Human Resource Management
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Course Introduction
Human Resource Management explores the strategic and operational roles of HR professionals in modern organizations. This course examines the key functions of human resource management, including recruitment and selection, training and development, performance appraisal, compensation and benefits, legal compliance, and labor relations. Students will learn how to align HR practices with organizational goals, enhance workplace diversity and inclusion, and foster a positive organizational culture. Emphasis is placed on ethical decision-making, employee relations, and the impact of globalization and technology on HR practices. Through case studies and real-world scenarios, students develop practical skills in problem-solving and effective management of human capital.
Recommended Textbook
Strategic Compensation in 4th Canada Edition by Richard Long
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Page 2
Chapter 1: A Road Map to Effective Communication
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Q1) Identify the steps in developing an effective compensation strategy.
Answer: Now that we have some basic ideas on compensation,rewards,employee needs,and goals of an effective compensation system,we need to look at the process for creating an effective compensation system. These steps are:
1) Understand your organization and your people.
2) Formulate your reward and compensation strategy.
3) Determine your compensation values.
4) Design your performance pay and indirect pay plans.
5) Implement,manage,evaluate,and adapt the compensation system.
Q2) A reward strategy is the plan for the mix of rewards to be provided to organization members along with the means through which they will be provided.
A)True
B)False
Answer: True
Q3) The main similarity between extrinsic rewards and intrinsic rewards is that they both flow from job content.
A)True
B)False
Answer: False
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Chapter 2: A Strategic Framework for Compensation
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Q1) What can you determine by examining a firm's contextual variables?
A) the managerial strategy a firm is actually using
B) the best type of structure for the organization
C) the firm's competitive advantage
D) organizational goals
Answer: B
Q2) Which of the following dimensions is not a structural variable?
A) job design
B) coordination/departmentation
C) reward systems
D) corporate strategy
Answer: D
Q3) Which of the following key cultural values would be detrimental to a high-involvement organization?
A) honesty
B) trustworthiness
C) doing things the way they have always been done
D) open communication
Answer: C
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Page 4
Chapter 3: A Behavioural Framework for Compensation
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Q1) Which of the following factors is not considered to be part of the expectancy theory?
A) Valence
B) Hygiene
C) Instrumentality
D) Expectancy
Answer: B
Q2) Which of the following rewards reinforces continuance commitment?
A) Portable pension plans
B) Seniority-based pay increases
C) Fixed term contracts
D) Matching competitor pay levels
Answer: B
Q3) Which of the following refers to content theories of motivation?
A) Theories based on reinforcement theories
B) Theories that focus on managerial strategies
C) Theories that focus on understanding the means by which people make choices
D) Theories that focus on human needs
Answer: D
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5
Chapter 4: Components of Compensation Strategy
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Q1) Which of the following conditions make it impractical to use output-related pay?
A) Output is easy to measure.
B) Output is very stable.
C) Output cannot be controlled by the individual employee.
D) Output is easy to price in terms of its value to the employer.
Q2) Why would an employer prefer to use base pay over output-related pay?
A) It allows the employer some flexibility in the allocation of tasks.
B) It guarantees employee performance.
C) The need for task behaviour is high.
D) It provides the employer flexibility of labour costs.
Q3) As an employer you believe it is always a good idea to pay people for their contributions to organizational results.Which of the following pay plans should you consider implementing?
A) Indirect pay
B) Base pay
C) Pay for knowledge
D) Performance pay
Q4) An advantage of performance pay is that workers are paid less this way.
A)True
B)False
Page 6
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Chapter 5: Performance Pay Choices
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Q1) Attendance programs are less risky for organizations in which intrinsic motivation is low in the first place.
A)True
B)False
Q2) Which of the following statements best describes a merit raise?
A) A promise of future payments
B) A permanent pay raise that recognizes past performance
C) An increase that is tax exempt
D) A lump sum reward for past performance that does not increase base pay
Q3) Which of the following managerial practices,combined with an employee stock plan,will increase the performance effects of employee ownership?
A) Sharing financial information about the company
B) The use of work teams
C) Training and development
D) Employee participation in decision making
Q4) Profit sharing plans can reduce the need for employee supervision.
A)True
B)False
Q5) Identify and briefly explain the nature of individual performance pay plans.
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Chapter 6: Formulating the Reward and Compensation Strategy
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Q1) By paying employees 5% below the base pay market,you are using what type of compensation policy?
A) Lag
B) Lead
C) Match
D) Low cost
Q2) When we discuss labour market constraints what are we specifically referring to?
A) Union constraints on labour allocation
B) Availability of employees versus demand
C) Cost of living constraints on pay demands
D) Managerial strategy in recruitment methods
Q3) Which of the following issues is not covered by employment standards legislation?
A) Minimum wage
B) Employment equity
C) Hours of work
D) Statutory holidays
Q4) Briefly summarize the legislative framework that compensation must comply with.
Q5) What are the four special employee groups discussed in the text,and what are some the implications for compensation?
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Chapter 7: Evaluating Jobs: the Job Evaluation Process
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Q1) Which of the following statements best defines job analysis?
A) determination of necessary employee qualifications
B) a summary of duties and other job issues
C) the process for gathering information for job descriptions
D) a committee driven process for ranking the value of different jobs
Q2) Two methods of job evaluation are ranking/paired comparison and classification/grading.
A)True
B)False
Q3) Which of the following is not one of the methods of job evaluation discussed in the text?
A) ranking method
B) forced distribution method
C) factor comparison method
D) statistical/policy capturing method
Q4) Which of the following is not a potential pitfall in conducting job analysis?
A) analyzing the jobholder rather than the job
B) gender bias
C) use of technical language
D) use of incorrect bench mark jobs
Page 9
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Chapter 8: Evaluating Jobs: the Point Method of Job Evaluation
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Q1) Which of the following is not one of the methods that can be used in establishing pay grade sizes?
A) equal interval approach
B) equal increase approach
C) equal percentage approach
D) equal spread approach
Q2) Which of the following best explains how to establish pay grade sizes using the telescopic approach?
A) Look for natural breaks between clusters of jobs when setting up the grades.
B) Increase the grade widths for higher-value jobs but not necessarily by an equal percentage.
C) Reduce the number of pay grades by creating large bands.
D) Make the point spreads equal for all pay grades.
Q3) Briefly describe the main pitfalls in designing a point method system of job evaluation.
Q4) Identify and briefly describe the main steps in developing a job evaluation system using the point method.
Q5) Discuss the advantages and disadvantages of the point method of job evaluation.
Q6) What are the key considerations in establishing pay grades and pay ranges?
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Chapter 9: Evaluating the Market
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Q1) In regard to compensation market data,the key thing an employer needs to know is what its competitors are paying their employees.
A)True
B)False
Q2) In analyzing compensation survey data,a key element is the mean base pay.
A)True
B)False
Q3) Which of the following describes a compensating differential?
A) an adjustment to job rates based on survey results
B) an adjustment to gender specific jobs
C) offering more compensation to overcome undesirable aspects of the job
D) assessing the distribution of employees within their pay range
Q4) Identify and briefly describe the four main steps in conducting a compensation survey.
Q5) According to the text,sources of compensation market data include government agencies,trade journals,and compensation consultants.
A)True
B)False
Q6) Briefly describe the process for analyzing and interpreting survey data.
Page 11
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Chapter 10: Evaluating Individuals
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Q1) One hindrance to generating accurate performance appraisals is that raters often believe that it is more important to achieve their intended result than to produce accurate ratings.
A)True
B)False
Q2) A major reason why performance appraisals may not work effectively is that they are applied in circumstances which are not appropriate.
A)True
B)False
Q3) Peer appraisals are more accurate than supervisory appraisals.
A)True
B)False
Q4) As a peer appraiser,why might you be tempted to give your colleagues a low rating?
A) rating errors can be balanced out
B) a limited amount of merit pay is available
C) conflict and ill will among peers is reduced
D) you all can benefit if you rate each other low
Q5) Define and describe the key elements of performance management.
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Chapter 11: Designing Performance Pay Plans
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Q1) What do profit-sharing firms tend to have in common?
A) They are privately held corporations.
B) They are high-involvement firms.
C) They are industry-specific.
D) They are non-union firms.
Q2) The first issue in designing a goal-sharing plan is to determine the levels necessary to trigger a bonus payout.
A)True
B)False
Q3) Which of the following is not an example of a nonmonetary award?
A) a day off for perfect attendance
B) a pat on the back for a job well done
C) a company picnic
D) an all expenses-paid-holiday
Q4) Which of the following conditions makes a gain-sharing plan not viable and requires you to consider another option?
A) No valid historical benchmark can be set.
B) Employee involvement is not an integral part of the system.
C) The plan involves large expenditures to implement.
D) Employees receive only 50 percent of the share.
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Chapter 12: Designing Indirect Pay Plans
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Q1) An important question to ask in determining the structure of each benefit is "who will pay for it?"
A)True B)False
Q2) Defined benefits plans are intended to provide guaranteed income from retirement to death.
A)True B)False
Q3) Describe the main issues in designing the benefits system.
Q4) In developing a benefits system,the first issue is determining the structure of each benefit.
A)True B)False
Q5) From an employee's point of view,what advantage do defined contribution plans have over defined benefit plans?
A) the employer assumes the risk of investments
B) tend to be more portable
C) provides a higher pension for those who join the company later in life
D) risk is averaged over a large group of employees
Q6) Identify and briefly explain the most common and important employee services.
Page 14
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Chapter 13: Activating and Maintaining an Effective Compensation System
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Q1) Which of the following is not considered a way to evaluate the impact of the compensation system?
A) impact on compensation objectives
B) impact on compensation costs
C) impact on employee behaviours and attitudes
D) impact on key strategies
Q2) Discuss the advantages and disadvantages of outsourcing compensation administration,as well as the factors involved in deciding outsourcing policy.
Q3) Which of the following actions is not a way to contain compensation costs?
A) Enact a hiring freeze.
B) Contain benefit costs.
C) Replace some raises with bonuses.
D) Replace variable pay with fixed pay.
Q4) What is a major issue for most organizations when planning for information technology?
A) whether to use computers
B) whether to use consultants
C) how advanced the system should be
D) whether to protect employee privacy
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