Q&A Hero

Q: Small businesses frequently use PEOs because they lack dedicated HR managers.

Q: A PEO handles a client's payroll, Social Security payments, and unemployment insurance, but recruiting and hiring remain the responsibility of the client.

Q: Human resource outsourcers handle a firm's HR functions on an administrative level, so the client firm's employees are not added to the HROs payroll.

Q: Small businesses typically do not provide employee training that emphasizes long-term management skills because of concerns regarding employee turnover.

Q: Although employer contributions to SIMPLE IRAS are tax deductible, the plans have fairly high administrative costs.

Q: The simplicity of SIMPLE IRAs makes them appropriate for small businesses with 100 or fewer employees.

Q: Small businesses primarily rely on Internet-based recruitment and selection tools rather than employee referrals which are frequently unsuccessful.

Q: In order to recruit top-quality employees, the majority of small businesses offer retirement benefits.

Q: Unlike large organizations, small businesses benefit from familiarity with employees and flexibility and informality in HR management.

Q: For a fee, a small business can receive an on-site safety consultation with an OSHA safety expert to help improve the health and safety systems at the worksite.

Q: Research indicates that the majority of workplace accidents, especially serious accidents, occur in firms that employ less than 50 workers.

Q: Appropriately compensating employees is difficult for small businesses because of the lack of access to salary surveys.

Q: Small business owners can contract with private vendors for training workers, testing applicants, appraising employees.

Q: In addition to offering employers courses in writing job descriptions and interviewing job candidates, the Small Business Administration also offers free job postings for small business owners looking for qualified applicants.

Q: Online employee testing and training programs are frequently used by small businesses because such tools save both time and money.

Q: The Wonderlic Personnel Test measures personality traits and behaviors, while the Predictive Index measures general mental ability.

Q: Since Internet job boards are limited to large firms, small business owners are forced to recruit through local newspapers.

Q: A small business employer who is unsure what to do when faced with a discrimination charge would most likely find useful information on the EEOC Web site.

Q: While most small firms are affected by the Fair Labor Standards Act and the Occupational Safety and Health Act, only large firms need to be familiar with the Consumer Credit Protection Act.

Q: Without tools like Web-based recruiting and computerized testing, small businesses are at a competitive disadvantage against large firms.

Q: Research indicates that entrepreneurs tend to crave control.

Q: Human resource management activities, such as training, appraisals, and hiring, are typically formal at small firms but informal at large firms.

Q: In most cases, when a company has at least 100 employees, it can afford to hire an HR specialist to handle recruiting, training, and compensating employees.

Q: Approximately one-third of people working in the U.S. are employed by small firms.

Q: Managers who prepare for an interview using the streamlined interview process should focus on all of the following factors about a candidate EXCEPT ________. A) personality B) age and skills C) work motivation D) knowledge and experience

Q: Rob, the owner of A-Tech, a small software firm, plans to use the streamlined interview process to interview candidates for a programming position at the company. Rob should first ________. A) ask questions about significant areas in a candidate's life B) probe specific factors during the interview C) devise a plan for the interview D) prepare for the interview

Q: All of the following are common functions of a firm's human resource intranet EXCEPT ________. A) providing electronic pay stubs B) filing federal and state employment taxes C) providing electronic employee handbooks D) registering employees for training programs

Q: An HRIS increases the reporting capabilities of managers because an HRIS ________. A) allows a firm to plan its HR activities B) integrates separate HR tasks C) processes a firm's payroll D) works on a firm's intranet

Q: Which of the following makes it possible for employees to self-enroll in a firm's benefits program through a secure Internet site? A) executive support system B) management information system C) human resources information system D) electronic performance support system

Q: All of the following are reasons that firms install human resource information systems EXCEPT ________. A) worker performance monitoring B) online self-processing C) transaction processing D) system integration

Q: Which of the following terms refers to interrelated components working together to collect, process, store, and disseminate information to support a firm's human resource management activities? A) transaction-processing system B) high-performance work system C) human resource information system D) electronic performance support system

Q: ________ processing allows for employees to self-enroll in all their desired benefits program over the Internet at a secured site. A) Improved-Transaction B) Improved Reporting C) HR system integration D) Online-Self

Q: A human resources information system helps managers make effective decisions by ________. A) providing detailed information about tax liabilities B) automatically updating employee records and data C) regularly generating standardized, summarized reports D) providing data about a firm's customer orders and returns

Q: A(n) ________ system provides a firm's managers and accountants with detailed information about short-term, daily activities, like accounts payables and order status. A) transaction-processing B) executive support C) management information D) employee assistance

Q: Which of the following terms refers to the interrelated people, data, technology, and organizational procedures a firm uses to collect, process, store, and disseminate information? A) talent management system B) information system C) competency model D) strategy map

Q: All of the following tasks can be managed with most HR software programs EXCEPT ________. A) payroll B) attendance C) outplacement D) benefits management

Q: Julie has a small accounting firm with only six employees, so she handles HR tasks manually. Julie recently hired a new employee. Which of the following forms will Julie most likely need on the worker's first day of employment? A) reference check form B) employment agreement form C) vacation request form D) absence report form

Q: Beth recently opened an embroidery business and has four employees who work full-time for her. Which of the following will Beth most likely use to manage her company's human resources tasks? A) manual HR system B) automated HR system C) HR outsourcer system D) HR scorecard system

Q: All of the following are recommended activities for small business managers who are in the process of selecting a professional employer organization EXCEPT ________. A) analyzing how the employee benefits are funded B) checking the professional rating assigned to the PEO C) assessing the PEO's staff for experience and depth D) asking how the PEO will provide its services

Q: David owns a small architecture firm with 75 employees. He wants to use a PEO to handle his firm's HR activities. David is in the process of investigating Assure Group, a PEO. Which of the following questions is LEAST relevant to David's decision regarding whether or not to hire Assure? A) Will employee benefits be fully insured or partially self-funded by Assure? B) What HR and legal expertise is available from the Assure staff? C) What is the process that Assure uses to handle HR-related legal issues? D) How does Assure effectively communicate HR needs with its employees?

Q: David owns a small architecture firm with 75 employees. He wants to use a PEO to handle his firm's HR activities. David is in the process of investigating Assure Group, a PEO. Which of the following undermines the argument that David should use Assure Group? A) Assure lacks a clear credit history due to a recent corporate name change. B) Assure's Web site indicates that customers experience only modest savings. C) Assure requires business owners to complete questionnaires about workplace safety. D) Assure provides payroll, recruiting, and screening services to customers.

Q: David owns a small architecture firm with 75 employees. He wants to use a PEO to handle his firm's HR activities. David is in the process of investigating Assure Group, a PEO. Which of the following best supports the argument that David should use Assure Group? A) The Assure representative explains that the PEO has been in business for one year. B) The Assure representative does not ask David about his company's current HR policies. C) The Assure representative promises David that his company will see substantial savings. D) The Assure representative asks David many questions about his company's safety policies.

Q: A ________ can help a small business eliminate extensive HR-related paperwork, stay in compliance with Title VII, OSHA, and pension plan rules, and attain low-cost insurance. A) professional employer organization B) human resource information system C) management information system D) transaction-processing system

Q: Which of the following is NOT one of the primary reasons that small businesses use PEOs? A) managing overwhelming personnel-related paperwork B) fulfilling personnel-related legal responsibilities C) supporting the HR department temporarily D) acquiring affordable insurance and benefits

Q: Which of the following is a characteristic of a PEO? A) PEOs become co-employers of record for the firm's employees. B) PEOs usually work for firms with at least 100 employees. C) Most PEOs charge 8% to 10% of a firm's total payroll. D) PEOs are legally limited to payroll tasks.

Q: Jill Roberts owns a flower shop and employs 20 people. Jill lacks the time and knowledge to efficiently handle HR tasks like payroll and benefits management. Which of the following would be most appropriate for Jill in this situation? A) filing with COBRA B) finding an HMO C) creating a PAQ D) hiring a PEO

Q: A small business owner would most likely use a professional employer organization in order to ________. A) network with industry professionals B) automate succession planning C) handle HR activities like payroll D) conduct organized labor activities

Q: Which of the following terms refers to an outside vendor that manages HR functions for small businesses? A) professional employer organization B) human resource outsourcer C) employee leasing firm D) all of the above

Q: All of the following are simple communication programs recommended to small businesses EXCEPT ________. A) quick, scheduled meetings B) updated employer Web sites C) scheduled employee retreats D) regular employee newsletters

Q: Which of the following best explains why effective communication methods are essential to small businesses? A) Managers lack the time to become familiar with all employees. B) A few disgruntled employees can have a significant negative effect. C) Informality and flexibility require managers to be prepared for change. D) Limited investments in technology require small firm employees to adapt.

Q: Which of the following is the most likely result of treating family and non-family employees at a small business differently? A) communication difficulties B) benefits discrepancies C) union involvement D) poor morale

Q: Which of the following is a recommended method for establishing fairness at a family business? A) requiring family members to telecommute B) avoiding the hiring of family members C) eliminating privileges for family members D) promoting only non-family members

Q: All of the following are informal training methods recommended to small businesses EXCEPT ________. A) paying tuition for specialized courses B) arranging weekly classes led by paid experts C) providing a library of learning-based DVDs D) sending employees to association meetings

Q: Training programs at most small firms tend to focus on ________. A) specific competencies needed at the firm B) long-term management skills C) strategy needs at the firm D) marketing and finance

Q: All of the following are characteristics of work sampling tests EXCEPT ________. A) simple to administer B) informal procedures C) easy to create D) valid results

Q: Which of the following terms refers to a testing method used by small businesses that is based on measuring a candidate's performance on actual basic job tasks? A) work sampling B) skills inventory C) assessment center D) performance appraisal

Q: Lynn Wallace owns a cleaning supply store and has 55 employees. Lynn needs to hire an accounts services manager. She wants a simple but formal method for screening applicants that is neither costly nor highly time consuming. Which of the following would be most appropriate for Lynn? A) assessment center B) situational judgment test C) work sampling test D) miniature job training

Q: Training programs at most small firms can best be described as ________. A) systematic B) nonexistent C) expensive D) informal

Q: All of the following are employee recruitment tools used by most small firms EXCEPT ________. A) professional association Web sites B) local newspaper ads C) Internet job boards D) assessment centers

Q: Which of the following is a true statement regarding SIMPLE IRAs? A) SIMPLE IRAS require employees to make contributions each month. B) Employer contributions to SIMPLE IRAS are not tax deductible. C) Employers usually handle the IRS paperwork for SIMPLE IRAs. D) SIMPLE IRAs have low administrative costs.

Q: Charles Brown owns a small business with 60 employees. Currently his business does not have a retirement plan. He wants an easy method of offering retirement benefits to his employees. Which of the following would most likely be Charles' best option? A) SIMPLE IRA plan B) Roth IRA plan C) stock options D) 401(k) plan

Q: The Pension Protection Act of 2006 primarily benefits small business employers by ________. A) allowing them to defer tax payments B) eliminating fees linked to retirement plans C) exempting employers from complex pension rules D) making contributions for employers and employees into IRA plans

Q: The Pension Protection Act of 2006 is available to employers with no more than ________ employees. A) 100 B) 250 C) 500 D) 750

Q: Approximately what percentage of small firms offers retirement benefits to employees? A) 15% B) 35% C) 50% D) 75%

Q: Which of the following is NOT a recognition tool used by most small businesses? A) challenging work assignments B) larger office or cubicle C) job enlargement D) job rotation

Q: Which of the following is a work-life benefit offered exclusively by small businesses? A) professional development seminars B) disability and life insurance benefits C) compressed workweeks during the summer D) job rotation and job enrichment opportunities

Q: At a small business, what is the most likely benefit of a flexible, informal, and familiar work environment? A) gaining market share quickly B) offering extensive benefits packages C) providing regular, online training courses D) knowing employees' strengths and weaknesses

Q: According to research, a small business owner's familiarity with employees leads to greater ________. A) flexibility with HR policies B) financial profits and rewards C) clarification of expectations D) creativity in recruiting practices

Q: According to the text, what are the three tools that small businesses can use to improve their HR management practices? A) informality, adaptability, and reliability B) flexibility, familiarity, and informality C) creativity, flexibility, and adaptability D) familiarity, formality, and flexibility

Q: Which of the following is NOT an aspect of the OSHA Sharp program? A) Employers agree to correct identified hazards. B) Employers undergo a hazard identification survey. C) Employers agree to maintain a safety and health management system. D) Employers receive visits from inspectors after every workers' compensation claim is filed.

Q: The owner of A-1 Construction paid more in workers' compensation costs than salaries last year. Which of the following would most likely help the owner of A-1 Construction? A) taking online courses through the SBA B) screening employees with the Predictive Index C) requesting a consultation with an OSHA safety expert D) referring to the FirstStep Employment Law Advisor for assistance

Q: All of the following are options for small businesses looking for online training programs to improve their employees' skills EXCEPT ________. A) National Association of Manufacturers B) Small Business Administration C) American Management Association D) Equal Employment Opportunity Commission

Q: What is the primary reason that small firms use the Internet for employee training programs? A) relatively low costs B) OSHA guidelines C) SBA requirements D) guaranteed results

Q: Which of the following is the primary benefit for a small firm that uses the online services provided by testing vendors such as Wonderlic? A) reduced testing fees B) increased pool of applicants C) highly accurate job specifications D) more applicant background checks

Q: When Hank applied for a job with Morton Consulting, he was given the Predictive Index. What was Morton Consulting most likely attempting not to measure with the Predictive Index? A) dominance B) extroversion C) reading level D) blame avoidance

Q: The Wonderlic Personnel Test is especially appropriate for small businesses because it is ________. A) useful for training new hires B) equivalent to the GRE test C) developed by the EEOC D) easy to administer

Q: Kate is applying for a job at Logan Electronics, a small firm. Kate has been asked to take the Wonderlic Personnel Test. What is Logan Electronics most likely trying to measure? A) honesty and ethics B) psychological status C) general mental ability D) personality traits

Q: Small business owners can use O*NET when they need help with ________. A) writing job descriptions B) filing accident reports C) testing job applicants D) filing business taxes

Q: Jana owns a dry cleaning business and employs 25 people. She needs a safety and accident checklist that is specific to the dry cleaning industry. Jana would most likely find the information she needs on the ________ Web site. A) SBA B) O*NET C) EEOC D) OSHA

Q: Mark owns a small business that provides engineering consulting services. Mark is new to business ownership, and he has a list of questions he would like answered. Mark has logged on to the EEOC Web site to search for answers. Which of Mark's questions is LEAST likely to be addressed on this Web site? A) What employees are exempt from overtime pay? B) How do I know if EEOC laws apply to my business? C) What should I do if someone files a charge against my firm? D) What constitutes unfair treatment in the workplace? E) How would I resolve a discrimination charge without facing a lawsuit?