Deck 20: Managing Human Resources

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

Payroll is only a moderate expense for most small businesses.

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

The balance of the South African workforce is slowly advancing toward increased proportions of women, people with disabilities and black people.

Question 16

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

Question 17

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

Question 18

Private employment agencies administer the various state unemployment insurance programmes.

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

Job descriptions are used primarily to avoid lawsuits that might result from the South African Compensation for Occupational Injuries and Diseases Act.

Question 25

Failure to check the background of a new hire can lead to a negligent hiring lawsuit.

Question 26

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

Question 27

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

Question 28

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

Question 29

Training should not be necessary for a new employee to perform the duties for which he or she has been hired.

Question 30

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

Question 31

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

Question 32

Although research has shown a growth in spending on training, much of the training is not actually applied on the job.

Question 33

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 34

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

Question 35

When innovation is important to a business's competitiveness, the company should steer clear employees within the categories of applicants designated for affirmative action.

Question 36

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

Question 37

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

Question 38

Requesting a credit report to establish an applicant's employment eligibility is illegal according to the South African National Credit Act.

Question 39

A person who interviews well should not automatically be hired.

Question 40

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

Question 41

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

Question 42

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

Question 43

Employee benefits are expensive, amounting to more than 40 per cent of payroll expense for many small businesses.

Question 44

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 45

Michael, a small business owner of a web-development business, wishes to persuade a highly qualified applicant to consider a position with his business, even though the applicant has also had offers from large businesses.What should Michael emphasise to the applicant?

A)Family atmosphere with only three employees.
B)Long history of the business with no take overs.
C)More freedom to structure job responsibilities.
D)Retirement programme and other benefits.

Question 46

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

Question 47

One of the largest expense categories for most businesses is:

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

Question 48

A human resource manager is unnecessary when employees are represented by a union.

Question 49

The South African Department of Labour projects which trend in workforce composition?

A)Increased numbers of white workers.
B)Decreased average age.
C)Decreased numbers of black workers.
D)Increased participation of women and black people in the workforce.

Question 50

PEOs typically charge a fee of at least seven per cent of payroll to a small business.

Question 51

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

Question 52

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 53

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 54

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

A)Temporary help agencies.
B)Leasing companies.
C)Headhunters.
D)Employees.

Question 55

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

Question 56

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

Question 57

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 58

Most small businesses now use flexible benefit plans so employees can select the benefits they wish to receive.

Question 59

As a business grows, it experiences pressure to formalise its personnel policies and procedures.

Question 60

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 61

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 62

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 63

Small businesses give employees a share of ownership in the business through:

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

Question 64

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 65

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 66

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

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

Question 67

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 68

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

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

Question 69

Which question would be expected from a small business using behavioural 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 70

Amanda is paid R5.00 for every unit of a product she produces.This type of pay plan is:

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

Question 71

Which percentage of recruiters and human resource professionals report that they research job applicants online using Facebook?

A)92%
B)58%
C)31%
D)20%

Question 72

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 73

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 74

The South African Employment Equity Act requires employers of at least __50__ employees to make ____ adaptations to facilitate the employment of individuals protected by the act.

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

Question 75

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 76

In addition to its 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 labour costs.

Question 77

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 78

Profit-sharing plans:

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

Question 79

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 80

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

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