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  • Organization‑centered career planning requires an individual employee to take charge of his/her career and chart a path of advancement through his/her organization.
  • Encapsulated development occurs when a single work unit in an organization is used to pilot test new training programs.
  • A plateaued employee who is capable of meeting performance expectations is a good candidate for a lateral move.
  • The modeling process involves only straightforward imitation and copying.
  • It is best for an organization to limit its intensive talent management efforts to its high‑potential employees, to avoid resentment among the employees.
  • Careers are not predictably linear but cyclical.
  • Succession planning should be done for all key jobs in the organization, even if they are low in the hierarchy.
  • One purpose of employee development is to help employees improve skills that they might not be able to improve in their ordinary life experiences.
  • Job rotation tends to be an expensive form of employee development because it takes time for employees to become familiar with their new units.
  • Glass ceiling describes the situation in which women rapidly progress into top and senior positions.
  • A supervisor’s rating of an employee’s attitude is classified as an objective measure of performance.
  • Both numerical and nonnumerical performance standards can be established.
  • The entitlement approach of organizational culture links performance evaluations to employee compensation and development.
  • The leniency error occurs when ratings of all employees fall at the high end of the scale.
  • Peer and team ratings are especially useful only when supervisors have the opportunity to observe each employee’s performance.
  • Menu up‑selling by a waiter is classified as behavior‑based information.
  • The contrast error occurs when a rater scores an employee high on all job criteria because of performance in one area.
  • A disadvantage of the outsider rating approach is that outsiders may not know the important demands within the work group or organization.
  • When a key part of performance management, the performance appraisal, is used to punish employees, performance management is less effective.
  • In the critical incident method, the manager keeps a written record of both highly favorable and unfavorable actions performed by an employee during the entire rating period.
  • The expectancy theory says that an employee’s motivation is based on several linked concepts.
  • An employer using the first‑quartile strategy chooses to “lag the market.”
  • The overall objective of the host‑country‑based approach is to maintain the expatriate’s standard of living in the country where the company is headquartered.
  • An individual whose pay is above the range for a job is referred to as a green‑circled employee.
  • Tangible rewards cannot be easily measured or quantified.
  • Not having to pay social security, unemployment, or workers’ compensation costs to independent contractors offers major advantages to the employer.
  • The compa‑ratio is calculated by dividing the individual’s pay rate by the lowest point in
  • The child labor provisions of the FLSA set the minimum age for employment with unlimited hours at 19 years.
  • Integrating performance appraisal ratings with pay changes can be done through the development of a merit‑based performance matrix.
  • Market banding groups jobs into pay grades based on similar market survey amounts.
  • A restricted stock option indicates that company stock shares will be paid as a grant of shares to individuals.
  • A stock option plan gives employees the right to purchase an unlimited number of shares of company stock at a specified exercise price for a limited period of time.
  • 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.
  • Recognition awards ensure that the award winners are determined objectively.
  • According to the Dodds‑Frank Act, publicly listed companies now must allow shareholders to vote on executive compensation.
  • Compensation given to an executive if he or she is forced to leave an organization is called golden parachute.
  • To ensure that spot bonuses works efficiently, employers must keep the amounts reasonable and provide them only for exceptional performance accomplishments.
  • The “clawbacks” provision in Civil Rights Act of 1964 allows a company to recover any incentive‑based pay that was paid out during the prior three years if it would not have been paid under restated financial statements.
  • The Scanlon plan approach sets group piece‑rate standards and pays weekly bonuses when those standards are exceeded.
  • The most prevalent forms of organization‑wide incentives are piece‑rate systems, sales commissions, and individual bonuses.

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