1.)An employee at Clearwater Electronics has contacted the HR department about her salary. She had been told that a recent hire with the same job and skill set was offered $1,000 more per year than she was. She wanted to know if the rumor was true and, if so, what the company was going to do to about the situation. After reviewing both jobs, it was determined that the employee should be given a pay raise to match that of the recent hire plus another 25 cents per hour. The employee was appeased, but the situation was messy and awkward. Given this example, why is it important that Clearwater Electronics have internal equity in its compensation system?
•Internal equity allows for a company to pay different wages depending on the seniority of its employees.
•Internal equity allows a company to compare their salaries to those of competing organizations.
•Internal equity allows the company to balance two factors—the cost of workers and the rapidly moving job market.
•Internal equity contributes to a company culture of fairness, and employees are more likely to feel valued and less likely to claim discrimination.
2.)The HR director at Clearwater Electronics has been asked to create a series of job classifications for a new group of jobs that have recently emerged within the public relations (PR) department. An important part of the process is to decide the number of job classes to use. Which statement best explains why it is important to have the proper number of job classes?
•Having the right number of job classes gives a framework and ensures departments are properly interpreting job evaluations.
•Having the right number of job classes gives a framework for setting fair and equitable compensation for similar jobs and eliminates errors from job evaluations.
•Having the right number of job classes makes it easy to explain to employees why their pay is at a certain level.
•Having the right number of job classes will eliminate the need for continuous job evaluations as employees progress on their career path.
3.)The HR department at Clearwater Electronics received a report of a work-related injury on the production line that resulted in the employee missing several days of work. Supposedly, the employee hurt his back while lifting a box of components. However, another employee reported that the employee was not really hurt and just wanted some days off. It is the responsibility of the HR department to process workers’ compensation claims and make sure the claim is not fraudulent. Which statement gives the best reason for HR to ensure that the claim is legitimate?
•Fraudulent workers’ compensation claims lead to companies misclassifying employees in order to avoid paying premiums for them.
•Fraudulent workers’ compensation claims allow employees to take advantage of the system and say injuries and illnesses resulted from work while they actually happened elsewhere.
•Fraudulent workers’ compensation claims can lead to higher insurance premiums and penalties, so it is important for HR to protect the company and avoid costly mistakes.
•Fraudulent workers’ compensation claims can lead companies to lie about injuries and illnesses in order to avoid paying higher insurance premiums.
4.)Clearwater Electronics has experienced tremendous growth recently, and the sales office projects there to be a 70 percent increase in product demand. Normally Clearwater runs two shifts (day and swing) Monday through Friday, but now additional shifts have been added to the weekend in order to meet the current demand. Employees have reported the additional workload is causing them stress, and there has been an increase in absenteeism, accidents, and product errors. To respond proactively to the issue, the HR department is making sure employees have clear job expectations, understand health and safety measures, and know about the company’s wellness and employee assistance programs. Additionally, the company is looking at ways to decrease the work overload, including adding another shift (graveyards) or hiring temporary workers. Which of the following statements best explains why it is important for the company to reduce the stress their employees experience on the job?
•Lack of stress management in the workplace creates an environment where employees at all levels feel they are not working to the best of their abilities.
•Lack of stress management in the workplace contributes to illness, absence, turnover, and underperformance, all of which reduce productivity.
•Lack of stress management in the workplace makes employees feel less valued and less in control.
•Lack of stress management in the workplace creates an atmosphere of mistrust.
5.)Clearwater Electronics was recently issued a safety violation that was reported to a newspaper, resulting in an unfavorable article about the company. HR has been tasked by management to review and revise safety procedures for the entire production line. After creating an updated set of safety procedures, the chief operating officer (COO) of Clearwater Electronics is pressuring HR to implement the new safety protocols before testing so the company can issue an updated press release. Why should the safety procedures be thoroughly tested before allowing a press release?
•The new procedures may need to be vetted by other departments before the press release.
•The new procedures may need to be approved by top management to ensure they understand and support it.
•The new procedures may be appreciated by employees but not easy to implement.
•The new procedures may be inefficient and create additional harm without thorough testing.
6.)An argument broke out between a manager and one of his employees; HR was asked to investigate. After interviewing both the employee and the manager, the HR director overheard the employee saying, “I wish this were the olden days. I’d take this argument out in the street and solve it without anyone’s help.” Because Clearwater Electronics has a zero-tolerance policy for workplace violence, with prominent signage in a number of visible locations in the plant, the employee was immediately terminated. Why did this incident of workplace violence occur?
•The incident stemmed from ineffective problem-solving on the part of the employee.
•The incident happened due to a lack of legal authority to enforce workplace violence policies.
•The incident occurred due to ineffective monitoring of the workplace environment by HR.
•The incident came from the manager imposing an unsolvable problem on the employee.
7.)At the last board meeting of Clearwater Electronics, the HR director discussed the threat of a new entrant in the computer chip market, Silicon Unlimited. The HR director is concerned that Silicon Unlimited will try to poach some of Clearwater’s top talent and wants the board’s approval to make counteroffers to employees should this happen. Why is reducing the availability of top talent a good strategy to combat the threat of this new competitor?
•It will cause Silicon Unlimited to look elsewhere for employees.
•It will create a barrier to entry for Silicon Unlimited and make it more difficult for the company to begin operations.
•It will make it harder for Silicon Unlimited to invest in the human capital it needs to get off the ground.
•It will ensure that Silicon Unlimited does not obtain the resources it needs to be successful.
8.)The managers at Clearwater Electronics sometimes focus so much on day-to-day operations that they can lose sight of the goals of the company and how it plans to achieve those goals—its strategy. The HR department has been given the responsibility to remind the managers of the strategy, vision, purpose, and values that drive Clearwater’s business. Why is HR the right department to carry out this assignment?
•The HR department is best able to evaluate employee productivity and knows the best time to reinforce the company’s strategy with the manager.
•The HR department contributes significantly to organizational success since it is mainly responsible for aligning the workforce with company strategy.
•The HR department understands the needs of the managers and knows when they will be available to learn about the company strategy.
•The HR department is responsible for managing the company workforce and ensuring all employees understand the part they play in the company.
9.)Clearwater Electronics has purchased a mining company that supplies various rare-earth metals such as lanthanum, neodymium, and samarium that are used in the firm’s advanced electronics manufacturing. Why is vertical integration an ideal business growth strategy for Clearwater Electronics?
•Vertical integration will allow the company to supply materials to competitors at a higher price.
•Vertical integration will allow the company to be more competitive in the computer chip market.
•Vertical integration will allow the company to gain control over its value chain.
•Vertical integration will allow the company to acquire more companies in the future if this acquisition is successful.
10.)In the most recent negotiations, the union demanded a decrease in floor automation as well as additional paid time off for every employee on the floor. With the implementation and cost of a recent retirement plan for all employees at Clearwater Electronics, management felt that such demands were unacceptable, and negotiations have stalled for a month. The company and the union have agreed to mediation. Which statement best explains why mediation is a better option than arbitration for Clearwater in this situation?
•Mediation is able to explore alternative solutions without offending both parties.
•Mediation does not have a formal discovery process, so it is less time-consuming for the company.
•Mediation has no power to impose a settlement, so the company can still protect its position.
•Mediation will allow both parties to take time to calm down and think clearly.
11.)The HR department at Clearwater Electronics received notice that a grievance procedure was filed by an employee. A member of the HR department has met with the employee, a union representative, and the employee’s immediate supervisor to resolve the issue of concern. A resolution was reached, and the employee returned to work. Why is it important to have a grievance procedure?
•The grievance procedure provides a way for an employee who misinterprets an agreement to dispute what was previously agreed between the company and the union.
•The grievance procedure allows an employee to be protected from any retaliation from others who might not agree with their complaint.
•The grievance procedure notifies the company that litigation is forthcoming.
•The grievance procedure provides a method to handle employee complaints before they become serious issues.
12.)The union at Clearwater Electronics reported a major safety issue at the company and worked with the HR director to draft a document to improve the safety of the production line and the workers. Why is a good relationship with the union one of the most important for the HR director to maintain?
•The HR director ensures people get along in the company, regardless of their union affiliation.
•The HR director is responsible for ensuring employees receive adequate safety protection.
•The HR director is responsible for ensuring disputes are settled in an amicable fashion.
•The HR director ensures the company is protected and employees are satisfied with their compensation and working conditions.
13.)The HR director of Clearwater Electronics had a meeting with upper management to discuss new technology the company will be installing in the future and how to help employees adapt to the changes. The group developed a plan to start a task force with representatives from the departments involved: HR, production, maintenance, engineering, planning and scheduling, and quality. Which statement is the best reason why the company should involve employees from all levels in the task force?
•The company wants its employees to feel valued, even if they don’t understand the technology well enough to contribute valid ideas.
•The company wants its employees to learn collaboratively and creatively and ultimately increase the transfer of knowledge and buy-in to all other employees.
•The process of learning together will create an opportunity for people to get to know and understand one another better.
•Getting different levels of employees to work together will help the company eliminate conflict that arises among employees, especially between managers and line workers.
14.)Over the past 40 years, the HR department at Clearwater Electronics has changed and evolved in its contribution to the organization, becoming a strategic partner that helps implement significant changes for the company’s success. Which statement best explains why the company has been successful in improving human resource management?
•Focusing on employee engagement instead of customer service has allowed human resources to implement the right framework for improvement.
•Technology has allowed human resources to better analyze trends in employment and respond more quickly and efficiently to the needs of the company.
•Including human resources in organizational change efforts has made it possible to identify the employees who do not fit into the culture and let them go.
•Aligning human resources with the strategic goals and objectives of the firm has enabled new ideas and techniques to drive effective organizational change.
15.)Clearwater Electronics has a strong organizational culture that is demonstrated by high employee engagement. HR has played a vital role in perpetuating that culture, starting with recruiting applicants who share the company’s beliefs, understand the organizational strategy, and work hard. However, knowing that the only constant is change, the HR department continually monitors employees’ engagement and behaviors. Why is assessing employees’ views of the company important in maintaining a strong company culture?
•If employees are positive about what the company stands for, they will be more positive, more productive, and more open to change.
•Assessing what employees talk about helps identify potential problems, which can then be addressed before they get serious.
•Knowing what employees’ views are on a continual basis allows the company to identify those who do not fit into the culture.
•What employees think is often how the company is perceived from the outside as well.
