Deck 18: Managing Human Resources in Small and Entrepreneurial Firms

Question 1

The purpose of the Web site of "FirstStep Employment Law Advisor" 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

Answer 1

C
Explanation: C)The U.S. Department of Labor's "FirstStep Employment Law Advisor" helps small employers determine which laws apply to their business.

Question 2

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

Answer 2

False
Explanation: More than half the people working in the United States-about 68 million out of 118 million-work for small firms.

Question 3

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)SBA
B)O*NET
C)EEOC
D)OSHA

Answer 3

D
Explanation: D)OSHA's site provides, among other things, easy access to the OSHA Small Business Handbook. This contains practical information for small business owners, including industry-specific safety and accident checklists.

Question 4

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

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

Question 5

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)Small Business Administration
B)Employee Benefits Security Administration
C)Equal Employment Opportunity Commission
D)Occupational Safety and Health Administration

Question 6

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

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

Question 7

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

A)creative
B)indifferent
C)controlling
D)personable

Question 8

Research indicates that entrepreneurs tend to crave control.

Question 9

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 10

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 the Treasury

Question 11

How does HR management differ in small and large firms?

Question 12

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

A)Owners of firms with less than 100 employees usually handle HR tasks.
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)Human resources activities in small firms tend to be extremely formal.

Question 13

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

Question 14

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 15

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

Question 16

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)nonexistent

Question 17

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

A)investors
B)developers
C)entrepreneurs
D)visionaries

Question 18

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)Equal Employment Opportunity Commission

Question 19

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

Question 20

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

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

Question 21

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

Question 22

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

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

Question 23

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

Question 24

Which of the following is an aspect of the OSHA Sharp program?

A)free tools for attracting more job applicants
B)legal advice for all business aspects
C)certification process that employers have commendable levels of safety awareness
D)Employers receive visits from inspectors after every workers' compensation claim is filed.

Question 25

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 26

When Hank applied for a job with Morton Consulting, he was given the Predictive Index. What was Morton Consulting least likely attempting to measure with the Predictive Index?

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

Question 27

Small business owners can contract with private vendors for training workers, testing applicants, and appraising employees.

Question 28

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

Question 29

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

Question 30

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 31

In addition to offering employers courses in writing job descriptions and interviewing job candidates, the Small Business Administration also offers free job postings for small business owners looking for qualified applicants.

Question 32

For a fee, a small business can receive an on-site safety consultation with an OSHA safety expert to help improve the health and safety systems at the worksite.

Question 33

Appropriately compensating employees is difficult for small businesses because of the lack of access to salary surveys.

Question 34

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)increased pool of applicants
C)highly accurate job specifications
D)more applicant background checks

Question 35

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)requesting a consultation with an OSHA safety expert
D)referring to the "FirstStep Employment Law Advisor" for assistance

Question 36

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

A)writing job descriptions
B)filing accident reports
C)testing job applicants
D)filing business taxes

Question 37

Research indicates that the majority of workplace accidents, especially serious accidents, occur in firms that employ less than 50 workers.

Question 38

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)easy to administer

Question 39

Kate is applying for a job at Logan Electronics, a small firm. Kate has been asked to take the Wonderlic Personnel Test. What is Logan Electronics most likely trying to measure?

A)honesty and ethics
B)psychological status
C)general mental ability
D)personality traits

Question 40

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

Question 41

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

Question 42

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

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

Question 43

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

A)flexibility with HR policies
B)financial profits and rewards
C)clarification of expectations
D)creativity in recruiting practices

Question 44

Which of the following is NOT an informal training method suggested for small businesses?

A)internal sales seminars
B)offer to cover the tuition for special classes
C)provide a library of tapes and DVDs for systematic, disciplined learning during commute times
D)encourage the sharing of best practices among associates

Question 45

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

A)SIMPLE IRAS require employees to make contributions each month.
B)Employer contributions to SIMPLE IRAS are not tax deductible.
C)Employers usually handle the IRS paperwork for SIMPLE IRAs.
D)SIMPLE IRAs have low administrative costs.

Question 46

With the Streamlined Interviewing Process, which of the following is NOT one of the 4 basic required factors?

A)motivation
B)personality
C)teamwork skill
D)intellectual capacity

Question 47

Approximately what percentage of small businesses have career development programs?

A)12%
B)50%
C)72%
D)90%

Question 48

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)marketing and finance

Question 49

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

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

Question 50

At a small business, what is the most likely benefit of a flexible, informal, and familiar work environment?

A)gaining market share quickly
B)offering extensive benefits packages
C)providing regular, online training courses
D)knowing employees' strengths and needs

Question 51

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)401(k)plan

Question 52

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

A)100
B)250
C)500
D)750

Question 53

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

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

Question 54

What risks are faced by most small business owners regarding laws, litigation, and safety? What government tools are available to assist small businesses with these risks?

Question 55

Which of the following is NOT an employee benefit that fits better with small businesses?

A)make them feel like owners
B)consistent schedules
C)make sure they have what they need to do their jobs
D)constantly recognize a job well done

Question 56

Which of the following is a work-life benefit offered almost 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

Question 57

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

A)professional association Web sites
B)local newspaper ads
C)Internet job boards
D)assessment centers

Question 58

How has the Internet changed how small businesses compete with large businesses in regards to HR-related issues?

Question 59

In a brief essay, discuss the Wonderlic Personnel Test and the Predictive Index for screening employees. What are the advantages and disadvantages of each for small businesses?

Question 60

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

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

Question 61

What are the strengths of small businesses? How can small businesses use these strengths to improve their HRM practices?

Question 62

The simplicity of SIMPLE IRAs makes them appropriate for small businesses with 100 or fewer employees.

Question 63

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)benefits discrepancies
C)union involvement
D)poor morale

Question 64

Rudimentary human resource practices may put small business owners at a competitive disadvantage.

Question 65

According to Stephen Covey, what can small businesses do to provide job-related training without actually establishing expensive formal training programs?

Question 66

Managers who prepare for an interview using the streamlined interview process should focus on all of the following factors about a candidate EXCEPT ________.

A)personality
B)age and skills
C)work motivation
D)knowledge and experience

Question 67

Compressed work weeks, flexible work schedules, and occasional free meals are work-life benefits that small firms use to retain good employees.

Question 68

Roberto makes sure that all non-family member hires at his organization know what their responsibilities are and their potential ability to be promoted. Roberto is engaging in the small business fairness step of:

A)quick, scheduled meetings
B)confront family issues
C)set the ground rules
D)erase privilege

Question 69

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

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

Question 70

Small businesses typically do not provide employee training that emphasizes long-term management skills because of concerns regarding employee turnover.

Question 71

What work-life benefits are offered by small firms that are not available with large firms? If given a choice, would you rather work for a small or a large firm? Use specific details to support your argument.

Question 72

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)PEOs are legally limited to payroll tasks.

Question 73

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)all of the above

Question 74

Unlike large organizations, small businesses benefit from familiarity with employees and flexibility and informality in HR management.

Question 75

John owns a family business and wants to avoid any appearance that family members are benefiting unfairly from the sacrifice of others workers. This represents the fairness step of:

A)confront family issues
B)treat people fairly
C)set the ground rules
D)family first

Question 76

In order to recruit top-quality employees, the majority of small businesses offer retirement benefits.

Question 77

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

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

Question 78

Rob, the owner of A-Tech, a small software firm, plans to use the streamlined interview process to interview candidates for a programming position at the company. Rob should first ________.

A)ask questions about significant areas in a candidate's life
B)probe specific factors during the interview
C)devise a plan for the interview
D)prepare for the interview

Question 79

Although employer contributions to SIMPLE IRAS are tax deductible, the plans have fairly high administrative costs.

Question 80

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)filing with COBRA
B)finding an HMO
C)creating a PAQ
D)hiring a PEO