chapter 10- human resources management

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

Human

______ 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

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: Hiring a family member does not eliminate discrimination issues for large family businesses.

True

True or false: Human resources has been defined in economics as the quantity and quality of human effort directed toward producing goods and services.

True

An employee who earns a salary is paid _____.

a set amount of money that is paid without regard to how many hours worked in a given time period

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

as much of an impact as

A ______ is payment based on a percentage of sales.

commission

A commission _____.

is payment based on some percentage of sales

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

job

A company's compensation system is _____.

of the highest importance for employees

Business owners who offer profit sharing _____.

pay employees a small salary but offer a percentage of the profits that the company earns

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

salary

Which of the following questions should be included on a job application?

- Social Security number - Work history - Name, address, and telephone numbers

The last step in the employee hiring process is ______.

the job offer

______ theory argues that people judge how they are treated relative to how they see others being treated.

Equity

True or false: Workers' compensation laws in the United States require the rates of workers' compensation insurance to be the same in all states.

False

It is perfectly acceptable for companies to test their job candidates if ______ between performance on the test and the skill set necessary for success on the job is present.

a direct link

It is perfectly acceptable for companies to test their job candidates _____.

if there is a direct link between performance on the test and the skills required for success on the job

Which of the following is the next step in the hiring process after the job description has been created?

Advertising the position

Employees who earn an hourly wage _____.

are paid only for those hours they perform work

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

- College placement office - Trade association - Word of mouth

Why should business owners retain employees who add value?

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

Which of the following are likely to affect a small business when an employee becomes a problem?

- The organization does not fully benefit from the unhappy employee. - The problem may cause other employees to have problems. - The owner loses time dealing with the situation.

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

Which of the following statements regarding performance reviews are correct?

- Employees should be given praise as well as details of areas of improvement. - They are for a specific time frame, often one year. - They review an employee's performance against a set of goals.

The ______ established a minimum wage for workers.

Fair Labor Standards Act (FLSA)

True or false: Entrepreneurs typically do not have the right to fire employees.

False

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.

Equity theory states that employees judge _____.

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

Which of the following is a human resources issue for family firms?

- Family members may make another angry, since they know that member's "hot buttons." - It is more difficult to fire or discipline a family member.

Identify the key issues that entrepreneurial businesses should consider when trying to retain employees who add value.

- The means of reviewing the performance of the employees - The compensation and benefits offered to the employees

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

Which of the following is not considered a benefit but is mandated by law?

Unemployment insurance

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

application

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

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

- Inspiring employees - Managing employees - Hiring new employees

Which of the following statements regarding equity theory are correct?

- Employees need a clear understanding of how their compensation compares to peers'. - Employees will accept that someone who has been with the company longer may earn more. - Employees judge the fairness of their compensation based on another's in a similar situation.

Which of the following statements regarding a company's compensation system are correct?

- Employees often compare their salary with others at their company. - Salary and benefits play an important role in maintaining employee morale. - It needs to be fair and equitable for all employees.

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

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

The Fair Labor Standards Act _____.

established a minimum wage for workers

A poorly performing employee is said to have a ____ impact on the entrepreneurial firm.

triple

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

hourly wage

A ______ is where a sales commission is paid in addition to a basic salary.

hybrid compensation system

The details of the ______ should be developed prior to the conversation with the candidate.

job offer

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 statements about a job description are correct?

- It states the skills and capabilities that the employee needs. - it describes the job that is to be filled. - It provides information on benefits.

Which of the following statements regarding bonus systems are correct?

- They are not as well defined as profit sharing. - They are based on the employee's performance. - They are similar to profit sharing.