Deck 20: Managing Human Resources

Question 1

The balance of the U.S. workforce is rapidly shifting toward higher proportions of Asian and Hispanic immigrants.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

Universities are good sources for interns, a source of inexpensive part-time help for the present and the inside track on hiring high performers as full-time employees after they graduate.

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

Payroll is only a moderate expense for most small businesses.

Question 14

Hiring illegal or undocumented workers is a minor offense and affects only the worker, not the hiring firm.

Question 15

Hiring a more diverse group of workers can help a company maintain good relations with an increasingly heterogeneous customer base.

Question 16

Private employment agencies administer the various state unemployment insurance programs.

Question 17

Headhunters are typically used to locate qualified candidates for positions typically paying a minimum of $100,000 to $250,000 per year.

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

Job descriptions are used primarily to avoid lawsuits that might result from the Americans with Disabilities Act.

Question 24

The purpose of Job Instruction Training is to help supervisors eliminate employees who are weak hires.

Question 25

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

Question 26

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

Question 27

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 28

The practice of using social media to evaluate a potential employee has become more common and provides a nonproblematic solution.

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

Profit sharing serves more directly as a work-related incentive in small companies than in large corporations.

Question 31

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

Question 32

Employee benefits are expensive, amounting to more than 40 percent of payroll expense for many small firms.

Question 33

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

Question 34

Drug screening programs are too expensive to be worthwhile, even in the long run, for small businesses.

Question 35

Requesting a credit report to establish an applicant's employment eligibility is illegal according to the Fair Credit Reporting Act.

Question 36

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

Question 37

A person who interviews well should not automatically be hired.

Question 38

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

Question 39

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

Question 40

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

Question 41

Which of the following questions would be expected from a small business using behavioral 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 42

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

Question 43

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

Question 44

Which of the following sources of candidates do small business owners say accounts for most of their hires?

A) Walk-ins
B) Schools
C) Internet
D) Employee referrals

Question 45

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

Question 46

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

Question 47

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 48

Because PEOs typically cover hundreds or thousands of people, they can afford to offer benefits superior to those provided by the typical small firm.

Question 49

Which of the following types of interviewing involves asking applicants how they might react to hypothetical situations?

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

Question 50

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

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

Question 51

Because Cynthia needs to obtain a replacement for Olivia (who is having a baby and will be out for 12 weeks), which of the following 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 52

As a firm grows, it experiences pressure to formalize its personnel policies and procedures.

Question 53

The U.S. Department of Labor projects which trend in workforce composition?

A) Increased numbers of Hispanic workers
B) Decreased average age
C) Decreased numbers of Black and Asians workers
D) Increased participation of women in the workforce

Question 54

PEOs typically charge a fee of at least 7 percent of payroll to a small business.

Question 55

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

A) Family atmosphere with only three employees
B) Long history of the firm with no takeovers
C) More freedom to structure job responsibilities
D) Retirement program and other benefits

Question 56

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

Question 57

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 58

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 59

One of the largest expense categories for most businesses is

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

Question 60

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) minimal qualifications.
C) physical disabilities.
D) religious orientation.

Question 61

Small firms give employees a share of ownership in the business through

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

Question 62

Which of the following items plays the central role in attracting and motivating employees?

A) Flexible work duties
B) Job sharing arrangements
C) Compensation
D) Vacation benefits

Question 63

The Americans with Disabilities Act requires employers of at least _____ employees to make _____ adaptations to facilitate the employment of individuals protected by the act.

A) 50, minimal
B) 15, reasonable
C) 100, specific
D) 10, verifiable

Question 64

Marcia knew the importance of testing candidates before hiring them, but 40 percent 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

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 66

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 67

As his business grows, George finds he has neither the time nor the skills to manage the human resources function. He has decided to outsource part of personnel management to an organization that handles paperwork and administers benefits for his employees in an arrangement called

A) a joint venture.
B) a co-employment agreement.
C) employment benefits.
D) human resourcing.

Question 68

Amanda is paid $0.45 for every widget she produces. This type of pay plan is

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

Question 69

Katie owns a catering company where employees work both in preparing the food as well as serving at the events. Which of the following would be the best compensation system?

A) Time-based
B) Profit-sharing plan
C) Piecework rate
D) Commission

Question 70

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 71

The cost of employee benefits is approximately _____ the cost of salary and wage payments.

A) 5 percent
B) 25 percent
C) 31 percent
D) 66 percent

Question 72

A systematic step-by-step method for training nonmanagerial 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 73

In addition to its usefulness in attracting and holding 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 labor costs.

Question 74

Requesting a password to directly access a potential employee's Facebook page is

A) completely legal.
B) illegal in more than half of U.S. states.
C) illegal in a few U.S. states.
D) legal but not ethical.

Question 75

Employers will often provide such perks as health insurance and paid vacation time that are designed to be attractive and useful to employees. Collectively these perks are known as

A) stock.
B) piecework.
C) human resources.
D) employee benefits.

Question 76

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 77

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

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

Question 78

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 79

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 80

Profit-sharing plans

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