Deck 20: Managing Human Resources

Question 1

Executive search firms should only be used by large companies because of their cost.

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

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

Answer 3

True

Question 4

The quality of a firm's employees determines the firm's potential.

Question 5

The fees charged by a private employment agency are paid by the hiring firm, not the applicant.

Question 6

Small firms need to identify their distinctive advantages if they are to recruit outstanding prospects successfully.

Question 7

Human resource management of small firms should be identical to large companies but adjusted for size.

Question 8

Payroll is typically a small expense for most small businesses.

Question 9

The Internet is a low-cost, effective tool for recruiting qualified candidates.

Question 10

Universities are good sources of candidates for positions that require a high level of experience.

Question 11

The source that accounts for most new hires is help-wanted ads in newspapers.

Question 12

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

Question 13

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

Question 14

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

Question 15

The cost of using a headhunter makes using their services unrealistic for small businesses.

Question 16

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

Question 17

The use of temporary employees provides management with an introduction to individuals whose performance may justify an offer of permanent employment.

Question 18

Public employment offices are a useful source of clerical workers, unskilled laborers, production workers, and technicians.

Question 19

Private employment agencies administer the various state unemployment insurance programs.

Question 20

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

Question 21

The job specifications list the duties the incumbent is expected to perform.

Question 22

The hiring practices at 37signals support small firms using additional "test drives" even if a prospective employee has passed a reliable and valid test.

Question 23

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

Question 24

A person who interviews well should not automatically be hired.

Question 25

The small firm has a particularly strong need to develop both managerial and professional employees.

Question 26

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

Question 27

Requesting a credit report to establish an applicant's employment eligibility is illegal according to the Fair Credit Reporting Act.

Question 28

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

Question 29

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

Question 30

Research indicates that more than 40 percent of the training provided to employees each year is applied on the job.

Question 31

Released employees are much less likely to sue if they feel their former employer provided ample opportunities to improve their performance before being fired and the company was fair throughout the process.

Question 32

Most small businesses complete their own background investigations of job applicants by using information readily available online.

Question 33

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

Question 34

Job descriptions are used primarily to avoid lawsuits that might result from the Americans with Disabilities Act.

Question 35

A negligent hiring lawsuit can ensure from a failure to check the background of a new hire.

Question 36

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

Question 37

The purpose of job instruction training is to help supervisors eliminate employees who are weak hires.

Question 38

When innovation is important to a firm's competitiveness, the company should steer clear of hiring minorities.

Question 39

Continual training is necessary to update knowledge and skills in firms of all sizes.

Question 40

According to the Occupational Health and Safety Administration, 85 percent of all on-the-job accidents can be traced to substance abuse.

Question 41

Since Cynthia needs to obtain a replacement for Olivia (who is having a baby and will be out for 12 weeks), what would be the expected first choice to locate a replacement?

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

Question 42

By following constructive personnel policies, small firms can improve the relationship between management and a union.

Question 43

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

Question 44

ESOPs can motivate employees as well as allow for owners to withdraw from a business without having to sell the firm to outsiders.

Question 45

Which source of candidates do small business owners say accounts for most of their hires?

A) Walk-ins
B) Schools
C) Internet
D) Employees

Question 46

A limited but growing number of small businesses now use flexible benefit plans so employees can select the benefits they wish to receive.

Question 47

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

Question 48

The U.S. Department of Labor projects which trend in workforce composition?

A) Increased numbers of Hispanic workers
B) Decreased average age
C) Decreased numbers of Black and Asians workers
D) Increased participation of women in the workforce

Question 49

Judy, a small business owner of a CPA firm, wishes to persuade a highly qualified applicant to consider a position with her firm, even though the applicant has also had offers from large corporate CPA firms. What should Judy emphasize to the applicant?

A) family atmosphere with only three employees
B) long history of the firm with no take overs
C) more freedom to structure job responsibilities
D) retirement program and other benefits

Question 50

The differences among employees on such dimensions as gender, age, ethnicity, and race is known as

A) job specification.
B) workforce diversity.
C) human resources.
D) workforce differences.

Question 51

Jan is ready to franchise her retail clothing store and is needing to hire a new manager that has knowledge in the franchising process. Which recruiting source would be best?

A) temporary help agencies
B) leasing companies
C) headhunters
D) employees

Question 52

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

Question 53

One of the largest expense categories for most businesses is

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

Question 54

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

Question 55

PEOs typically charge a fee of at least 7 percent of payroll to a small business.

Question 56

Tom 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 57

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

Question 58

Profit-sharing is of little use as an incentive in small companies because profits are often too small to share.

Question 59

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

Question 60

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

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

Question 61

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

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

Question 62

Prospective employers can legally select employees based on the applicant's

A) age.
B) disabilities.
C) education.
D) gender

Question 63

Amanda is paid $0.45 for every widget she produces. This type of pay plan is:

A) a cafeteria plan.
B) called piecework.
C) part of a salary level.
D) included in stock incentives.

Question 64

Planned efforts to help workers master the knowledge, skills, and behaviors they need to perform their duties is known as

A) employee training.
B) human resources.
C) management development.
D) workforce diversity.

Question 65

Marcia knew the importance of testing candidates before hiring them, but 40% of the employees who successfully passed the employment test later performed poorly on the job. Marcia's employment test lacked

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

Question 66

In addition to it use to attract and hold key personnel, ESOPs can also:

A) allow employees to veto management decisions.
B) give employees a share of liability.
C) give owners a way to cash out of the business
D) provide an incentive for managers to reduce labor costs.

Question 67

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 68

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

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

Question 69

Katie owns a catering company where employees work both in preparing the food as well as serving at the events. What would be the best compensation system?

A) time-based
B) profit-sharing plan
C) piece rate
D) commission

Question 70

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 71

Which item plays the central role in attracting and motivating employees?

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

Question 72

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 73

Karen is checking references and finds former employers reluctant to do more than verify dates of employment even though the applicants have given their consent. A probable reason for their reluctance is that

A) records for former employees are typically not readily available.
B) the former employee is glad to have the potential employee not employed with their company.
C) respondents may fear litigation by former employees who fail to get jobs they seek.
D) Karen is asking too many personal questions.

Question 74

Preparation of employees for career advancement through education, job experiences, network development, and performance assessment is called

A) employee training.
B) human resources.
C) management development.
D) workforce diversity.

Question 75

The Americans with Disabilities Act requires employers of at least ____ employees to make ____ adaptations to facilitate the employment of individuals protected by the act.

A) 50, minimal
B) 15, reasonable
C) 100, specific
D) 10, verifiable

Question 76

To be the most useful, a test for a potential applicant should be

A) general in nature.
B) practical.
C) psychological in nature.
D) valid and reliable.

Question 77

Which percentage of recruiters and human resource professionals report that they research job applicants online with most using sources such as Facebook?

A) 91%
B) 67%
C) 43%
D) 35%

Question 78

Which question would be expected from a small business using behavioral interviews?

A) How did you learn to write so well?
B) Where did you attend school?
C) What do you do for fun?
D) Tell me about a time when you managed a major project.

Question 79

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.

Question 80

What type of interviewing involves asking applicants how they might react to hypothetical situations?

A) Behavioral
B) Depth
C) Stress
D) Traditional