Deck 9: The New Venture Team, Small Firm Management, and Managing Human Resources

Question 1

A firm may receive unsolicited applications such as walk-ins from qualified and unqualified applicants.

Answer 1

True

Question 2

The fee charged by a private employment agency is normally paid by the applicant.

Answer 2

False

Question 3

In a large corporation,the values of top-level executives must be filtered through many layers of management before they reach those who produce and sell products.

Answer 3

True

Question 4

A system designed to make on-the-job training more effective is known as Job Instruction Training.

Question 5

Most operations or technically oriented people are not good at marketing or sales,and vice versa.

Question 6

A headhunter search firm locates qualified candidates for executive positions.

Question 7

An operations manager is describing the specific steps required to complete a manufacturing process.This is an example of creating business policies.

Question 8

While nice to have,goals are not absolutely required in order to plan successfully.

Question 9

Job specification is a list of knowledge skills,abilities,or other characteristics needed by a job applicant to perform a specific job.

Question 10

Profit sharing provides a more direct work incentive in small firms than in large ones.

Question 11

Fringe benefits are expensive,ranging from 20 to 40 percent of payroll expense for many small firms.

Question 12

A sales manager allows a senior sales person to use her judgment in granting different levels of discounts for her clients.This is an example of empowerment.

Question 13

Unions typically concentrate their primary attention on small companies,where their influence is most needed.

Question 14

An entrepreneur pays her office assistant $15 per hour but will pay $22.50 for overtime hours.This is an example of daywork.

Question 15

When work teams function properly,the number of supervisors needed decreases sharply.

Question 16

Cynthia is given more tasks to accomplish in her administrative position.This is an example empowerment.

Question 17

Small firms must be roughly competitive in wage or salary levels in order to attract well-qualified personnel.

Question 18

Progressive managers encourage some degree of employee participation in decisions affecting personnel and work processes.

Question 19

Compensation arrangements can be designed to create a powerful incentive is particularly true for small businesses.

Question 20

Businesses started by a team of entrepreneurs are more likely to succeed than businesses started by lone entrepreneurs.

Question 21

The developmental process begins within an employee's first two or three days on the job.

Question 22

In very small firms-those with 20 or fewer employees-extensive interaction is rare.

Question 23

A sales commission compensation plan is a type of daywork system.

Question 24

For all classes of employees,more training is accomplished outside of the workplace than through any other method.

Question 25

In the job applicant selection process all that is really required is an interview.

Question 26

Employee stock ownership plans have become popular but still carry many tax disadvantages.

Question 27

Business policies are basic statements that serve as guidelines for managerial decision making.

Question 28

In checking employment references,more accurate evaluations are the result of writing to the applicant's previous employers as oppose to contacting them orally.

Question 29

Skill in marketing and an ability to sell the product or service are together are considered one of the three critical areas of knowledge required to effectively launch a new business venture.

Question 30

A professional manager is a manager who has experience starting small businesses.

Question 31

Validity is the extent to which an employment test assesses true job performance ability.

Question 32

A sales manager is calculating her team's profitability by subtracting costs from projected revenues.This is an example of budgeting.

Question 33

The contractor is responsible for remitting his or her own taxes,CPP,and (if applicable)EI deductions to Canada Revenue Agency.

Question 34

Temporary help agencies are good sources of employees when extensive training is required.

Question 35

Reliability is the extent to which a test is consistent in measuring job performance ability.

Question 36

Private employment agencies are affiliated with the government.

Question 37

Most entrepreneurs are not trained or educated in business methods.

Question 38

Founders of new firms are typically movers and shakers,not administrators.

Question 39

Management functions are planning,leading,organizing,and controlling.

Question 40

An outline or a summary of the work to be performed on a job is known as a job description.

Question 41

Four employees from the Receivables Department are given the task to identify overdue accounts,make collections,and provide the Accounting Manager monthly reports on their progress.The four employees are members of a work team.

Question 42

Orientation refers to instructions given during the interview with an applicant.

Question 43

The concept that the boss does the thinking and the employee does the work is still the most effective way to manage a small business.

Question 44

Contracting is less expensive for employers than hiring employees because the company does not have to pay benefits and it gives the company more staffing flexibility.

Question 45

By following enlightened personnel policies,small firms can reduce the likelihood of unionization.

Question 46

Most training in small firms is accomplished while on the job.

Question 47

Entrepreneurs usually come from either the operations or the sales side of the business.

Question 48

Poor interviewing processes can cause high employee turnover.

Question 49

Harassment policies ensure that all people are treated equitably.

Question 50

Troy,John,and Derek are given the task to clean out a storage facility under the close eye of the supervisor.Troy,John,and Derek are considered to be members of a work team.

Question 51

Secondary schools,trade schools,colleges,and universities are undesirable sources for qualified employees required by a new venture.

Question 52

It is now illegal for employers to arrange for background investigations of job applicants.

Question 53

The possibility of being sued makes former employers reluctant to give a full and candid written report on former employees.

Question 54

The small firm should concentrate its training on nonmanagerial employees,recognizing that development of managers is beyond its range of expertise.

Question 55

A long-range plan is a firm's overall plan for the future.

Question 56

Employee training is an integral part of comprehensive quality management programs.

Question 57

Employee referrals provide a rich source of good applicants for many small firms.

Question 58

Because employers contribute to workers' compensation employees cannot sue the employer for losses or injuries that occur in the course of employment.

Question 59

A cafeteria plan is a fringe benefit that allows employees to receive breakfast,lunch,and snacks at the expense of the organization.

Question 60

Studies show that a poorly motivated employee in a company of five to ten people can result in 10 to 20 percent loss in productivity,severely impacting the bottom line.

Question 61

Belinda no longer feels that paying architects by the number of projects completed for her design company compensates then fairly.She therefore wants to pay the architects on the basis of hours worked.What compensation system should Belinda use?

A) profit-sharing
B) daywork
C) commission
D) differential piece rate

Question 62

Which statement best describes contract staff?

A) They do not charge for their services.
B) They charge from 25 to 50 percent of payroll.
C) They are not deemed to be employees of the company.
D) They are employees.

Question 63

Patrick is forecasting costs to determine how much cash the company will need to borrow before it begins to generate revenues.What is Patrick creating?

A) balance sheet
B) cash flow statement
C) income statement
D) budget

Question 64

As the new manager of a sales team,Colleen gave her staff decision making capability they previously did not have.What did Colleen introduce to the department?

A) empowerment
B) despotism
C) autocratic management
D) hero worship

Question 65

A small business owner wishes to persuade a highly qualified applicant (a business school graduate)to carefully consider a position with his firm,even though the applicant has also had offers from large corporations.What should the owner emphasize most?

A) salary and bonus plan
B) retirement program
C) opportunity for early promotion
D) long history of the firm

Question 66

Jeremy is an operations manager within a plastics manufacturing company.Jeremy is able to resolve processing problems and implement permanent solutions.Which common characteristic of a manager does Jeremy exhibit?

A) innovative
B) analytical
C) intuitive
D) bold

Question 67

Karen is seeking reference comments on applicants for jobs with her business.The former employers and other parties she calls seem reluctant to do more than verify dates of employment.What is a probable reason for their reluctance?

A) Records for former employees are filed away and not readily available.
B) The former employer may plan to recall the employee and wish to avoid losing her to another employer.
C) Respondents may fear litigation by former employees who fail to get jobs they seek.
D) Requests of this kind simply take too much time for large company personnel departments.

Question 68

Sebastian needs workers to help pack orders for the Christmas season.Which resource should Sebastian use?

A) public employment agency
B) employee referral
C) help-wanted advertising
D) temporary-help agency

Question 69

The owner of a small automobile garage has been advised to use an application form to evaluate applicants.What will this be most useful in discovering?

A) arrest records
B) background data
C) physical disabilities
D) religious orientation

Question 70

Which of the following best describes profit-sharing plans?

A) They provide a more powerful incentive in small firms than in large firms.
B) They are practically impossible to use successfully in small firms.
C) They are similar to individual incentive plans in their motivational effect.
D) They are an expensive fringe benefit for small firms,costing 40 percent of payroll.

Question 71

Marco brings together some key employees to generate growth in a new territory.He tells them they can operate within a budget and within three months he wants to know the results.What has Marco created?

A) self-directed group
B) matrix
C) work team
D) task force

Question 72

A small electrical contractor with nine employees hears that the employees would like to join a union.Which of the following applies to the firm?

A) It must follow the bargaining pattern set by large contractors.
B) It can lawfully refuse to negotiate.
C) It must negotiate if a majority of employees decide to unionize.
D) It must deduct union dues from employees' paycheques.

Question 73

What would cause the owner of a growing business to seriously consider hiring a human resources manager?

A) the labour turnover rate is low
B) total employment exceeds 100
C) employees are not unionized
D) morale is high

Question 74

The owner of a small engines repair company has attended a seminar on quality management and is determined to improve quality performance.What should this owner recognize about training employees in quality goals and procedures?

A) Quality training can produce substantial,measurable quality improvements relatively quickly.
B) Direct supervisory one-on-one instruction is the only training procedure that shows consistent results.
C) Quality training gradually raises quality-consciousness but must be pursued for two or three years before significant improvements can be detected.
D) Quality performance and workmanship are not good topics for training because careful work habits must be developed,if they are ever developed,on a personal basis over many years.

Question 75

The owner of a video rental business wishes to allow employees to own part of the business.Which plan can she use to do this?

A) profit-sharing
B) bonus
C) ESOP
D) fully vested pension

Question 76

Keith started a new venture retrofitting homes for the elderly.He finds unique ways to install safety features in a very economical manner,saving his clients lots of money.Which common characteristic of a business founder does Keith exhibit?

A) innovative
B) analytical
C) focused on the short term
D) cautious

Question 77

How do employee relations in a small firm compare with those in a large firm?

A) The relationships are less formal in the large firm.
B) The large firm concentrates more on production and the small firm is more interested in personnel.
C) The small firm makes less use of formal personnel policies.
D) Personnel policy changes are implemented more quickly in the large firm than in the small firm.

Question 78

Why is contracting employees a good alternative for small businesses?

A) Contracting companies do not have to pay benefits and have greater flexibility.
B) Contracting companies decide who gets promoted.
C) Contracting companies charge the employees,not the small business.
D) Contracting companies are not responsible for the employees.

Question 79

Joseph would like to hire an experienced sales manager who is currently working for a competitor.What type of organization should Joseph hire to assist the hiring manager?

A) temporary-help agency
B) leasing company
C) lawyer
D) headhunter

Question 80

How do small firms give employees a share of ownership in the business?

A) through group incentive plans
B) through profit-sharing plans
C) through employee stock ownership plans
D) through commissions and bonuses