MIE 330 Exam 2 Questions With Complete
Solutions
Course
MIE 330
1. What are the five steps in the selection process?
Solution:
1. Screening applications and résumés
2. Testing and reviewing work samples
3. Interviewing candidates
4. Checking references and background
5. Making a selection decision
2. Explain the difference between reliability and validity in selection methods.
Solution:
Reliability refers to the consistency of a measurement (e.g., if a test produces the same
results when repeated).
Validity refers to whether a selection method accurately measures what it is supposed to
measure (e.g., if a cognitive test predicts job performance).
3. Describe two advantages and two disadvantages of internal recruitment.
Solution:
Advantages:
1. Faster and less costly than external hiring.
2. Boosts employee morale and motivation.
Disadvantages:
1. Limits the pool of applicants, possibly missing better external candidates.
2. Can create internal conflicts if multiple employees compete for the same position.
4. Differentiate between job-based pay and skill-based pay.
,Solution:
Job-based pay is determined by the specific role or job an employee holds.
Skill-based pay is determined by the skills and knowledge an employee possesses,
regardless of the job title.
5. What is the Equal Employment Opportunity (EEO) Act, and why is it important?
Solution:
The EEO Act prohibits discrimination in employment based on race, color, religion, sex, or
national origin. It is important because it ensures fairness in hiring, promotions, and workplace
treatment.
6. What is a structured interview, and why is it beneficial?
Solution:
A structured interview follows a set list of standardized questions for all candidates.
Benefits:
1. Reduces interviewer bias.
2. Improves reliability and validity in hiring decisions.
7. Define “compensable factors” in job evaluation.
Solution:
Compensable factors are characteristics that an organization values and uses to determine pay,
such as skill level, effort, responsibility, and working conditions.
8. What are the four major types of training methods?
Solution:
1. Classroom training – Traditional lectures or presentations.
2. On-the-job training (OJT) – Learning by doing in the workplace.
3. Simulation training – Using virtual models or scenarios to practice.
4. E-learning – Online courses and self-paced learning.
,9. What is the purpose of performance appraisals?
Solution:
Performance appraisals help:
1. Evaluate employee performance against set goals.
2. Provide feedback for improvement.
3. Inform compensation and promotion decisions.
4. Identify training needs.
10. How does the Family and Medical Leave Act (FMLA) benefit employees?
Solution:
The FMLA allows eligible employees to take up to 12 weeks of unpaid leave for:
Personal health conditions.
Caring for a newborn or adopted child.
Caring for a sick family member.
11. What are two common types of incentive pay?
Solution:
1. Bonuses – One-time payments based on performance.
2. Commission – Compensation based on sales generated.
12. What is the difference between exempt and non-exempt employees under the Fair
Labor Standards Act (FLSA)?
Solution:
Exempt employees are not eligible for overtime pay and typically hold salaried
positions.
Non-exempt employees qualify for overtime pay if they work more than 40 hours a
week.
13. What are the three main components of a total compensation package?
, Solution:
1. Base pay – Fixed salary or hourly wage.
2. Benefits – Health insurance, retirement plans, etc.
3. Incentives – Bonuses, commissions, stock options.
14. What is the difference between a grievance procedure and progressive discipline?
Solution:
Grievance procedure allows employees to formally challenge unfair treatment.
Progressive discipline is a step-by-step system for correcting employee misconduct,
starting with verbal warnings and escalating to termination if needed.
15. What is the difference between voluntary turnover and involuntary turnover?
Solution:
Voluntary turnover occurs when an employee chooses to leave.
Involuntary turnover occurs when an employee is fired or laid off by the employer.
16. What is job analysis, and why is it important?
Solution:
Job analysis is the process of gathering, documenting, and analyzing information about a job’s
tasks, responsibilities, and required skills.
Importance:
1. Helps in recruitment and selection.
2. Supports training and development programs.
3. Aids in performance evaluations.
4. Ensures compliance with labor laws.
17. Define psychological contract and its impact on employee-employer relationships.
Solution:
A psychological contract refers to the unspoken, informal expectations between an employer
Solutions
Course
MIE 330
1. What are the five steps in the selection process?
Solution:
1. Screening applications and résumés
2. Testing and reviewing work samples
3. Interviewing candidates
4. Checking references and background
5. Making a selection decision
2. Explain the difference between reliability and validity in selection methods.
Solution:
Reliability refers to the consistency of a measurement (e.g., if a test produces the same
results when repeated).
Validity refers to whether a selection method accurately measures what it is supposed to
measure (e.g., if a cognitive test predicts job performance).
3. Describe two advantages and two disadvantages of internal recruitment.
Solution:
Advantages:
1. Faster and less costly than external hiring.
2. Boosts employee morale and motivation.
Disadvantages:
1. Limits the pool of applicants, possibly missing better external candidates.
2. Can create internal conflicts if multiple employees compete for the same position.
4. Differentiate between job-based pay and skill-based pay.
,Solution:
Job-based pay is determined by the specific role or job an employee holds.
Skill-based pay is determined by the skills and knowledge an employee possesses,
regardless of the job title.
5. What is the Equal Employment Opportunity (EEO) Act, and why is it important?
Solution:
The EEO Act prohibits discrimination in employment based on race, color, religion, sex, or
national origin. It is important because it ensures fairness in hiring, promotions, and workplace
treatment.
6. What is a structured interview, and why is it beneficial?
Solution:
A structured interview follows a set list of standardized questions for all candidates.
Benefits:
1. Reduces interviewer bias.
2. Improves reliability and validity in hiring decisions.
7. Define “compensable factors” in job evaluation.
Solution:
Compensable factors are characteristics that an organization values and uses to determine pay,
such as skill level, effort, responsibility, and working conditions.
8. What are the four major types of training methods?
Solution:
1. Classroom training – Traditional lectures or presentations.
2. On-the-job training (OJT) – Learning by doing in the workplace.
3. Simulation training – Using virtual models or scenarios to practice.
4. E-learning – Online courses and self-paced learning.
,9. What is the purpose of performance appraisals?
Solution:
Performance appraisals help:
1. Evaluate employee performance against set goals.
2. Provide feedback for improvement.
3. Inform compensation and promotion decisions.
4. Identify training needs.
10. How does the Family and Medical Leave Act (FMLA) benefit employees?
Solution:
The FMLA allows eligible employees to take up to 12 weeks of unpaid leave for:
Personal health conditions.
Caring for a newborn or adopted child.
Caring for a sick family member.
11. What are two common types of incentive pay?
Solution:
1. Bonuses – One-time payments based on performance.
2. Commission – Compensation based on sales generated.
12. What is the difference between exempt and non-exempt employees under the Fair
Labor Standards Act (FLSA)?
Solution:
Exempt employees are not eligible for overtime pay and typically hold salaried
positions.
Non-exempt employees qualify for overtime pay if they work more than 40 hours a
week.
13. What are the three main components of a total compensation package?
, Solution:
1. Base pay – Fixed salary or hourly wage.
2. Benefits – Health insurance, retirement plans, etc.
3. Incentives – Bonuses, commissions, stock options.
14. What is the difference between a grievance procedure and progressive discipline?
Solution:
Grievance procedure allows employees to formally challenge unfair treatment.
Progressive discipline is a step-by-step system for correcting employee misconduct,
starting with verbal warnings and escalating to termination if needed.
15. What is the difference between voluntary turnover and involuntary turnover?
Solution:
Voluntary turnover occurs when an employee chooses to leave.
Involuntary turnover occurs when an employee is fired or laid off by the employer.
16. What is job analysis, and why is it important?
Solution:
Job analysis is the process of gathering, documenting, and analyzing information about a job’s
tasks, responsibilities, and required skills.
Importance:
1. Helps in recruitment and selection.
2. Supports training and development programs.
3. Aids in performance evaluations.
4. Ensures compliance with labor laws.
17. Define psychological contract and its impact on employee-employer relationships.
Solution:
A psychological contract refers to the unspoken, informal expectations between an employer
