Complete Test Bank Chapter.12 Human Resource Management - Test Bank | Small Business & Entrepreneurship 1e by Vishal K. Gupta. DOCX document preview.

Complete Test Bank Chapter.12 Human Resource Management

Chapter 12- Human Resource Management

True/False

  1. Many small businesses in the U.S. never hire any employees

Response: See Introduction

Level: Easy

Learning Objective: Outline the pros and cons of hiring workers for a small business

  1. While large firms need to be familiar with federal laws, small firms are not affected by the federal laws

Response: See section 12.1

Level: Easy

Learning Objective: Outline the pros and cons of hiring workers for a small business

  1. A gig economy is an economic system in which firms hire permanent employees and pay them salary to do a work

Response: See section 12.1.1

Level: Medium

Learning Objective: Describe the various channels through which small firms find new employees

  1. Freelancers are those workers who work on a regular salary basis for a single employer

Response: See section 12.1.1

Level: Easy

Learning Objective: Describe the various channels through which small firms find new employees

  1. You are owner of a small firm in California. You misclassified a worker as an independent contractor. You are violating AB-5 law

Response: See section 12.1.1

Level: Medium

Learning Objective: Describe the various channels through which small firms find new employees

  1. Independent contractors are cheaper and require less oversight than regular employees

Response: See section 12.1.1

Level: Easy

Learning Objective: Describe the various channels through which small firms find new employees

  1. Job Analysis is the foundation for all subsequent human resource activities in the firm

Response: See section 12.1.2

Level: Easy

Learning Objective: Describe the various channels through which small firms find new employees

  1. According to the Society for Human Resource Management (SHRM), employee referral is the top source of new hires for small businesses

Response: See section 12.2

Level: Easy

Learning Objective: Describe the various channels through which small firms find new employees

  1. The P-J fit refers to the notion of compatibility between an individual and the organization hiring them

Response: See section 12.3

Level: Easy

Learning Objective: Explain employee selection process in small firms

  1. A growth mindset means that our qualities and competencies are fixed and cannot be changed through directed effort

Response: See section 12.3

Level: Easy

Learning Objective: Explain employee selection process in small firms

  1. Resume padding involves exaggerating or putting false information on the resume

Response: See section 12.3.1

Level: Easy

Learning Objective: Explain employee selection process in small firms

  1. The selection test must be a valid predictor of job performance

Response: See section 12.3.1

Level: Easy

Learning Objective: Explain employee selection process in small firms

  1. In America, it is legal to use voice stress analyzers in employment screenings

Response: See section 12.3.1

Level: Medium

Learning Objective: Explain employee selection process in small firms

  1. The selection tests are considered discriminatory if the tests rates for one social group are below 80% of the highest groups’ pass rate

Response: See section 12.3.1

Level: Medium

Learning Objective: Explain employee selection process in small firms

  1. Pre-employment testing with the right screening tools and procedures can help firms minimize hiring mistakes

Response: See section 12.3.1

Level: Easy

Learning Objective: Explain employee selection process in small firms

  1. Training helps employees learn the skills they need to perform their jobs

Response: See section 12.3.2

Level: Easy

Learning Objective: Explain employee training processes in small firms

  1. Hiring qualified people completely eliminates the need to have good training programs

Response: See section 12.3.2

Level: Easy

Learning Objective: Explain employee training processes in small firms

  1. On-the-job training is provided away from the employee’s actual place of work

Response: See section 12.3.2

Level: Easy

Learning Objective: Explain employee training processes in small firms

  1. The Fair Labor Standards Act (FLSA) classifies employees as exempt or non-exempt

Response: See section 12.4.1

Level: Easy

Learning Objective: Explain how companies can discipline and reward employees

  1. In U.S., non-exempt employees covered under the federal Fair Labor Standards Act are subject to the federal minimum wage

Response: See section 12.4.1

Level: Medium

Learning Objective: Explain how companies can discipline and reward employees

  1. Piecework rates and commissions are pay-for-performance approach to compensation

Response: See section 12.4.1

Level: Easy

Learning Objective: Explain how companies can discipline and reward employees

  1. According to stock options approach to compensation, employees may receive share in a company based on their performance

Response: See section 12.4.1

Level: Easy

Learning Objective: Explain how companies can discipline and reward employees

  1. Profit-sharing plans are known as cafeteria plans

Response: See section 12.4.1

Level: Easy

Learning Objective: Explain how companies can discipline and reward employees

  1. Maternity leave, paid vacations, and vision plan, are all examples of legally mandated benefits

Response: See section 12.4.2

Level: Easy

Learning Objective: Explain how companies can discipline and reward employees

  1. A fair disciplinary process should incorporate both appraisal and appeal.

Response: See section 12.4.3

Level: Easy

Learning Objective: Explain how companies can discipline and reward employees

Multiple Choice Questions

  1. What is the first step in the recruitment process?
  2. Interview candidates
  3. Define the position(s) to be filled
  4. Perform candidate background checks
  5. Contact candidates to fill application

Response: See section 12.1.2

Level: Medium

Learning Objective: Outline the pros and cons of hiring workers for a small business

  1. What are the uses of Information obtained during Job analysis?
  2. EEO compliance
  3. Recruitment
  4. Training
  5. All the Above

Response: See section 12.1.2

Level: Medium

Learning Objective: Outline the pros and cons of hiring workers for a small business

  1. Which of the following is NOT a technique used for job analysis?
  2. Interviews
  3. Questionnaires
  4. Resume padding
  5. Observation

Response: See section 12.1.2

Level: Easy

Learning Objective: Recruitment

  1. A job specification should include all of the following EXCEPT?
  2. Skills and abilities needed to successfully perform the job
  3. The number of years of experience required for the position
  4. Minimum education required for the position.
  5. Machines to be used for the job

Response: See section 12.1.2

Level: Medium

Learning Objective: Recruitment

  1. The two integral parts of Job Analysis are:
  2. Job specification and Job evaluation
  3. Job description and Job specification
  4. Job description and Job evaluation
  5. Job evaluation and performance evaluation

Response: See section 12.1.2

Level: Medium

Learning Objective: Recruitment

Response: See section 12.2

Level: Easy

Learning Objective: Describe the various channels through which small firms find new employees

  1. Katie runs a small grocery store. Katie plans to hire people to help her with daily operations. Which of the following, if true, most likely strengthens that Katie should hire her family and friends?
  2. Katie will get more time to discuss personal issues with family and friends at work
  3. Katie knows a friend who was fired from job because of stealing things and is looking for a new job
  4. Katie’s family and friends often give her unsolicited advice
  5. Family and friends are already familiar with the work and are willing to work long hours

Response: See section 12.2

Level: Hard

Learning Objective: Describe the various channels through which small firms find new employees

  1. Katie runs a small grocery store. Katie plans to hire people to help her with daily operations. Which of the following, if true, most likely undermines Katie’s decision to hire her friend, Sara?
  2. Katie and Sara understand each other’s strengths and weaknesses
  3. Sara has already worked in the same position for the other grocery store
  4. Sara is not willing to work long hours when necessary
  5. Sara is already familiar with the work

Response: See section 12.2

Level: Hard

Learning Objective: Describe the various channels through which small firms find new employees

  1. Which of the following is NOT the external source of recruitment?
  2. Social media
  3. Promotion
  4. Employment agencies
  5. Internet job sites

Response: See section 12.2

Level: Easy

Learning Objective: Describe the various channels through which small firms find new employees

  1. According to The American with Disabilities Act (ADA), when can firms administer physical examination:
  2. After a conditional letter of offer is made
  3. If it is mandated for all employees in the same job category
  4. Before making a job offer
  5. Both A and B

Response: See section 12.3.1

Level: Easy

Learning Objective: Explain employee selection process in small firms

  1. Which of the following represents resume padding?
  2. Having grammatical errors in a resume
  3. Making resume longer than one page
  4. Excluding home address from a resume
  5. Falsely claiming to possess a university degree

Response: See section 12.3.1

Level: Medium

Learning Objective: Explain employee selection process in small firms

  1. As an interviewer in a small firm, you ask a job aspirant, “Tell us about a time when you were in conflict with a team member. What did you do to resolve the situation?” What type of interview are you conducting?
  2. Situational
  3. Behavioral
  4. Stress
  5. Puzzle

Response: See section 12.3.1

Level: Medium

Learning Objective: Explain employee selection process in small firms

  1. The extent to which a selection test can predict how well a person performs on the job refers to _____
  2. Criterion validity
  3. Construct validity
  4. Content validity
  5. Face validity

Response: See section 12.3.1

Level: Easy

Learning Objective: Explain employee selection process in small firms

  1. ________refers to the degree to which a selection instrument captures a specific construct that is believed to underlie successful job performance
  2. Criterion validity
  3. Construct validity
  4. Content validity
  5. Face validity

Response: See section 12.3.1

Level: Easy

Learning Objective: Explain employee selection process in small firms

  1. When Katie started her new job, she was introduced to the business and to the current and some other new employees in the firm. She learned about the firm’s core values and personnel policies. In which of the following did Katie most likely participate?
  2. Performance management
  3. Performance Appraisal
  4. Employee Orientation
  5. Selection

Response: See section 12.3.2

Level: Easy

Learning Objective: Explain employee training processes in small firms

  1. You are owner of a marketing firm that advises clients on the use of digital ads. You ask Alex, a new hire, to learn the job by actually doing job-related tasks such as contacting clients. Alex is most likely participating in ________.
  2. off-the-job training
  3. Simulation
  4. modeling
  5. On-the-job training

Response: See section 12.3.2

Level: Easy

Learning Objective: Explain employee training processes in small firms

  1. You are owner of a marketing firm that advises clients on the use of digital ads. You ask Alex, a new hire, to take a day off to attend a lecture offered by a university. Alex is most likely to participate in ________
  2. Off-the-job training
  3. Modeling
  4. Job rotation
  5. On-the-job training

Response: See section 12.3.2

Level: Easy

Learning Objective: Explain employee training processes in small firms

  1. Which federal law regulates minimum wage, overtime remuneration, and working hours?
  2. Wagner Act
  3. Civil Right Act of 1964
  4. Wage Discrimination Act
  5. Fair Labor Standards Act

Response: See section 12.4.1

Level: Medium

Learning Objective: Explain how companies can discipline and reward employees

  1. What type of pay plan is used when employees are paid a set amount for each unit produced?
  2. Profit-sharing plan
  3. bonus
  4. Piecework
  5. Stock options

Response: See section 12.4.1

Level: Medium

Learning Objective: Explain how companies can discipline and reward employees

  1. A firm making headlights for cars pays workers $3 per unit. Adam assembles 250 headline units in one day. According to piecework rates, Adam would get
  2. $750
  3. $100
  4. $300
  5. $1500

Response: See section 12.4.1

Level: Medium

Learning Objective: Explain how companies can discipline and reward employees

  1. What are profit-sharing plans?
  2. Employees select the benefit that best suit their needs
  3. Employers reward the workers according to the profits earned
  4. Employees are rewarded based on their performance
  5. Employees make contributions from their salary

Response: See section 12.4.1

Level: Medium

Learning Objective: Explain how companies can discipline and reward employees

  1. Health and life insurance, vacation time, and child care facilities are examples of ________
  2. Pay-for-performance
  3. Benefits
  4. Bonuses
  5. Wages

Response: See section 12.4.2

Level: Easy

Learning Objective: Explain how companies can discipline and reward employees

  1. Which of the following is NOT a benefit required by law and mandatory?
  2. Unemployment compensation
  3. Paid time off to vote, serve on a jury, or perform military service.
  4. Social security
  5. Dental plan

Response: See section 12.4.2

Level: Medium

Learning Objective: Explain how companies can discipline and reward employees

  1. What are the characteristics of a good performance appraisal?
  2. Be based on well-specified benchmarks tied to the job description
  3. Must be non-discriminatory
  4. Must evaluate employees on their performance
  5. All of the above

Response: See section 12.4.3

Level: Medium

Learning Objective: Explain how companies can discipline and reward employees

  1. Who is responsible for reviewing a performance appraisal if an employee decides to appeal?
  2. Third party
  3. Employee
  4. Employee’s direct supervisor
  5. Appraiser

Response: See section 12.4.3

Level: Medium

Learning Objective: Explain how companies can discipline and reward employees

  1. According to the text, the BEST way to avoid a lawsuit when firing any employee is to
  2. Maintain good records of the person’s conduct and performance at work
  3. Maintain good records of the conversation that occurred when the dismissal message was delivered
  4. Keep an evidence that the employee was treated in a manner consistent with past practices
  5. All of the above

Response: See section 12.4.3

Level: Medium

Learning Objective: Explain how companies can discipline and reward employees

Document Information

Document Type:
DOCX
Chapter Number:
12
Created Date:
Aug 21, 2025
Chapter Name:
Chapter 12- Human Resource Management
Author:
Vishal K. Gupta

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