978-1259912191 Chapter 10 Solutions Manual Part 2

Chapter Ten: Human Resource Management

Bonus Internet Exercises

Bonus Internet Exercise 10.1: OSHA & the New Entrepreneur

(LO 10-5)

The Occupational Safety and Health Administration (OSHA) is the government agency

that ensures employers prevent work-related injuries, illnesses, and deaths. OSHA was

established in 1971 and the outcome of its work enhances workplace efficiency of a

business. Since its inception, “occupational deaths have been cut by 62% and injuries

have declined by 42% (OSHA’s Frequently Asked Questions)i.”

The Occupational Safety and Health Administration (OSHA), (Government U. , OSHA)ii,

reported that “in 2013, there were 3.0 million occupational injuries and illnesses among

U.S. employees.” Visit the OSHA website at http://www.osha.gov and discover the

resources it provides to business owners to assure that they provide a workplace that is

free of illness, injuries, and death. On the website, go to the “Employers” link and click

on the “Small Business” tab. Next, answer the following discussion questions.

1. What are the resources available to the new small business owner?

2. What is OSHA’s Non-Retaliation Policy? Why is it important to a new small

business owner?

3. Summarize how safety and health add value to a new small business. Discuss

how you would implement these into your new small business plan.

Bonus Internet Exercise 10.2: Entrepreneurs Promote a Drug-Free Workplace

(LO 10-2)

The Drug-Free Workplace Act was formed in 1988 to require federal contractors and all

federal grantees to provide a drug-free workplace prior to the receipt of a contract or

grant from a federal agency (elaws-Drug-Free Workplace Advisor)iii. In society today, it

is difficult to judge a book by its cover. As a result, drug testing is a popular mode of

testing at many businesses.

The United States Department of Labor provides assistance to employers in order to

prevent drug use in the workplace. Study the Department of Labor (DOL) website that

provides the eLaws-Drug-Free Workplace Advisor (elaws-Drug-Free Workplace

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Advisor)iv at http://www.dol.gov/elaws/ and review the information about how to develop

a comprehensive drug-free workplace program.

Discussion Questions:

1. How do these laws assist small business owners to ensure that they provide a

drug-free workplace?

2. Why is it important that a new small business owner initiates employee drug

testing and training initiatives at the new small business?

3. Would you implement a program to provide a drug-free workplace at your new

small business? Why or why not?

4. Conduct additional research to discover whether or not your state offers a

reduction in the workers’ compensation rates if the business has a drug-free

workplace program. Summarize the results of your research.

Bonus Internet Exercise 10.3: Entrepreneurs & Unemployment Insurance (UI)

(LO 10-5)

The authors in the text discussed that each state has an unemployment compensation

law to provide financial assistance to people who lose their jobs through no fault of their

own. The unemployment compensation pays the former employee a stated amount of

money for a given period of time.

A new small business owner utilizes the resources available to ensure that the owner

acquires the knowledge to implement a legal establishment. Google your state’s

unemployment Insurance department and answer the following questions from the data

provided at this website.

1. What is the purpose of the unemployment program?

2. What are the eligibility requirements in your state for an employee to receive

benefits?

3. What is the process to file a claim in order to receive benefits?

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4. What other information did you discover about unemployment insurance? Be

specific.

5. Critical Thinking Exercises

Critical Thinking Exercise 10.1: A Society of Human Resource Managers

(LO 10-1, 10-2, 10-3, 10-4, 10-5)

This chapter examined a number of complex issues that a new small business owner

faces as related to human resources and the hiring process. Visit the Society for Human

Resource Management website at http://www.shrm.org/Pages/default.aspx and study

the resources available to assist a new small business owner with Human Resource

requirements.

1. What are some of the tools that can assist a new small business owners with

their human resource needs?

2. Would you become a member of the Society for Human Resource Management?

Why or why not?

3. What are some of the publications available to assist a new small business

owner? Did you find them beneficial to a new small business?

Critical Thinking Exercise 10.1 A Society of Human Resource Managers – Notes

The student answers are expected to vary in this assignment. The Society of Human

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Chapter Ten: Human Resource Management

Create a checklist to assure that you cover the pertinent elements in the hiring process

for a new small business

INTERVIEW CHECKLIST

Critical Thinking Exercise 10.2: The Entrepreneurial Interview Checklist for Success

-Notes

The student answers are expected to vary based on the student’s perception of the

needs of a new small business. Here is a sample checklist that covers the key issues in

the human resource management process for a new small business.

INTERVIEW CHECKLIST

Name, Address, Telephone Number, E-mail

Addresses for the past three years

Social Security Number (SSN)

Driver license number and State of issue

Previous and related work history

Date available to work

Posi”on for which candidate is applying

Referral Source

Educa”on and Training

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Professional organiza”on memberships

Record of Convic”ons with details

Proof of ci”zenship

Proof of authoriza”on in the United States

References

Avoided Discrimina”on Topics

Tes”ng Requirements for Posi”on

offer posi”on? Yes or No

Notes

Critical Thinking Exercise 10.3: The Job Descriptions at the New Small Business

(LO 10-2)

In this chapter you learned that the written documentation of a job description assists

the new small business owner. This is beneficial because all of the elements of each

individual position are considered; and the business owner can consider the changes

that might be beneficial as the firm continues to grow.

Consider that you are a new small business owner and you are in the hiring process for

the new small business. Create a job description using the following template for the

following positions:

a. A receptionist

b. Office manager

c. Executive Director

d. Partner

Summarize how the salary and benefits vary between the levels of sophistication of the

positions.

JOB DESCRIPTION

Job Title

Salary

benefit

Vaca”on

Sick Days

Descrip”on

Skills

Critical Thinking Exercise 10.3: The Job Descriptions at the New Small Business –

Notes

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In this lesson, students are expected to differentiate between the job descriptions of

a receptionist, an office manager, an executive director, and a partner in the firm.

The answers in this exercise are expected to vary based on the perception of the

student and the various positions. However, a secretary might receive standard

benefits, get paid by the hour, and have no perks. Whereas, a partner is expected to

receive a salary, perks, and a full-benefit package, etc.

Bonus Cases

Bonus Case 10.1: Performance Reviews at the Small Business

(LO 10-3)

An entrepreneur has an innovative idea that generates the development of a new small

business. The products and services represent a need to fill a gap in the community. A

mission statement is developed and the strategic goals are established to achieve the

organizational objectives of the business. The outcome at this point is perfectly clear to

the business owner. The sky is the limit and the business is ready to compete in the

marketplace.

The human resources function requires an extensive amount of planning by the new

small business owner. The benefits that a business provides its employees can make

the difference between retaining employees or the redundant task of the recruitment,

training, and hiring of more employees. The expenses associated with these tasks result

in numerous expenses to the new small business.

One way that a business owner can eliminate the redundant tasks associated with the

new employment process is to establish a long-term relationship with the company’s

employees. To promote this long-term relationship with employees, a business owner

can offer them a 401K or other form of retirement account. Typically, to implement a

traditional 401K plan, the owner establishes a relationship with an investment banker or

a broker to implement a plan. The employee contributes to the plan and could receive a

tax advantage, which is dependant upon the specific details stipulated in the 401K plan.

An employee becomes vested in the plan after the employee has worked for the

business for a stated period of time. The business owner can contribute a percentage of

the contributions that an employee designates in the plan.

Discussion Questions:

1. Do you believe that a 401K or other retirement plan will help a small business

owner attract and retain employees? Why or why not?

2. What other methods can a small business owner implement to improve

employee retention and establish long-term relationships with employees?

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3. What are the risks associated with a 401K plan or other type of retirement

account?

Bonus Case 10.1: Performance Reviews at the Small Business (LO 10-3) – Notes

Discussion Questions:

1. Do you believe that a 401K or other retirement plan will help a small

business owner attract and retain employees? Why or why not? Student

2. What other methods can a small business owner implement to improve

employee retention and establish long-term relationships with employees?

Student responses will vary.

3. What are the risks associated with a 401K plan or other type of retirement

Bonus Case 10.2: Health Care Expenses at the Small Business

(LO 10-3)

The cost of health insurance at small business is an ongoing issue that continues to

concern the small business owner. The authors in the text revealed that health

insurance can be a competitive disadvantage when a small firm has to compete with a

larger firm, especially with international firms that get health care provided by a

government. The cost of health insurance at a smaller firm isn’t spread across a large

number of individuals in a large firm. As a result, the cost of health care for a small firm

is more expensive than at a large firm. Therefore, the small business has a difficult time

attracting and retaining its employees.

The costs of healthcare adversely impact the premium cost to both the employee and

the business owner. Recent research revealed that the cost of insurance is expected to

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Chapter Ten: Human Resource Management

increase in premium payments. These costs can be devastating to a new small

business owner who strives to attract and retain qualified individuals at the business.

Discussion Questions

1. Why is it important to provide attractive benefits to new and existing employees

at a small business?

2. What are the advantages to a company that provides competitive benefits to the

employees?

3. What are the disadvantages to a company that fails to provide competitive

benefits to the employees?

Bonus Case 10.2: Health Care Expenses at the Small Business (LO 10-3) – Notes

Discussion Questions

Why is it important to provide attractive benefits to new and existing employees

1. What are the advantages to a company that provides competitive benefits

to the employees? A company that provides competitive benefits finds it easier

2. What are the disadvantages to a company that fails to provide competitive

benefits to its employees? The company may find itself constantly losing

3. What effect does the Affordable Care Act have on a small business? The

Bonus Case 10.3: A Recent Workers’ Compensation Lawsuit

(LO 10-5)

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Various laws and regulations have been implemented to provide protection to

employees and to the business. The authors in the text advised that workers’

compensation insurance is regulated by each state, with some states running their own

insurance funds, while others use private firms. The employee is prohibited from suing a

small business owner for an injury if the individual accepts workers’ compensation

payments (text page 200). A new small business owner has an ethical responsibility to

ensure they protect the employees and the business.

A business takes personal responsibility to assure that the business maintains adequate

coverage to the employees at the business

. Discussion Questions:

a. Conduct a search using your favorite search engine and research your

state to find out what requirements a company has for providing workers’

compensation for its employees.

b. What is your opinion of your state’s rules?

c. Would you feel socially responsible for an employee’s injury even if the

employee was careless? Why or why not?

Endnotes

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iOSHA’S Frequently Asked Questions. The United States Department of Labor.

http://www.osha.gov/as/opa/osha-faq.html. Retrieved on February 9, 2015

ii OSHA (Homepage). (2009). United States Department of Labor. Occupational Safety and Health

Administration. http://www.osha.gov/as/opa/osha-faq.html. Retrieved on February 9, 2015.

iiiElaws-Drug-Free Workplace Advisor. The United States Department of Labor.

http://www.dol.gov/elaws/asp/drugfree/menu.htm. Retrieved on February 9, 2015.

ivElaws-Drug-Free Workplace Advisor. The United States Department of Labor.

http://www.dol.gov/elaws/drugfree.html. Retrieved on October 28, 2009.