1) Performance management systems are important because they:
a. may be used to make compensation adjustments.
b. help identify areas where an employee may need further training or education.
c. create documentation related to disciplining or possibly terminating an employee.
d. can help managers make decisions about who to promote within the organization.
e. All of the above are correct.
2) When designing the performance evaluation for a chef, items such as “prepares food in a timely fashion” and “follows appropriate safety and sanitation guidelines” would be examples of:
a. contaminated performance measures.
b. performance dimensions.
c. deficient performance measures.
d. global performance measures.
e. performance standard.
3) An organization has an evaluation scoring method which includes three levels: excellent,
satisfactory, and poor. A manager has 3 employees and when evaluating them he must put
each employee in each of the categories, although he would really consider one of them
excellent and the other two satisfactory. This method of evaluation is known as:
b. paired comparisons.
c. forced distribution.
e. forced choice.
4) When employees are evaluated against a list of performance dimensions which have specific
and scored performance standards related to the employee’s attributes attached to them, the
evaluation method of __________________ is most likely being used.
a. forced distribution
b. graphic rating scale
c. direct measures
e. critical incident
5) All of the following statements about management by objectives is accurate EXCEPT:
a. it evaluates an employee’s actual performance against specific goals.
b. is a results-based approach.
c. employees may strive only to meet those targets and neglect other aspects of their jobs.
d. it is the preferred method to use when you want to compare employee performance.
e. goals can and should be linked to the overall goals and strategy of the organization.
Unit 3 Examination 176 BAM 510 Human Resource Management
6) In order to avoid discussing his poor performance, Edgar’s supervisor scored him as a “meets”
instead of a “needs improvement” on the performance standard related to the quality of his
work. This type of rating error is known as:
c. central tendency.
d. similar to me.
7) When setting up a feedback meeting with an employee it is important to keep all of the
following in mind EXCEPT:
a. focus on one set of job responsibilities rather than the whole spectrum of the employee’s
b. discuss both the positive and negative aspects of the employee’s performance.
c. focus on specific behaviors and outcomes rather than making personal comments.
d. ask employees for their input and concerns regarding their performance and goals.
e. consider holding a separate meeting for the evaluation and one to discuss development.
8) Which of the following statements is most accurate in regard to using disciplinary steps?
a. Every performance or behavior issue should be taken through all steps before terminating
b. Once a verbal warning occurs, a manager should complete a written warning to ensure they
have gotten through to the employee.
c. Focusing on what the employee needs to improve should only be part of an evaluation.
d. The employee is clear on where they stand and what they need to do to avoid further
e. Suspending an employee should be a step that is never skipped in the process.
9) Documenting employee performance is important for all of the following reasons EXCEPT:
a. so that the manager can keep accurate record of an employee’s accomplishments and
b. only documentation related to performance evaluations is relevant.
c. in order to have information to support why certain employment related decisions were
d. eliminate misperceptions or confusion about several employees’ performance outcomes.
e. to help avoid certain biases of an individual employee.
Unit 3 Examination 177 BAM 510 Human Resource Management
10) When using the point method of job evaluation, all of the following are ways to ensure the
objectivity of the method EXCEPT:
a. selecting appropriate benchmark jobs.
b. correctly identifying the compensable factors.
c. correctly using the point manual.
d. assigning appropriate weights to each compensable factor.
e. ranking benchmark jobs based on skill level required.
11) An organization following a differentiation strategy would most likely offer a compensation mix
which was made up of:
a. performance bonus.
b. comprehensive benefits.
c. annual salary.
d. b and c are correct.
e. All of the above.
12) When determining how to set their level of wages, an organization should consider:
a. lagging the market will lead to increased pay satisfaction.
b. paying at market will decrease the number of applicants.
c. paying at market will help control labor expenses.
d. leading the market will create turnover.
e. leading the market will not attract more or better applicants.
13) Technology has impacted compensation practices in all of the following ways EXCEPT:
a. how salary survey data is collected.
b. how to determine compensable time for employees who telecommute.
c. how expatriate pay rates are determined.
d. how compensation information is tracked.
e. how wage information is shared with employees.
14) To aid in determining what is compensable work time:
a. managers need to verify the accuracy of time records submitted.
b. consistently enforce a compensable time policy and discipline as appropriate.
c. clear polices should be in place explaining what is considered compensable time.
d. a and b are correct.
e. All of the above.
Unit 3 Examination 178 BAM 510 Human Resource Management
15) When jobs in an organization are valued against each other rather than against some external
standard of what is typically a “male” or “female” job, this is known as:
a. minimum wage.
b. internal equity.
c. living wage.
d. external equity.
e. comparable worth.
16) Since ABC Corp. instituted a quarterly bonus to each department that meets the goal of zero
product waste, their rework costs have declined substantially. This is an example of:
a. goal setting theory.
b. piecework theory.
c. reinforcement theory.
d. agency theory.
e. expectancy theory.
17) All of the following are examples of team or group incentive plans EXCEPT:
a. merit pay increase.
b. improshare plan.
d. scanlon plan.
e. profit sharing.
18) All of the following may be reasons not to pursue a profit sharing incentive plan EXCEPT:
a. the lag time between the work and actual reward may actually de-motivate employees.
b. employees may not see an incentive right away.
c. employees may be doing excellent work but the organizational objectives may still not be
d. competition affect a company’s profitability.
e. profit sharing is paid only when the organization is doing well which helps save labor costs.
19) When an organization contributes shares of its stock to a trust set up for its employees, this is
known as a(an):
a. leveraged employee stock ownership plan.
b. stock option plan.
c. broad based stock option plan.
d. employee stock ownership plan.
e. profit sharing plan.
Unit 3 Examination 179 BAM 510 Human Resource Management
20) When designing an incentive program in a global organization, all of the following should be
a. a country whose people are individualistic will prefer a gainsharing plan.
b. the different operational goals in each country should guide how an incentive program is
c. the standard of living in a country will impact an incentives valence.
d. the culture of a host country can impact what type of behavior warrants a reward.
e. both what is rewarded and how acceptable the reward is, impact whether global employees
will see the value of an incentive program.
21) In order to be eligible for unemployment insurance, an individual must do all of the following
a. meet their state’s eligibility requirements.
b. follow guidelines such as reporting income and job offers in order to remain eligible for
c. register with their state’s employment service for reemployment assistance or training
d. file a claim with the appropriate state unemployment insurance agency.
e. decline job offers for 26 weeks in order to remain eligible.
22) If an employer decides to self fund their insurance plan::
a. they contract with a carrier such as HealthAmerica or Blue Cross.
b. they have to follow some state requirements related to benefits.
c. they generally incur higher costs overall.
d. catastrophic illnesses are not a concern because there is always sufficient funds in the
plan to pay for those expenses.
e. they can avoid paying premiums and taxes on those premiums.
23) Emma is planning for her retirement and wants to have additional insurance which will pay for
any additional help she may need some day with regard to her own personal care, such as
eating and bathing. Emma should consider enrolling in _________________ insurance.
a. short term disability
b. long term care
c. long term disability
e. point of service
Unit 3 Examination 180 BAM 510 Human Resource Management
24) In global organizations all of the following are typically true EXCEPT:
a. offering a health insurance benefit is common across countries.
b. executive ransom and kidnap insurance is common for multinational employees.
c. overseas countries typically do not offer generous time off programs.
d. social insurance programs in other countries, not just the U.S.have made changes that will
make programs stronger in the future.
e. supplemental health plans are being offered more with the increase of health care costs.
25) All of the following are accurate statements regarding HIPAA EXCEPT:
a. it permits an employee’s children under the ages of 18 to continue their health insurance.
b. the law permits coverage under a prior health plan to count for meeting a preexisting
condition requirement under a new plan as long as coverage is transferred within 63 days.
c. it includes provisions that only allow those who need to have access to an individual’s
medical information to access it.
d. an employer cannot share any health related information about employees with anyone else
without the employee’s permission.
e. it permits employees to have copies of the medical