d.
workforce diversity.
21. 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.
22. Which item plays the central role in attracting and motivating employees?
a.
Flexible work duties
b.
Job sharing arrangements
c.
Compensation
d.
Vacation benefits
23. 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.
24. 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.
25. 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.
26. 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.
27. 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
28. 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.
29. 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.
30. 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.
31. 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
32. 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.
33. 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.
34. The Civil Rights Act applies to any employer of _______ or more people.
a.
3
b.
15
c.
27
d.
40
35. 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.
36. 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.
37. 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
38. 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 low.
b.
total employment exceeds 100.
c.
employees are not unionized.
d.
morale is high.
ESSAY
1. Identify and explain the advantages of five “selling points” a small company can use to attract
candidates.
2. Explain the strengths and weaknesses for the following sources of employees: (a) walk-ins, (b)
schools, (c) public employment offices, (d) private employment agencies, (e) executive search firms,
(f) employee referrals, (g) Internet recruiting, (h) help-wanted advertising, and (i) temporary help
agencies.
3. Mona has recently been named the CEO of a small production company that she and her parents co-
own. She is concerned with the lack of innovation in the company and plans to hire at a minimum ten
more employees in the next three years. Currently 92% of the production workforce are white, males
who have some college education and are expected to retire in the next five years. What are
suggestions for Mona?
4. A band manager is designing an application form for hiring new band members. After discussing
information that should and should not be on the form, how will the form’s information be used for the
remaining steps of the interview process?
5. Describe the five steps involved in selecting employees.
6. Considering the weaknesses of interviewing, how can the procedure be made more effective in
selecting employees?
7. Explain the nature of orientation programs and why they are needed.
8. Ollie has hired a front office manager, Todd. What suggestions should Ollie follow to make the
implementation of training more effective for Todd?
9. Tim and Tina own an independent pet grooming business in which employees are hired to groom the
animals, take care of customer needs and clean the facility. Other area competitors offer the same
services and pay their employees minimum age. Tim and Tina have decided to pay employees
$12.00/hr, and include unlimited services for the employee’s animals and allow them to provide
grooming for one guest of their choice each month. What could the grooming business gain from this
payroll decision?
10. Discuss the use of compensation and incentives in recruiting employees for small businesses.
11. Identify and discuss the advantages and disadvantages to using a PEO.
12. After defining each of the following statutes, state who has to abide by the law: a) Civil Rights Act, b)
Occupational Safety and Health Act, c) Fair Labor Standards Act and d) Family and Medical Leave
Act.
13. Having been in business for five years, Secondhand Treasures specializes in antique home and
personal items made before 1960. The company has expanded into ten locations with 103 employees
in part due to the recession having led to increased business. The company is having trouble
maintaining employees for longer than three months, especially for positions requiring extensive
knowledge of an item’s value. What conditions in Secondhand Treasures would justify the owner’s
decision to hire a human resource manager?
MATCHING
Match the term with its definition. Some terms may not be used.
a.
Cafeteria plan
e.
Job specification
b.
Employee training
f.
On-the-job training
c.
Job description
g.
Reliability
d.
Job Instruction Training
h.
Validity
1. The consistency of a test in measuring job performance ability
2. A systematic, step-by-step method for on-the-job training of non-managerial employees
3. The extent to which a test assesses true job performance ability
4. An outline of the work to be performed for a particular position
5. Instruction at the place of employment, supervised by a professional trainer or experienced employee
6. Planned efforts to help workers master the knowledge, skills, and behaviors they need to perform their
duties
7. 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
e.
Headhunter
b.
Co-employment
f.
Management development
c.
Employee benefits
g.
Piecework
d.
Flexible benefit programs
h.
Professional employer organization
8. An arrangement to outsource part of personnel management to an organization that handles paperwork
and administers benefits for those employees
9. A search firm that locates qualified candidates for executive positions
10. An approach that assess the suitability of job candidates based on how they would respond to
hypothetical situations
11. Benefit programs that allow employees to select the types of benefits they wish to receive
12. Financial incentive based on number of units produced
13. Supplements to compensation designed to be attractive and useful to employees
14. Preparation of employees for career advancement through education, job experiences, network
development, and performance assessment
Match the term with its definition. Some terms may not be used.
a.
Civil Rights Act
e.
Management development
b.
Fair Labor Standards Act
f.
Occupational Safety and Health Act
c.
Family and Medical Leave Act
g.
PEO
d.
Human resource management
h.
Workforce diversity
15. Legislation prohibiting discrimination based on race, color, religion, sex, or national origin
16. Legislation that regulates the safety of workplaces and work practices
17. Legislation that assures employees of unpaid leave for childbirth or other family needs
18. A company that sets up co-employment agreements
19. Federal law that establishes a minimum wage and provides for overtime pay
20. Differences among employees on such dimensions as gender, age, ethnicity, and race
21. The management of employees in a way that enables a firm to reach its strategic objectives