Chapter 1: Strategic Human Resource Management

Multiple Choice Questions

1.

Choose the most correct from the following:

(a) the focus of human resource management (HRM) is on managing people within
the employer-employee relationship
(b) HRM involves the productive utilisation of people in achieving the organisations
objectives and the satisfaction of individual employee needs
(c) both (a) and (b)
(d) HRM is simply a set of activities relating to the coordination of an organisations
human resources

2.

HR managers have not been accepted as full strategic business partners because:
(a) they are concerned only with issues of employee welfare
(b) they often fail to understand the organisations business and align human resource
strategies, policies and practices with business strategies
(c) they are primarily concerned with developing people skills and pay little, if any,
attention to the bottom line
(d) they perform activities that are not considered to be essential to the success of the
business

3.

Many organisations have disbanded and distributed HRM functions throughout the
organisation due to all of the following except:
(a)
(b)
(c)
(d)

4.

funding cuts and financial losses

restructuring and takeovers
computerisation of personal records
lack of value-added

For HRM activities to add value to an organisation they must:

(a) improve employee loyalty, responsibility and commitment
(b) be low cost but high return
(c) focus on increasing profits through increasing productivity

(d) respond to the demands of the shareholders

5.

When pursuing a career in HRM there are three broad areas of focus and speciality.
Which of the following is not one of them.
(a)
(b)
(c)
(d)

6.

To successfully fulfil the role of a strategic partner an HR professional must:

(a)
(b)
(c)
(d)

7.

demonstrate an ability to ask the right questions

have the ability to translate business strategy into action
put the needs and demands of management above those of the employees
both (a) and (b)

In a situation where the HR manager is supporting the need for employees to be

given additional resources to allow them to perform their job more successfully the
HR manager is fulfilling the role of:
(a)
(b)
(c)
(d)

8.

pragmatic generalists
employee welfare officers
functional specialists
strategic partners

change agent
employee advocate
resource allocator
employee champion

Which of the following is not linked to the results of a performance appraisal:

Fac
(a)
(b)
(c)
(d)

9.

rewards
training and development
employee placement
employee responsibilities

Employee motivation and behaviour can be positively influenced by:

(a) social interaction on the job
(b) cash rewards

(c) skill and knowledge transferability

(d) management commitment to employee welfare
10. An organisation that has a culturally diverse membership can reduce mistakes
caused by misunderstanding if they:
(a)
(b)
(c)
(d)

learn to manage diversity

introduce better induction and orientation programs
have clear equal opportunity policies
improve their communication

11. The purpose of an organisations strategy is to:

(a) communicate the CEOs ambitions to the organisation members
(b) provide the shareholders with an understanding of how their investment is being used
and protected
(c) maintain a competitive advantage by capitalising on the strengths and minimising the
weaknesses of an organisation
(d) identify and counter the strengths of the competition
12. Johnson and Johnson, and Sony frequently change their business strategies and
practices in response to changes in the business environment, but maintain stable:
(a)
(b)
(c)
(d)

codes of ethics
mission statements
goals and objectives
core values

13. The process whereby managers establish an organisations long-term direction, set
specific performance objectives, develop strategies to achieve these objectives in the
light of all the relevant internal and external circumstances and undertake to execute
the chosen action plans is known as:
(a)
(b)
(c)
(d)

performance management
strategic management
operations management
service management

14. Hewlett-Packard exists to make technical contributions for the advancement and
welfare of humanity. Jones and Kahaner argued that such statements are the
operational, ethical and financial guiding lights of companies. By what name are
such statements more commonly known?
(a)
(b)
(c)
(d)

codes of ethics
value statements
mission statements
business strategies

15. Which of the following would not be analysed during an examination of an

organisations external environment:
(a)
(b)
(c)
(d)

import tariffs
exchange rates
technological development
competition

16. The aim of conducting a SWOT analysis is to:

(a)
(b)
(c)
(d)

Und
identify the organisations strengths, weaknesses, opportunities and threats
select the strategy that gives the best alignment or fit between the external and internal
environments
select a strategy that allows the organisation to maintain its market position given
increases in competition
aid the managing directors in determining a course of action that most closely fits the
articulated mission statement

17. The ability of management to help the organisation respond to changing

circumstances through the development of its objectives and polices requires them
to be:
(a) proactive
(b) reactive
(c) selective

(d) responsive

18. Which of the following is not considered under an analysis of an organisations

internal environment:
(a)
(b)
(c)
(d)

product quality
employee skills
shortages of skilled labour
customer service

19. The extent to which an organisation is achieving its strategic objectives can be
determined by examining:
(a)
(b)
(c)
(d)

the yearly profit margin

the value of shares
the frequency with which objectives have to be changed
the implementation of plans and the results achieved

20. The business strategy adopted by the National Australia Bank and Westpac, which
involved acquisitions and mergers, is known as a(n):
(a)
(b)
(c)
(d)

expansion strategy
competitive takeover
growth strategy
aggressive strategy

21. The strategy that seeks to improve performance by cost cutting, downsizing or
re-engineering is known as a(n):
(a)
(b)
(c)
(d)

retrenchment strategy
stability strategy
consolidation strategy
financial strategy

22. Organisations are more likely to have a HR strategic plan if they are:

(a)
(b)
(c)
(d)

stable
retrenching
expanding
consolidating

23. Which of the following is not a pressure demanding a broader, more comprehensive
and more strategic perspective with regard to an organisations human resources?
(a) increasing international competition which is creating a need for improved human
productivity
(b) greater government involvement in HRM through policies such as EEO/AA and
superannuation
(c) increasing education of the workforce that is resulting in changes to employee
capabilities
(d) stable values and attitudes of the workforce
24. Competitors can easily copy all of the following except:
(a)
(b)
(c)
(d)

technology
people
markets
products

25. HRM strategy aims to enable the organisation to achieve its objectives by all of the
following except:
(a) seeing that all concerned in strategic planning appreciate the human resource
implications of their proposals and understand the potential human resource constraints
if action is not taken
(b) achieving a close match between corporate business objectives and the objectives of
the human resource function
(c) maintaining the lowest cost workforce relative to the organisations competitors
(d) assessing the performance requirements needed to reach the companys goals and
deciding the lines along which the requirements should be satisfied
26. HRM strategic planning

(a) clarifies for the people in an organisation how HRM intends to contribute, what
methods it will use, and what performance standards it is aiming for
(b) is concerned only with ensuring that the people requirements of the organisation can be
met
(c) establishes clear guidelines for the implementation of workplace relations legislation
(d) is the process used by an organisation to monitor and duplicate the human resources of
competitor organisations
27. An organisation with a business strategy that includes profit improvement might
pursue which of the following set of activities:
(a)
(b)
(c)
(d)

reduced labour costs through improved employee performance

increased expenditure on product development
investment in more advanced technology to increase output
reduced expenditure on employee development programs

28. Organisational objectives to which HRM can be linked are:

(a)
(b)
(c)
(d)

customer service
organisational effectiveness
strategy development
both (a) and (b)

29. HRM objectives and activities must be:

(a)
(b)
(c)
(d)

easily understood and achievable

designed to favour management, not employee, opinions
measurable and have a predetermined timeframe
a reflection of the development of the competition

30. Which of the following is not one of the major purposes of a HRM policy?
(a) to reassure employees that they will be treated fairly and objectively
(b) to ensure that the organisation complies with all relevant government legislation and
requirements
(c) to help managers make quick and consistent decisions

(d) to give managers the confidence to resolve problems and to defend their decisions
31. According to Stones diagnostic approach to human resource management, HRM
outcomes are:
(a)
(b)
(c)
(d)

acquisition and departure of human resources

employee commitment and productivity
organisation structure and organisation culture
job analysis and employee recruitment

32. To achieve the best alignment between the organisations strategy and the
organisation environment all of the following should be undertaken, except:
(a)
(b)
(c)
(d)

setting clear objectives

evaluating performance
examine internal and external influences
review of global economic issues

33. Organisations that adopt HRM strategies and practices consistent with the demands
of their internal and external environments should:
(a) attract a group of employees who are satisfied with their jobs and committed to the
organisation
(b) be aware of the intended moves of the competition before they take place
(c) outperform organisations that have less well-matched strategies and practices
(d) experience less internal conflict and indecision when solving major HR problems
34. Which of the following is not a major influence that exists outside of an
organisation, but has a significant impact upon an organisation?
(a)
(b)
(c)
(d)

demographics
technology
strategy
legal regulations

35. Job design, employee orientation and training, health and safety, industrial relations,

and corporate image can be directly or indirectly affected by:

(a)
(b)
(c)
(d)

government and community concerns regarding environmental issues

number of workers employed by an organisation at any given time
the nature of human resources available to an organisation
the stability of the national economy

36. An HR manager considering the nature of the internal environment would analyse:
(a)
(b)
(c)
(d)

technology, job design, competition

structure, culture and strategy
organisation mission, technology, competition
culture, demographics, political values

37. An organisations culture:

(a) is used to convey information to the public that the organisation wants to
distribute
(b) is determined by management and maintained by a rigidly enforced list of rules and
regulations
(c) defines what an organisation stands for, and distinguishes an organisation from other
organisations
(d) manipulates employee behaviour to ensure conformity
38. An organisation can foster the development of a particular culture by all of the
following except:
(a)
(b)
(c)
(d)

responding to changes in societys expectations

strategic selection
employee orientation and training
rewards systems

39. Stone argues that HRM activities contribute to the development of an organisations
culture and provide it with a competitive edge:
(a) by selecting only applicants with specialist skills to fill vacant positions

(b) by restricting the organisations strategic objectives to those that can be readily
achieved with the existing human resources
(c) by designing highly specialised jobs which allow employees to perform a narrow range
of tasks more efficiently
(d) by stimulating and reinforcing behaviours needed to achieve the organisations
strategic objectives
40. For an organisations strategy to be implemented effectively it needs to have the
right:
(a)
(b)
(c)
(d)

employee mix
organisational structure
task environment
mission statement

41. Organisations with narrow spans of control are characterised by all of the following
except:
(a)
(b)
(c)
(d)

hierarchical structure
highly specialised roles
flexible reporting relationships
rigid, formal procedures

42. Organisations which are characterised by flexibility, adaptability, informality,

entrepreneurial behaviour, and less specialised roles are described as having:
(a)
(b)
(c)
(d)

narrow spans of control

laissez-faire management
bureaucratic/autocratic managers
wide spans of control

43. When evaluating HRM strategies and policies which of the following is not
considered:
(a) commitment
(b) cost effectiveness

(c) creativity
(d) socialisation
44. The extent to which HRM policies promote the achievement of employee goals and,
at the same time, satisfy the organisations strategic business objectives is known as:
(a)
(b)
(c)
(d)

agreement
congruence
fit
strategic management

45. If HRM specialists are to be involved in strategic planning and decision making they
need to:
(a)
(b)
(c)
(d)

demonstrate increased profitability through improved employee productivity

develop their knowledge and understanding of the organisations production processes
acquire specialist skills and qualifications in the human resources discipline
support major decisions of management

Chapter 2 : Human Resource Planning

Multiple Choice Questions
1.

Identify the least correct statement:

(a) Human resource planning is concerned with the demand and supply of labour.
(b) To be successful, an organisation needs employees. Therefore, it needs human
resource planning to successfully meet its future labour requirements.
(c) The purpose of human resource planning is to assure that a certain desired number of
persons with the correct skills are available at the specified time in the future.
(d) Human resource planning can be undertaken in isolation, and divorced from the
companys overall business objectives.

2.

Human resource planning is the responsibility of:

(a)
(b)
(c)
(d)

3.

An HR plan should be focused on:

(a)
(b)
(c)
(d)

4.

line managers
top managers
HR managers
all managers

future employee needs

the organisations strategic plan
labour costs
both (a) and (b)

To be of value, HR planning must be:

(a)
(b)
(c)
(d)

an integrated part of the organisations strategic planning process

undertaken immediately after strategic planning takes place
developed independently of, but at the same time as, strategic planning
undertaken as and when a need arises in relation to human resource issues

5. If an HR manager concentrates on meeting short-term replacement needs it can result in:

(a)
(b)
(c)
(d)

cost savings
quantity and quality problems
up-to-date employee skills
improved job satisfaction

6.

Linking HR planning with corporate strategy allows the HR manager:

7.

(a) an opportunity to understand the role he/she plays within the organisation
(b) to influence the future direction of the organisation
(c) to anticipate and influence the future HR requirements of the organisation
(d) to more clearly understand the impact of increased global competition
Effective HR planning ensures all of the following except:
(a)
(b)
(c)
(d)

8.

When developing HR plans the HR manager must consider which of the following issues
(a)
(b)
(c)
(d)

9.

reduced absenteeism and turnover

more satisfied and better developed employees
reduced financial and legal costs
more effective and efficient use of human resources

competitive strategy, economic policy, social values

conservation, social values, legal regulations
environmental trends, social values, demographics, conditions of employment
labour costs, unemployment levels, economic conditions, competition

Improved childcare facilities, the increased availability of part-time work, and

maternity leave are a reflection of:
(a)
(b)
(c)
(d)

changing social values

increasing numbers of women in the workforce
attempts to reduce levels of employee absenteeism
the requirements of EEO legislation

10. In 1997 what percentage of Australias workforce were classed as part-time?

c
(a) 25%

(b) 10%
(c) 50%
(d) 15%
11. If you were conducting HR planning for a small manufacturing firm which of the
following would you not be considering when you examine environmental factors
that might impact on your organisation?
(a)
(b)
(c)
(d)

skill shortages
demographics
work schedules
political stability

12. HR managers need to be able to forecast the organisations future HR requirements

and determine how to acquire the people needed. To do this they need three sets of
forecast. Which of the following is not a forecast required for human resource
planning?
(a)
(b)
(c)
(d)

forecast of the demand for human resources

forecast of the demand for human resources of competitor organisations
forecast of supply of human resources available within the organisation
forecast of the supply of external human resources

13. The quantitative approach to human resource planning:

(a) uses expert opinion to predict the future
(b) calls for a panel of experts to independently make predictions about human resource
needs
(c) uses statistical and mathematical techniques
(d) is exemplified by the Delphi technique
14. HR surpluses, shortages and career blockages are the focus of which approach to HR
planning?

(a) qualitative approach

(b) reactive approach
(c) humanistic approach
(d) quantitative approach
15. An organisations human resource inventory contains information on all of the
following except:
(a)
(b)
(c)
(d)

employee skills
employee experience
career goals
employee attitudes

16. According to the human resource planning process presented by Stone the first step is to:
(a)
(b)
(c)
(d)

determine number and type of jobs to be filled

examine human resource inventory
identify labour shortages
stops recruiting new employees

17. The technique which involves building complex computer models to simulate future events
based on probability and multiple assumptions is:
(a)
(b)
(c)
(d)

trend projection
econometric modelling
time-line analysis
projected growth analysis

18. The qualitative approach to human resource planning:

(a)
(b)
(c)
(d)

uses expert opinion to predict the future

uses statistical and mathematical techniques
relies upon trend projection, and econometric modelling
uses succession planning charts, and workforce audits

19. The Delphi technique aims to:

(a) collect information that supports the decisions of management
(b) review the ideas of an expert in relation to projected trends
(c) integrate the independent opinions of experts by eliminating personal influence and
discussion
(d) bring together a group of experts so that a range of issues and alternatives can be
addressed
20. Identify the most complete list of analyses for forecasting the internal supply of
human resources
(a) turnover analysis, skills inventory, replacement charts, Markov analysis, Delphi
technique
(b) turnover analysis, skills inventory, replacement charts, Markov analysis, succession
planning
(c) turnover analysis, skills inventory, replacement charts, trend projection, succession
planning
(d) turnover analysis, skills inventory, expert opinion, Markov analysis, succession
planning
21. The number of people who leave an organisation due to resignation, retirement,
death or disability, retrenchment or termination is known as:
(a)
(b)
(c)
(d)

employee loss
downsizing
employee departure
labour turnover

22. The best source of information about people leaving the organisation can be
obtained from:
(a)
(b)
(c)
(d)

employee exit interviews

employee attitude surveys
labour turnover rates from past years
retrenchment figures for the past five years

23. The skills inventory allows the HR manager to do all of the following except:
(a)
(b)
(c)
(d)

identify where qualified external labour sources can be found

identify qualified employees for different jobs
determine which skills are present or lacking in the organisation
assess longer-term recruitment, selection and training and development requirements

24. Which of the following information would not be found in a skills inventory:
(a) qualifications
(b) political affiliations
(c) personal data
(d) salary and job history
25. A skills inventory can benefit employees by:
(a) allowing the HR manager to check personal details without interrupting an
employee on the job
(b) keeping an accurate record of bonus and leave entitlements
(c) making regular performance appraisal reviews unnecessary
(d) allowing the HR manager to fill positions by internal promotion
26. To be successful a skills inventory system requires all of the following except:
(a)
(b)
(c)
(d)

top management support

assured confidentiality
computer storage of data
current information

27. Replacement charts are used to identify:

(a) where qualified applicants can be located to fill senior positions when they become vacant
(c) present incumbents and potential replacements for given positions
(c) which positions are no longer necessary and can remain vacant when the current
incumbent leaves the organisation
(d) which positions can be amalgamated or replaced by machines due to advances in

production technology
28. A replacement chart is not used with which type of employees:
(a)
(b)
(c)
(d)

technical
professional
clerical
managerial

29. Markov analysis

(a) uses a mathematical technique to forecast the availability of internal job candidates
(b) focuses on the development of high potential employees to guarantee their readiness
for promotion
(c) uses the opinions of experts to identify internal candidates for promotion
(d) identifies existing employees who should be released due to poor performance
30. The use of Markov analysis requires:
(a)
(b)
(c)
(d)

a knowledge of regression analysis

the full support of both management and employees
a maximum of 20 employees in any one job classification
a minimum of 50 employees in any one job classification

31. Which of the following techniques for forecasting the internal supply of human
resources is concerned with the filling of management vacancies?
(a)
(b)
(c)
(d)

replacement charts
succession planning
Markov analysis
skills inventory

32. Many organisations have depleted their management ranks as a result of:
(a) neglect

(b) rapid internal promotion

(c) downsizing
(d) lack of employee development
33. Management development and succession are considered superfluous by many
organisations because of:
(a)
(b)
(c)
(d)

the labour surplus for specialist, skilled positions

the more highly educated nature of the current workforce
the costs involved in developing a fluid and mobile workforce
rapid changes in business and a mobile job market

34. Succession planning for chief executives and senior executives is used by what
percentage of Australian companies?
(a)
(b)
(c)
(d)

approximately 50%
less than 10%
at least 75%
23%

35. Succession planning often begins with an examination of:

(a)
(b)
(c)
(d)

turnover rates
staff development activities
replacement charts
trend projections

36. The practice of managers developing their own replacement has been found to be:
(a)
(b)
(c)
(d)

successful and cost efficient

ad hoc and subjective
objective and well-structured
difficult to implement and monitor

37. Effective development of managers requires:

(a) employing a specialist trainer to identify training needs
(b) a knowledge of competitor strategy to allow the development of skills that match those

of the competition
(c) the use of a computer based form of individual needs assessment
(d) identifying appropriate learning experiences via job assignments
38. For succession planning to meet the future needs of the organisation it relies on all
of the following to be effective except:
(a)
(b)
(c)
(d)

performance appraisal system

training and development programs
compensation and benefits
a culture of individual growth and promotion from within

39. To accurately forecast the availability of external human resources the HR manager must
monitor and respond to:
(a)
(b)
(c)
(d)

changes in business strategy

demographic changes
changes to skill requirements
changes to Government regulations

40. The workforces of Australia, Hong Kong, Japan, Singapore, South Korea, Taiwan
and the USA are:
(a)
(b)
(c)
(d)

aging
shrinking
growing
younger

41. The Australian labour market is affected by all of the following except:
(a)
(b)
(c)
(d)

increased female participation rates

increases in school retention rates
increased use of succession planning
changes in the rate of immigration

42. Competitive pressures, changes in technology and outsourcing have all contributed to the
trend towards:
(a)
(b)
(c)
(d)

multiskilling of the workforce

casualisation of the workforce
downsizing of the workforce
mobility of the workforce

43. The process of subcontracting work to an outside company that specialises in and is
more efficient at that kind of work is known as:
(a)
(b)
(c)
(d)

specialising
consulting
de-skilling
outsourcing

44. Organisations choose to outsource for all of the following reasons except:
(a)
(b)
(c)
(d)

cost and quality

lack of employee skills
increased focus on core business
access to improved technology

45. Organisations might choose to outsource:

(a) performance review activities
(b) training needs analysis
(c) recruitment activities
(d) exit interviews
46. Many criticisms have been made of the practice of outsourcing. Which of the following is
not one of these criticisms?
(a) loss of essential personnel
(b) reduced service

(c) production delays

(d) leaking of confidential information
47. The internationalisation of business has been facilitated by:
(a)
(b)
(c)
(d)

advances in technology and labour mobility

population growth and spending power
increased immigration and changing consumer tastes
widespread marketing and sales potential

48. An organisations success depends on:

(a)
(b)
(c)
(d)

financial standing
how well its human resources are managed
how quickly new products can be developed and produced
having efficient, low-cost sources of labour

49. Which of the following is not a requirement for effective human resource planning:
(a)
(b)
(c)
(d)

top management that is supportive of the planning process

good communication between HR personnel and line management
the plan utilises qualitative, and the qualitative approaches to planning
the integration of the HR and corporate plan

50. The HR plan:

(a) is independent of all other plans undertaken by the organisation
(b) affects all HR activities, and is a strategic link between organisational and HRM
objectives
(c) serves as a broad guideline for the employment and placement of human resources
(d) is a superfluous activity that adds nothing of value to the management of an organisation
and its ability to achieve its strategic objectives

Chapter 5: Job Analysis, Job Design and Quality of Work Life

Multiple Choice Questions

1.

Ensuring a proper match between work and employee capabilities is now considered:
(a)
(b)
(c)
(d)

2.

better for employee morale

an economic necessity
well intentioned, but unrealistic
impossible because of rapid and continuous change

The process by which jobs are divided to determine what tasks, duties and
responsibilities they include, their relationship to other jobs, the conditions under
which work is performed, and the personal capabilities required for satisfactory
performance is known as:
(a)
(b)
(c)
(d)

task differentiation
human resource analysis
job analysis
position classification

3.

Job analysis provides information about:

(a) job content and job requirements only
(b) job description
(c) job enrichment
(d) job content, job requirements, and job context

4.

The job oriented approach to job analysis is most likely to be concerned with:
(a) job enrichment
(b) performance appraisal
(c) sequencing, time and motion involvement
(d) career planning and development
Which of the following is not an occasion when job analysis is generally undertaken:
(a) when an employee is not performing their role adequately
(b) when a new job is created
(c) when a job is changed significantly as a result of new methods, new procedures, or new
technology
(d) when the organisation commences and the job analysis program is started

5.

6.

Identifying what work must be performed, how it will be performed, where it is to be

performed and who will perform it is.
(a) human resource planning
(b) division of labour
(c) organisation structure and design
(d) job design

7. A written statement explaining why a job exists, what the job holder actually does, how he
or she actually does it, and under what conditions the job is performed is a definition of:
(a)
(b)
(c)
(d)
8.

An explanation of which of the following is included in most job descriptions:

(a)
(b)
(c)
(d)

9.

job specification
job analysis
job description
job enrichment

staff social activities

problem solving
staff morale
superannuation options

A job specification identifies:

(a) the most essential tasks of each position
(b) the most appropriate personality type for a person holding that position
(c) the experience, qualifications, skills, abilities and knowledge required to successfully
perform the job
(d) (b) and (c)

10. Traditional job descriptions have been criticised for being:

(a)
(b)
(c)
(d)

inaccurate and inflexible

out of date wish lists
straitjackets suitable only for repetitive work
vague performance guidelines

11. Traditional job descriptions are not seen as appropriate for jobs that are:

(a)
(b)
(c)
(d)

project-based
routine and repetitive
varied and autonomous
changing rapidly

12. The purpose of the job analysis, the types of information to be collected, the sources of
information, and the way in which the data are to be analysed and reported determines:

(a)
(b)
(c)
(d)

who gathers the information

the most appropriate data collection method
the importance of accuracy in the data collected
how the process is received and supported by employees

13. Job analysis for standardised, repetitive short job cycle, or manual jobs will primarily use
which of the following data gathering methods:
(a)
(b)
(c)
(d)

interviews
observations
questionnaires
employee diary

14. When using a questionnaire to gather data for a job analysis which of the following
should be avoided:
(a)
(b)
(c)
(d)

using a short questionnaire

explaining how the questionnaire results are to be used
using simple, easy to understand language
using a long questionnaire to gather as much detail as possible

15. Functional Job Analysis is an approach to job analysis that:

(a) uses standardised statements and terminology to describe the nature of jobs and to
prepare job descriptions and job specifications
(b) uses unique descriptions of each position to emphasise the importance or significance
of all positions within the organisation

(c) relies upon the position holder to correctly identify all tasks related to their position
and the relevance of these tasks to the achievement of the organisations objectives
(d) requires a job analysis to be undertaken at an agreed upon time every year so that the
job description and job specification documents are always up-to-date
16. The job analysis instrument and scoring/reporting service that is marketed commercially is:
(a)
(b)
(c)
(d)

the Job Review Service

the Position Analysis Questionnaire
the Job Orientation Review
the Position Description Report

17. Which of the following is not a generally accepted method of data collection for the
purposes of job analysis:
(a)
(b)
(c)
(d)

Position Classification Inventory

Position Analysis Questionnaire
Hay Guide Chart Profile
Job Profile Analysis

18. The usefulness of task-oriented approaches to job analysis has been reduced by all of the
following except:
(a)
(b)
(c)
(d)

widespread corporate downsizing

flexible job design
employee turnover
project assignments

19. The approach to job analysis that is based upon identifying the skills and behaviours
needed to perform a job is described as a(n):
(a)
(b)
(c)
(d)

behavioural approach
people-oriented approach
task-oriented approach
employee centered approach

20. Which of the following job-related competencies are described as visible

competencies:
(a)
(b)
(c)
(d)

self-concept
traits
knowledge
motives

21. The essential characteristics that everyone in a job needs to be minimally effective are:
(a)
(b)
(c)
(d)

differentiating competencies
required competencies
specific competencies
threshold competencies

22. The advantages of the Behaviour-Event Interview method includes all of the following
except:
(a) identification of how superior performers handle specific tasks or problems
(b) identification of personality characteristics essential for a position involving a large
amount of customer contact
(c) freedom from racial, gender and cultural bias
(d) empirical identification of competencies
23. Competency profiling has been criticised for:
(a)
(b)
(c)
(d)

only dealing with employee attitudes

promoting a mismatch between organisation needs and employee skills
emphasising technical competencies
not addressing the real issues facing employee performance

24. Job analysis helps to establish organisational adherence to EEO requirements by:
(a) providing hard evidence of job relatedness
(b) allowing an organisation to give preference to a particular group of employees

(c) identifying clear lines of promotion and career development that are communicated to
all employees
(d) ensuring that job descriptions and job specifications are accurate
25. A problem with job analysis might be that:
(a)
(b)
(c)
(d)

multiple methods of job analysis are used

there is management support for the job analysis
employees are not made aware of the importance of job analysis
multiple sources are used for collecting job information

26. Specification of the content of a job, the material and equipment required to do the
job, and the relation of the job to other jobs is:
(a)
(b)
(c)
(d)

job description
job design
job ranking
job specification

27. Job specialisation, job enlargement, and job rotation are all methods of:
(a)
(b)
(c)
(d)

job enrichment
job description
job analysis
job design

28. Problems with job specialisation might be:

(a)
(b)
(c)
(d)

no sense of identifiable end product, and training costs are increased

vertical loading, and no employee involvement
higher absenteeism, increased turnover, and increased skill variety
repetition, mechanical pacing, and little social interaction

29. Job enlargement involves:

(a) the vertical expansion of a job by adding planning and decision making responsibilities
(b) the horizontal expansion of a job by adding similar level responsibilities
(c) increasing task variety by moving employees from one task to another

(d) the use of standardised work procedures and having employees perform repetitive,
precisely defined and simplified tasks
30. A possible drawback of job rotation is:
(a)
(b)
(c)
(d)

demotivation of intelligent and ambitious trainees

lack of suitable jobs that can be included in the rotation
difficulty of maintaining an accurate record of employee performance
inability to ensure consistent quality of output

31. Job enrichment builds motivating factors into the job content by:
(a) opening feedback channels, combining tasks, and loading jobs horizontally
(b) establishing client relationships, creating natural work units, and performing precisely
defined and repetitive tasks
(c) combining tasks, creating natural work units, and expanding jobs vertically
(d) both (a) and (b)
32. Job enrichment can lead to:
(a)
(b)
(c)
(d)

the development of specialised skills

improvements in job performance and job satisfaction
increased training and development costs
limited opportunities for social interaction among employees

33. Socio-technical enrichment aims to:

(a)
(b)
(c)
(d)

change the technology of existing operations

improve the environment to allow increased social interaction among employees
design production processes that are viewed as more acceptable by society
integrate people with technology

34. Autonomous work teams are a form of:

(a)
(b)
(c)
(d)

quality circle
job enrichment
workforce flexibility
task diversification

35. Hackman and Oldham identified five core job characteristics that are especially
important for job design. Which of the following is not included in their list of core
characteristics?
(a)
(b)
(c)
(d)

task significance
skill variety
task specialisation
feedback

36. The critical psychological states; experienced meaningfulness of work, experienced

responsibility for work outcomes, and knowledge of results determine:
(a) the level of employee motivation, job satisfaction and performance
(b) the extent to which an employee has a good understanding of the requirements of their
position
(c) whether or not tasks are completed on time
(d) the likelihood of an employee remaining with the organisation
37. Before the HR manager or line manager attempts to change the job characteristics of
a position it is important to:
(a)
(b)
(c)
(d)

make employees aware of the impending changes

trial the changes to see if they are appropriate
change job titles to reflect job changes
assess the personality and situation of employees to ensure that desired outcomes will
be achieved

38. Quality of work life involves the quality of supervision, working conditions, pay and
benefits, and the nature of the job. It aims to:
(a) integrate employee needs and wellbeing with the organisations desire for higher
productivity
(b) increase productivity at the lowest possible cost to the organisation
(c) provide an environment where employees like coming to work
(d) develop a culture which attracts and retains high quality staff

39. Factors that can be addressed to improve quality of work life include all of the
following except:
(a)
(b)
(c)
(d)

social integration
remuneration
product quality
development of capabilities

40. Where were quality circles developed and refined:

(a)
(b)
(c)
(d)

United States of America

Germany
United Kingdom
Japan

41. Identify problems as a group, process suggestions and examine alternatives for
improving productivity, raising product and service quality and increasing worker
satisfaction is the objective of:
(a)
(b)
(c)
(d)

participative management
quality circles
job autonomy and feedback
job enrichment

42. Quality circles often fail because:

(a)
(b)
(c)
(d)

leaders provide poor guidance

they are introduced in the wrong type of organisation
managers often feel threatened
employees resist change to current work practices

43. Which of the following is not necessary for successful quality circles:
(a) restricted number of meetings
(b) union support
(c) provision of adequate training

(d) use of quality circle suggestions

44. Employee participation which involves a redistribution of decision-making power
from management to employees is:
(a)
(b)
(c)
(d)

decentralised decision-making
industrial democracy
quality circles
participative decision-making

45. Industrial democracy is often confronted with:

(a) lack of employee interest
(b) union resistance
(c) management resistance
(d) poor understanding of its purpose

Chapter 6: Recruiting Human Resources

Multiple Choice Questions

1.

To ensure that people who are recruited have the unique skills and know-how
required by the organisations strategic objectives, management must:
(a) hire only people with formal academic qualifications
(b) aim for a 5% annual turnover to allow the continual upgrade of skills
(c) make sure that the organisations strategic objectives are in line with the skills of
existing employees
(d) anticipate changes in the organisations environment

2.

Recruitment policy and activities should reflect:

(a)
(b)
(c)
(d)

3.

By ignoring its strategic mission, objectives and culture when recruiting personnel an
organisation can:
(a)
(b)
(c)
(d)

5.

societys demand for improved employee skills

the organisations business objectives and culture
the practices of competitors
government policy on unemployment

ensure a more objective selection of personnel

draw upon a wider range of potential employees
destroy its unique competitive advantage
develop a more flexible workforce

Recruitment is a two-way process that involves:

(a) determining the employment needs of the organisation and the financial needs of job
applicants
(b) satisfying the organisations strategic HR requirements and helping potential
candidates decide whether they meet the job requirements, are interested in the position
and want to join the organisation
(c) identifying the skills needed to maintain market position and targeting specialist skill
reas
(d) examining career aspirations of candidates and matching them to suitable positions
within the organisation

6.

An organisations recruitment policy:

(a) consists of rules and regulations to be followed
(b) provides a concise list of how many employees are needed and with what skills
(c) provides a framework for recruiting action and reflects the organisations recruitment
objectives
(d) is a document most organisations have, but it is only used as window dressing

7.

The organisations recruitment policy details principles that should be followed. It

include all of the following except:
(a)
(b)
(c)
(d)

8.

For effective recruitment an HR manager should:

(a)
(b)
(c)
(d)

9.

employees taking important religious holidays as days off

promotion from within
employees taking early or normal retirement
EEO and AA policies

conduct psychological and personality tests

be aware of changing conditions in the labour market
have a good understanding of employee aspirations
understand the impact of the competition on the organisation

Stone describes recruitment as:

(a)
(b)
(c)
(d)

a form of human juggling

a necessary evil
a process of elimination
a form of economic competition

10. Effective recruitment should:

(a)
(b)
(c)
(d)

make it easy to attract good quality applicants

provide a harmonious work environment
satisfy the needs of both the candidate and the organisation
be able to reduce the costs associated with filling vacant positions

can

11. An advantage of internal recruitment is:

(a)
(b)
(c)
(d)

the organisation has more knowledge of the candidates strengths and weaknesses
the pool of talent is bigger
employees may be promoted beyond their level of competence
excellent training and development programs are necessary

13. Advertising of job openings to current employees via bulletin boards, newsletters or
personal letters is:
(a)
(b)
(c)
(d)

employee promotion
career development
job posting
job description

14. An advantage of external recruitment is:

(a)
(b)
(c)
(d)

enhanced employee morale and motivation

new employee adjustment and orientation takes longer
the organisations return on investment in training and development is increased
new insight, skills and know-how can be introduced into the organisation

15. A disadvantage of external recruitment is:

(a) employee infighting for promotion can affect morale
(b) organisation hires only entry-level candidates
(c) an employee may be selected whose personality does not match with the organisations
culture
(d) the pool of talent is bigger
16. External recruitment involves all of the following methods except:
(a)
(b)
(c)
(d)

job posting
advertising
personal consultancies
executive search firms

18. An advantage of newspapers as a method of recruitment advertising is:

(a)
(b)
(c)
(d)

long advertisement life

circulation is not specialised
considerable competitive clutter
circulation is concentrated in specific geographic areas

19. An advantage of magazines as a method of recruitment is:

(a)
(b)
(c)
(d)

wide geographic circulation

pinpointed occupational categories can be reached
long lead time for ad placement
cost for reaching each prospect is high

20. Radio and television advertising would be an effective method of recruiting:

(a) when there are multiple job openings and there are enough prospects in a
specific geographic area
(b) when the job is specialised
(c) when there is a need to attract hi-tech computer literate personnel
(d) when involved in ongoing recruitment programs
21. A disadvantage of using radio and television as a method of recruitment is:
(a) wide geographic circulation
(b) poor printing quality
(c) lack of permanence
(d) cost of reaching prospective candidates is high
22. Advertising vacant positions on the Internet can be beneficial when:
(a) you want a mix of males/females and minority groups applying
(b) you want to limit recruitment to a specific area
(c) you want to avoid time delays and high advertising costs

(d) there is a need to attract hi-tech computer literate personnel

23. Government employment agencies are mostly used to recruit for what type of positions:
(a)
(b)
(c)
(d)

specialist professions
clerical and sales
management executives
security personnel

24. Research has shown that personnel consultancies are most likely to fall down in the
area of:
(a)
(b)
(c)
(d)

candidate selection; screening

negotiating salary packages
quality of resums
confidentiality; honesty

26. Which of the following is not an advantage of using a professional recruiting consultant:
(a)
(b)
(c)
(c)

time
confidentiality
expertise
cost

27. Executive search firms are favoured for external recruitment when:
(a) personnel with the required skills and experience are not known to be seeking a
job change
(b) the number of people with the necessary skills and experience is limited
(c) maximum confidentiality is desired
(d) all of the above
28. The value of using executive search firms has been questioned because of:

(a) the small number of candidates considered for each position

(b) the ethical problems associated with pinching another organisations executives
(c) the high costs, questionable performance and conflict of interest over the raiding of
existing clients
(d) the quality of candidate screening and selection
29. A situation where a consultant cannot look for potential applicants inside companies
which are existing clients is known as:
(a)
(b)
(c)
(d)

the off-limits problem

a conflict of interest
an ethical dilemma
restricted business practice

30. When choosing an executive search firm the HR manager should:

(a) find the cheapest one possible
(b) ensure that the search firm is compatible with the organisations requirements and that
their conduct will be professional
(c) ensure that the search firm understands the importance of the position to be filled
(d) seek recommendations from organisations that have used an executive search firm in
the past
31. External recruiting can involve all of the following methods except:
(a)
(b)
(c)
(d)

university recruiting
professional associations
personnel consultancies
computerised record systems

32. Which of the following recruitment approaches does not charge a fee for the placement of
candidates:
(a) management recruitment consultants
(b) personnel consultancies
(c) outplacement firms

(d) executive leasing

33. The major problems associated with university recruiting are:
(a)
(b)
(c)
(d)

time, expense and high labour turnover

lack of student interest, poor quality of applicants
the wrong institutions are frequently targeted
too many applicants, insufficient time allocated to interviews with each student

34. The performance of walk-in and write-in applicants has been found to be:
(a) below acceptable standard
(b) superior to candidates recruited through placement services or newspaper
advertisements
(c) of an average or mediocre standard
(d) disruptive to the existing workplace harmony
35. Trade Unions have traditionally provided a valuable recruiting service for which industry:
(a)
(b)
(c)
(d)

hospitality
public servants
coal mining
technical professions

37. EEO and AA legislation is about:

(a) selecting the best person for the job in terms of his or her job-related skills
(b) ensuring that selected groups of individuals get special consideration when job
applications are considered
(c) protecting the rights of the organisation to employ only those people they want to
(d) providing enhanced career advancement for employees from minority groups
38. The largest group among the disadvantaged members of the workforce are:

(a)
(b)
(c)
(d)

the physically disabled

Aboriginal workers
women
Asians

39. The major barrier encountered by women in the workplace is:

(a)
(b)
(c)
(d)

physical limitations
stereotyped thinking
lack of ambition
inability to give orders

40. When women attempt to move from middle management into general management
they often encounter:
(a)
(b)
(c)
(d)

the wooden floor

the old boys club
the closed door
the glass ceiling

41. Organisations can assist in removing the glass ceiling by:

(a)
(b)
(c)
(d)

Und
educating current management
appointing women directly into positions in top management
redecorating the offices
ensuring that employees of all nationalities are considered for internal promotion

42. A major concern of older workers in the workplace is:

(a)
(b)
(c)
(d)

retirement benefits
superannuation benefits
health problems
age discrimination

43. Studies examining the employment of people with disabilities conducted in

Australia and Hong Kong have shown that people with disabilities:

(a)
(b)
(c)
(d)

require more complex and costly work stations

bring benefits to the workplace
respond better to team based work than people without disabilities
are good for company image

44. If an Aboriginal employee has had to relocate to find employment they may have
difficulty:
(a) finding accommodation
(b) finding their way around town
(c) adjusting to the new work environment
(d) moving their families
45. What type of discrimination is growing in Australia:
(a)
(b)
(c)
(d)

racial
religious
gender
sexual orientation

46. Les and Salamon argue that organisations tend to evaluate the success of their
recruitment initiatives based on:
(a)
(b)
(c)
(d)

quality of applicants
acceptance of job offers
filling of vacancies with minimally qualified people at acceptable cost
how many applications were received

47. Phillips recommends that recruitment activity be assessed according to all of the
following except:
(a)
(b)
(c)
(d)

quality of recruitment method

costs associated with filling the vacancy
number of applicants generated
cultural mix of employees

48. Phillips describes the number of applicants generated by a particular recruitment

method or source as:

(a)
(b)
(c)
(d)

frequency of reply
productivity
responsiveness
attractiveness

49. Evaluating an organisations recruitment activity is important for all of the following
except:
(a)
(b)
(c)
(d)

maintaining competitive advantage

controlling costs
meeting strategic business objectives
improving recruiting performance

50. Organisations considered good employers have:

(a)
(b)
(c)
(d)

higher salary packages

problems attracting high quality candidates
no problems attracting high quality candidates
flexible, family-friendly employment policies

Chapter 7 : Employee Selection

Multiple Choice Questions

1.

Selecting and retaining key human resources has increased in importance due to all
of the following except:
(a)
(b)
(c)
(d)

2.

Selection criteria should:

(a)
(b)
(c)
(d)

3.

decision-making
recruiting
manpower planning
selection

When an organisation develops its selection policy, which of the following factors is
not considered:
(a)
(b)
(c)
(d)

5.

not be complicated
correspond closely to how a job is performed now
be consistent with the organisations strategic direction and culture
reflect the standard of applicants from which a choice is to be made

The process of choosing from a group of applicants those individuals best suited for
a particular position is:
(a)
(b)
(c)
(d)

4.

increased international competition

high unemployment levels
industry restructuring
corporate mergers

the financial costs of filling a vacancy

quality of people required
selection techniques to be used
role of management in final hiring decision

Criteria that is used to distinguish successful from unsuccessful job performance is

required to be:
(a) clearly communicated to all employees

(b) vague and subjective

(c) reliable and valid
(d) flexible and situational
6.

Validity in relation to selection refers to:

(a)
(b)
(c)
(d)

7.

The identification of criteria necessary for the successful performance of a job is derived
from:
(a)
(b)
(c)
(d)

8.

a skills inventory
a job specification document
the human resource plan
a job description document

The two approaches that HR managers use to determine the validity of criteria are:
(a)
(b)
(c)
(d)

9.

the value of the position to the organisation

the extent to which something measures what it claims to measure
the extent to which a measure is consistent and dependable
how badly an applicant wants to acquire a particular position

past performance and future strategies

concurrent validity and predictive validity
subjective observation and behavioural patterns
performance validity and result validity

If a performance predictor lacks reliability an organisation could find that the

applicant chosen for a position:
(a)
(b)
(c)
(d)

is totally unable to perform the tasks required

is unaware of the necessary tasks to be performed on the job
may perform well one time and poorly the next
does not have a personality that fits in well with the culture of the organisation

10. Test/retest, split halves, and parallel forms are all methods for measuring:
(a) employee ability

(b) employee/organisation compatibility

(c) employee personality
(d) predictor reliability
11. The most correct order of the steps in the selection process is:
(a)
(b)
(c)
(d)

job analysis; recruitment; interview; placement on the job

placement on the job; background investigation; medical examination
preliminary interview; background investigation; interview
preliminary screening by HRM department; application form; placement on the job

12. When using telephone screening to determine if candidates satisfy minimum

requirements the questions asked should be:
(a)
(b)
(c)
(d)

related to formal qualifications only

related to issues critical to job requirements and prepared beforehand
varied according to the age and sex of the applicant
open-ended and enquire about previous positions held

13. Which of the following is not one of the steps followed in the selection process:
(a)
(b)
(c)
(d)

application form
tests
investigation of social activities
placement on the job

14. Attempts to identify the relationship between an application form item and job
performance measures make use of a:
(a)
(b)
(c)
(d)

numbered application form

personality test
performance review form
weighted application form

15. Which of the following statements about application forms is correct in terms of
EEO requirements:

(a) inquiries indicating national or ethnic origin may be made

(b) inquiries into family circumstances, relationships, spouses situation, family planning
or any related circumstances are not acceptable
(c) applicants may be asked to list all the clubs and organisations to which they belong
(d) information about relatives including names, addresses and relationships may be
required of the applicant
16. What information should not be requested on an application form:
(a)
(b)
(c)
(d)

criminal records and/or traffic convictions

understanding of the organisation and its strategy
present working relationship with colleagues
residency status

17. If an organisation was considering using some form of test as part of the selection
process the choice would depend on:
(a)
(b)
(c)
(d)

cost, ability of HR manager to administer test, candidate personality

management commitment, time available, type of position
company policy, type of job applied for, cost of test
qualifications of candidate, business strategy, HR managers perception of the tests
usefulness

18. Selection tests include all of the following except:

(a)
(b)
(c)
(d)

aptitude tests
intelligence tests
personality tests
performance tests

19. Tests which are designed to measure the special abilities required in a specific job are:

(a) interest tests

(b) intelligence tests
(c) aptitude tests

(d) employment tests

20. The first step in using any form of selection test is:
(a) ensuring the tests are administered by qualified personnel and that the results
are treated as strictly confidential
(b) analyse the job thoroughly to determine the precise requirements needed to
successfully perform the job
(c) review the types of tests available that measure the critical factors for successful job
performance
(d) ensure that all applicants are advised of the results and properly counselled
21. Personality tests are the most difficult tests to evaluate and use in employee selection
because:
(a) the concept of personality itself is hazy and the relationship between performance on
the job and personality is often vague or non-existent
(b) they are designed to measure basic aspects of an applicants personality, such as degree
of introversion/extroversion, emotional stability and motivation
(c) answers are impossible to fabricate
(d) both (b) and (c)
22. Some personality tests have limited value in employee selection and:
(a)
(b)
(c)
(d)

are culturally biased

are easy to develop and administer
make it difficult for the applicant to fabricate answers easily
are difficult to justify to EEO authorities

23. If done properly selection tests can:

(a)
(b)
(c)
(d)

increase management control

help managers make decisions about optimal job/person fit
promote workforce diversity
make the selection of job applicants more risky

24. Before using any form of selection test the organisation should consider all of the
following except:
(a)
(b)
(c)
(d)

staff attitudes
legal liability
job-relatedness
equal opportunity

25. The most widely used selection technique is the:

(a)
(b)
(c)
(d)

aptitude test
employment interview
assessment centre
personality test

26. Using a structured interview:

(a) ensures that the interviewee feels that their application is taken seriously
(b) ensures that all relevant information on the candidate is systematically covered
(c) allows the interviewer to focus on specific issues that are crucial to the applicants
ability to perform the job
(d) ensures that all members of the interview panel have some input into the selection
decision
27. The most correct statement regarding selection interviews is:
(a) The employment interview is infrequently used as a selection technique.
(b) Research indicates that the use of an unstructured interview yields more accurate
results than a structured approach.
(c) Research suggests that behavioural interviews have much greater validity than
unstructured interviews.
(d) Set general objectives for interview and go over the questions on the application form.
28. T select the right person for a job it is essential that the HR manager and line manager:

(a)
(b)
(c)
(d)

like the job applicant

have read the application form
ask the right questions in the interview
know the requirements of the position to be filled

29. The purpose of the employment interview is:

(a) to give and get information that will help the interviewer make a decision about
the applicants suitability
(b) to clarify and check the accuracy of information provided in the application form
(c) to determine whether the candidate has the character and personality to work well with
existing employees
(d) to ensure that the organisation is adhering to regulations relating to EEO legislation
30. It is important to review an applicants written application to determine:
(a)
(b)
(c)
(d)

the honesty of the applicant

if additional information is needed
whether the applicants writing skills are adequate
the age and nationality of the applicant

31. Research shows that interviewers make a judgement about an applicant:

(a) when reading the written application
(b) after the interview has concluded
(c) in the first 3 to 5 minutes of the interview
(d) based on their ability to communicate
32. The most correct statement about research and the employment interview is:
(a) interviewers develop their own stereotypes of a good applicant and select those
who match the stereotype
(b) favourable information outweighs unfavourable information
(c) interviewers are more likely to change their initial opinion of an applicant from
negative to positive than from positive to negative
(d) applicants who demonstrate greater eye contact, head moving, smiling and other
similar non-verbal behaviour receive lower evaluations

33. Conducting a successful interview involves all of the following except:

(a)
(b)
(c)
(d)

knowing the job

explaining the job
encouraging the applicant to talk
assessing the appearance of candidates

34. To encourage an applicant to do most of the talking the interviewer should:

(a)
(b)
(c)
(d)

avoid asking direct questions

avoid asking questions that simply require a yes/no answer
monopolise the conversation
not ask many questions

35. A new employee may be dissatisfied with their job if:

(a)
(b)
(c)
(d)

the tasks are too complex and varied

they are unable to fit in easily
they were not given accurate information about the job and the employment conditions
their colleagues are helpful during their settling-in period

36. An applicant who is clearly not suitable for a position:

(a)
(b)
(c)
(d)

should be told tactfully at the close of the interview

should be notified at the conclusion of the interview process
should be forgotten about
should receive a letter detailing the reasons why they were unsuccessful two weeks
after their interview

37. An accurate record of interview should be kept because:

(a) they help to remind the interviewer why certain decisions were made
(b) they can help to prove that the selection decision was not discriminatory

(c) human resources/personnel need to have copies on file for audit purposes
(d) they can be used to monitor the effectiveness of recruitment and selection processes
38. An applicants references should be checked:
(a)
(b)
(c)
(d)

as soon as the application has been received

immediately prior to the interview
after a job offer has been accepted
after the interview is over, and before making a final decision

39. The validity of reference checks is most accurate when:

(a)
(b)
(c)
(d)

the reference is obtained from an immediate superior

references are provided by close friends and family
the referee is well acquainted with the applicants work
both (a) and (c)

40. When asked to provide a reference which of the following is not recommended?
(a)
(b)
(c)
(d)

responding to telephone requests

sticking to the facts - providing only information that can be substantiated
direct all reference inquiries to the HR department
ask the enquiring organisation to have the applicant verify that a reference is to be given

41. When interviewing an applicant who is blind, it is good etiquette to:

(a)
(b)
(c)
(d)

make friends with the guide dog, if they have one

let them find their own way about
identify yourself and others present immediately
avoid using words or phrases that might be awkward or embarrassing to the applicant

42. By examining labour turnover figures and performance appraisal assessments the HR manager
can:
(a) determine future staffing needs
(b) evaluate the success of the interviewing technique
(c) estimate the performance standard of employees

(d) identify promotional potential of employees

43. The pre-employment medical gathers information that is useful in all of the following except:
(a) ensuring that people are not assigned to jobs for which they are physically unsuited
(b) determining the applicants eligibility for group life, health and disability insurance
(c) safeguarding the health of present employees through the detection of contagious
diseases
(d) protecting workers from workplace accidents and injuries
44. Biographical information blanks are used to:
(a) collect relevant personal data for the personnel files
(b) compare the responses given by applicants with those given by high-performing
employees
(c) ensure an increase of workforce diversity
(d) check the accuracy of data collected during the interview
45. A disadvantage of panel interviews is:
(a)
(b)
(c)
(d)

a more thorough questioning of the applicant is likely

more thorough preparation of the interview is undertaken by panel members
the experience can be quite stressful for the interviewee
it can overcome any idiosyncratic biases that individual interviewers might have

46. Which of the following is not a recognised form of employment interview:

(a)
(b)
(c)
(d)

peer interview
panel interview
group interview
computer interview

47. An advantage of video interviewing is:

(a) an applicant may be reluctant to take part in a video interview
(b) it often limits the amount of feedback candidates receive
(c) candidates complain about the lack of the human element

(d) it can save time and money if interviewing candidates from interstate or overseas
48. The technique that uses interviews, tests, simulations, games, and observations to evaluate
an individuals potential is known as:
(a)
(b)
(c)
(d)

performance reviews
assessment centres
computer exercises
task assignments

49. Which of the following is not used during the selection process:
(a)
(b)
(c)
(d)

peer appraisal
graphology
the polygraph
assessment centres

50. The approach to selection that uses a series of steps, and eliminates candidates who fail a
step is the:
(a)
(b)
(c)
(d)

step by step approach

the collective step approach
the successive hurdles approach
the contemporary behavioural approach

Chapter 12 : Employee Compensation

Multiple Choice Questions
1.

By rewarding desired results an organisations compensation policies and practices can:

(a)
(b)
(c)
(d)

attract highly skilled applicants to the organisation

reinforce employee behaviour that realises its strategic business objectives
encourage employees to work harder and faster
stimulate the interest of employees in their tasks

3.

Some critics argue that collective employee relations and unions can be undermined by

(a)
(b)
(c)
(d)

enterprise bargaining
negotiated award rates
pay for performance
bonus incentive schemes

5.

A compensation objective for the organisation would

(a) give the employee equitable treatment
(b) measure and reward appropriately the employees performance
(c) provide regular salary and performance reviews
(d) attract and keep the desired quality mix of employees

6.

An objective for the employee of a compensation program would be to

7.

(a) control compensation costs

(b) provide regular salary and performance reviews
(c) motivate employees to improve their performance
(d) comply with legal requirements
Before determining the compensation given to a job incumbent it is necessary to
(a) access the financial needs of the employee
(b) review compensation packages at other organisations
(c) conduct a job analysis and job evaluation
(d) decide how valuable the employee is to the organisation

8.

Components of a systematic salary administration program include

(a) job evaluation; salary survey; performance evaluation; pay for performance
(b) job evaluation; organisational objectives; performance evaluation; pay for performance
(c) job evaluation; job description; performance evaluation; pay for performance
(d) organisational objectives; job description; salary survey; merit pay

9.

Gross overpayment or underpayment of employees gives rise to employee dissatisfaction

due to
(a) lack of motivation to work harder

(b) above average compensation

(c) the difficulty of achieving intrinsic rewards for performance
(d) the lack of fairness employees perceive
10. A systematic model of determining the worth to the organisation of the job in
relation to other jobs is
(a)
(b)
(c)
(d)

salary survey
job evaluation
job grading
salary formula

11. The most common systems of job evaluation are

(a)
(b)
(c)
(d)

job review, job ranking, task classification, job audit

job classification, job grading, performance review, task analysis
job ranking, job grading, points and factor comparison
job grading, job review, job audit, factor comparison

12. The approach to job evaluation that sizes jobs by placing them in rank order is
known as
(a)
(b)
(c)
(d)

job grading
job structuring
job factor analysis
job ranking

14. For job grading to be accurate

(a)
(b)
(c)
(d)

broad experience and knowledge of the job is required by the grader

satisfactory job descriptions have to be written for each of the grades
it is necessary to observe and interview the current job holder
it is important to recognise the differences between jobs

15. An approach to job evaluation in which numerical values are assigned to specific job
factors and the sum of those values provides a quantitative assessment of a jobs
relative worth is

(a)
(b)
(c)
(d)

job rating
job grading
point system
factor comparison

16. When choosing the weights of each job factor, the gradations within each factor, the
factors themselves, and the number of factors the point system of job evaluation
becomes flawed due to
(a)
(b)
(c)
(d)

objectivity
subjectivity
negativity
reflectivity

17. Factor comparison is a refinement of which job evaluation systems

(a)
(b)
(c)
(d)

job grading and job classification

job analysis and point system
job structuring and job ranking
job ranking and point system

19. Which of the following is not a commonly used pre-packaged job evaluation system
(a)
(b)
(c)
(d)

Hay guide chart profile

Watson Wyatt MULTICOMP
McTavish JEVRE
Weighted job questionnaire

20. The Hay guide chart profile bases its job evaluation on an examination of three factors.
(a) qualifications, experience, working conditions
(b) know-how, problem-solving, accountability
(c) creativity, risk-taking, experience
(d) job tasks, initiative, performance results

22. Role-based evaluation developed by the Hay Group views work in terms of
(a) evolving roles that reflect the growing ability of the incumbents to add value to
an organisation
(b) a collection of continually changing activities
(c) a series of related tasks that have been grouped into a single job simply for the sake of
convenience
(d) a few related activities that are grouped together to provide structure and control within
the organisation

23. Role-based evaluation combines elements of job evaluation and

(a)
(b)
(c)
(d)

strategic flexibility
skill development
job re-design
people-centred approaches

24. The Mercer Cullen Egan Dell method of job evaluation measures
(a)
(b)
(c)
(d)

quantity and quality of effort

cognition, education and decision accountability
education, experience, and problem-solving skills
initiative, creativity, and risk-taking

25. MULTICOMP uses which statistical method to evaluate questionnaire responses

(a)
(b)
(c)
(d)

factor analysis
two-factor theory
multiple regression analysis
cluster analysis

26. The Weighted job questionnaire asks questions about five core job factors. This includes all

of the following except

(a) work attitudes
(b) working conditions
(c) problem solving
(d) skill and knowledge
27. When selecting a job evaluation approach the HR manager should consider
(a) ease of use
(b) provider support
(c) flexibility
(d) size of organisation

28. Which of the following is not a frequent criticism of job descriptions

(a)
(b)
(c)
(d)

incompatibility with the organisations strategic business objectives and culture

difficulty of comprehension
negative attitudes of employees in supplying accurate information
time spent on writing the description

29. If inaccurate or incomplete job descriptions were used as a guide in HR decision

making it can
(a)
(b)
(c)
(d)

cloud employee roles and organisational objectives

help to make objectives and strategies more flexible
ensure the appointment of employees with the right skills and abilities
result in job descriptions being totally ignored

30. The main purpose of a salary survey is

(a)
(b)
(c)
(d)

as the vehicle used by most job evaluation systems to translate words into numbers
to relate the organisations salaries to those for similar jobs in other organisations
to attract and keep the desired quality mix of employees
to comply with legal requirements

31. The salary survey provides information on

(a)
(b)
(c)
(d)

compensation packages offered by the competition

minimum award rates as determined by the Government
base salaries and benefits
bonus and incentive schemes used to enhance employee motivation

32. The information provided in the salary survey can be used by the HR manager to
(a) determine overall labour costs
(b) highlight how HR activities have reduced labour costs
(c) assess the contribution of each job holder to the achievement of organisational
objectives
(d) calculate the organisations competitive position and plan any corrective action
required
33. The salary survey helps to ensure
(a)
(b)
(c)
(d)

appropriate compensation is offered to new entrants

external equity is achieved and maintained
that a perception of fairness is achieved
employees are not over or underpaid

34. An essential tool in salary administration that presents all salary ranges over the
whole spectrum of job sizes is
(a)
(b)
(c)
(d)

salary structure
graphic rating scales
effort-reward differentiation
salary review chart

35. The salary range

(a) graphically depicts the salaries currently being paid for jobs, related to job size
(b) presents all salary ranges over the whole spectrum of job sizes

(c) sets the minimum and maximum scheduled amounts paid for a job at a particular job size
(d) identifies the standard salary, and how much above or below that figure is being paid
for each job
36. The clustering of formerly numerous individual pay grades into a few broad pay
grades is known as
(a)
(b)
(c)
(d)

salary range
narrow banding
job evaluation
broadbanding

37. Organisations wanting to restructure and flatten, redefine career paths and encourage
personal growth through lateral job movement may make use of which pay system
(a)
(b)
(c)
(d)

standard salary range

broadbanding
salary structures
job evaluation

38. Which of the following is not one of the basic market postures that an organisation
uses to position itself in the pay market
(a)
(b)
(c)
(d)

pay above market average

pay market average
pay below market average
pay determined by yearly profits

39. A graphical representation of the organisations predicted salary midpoints for the
12-month period ahead is known as
(a)
(b)
(c)
(d)

a salary policy line

a salary structure
a salary range
a salary curve

40. Inequities in compensation can:

(a)
(b)
(c)
(d)

Und
lead to internal competition
have a negative impact on morale and motivation
reduce the organisations ability to attract high quality employees
promote increased employee performance

41. Pay secrecy can

(a)
(b)
(c)
(d)

generate mistrust of the compensation program

reduce employee motivation and inhibit the organisations effectiveness
increase commitment and loyalty to the organisation
both (a) and (b)

42. When the difference in pay rates between jobs is too small employees may feel
(a)
(b)
(c)
(d)

unmotivated to improve performance

pay secrecy exists
pay compression exists
pay inequities exist

43. Executive remuneration has increased rapidly because of all of the following except
(a)
(b)
(c)
(d)

talent shortages
performance
executive salary disclosures
globalisation

44. An organisation that uses length of time on the job to determine pay levels and
increases is using
(a) seniority-based pay
(b) pay-for-performance
(c) merit-based pay
(d) skill-based pay
45. Merit pay aims to

(a) develop a productive, efficient, effective organisation that enhances employee

motivation and performance
(b) reward employees for their commitment and loyalty to the organisation
(c) encourage employees to gain additional skills, competencies and knowledge that will
increase their personal satisfaction and value to the organisation
(d) ensure that salary packages offered by the organisation are competitive
46. An effective pay-for-performance system should
(a)
(b)
(c)
(d)

be competitive
eliminate the need for performance appraisals
create a link between reward and performance
encourage initiative and creativity

47. An advantage of skill-based pay is claimed to be that

(a) if too many skills are permitted the plan may become too complex and thus
difficult to administer and for employees to understand
(b) employees trained in several different jobs may not be able to perform all of them
better than a group of workers trained only in one job
(c) some employees may not have the ability or the desire to acquire new skills or
knowledge and therefore may resist skill based pay
(d) multiskilling reinforces a high involvement management style, in which employees are
given responsibility
48. To determine the appropriate salary increases for an employees performance the
organisation matches
(a)
(b)
(c)
(d)

the salary index and performance index

effort and performance ratings
merit based index and performance evaluation
performance increases and work attitude

49. Which of the following is not one of the main types of salary review

(a)
(b)
(c)
(d)

flexible-date reviews
fixed-date reviews
job specialisation reviews
anniversary reviews

50. Which of the following does not have to be considered when determining
promotional increases
(a)
(b)
(c)
(d)

the probability of future promotions

the employees age and length of service
the salaries of other employees at the new job level
the average salary for equivalent positions in other organisations within the same
industry

Chapter 13 : Incentive Compensation

Multiple Choice Questions
1.

Compensation that is linked to performance by rewarding employees for actual

results achieved instead of seniority or hours worked is known as
(a)
(b)
(c)
(d)

2.

Many CEOs often receive bonus payments

(a)
(b)
(c)
(d)

3.

pay-for-performance
incentive compensation
performance bonus
fringe benefits

regardless of whether performance agreements are in place

that are tied to effort not results
whether organisations have performed well or not
(a) and (c)

What percentage of an executives remuneration is fixed at Harvey Norman?

(a)
(b)
(c)
(d)
5.

A pay plan that is designed to directly link rewards to the contributions made by an
individual employee is known as
(a)
(b)
(c)
(d)

7.

35%
69%
20%
12%

pay-for-performance
contribution-based pay
skill-based pay
results-based pay

Incentive pay plans are used by organisations because

(a) it is a simple, easy to understand method of evaluation
(b) it is a useful way of identifying those employees who are not performing at an
acceptable standard
(c) employees who are rewarded in this method are more loyal and committed to the
organisation
(d) they can focus employee attention on those objectives that the organisation wishes to
reinforce

8.

If you were designing a performance-based pay system you need to

(a)
(b)
(c)
(d)

9.

make sure that it reduces the organisations overall labour costs

ensure that it is straightforward in design and simple to communicate
involve all employees in the design and decision-making process
conduct a detailed review of employee performance standards

Which of the following is not a reason organisations introduce incentive

compensation
(a) to encourage employees to undertake further training and development

(b) to encourage individual, team or business unit performance

(c) to control fixed compensation costs
(d) to increase remuneration competitiveness
10. A plan whereby employees share in the company profits is
(a)
(b)
(c)
(d)

at-risk compensation
profit sharing
commission bonus
performance bonus

12. If you were using an incentive compensation system you would measure senior
manager performance against
(a)
(b)
(c)
(d)

the cost reductions achieved during the last evaluation period

the level of employee job satisfaction and turnover rates
the overall financial performance of the business unit under their control
responses from customers indicating their level of satisfaction with the goods and
services provided

13. Variable performance pay system can be all of the following except
(a)
(b)
(c)
(d)

recognition programs
individual
small group
specialty based

15. Research suggests that employees perceive a weak link between

(a)
(b)
(c)
(d)

performance and pay

position and pay
effort and performance
pay and length of service

16. The relationship between employee control and influence over the end result is referred to
as
(a)
(b)
(c)
(d)

goal focused behaviour

line of sight
directed control
results focus

18. An important principle in the design of at-risk incentive systems is that

(a) no more than 23% of an employees total compensation can be at risk
(b) the employee must have the opportunity to earn more than the target amount
(c) the performance target and the at-risk component of an employees compensation be
determined by the employee
(d) to ensure equity and fairness all employees within the organisation must come under
the same system

19. Two conditions need to be present for individual incentive plans to be successful. They are
(a) 1. There is a requirement that the organisation emphasises individual and group
contribution, as distinct from organisational contribution.
2. The job must be designed to allow each employee to work independently and with a
high degree of autonomy and discretion.
(b) 1. There is a requirement that the organisation emphasises individual contribution, as
distinct from team or work group effort.
2. The job must be designed to allow each employee to work independently or as an
integral part of a team.
(c) 1. There is a requirement that the organisation emphasises individual contribution, as
distinct from team or work group effort.
2. The job must be designed to allow each employee to work independently and with a
high degree of autonomy and discretion.
(d) 1. There is a requirement that the organisation emphasises individual and group
contribution, as distinct from organisational contribution.
2. The job must be designed to allow each employee to work independently or as an

integral part of a team.

20. A door-to-door sales representative, whose pay consists only of a commission on sales
revenue or volume is working under
(a)
(b)
(c)
(d)

a performance bonus system

a piece-rate system
a profit sharing incentive
an individual incentive pay system

21. That part of pay that is not guaranteed and is at risk is known as
(a)
(b)
(c)
(d)

the variable pay component

a performance bonus
results-based incentives
a fringe benefit

22. The criteria used to set performance objectives in relation to individual incentive
plans include all of the following except
(a)
(b)
(c)
(d)

internal benchmark
customer satisfaction
strategic business objectives
external benchmark

23. The most common form of variable pay used in Australia is

(a)
(b)
(c)
(d)

the performance bonus

contribution-based pay
individual incentive plans
gainsharing

24. An advantage of an individual incentive plan is that

(a) it may encourage individualism and non-productive competition
(b) where improvements by one employee are offset by poor performance by another, the

organisation is no better off

(c) it can sometimes end up paying for performance that would have been achieved
without an incentive plan
(d) it discriminates in favour of high performers
25. Which of the following is not an advantage of an individual incentive plan
(a)
(b)
(c)
(d)

provides a clear link between individual pay and work contribution

may encourage individualism and non-productive competition
links total compensation costs to organisational objectives
can have significant impact on key performance indicators such as productivity, quality
and sales

26. When designing and implementing an individual incentive plan you need to consider
all of the following except
(a)
(b)
(c)
(d)

ability to attract job applicants

frequency of rewards
clear goals and design simplicity
the need for periodic review

27. Performance tracking and management systems are important aspects of the
individual incentive plan as they
(a)
(b)
(c)
(d)

help management to budget for labour costs

provide an indication of employee attitudes regarding incentive pay plans
assist employees to maximise their performance and earning opportunities
identify any flaws in the current plan and help to correct problems

28. A periodic review of the individual incentive plan

(a) ensures that the plan continues to meet the organisations objectives and employee
needs
(b) ensures that the incentive plan can be funded from increases in productivity
(c) provides employees with the opportunity to see how they are performing compared to
the previous year
(d) identifies areas where the organisation could provide training and development
opportunities that will help employees improve their performance

29. An organisation uses complex technology requiring specific purpose project teams.
Secondly, this organisation has a flat structure with a culture characterised by employee
involvement and a supportive management style. This organisation would most probably
utilise
(a) small group incentives
(b) individual incentive plans
(c) recognition plans
(d) organisation wide incentive plans
30. Because small group incentives focus on team accomplishments rather than
individual ones they are able to
(a)
(b)
(c)
(d)

increase job satisfaction

increase performance
decrease competition and conflict between different work groups
increase flexibility in job assignments

31. A small group incentive system that shares the productivity improvements with the
employees who make them is a definition of
(a)
(b)
(c)
(d)

recognition program
profit share
gainsharing
bonus payment

32. The Scanlon Plan is a type of

(a)
(b)
(c)
(d)

profit sharing
gainsharing
bonus management
individual incentive

33. A gainsharing plan that is designed to link employee rewards to the firms
performance is

(a)
(b)
(c)
(d)

the Hay Guide to job evaluation

the Watson Wyatt performance review portfolio
the Scanlon Plan
Rucker Plans

34. The Scanlon Plan emphasises

(a)
(b)
(c)
(d)

employee goal setting and development

participative management and employee involvement
flexibility in job assignments and employee autonomy
employee morale and motivation

35. A gainsharing plan that calculates employee gains using a value-added formula is
(a)
(b)
(c)
(d)

the Scanlon Plan

the Line of Sight Plan
the piece-rate plan
the Rucker Plan

36. Total Quality management involves

(a) an organisation-wide commitment to continuous improvement and satisfying
customer needs
(b) focusing on acquiring the highest quality raw materials for the production process
(c) providing quality training and development activities for employees to improve their
chances of adding value to the organisation
(d) both (b) and (c)
37. Any salary increase awarded to an employee based on their individual performance
is known as
(a)
(b)
(c)
(d)

performance-based pay
bonus pay
merit pay
profit sharing

38. The TQM approach that links pay and quality has the advantage of
(a)
(b)
(c)
(d)

providing a simple and logical basis for an incentive pay system

keeping incentive payments to an acceptable level
allowing regular reviews of team progress
giving a perception of complexity and sophistication that reinsures employees of its
fairness

39. The shift towards an increased emphasis in the use of teams and work groups is an
illustration of
(a)
(b)
(c)
(d)

decentralised decision-making
a devaluation of responsibilities
workplace redesign
restructuring

40. The key performance measures for project work are

(a)
(b)
(c)
(d)

product quality and employee satisfaction

reduction in production costs and product quality
increased productivity and lower labour costs
task completion on time and within budget

41. An advantage of small-group incentive plans is that it

(a)
(b)
(c)
(d)

reduces emphasis on employee performance

provides a clear link between group performance and reward
allows poor performers to be carried by the group
can sometimes mean organisations end up paying for performance that would have
been achieved without an incentive plan

42. Which of the following is not a disadvantage of small-group incentive plans

(a) reduces emphasis on employee performance
(b) organisations can sometimes end up paying for performance that would have been

achieved without an incentive plan

(c) allows greater use and flexibility of team members
(d) allows poor performers to be carried by the group
43. Of the following statements, which is not a consistent criticism of the use of bonus plans
(a)
(b)
(c)
(d)

they do little to influence individual performance

they are often seen as a right and as a form of deferred pay
high performing employees often feel their contributions are not sufficiently recognised
they promote a positive organisational image

44. If you were using organisation-wide incentive plans as a motivation tool you would use
which two performance indicators to determine incentive payments
(a)
(b)
(c)
(d)

profit and achievement within budget

productivity and quality improvements
reduction in downtime and lower employee turnover
lower costs of production and increased output

45. A disadvantage of large-group incentive plans is that they

(a) promote a positive organisational image
(b) have a long line of sight because only a few employees can directly influence the end
result
(c) encourage employee identification with organisation-wide objectives
(d) control part of remuneration costs if reward is contingent on meeting objectives
46. Incentive programs that make use of rewards such as cash, merchandise, travel,
certificates and the like are known as
(a)
(b)
(c)
(d)

bonus incentive schemes

profit sharing schemes
recognition programs
pay for performance programs

c
Fac
L

47. An advantage of recognition programs is that they

Und
(a) can involve high administrative costs and time
(b) may lead employees to lose motivation if they feel they cannot ever win
(c) may be seen as favouritism if system allows for repeat winners
(d) have the added psychological value associated with peer recognition
48. The first step in designing an effective incentive pay system is

(a)
(b)
(c)
(d)

after the system has been trialed for a minimum of six months
through a process of negotiation with employees
by an examination of packages offered by competitor organisations
at the design stage

50. Incentive plans are generally funded through

(a)
(b)
(c)
(d)

Und
to determine the budget allowance for incentives
M
to define the required performance criteria
to discuss incentive choices with all employees
to provide explanatory sessions so that all employees are aware of how the incentive
system works

49. How base pay and the incentive system fit together to form the total reward framework
needs to be determined
(a)
(b)
(c)
(d)

increased profits and reduced expenses

increased customer satisfaction and increasing share values
the sale of surplus assets and product innovation benefits
both (b) and (c)