Deck 18: Managing Human Resources in Entrepreneurial Firms

Question 1

At most small businesses,human resource management activities can best be described as ________.

A) formal and standardized
B) informal and flexible
C) competitive and brief
D) risky and illegal
E) nonexistent

Answer 1

B

Question 2

The Wonderlic Personnel Test is used by small businesses to measure an applicant's ________.

A) level of extroversion
B) honesty and ethics
C) psychological status
D) general mental ability
E) personality traits

Answer 2

D

Question 3

The Predictive Index is used by small businesses to measure all of the following EXCEPT ________.

A) dominance
B) patience
C) extroversion
D) reading level
E) blame avoidance

Answer 3

D

Question 4

Which of the following terms refers to people who create businesses under risky conditions?

A) investors
B) risk managers
C) developers
D) entrepreneurs
E) visionaries

Question 5

Which of the following is a common characteristic of HR at most small businesses?

A) dedicated HR manager responsible for recruiting
B) strict oversight of compensation regulations
C) intranet-based employee benefits enrollment
D) duplication of employee data in paperwork
E) sufficient sexual harassment training

Question 6

Human resource management in small firms is unlike HR management in large firms for all of the following reasons EXCEPT ________.

A) size
B) industry
C) priorities
D) informality
E) entrepreneurial nature

Question 7

In most small businesses,which of the following is the lowest priority for managers?

A) sales
B) finance
C) production
D) marketing
E) HR management

Question 8

All of the following HR activities are associated with successful high-growth SMEs EXCEPT ________.

A) maintaining employee morale
B) emphasizing training and development
C) conducting regular performance appraisals
D) providing job sharing options for employees
E) offering competitive recruitment packages

Question 9

Approximately what percentage of people working in the U.S.are employed by small businesses?

A) 5%
B) 10%
C) 25%
D) 50%
E) 75%

Question 10

Which of the following is a true statement regarding HR management at small businesses?

A) Owners of firms with less than 100 employees usually interview applicants.
B) Firms with less than ten employees do not have any human resources tasks.
C) In most cases, firms with at least 30 employees can afford an HR specialist.
D) Firms with less than 40 employees focus highly on human resources issues.
E) Human resources activities in small firms tend to be extremely formal.

Question 11

Elliot owns a catering business and employs 30 people.Elliot is uncertain about when to pay overtime and how to calculate overtime wages.The Web site of which of the following would be the most useful to Elliot?

A) Office of Personnel Management
B) Department of Labor
C) Department of Commerce
D) Department of the Treasury
E) Equal Employment Opportunity Commission

Question 12

Mark owns a small business that provides engineering consulting services.Mark is new to business ownership,and he has a list of questions he would like answered.Mark has logged on to the EEOC web site to search for answers.Which of Mark's questions is LEAST likely to be addressed on this web site?

A) What employees are exempt from overtime pay?
B) How do I know if EEOC laws apply to my business?
C) What should I do if someone files a charge against my firm?
D) What constitutes unfair treatment in the workplace?
E) How would I resolve a discrimination charge without facing a lawsuit?

Question 13

According to research,which of the following characteristics is associated with entrepreneurs?

A) relaxed
B) indifferent
C) persistent
D) dependent
E) trusting

Question 14

Which of the following risks commonly associated with small businesses can most likely be minimized by an HRIS?

A) data entry errors
B) personality testing
C) college recruiting
D) discrimination lawsuits
E) Title VII compliance

Question 15

Which of the following agencies offers small businesses the use of FirstStep Employment Law Advisor?

A) Department of Commerce
B) Department of Justice
C) Department of Labor
D) Department of Education
E) Department of the Treasury

Question 16

The Wonderlic Personnel Test is especially appropriate for small businesses because it is ________.

A) useful for training new hires
B) equivalent to the GRE test
C) developed by the EEOC
D) lengthy and thorough
E) easy to administer

Question 17

Small business owners can use O*NET when they need help with ________.

A) writing job descriptions
B) making legal decisions
C) filing accident reports
D) testing job applicants
E) filing business taxes

Question 18

Fred Landon owns a lawn care business and employs 35 people.Fred is unsure whether federal rules regarding employee discrimination apply to his small business.The Web site of which of the following agencies would be the most useful to Fred?

A) Bureau of Labor Statistics
B) Small Business Administration
C) Employee Benefits Security Administration
D) Equal Employment Opportunity Commission
E) Occupational Safety and Health Administration

Question 19

The purpose of FirstStep Employment Law Advisor's Web site is to help small employers to ________.

A) determine which state regulations are relevant to their business
B) file their tax forms and pay their federal and state taxes
C) realize which federal laws apply to their business
D) receive legal advice for specific HR problems
E) respond to legal charges from employees

Question 20

Jana owns a dry cleaning business and employs 25 people.She needs a safety and accident checklist that is specific to the dry cleaning industry.Jana would most likely find the information she needs on the ________ web site.

A) BLS
B) SBA
C) O*NET
D) EEOC
E) OSHA

Question 21

The Pension Protection Act of 2006 benefits small business employers by ________.

A) allowing them to defer tax payments
B) allowing employees to contribute online
C) eliminating fees linked to retirement plans
D) exempting employers from complex pension rules
E) making contributions for employers and employees into IRA plans

Question 22

Which of the following is the primary benefit for a small firm that uses the online services provided by testing vendors such as Wonderlic?

A) reduced testing fees
B) more applicant background checks
C) increased links to Internet job boards
D) highly accurate job specifications
E) increased pool of applicants

Question 23

Which of the following is NOT an aspect of the OSHA Sharp program?

A) Employers agree to correct identified hazards.
B) Employers undergo a hazard identification survey.
C) Employers agree to maintain a safety and health management system.
D) Employers receive certification for achieving high levels of safety awareness.
E) Employers receive visits from inspectors after every workers' compensation claim is filed.

Question 24

All of the following are options for small businesses looking for online training programs to improve their employees' skills EXCEPT ________.

A) National Association of Manufacturers
B) Small Business Administration
C) American Management Association
D) Equal Employment Opportunity Commission
E) SkillSoft

Question 25

All of the following are characteristics of work sampling tests EXCEPT ________.

A) simple to administer
B) inexpensive to use
C) informal procedures
D) easy to create
E) valid results

Question 26

According to research,a small business owner's familiarity with employees leads to greater ________.

A) flexibility within the firm
B) options in benefits packages
C) financial profits and rewards
D) teamwork and promotions
E) challenges in work assignments

Question 27

Which of the following is a work-life benefit offered exclusively by small businesses?

A) professional development seminars
B) disability and life insurance benefits
C) compressed workweeks during the summer
D) job rotation and job enrichment opportunities
E) regularly scheduled performance appraisals

Question 28

According to the text,what are the three tools that small businesses can use to improve their HR management practices?

A) reliability, creativity, and familiarity
B) informality, adaptability, and reliability
C) flexibility, familiarity, and informality
D) creativity, flexibility, and adaptability
E) familiarity, formality, and flexibility

Question 29

Which of the following is NOT a recognition tool used by most small businesses?

A) challenging work assignments
B) larger office or cubicle
C) special commendation
D) job enlargement
E) job rotation

Question 30

Which of the following activities would most likely make an employee at a small firm feel like one of the owners?

A) annual bonus
B) job enrichment
C) professional training
D) performance appraisal
E) job enlargement

Question 31

At a small business,all of the following are likely benefits of a flexible,informal,and familiar work environment EXCEPT ________.

A) adapting to workers' needs
B) offering extensive benefits packages
C) adapting quickly to competitive challenges
D) enabling workers to telecommute part-time
E) knowing employees' strengths and weaknesses

Question 32

All of the following are employee recruitment and selection tools used by most small firms EXCEPT ________.

A) employee referrals
B) assessment centers
C) Internet job boards
D) local newspaper ads
E) work sampling tests

Question 33

The Pension Protection Act of 2006 is available to employers with no more than ________ employees.

A) 100
B) 250
C) 500
D) 750
E) 1,000

Question 34

Charles Brown owns a small business with 60 employees.Currently his business does not have a retirement plan.He wants an easy method of offering retirement benefits to his employees.Which of the following would most likely be Charles' best option?

A) SIMPLE IRA plan
B) Roth IRA plan
C) stock options
D) 403(b) plan
E) 401(k) plan

Question 35

Lynn Wallace owns a cleaning supply store and has 55 employees.Lynn needs to hire an accounts services manager.She wants a simple but formal method for screening applicants that is neither costly nor highly time consuming.Which of the following would be most appropriate for Lynn?

A) assessment center
B) situational judgment test
C) work sampling test
D) miniature job training
E) polygraph test

Question 36

Which of the following terms refers to a testing method used by small businesses that is based on measuring a candidate's performance on actual basic job tasks?

A) work sampling
B) situational interview
C) skills inventory
D) assessment center
E) performance appraisal

Question 37

What is the primary reason that small firms use the Internet for employee training programs?

A) niche markets
B) relatively low costs
C) OSHA guidelines
D) SBA requirements
E) guaranteed results

Question 38

Approximately what percentage of small firms offers retirement benefits to employees?

A) 5%
B) 15%
C) 35%
D) 50%
E) 75%

Question 39

The owner of A-1 Construction paid more in workers' compensation costs than salaries last year.Which of the following would most likely help the owner of A-1 Construction?

A) taking online courses through the SBA
B) screening employees with the Predictive Index
C) using web-based recruiting tools like Monster.com
D) requesting a consultation with an OSHA safety expert
E) referring to the FirstStep Employment Law Advisor

Question 40

Which of the following is a true statement regarding SIMPLE IRAs?

A) With a SIMPLE IRA, an employer must use a bank instead of an insurance company.
B) SIMPLE IRAS require employees to make contributions each month.
C) Employer contributions to SIMPLE IRAS are not tax deductible.
D) Employers usually handle the IRS paperwork for SIMPLE IRAs.
E) SIMPLE IRAs have low administrative costs.

Question 41

Julie has a small accounting firm with only six employees,so she handles HR tasks manually.Julie recently hired a new employee.Which of the following forms will Julie most likely need on the worker's first day of employment?

A) reference check form
B) unemployment claim form
C) employment agreement form
D) vacation request form
E) absence report form

Question 42

Which of the following is NOT one of the primary reasons that small businesses use PEOs?

A) managing overwhelming personnel-related paperwork
B) fulfilling personnel-related legal responsibilities
C) supporting the HR department temporarily
D) acquiring affordable insurance and benefits
E) increasing firm's professionalism and performance

Question 43

Which of the following is a characteristic of a PEO?

A) PEOs become co-employers of record for the firm's employees.
B) PEOs usually work for firms with at least 100 employees.
C) Most PEOs charge 8% to 10% of a firm's total payroll.
D) PEO's usually support a firm's HR manager.
E) PEOs are legally limited to payroll tasks.

Question 44

Most small businesses begin computerizing HR management tasks when they have at least ________ employees.

A) 10
B) 30
C) 50
D) 70
E) 100

Question 45

Which of the following is the most likely result of treating family and non-family employees at a small business differently?

A) communication difficulties
B) recruiting problems
C) benefits discrepancies
D) union involvement
E) poor morale

Question 46

Beth recently opened an embroidery business and has four employees who work full-time for her.Which of the following will Beth most likely use to manage her company's human resources tasks?

A) manual HR system
B) automated HR system
C) HR outsourcer system
D) HR scorecard system
E) HR management information system

Question 47

A small business owner would most likely use a professional employer organization in order to ________.

A) network with industry professionals
B) compare HR strategies with other firms
C) automate succession planning
D) handle HR activities like payroll
E) conduct organized labor activities

Question 48

Which of the following terms refers to an outside vendor that manages HR functions for small businesses?

A) professional employer organization
B) human resource outsourcer
C) employee leasing firm
D) staff leasing firm
E) all of the above

Question 49

Which of the following best explains why effective communication methods are essential to small businesses?

A) It is important to keep employees current on financial matters.
B) Managers lack the time to become familiar with all employees.
C) A few disgruntled employees can have a significant negative effect.
D) Informality and flexibility require managers to be prepared for change.
E) Limited investments in technology require small firm employees to adapt.

Question 50

All of the following are informal training methods recommended to small businesses EXCEPT ________.

A) paying tuition for specialized courses
B) arranging weekly classes led by paid experts
C) providing a library of learning-based DVDs
D) sending employees to association meetings
E) identifying online training opportunities

Question 51

David owns a small architecture firm with 75 employees.He wants to use a PEO to handle his firm's HR activities.David is in the process of investigating Assure Group,a PEO.Which of the following questions is LEAST relevant to David's decision regarding whether or not to hire Assure?

A) Will employee benefits be fully insured or partially self-funded by Assure?
B) What credit and professional references of Assure are available?
C) What HR and legal expertise is available from the Assure staff?
D) What is the process that Assure uses to handle HR-related legal issues?
E) How does Assure effectively communicate HR needs with its employees?

Question 52

A ________ can help a small business eliminate extensive HR-related paperwork,stay in compliance with Title VII,OSHA,and pension plan rules,and attain low-cost insurance.

A) professional employer organization
B) human resource information system
C) management information system
D) transaction-processing system
E) compilation of forms book

Question 53

All of the following are simple communication programs recommended to small businesses EXCEPT ________.

A) anonymous online employee reporting systems
B) regularly scheduled meetings
C) updated employer Web sites
D) scheduled employee retreats
E) regular employee newsletters

Question 54

Training programs at most small firms tend to focus on ________.

A) specific competencies needed at the firm
B) long-term management skills
C) strategy needs at the firm
D) HR management skills
E) marketing and finance

Question 55

Which of the following is a recommended method for establishing fairness at a family business?

A) avoiding family confrontations
B) requiring family members to telecommute
C) avoiding the hiring of family members
D) eliminating privileges for family members
E) promoting only non-family members

Question 56

David owns a small architecture firm with 75 employees.He wants to use a PEO to handle his firm's HR activities.David is in the process of investigating Assure Group,a PEO.Which of the following undermines the argument that David should use Assure Group?

A) Assure recently changed its business name.
B) Assure's Web site indicates that customers experience only modest savings.
C) Assure requires business owners to complete questionnaires about workplace safety.
D) Assure provides payroll, recruiting, and screening services to customers.
E) Assure's Web site has a link to a national PEO association.

Question 57

Training programs at most small firms can best be described as ________.

A) systematic
B) incompetent
C) nonexistent
D) expensive
E) informal

Question 58

David owns a small architecture firm with 75 employees.He wants to use a PEO to handle his firm's HR activities.David is in the process of investigating Assure Group,a PEO.Which of the following best supports the argument that David should use Assure Group?

A) The Assure representative explains that the PEO has been in business for one year.
B) The Assure representative does not ask David about his company's current HR policies.
C) The Assure representative promises David that his company will see substantial savings.
D) The Assure representative asks David many questions about his company's safety policies.
E) The Assure representative informs David that Assure recently changed its name.

Question 59

All of the following are recommended activities for small business managers who are in the process of selecting a professional employer organization EXCEPT ________.

A) reviewing the PEO's service agreement closely
B) analyzing how the employee benefits are funded
C) checking the professional rating assigned to the PEO
D) assessing the PEO's staff for experience and depth
E) asking how the PEO will provide its services

Question 60

Jill Roberts owns a flower shop and employs 20 people.Jill lacks the time and knowledge to efficiently handle HR tasks like payroll and benefits management.Which of the following would be most appropriate for Jill in this situation?

A) adhering to the ADA
B) filing with COBRA
C) finding an HMO
D) creating a PAQ
E) hiring a PEO

Question 61

Which of the following makes it possible for employees to self-enroll in a firm's benefits program through a secure Internet site?

A) executive support system
B) transaction-processing system
C) management information system
D) human resources information system
E) electronic performance support system

Question 62

Approximately one-third of people working in the U.S.are employed by small firms.

Question 63

While most small firms are affected by the Fair Labor Standards Act and the Occupational Safety and Health Act,only large firms need to be familiar with the Consumer Credit Protection Act.

Question 64

In most cases,when a company has at least 100 employees,it can afford to hire an HR specialist to handle recruiting,training,and compensating employees.

Question 65

Which of the following terms refers to interrelated components working together to collect,process,store,and disseminate information to support a firm's human resource management activities?

A) transaction-processing system
B) high-performance work system
C) human resource information system
D) human resource management system
E) electronic performance support system

Question 66

All of the following are reasons that firms install human resource information systems EXCEPT ________.

A) worker performance monitoring
B) online self-processing
C) transaction processing
D) system integration
E) reporting capabilities

Question 67

Research indicates that entrepreneurs tend to need control as well as applause.

Question 68

All of the following tasks can be managed with most HR software programs EXCEPT ________.

A) payroll
B) attendance
C) scheduling
D) outplacement
E) benefits management

Question 69

A management information system helps managers make effective decisions by ________.

A) providing detailed information about tax liabilities
B) comparing a firm's sales with competitors' sales
C) automatically updating employee records and data
D) regularly generating standardized, summarized reports
E) providing data about a firm's customer orders and returns

Question 70

The Wonderlic Personnel Test measures personality traits and behaviors,while the Predictive Index measures general mental ability.

Question 71

An HRIS increases the reporting capabilities of managers because an HRIS ________.

A) allows a firm to plan its HR activities
B) integrates separate HR tasks
C) processes a firm's payroll
D) works on a firm's intranet
E) updates personnel data

Question 72

Without tools like Web-based recruiting and computerized testing,small businesses are at a competitive disadvantage against large firms.

Question 73

Human resource management activities,such as training,appraisals,and hiring,are typically formal at small firms but informal at large firms.

Question 74

A(n)________ system provides a firm's managers and accountants with detailed information about short-term,daily activities,like accounts payables and order status.

A) transaction-processing
B) executive support
C) management information
D) employee assistance
E) electronic performance

Question 75

A small business employer who is unsure what to do when faced with a discrimination charge would most likely find useful information on the EEOC Web site.

Question 76

Which of the following terms refers to the interrelated people,data,technology,and organizational procedures a firm uses to collect,process,store,and disseminate information?

A) talent management system
B) information system
C) applicant tracking system
D) competency model
E) strategy map

Question 77

Which of the following provides upper management with information for making long-term decisions and developing strategies?

A) management information system
B) integrated management system
C) transaction-processing system
D) online self-processing system
E) executive support system

Question 78

Online employee testing and training programs are frequently used by small businesses because such tools save both time and money.

Question 79

Since Internet job boards are limited to large firms,small business owners are forced to recruit through local newspapers.

Question 80

All of the following are common functions of a firm's human resource intranet EXCEPT ________.

A) tracking job applicants
B) providing electronic pay stubs
C) filing federal and state employment taxes
D) providing electronic employee handbooks
E) registering employees for training programs