Title: Human Resources in Small and Entrepreneurial Businesses
Course: Question Banks

Q: A sign that your small business may need additional human resources is:
- satisfactory employee retention (Incorrect. If anything, employee turnover will increase when too much work is being added to their responsibilities.)
- a decline in sales (Incorrect. This can sometimes occur, but it’s not always the case.)
- employee feedback letting you know they are overworked. (Incorrect. This is sometimes accurate and, well, sometimes it’s just complaining.)
- a decline in the quality of customer service and satisfaction (Correct. When employees are overtaxed, they sometimes can’t help customers the way they’d like.)
A: a decline in the quality of customer service and satisfaction

Q: An HR professional conducting a needs analysis might include this tactic:
- a survey of customers regarding service levels (Incorrect. This does not help you determine if you need additional help.)
- decide if a new position will be part- or full-time. (Incorrect. You have to decide if the employee is actually needed first!)
- consult guidelines for what another HR professional might do. (Incorrect. Industry benchmarks are a good indicator, but look at data and not opinions!)
- a manager consultation (Correct. Sitting down regularly with managers is always a good idea, especially when consulting them to hire additional people.)
A: a manager consultation

Q: Which of the following is important to consider when budgeting for a new employee?
- a managerial consultation (Incorrect. A manager may not have a good idea how much to pay a new employee.)
- the cost of the posting on a job board. (Incorrect. That cost is usually nominal in comparison to other considerations.)
- a questionnaire to current employees. (Incorrect. This is a needs analysis tactic.)
- the industry average pay for the new position. (Correct. That will help an HR professional determine how much it will cost to attract someone of quality to the job.)
A: the industry average pay for the new position.

Q: Small businesses should determine lines of authority and accountability because:
- they need to act like larger companies if they want to grow. (Incorrect. Small businesses don’t necessarily want to be big companies, anyway!)
- employees will not have to wear “many hats.” (Incorrect. In a small business, that’s usually not true!)
- employees can then get feedback and performance reviews from their managers. (Incorrect. That is a benefit, though.)
- employees may be confused about which work and which projects take priority. (Correct. Should Joe do what Sasha says or what Sue says? Determining lines of authority and accountability solve these issues.)
A: employees may be confused about which work and which projects take priority.

Q: If a small business is interested in a traditional organizational structure, with different departments focused on different areas of the business, what structure might they opt to use?
- A virtual organizational structure (Incorrect. This structure benefits an organization that outsources many of their functions.)
- A matrix organizational structure. (Incorrect. This would benefit an organization looking to support teams of employees made up of different departments.)
- A divisional organizational structure. (Incorrect. This structure is best used for businesses that have divisions.)
- A functional organizational structure. (Correct. This would allow finance employees to report to a finance leader, sales and marketing employees to report up to a sales and marketing leader, and so on.)
A: A functional organizational structure.

Q: An employee/manager relationship is legally considered a [dropdown1] relationship.
- coworker (Incorrect. This doesn’t reflect the control one has over the other.)
- contractor/employer (Incorrect. This is the opposite of what their relationship is considered)
- payor/payee (Incorrect. This is not the right relationship.)
- master/servant (Correct. Legally, this is how the relationship is treated.)
A: master/servant

Q: A contractor is a good choice for a small business owner when:
- the job requires close supervision. (Incorrect. This is a good reason to hire an employee into the business.)
- the business owner wants complete control over the quality of the work. (Incorrect. The owner will have no control over the contractor’s work.)
- the work requires local knowledge. (Incorrect. This is a good reason to bring an employee onboard.)
- a level of expertise is needed that is not on staff and too expensive to train for. (Correct. This is an excellent reason to hire a contractor.)
A: a level of expertise is needed that is not on staff and too expensive to train for.

Q: A small business with 48 employees does not need to address the:
- COBRA (Incorrect. If you have more than 20 employees and offer healthcare, this must be a part of your offering.)
- Equal Opportunity Employment Laws (Incorrect. Employers with even one employee must comply with this.)
- Fair Labor Standards Act (Incorrect. Employers with even one employee must comply with this.)
- Affordable Care Act (Correct. This act is relevant for 50 or more employees.)
A: Affordable Care Act

Q: An HR professional who is looking for specific information regarding meals and breaks might consult this set of laws:
- Occupational Safety and Health Act (Incorrect. This act provides rules and regulations around the safety of the workplace.)
- Affordable Care Act (Incorrect. This act exists to provide affordable health care to the labor force.)
- Worker Adjustment and Retraining Notification Act (Incorrect. This act stipulates that fair notice must be given to employees who are about to be laid off.)
- Fair Labor Standards Act (Correct. This act will stipulate if there are any rules regarding employee breaks.)
A: Fair Labor Standards Act

Q: Which is the form that a small business employer must keep on file to prove that a worker is eligible to work in the United States?
- W-2 (Incorrect. This form shows the amount of salary paid and taxes withheld, and other payroll information.)
- W-4 (Incorrect. This form is completed by the employee to inform the small business owner as to how much taxes he or she should withhold.)
- job application (Incorrect. This form is a collection of employee information that a hiring manager will review to determine if the applicant is fit for a job.)
- I-9 (Correct. This form requires signature that a passport and/or other ID has been reviewed.)
A: I-9

Q: Bob is a new employee, working 40–50 hours a week at his new job and not 100% sure what it is he’s supposed to be doing. How would a job description from his manager, the small business owner, be helpful?
- It would help the small business owner hire other good employees like Bob (Incorrect. Job descriptions are good for that, but that’s not what Bob needs.)
- It would help Bob understand who his manager is so he doesn’t wear too many hats. (Incorrect. That may be somewhat true, but there’s a better answer.)
- It would be helpful for the small business owner in case Bob sues him. (Incorrect. This may be somewhat true, but there’s a better answer.)
- It would set clear expectations for Bob. (Correct. A job description would help Bob be clear on his responsibilities.)
A: It would set clear expectations for Bob.

Q: A job description should be aligned with FLSA regulations regarding:
- attracting good employees to the company (Incorrect. That’s something a job description should do, but the FLSA doesn’t require it.)
- Clearly state authority and accountability. (Incorrect. A nice-to-have feature in a job description, but not a legal requirement.)
- requirements for disclosing EEO compliance. (Incorrect. These items are not required in the FLSA.)
- exempt and non-exempt employees. (Correct. The job should be realistic in its physical, educational and other requirements.)
A: exempt and non-exempt employees.

Q: A job description may be useful in a discrimination charge if a small business employer included what in the job description?
- Lines of authority and accountability (Incorrect. It’s not likely that would be relevant in a discrimination case.)
- That the small business is EEO compliant. (Incorrect. The judge will probably decide that, saying it in a job description doesn’t mean much.)
- rate of pay. (Incorrect. This is most likely not relevant.)
- Essential functions. (Correct. Stating how much weight the employee is expected to lift or how long he is expected to stand can be helpful in fighting a discrimination case.)
A: Essential functions.

Q: How does an HR professional prevent a toxic work environment with documented employee policies and procedures?
- Employee policies and procedures protect the employer legally. (Incorrect. That’s not an avenue to a less toxic work environment.)
- Employee policies and procedures provide consistent direction and guidelines for tasks. (Incorrect. True, and while that makes life easier for employees, it doesn’t necessarily prevent a toxic work environment.)
- Employee policies protect the business’ brand. (Incorrect. This doesn’t really figure into a work environment.)
- Employee policies and procedures ensure all employees are treated equitably. (Correct. If everyone is treated the same, there’s not much to complain about.)
A: Employee policies and procedures ensure all employees are treated equitably.

Q: If you’re a small business owner, the five essential items to document in an employee policy and procedure document are:
- At-will employment, rate of pay, paid time off, work standards, and EEO/harassment. (Incorrect. Close, but not quite right.)
- Paid time off, EEO/harassment, payroll, code of conduct, and consistency in task (Incorrect. Consistency in task isn’t key for a small business owner, but nice to have!)
- Paid time off, EEO/harassment, at-will employment, salary expectations, and code of conduct (Incorrect. Salary expectations aren’t anything that should be outlined in a document of this kind.)
- At-will employment, payroll, paid time off, code of conduct, and EEO/harassment. (Correct. These are the five most important issues to cover in the policy and procedure manual if you’re a small business owner.)
A: At-will employment, payroll, paid time off, code of conduct, and EEO/harassment.

Q: If you’re a small business owner, it’s a good idea to put this into practice to further protect yourself:
- Include essential functions in the policies and procedures manual. (Incorrect. But owners should include them in job descriptions!)
- Put a copy of the employee policies and procedures document online for employee reference (Incorrect. It’s a good idea, but not the one we’re looking for.)
- Make hard copies of the employee policies and procedures document for every employee. (Incorrect. No need to kill trees for the sake of your policies and procedures.)
- Have the employee sign a form stating she’s read the company’s policies and procedures. (Correct. This is good practice, because it’s proof that you’ve informed your employee of your policies and procedures.)
A: Have the employee sign a form stating she’s read the company’s policies and procedures.

Q: An HR professional who is looking for a study on the most productive work schedules for employees working the night shift might consult which publication?
- HR Executive Magazine (Incorrect. This magazine features strategy and trends geared to HR leaders.)
- Workforce Magazine (Incorrect. This magazine is geared toward HR workforce trends.)
- HR Magazine (Incorrect. This is an HR generalist magazine and doesn’t usually feature studies.)
- Journal of HR (Correct. This is a magazine that features scholarly studies and research)
A: Journal of HR

Q: I-9, W-2, and W-4 forms can be found on:
- the Department of Labor website. (Incorrect. There are other great resources available here.)
- the OSHA website. (Incorrect. This website features information about workplace safety.)
- the EEOC website. (Incorrect. This is a great place to find information about equal opportunity employment.)
- the Internal Revenue Service website. (Correct. There’s a specific page for “hiring employees.”)
A: the Internal Revenue Service website.

Q: An HR professional has to think differently about hiring for a start-up. Which of the following hiring approaches is unique to the start-up business?
- Developing a job description with exempt and non-exempt consideration. (Incorrect. This is something all businesses should be doing.)
- Looking for an employee with small business experience. (Incorrect. This would be important for small businesses and for start-ups.)
- Developing an employee referral program. (Incorrect. This is a great tool for a start-up but not necessarily unique to them.)
- Begin the recruiting process before the money for the employee is in the budget. (Correct. Start-ups are looking for investors, so planning ahead means helping them move faster.)
A: Begin the recruiting process before the money for the employee is in the budget.

Q: Start-up founders find that a candidate is most successful in a start-up atmosphere when:
- the candidate has little or no large corporation experience. (Incorrect. This was not mentioned as a desirable trait.)
- the candidate has a good technology background. (Incorrect. This might be a good thing in a candidate, but it would be specific to the business.)
- the candidate was confident about things he did—and didn’t—know. (Incorrect. Start-up founders mentioned that candidates were more successful when they admitted things they didn’t know.)
- the candidate knows and researches the company’s competitors. (Correct. This is a benefit in a start-up candidate.)
A: the candidate knows and researches the company’s competitors.

Q: Many start-ups suffer from high turnover because:
- the environment is relatively stable. (Incorrect. Start-ups are usually lacking in stability.)
- the company moves too fast to provide training and guidance. (Incorrect. That’s not a consistent quality among start-ups, though probably true of some.)
- they don’t hire HR professionals to provide rules and regulations regarding employment (Incorrect. While true of many start-ups, it’s not cited as a reason for higher turnover.)
- turnover in the industry is generally higher than average. (Correct. So many start-ups are technology based, and there’s high turnover industry-wide.)
A: turnover in the industry is generally higher than average.

Q: A Friday, “bring your dog to work” day is an example of this start-up employee retention practice:
- Rewarding and recognizing (Incorrect. Though bringing your dog to work would be a great reward, rewarding and recognizing is about calling out a job well done.)
- employee policies and procedures. (Incorrect. Policies and procedures outline expectations and guidelines, and while they can include dogs at work, they aren’t focused on that.)
- helping employees with work-life balance. (Incorrect. Dogs don’t promote work-life balance.)
- Promoting company bonding. (Correct. Getting to know co-workers as dog owners is a great way to build connections.)
A: Promoting company bonding.

Q: Why is manager training an important part of an employee retention program for start-ups?
- Managers of start-ups are often thrown into the deep end without training at a start-up. (Incorrect. This may be true somewhere, but it’s not a consistent issue.)
- Managers of start-ups often don’t have people skills. (Incorrect. Managers are often hired with previous managerial experience.)
- Managers of start-ups spend too much time doing other work and can’t manage employees effectively. (Incorrect. That’s not consistently true in start-ups.)
- When the manager learns to be a better leader, her employees will stay. (Correct. Employees often quit managers, not jobs.)
A: When the manager learns to be a better leader, her employees will stay.