Deck 20: Human Resource Management

Question 1

A job description refers to a listing of the knowledge, skills, abilities, and other characteristics necessary to perform a job.

Answer 1

False

Question 2

The balance of the U.S. workforce is rapidly shifting toward higher proportions of women, older workers, and racial minorities.

Answer 2

True

Question 3

Personnel programs are the same for small companies as for Wal-Mart or Sears, just on a much smaller scale.

Answer 3

False

Question 4

Orientation refers to instructions given during the interview with an applicant.

Question 5

It is now illegal for employers to arrange for background investigations of job applicants.

Question 6

Obviously, training helps prepare a new recruit to perform the duties for which he or she has been hired.

Question 7

Temporary help agencies are good sources of employees when extensive training is required.

Question 8

The fee charged by a private employment agency is usually paid by the applicant.

Question 9

Employee referrals provide a rich source of good applicants for many small firms.

Question 10

Small firms need to identify their distinctive advantages if they are to recruit outstanding prospects successfully, especially those seeking technical positions.

Question 11

A firm may receive unsolicited applications from qualified applicants.

Question 12

Though time spent on interviewing and other phases of the selection process helps to address the immediate need of finding suitable employees, the long-term benefits of this investment are trivial.

Question 13

While it is legal for a firm to require performance tests for its employees, the tests must meet the criteria of validity and reliability.

Question 14

Private employment agencies administer the various state unemployment insurance programs.

Question 15

Because help-wanted advertising tends to be ineffective, most well-managed organizations reject this method of recruitment.

Question 16

Fortunately, payroll is one of the smallest expense categories for most small businesses.

Question 17

In small firms, a professional's versatility and flexibility may be more important than technical competence.

Question 18

Small firms suffer a recruiting handicap because of the ability of large companies to offer more freedom on the job.

Question 19

The possibility of being sued makes employers reluctant to give a full and candid report on former employees.

Question 20

A small business can facilitate the orientation process by providing an employee handbook, which outlines the company's practices and procedures.

Question 21

The goal of recruiting applicants is to obtain a pool of applicants large enough to contain a number of talented prospects.

Question 22

ESOPs can motivate employees but they are of no help in providing a way for owners to cash out of the business.

Question 23

Profit sharing provides a more direct work incentive in small firms than it does in large firms.

Question 24

A sales commission compensation plan is a type of time-based compensation system.

Question 25

Many companies have found behavioral interviews to be better than traditional interviews as predictors of a candidate's potential for success .

Question 26

As a firm grows, it experiences pressure to formalize its personnel policies and procedures.

Question 27

Job instruction training is characterized by six easy steps.

Question 28

Unions typically concentrate their primary attention on small companies, where their influence is most needed.

Question 29

Small companies are more likely to employ immigrants than larger firms.

Question 30

Small businesses cannot offer cafeteria plans because they are too difficult to implement.

Question 31

Employees represent a venture's _____ resources - and are perhaps the most vital of all its operations.

A) financial
B) human
C) technological
D) marketing

Question 32

The small firm should concentrate its training on nonmanagerial employees, recognizing that development of managers is beyond its range of expertise.

Question 33

Small firms must be roughly competitive in wage and salary levels in order to attract well-qualified personnel.

Question 34

The human resource management (HRM) practices of giants like Wal-Mart and General Motors also work for small businesses.

Question 35

By following enlightened personnel policies, small firms can reduce the likelihood of unionization.

Question 36

Small firms can offer several nonfinancial incentives that appeal to both managerial and nonmanagerial employees.

Question 37

Fringe benefits are expensive, amounting to more than 40 percent of payroll expense for many small firms.

Question 38

Since leasing companies typically employ hundreds or thousands of people, they can afford to offer benefits superior to those offered by the typical small firm.

Question 39

Companies that lease employees to small businesses charge a fee of 1 to 5 percent of payroll.

Question 40

In a small business, a human resource manager is generally desirable when employee morale is satisfactory and the labor turnover is extremely low.

Question 41

Which of the following is not a recommended way to evaluate applicants for a position?

A) Have them fill out an application form
B) Conduct an interview
C) Check references
D) Hire a private investigator to follow the applicant and observe his or her behavior

Question 42

The owner of a small sporting goods store wants to avoid hiring drug users. He checks with his attorney and finds that

A) drug testing before hiring is legal.
B) drug usage is considered a disability and is not grounds for rejection.
C) no economical tests are available to check for drug usage.
D) the Americans with Disabilities Act of 1990 flatly prohibits drug testing for jobs in private businesses.

Question 43

The owner of a small automobile garage has been advised to use an application form in evaluating applicants. This will be most useful in discovering

A) arrest records.
B) general background information.
C) physical disabilities.
D) religious orientation.

Question 44

Which of the following is a legal basis for selecting employees?

A) Gender
B) Age
C) Education
D) Disabilities

Question 45

Susan Williams wants to know the various tasks to be performed by a new employee before she looks for applicants. She should first

A) examine production data for current employees.
B) prepare a job description.
C) consult the United States Employment Service.
D) hire a temporary employee.

Question 46

A small business owner wishes to persuade a highly qualified applicant (a business school graduate) to consider a position with his firm carefully, even though the applicant has also had offers from large corporations. The owner should most strongly emphasize the

A) family atmosphere.
B) retirement program.
C) potential for greater freedom of personnel to structure their job duties.
D) long history of the firm.

Question 47

To obtain a replacement for an employee taking short-term leave under provisions of the Family Leave Act, an employer might most appropriately use

A) public employment agencies.
B) employee referrals.
C) help-wanted advertising.
D) temporary help agencies.

Question 48

The Americans with Disabilities Act requires employers to make _____ adaptations to facilitate the employment of individuals protected by the act.

A) specific
B) minimal
C) reasonable
D) verifiable

Question 49

In seeking personnel for non-critical positions, small firms sometimes turn to

A) temporary help agencies.
B) leasing companies.
C) attorneys.
D) headhunters.

Question 50

Secondary and trade schools are a likely source of

A) managers.
B) personnel to fill positions requiring no specific work experiences.
C) accountants.
D) high-potential employees.

Question 51

Orientation applies most specifically to training given

A) during the employment review.
B) after selection, but prior to reporting for work.
C) during the first two or three days on the job.
D) during the first year of employment.

Question 52

Karen Garcia is seeking references' comments on applicants for jobs with her business. The former employers and other parties she calls seem reluctant to do more than verify dates of employment. A probable reason for their reluctance is that

A) records for former employees are filed away and not readily available.
B) the former employer may plan to recall the employee and wants to avoid losing her to another employer.
C) respondents may fear litigation by former employees who fail to get jobs they seek.
D) requests of this kind simply take too much time for large company personnel departments.

Question 53

During an interview, an employer

A) can evaluate the appearance, job knowledge, intelligence, and personality of the applicant.
B) can judge an applicant without any further research.
C) should do most of the talking.
D) should find out whether a young woman plans to stay home with her children when they are born.

Question 54

If qualified walk-ins cannot be hired immediately, their applications should be

A) destroyed.
B) sent to other firms.
C) kept on file.
D) turned over to a private employment agency.

Question 55

An employer who hires an employee through a public employment office pays the employment office a fee of

A) nothing-this is a free service.
B) one month's salary.
C) one-tenth of the employee's yearly salary.
D) $250, the standard amount.

Question 56

Karl Milgram is concerned that many employees who successfully passed their employment test later perform poorly on the job. He believes the employment test lacks

A) applicability.
B) interpretability.
C) reliability.
D) validity.

Question 57

Small firms compete with large firms for qualified personnel, but they have several potential advantages over large firms in attracting personnel, including which of the following?

A) Recognizing individual contributions
B) Offering standardized work scheduling as a possible lure
C) Allowing any employee to influence the overall direction of the firm
D) Providing greater bonuses

Question 58

One of the largest expense categories for most businesses is

A) advertising
B) research and development
C) payroll
D) professional fees

Question 59

In seeking personnel for key positions, small firms sometimes turn to recruiting specialists called

A) temporary help agencies.
B) leasing companies.
C) attorneys.
D) headhunters.

Question 60

Tom Clancy is experiencing difficulty in recruiting competent technicians for his business. One way to increase the attractiveness of his small business is by using

A) flexible work schedules.
B) job descriptions.
C) performance testing.
D) private employment agencies.

Question 61

Small firms give employees a share of ownership in the business through

A) group incentive plans.
B) profit plans.
C) employee stock ownership plans.
D) action-sharing plans.

Question 62

The Civil Rights Act applies to any employer of _____ or more people.

A) 3
B) 15
C) 27
D) 40

Question 63

Fringe benefits include

A) hourly wages and overtime pay.
B) commissions and bonuses.
C) health insurance.
D) profit-sharing plans.

Question 64

Explaining company procedures and company policies should be part of

A) initial or "basic" training.
B) supervisory training.
C) orientation.
D) job instruction training.

Question 65

Charlie Colson wants to pay employees on the basis of the individual number of units they produce. The compensation system he should use is a

A) profit-sharing plan.
B) standard hourly system.
C) commission system.
D) piece work system.

Question 66

A systematic step-by-step method for on-the-job training of non-managerial employees is known as

A) On-the-Job Training.
B) Employee Development Training.
C) Job Instruction Training.
D) Intensive Job Orientation.

Question 67

Quality management is concerned with all of the following except

A) machines.
B) materials and measurements.
C) human performance.
D) the architectural design of facilities.

Question 68

Kevin Chang believes that the nature of his business operations makes measurement of performance almost impossible. Therefore, he wants to pay employees on the basis of hours worked. The compensation system he should use is a

A) profit-sharing plan.
B) time-based compensation system.
C) commission system.
D) differential piece rate system.

Question 69

In establishing a management training program, Mark Russell should be consider all of the following factors except

A) The need for training.
B) A plan for training.
C) The timetable for training.
D) The design of the training facilities.

Question 70

The cost of fringe benefits _____ the cost of salary and wage payments.

A) is less than half of
B) is double
C) is equal to
D) considerably exceeds

Question 71

Managerial and professional employees in small businesses need training so that

A) individuals are developed to replace the founder in the case of a hostile takeover.
B) they can adequately carry out their assigned responsibilities.
C) outplacement services would be easier to set up.
D) available tax benefits for the company can be realized.

Question 72

Which of the following plays the central role in attracting and motivating employees?

A) Flexible work duties
B) Job sharing arrangements
C) Compensation
D) Vacation benefits

Question 73

The following are suggestions that Prof. Harry J. Martin states can improve a firm's training-to-implementation except

A) put it on paper
B) measure results
C) get peers to help
D) utilize competitors' techniques

Question 74

As part of preparing a business plan, Grace Wang wishes to show the cost of fringe benefits as a percentage of payroll costs. She should use the following percentage:

A) 40 percent.
B) 25 percent.
C) 15 percent.
D) 5 percent.

Question 75

Profit-sharing plans

A) provide a more direct incentive in small firms than in large firms.
B) are practically impossible to use successfully in small firms.
C) are similar to individual incentive plans in their motivational effect.
D) are an expensive fringe benefit for small firms, costing 40 percent of payroll.

Question 76

The owner of an industrial distribution company has attended a seminar on quality management and is determined to improve quality performance. This owner should recognize which of the following about training employees in quality?

A) Quality training can teach employees about the importance of quality and ways to produce high-quality work.
B) Direct supervisory one-on-one instruction is the only training procedure that shows consistent results.
C) Quality training gradually raises quality consciousness but must be pursued for two or three years before significant improvements can be detected.
D) Quality performance and workmanship are not good topics for training because careful work habits must be developed, if they are ever developed, on a personal basis over many years.

Question 77

Management and other key personnel "get a piece of the action" through

A) fringe benefits.
B) time-based compensation.
C) profit sharing.
D) tax benefits.

Question 78

Keys to developing effective bonus plans include all of the following EXCEPT

A) Setting attainable goals.
B) Including employees in planning.
C) Keep updating the goals.
D) Discontinuing the bonus plan periodically.

Question 79

New employees benefit most from orientation when it is given

A) during the employment review.
B) after selection, but prior to reporting for work.
C) during the first two or three days on the job.
D) during the first year of employment.

Question 80

A compensation system based on time is most appropriate for jobs in which

A) performance is not easy to measure.
B) responsibilities are difficult to understand.
C) fringe benefits are an important part of the compensation offered.
D) commissions make up a significant portion of compensation received.