Managing Human Resources Wayne Cascio 11th Edition- Test Bank

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Sample Test

Chapter 03

Talent Analytics: The Financial Impact of HR Activities

True / False Questions

1.	In business settings, it is hard to be convincing without data. True False

If employees have employers who invest in training programs that promote job challenge and learning, autonomy, supervisor task support, a climate of respect and trust, work-life fit, and economic security, they should be highly engaged, satisfied with their jobs, and should intend to stay.

True False

3.	Talent is not a key constraint to growth in many organizations. True False

4.	Application of the LAMP process reveals that it is a powerful tool for educating leaders outside of HR and for embedding HR measures into mental frameworks that provide the basis for meaningful people-related business decisions. True False

5.	At the level of the individual work unit, highly engaged employees cooperate with each other and devote extra effort to innovation, but they don’t adapt effectively to change. True False

6.	The purpose of the process component of the LAMP model is to make the insights gained as a result of costing employee absenteeism actionable. True False

7.	Total pay is synonymous with the fixed costs, variable costs, or opportunity costs of employee time. True False

8.	The objective in costing human resources is not just to measure the relevant costs but also to develop methods and programs to reduce the costs of human resources by managing the more controllable aspects of those costs. True False

9.	A state bases unemployment tax rates on each company’s turnover rate. Companies operating in this state will find that a lower turnover will lead to a higher unemployment tax rate. True False

10.	All activities associated with in-processing new employees are classified under training costs related to turnover. True False

11.	Informational literature, new-employee orientation, instruction in a formal training program, and instruction by employee assignment are the four training costs associated with turnover. True False

12.	A major cost associated with employee turnover is reduced productivity during the learning period of replacement. True False

13.	The purpose of measuring turnover costs is to build a case to present to stockholders. True False

14.	The time coworkers spend guiding a new employee does not need to be taken into account when considering the fully loaded cost of turnover. True False

15.	The ability to develop and share insights around the globe has become an increasingly important element of competitive advantage. True False

16.	The letters in LAMP stand for logic, assessment, metrics, and potential. True False

17.	The sum of two component costs—separation and replacement—represents the total cost of employee turnover for the period in question. True False

18.	The most dominant cause of absenteeism in the United States is family-related issues. True False

19.	The fully loaded cost of turnover excludes an exiting employee’s lost leads and contacts. True False

20.	From a business standpoint, absenteeism is any failure of an employee to report for or to remain at work as scheduled, regardless of reason. True False

21.	Competitors find it easier to imitate a highly skilled, committed, and fully engaged workforce than technology and processes. True False

22.	Global competition and the rapidly changing financial environment are driving the need to innovate constantly and effectively. True False

23.	Attitudes are internal states that focus on particular aspects of or objects in the environment. True False

24.	The behavior-costing approach to employee attitude valuation is based on the assumption that measures of attitudes are indicators of subsequent employee behaviors. True False

25.	The term “work-life” recognizes the fact that employees at every level in an organization face personal or family issues that can affect their performance on the job. True False

26.

Despite the popular perception of flexibility as a powerful business tool that can improve important human capital outcomes and boost operational performance, studies have shown that flexibility has to be essentially positioned as a “perk,” an employee-friendly benefit, or an advocacy cause.

True False

27.	The best managers identify the best talents available and then create appropriate positions for the talent. True False

28.	The best managers establish very clear objectives and define the steps for their employees. True False

29.	Rather than identifying workers’ weaknesses and attempting to fix them, where the gains will be short-lived, the best managers focus on strengths. True False

30.	A work-life program is any employer-sponsored benefit or working condition that helps an employee manage work and nonwork demands. True False

31.	The best managers continually encourage their employees to look in the mirror and assess themselves in order to find the kind of work that will bring out their best talents. True False

32.	Meta-analytic results (a quantitative summary of 59 studies) show that merely offering work-life programs is related to greater perceptions of organizational support, and these perceptions improve job attitudes and performance. True False

Multiple Choice Questions

33.

The LAMP model includes all of the following EXCEPT:

logic.

B.	analytics.

measures.

D.	probability.

34.

Identify a true statement about big data.

A.	It is the collection and analysis of the digital history created when people surf the Internet.

B.	It excludes tests and measures of aptitudes, behaviors, and competencies that employers compile about applicants.

C.	It is similar to the traditional approaches to analytics in terms of volume, velocity, and variety.

D.	It rarely provides insights into users who seek to gain competitive advantage in the marketplace.

35.

Scorecards, summits, dashboards, data mines, data warehouses, and audits are examples of the _____ component of the LAMP model.

analytics

measures

logic

process

36.

In the context of talent analytics, _____ is defined as a diagram that links investments in an HR program to financial and nonfinancial outcomes that decision makers care about.

A.	spiral diagram

B.	class diagram

C.	logic diagram

D.	round diagram

37.

_____ transform(s) HR logic and measures into rigorous, relevant insights.

Process

B.	Benchmarks

Analytics

D.	ABC costing

38.

The _____ component of the LAMP model begins with the assumption that employee turnover is not equally important everywhere.

A.	probability

analytics

process

logic

39.

What is the purpose of the process component of the LAMP model?

A.	To make the insights gained as a result of costing employee absenteeism actionable

B.	To measure the effectiveness of the HR department

C.	To show how to assess the costs and benefits of people-related business activities

D.	To improve management decision making

40.

_____ is the process of using data to influence key decision makers.

Logic

Analytics

C.	Probability

Process

41.

_____ is a core element of any change process.

Money

Education

Benefits

D.	Measurability

42.

Which of the following elements in separation costs includes removal of an employee from payroll?

A.	Increased unemployment tax

B.	Separation pay

C.	Exit interview

D.	Administrative functions related to termination

43.

In the context of the cost elements associated with replacing employees who leave an organization, accepting applications and checking references are examples of _____.

A.	pre-employment administrative functions

B.	entrance interviews

testing

D.	communicating job availability

44.

Which of the following cost elements associated with replacing employees who leave an organization includes functions ranging from determining if replacements are needed to reaching final hiring decisions?

A.	Entrance interview

B.	Staff meetings

Testing

D.	Communicating job availability

45.

In the context of the training cost elements associated with replacing employees who leave an organization, on-boarding is an example of _____.

A.	instruction in a formal training program

B.	cross-training

C.	new-employee orientation

D.	instruction by employee assignment

46.

In the context of costing employee absenteeism, _____ is an example of a direct cost.

A.	sick leave

delay

C.	reduced morale of coworkers

D.	lower productivity of replacement employees

47.

In the context of costing employee absenteeism, _____ is an example of an indirect cost.

A.	sick leave

B.	reduced morale of coworkers

C.	short-term disability

D.	long-term disability

48.

Any failure of an employee to report for or to remain at work as scheduled, regardless of reason is:

A.	protected under the FMLA.

B.	absenteeism.

turnover.

D.	allowed in work-life programs.

49.

_____ is a good example where an employee is absent and is simply not available to perform his or her job; that absence will cost money.

Vacation

Holiday

C.	Medically verified illness

Jury duty

50.

The leading cause of absenteeism in the United States is:

A.	entitlement mentality.

stress.

C.	family-related issues.

D.	personal illness.

51.

In the context of absenteeism, _____ includes various methodologies—for example, surveys and interviews with employees and supervisors—used to identify the causes of absenteeism and to estimate variation in absenteeism across different segments of employees.

A.	360-degree feedback

analytics

C.	action programs

process

52.

The combined effect of all costs associated with turnover can easily cost _____ percent or more of the departing person’s salary.

150

53.

_____ occurs when an employee leaves an organization permanently.

Transfer

Turnover

C.	Temporary layoff

D.	Downsizing

54.

The term _____ refers to low performers who are easy to replace.

A.	functional turnovers

B.	voluntary turnovers

C.	involuntary turnovers

D.	unconditioned turnovers

55.

What is the crucial issue in analyzing turnover?

A.	The number of transfers within an organization

B.	The number of employees that leave the organization

C.	The performance and replaceability of employees who leave versus those who stay, and the criticality of their skills

D.	Determining the total cost of all turnovers and estimating the percentage of the amount that represents controllable turnover

56.

Which of the following is NOT one of the broad categories of costs in the basic turnover costing model?

A.	Benefit costs

B.	Separation costs

C.	Training costs

D.	Replacement costs

57.

In the costing of employee turnover, the category of _____ costs includes the cost of the interviewer’s time and the cost of the terminating employee’s time.

training

B.	separation

C.	replacement

vacancy

58.

Which of the following is NOT a cost element associated with replacing employees?

A.	Medical examinations

B.	Communicating job availability

C.	Informational literature

D.	Travel and moving expenses

59.

Activities associated with in-processing new employees pertain to which of the following replacement cost elements?

A.	Travel and moving expenses

B.	Communicating job availability

C.	Pre-employment administrative functions

D.	Postemployment acquisition and dissemination of information

60.

According to the text, a major cost associated with employee turnover is probably:

A.	reduced productivity during the learning period.

B.	the per-person costs associated with replacements for those who have left.

C.	the total cost of a formal orientation program.

D.	reaching final hiring decisions.

61.

What is the purpose of measuring turnover costs?

A.	To show how to measure the effectiveness of the HR department

B.	To realize the financial impact of human resource management activities

C.	To improve management decision making

D.	To show how to assess the costs and benefits of people-related business activities

62.

Costs of employee absenteeism vary depending on the type of firm, the industry, and the:

A.	distribution of corporate resources.

B.	state unemployment tax rate.

C.	established absenteeism baseline.

D.	level of employee that is absent.

63.

The average employee in the United States has about _____ unscheduled absences per year.

1.8

3.2

5.4

64.

In the context of absenteeism, identify a true statement about measures.

A.	They include methodologies used to identify the causes of absenteeism.

B.	They refer to formulas.

C.	They focus on specific numbers.

D.	They refer to surveys and interviews with employees and supervisors.

65.

Which of the following statements defines the term “job satisfaction”?

A.	It is the assessment of the relative worth of jobs to a firm.

B.	It is the extent to which a performance measure is deemed satisfactory or adequate by those who use it.

C.	It is an approach that allows two employees to share a job’s responsibilities, which are normally handled by only one employee.

D.	It is a pleasurable feeling that results from the perception that a job fulfills or allows for the fulfillment of its holder’s important job values.

66.

_____ is an internal state that focuses on particular aspects of or objects in the environment.

Attitude

B.	Job Satisfaction

C.	Organizational Commitment

Logic

67.

_____ is a multidimensional attitude; it is made up of attitudes toward pay, promotions, coworkers, supervision, the work itself, and so on.

Attitudes

B.	Job satisfaction

C.	Organizational commitment

Logic

68.

_____ is the emotional engagement that people feel toward an organization.

A.	Local perspective

B.	Job satisfaction

C.	Organizational commitment

D.	Contrast effect

69.

Effective management practices drive _____.

A.	employee satisfaction

B.	customer satisfaction

C.	long-term profitability

D.	long-term growth

70.

Engagement fuels which of the following?

A.	Identification with the success of one’s company

B.	Discretionary efforts

C.	Concern for quality

D.	All of these

71.

Which of the following is NOT an element of attitudes?

A.	Satisfaction

Cognition

Action

Emotion

72.

Sysco developed a work climate/employee-engagement survey built around the:

A.	organizational goals.

B.	training and development.

C.	5-STAR principles.

D.	organizational mission.

73.

What led Sysco executives to pay attention to the human capital indices?

A.	A correlation between work climate/employee-engagement scores, productivity, retention, and pretax earnings

B.	A causation that higher sales lead to higher employee engagement

C.	The LAMP model

D.	The downturn in the economy

74.

A work-life program spans all of the following broad areas EXCEPT:

A.	information services and HR policies

B.	leave options

C.	rigid working conditions

D.	child- and dependent-care benefits

75.

_____ issues address the fact that employees at every organizational level face personal or family issues that can affect their performance on the job.

A.	Pay and benefit

Work-Life

C.	Training and development

D.	Family-life

76.

Nearly _____ percent of employees who are caregivers of an older relative also have children under the age of 18.

Essay Questions

77.	Explain the four critical components of the LAMP model.

78.	Talent analytics is a set of quantitative approaches that answer two simple questions.

79.	In the context of the components of turnover costs, list the eight cost elements associated with replacing employees who leave.

80.	What are the three broad categories of costs in the basic turnover costing model?

81.	Define employee attitudes and describe the elements that make up an individual’s attitude.

82.	The very best managers seem to share four key behaviors that help to trigger the 12 worker beliefs that underlie a profitable, productive workplace. Identify the four behaviors.

83.	List the five broad areas covered by work-life programs.

Short Answer Questions

84.	Describe the benefits of employee engagement.

85.	What are the three conditions under which reducing employee turnover tends to have the largest effects on organizational success?

86.	What are the three conditions under which increasing employee turnover tends to have the largest effects on organizational success?

87.	Name at least two of the four elements in separation costs.

88.	Describe the concept of behavior costing.

89.	What is the primary purpose of measuring turnover costs?

90.	What is a work-life program?

Chapter 03 Talent Analytics: The Financial Impact of HR Activities Answer Key

True / False Questions

1.	In business settings, it is hard to be convincing without data. TRUE

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 How can HR measures improve talent-related decisions in organizations?

TRUE

3.	Talent is not a key constraint to growth in many organizations. FALSE

4.	Application of the LAMP process reveals that it is a powerful tool for educating leaders outside of HR and for embedding HR measures into mental frameworks that provide the basis for meaningful people-related business decisions. TRUE

5.	At the level of the individual work unit, highly engaged employees cooperate with each other and devote extra effort to innovation, but they don’t adapt effectively to change. FALSE

6.	The purpose of the process component of the LAMP model is to make the insights gained as a result of costing employee absenteeism actionable. TRUE

7.	Total pay is synonymous with the fixed costs, variable costs, or opportunity costs of employee time. FALSE

8.	The objective in costing human resources is not just to measure the relevant costs but also to develop methods and programs to reduce the costs of human resources by managing the more controllable aspects of those costs. TRUE

9.	A state bases unemployment tax rates on each company’s turnover rate. Companies operating in this state will find that a lower turnover will lead to a higher unemployment tax rate. FALSE

10.	All activities associated with in-processing new employees are classified under training costs related to turnover. FALSE

11.	Informational literature, new-employee orientation, instruction in a formal training program, and instruction by employee assignment are the four training costs associated with turnover. TRUE

12.	A major cost associated with employee turnover is reduced productivity during the learning period of replacement. TRUE

13.	The purpose of measuring turnover costs is to build a case to present to stockholders. FALSE

14.	The time coworkers spend guiding a new employee does not need to be taken into account when considering the fully loaded cost of turnover. FALSE

15.	The ability to develop and share insights around the globe has become an increasingly important element of competitive advantage. TRUE

16.	The letters in LAMP stand for logic, assessment, metrics, and potential. FALSE

17.	The sum of two component costs—separation and replacement—represents the total cost of employee turnover for the period in question. FALSE

18.	The most dominant cause of absenteeism in the United States is family-related issues. FALSE

19.	The fully loaded cost of turnover excludes an exiting employee’s lost leads and contacts. FALSE

20.	From a business standpoint, absenteeism is any failure of an employee to report for or to remain at work as scheduled, regardless of reason. TRUE

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 If I want to know how much money employee turnover is costing us each year, what factors should I consider?
Learning Objective: 03-03 How do employees’ attitudes relate to their engagement at work, customer satisfaction, and employee retention?

21.	Competitors find it easier to imitate a highly skilled, committed, and fully engaged workforce than technology and processes. FALSE

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-03 How do employees’ attitudes relate to their engagement at work, customer satisfaction, and employee retention?

22.	Global competition and the rapidly changing financial environment are driving the need to innovate constantly and effectively. TRUE

23.	Attitudes are internal states that focus on particular aspects of or objects in the environment. TRUE

24.	The behavior-costing approach to employee attitude valuation is based on the assumption that measures of attitudes are indicators of subsequent employee behaviors. TRUE

25.	The term “work-life” recognizes the fact that employees at every level in an organization face personal or family issues that can affect their performance on the job. TRUE