Racial & Ethnic Groups defines the culture ofpoverty as “a way of life that involves no future planning, noenduring commitment to marriage, & no work ethic; this culturefollows the poor even when they move out of slums or barrios.” Doyou believe there is such a thing as a culture of poverty?Explain.
1. In 2003, a company employee received an option to purchasethe company’s stock at $45 per share. If
the stock is trading at $40 a share in 2005, the employee will mostlikely
A. try changing the price in the original option agreement toimprove the stock’s performance.
B. exercise the option, receiving a gain of $40.
C. exercise the option, receiving a gain of $5.
D. hold on to the option, hoping the stock price will increase inthe future.
2. Three of the following are vesting rights. Which is not avesting right?
A. In most cases, a waiting period of no more than five years or athree- to seven-year period, with 20 percent in the third and
each year thereafter
B. The right to a pension at retirement
C. The right to a pension regardless of whether or not the employeeremains with the employer until retirement
D. A guarantee that the employer won’t switch the pension plan fromdefined-benefit to defined-contribution plan
3. Quality guru W. Edwards Deming advocates the use of
A. stock options.
B. group incentives.
C. merit-pay systems.
D. piecework incentives.
4. Which of the following is a false statement about SocialSecurity benefits?
A. Eligibility rules must be met to receive benefits.
B. Benefits are taxed as ordinary income at both the federal andstate level.
C. Employers and employees share the cost of the program through apayroll tax.
D. Workers who meet requirements receive retirement benefitsaccording to age and earnings history.
5. Since the 1990s, the trend in larger public companies is togrant stock options to
A. all top and middle managers.
B. all employees.
C. all exempt employees.
D. only top management.
6. Which level of child care is most frequently provided byorganizations with 100 or more employees?
A. The organization operates a day-care center at or near theworkplace.
B. The organization offers no support within this area.
C. The organization provides vouchers or discounts for employees touse at existing child-care facilities.
D. The organization supplies and helps employees collectinformation about the cost and quality of available child care.
7. From which source do most retirees receive the largestpercentage of their retirement income?
A. Social Security
B. Earnings from personal assets
C. Private pensions
D. Disability insurance
8. Which of the following is a false statement about key jobs?
A. Key jobs are jobs on which it’s possible to obtain market-paysurvey data.
B. Key jobs have many incumbents within the organization.
C. Key jobs are common to many organizations.
D. Key jobs are relatively stable in content.
9. In response to the growing concern over ethical issuessurrounding incentive pay for executives, three of the followingactions have been taken. Which action has not been taken inresponse to the growing concern over ethical issues?
A. Imposing strict limits on insider trading
B. Requiring companies to more clearly report executivecompensation levels and the company’s performance relative to thatof
C. Using the balanced-scorecard to design executive pay andincentives
D. Limiting the amount companies may deduct for executive andperformance-related pay to no more than $1 million
10. Which of the following is a false statement about the FairLabor Standards Act?
A. Nonexempt employees are covered by FLSA and include most hourlyworkers.
B. The overtime rate under the FLSA is one and a half times theemployee’s hourly rate, including any bonuses and piece-ratepayments.
C. The FLSA permits a subminimum training wage equal to 85 percentof the minimum wage.
D. The FLSA requires federal contractors to pay prevailing wagerates.
11. An organization is adjusting pay to better match a local labormarket in which the cost of living is rising sharply. Theseadjustments are called
A. green-circle rates.
B. rank-and-file adjustments.
C. pay differentials.
12. Three of the following are objectives of the unemploymentinsurance program. Which is not an
objective of the unemployment insurance program?
A. To preserve investments in worker skills by providing incomeduring short-term layoffs
B. To offset lost income during involuntary unemployment
C. To offset lost income during a labor dispute
D. To provide an incentive for employers to stabilizeemployment
13. The Scanlon plan is a variation of which type of incentive?
C. Profit sharing
D. Merit pay
14. Organizations being squeezed between labor and product marketsneed to
A. couple pay policies with creative HR, production, and marketingmanagement to make workers’ contributions more valuable andproducts more profitable.
B. move their operations overseas.
C. move from job-based pay structures to skill-based pay systems,where employees are empowered and jobs are more enriched.
D. change their strategic mission and direction, moving to moreattractive industries.
15. On average, out of every dollar spent on compensation, about_______ cents go to benefits.
16. An employee produces 10 components in an hour and earns $8.00($.80 Ă 10), while an employee who produces 12 components per hourearns $9.60 ($.80 Ă 12). This arrangement is an example of a_______ plan.
Which of the following is not an advantage of leasingfor the lessee?
a. The lessor must bear the risk thatthe equipment will be obsolete even before it is returned at theend of the lease.
b. A lease usually has no restrictivefinancial covenants on the lessee; the primary duty is to make thelease payments on time.
c. The lessee must dispose of theequipment at the end of the lease.
d. An operating lease can lead to anincome tax deduction of the entire lease payment.
The objective of capital structure management is tomaximize the market value of the firmâs equity.
Penn Foter final Exam: 061683RR – PLANNING,PERFORMANCE
Questions 1 to 20: Select the best answer to each question. Notethat a question and its answers may be split across a page break,so be sure that you have seen the entire question and all theanswers before choosing an answer.
1. Which of the following is a correct statement about executivesearch firms?
A. Executive search firms almost exclusively find new jobs forpeople who are already employed.
B. Executive search firms aren’t subject to the requirements ofTitle VII.
C. Executive search firms work almost exclusively with high-level,unemployed executives.
D. Executive search firms typically require the person being placedto make the initial contact with the prospective employerdirectly.
2. Which of the following tests assesses how well a person canacquire skills and abilities?
B. Personality inventories
C. Cognitive ability
3. Which of the following correctly describes a phased-retirementprogram?
A. Giving older employees a certain time limit to voluntarilyretire
B. Laying off older employees in small batches
C. Giving lucrative incentives to a large number of older employeesso that they voluntarily retire
D. Reducing the number of hours the older employees work
4. The steps required to properly execute a workforce utilizationreview are
A. tremendously varied from organization to organization.
B. identical to the steps in the generic human resource planningprocess.
C. essentially the same as those involved in job analysis.
D. essentially the same as those involved in the strategic planningprocess.
5. Employers should ensure that their drug-testing programs conformto three of the following guidelines. Which is not a guideline towhich employers should ensure their drug-testing programsconform?
A. The testing should be routinely administered to all technicaland managerial functions across the organization.
B. The employer should send the reports of the results toapplicants along with information on how to appeal and retest.
C. The testing should be conducted in an environment that isn’tintrusive and allows for strict confidentiality of results.
D. The employer should use drug testing for jobs that involvesafety hazards.
6. Which of the following personnel policies is not relevant torecruitment?
A. Internal versus external recruiting
B. Administrative procedures
C. Image advertising
D. Lead-the-market pay strategies
7. According to the Training 2007 Industry Report, which trainingtask was outsourced the most?
B. Learner support
C. Need analysis
D. Custom content
8. Three of the following statements about the effects ofdownsizing are true. Which one is false?
A. Downsizing efforts guarantee an increase in organizationcompetitiveness.
B. Downsizing efforts eliminate people who turn out to beirreplaceable assets.
C. Employees who survive downsizing often become narrow-minded andrisk-averse.
D. Short-term cost savings often turn negative in the longterm.
9. The general method of establishing the validity of a selectionmethod by showing that there’s an association between scores on theselection measure and scores for job performance is called
A. reliability of the measurement and validation.
B. criterion-related validation.
C. content validation.
D. split-half estimate of validation.
10. The long-term success of diversity training is characterizedby
A. making sure that HRM practices meet standards of equalemployment opportunity laws.
B. unstructured programs.
C. training that’s tied to business objectives, such asunderstanding customers.
D. the number of minority or disabled employees on staff within theorganization.
11. In personnel forecasting, an effective HR professional triesto
A. anticipate trends within the HR field which are most likely toaffect the success of current company operations.
B. predict the number and types of legal challenges the company islikely to face within the year.
C. determine the supply of and demand for various types of humanresources.
D. develop HR policies and practices in response to anticipatedmoves by major competitors.
12. _______ identifies the tasks, knowledge, skills, and behaviorsthat training should emphasize.
A. Training-method analysis
B. Task analysis
C. Organizational analysis
D. Person analysis
13. Which of the following correctly describes a learningmanagement system?
A. The process of evaluating the organization, individualemployees, and employees’ tasks to determine what kinds oftraining, if
any, are necessary
B. A process of systematically developing training to meetspecified needs
C. A process for determining the appropriateness of training byevaluating the characteristics of the organization
D. A computer application that automates the administration,development, and delivery of training programs
14. Which of the following is found in a typical behavior-modelingsession?
A. Videotape of a model performing the key behavior, planningsession, coaching realistic game, and practice opportunities
B. Presentation of key behaviors, videotape of a model performingthe key behavior, participation in a case study group, and
C. Lecture, videotape of a model performing the key behavior,on-the-job coaching, and practice opportunities
D. Presentation of the key behaviors, videotape of a modelperforming the key behavior, role-plays, and a planning session
15. Which of the following is a permissible question forapplications and interviews?
A. Do you have children?
B. Do you have any disabilities?
C. What schools have you attended?
D. When did you attend high school?
16. To increase the readability of training materials, oneshould
A. combine two or more sentences into one long sentence
B. combine two or more paragraphs into one long paragraph.
C. add checklists and illustrations to clarify the text.
D. replace concrete words with abstract words.
17. To select a training service, the organization mails a(n)_______ to several vendors.
A. training-needs analysis
B. affirmative-action plan
C. request for training
D. request for proposal
18. Benefits of establishing objectives for a training programinclude three of the following. Which is not a benefit ofestablishing objectives for a training program?
A. Establishing objectives provides a basis for measuring thesuccess of the program.
B. Objectives help HR professionals identify the situationalconstraints within the organization.
C. The training program will be more focused and more likely tosucceed.
D. Employees learn best when they know what the training issupposed to accomplish.
19. Imagine that you manage a car dealership affiliated with one ofthe big three U.S. automakers. Given the increasing complexity andvariety of today’s automobiles, it’s impossible to train yourmechanics on the details of every potential repair problem. Thus,in cooperation with corporate headquarters, you have a trainingprogram whereby mechanics learn the basis of engine, emission, andother types of repair, but in the case of a particular problem,seek expert advice through an online computer application program.This approach is known as
A. an experiential behavior-modeling program.
B. a virtual-reality simulation training program.
D. an electronic performance support system.
20. The first step in the human resource planning process is
A. program implementation.
B. program evaluation.
C. goal setting.
1. The High Cost of Organizational Change. Discuss the followingissues
i. An employee survey has never been taken in this organization. Inthe charged atmosphere that appears to prevail, will the survey beperceived by participants as a means to report facts authentically,or will participants exaggerate the negative state of affairs,since they may view the survey as an instrument with which tocreate pressure. Would the report be unbiased when the researcheris in an environment where âhe consoles himselfâ with the goodwillof 500 cooperative employees, who tie their hopes to theproject?
The objective of capital structure management is tomaximize the market value of the firmâs equity.
The executives at CBC want to see how they are doing in ratingsagainst the other networks and how the ratings will continue tochange in the upcoming months. They also want to know if hiringstars makes a difference and the impact of fact based programmingcompared to hiring stars. You will create a PowerPoint presentationto answer the questions below. Remember that your audience is themanagement of CBC: Make sure your presentation is professional andprovides sufficient explanation.
ABC Inc. has just issued bonds with 9% semi-annual coupon rateand 11.5% yield to maturity and will mature at 11 years. The bondsare currently selling for $847. The bonds may be called in 3 yearsat $1045. What is the quoted annual yield-to-call for thesebonds?