Additional Case 16.2 John Is the Newly Hired Director of HR at Richmond

question 12

Multiple Choice

Additional Case 16.2
John is the newly hired director of HR at Richmond Manufacturing, and he is in the process of learning about the firm's HR policies and procedures and determining what areas need improvement. John learns from his staff that the firm's workers' compensation rates have risen dramatically in recent years due to rising claims. The firm has not received any OSHA citations, and most claims have been related to employee mistakes. Many HR staff members suspect that burnout, substance abuse, and depression are the primary causes of worksite accidents at Richmond. Although Richmond established a safety program two years ago, workplace accidents continue to occur at a significant rate. John is considering the idea of establishing an EAP at Richmond.
-Refer to Additional Case 16.2.Which of the following is the most likely reason that Richmond's safety program is ineffective?

• A) Most injured employees are unaware of EAP opportunities.
• B) The safety committee consists of line managers and top executives.
• C) The firm rewards its best truck drivers with gift cards and plaques.
• D) Online safety training programs and demonstrations are available to all employees.

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Definitions:

Aggregate Inflation

Aggregate inflation refers to the overall general increase in prices across the economy, reducing the purchasing power of money.

Unemployment

The failure to use all available economic resources to produce desired goods and services; the failure of the economy to fully employ its labor force.

Command Economies

Economic systems where the government controls the production, distribution, and consumption of goods and services.

Positive Statement

An objective statement based on fact that can be tested and validated, often used in the description of economic behaviors.