Deck 18: Human Resource Management: Small Business Considerations

Question 1

When interviewing a promising prospective employee,it is best to only have one interviewer.This helps you be sure that you understand the individual as well as possible.

Answer 1

False

Question 2

The employee referral method is an example of an overused,high-cost recruitment method.

Answer 2

False

Question 3

Lines of communication means having a way for the person who has failed to meet a metric,or made a mistake,or is facing firing to have their side of the story heard.

Answer 3

False

Question 4

Meritocracy is the management philosophy of selecting and promoting people based solely on their being the most capable person for the job.

Question 5

Off-the-job training is delivered to employees while they perform their regular jobs.

Question 6

In employee leasing,the leased employees actually work for the hiring company rather than the leasing company.

Question 7

The Family and Medical Leave Act applies to all employers.

Question 8

Adding employees in a firm increases both the amount of work that can be done and the demands on the owner.

Question 9

Off-the-job techniques include apprenticeships,internships,and job rotation.

Question 10

On-the-job techniques include orientations,job instruction training,lectures,and case studies.

Question 11

A common reason people leave a company is if they feel they are not developing professionally.

Question 12

Networking is a relatively low-cost,although time-intensive,method of recruiting.

Question 13

Reviewing employees' performance is a one-time process done after the probationary period.

Question 14

After determining whether one is hiring someone for an hourly or salaried position,one of the first steps in developing a compensation plan is to determine the organization's salary philosophy.

Question 15

Perks is a great way to provide long-term boosts in motivation.

Question 16

The two key factors in traditional leadership theories are task and person.

Question 17

Making training an ongoing process is a good way to encourage dialog with employees when their learning curve goes flat.

Question 18

In the context of employee rewards,if entrepreneurs work based on an open-book policy and the company hits a downturn and promises cannot be met,employees are more likely to react badly since they have little or no understanding of the firm's situation.

Question 19

It is preferable to hire a moderately qualified person if there is an immediate need for someone.

Question 20

A job description defines and discusses all the essential knowledge,skills,and abilities that are needed to fill a position.

Question 21

_____ refers to the trial period in which an employee has temporary status before a formal offer to work full time is presented.

A) Test period
B) Probationary period
C) Employee referral period
D) Psychological contract period

Question 22

_____ is a relatively low-cost,although time-intensive,method of recruiting in which people connect with colleagues,business professionals,friends,vendors they have strong relationships with,alumni,and advisory board members.

A) Internet recruiting
B) Employee referral
C) Networking
D) Outsourcing

Question 23

_____ allows you to search a resume database or post a job description on the web.

A) Crowdfunding
B) Employee referral
C) Internet recruiting
D) Benchmarking

Question 24

Which of the following is true of the Americans with Disabilities Act?

A) It is applicable to all employers.
B) It is only applicable to employers with 100 or more employees.
C) It is only applicable to employers with 15 or more employees.
D) It is only applicable to employers with 50 or more employees and contracts or subcontracts of $50,000 plus.

Question 25

The Immigration Reform and Control Act of 1886 is applicable to _____.

A) all employers
B) only employers with 100 or more employees
C) only employers with 15 or more employees
D) only employers who have 15 or more employees for each workday in each of at least 20 calendar weeks

Question 26

Which of the following is a disadvantage of hiring a full-time employee?

A) Hiring full-time employees incurs costs of training time,employee tax,and accounting costs.
B) Hiring full-time employees makes it imperative for the employer to spend significant time with the business without taking any time off.
C) Full-time employees take more time to understand the business.
D) Full-time employees are reluctant to take on high responsibility and have lower productivity.

Question 27

Which of the following statements is not true of managing and fostering productivity among virtual employees?

A) Maintain communication with virtual workers.
B) Structure tasks with clear deadlines.
C) Micromanagement is important as they are remote staff.
D) Hire employees who have experience with working independently and hitting deadlines.

Question 28

Which of the following federal employment laws requires the payment of same wages to males and females for work requiring equal skill,effort,and responsibility in similar working conditions?

A) Fair Labor Standards Act
B) Immigration Reform and Control Act of 1886
C) Worker Adjustment and Retraining Notification Act
D) Executive Order No.11246

Question 29

Which of the following statements is true of small business hiring of employees?

A) Adding an employee to a small business is simple decision.
B) The cost of adding an employee is composed only of the additional salary.
C) Of the 28.2 million businesses in the U.S.in 2012,over 22.3 million businesses had one or more employees.
D) Those firms that hire employees are an important source of job generation.

Question 30

The Family and Medical Leave Act requires employers to give employees up to _____ weeks leave,paid or unpaid,without loss of position,seniority,or benefits,for a qualifying condition or event.

A) 2
B) 6
C) 12
D) 20

Question 31

Which among the following federal employment laws requires employers to implement an affirmative action plan for hiring and promoting females and minorities?

A) Executive Order No.11246
B) Title VII of the Civil Rights Act of 1864
C) Worker Adjustment and Retraining Notification Act
D) Immigration Reform and Control Act of 1886

Question 32

Which of the following is true of a probationary period?

A) It is exclusively used on part-time workers.
B) It cannot be used in small businesses.
C) Its time period is typically dictated by state laws.
D) It cannot be used on employees who are being hired for full-time jobs.

Question 33

The Age Discrimination in Employment Act prohibits employment discrimination against individuals who are _____ years old and older.

A) 30
B) 40
C) 50
D) 65

Question 34

The match between the needs,expectations,and culture of the small business with the expectations and the skills of the individual employee is called:

A) employee referral.
B) employee fit.
C) job description.
D) job analysis.

Question 35

Which of the following statements concerning business and labor laws is not true?

A) Executive Order No.11246 is only applicable if you have 10 or more employees.
B) The Federal Insurance Contributions Act (FICA)is the Social Security and Medicare withholding law and is applicable as soon as you hire one employee.
C) Employees must see eligibility requirements to be entitled to leave under the Family and Medical Leave Act.
D) Employers with 100 or more employees must follow the Worker Adjustment and Retraining Notification Act.

Question 36

Which among the following federal employment laws requires employers to give 60 days' advance warning prior to a plant shutdown or layoff of 50 or more employees?

A) Executive Order No.11246
B) Title VII of the Civil Rights Act of 1864
C) Worker Adjustment and Retraining Notification Act
D) Immigration Reform and Control Act of 1886

Question 37

Which of the following federal employment laws prohibits discrimination with respect to any condition of employment based on race,color,sex,religion,or national origin,except where religion,sex,or national origin is a bona fide occupational qualification which is reasonably necessary to the conduct of a particular business?

A) Fair Labor Standards Act
B) Title VII of the Civil Rights Act of 1864
C) Worker Adjustment and Retraining Notification Act
D) Executive Order No.11246

Question 38

A small company selling handmade items online and having only 5 total employees,including the owner,would not be subject to which of the following laws?

A) The Fair Labor Standards Act
B) The Americans with Disabilities Act
C) The Employee Polygraph Protection Act of 1988
D) The Immigration Reform and Control Act of 1986

Question 39

Employee referral:

A) rewards employees for recommending potential candidates that would be a great fit.
B) rewards employees for recommending themselves to managerial positions.
C) refers to employees assigning high status to their specific job roles.
D) measures an employee's potential to perform his job roles efficiently.

Question 40

Which of the following laws requires payment to most hourly employees of minimum wage and time and a half for overtime hours?

A) Executive Order No.11246
B) Title VII of the Civil Rights Act of 1864
C) Worker Adjustment and Retraining Notification Act
D) The Fair Labor Standards Act

Question 41

Which among the following is an example of an on-the-job training method?

A) Lectures
B) Case studies
C) Coaching
D) Role playing

Question 42

Which of the following is the last step in crafting a job description?

A) Writing job overviews
B) Writing special requirements
C) Writing credentials and experiences
D) Writing duties and responsibilities

Question 43

Alana,the owner of a small dress-making establishment called Mantua Fab,decides to hire assistants for design,sewing,and other tailoring jobs.Alana signs a contract with Minerva Inc.,a company which employs dress designers and tailors for an annual fee.She makes an arrangement to pay the employees of Minerva both a fixed amount and an annual fee for finishing Mantua's projects of dress-making for a period of two years.This is an example of:

A) outsourcing.
B) employee leasing.
C) networking.
D) employee referral.

Question 44

Which of the following sections of the job description will show the basic qualities that the employee should possess,such as ability to use Excel?

A) Special requirements
B) Duties and responsibilities
C) Summary of the job
D) Knowledge,skills,and abilities

Question 45

Alana,the owner of a small dress-making establishment called Mantua Fab,decides to hire assistants for design,sewing,and other tailoring jobs.After Mantua Fab finishes basic design,Alana sends certain items of clothing to be embroidered and hemmed by another company in the same city.This strategy is referred to as:

A) outsourcing.
B) employee leasing.
C) benchmarking.
D) employee referral.

Question 46

When recruiting,once a job description is prepared,the next step is to:

A) develop questions for interviewing.
B) create a job analysis.
C) prepare a training module for employees.
D) create a website.

Question 47

Which of the following is true of off-the-job training?

A) It can be achieved by job rotation.
B) Assistantship is an example of off-the-job training.
C) It is typically affordable by all sizes of firms.
D) It can be conducted through role-playing.

Question 48

Which of the following is true of employee leasing?

A) It is the function of publishing newsletters or posting openings online or at the meeting locations of associations.
B) It is the process of using independent contractors who provide specialized business services or support from a distance through different modes of communication.
C) It is the idea of having employees who work for another company that handles recruiting,training,compensation,and government filings.
D) It is the process of offering temporary jobs to students arranged through the university.

Question 49

Alana,the owner of a small dress-making establishment called Mantua Fab,decides to hire assistants for design,sewing,and other tailoring jobs.Which of the following methods of recruitment is Alana using if she asks her friends and professional contacts to recommend dress-makers to her?

A) Outsourcing
B) Employee leasing
C) Networking
D) Employee referral

Question 50

Ron is offered a sales job at an insurance company.He is informed that it is mandatory for him to be able to drive his own car to meet prospective customers and finalize insurance deals.Such a condition in the job description is referred to as a:

A) special requirement.
B) qualification.
C) summary of the job.
D) codicil.

Question 51

Universities have _____ that encourage companies to post openings to their job bank to recruit at both the undergraduate and the graduate levels.

A) editorials
B) career service offices
C) newsletters
D) professional groups

Question 52

The job rotation technique is an example of _____.

A) cronyism
B) nepotism
C) off-the-job training
D) on-the-job training

Question 53

Which of the following is the first step in crafting a job description?

A) Writing job overview
B) Writing duties and responsibilities
C) Writing job title
D) Writing credentials and experience

Question 54

Alana,the owner of a small dress-making establishment called Mantua Fab,decides to hire assistants for design,sewing,and other tailoring jobs.If Alana posts an ad in the newspaper,which of the following is correct?

A) She will incur very low expenses.
B) She is using a networking type of recruitment method.
C) She can use filters to search through the resumes of applicants.
D) She will experience a long turnaround time.

Question 55

A(n)_____ defines and discusses all the essential knowledge,skills,and abilities that are needed to fill a position.

A) employment certification
B) cover letter
C) resume
D) job description

Question 56

Which of these is an off-the-job training method?

A) Orientations
B) Apprenticeships
C) Case studies
D) Coaching

Question 57

Alana,the owner of a small dress-making establishment called Mantua Fab,decides to hire assistants for design,sewing,and other tailoring jobs.Alana asks one of her most trusted employees,Sue,to suggest potential candidates who would be a good fit at Mantua Fab.This is an example of:

A) outsourcing.
B) employee leasing.
C) networking.
D) employee referral.

Question 58

In evaluating potential employees,a small business owner:

A) should hire a moderately qualified person in case filling the position is an urgent requirement.
B) should ensure that only a single interviewer meets with a candidate in order to avoid conflicting evaluations.
C) should design interview questions such that "yes" or "no" answers are not applicable.
D) should accept the candidate's word that he or she possesses a certain skill or knowledge base.

Question 59

Independent contractors who provide specialized business services or support from a distance,through different methods of communication are known as:

A) virtual employees.
B) time-share employees.
C) job share employees.
D) leased employees.

Question 60

_____ is an alternative for small businesses that are not ready to hire employees,but have a growing need to meet workload demand.

A) Benchmarking
B) A company website
C) Outsourcing
D) A Help wanted ad

Question 61

Which of the following would implicate employee empowerment?

A) Providing learning opportunities at every level of the organization through training
B) Letting employees make on-the-spot decisions for the companies' best interest
C) Providing meaningful work for employees and keeping them occupied
D) Showing appreciation for a job well done or giving credit to an employee who introduced a great idea

Question 62

Which of the following factors refers to providing meaningful work for employees,which gives them the feeling or belief that the day's work had a valuable impact to the company and that they made a difference?

A) Empowerment
B) Training
C) Contribution
D) Teamwork

Question 63

One of the three guidelines of training is that training _____.

A) should be provided only at the initial stage of employment
B) should be provided only if the employee seeks it
C) should be provided only after an employee has been given ample time to use their skills
D) should be thought of as an investment

Question 64

After determining an organization's compensation philosophy,the next step in developing a compensation plan is to:

A) develop a job description.
B) find comparison factors for salary.
C) provide stock options or stock grants to employees.
D) offer employer-sponsored health insurance.

Question 65

One of the first steps in developing a compensation plan is:

A) to carry out a pay review and present it to the newly hired employees.
B) to track employee performance.
C) to determine whether hiring is to be done for an hourly or salaried position.
D) to pay an above-market salary to create loyalty.

Question 66

Bill runs a small business and is in the process of revising out his company's compensation plan.After researching the market and determining the salary range,Bill starts to plan how much of an increase in pay he can offer each employee subsequently.In the context of increasing pay,which of the following is the most appropriate course for Bill to follow?

A) Bill should determine this based on an employee's performance,value,and contribution to the small business.
B) Bill should check salary surveys and want ads.
C) Bill should pay the amount needed for a person or family of a particular size to meet the basic necessities of life as an increase.
D) Bill should take no more than 3 percent of the annual personnel budget and allocate it to pay increment.

Question 67

Fostering a sense of _______ allows people to interact with one another on a professional level.

A) teamwork
B) empowerment
C) recognition
D) contribution

Question 68

There are two parts to a formal performance appraisal:

A) the self-appraisal and the review by the supervisor.
B) the internal review and the external review.
C) the review of past accomplishments and the setting of future objectives.
D) the performance review and the pay review.

Question 69

Which of the following terms refers to the privileges,services,or even tangible items given to employees as part of the overall compensation and benefits package?

A) Bonuses
B) Long-term incentives
C) Perks
D) Health insurance

Question 70

_____ refers to the concept that key employees should be able to see and understand a firm's financials,that they should have a part in moving the numbers in the right direction,and that they should have a direct stake in the strategy and success of the firm.

A) Open-book policy
B) Autonomy
C) Work facilitation
D) Psychological contract

Question 71

_____ is the amount needed for a person to meet the basic necessities of life from a single job.

A) Incentive
B) Employee benefit
C) Living wage
D) Benefit plan

Question 72

Which of the following statements is not true of performance reviews?

A) The performance review typically occurs once a year to monitor your employees' job satisfaction,performance,and set objectives.
B) The performance review is a time to review work from the year past.
C) The performance review is a time to plan and set goals for the year ahead.
D) The goal of the performance review is to reward your employees if they have performed all duties and met general requirements.

Question 73

Making ______ work requires giving employees permission to act,the knowledge to act,and the skill to act.

A) nepotism
B) training
C) empowerment
D) teamwork

Question 74

Sharing your mission and your vision of the business is part of the _______ factor which employees find among the most valuable.

A) communication
B) teamwork
C) empowerment
D) contribution

Question 75

The goal of the pay review is to:

A) monitor your employees' job satisfaction.
B) reward your employees if they have performed all duties and met general requirements.
C) monitor your employees' overall performance.
D) communicate with employees how you will support them.

Question 76

Which of the following is true of 401(k)plans?

A) They refer to the leave policies which make no distinction between sick,vacation,and personal days and allow employees a set number of days off each year.
B) They are compensation plans which take no more than 3 percent of the annual personnel budget.
C) They allow the employee to have no control over the amount of their contribution and how the money is invested.
D) They are typically easier to administer and are less expensive than traditional pension plans.

Question 77

Which of the following statements is not true of psychological contracts?

A) Small business owners often implicitly or explicitly communicate conflicting terms when making psychological contracts.
B) To avoid breaking a psychological contract,denote strict limits on what you promise employees.
C) Putting a psychological contract in writing is unnecessary and ill-advised.
D) A psychological contract refers to an employees' beliefs about the promises between the employee and the company.

Question 78

Which of the following is an example of long-term incentives to employees that help retain valuable team members?

A) Perks
B) Stock options
C) Referral bonuses
D) Employee bonuses

Question 79

According to the six factors most valuable to employees,which of the following is a reason employees leave a company?

A) Being put through different types of training
B) Being asked to make on-the-spot decisions for the companies' best interest
C) Being shown that the decisions employees make and the work they perform have a direct impact on the product or service provided
D) Being denied professional development and learning opportunities to expand their job responsibility

Question 80

Which of the following concepts is based on the perception that promises have been made in exchange for certain employee obligations such as giving of their energy,time,and technical skills?

A) Open-book policy
B) Work facilitation
C) Psychological contract
D) Autonomy