Human Resource Management, 14e, Global Edition (Dessler)
Chapter 18 Managing Human Resources in Entrepreneurial Firms
1) 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
2) Approximately what percentage of people working in the U.S. are employed by small
businesses?
A) 10%
B) 25%
C) 50%
D) 75%
3) 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.
4) In most small businesses, which of the following is the lowest priority for managers?
A) sales
B) finance
C) production
D) HR management
5) 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
6) Which of the following terms refers to people who create businesses under risky conditions?
A) investors
B) developers
C) entrepreneurs
D) visionaries
7) According to research, which of the following characteristics is most associated with
entrepreneurs?
A) creative
B) indifferent
C) controlling
D) personable
8) 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
9) Which of the following risks commonly associated with small businesses can most likely be
minimized by an HR information systems?
A) data entry errors
B) personality testing
C) college recruiting
D) discrimination lawsuits
10) 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
11) 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
12) 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
13) 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
14) 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
15) 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?
16) 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
17) 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
18) 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
19) 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
20) When Hank applied for a job with Morton Consulting, he was given the Predictive Index.
What was Morton Consulting most likely attempting not to measure with the Predictive Index?
A) dominance
B) extroversion
C) reading level
D) blame avoidance
21) 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
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
23) 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
24) 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
25) 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 visits from inspectors after every workers’ compensation claim is filed.
26) 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
27) 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
28) 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 weaknesses
29) 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
30) Which of the following is NOT a recognition tool used by most small businesses?
A) challenging work assignments
B) larger office or cubicle
C) job enlargement
D) job rotation
31) Approximately what percentage of small firms offers retirement benefits to employees?
A) 15%
B) 35%
C) 50%
D) 75%
32) The Pension Protection Act of 2006 is available to employers with no more than ________
employees.
A) 100
B) 250
C) 500
D) 750
33) 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
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) 401(k) plan
35) 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.
36) 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
37) Training programs at most small firms can best be described as ________.
A) systematic
B) nonexistent
C) expensive
D) informal
38) 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
39) 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) skills inventory
C) assessment center
D) performance appraisal
40) All of the following are characteristics of work sampling tests EXCEPT ________.
A) simple to administer
B) informal procedures
C) easy to create
D) valid results
41) 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
42) 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
43) 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
44) 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
45) Which of the following best explains why effective communication methods are essential to
small businesses?
A) Managers lack the time to become familiar with all employees.
B) A few disgruntled employees can have a significant negative effect.
C) Informality and flexibility require managers to be prepared for change.
D) Limited investments in technology require small firm employees to adapt.
46) All of the following are simple communication programs recommended to small businesses
EXCEPT ________.
A) quick, scheduled meetings
B) updated employer Web sites
C) scheduled employee retreats
D) regular employee newsletters
47) 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
48) 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