a.

The correct answer is e.

b) Improved employee satisfaction and cost control

c) Improved employee motivation and cost control.

e) Improved employee performance, motivation and satisfaction.

The correct answer is e.

7) Compensation programs help to maintain an organizations ___________.

The correct answer is b.

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

b) a wage and salary survey.

The correct answer is a.

Reference: LO 03: Describe how wages and salaries are determined.

The correct answer is c.

e) Key job approach.

The correct answer is d.

The correct answer is c.

The correct answer is d.

13) Internal equity is determined through:

b) balancing market forces.

c) employment equity act.

The correct answer is d.

14) Wage and salary surveys determine:

b) point values for jobs.

c) wages in relevant labour markets.

d) national averages for wages.

e) total labour costs for the company

The correct answer is c.

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

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

4) Compensation objectives are not , they are _____.

20) Without _, a company cannot attract the __ necessary to

26) ______is the accomplishment of assigned tasks; _ is the