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

question 19

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.If Richmond develops an EAP,it will be most important for managers to realize that they should:

• A) review employees' medical histories before referring them to the program.
• B) offer financial incentives for employees who regularly participate in the program.
• C) refer employees to the program based on work-related performance issues.
• D) make employee referrals to the program at the first sign of emotional instability.

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Definitions:

Variable Expenses

Costs that vary in direct proportion with the level of production or sales volume, such as raw materials and sales commissions.

Traceable Fixed Expenses

Fixed costs that are directly associated with a specific department or product, and can be directly traced to it.

Minimum Required Rate Of Return

The lowest acceptable return on an investment, determined by an investor's or company's risk tolerance.

Average Operating Assets

Refers to the average value of the assets employed in a business's operations over a certain period of time, used to assess operational efficiency and return on investment.