Chapter 3: People, Decisions, and The Systems Approach

Test Bank

Multiple Choice

1. The ultimate goal of ______ is to enhance decisions.

A. systems theory

B. impression theory

C. utility theory

D. expectancy theory

Learning Objective: 3-1: Explain why it is important always to take into account the costs as well as the anticipated consequences of decisions.

Cognitive Domain: Knowledge

Answer Location: Costs and Consequences of Decisions--A Way of Thinking
Difficulty Level: Easy

AACSB: Making sound decisions

2. The appeal of utility theory lies in making decisions based on probability/available information rather than simply by ______.

A. chance

B. test scores

C. managerial judgment

D. money

Learning Objective: 3-2: Identify what makes decision or utility theory unique.

Cognitive Domain: Comprehension

Answer Location: Costs and Consequences of Decisions--A Way of Thinking
Difficulty Level: Medium

AACSB: Making sound decisions

3. According to the reading, utility theory forces the decision maker to do all the following EXCEPT ______.

A. enumerate the expected consequences or outcomes of decisions

B. clearly define his or her goal

C. attach differing utilities or values to each decision

D. continue with that decision/process regardless of new information that may develop

Learning Objective: 3-2: Identify what makes decision or utility theory unique.

Cognitive Domain: Comprehension

Answer Location: Costs and Consequences of Decisions--A Way of Thinking
Difficulty Level: Medium

AACSB: Making sound decisions

4. A(n) ______ is a collection of interrelated parts, unified by design, and created to attain one or more objectives.

A. process

B. strategy

C. analysis

D. system

Learning Objective: 3-3: Understand the difference between organizations as open versus closed systems.

Cognitive Domain: Knowledge

Answer Location: Organizations as Systems
Difficulty Level: Easy

AACSB: Application of knowledge

5. Currently, organizations are considered to be ______ systems, taking into account forces outside of the company’s control.

A. closed

B. open

C. internal

D. external

Learning Objective: 3-3: Understand the difference between organizations as open versus closed systems.

Cognitive Domain: Comprehension

Answer Location: Organizations as Systems
Difficulty Level: Easy

AACSB: Systems and processes in organizations

6. All of the following are considered part of the outside environment in open systems theory EXCEPT ______.

A. inputs

B. competitors

C. unions

D. technological developments

Learning Objective: 3-3: Understand the difference between organizations as open versus closed systems.

Cognitive Domain: Comprehension

Answer Location: Organizations as Systems
Difficulty Level: Medium

AACSB: Systems and processes in organizations

7. The various elements of staffing (e.g., recruitment, selection, and on-boarding) should be viewed as ______ for an organization to be successful.

A. independent

B. CEO driven

C. integrative

D. micro-level

Learning Objective: 3-4: Describe how concepts from supply-chain analysis might apply to the staffing process.

Cognitive Domain: Application

Answer Location: A Systems View of the Staffing Process
Difficulty Level: Medium

AACSB: Systems and processes in organizations

8. Organization T is in looking at the market to determine what kinds of trends are coming that might affect how they attract talent and need to replenish their workforce. This best represents which step in the staffing process?

A. building and planning

B. recruiting

C. selecting

D. on-boarding

Learning Objective: 3-4: Describe how concepts from supply-chain analysis might apply to the staffing process.

Cognitive Domain: Application

Answer Location: A Systems View of the Staffing Process
Difficulty Level: Medium

AACSB: Systems and processes in organizations

9. The basis for everything in the open systems, decision theory view of an organization comes from properly conducted ______.

A. employee selection

B. job analysis

C. workforce planning

D. organizational culture

Learning Objective: 3-6: Describe the employment process as a network of sequential, interdependent decisions.

Cognitive Domain: Comprehension

Answer Location: A Systems View of the Broader Employment Process

Difficulty Level: Medium

AACSB: Systems and processes in organizations

10. According to the decision tree presented in the reading about the employment process, what should a supervisor do if the applicant is considered to not have “acceptable” requirements for the job?

A. reject the applicant

B. give them more selection measures

C. train the applicant

D. carefully monitor the applicant’s performance

Learning Objective: 3-6: Describe the employment process as a network of sequential, interdependent decisions.

Cognitive Domain: Analysis

Answer Location: A Systems View of the Broader Employment Process

Difficulty Level: Medium

AACSB: Making sound decisions

11. ______ process provides the basis for figuring out how to compensate employees fairly based on the responsibility and skill (among other factors) of the relative jobs they do.

A. offering candidates

B. strategic workforce planning

C. performance appraisal

D. job evaluation

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Knowledge

Answer Location: Work Analysis

Difficulty Level: Easy

AACSB: Systems and processes in organizations

12. ______ phase of the staffing process typically comes between strategic workforce planning and the initial screening of employees.

A. selection

B. work analysis

C. training and development

D. recruitment

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Comprehension

Answer Location: Recruitment

Difficulty Level: Easy

AACSB: Systems and processes in organizations

13. If your organization is trying to hire a skilled programmer, with less qualified applicants available in the labor pool, the cost of recruiting is likely to be ______.

A. low

B. average

C. high

D. null

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Comprehension

Answer Location: Recruitment

Difficulty Level: Easy

AACSB: Systems and processes in organizations

14. A question asking potential applicants about their educational background or recent jobs will most likely be utilized in what phase of the staffing process?

A. work analysis

B. recruiting

C. initial screening

D. selection

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Comprehension

Answer Location: Initial Screening

Difficulty Level: Easy

AACSB: Systems and processes in organizations

15. Due to an initial screening question that was overly selective, my company passed on an employee that would have been very successful in the job. This is considered a(n) ______.

A. correct acceptance

B. correct rejection

C. erroneous acceptance

D. erroneous rejection

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Application

Answer Location: Initial Screening

Difficulty Level: Easy

AACSB: Systems and processes in organizations

16. Which of the following is generally considered the most costly and has the most salience where the organization can easily see that they made a poor decision?

A. correct acceptance

B. correct rejection

C. erroneous acceptance

D. erroneous rejection

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Comprehension

Answer Location: Initial Screening

Difficulty Level: Medium

AACSB: Making sound decisions

17. Personality inventories are most often used during which phase of the staffing process?

A. selection

B. initial screening

C. training and development

D. organizational exit

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Knowledge

Answer Location: Selection

Difficulty Level: Easy

AACSB: Systems and processes in organizations

18. In some rare cases, there is an extra step after selection for new employees who were not hired to do a specific job (i.e., in the military) but instead the decision of what job they will do is made by the organization at this point. This step is called ______.

A. training

B. development

C. placement

D. work analysis

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Knowledge

Answer Location: Selection

Difficulty Level: Easy

AACSB: Systems and processes in organizations

19. A ______ is a cluster of interrelated knowledge, abilities, skills, attitudes, or personal characteristics that are presumed to be important for successful performance on a job.

A. attribute

B. competency

C. KSAO

D. personal history

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Knowledge

Answer Location: Training and Development

Difficulty Level: Easy

AACSB: Application of knowledge

20. When an organization hires people whose characteristics closely match the knowledge and skills needed for the job, then less ______ is necessary.

A. job analysis

B. training

C. performance management

D. testing

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Comprehension

Answer Location: Training and Development

Difficulty Level: Medium

AACSB: Application of knowledge

21. Performance management in an organization may include all of the following EXCEPT ______.

A. observing on-the-job behavior

B. providing feedback

C. looking at objective data such as sales figures

D. administering personality inventories

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Analysis

Answer Location: Performance Management

Difficulty Level: Medium

AACSB: Systems and processes in organizations

22. If I am most interested in improving job performance levels on a daily basis for my subordinates, then I am MOST likely to employ ______.

A. performance management

B. performance appraisal

C. performance planning

D. performance prediction

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Knowledge

Answer Location: Performance Management

Difficulty Level: Medium

AACSB: Application of knowledge

23. In order to make judgmental performance ratings fair, they should be ______.

A. by untrained raters

B. focused on job irrelevant elements

C. free from bias and error

D. based on quickly designed instruments

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Comprehension

Answer Location: Performance Management

Difficulty Level: Easy

AACSB: Systems and processes in organizations

24. Retirement is an example of ______ organizational exit.

A. unexpected

B. voluntary

C. necessary

D. involuntary

Learning Objective: 3-8: Explain how organizational exit influences, and is influenced by, prior phases in the employment process.

Cognitive Domain: Knowledge

Answer Location: Organizational Exit

Difficulty Level: Easy

AACSB: Application of knowledge

25. All of the following are outcomes from layoffs on survivors mentioned in the reading EXCEPT ______.

A. employees are less likely to perceive fairness

B. employees are less likely to trust the organization

C. employees are less likely to commit to the organization

D. employees are less likely to work to maximize their own outcomes

Learning Objective: 3-8: Explain how organizational exit influences, and is influenced by, prior phases in the employment process.

Cognitive Domain: Knowledge

Answer Location: Organizational Exit

Difficulty Level: Medium

AACSB: Application of knowledge

26. What is the first step of strategic workforce planning?

A. develop a forecast of internal/external supply of talent

B. put control and evaluation procedures in place to provide feedback

C. do a talent inventory of your KSAOs of present employees

D. create action plans and programs

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Knowledge

Answer Location: Strategic Workforce Planning

Difficulty Level: Easy

AACSB: Systems and processes in organizations

Short Answer

1. Briefly explain a situation where you could make selection decisions based on an aptitude test, on either who to hire or how to onboard the applicants with various scores once they are hired.

Learning Objective: 3-1: Explain why it is important always to take into account the costs as well as the anticipated consequences of decisions.

Cognitive Domain: Application

Answer Location: Costs and Consequences of Decisions--A Way of Thinking
Difficulty Level: Medium

AACSB: Making sound decisions

2. Explain what a closed system is, and why it was criticized by modern researchers. Subsequently, what is an open system, and why it is more appropriate for modern organizations.

Learning Objective: 3-3: Understand the difference between organizations as open versus closed systems.

Cognitive Domain: Analysis

Answer Location: Organizations as Systems
Difficulty Level: Medium

AACSB: Systems and processes in organizations

3. Describe some improvements that could be made at various stages of the staffing process or ways to ensure more top talent get hired by your organization.

Learning Objective: 3-5: Explain what it means to optimize staffing outcomes.

Cognitive Domain: Application

Answer Location: Optimizing Staffing Outcomes
Difficulty Level: Medium

AACSB: Systems and processes in organizations

4. Describe the four major parts of strategic workforce planning.

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Knowledge

Answer Location: Strategic Workforce Planning

Difficulty Level: Easy

AACSB: Systems and processes in organizations

5. Explain why the cost of selection procedure does not necessarily mean more accurate predictions, as well as how to analyze whether a selection procedure is worth using.

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Comprehension

Answer Location: Selection

Difficulty Level: Medium

AACSB: Systems and processes in organizations

6. How do organizational exits influence prior phases in the employment process?

Learning Objective: 3-8: Explain how organizational exit influences, and is influenced by, prior phases in the employment process.

Cognitive Domain: Comprehension

Answer Location: Organizational Exit

Difficulty Level: Medium

AACSB: Systems and processes in organizations

Essay

1. Describe some of the decisions that organizations and human resource managers make. Further, how they are related to organizational effectiveness and viability?

Learning Objective: 3-1: Explain why it is important always to take into account the costs as well as the anticipated consequences of decisions.

Cognitive Domain: Analysis

Answer Location: Costs and Consequences of Decisions--A Way of Thinking
Difficulty Level: Hard

AACSB: Making sound decisions

2. Explain how different aspects of the staffing process interact with one another to help organizations make sound, fiscally advantageous decisions.

Learning Objective: 3-7: Identify key interactions among the various elements of the employment process.

Cognitive Domain: Analysis

Answer Location: Initial Screening

Difficulty Level: Hard

AACSB: Systems and processes in organizations