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chapter 20
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Indicate whether the statement is true or false.
1. A human resource manager is unnecessary when employees are represented by a union.
a. True
b. False
2. A job description refers to a listing of the knowledge, skills, abilities, and other characteristics necessary to perform a
job.
a. True
b. False
3. According to the Occupational Health and Safety Administration, 85 percent of all on-the-job accidents can be traced to
substance abuse.
a. True
b. False
4. Because help-wanted advertising tends to be ineffective, most well-managed organizations reject this method of
recruitment.
a. True
b. False
5. Job descriptions are used primarily to avoid lawsuits that might result from the Americans with Disabilities Act.
a. True
b. False
6. Unions typically concentrate their primary attention on small companies, where their influence is most needed.
a. True
b. False
7. Small companies are more likely than larger firms to employ immigrants.
a. True
b. False
8. Most small businesses complete their own background investigations of job applicants by using information readily
available online.
a. True
b. False
9. The source that accounts for most new hires is help-wanted ads in newspapers.
a. True
b. False
10. A sales commission compensation plan is a type of time-based compensation system.
a. True
b. False
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11. Profit-sharing is of little use as an incentive in small companies because profits are often too small to share.
a. True
b. False
12. By following constructive personnel policies, small firms can improve the relationship between management and a
union.
a. True
b. False
13. Continual training is necessary to update knowledge and skills in firms of all sizes.
a. True
b. False
14. Although research has shown a growth in spending on training, much of the training is not actually applied on the job.
a. True
b. False
15. Orientation refers to instructions given during the interview with an applicant.
a. True
b. False
16. 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.
a. True
b. False
17. Because outsourcing companies typically employ hundreds or thousands of people, they can afford to offer benefits
superior to those offered by the typical small firm.
a. True
b. False
18. Small firms must be exceed large firms in wage and salary levels in order to attract well-qualified personnel.
a. True
b. False
19. The cost of using a headhunter makes using their services unrealistic for small businesses.
a. True
b. False
20. Most small businesses now use flexible benefit plans so employees can select the benefits they wish to receive.
a. True
b. False
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21. The Internet is a low-cost, effective tool for recruiting qualified candidates.
a. True
b. False
22. ESOPs can motivate employees as well as allow for owners to withdraw from a business without having to sell the
firm to outsiders.
a. True
b. False
23. The purpose of job instruction training is to help supervisors eliminate employees who are weak hires.
a. True
b. False
24. Small firms suffer a recruiting handicap because of the ability of large companies to offer more freedom on the job.
a. True
b. False
25. Small firms need to identify their distinctive advantages if they are to recruit outstanding prospects successfully.
a. True
b. False
26. Human resource management of small firms should be identical to large companies but adjusted for size.
a. True
b. False
27. The fees charged by a private employment agency are paid by the hiring firm, not the applicant.
a. True
b. False
28. When innovation is important to a firm’s competitiveness, the company should steer clear of hiring minorities.
a. True
b. False
29. The balance of the U.S. workforce is rapidly shifting toward higher proportions of women, older workers, and racial
minorities.
a. True
b. False
30. The hiring practices at 37signals support small firms using additional “test drives” even if a prospective employee has
passed a reliable and valid test.
a. True
b. False
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31. A small business can facilitate the orientation process by providing an employee handbook, which outlines the
company’s practices and procedures.
a. True
b. False
32. The small firm has a particularly strong need to develop both managerial and professional employees.
a. True
b. False
33. The use of temporary employees provides management with an introduction to individuals whose performance may
justify an offer of permanent employment.
a. True
b. False
34. PEOs typically charge a fee of at least 7 percent of payroll to a small business.
a. True
b. False
35. The quality of a firm’s employees determines the firm’s potential.
a. True
b. False
36. Public employment offices are a useful source of clerical workers, unskilled laborers, production workers, and
technicians.
a. True
b. False
37. As a firm grows, it experiences pressure to formalize its personnel policies and procedures.
a. True
b. False
38. The goal of recruitment is to obtain a pool of applicants large enough to contain a number of talented prospects.
a. True
b. False
39. Training should not be necessary for a new employee to perform the duties for which he or she has been hired.
a. True
b. False
40. Temporary help agencies are good sources of employees when extensive training is required.
a. True
b. False
41. Executive search firms should only be used by large companies because of their cost.
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a. True
b. False
42. Universities are good sources of candidates for positions that require a high level of experience.
a. True
b. False
43. Payroll is only a moderate expense for most small businesses.
a. True
b. False
44. The job specifications list the duties the incumbent is expected to perform.
a. True
b. False
45. Failure to check the background of a new hire can led to a negligent hiring lawsuit.
a. True
b. False
46. Private employment agencies administer the various state unemployment insurance programs.
a. True
b. False
47. Employee referrals provide a rich source of good applicants for many small firms.
a. True
b. False
48. Requesting a credit report to establish an applicant’s employment eligibility is illegal according to the Fair Credit
Reporting Act.
a. True
b. False
49. Employee benefits are expensive, amounting to more than 40 percent of payroll expense for many small firms.
a. True
b. False
50. A person who interviews well should not automatically be hired.
a. True
b. False
51. In small firms, a professional’s versatility and flexibility may be more important than technical competence.
a. True
b. False
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Indicate the answer choice that best completes the statement or answers the question.
52. 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.
53. 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.
54. 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.
55. One of the largest expense categories for most businesses is
a. advertising.
b. research and development.
c. payroll.
d. professional fees.
56. In addition to it 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 labor costs.
57. As his business grows, George finds he does not have either the time or 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. co-employment.
c. employment benefits.
d. human resourcing.
58. James is investigating the advantages of employee outsourcing. It appears that the greatest benefit will be to free him
and his firm from
a. the need for extensive training.
b. fringe benefit costs.
c. concern about disciplinary action.
d. excessive paperwork.
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59. 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.
60. Legislation that provides protection to employees within a business is called the
a. Family and Medical Leave Act.
b. Occupational Safety and Health Act.
c. Fair Labor Standards Act.
d. All of the above provide protection.
61. The cost of employee benefits is ____ the cost of salary and wage payments.
a. 25 percent
b. 31 percent
c. 66 percent
d. 200 percent
62. 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 take overs
c. more freedom to structure job responsibilities
d. retirement program and other benefits
63. 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.
64. 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.
65. Which condition is most likely to encourage the appointment of a human resource manager?
a. Labor turnover rate is low.
b. Competition for personnel is low.
c. Employees are represented by a union.
d. There are 35 employees in the firm.
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66. 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.
67. Which question 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.
68. What type of interviewing involves asking applicants how they might react to hypothetical situations?
a. Behavioral
b. Depth
c. Stress
d. Traditional
69. Which source of candidates do small business owners say accounts for most of their hires?
a. Walk-ins
b. Schools
c. Internet
d. Employees
70. 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.
71. 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.
72. 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.
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73. 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
74. 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
75. 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%
76. 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.
77. 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.
78. 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
79. Prospective employers can legally select employees based on the applicant’s
a. age.
b. disabilities.
c. education.
d. gender
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80. Which act applies to any employer of 15 or more people and prohibits discrimination on the basis of race, color,
religion, sex, or national origin?
a. Fair Labor Standards Act
b. Civil Rights Act
c. Age Discrimination in Employment Act
d. Immigration Reform and Control Act
81. 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.
82. Employers will often provide such perks as health insurance and paid vacation 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.
83. Which item plays the central role in attracting and motivating employees?
a. Flexible work duties
b. Job sharing arrangements
c. Compensation
d. Vacation benefits
84. 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
85. 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
86. 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.
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87. A small electrical contractor with nine employees hears that they would like to join a union. This contractor realizes
that the firm
a. must follow the bargaining pattern set by large contractors.
b. can lawfully refuse to negotiate.
c. must negotiate if a majority of employees decide to unionize.
d. must deduct union dues from employees’ paychecks.
88. The owner of a growing business wonders when to hire a human resource manager. The most likely time would be
when
a. labor turnover rate is high.
b. total employment exceeds 75.
c. employees are not unionized.
d. morale is high.
89. 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.
Match the term with its definition. Some terms may not be used.
a. Cafeteria plan
b. Employee training
c. Job description
d. Job Instruction Training
e. Job specification
f. On-the-job training
g. Reliability
h. Validity
90. The consistency of a test in measuring job performance ability
91. A systematic, step-by-step method for on-the-job training of non-managerial employees
92. The extent to which a test assesses true job performance ability
93. An outline of the work to be performed for a particular position
94. Instruction at the place of employment, supervised by a professional trainer or experienced employee
95. Planned efforts to help workers master the knowledge, skills, and behaviors they need to perform their duties
96. A list of the knowledge, skills, abilities, and other characteristics needed to perform a specific job
Match the term with its definition. Some terms may not be used.
a. Behavioral interview
b. Co-employment