

Industrial and Organizational Psychology
Exam Solutions
Course Introduction
Industrial and Organizational Psychology explores the application of psychological theories and principles to the workplace, focusing on understanding human behavior in organizational settings. This course covers topics such as employee selection, training and development, performance appraisal, motivation, job satisfaction, leadership, team dynamics, and occupational health. Students will examine methods for improving productivity, enhancing employee well-being, and creating efficient organizational systems, preparing them to address real-world challenges faced by organizations through evidence-based psychological practices.
Recommended Textbook
Human Resource Management 14th Edition by Robert L. Mathis

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Chapter 1: Human Resource Management in Organizations
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Sample Questions
Q1) Describe the four types of assets that organizations must manage to be successful. Answer: Organizations must manage four types of assets to be successful:
(a) Physical assets: Buildings, land, furniture, computers, vehicles, equipment, and so on.
(b) Financial assets: Cash, financial resources, stocks, bonds or debt, and so on.
(c) Intellectual property assets: Specialized research capabilities, patents, information systems, designs, operating processes, copyrights, and so on.
(d) Human assets: Individuals with their talents, capabilities, experience, professional expertise, relationships, and so on.
All these assets are important to varying degrees in different organizations. But the human assets are the "glue" that holds all the other assets together and guides their use to achieve results. Effective use of a firm's human capital may explain a significant part of the difference in higher market value between one company and another.
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3

Chapter 2: Human Resources Strategy and Planning
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Sample Questions
Q1) Which of the following is best classified as a regiocentric policy of strategic approaches to international staffing?
A) Managers from headquarters staff key positions.
B) Host-country nationals staff key positions.
C) An international cadre of skilled managers are assigned to global subsidiaries regardless of nationality.
D) Key positions are filled by individuals from the same geographic area as the subsidiary.
Answer: D
Q2) Which of the following is typically the last step in the strategic planning process for organizations?
A) Formulating supporting functional strategies
B) Evaluating and reassessing strategy
C) Establishing goals and objectives
D) Stating the organizational mission
Answer: B
Q3) Define severance benefits.
Answer: Severance benefits are temporary payments made to laid-off employees to ease the financial burden of unemployment.
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Page 4

Chapter 3: Equal Employment Opportunity
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Q1) Which of the following organizations must comply with rules and regulations that specific government agencies have established to administer the Equal Employment Opportunity Act of 1972?
A) Nongovernmental organizations with a minimum of 10 employees
B) State and local governments with more than 15 employees
C) Private organizations with a minimum of 10 employees
D) Labor unions with 5 or more members
Answer: B
Q2) Employers cannot discriminate on the basis of sex, religion, or national origin even if the characteristics can be justified as a bona fide occupational qualification.
A)True
B)False
Answer: False
Q3) The Family and Medical Leave Act (FMLA) of 1993 is applicable only to women.
A)True
B)False
Answer: False
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Chapter 4: Workforce, Jobs, and Job Analysis
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Q1) Which of the following is typically the first stage in the job analysis process?
A) Preparing for and introducing job analysis
B) Planning the job analysis
C) Conducting the job analysis
D) Developing job descriptions and job specifications
Q2) Contingent workers are full time employees.
A)True
B)False
Q3) A _____ identifies the tasks, duties, and responsibilities of a job.
A) job analysis
B) job description
C) job specification
D) job review
Q4) What is telework?
Q5) Marginal job functions are duties that are part of a job but are incidental or ancillary to the purpose and nature of the job.
A)True
B)False
Q6) What is work life balance?
Q7) Define job analysis.
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Chapter 5: Individualorganization Relations and Retention
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Q1) Which of the following statements is true about turnover?
A) It is illegal for an employer to continue to hire new employees while laying off other employees.
B) When key individuals leave the firm, the turnover is often functional because they no longer act as a brake on the introduction of new technology and new work processes.
C) The turnover of poor performers is considered functional.
D) Organizations have little control over involuntary turnover.
Q2) Frederick Herzberg proposed the:
A) need theory.
B) expectancy theory.
C) equity theory.
D) motivation/hygiene theory.
Q3) Decreased customer service is a hidden cost of turnover.
A)True
B)False
Q4) Explain the no-fault policy that some companies use to address absenteeism.
Q5) Employers can address job satisfaction by regularly surveying employees.
A)True
B)False
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Chapter 6: Recruiting and Labor Markets
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Q1) Which of the following would be an advantage for U.S. organizations that do not want to outsource their work overseas?
A) Advancements in American worker productivity
B) Rapidly rising labor costs in countries like India and China
C) Restrictive U.S. requirements for work permits
D) Large tax penalties that U.S. firms must pay if they outsource jobs
Q2) What are the advantages and limitations of focusing on internal recruiting sources to fill open positions?
Q3) Employment agencies typically have their own workforce, which they supply by contract to employers with jobs.
A)True
B)False
Q4) Which of the following is the best way in which recruiters can easily and accurately track responses to advertisements in various media?
A) Use only a few selected media.
B) Ask applicants where they learned of the position.
C) Ask applicants which media they found most effective.
D) Use different contact names, e-mail addresses, or phone number codes in each ad.
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Page 8

Chapter 7: Selecting Human Resources
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Q1) Interviewers are legally allowed to ask applicants questions about their national origin and marital status.
A)True
B)False
Q2) What purposes do application forms serve?
Q3) Lack of fit between a person and a job is most likely to result from:
A) mistakes in evaluating the person's KSAs.
B) improper employee training.
C) negligence of exit interviews.
D) a lack of a positive company "brand" that attracts qualified applicants.
Q4) Identify the sources of background information for job applicants.
Q5) What are the key competencies for successful global employees?
Q6) _____ measure dexterity, hand-eye coordination, and arm-hand steadiness.
A) Physical ability tests
B) Work sample tests
C) Aptitude tests
D) Psychomotor tests
Q7) What selection tests would be appropriate to use for entry-level professional positions? Which tests would clearly not be appropriate or even illegal?
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Chapter 8: Training Human Resources
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Q1) What does the actual delivery of training involve?
Q2) Which of the following best exemplifies cooperative training?
A) A medical school that uses simulations where the students can perform operations without harming real patients
B) An e-learning program on corporate leadership in which the trainee interacts with the trainer and other trainees via a blog
C) On-the-job training in an IT firm wherein a supervisor works closely and continuously with subordinates
D) A community college program in solar panel installation partnering with solar panel installation companies providing internships
Q3) Immediate confirmation corrects errors that, if made and not corrected throughout the training, might establish an undesirable pattern that would need to be unlearned.
A)True
B)False
Q4) Discuss benchmarking as a measure of training evaluation.
Q5) Discuss how performance appraisals can be used to make individual analysis of training needs.
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Chapter 9: Talent, Careers, and Development
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Sample Questions
Q1) Paul has completed two months at his first job. He is dissatisfied with his unsupportive supervisor, the lack of specific feedback, and the logistical aspects of solving problems. This best exemplifies a(n) _____.
A) entry shock
B) feedback on reality
C) cyclical career
D) premature career plateau
Q2) How do off-the-job techniques help individuals? Discuss the advantages and disadvantages of sabbaticals.
Q3) It is best for an organization to limit its intensive talent management efforts to its high-potential employees, to avoid resentment among the employees.
A)True
B)False
Q4) During the late career phase, an employee is typically concerned with external rewards and acquiring capabilities.
A)True
B)False
Q5) What does presupervisor training mean?
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Chapter 10: Performance Management and Appraisal
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Q1) In the _____ method, the manager keeps a written record of both highly favorable and unfavorable actions performed by an employee during the entire rating period.
A) forced distribution
B) ranking
C) essay
D) critical incident
Q2) Which of the following statements is true of objective and subjective measures of performance appraisals?
A) Subjective measures can be observed and objective measures require judgment on the part of the evaluator.
B) Both subjective and objective measures require judgment on the part of the evaluator and cannot be observed.
C) Objective measures can be observed and subjective measures require judgment on the part of the evaluator.
D) Both subjective and objective measures can be observed and do not require judgment on the part of an evaluator.
Q3) Define performance management. What should a performance management system do?
Q4) What is multisource rating?
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Chapter 11: Total Rewards and Compensation
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Q1) An individual whose pay is above the range for a job is referred to as a green-circled employee.
A)True
B)False
Q2) Define competency-based pay.
Q3) In knowledge-based pay (KBP) or skill-based pay (SBP) systems, employees start at a base level of pay and receive increases as they learn to do other jobs or gain additional skills and knowledge and thus become more valuable to the employer.
A)True
B)False
Q4) The home-country-based approach compensates the expatriate at the same level as workers from the country where the expatriate has been sent from the headquarter. A)True
B)False
Q5) Tangible rewards cannot be easily measured or quantified.
A)True
B)False
Q6) Describe two motivation theories and their relationship with compensation.
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Chapter 12: Variable Pay and Executive Compensation
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Q1) The focus of gainsharing is to _____.
A) decrease discretionary efforts
B) decrease pay variances
C) increase discretionary efforts
D) increase pay variances
Q2) Merchandise, gift certificates, and travel are the most frequently used incentives for recognition awards.
A)True
B)False
Q3) The compensation committee usually is a subgroup of the board of directors that is composed of directors who are currently the officers of the firm.
A)True
B)False
Q4) Describe the challenges faced by group/team incentives.
Q5) Which of the following is an allocation choice in profit-sharing plans?
A) Fixed percentage of profits
B) Based on years of service
C) Sliding percentage based on sales
D) Unit profits
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Chapter 13: Managing Employee Benefits
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Q1) What are the requirements of the Consolidated Omnibus Budget Reconciliation Act (COBRA) with respect to health care?
A) Employers with more than 50 employees must provide medical insurance for all full-time employees.
B) Most employers with 20 or more employees must offer extended health care coverage to certain groups of employees after they leave the organization.
C) Widowed or divorced spouses and dependent children of former or current employees need not be offered health care coverage.
D) Employees who are terminated need not be offered health care coverage.
Q2) The Family and Medical Leave Act (FMLA) defines a _____ as one requiring in-patient, hospital, hospice, or residential medical care or continuing physician care.
A) medical leave event
B) serious health condition
C) life-threatening illness
D) qualifying event
Q3) George is unemployed and is actively searching for a job. Is there any legal provision regarding benefits that can help George?
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Chapter 14: Risk Management and Worker Protection
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Q1) During disaster planning, organizational assessment includes the:
A) development of a disaster recovery plan.
B) creation of backup databases for storing employee contact details.
C) development of training modules in consultation with disaster experts.
D) creation of simulations for employees and managers.
Q2) Recovering substance abusers are not considered disabled under the ADA.
A)True
B)False
Q3) The OSHA provides guidelines to companies that help them continue operations with a depleted workforce.
A)True
B)False
Q4) The Occupational Safety and Health Act provides for on-the-spot inspections by OSHA representatives
A)True
B)False
Q5) Describe the three components of disaster planning?
Q6) What are some of the indirect costs that are incurred by a company due to accidents at the workplace?
Q7) How does the ADA affect recordkeeping practices of an organization?
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Chapter 15: Employee Rights and Responsibilities
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Q1) The CEO of a drug manufacturing company suspects that one of the senior scientists in the company has been selling confidential information to a competitor. When asked to take a polygraph test by the CEO, the scientist becomes visibly upset and refuses to take the test. Which of the following is true of the given scenario?
A) The CEO can fire the scientist for refusing to take the polygraph test.
B) The scientist can face legal charges for refusing to take the polygraph test.
C) The scientist cannot be fired for refusing to take the polygraph test.
D) The scientist can sue the firm for illegally attempting to conduct the polygraph test.
Q2) The employee contract of Uranus Inc. clearly states that, "Every employee in the company must avoid smoking within the company premises." This best exemplifies a: A) policy.
B) procedure.
C) rule.
D) request.
Q3) What is the final step in the disciplinary process?
Q4) Describe an employee handbook. What are the best practices that companies should consider while developing employee handbooks?
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Chapter 16: Unionmanagement Relations
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Q1) The retirement of union members in older manufacturing firms has led to union membership decline.
A)True
B)False
Q2) George, a unionized employee, is suspended from work after a conflict with his supervisor. George decides to file a grievance complaint. Whom should George approach with his problem? Who handles the responsibilities of grievance management in an organization? What are the different steps that George is likely to undergo in the grievance management procedure?
Q3) The Postal Reorganization Act of 1970 prohibits postal workers from striking and has established a dispute-resolution process for them to follow.
A)True
B)False
Q4) Which of the following U.S. unions founded in 1938 focused on semiskilled and unskilled workers?
A) The American Federation of Labor
B) The AFL-CIO
C) The Congress of Industrial Organizations
D) The Change to Win association
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