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5. A key contribution of the
employer which employees expect in the modern psychological contract is the
opportunity to develop their careers.

6. People who were born between 1980 and 1990
are sometimes referred to as “Generation Why.”

7. After a corporate downsizing, the
organization can expect to have a core of highly loyal and committed employees
because the “deadwood” and poor performers will have been weeded out.

8. Because of increasing HR attention to
employee needs and expectations, American employee satisfaction overall has
increased in recent years.

9. For the organizational cause to inspire
employee commitment, the organization must be exceptional, such as Doctors
Without Borders or Habitat for Humanity.

10. The director of HR for Lime Mountain Hospital realizes that the
labor market for intensive care nurses is very tight. She realizes that in
order to reduce the turnover of these nurses, she must somehow increase the
intensive care nurses’ loyalty to the hospital.

11. Older employees tend to be more concerned about job security than
younger workers.

12. Organizational commitment and job satisfaction have a stronger
relationship with involuntary turnover than with voluntary turnover.

13. Job design has an indirect effect on both employee absenteeism and

14. Individual performance will be high as long as two of the three
major factors influencing performance are high. That is, even if one factor is
low or absent, a high level of the two other factors will result in the
individual performing well.

15. The CEO of Glenorra Home Products has proposed bringing in a
nationally-recognized motivational speaker to address the employees. Although
this will cost $15,000, the CEO says this speaker is “dynamite” and
“energizing.” The CEO wants you, as director of HR, to pay for this speaker out
of your very limited training and development budget. You are happy to do this
because you realize that excellent motivational speeches have long-lasting
impact on employee motivation.

16. One of the main characteristics of the “100 Best Companies to Work
For” is that they treat employees well in both good and bad times.

17. Most people agree on what characteristics make a “good job.”

18. As the director of HR for a major interstate trucking line, you
realize that a safe work environment is not a key factor in retention of truck
drivers because the type of person attracted to this occupation is “macho” and

19. Experience has shown that flexible work arrangements are best
handled formally.

20. If an organization cannot pay competitive wages, it will find it
difficult to retain high-performing employees.

21. Promoting from within the organization (internal recruiting) has a
positive impact on retention.

22. A manager has come to you, as an HR specialist, for advice. One of
his young, valuable employees seems to be thinking about quitting. You suggest
that it would be useful to promote this employee, since it would likely keep
her within the organization. Does research support this suggestion?

23. Providing low-cost, high-quality lunches in an employee cafeteria
would increase retention by making the employees’ perception of the employer
more favorable.

24. Co-worker friendships can be one of the most important signs of a
positive workplace.

25. Voluntary absenteeism is absenteeism that the organization
considers avoidable.

26. The most widely used method of absenteeism control is
paid-time-off programs.

27. As the HR manager for a chain of grocery stores, you estimate that
in order to staff one check-out clerk position, you will have to hire multiple
individuals during the year.

28. Turnover is costly and should be avoided whenever possible.

29. If the investment specialist who handles the billion-dollar
pension fund leaves the firm, this event would be classified as dysfunctional

30. A retention officer in the firm would have a goal of reducing
controllable turnover.

31. Glenda is keeping her job with Glenorra Home Products because if
she would quit she would lose the close-knit friendships she has built up at
the firm over the years. This is an example of dysfunctional retention because
Glenda is staying for a reason other than commitment to the organization’s

32. A high level of “churn” is an indication of robust organizational
health, because the firm is eliminating employees with outdated skills and
replacing them with employees with more necessary skills.

33. Attitude surveys rarely provide valid and reliable results because
employees enjoy sabotaging these efforts to collect data.

34. An exit interview or questionnaire will probably gain more
accurate data if the former employee answers questions a month or more after
he/she has left the organization rather than immediately upon departure.


1. Traditionally, employee loyalty and long
service with one employer were the norm. How has this changed? Why? Discuss
this issue in terms of the psychological contract.

2. What is meant by job satisfaction and
organizational commitment? What are the advantages of a satisfied and committed

3. Describe the major alternatives for
controlling voluntary absenteeism.

4. Why should organizations address controllable
turnover? What strategies would you recommend for addressing retention?

5. What are the five main drivers of retention?
Describe the HR-related activities which are related to each driver.

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