Chapter 10 - Human Resources Management

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A company's compensation system is ______.

of the highest importance for employees

A hybrid compensation system ______.

pays a salary along with a commission

A ______ examines an employee's goals and the outcome of those goals over a particular given period.

performance review

The business owner should do which of the following to determine which candidates to interview?

- Directly compare the applications with the job description. - Focus first on those candidates who most closely match the job description. - Immediately reject those candidates who do not have the minimum position requirements.

Which of the following statements regarding commission compensation systems are correct?

- Employees may make sales to customers who are financially weak and do not pay their bill - They sometimes cause employees to focus on commission instead of the overall good for the firm - Sometimes, employees figure out how to abuse the system

Which of the following questions are examples of questions that employers may not ask?

- Gender - Religion - Age

Which of the following activities may be included when a candidate spends a full day at the company?

- Having the applicant work with other employees. - Allowing the applicant to see the day-to-day company environment. - Allowing the applicant to have lunch with other workers.

Which of the following actions are considered to be acts of discrimination?

- Hiring based on race - Promoting based on religious beliefs - Firing based on gender

Which of the following statements regarding unemployment compensation are correct?

- It pays a set amount of money directly to the former employee - People are expected to look for employment while they are receiving unemployment compensation. - The tax is paid by the employer based in part of the company's history of unemployment.

Which of the following statements are true about the Affordable Care Act?

- One of the biggest beneficiaries of the Act are the entrepreneurs in a business that employs only themselves and their family. - The Act provides tax incentives for small entrepreneurial firms to encourage them to offer health insurance to their employees.

Which of the following aspects listed below are part of retaining employees?

- Performance reviews - Wages and hours requirements - Compensation and benefit systems

Which of the following should an advertisement ask an applicant to submit?

- Resume - List of references

Which of the following are compensation options that a small business owner may employ to pay employees?

- Salary - Commission - Hourly wage

Which of the following statements regarding negotiating the deal with a job candidate are correct?

- The business owner should finalize the agreed offer in writing. - The offer should requires a fairly prompt response from the candidate. - The business owner should decide the points for which he or she is willing for negotiate.

Which of the following should entrepreneurs do to have a proper justification for firing employees?

- They must be diligent in their efforts to assist poorly performing employees. - They must develop a paper trail regarding all employees.

______ rewards employees based on their performance.

A bonus

The last step in the employee hiring process is ______.

the job offer

Under the ______, businesses with more than 50 employees must provide insurance for their employees.

Affordable Care Act

A poorly performing employee is said to have a ______ impact on the entrepreneurial film.

triple

Marc and James were hired at the same time. They graduated from the same school with the same grade point average. They both work in the same department doing similar jobs. During their last review, both received similar performance ratings. James is paid $500 more than Marc. According to equity theory, how would Marc feel if he found out?

He would feel that he is compensated unfairly in comparison to James.

Entrepreneurs should remember to ______ when writing an advertisement for a new hire.

be concise and oriented toward the basic information needed

The government ______.

closely regulates children who work under the age of 16

Hiring a family member ______ discrimination issues for larger family businesses.

does not eliminate

The ______ process ends when the candidate returns a signed original offer letter.

hiring

A(n) ______ is the amount that a business pays an employee per hour of work performed.

hourly wage

A commission ______.

is payment based on some percentage of sales

Which of the following are low- or no-cost means of advertising a job opening?

- College placement office - Trade association - Word of mouth

The ______ established a minimum wage for workers.

Fair Labor Standards Act (FLSA)

The ______ Act requires businesses to provide unfettered access to all disabled people.

Americans with Disabilities

______ is an example of a hybrid compensation system where the employee is paid a small salary but earns a percentage of the profits at the end of the year.

Profit sharing

Employers may ask job candidates about their ______ but not their ______.

prior convictions; arrest record

Which of the following statements regarding the minimum-wage requirements of the Fair Labor Standard Act (FLSA) are correct?

- The Act does not cover workers on small farms - The Act covers virtually all workers - States may set a minimum wage higher than set by the FLSA

Why should business owners retain employees who add value?

- It takes time to bring each new employee to an acceptable level of performance. - The hiring process consumes a lot of time and money.

An entrepreneurial firm's package of benefits has ______ the compensation it offers to a job candidate.

as much of an impact as

A(n) ______ description the skills and capabilities that a candidate should have.

job

Once the candidate pool has been created, business owners should ______.

reduce the number of candidates to be interviewed

Title VII of the Civil Rights Act prohibits employers from discriminating in hiring, dismissing, determining level of pay, or promoting based on an employee's ______.

race

A ______ is a set amount of compensation for a given time period.

salary

The Equal Pay Act requires employers ______.

not to discriminate in pay to men and women who do the same job

Equity theory states that employees judge ______.

how well they are treated in the context of how well others are being treated

An entrepreneur of a retail store looks to hire billing executives. The job requires the executives to greet and interact with a large number of customers every day. In this scenario, which of the following are perfectly acceptable to test the job candidates?

- A personality test - A test on basic mathematics

______ resources is the quantity of human effort directed toward producing goods and services.

Human

______ is one of the most expensive costs for any business and the most desired benefits for employees.

Medical care

The ______ is charged with protecting the health of workers.

Occupational Safety and Health Administration

Which of the following statements about human resources is NOT true?

The most important role of human resources is to meet basic legal requirements.

True or False: Recruiting companies do an extremely good job recruiting and placing people with companies that have unique skill requirements.

True

Which of the following are part of the hiring process?

- Advertising for a job position - Writing a job description

Business owners should ______.

check as many of the candidates' references as possible

Antidiscrimination laws ______.

do not require business owners to hire any one particular person

Which of the following statements regarding the Occupational Safety and Health Administration are correct?

- Fines are lower for businesses that have fewer than 25 employees. - Small firms less than 10 employees do not have the record-keeping regulations that larger firms have. - It has tried to be more lenient toward small businesses.

Which of the following describe the roles that human resources management plays in business?

- Inspiring employees - Hiring new employees - Managing employees

Business owners should provide the interviewee with a realistic preview of the job and company ______.

to set appropriate expectations for the potential employee

Which of the following are characteristics of a good employment advertisement?

- Make the advertisement stand apart to draw potential applicants' attention - Express excitement about the firm - Communicate the firm's culture

Which of the following statements regarding drug testing employees are correct?

- Some states offer discounts on workers' compensation insurance for businesses that have a drug-free workplace program. - Business owners have a right to insist on drug testing. - The employees' privacy rights can come into conflict with a drug-free workplace policy.

Which of the following statements about record keeping are correct?

- The company should keep track of all advertisements that have been run whether a physical publication or on the Internet. - The company should maintain a record of who responded and the job's criteria. - The company should keep track of records in case someone alleges that the company discriminates in its hiring practices.

Identify the true statements about workers' compensation laws in the United States.

- They aim to provide some type of wages to employees who are disabled or injured while on the job. - They provide workers' compensation insurance that is regulated by each state.

Which of the following statements about recruiting companies are correct?

- They typically charge the company a fee. - They generally provide employers with highly qualified employees. - Fees can be a significant portion of the employee's first year's salary.

Which of the following statements about succession are true?

- When the parent retires, her or she should let the child run the business on his or her own. - A successor should be selected and the person should be prepared early. - Parents often wait too long before creating a formal succession plan.

Entrepreneurs should always ask candidates to fill out a(n) ______ for employment.

application


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