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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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Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter Ten: Human Resource Management
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?
IM 10-2
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter Ten: Human Resource Management
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
IM 10-3
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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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written consent of McGraw-Hill Education.
Chapter Ten: Human Resource Management
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
IM 10-5
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter Ten: Human Resource Management
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?
IM 10-6
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter Ten: Human Resource Management
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
IM 10-7
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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)
IM 10-8
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter Ten: Human Resource Management
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
IM 10-9
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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.
