Deck 10: Human Resource Management

Question 1

Human resources has been defined in economics as the quantity and quality of human effort directed toward producing goods and services.

Answer 1

True

Question 2

The screening of résumés or applications prior to beginning an interview process for a job and the checking of references is important.

Answer 2

True

Question 3

If a job is more central to an organization and has higher required skill levels than other positions, then the importance of employee references decreases.

Answer 3

False

Question 4

Bonus systems are as well defined as profit sharing and the level of reward is independent of the discretion of an entrepreneur.

Question 5

Equity theory is where people judge how we are being treated relative to how we see others being treated.

Question 6

The success of entrepreneurial firms pursuing new opportunities requires a number of deliberate actions by the business founder concerning human resources issues.

Question 7

One action a small business owner might take to establish that the firm is not discriminatory would be to advertise the job widely in several publications.

Question 8

In an entrepreneurial business, a job description document is meant to be a formal, highly structured document as it might be in a large corporation.

Question 9

The setting of goals for an employee allows an entrepreneur to judge how well the employee is performing.

Question 10

Human resource programs for small companies are the same and have the same effects as large businesses.

Question 11

Large firms can absorb bad employees easier than small businesses because they have organizational slack.

Question 12

In an interview, an owner can ask an applicant if he or she has ever been arrested for a crime.

Question 13

John reviews Michael's performance on the goals and outcomes that were set 12 months ago.This is called a goal review.

Question 14

The Fair Labor Standards Act (FLSA)establishes a minimum wage for all workers, except workers on small farms and administrative employees.

Question 15

Human resources, defined in economics terms, is the processing of employees in monetary terms.

Question 16

Whether hiring for a line worker or a first line manager, an owner should devote the same amount of time in checking references.

Question 17

A company can use personality testing, even though there is no direct link between the test and the skill set necessary for the job.

Question 18

The Civil Rights Act currently applies to firms with more than 10 employees.

Question 19

In a small firm, the cost of health insurance per employee will be equal to that of a large firm.

Question 20

A frustration of the commission system comes when the firm does not change the rate of the commission even when the company is doing well.

Question 21

Workers' compensation insurance rates are regulated by the federal government and are uniform across the country.

Question 22

Any fines levied by the Occupational Safety and Health Administration (OSHA)are equal for entrepreneurial businesses with fewer than 25 employees as they are for large businesses.

Question 23

Human resource management includes ________ the employees.

A)hiring
B)inspiring
C)managing
D)all of these

Question 24

The rates of workers' compensation insurance for individual firms within a particular state are fairly standard and are generally based on the industry and size of the firm.

Question 25

The time period for which profit sharing or bonuses are given should be relevant to the individuals in a firm and within the realities and constraints of the business.

Question 26

Which of the following represents the impact of a poor employee on the functioning of a small business?

A)The problems may bleed over to other employees.
B)The organization does not fully benefit from the employee.
C)The owner's time is lost.
D)All of these

Question 27

Unemployment compensation is the financial assistance for some period of time to those people who lose their jobs through no fault of their own.

Question 28

Human resources is defined in economics terms as the ________ and ________ of human effort directed toward producing goods and services.

A)producing; manufacturing
B)monetary; utility
C)quantity; quality
D)developing; producing

Question 29

Which of the following is a document that describes a job that is to be filled?

A)Job design
B)Job analysis
C)Job plan
D)Job description

Question 30

An owner must develop a paper trail regarding an employee's bad performance.

Question 31

When a small business owner is advertising a job, the company needs to attract ________ pool of applicants to choose from.

A)the smallest
B)the largest
C)the best qualified
D)a diverse

Question 32

OSHA stands for Office Standards and Health Administration.

Question 33

Workers' compensation is a law designed so that employees who are disabled or injured while on the job are provided with some type of compensation.

Question 34

ADA stands for the Americans with Disabilities Act.

Question 35

A small business owner should be diligent in documenting the performance of employees over time.This helps the owner to terminate an employee for poor performance and also efficiently handle any legal issues that may arise.

Question 36

Human resources in family businesses are critical, but since family members make up many of the significant employees in the company, everything becomes more delicate.

Question 37

OSHA has attempted to shape its regulations to be more lenient in its regulations on large businesses than on small businesses.

Question 38

________ is the quantity and quality of human effort directed toward producing goods and services.

A)Human power
B)Human skills
C)Human knowledge
D)Human resource management

Question 39

Human resource management is not as important in family businesses.

Question 40

Employees are happy and satisfied when they feel that their compensation-given their performance-is equal to that of other employees in the firm or other individuals in similar situations.This is called the equity theory.

Question 41

A program that allows employees to contribute to their retirement on a tax-free basis is ________.

A)401(k)
B)401(C)
C)401(F)
D)401(T)

Question 42

Which of the following laws states an employer cannot discriminate in pay to men and women who do the same job?

A)The Americans with Disabilities Act
B)The Civil Rights Act
C)The Equal Pay Act
D)The Fair Labor Standards

Question 43

Identify an accurate statement about the hybrid compensation system.

A)An entrepreneur should not differentiate the level of rewards among his employees and should maintain a well-defined structure.
B)An entrepreneur should provide bonuses in a timely manner that is relevant to the individuals in the firm and within the realities and constraints of the business.
C)An entrepreneur needs to visualize a quarter as a relevant time frame, whereas workers need to visualize weekly feedback on their performance through a bonus.
D)An entrepreneur need not consider the industry standards in developing a compensation system.

Question 44

Which of the following statements is true of the commission compensation system?

A)It creates an overall healthy environment within a firm when the salespeople are very focused on their commission.
B)It creates a uniform system in a firm where every employee is paid the same amount as commission, and it is independent of their performance.
C)It creates a rigid compensation system where abuse is minimal, and it removes the frustration for employees and the entrepreneur.
D)It creates frustration when a firm either does or does not change a commission program to reflect the growth of the firm.

Question 45

Which of the following statements is true of the Fair Labor Standards Act (FLSA)?

A)It requires that all nonexempt employees who work over 40 hours a week should be paid at the rate of time and a half.
B)It includes all workers, including workers on small farms and administrative employees.
C)It provides that each and every business must provide unfettered access to all disabled people.
D)It allows an entrepreneur to employee children under the age of 15 years if he or she can establish the safety of the working environment.

Question 46

A(n)________ is an index wage that requires the minimum wage to be at least what someone who works 40 hours a week needs to stay out of poverty.

A)wage ratio
B)living wage
C)wage ceiling
D)efficiency wage

Question 47

When a small business owner pays a commission in addition to a basic salary, it is called ________.

A)a bonus
B)profit sharing
C)a salary
D)hybrid compensation

Question 48

Which of the following laws prohibits discrimination in hiring, dismissal, or promotion on the basis of race, color, gender, religious beliefs, or national origins?

A)The Americans with Disabilities Act
B)The Civil Rights Act
C)The Fair Labor Act
D)The Age Discrimination Act

Question 49

Currently under the ________, firms with more than 50 employees are required to offer their employees insurance.

A)Americans with Disabilities Act
B)Equal Pay Act
C)Fair Labor Standards Act (FLSA)
D)Affordable Care Act

Question 50

Job advertisements written for a new hire should

A)contain the current challenges faced by the industry.
B)be similar to the generic advertisements placed every week.
C)give maximum information needed for a potential applicant.
D)be kept concise and should communicate the culture of the firm.

Question 51

The government regulates the employment of children under the age of ________.

A)16
B)18
C)20
D)21

Question 52

In an interview, an interviewer can ask questions about

A)disability.
B)prior convictions.
C)arrest record.
D)religion.

Question 53

Which of the following terms means a set amount of compensation for a given time period?

A)Paycheck
B)Hourly wage
C)Salary
D)Commission

Question 54

A job offer is finalized by ________.

A)a handshake
B)employer putting it in writing
C)candidate reading the offer
D)candidate signing the offer

Question 55

An example of a benefit a company can offer is

A)401(k)
B)retirement plans.
C)sick leave.
D)all of these.

Question 56

Which of the following laws established a minimum wage for workers?

A)The Fair Labor Standards Act
B)The Civil Rights Act
C)The Americans with Disabilities Act
D)The Sherman's Antitrust Act

Question 57

Which of the following information should be obtained in the application-interview process?

A)Education and training
B)Work history
C)Social Security number
D)All of these

Question 58

A firm sets up a low level of salary but offers to share a percentage of its profits at the end of the year.What is this called?

A)Bonus
B)Profit sharing
C)Salary
D)Bonus plus

Question 59

When a small business owner pays an individual a percentage of sales, this is called a ________.

A)paycheck
B)bonus
C)commission
D)salary

Question 60

Which of the following statements is true of the Civil Rights Act?

A)It allows for the promotion of the differently abled employees irrespective of their performance.
B)It provides that each and every business must provide unfettered access to all disabled people.
C)It ensures that all individuals are judged according to the discretion of an entrepreneur.
D)It currently applies to all firms with more than 25 employees.

Question 61

Which of the following statements is true of a performance review in an entrepreneurial business?

A)A new firm should wait for a year to give feedback, and newer generations of employees are looking for such feedback.
B)A complex form should be followed for all performance reviews that are given in writing to assure its validity.
C)The formal conversation with a worker who is doing a good job and appreciating his or her work is a form of compensation.
D)If a worker is not performing as expected, then the employer should give only positive feedback to boost the worker's morale.

Question 62

List the elements that should be on a job description.

Question 63

A(n)________ is needed regarding all employees, and the owner must be diligent in the attempt to assist a poorly performing employee.

A)paper trail
B)performance review
C)audit profile
D)firing document

Question 64

According to the workers' compensation requirements, what are the conditions under which employees are compensated for their injuries?

A)The employee is injured from an unsafe workplace where he/she is working.
B)The employee has physical injuries due to unsafe working condition.
C)The injury is caused due to the employer's negligence and fault.
D)All of these

Question 65

________ theory states that all individuals judge how we are treated relative to how we see others being treated.

Question 66

The Americans with Disabilities Act regulates firms with how many employees?

A)20 or more employees
B)15 or more employees
C)Less than 20 employees
D)Less than 15 employees

Question 67

In a family business, the founder needs to choose a(n)________ and prepare that person to take over the business.

Question 68

List and describe the four types of basic compensation.

Question 69

A(n)________ is the review by an entrepreneurial business owner of an employee's goals and outcomes on those goals over some given period.

Question 70

Which of the following statements is true of a family business?

A)It is generally run by and for the benefit of a particular family.
B)It gives no importance for human resource management in the business.
C)It seldom takes rational decisions for the benefit of the business.
D)It eliminates issues of discrimination if the firm is large.

Question 71

Identify a legal question that an employer can ask during an interview.

A)"Are you married?"
B)"Are you heterosexual or homosexual?"
C)"Do you have a Social Security number?"
D)"Are you a Republican or a Democrat?"

Question 72

What does OSHA stand for?

A)Occupational Safety and Help Administration
B)Occupational Safeguard and Health Administration
C)Occupational Safety and Health Administration
D)Occupational Shelter and Help Administration

Question 73

A(n)________ is a pay system where there is a salary with commission.

Question 74

List some of the ways to advertise a job and to attract a large pool of applicants.

Question 75

Which of the following statements is true of the Americans with Disabilities Act (ADA)?

A)It covers those firms with 50 or more employees.
B)It provides that each and every business must provide unfettered access to all differently abled people.
C)It is applicable to large business firms with a turnover of more than 10 million dollars.
D)It allows entrepreneurial businesses to exclude candidates who need physical adaptations to work at the firm.

Question 76

List the elements on a job application.

Question 77

According to the book, which of the following firms needs to pay special attention to OSHA guidelines?

A)Manufacturing firms
B)IT firms
C)Family business forms
D)None of these

Question 78

Mike sells $10,000.00 worth of product; the owner gives him $2,000.00.This is called a(n)________.

Question 79

An employee cannot sue a small business owner for injury, if the individual accepts ________.

A)unemployment compensation
B)workers' compensation
C)social security
D)employment compensation

Question 80

What percentage of states has an unemployment compensation law?

A)25
B)50
C)75
D)100