Page 1 of 13LIR 832:Mid-term Examination: Spring 2005Each Problem is worth 20 points. Answer five of the six problems. Problemsshould be answered as thoroughly as you are able. Partial credit on problems is onlypossible if I can locate errors in your calculations; neatness and organization of youranswers is essential Remember, answer only five of the six problems, if you choseto answer all, I will select the five with the lowest scores.1.We have two very similar plants. They produce similar products withsimilar technologies. Plant level policies including compensation are alsosimilar as these are standardized throughout the corporation. The twoplants have the same number of non-exempt employees.What differs between the two plants is their labor market. Plant A is in avery slack labor market, unemployment in the area is high and wagelevels are not even keeping up with inflation. Plant B is in a region inwhich labor markets are tight, unemployment is low and wages are risingrapidly. We suspect that differences in labor market conditions affect humanresource outcomes at these plants. For example, we know that jobsatisfaction is lower in plant B than in plant A. We are also interested indifferences in attendance between the two plants. We believe thatabsenteeism will be higher in plant B than in plant A as employees at plantB will be less interested in pleasing their superiors than in plant A, sincethey know that there are other good jobs available.A.State our beliefs about the number of employees who will beabsent in plant B compared to plant A. Is this statement aboutpopulation characteristics or a sample characteristic? Explain youranswer.
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