CH 17 – Building a New Venture Team and Planning

Question 1

1) \_\_\_\_\_\_\_\_ is the process of influencing and inspiring others to work to achieve a common goal and then giving them the power and the freedom to achieve it.
A) Management
B) Organizing
C) Leadership
D) Coordination

Answer 1

C

Question 2

2) Leadership is \_\_\_\_\_\_\_\_.
A) essential to a company's success
B) not an easy skill to learn
C) influencing and inspiring others to work to achieve a common goal and then giving them the power and the freedom to achieve it
D) All of the above

Answer 2

D

Question 3

3) Which of the following pairs describing leadership (first column) and management (second column) is not accurate?

Answer 3

C) Involves doing things right Involves doing the right things

Question 4

4) Which of the following is not a behavior typically exhibited by effective leaders?
A) Define and constantly reinforce the vision they have for the company.
B) Respect and support their employees.
C) Require employees to gather necessary resources to complete their tasks; they will be more likely to “feel ownership” than if you did it for them.
D) Create an environment in which people have the motivation, the training, and the freedom to achieve the goals they have set.

Answer 4

C

Question 5

5) Which of the following is not one of the vital tasks small business leaders must perform?
A) Hire the right employees to the team and constantly improve their skills.
B) Create a culture for retaining employees.
C) Plan for “passing the torch” to the next generation of leadership.
D) Keep flexible and do not be concerned about preparing for the next generation of management.

Answer 5

D

Question 6

6) A leadership style in which a leader takes on the role of a servant first and the role of a leader second is referred to as a \_\_\_\_\_\_\_\_ leader. 
A) servant 
B) passive 
C) managerial 
D) subservient

Answer 6

A

Question 7

7) Questions like "What are you deeply passionate about?", "What can you be the best in the world at?" and "What drives your economic engine?" are important to define your \_\_\_\_\_\_\_\_, according to the work of Jim Collins. 
A) hedgehog concept
B) core competencies
C) critical strategies
D) keys to success

Answer 7

A

Question 8

8) Both leadership and management are essential to a small company’s success, but leadership comes first.

Answer 8

TRUE

Question 9

9) Leadership deals with doing things right; management deals with doing the right things.

Answer 9

FALSE

Question 10

10) Although a small business manager must assume a wide range of ideas, tasks, and responsibilities, none is more important than the role of leader.

Answer 10

TRUE

Question 11

11) Leadership gets a small business going; management keeps it going.

Answer 11

TRUE

Question 12

12) Management and leadership are essentially the same.

Answer 12

FALSE

Question 13

13) A strong leader does not share aspects of his or her company’s financial health, its future plans, or her vision for it with employees.

Answer 13

FALSE

Question 14

14) Effective leaders know they must punish workers who take risks and fail so that other workers do not make the same mistakes.

Answer 14

FALSE

Question 15

15) Effective leaders know that what they do is more important than what they say because they set the example for their employees.

Answer 15

TRUE

Question 16

16) Today’s workforce responds best to a leadership style based on instilling fear and intimidation.

Answer 16

FALSE

Question 17

17) Effective leaders make sure that workers have both the tangible and the intangible resources they need to do their jobs well.

Answer 17

TRUE

Question 18

18) Effective leaders recognize that money is not the only reward that motivates workers.

Answer 18

TRUE

Question 19

19) Questions like “What are you deeply passionate about?”, “What can you be the best in the world at?” and “What drives your economic engine?” are important to define your hedgehog concept, according to the work of Jim Collins.

Answer 19

TRUE

Question 20

25) List at least ten of the seventeen behaviors that effective leaders exhibit.

Answer 20

Effective leaders exhibit many of the following characteristics:
1. Create a set of values and beliefs for employees and passionately pursue them.
2. Establish a culture of ethics.
3. Define and then constantly reinforce the vision they have for the company.
4. Develop a strategic plan that gives the company a competitive advantage.
5. Respect and support their employees.
6. Set the example for their employees.
7. Are authentic.
8. Create a climate of trust in the organization.
9. Build credibility with their employees.
10. Focus employees’ efforts on challenging goals and keep them driving toward those goals.
11. Provide the resources employees need to achieve their goals.
12. Communicate with their employees.
13. Value the diversity of their workers.
14. Celebrate their workers’ successes.
15. Are willing to take risks.
16. Encourage creativity among their workers.
17. Maintain a sense of humor.
18. Create an environment in which people have the motivation, training, and freedom to achieve
the goals they have set.
19. Create a work climate that encourages maximum performance.
20. Become a catalyst for change.
20. Develop leadership talent.
21. Keep their eyes on the horizon.

Question 21

27) Is Norm Schultz correct in his attitude about workers not wanting recognition?

Answer 21

Answer: No, Norm is correct in saying that “Recognition won’t put bread on the table,” but he fails to see that recognition can be a primary source of motivation for many employees. Some workers strive for a “pat on the back” from the boss, and, in some cases, recognition can be just as important as money.

Question 22

28) What do you think about Norm Schultz’s attitudes toward employees?

Answer 22

Answer: While “treat people fairly and never cheat them” is good advice, Norm could go one step further and become a more effective manager by offering praise and recognition more often.

Question 23

29) Which of the following is true regarding hiring mistakes?
A) Hiring mistakes are expensive.
B) Companies’ informal processes may lead to unpredictable outcomes.
C) Small businesses are most likely to make hiring mistakes because they lack the human resources experts and the disciplined hiring procedures large companies have.
D) All of the above

Answer 23

D

Question 24

30) One of the best sources for prospects for new positions may come from \_\_\_\_\_\_\_\_.
A) colleges and universities
B) the Internet
C) current employees
D) employment advertisements

Answer 24

C

Question 25

31) Which of the following techniques would you not recommend to a company desiring a stronger recruiting strategy?
A) Look inside the company first — a promotion-from-within policy serves as an incentive for existing workers to upgrade their skills.
B) Encourage employee referrals — reward employees for successful referrals.
C) Ensure that your recruitment efforts are known — whether in traditional media, the Internet, or on college campuses.
D) Avoid hiring retired workers — they too often fail to have anything to offer.

Answer 25

D

Question 26

32) Posting job openings on the Internet has proven to be ________.
A) a relatively ineffective method of recruiting
B) a cost-effective method to attract candidates from other areas
C) an effective method to attract candidates and is relatively expensive
D) problematic for entrepreneurial businesses

Answer 26

B

Question 27

33) A \_\_\_\_\_\_\_\_ is the process by which a company determines the duties and the nature of the jobs to be filled and the skills and experience required of the people who are to fill them.
A) job analysis
B) job description
C) job specification
D) management audit

Answer 27

A

Question 28

34) Luisa, the director of human resources, is discussing the duties and responsibilities of a new position and its working conditions with Delmar, the supervisor of the position. Luisa and Delmar are discussing a \_\_\_\_\_\_\_\_.
A) job description
B) management audit
C) job specification
D) job analysis

Answer 28

A

Question 29

35) Burt is applying for a position as a staff accountant. The job specification for the position might list all of the following items except \_\_\_\_\_\_\_\_.
A) BBA in Accounting
B) 3 years of experience
C) prepare daily sales reports
D) knowledge of QuickBooks

Answer 29

C

Question 30

36) A job \_\_\_\_\_\_\_\_ identifies the duties and responsibilities of a position and its working conditions, while a job \_\_\_\_\_\_\_\_ identifies the qualifications required of the job candidate in terms of skills, education, and experience needed.
A) specification; description
B) description; specification
C) analysis; specification
D) analysis; description

Answer 30

A

Question 31

37) The \_\_\_\_\_\_\_\_, published by the Department of Labor, lists more than 20,000 job titles and descriptions and serves as a useful tool for getting a small business owner started when writing job descriptions.
A) Title IX Handbook
B) Team Handbook
C) Job Listing Directory
D) Dictionary of Occupational Titles

Answer 31

D

Question 32

38) Which of the following types of questions should a business owner ask a candidate in a job interview?
A) Questions calling for “yes or no” answers.
B) Questions about the candidate’s religious beliefs.
C) Questions based on on-the-job scenarios that require open-ended answers.
D) Questions about the candidate’s physical traits, characteristics, and family life.

Answer 32

C

Question 33

39) A \_\_\_\_\_\_\_\_ interview is where the interviewer gives candidates a typical job-related situation to assess how they respond. 
A) situational
B) puzzle
C) circumstantial
D) exploratory

Answer 33

A

Question 34

40) A \_\_\_\_\_\_\_\_ interview involves offbeat questions to determine how job candidates think and reason, allowing the interviewer to assess their capacity for creativity. 
A) situational
B) puzzle
C) circumstantial
D) game-based

Answer 34

B

Question 35

41) Effective interviewers spend about \_\_\_\_\_\_\_\_ percent of the interview talking and \_\_\_\_\_\_\_\_ percent listening.
A) 25; 75
B) 50; 50
C) 75; 25
D) 90; 10

Answer 35

A

Question 36

42) Which of the following is not a recommended guideline for developing questions to ask candidates in job interviews?
A) Develop a series of core questions and ask them of every candidate.
B) Ask only questions calling for “yes or no” answers to avoid any controversy regarding the direction the job interview took; this way, you have better control of the situation.
C) Create hypothetical situations candidates would likely encounter on the job and ask how they would handle them.
D) Ask candidates to describe a recent success and a recent failure and how they dealt with them.

Answer 36

B

Question 37

43) Which of the following best represents the three phases of an effective job interview?
A) Breaking the ice, asking informative questions, and providing as much information about the company (good and bad) as possible.
B) Breaking the ice, asking informative questions, and selling the candidate on the company.
C) Breaking the ice, asking informative questions, and selling the candidate on the company regardless of their potential fit.
D) Breaking the ice, asking questions in an interrogative manner, and selling the candidate on the company.

Answer 37

B

Question 38

44) Successful interviewers always listen for these in an interview to see whether it matches the candidate's words. This interviewer is referring to the candidate's \_\_\_\_\_\_\_\_.
A) work experience
B) job-related skills
C) nonverbal clues or body language
D) nervousness

Answer 38

C

Question 39

45) Which government agency is responsible for enforcing employment laws?
A) The Fair Labor Standards Commission
B) The National Labor Relations Board
C) The Equal Employment Opportunity Commission
D) The Justice Department

Answer 39

C

Question 40

46) If a job candidate files charges of employment discrimination against a company, the burden of proof in the case falls on ________.
A) the employer to prove that all pre-employment questions are job-related and nondiscriminatory
B) the candidate to prove that some pre-employment questions and actions were discriminatory
C) the Equal Employment Opportunity Commission representing the job candidate in the lawsuit
D) None of the above

Answer 40

A

Question 41

47) Although many business owners see checking references as a formality and pay little attention to it, the process is ________.
A) expensive and often meaningless
B) necessary and often invaluable
C) optional, based on the position’s salary and relative importance
D) a questionable practice that may bias the hiring process

Answer 41

B

Question 42

48) According to a survey by CareerBuilders, almost \_\_\_\_\_\_\_\_ of candidates either exaggerated or falsified information about their previous employment on their resumes.
A) one-third
B) three-fourths
C) half
D) two-thirds

Answer 42

C

Question 43

49) Every new employee a business owner hires determines the heights to which the company can climb or the depths to which it will plunge.

Answer 43

TRUE

Question 44

50) Business owners must recognize that what they do before they start interviewing candidates for a position determines to a great extent how successful they will be in the hiring process.

Answer 44

TRUE

Question 45

51) Companies desiring to improve their recruitment efforts are finding that the Internet offers tremendous reach at a relatively low cost and is very effective.

Answer 45

TRUE

Question 46

53) A job analysis describes what the job is, what its duties and responsibilities are, and what work conditions are involved.

Answer 46

FALSE

Question 47

54) A job analysis describes the process by which a firm determines the duties and nature of the jobs to be filled and the skills and experience required of the people who are to fill them.

Answer 47

TRUE

Question 48

55) A job description sets forth a job’s duties and responsibilities; a job specification translates these duties into the qualifications needed for that job.

Answer 48

TRUE

Question 49

56) The Dictionary of Occupational Titles, a listing of more than 20,000 job titles and descriptions, is a useful tool for getting a small business owner started when writing job descriptions.

Answer 49

TRUE

Question 50

58) Small companies are least likely to make hiring mistakes because most owners have developed clearly defined job specifications and job descriptions.

Answer 50

FALSE

Question 51

59) To give the interviewing process more consistency, a business owner should develop a series of core questions and ask them of every candidate.

Answer 51

TRUE

Question 52

60) The most effective job interviews are unplanned, unstructured interactions between the small business owner and the job applicant.

Answer 52

FALSE

Question 53

61) A situational interview gives the candidate a typical job-related situation to see how they respond.

Answer 53

TRUE

Question 54

62) The intent of a situational interview is to make the interviewee as uncomfortable as possible without violating legal or ethical standards.

Answer 54

FALSE

Question 55

63) In the breaking-the-ice phase of the interview process, skilled interviewers often use the job description to explain the nature of the job and the company’s culture to candidates.

Answer 55

TRUE

Question 56

64) Effective interviewers ignore candidates’ nonverbal clues (i.e., body language) in interviews because they know that most candidates are so nervous that their nonverbal communication is meaningless.

Answer 56

FALSE

Question 57

65) Effective interviewers spend about 75 percent of the interview talking and about 25 percent listening.

Answer 57

FALSE

Question 58

66) Effective interviewers skip the breaking-the-ice phase of a job interview and immediately start asking candidates tough questions so they can see how the candidates respond under stress.

Answer 58

FALSE

Question 59

67) An effective job interview contains three phases: breaking the ice, asking questions, and selling the candidate on the company.

Answer 59

TRUE

Question 60

68) Interviewers should avoid asking job candidates questions based on hypothetical on-the-job scenarios and how the candidate would handle them because the Equal Employment Opportunity Commission considers such questions to be illegal.

Answer 60

FALSE

Question 61

69) The Equal Employment Opportunity Commission (EEOC) supplies employers with a list of questions it considers illegal in interviews.

Answer 61

FALSE

Question 62

70) In addition to contacting the references a job applicant provides, experienced employers also call an applicant’s previous employers to attempt to get a clear picture of the applicant’s job performance, character, and work habits.

Answer 62

TRUE

Question 63

71) Small business owners should take the time to check every candidate’s

Answer 63

TRUE

Question 64

72) Assume the role of a consultant to a small business owner who is about to conduct a job interview for the first time. Identify the guidelines that will help him develop interview questions. Also, explain the three phases of an effective interview.

Answer 64

Answer:
The guidelines for developing interview questions include:
∙ Develop a series of core questions and ask them of every candidate.
∙ Ask open-ended questions (including on-the-job scenarios) rather than questions calling for yes or no answers.
∙ Create hypothetical situations candidates would be likely to encounter on the job and ask how they would handle them.
∙ Probe for specific examples in the candidate’s past work experience that demonstrate the necessary traits and characteristics.
∙ Ask candidates to describe a recent success and a recent failure and how they dealt with them.

An effective interview consists of three phases:
1. Breaking the Ice
The first phase is used to set the interviewee and the interviewer at ease.
2. Asking Questions
In the second phase, the interviewer asks questions and listens to the candidate’s responses and body language. Effective interviewers spend about 25 percent of the time talking and listen the remaining 75 percent.
3. Selling the Candidate on the Company
In the final phase, the employer tries to sell the candidate on her/his company. Usually in this phase, the interviewee asks several questions about the company, the job itself, and other relevant issues.

Question 65

8) \_\_\_\_\_\_\_\_ is the distinctive, unwritten code of conduct that governs the behavior, attitudes, relationships, and style of an organization.
A) Organizational structure
B) Company culture
C) Hierarchy of command
D) Formal organization

Answer 65

B

Question 66

79) A company's culture manifests itself in \_\_\_\_\_\_\_\_.
A) how workers dress
B) the language workers use
C) the way workers behave
D) All of the above

Answer 66

D

Question 67

80) Company culture has a powerful impact on ________.
A) the way people work together in a business
B) how people in a company do their jobs
C) how people in a company treat their customers
D) All of the above

Answer 67

C

Question 68

81) Which of the following statements about a company’s culture is false?
A) Company culture manifests itself in a variety of ways, from how workers dress and act to the language they use.
B) As a company grows larger, its culture tends to remain constant.
C) Culture arises from an entrepreneur’s consistent and relentless pursuit of a set of core values that everyone in the company can believe in.
D) All of the above

Answer 68

B

Question 69

82) Successful organizational culture supports exceptional performance and is compatible with the firm’s stated values and beliefs. Which of the following best illustrates this concept?
A) A “do what is needed regardless” attitude, diversity, respect for work and life balance, a sense of purpose and a sense of fun, and participative management in a learning environment.
B) Honesty and integrity, diversity, respect for work and life balance, a sense of purpose and a sense of fun, and dictatorial management in a learning environment.
C) Honesty and integrity, diversity, respect for work and life balance, an appreciation for career limitations, and participative management in a learning environment.
D) Honesty and integrity, diversity, respect for work and life balance, a sense of purpose and a sense of fun, and participative management in a learning environment.

Answer 69

D

Question 70

83) The type of job design that breaks work down into its simplest form and standardizes tasks is known as \_\_\_\_\_\_\_\_.
A) job simplification
B) job enlargement
C) job rotation
D) horizontal job loading

Answer 70

A

Question 71

84) The classic auto assembly line is based on which job design principle?
A) Job enlargement
B) Job enrichment
C) Job simplification
D) Job rotation

Answer 71

B

Question 72

85) The job \_\_\_\_\_\_\_\_ design strategy adds more tasks to a job to broaden its scope.
A) simplification
B) enlargement
C) enrichment
D) rotation

Answer 72

B

Question 73

86) The advantages of job rotation include ________.
A) the ability to move from one job to others
B) a greater number and variety of tasks
C) additional flexibility for the company
D) All of the above

Answer 73

D

Question 74

87) The type of job design that adds more tasks to a job to broaden its scope is known as \_\_\_\_\_\_\_\_.
A) job rotation
B) job enlargement
C) horizontal job loading
D) Both B and C

Answer 74

D

Question 75

88) The job \_\_\_\_\_\_\_\_ design strategy involves cross-training workers so they can move from one job in the company to others, giving them a greater number and variety of tasks to perform.
A) simplification
B) enlargement
C) enrichment
D) rotation

Answer 75

D

Question 76

90) In job enrichment, \_\_\_\_\_\_\_\_ is the degree to which a job requires a variety of different skills, talents, and activities from the worker.
A) skill variety
B) task identity
C) task significance
D) autonomy

Answer 76

A

Question 77

89) The job \_\_\_\_\_\_\_\_ design strategy involves building motivators into a job by increasing the planning, decision-making, organizing, and controlling functions workers perform.
A) simplification
B) enlargement
C) enrichment
D) rotation

Answer 77

C

Question 78

91) In job enrichment, \_\_\_\_\_\_\_\_ is the degree to which a job gives a worker the freedom, independence, and discretion in planning and performing tasks.
A) task identity
B) task significance
C) autonomy
D) feedback

Answer 78

C

Question 79

92) In job enrichment, \_\_\_\_\_\_\_\_ is the degree to which a job gives the worker direct, timely information about the quality of her/his performance.
A) task identity
B) task significance
C) autonomy
D) feedback

Answer 79

D

Question 80

93) In job enrichment, \_\_\_\_\_\_\_\_ is the degree to which a job substantially influences the lives or work of others (employees or final customers).
A) skill variety
B) task identity
C) task significance
D) autonomy

Answer 80

C

Question 81

94) Type of job design that involves building motivators into a job by increasing the planning, decision-making, organizing, and controlling functions workers perform is ________.
A) job enrichment or vertical job loading
B) job enlargement or vertical job loading
C) job enrichment or horizontal job loading
D) job simplification or lateral job loading

Answer 81

C

Question 82

95) In job enrichment, \_\_\_\_\_\_\_\_ is the degree to which a job allows a worker to complete a whole or identifiable piece of work.
A) skill variety
B) task identity
C) task significance
D) autonomy

Answer 82

B

Question 83

96) An arrangement under which employees work a normal number of hours with options regarding when they start and stop work is \_\_\_\_\_\_\_\_.
A) hoteling
B) flextime
C) job sharing
D) flexspace

Answer 83

B

Question 84

97) Cora arrived at work at 7 a.m. today, and she will get off at 4 p.m. so that she can watch her son's soccer game. Her office mate, Emma, is not a "morning person" and usually arrives at the office at 10 a.m. and gets off at 7 p.m. Their company uses \_\_\_\_\_\_\_\_.
A) job sharing
B) flextime
C) flexplace
D) job enrichment

Answer 84

B

Question 85

98) Arturo, a sales representative for a small manufacturer, works out of an office in his home, using his laptop computer, a fax machine, and a beeper to communicate with the home office, which is located in a city 58 miles away. Arturo actually goes to the main office, on average, once every 10 to 14 days. His company is using which work arrangement?
A) Job sharing
B) Flextime
C) Flexplace
D) Job enrichment

Answer 85

C

Question 86

99) Maria is excited about the new opportunity her company has offered her — she will be able to work from her home office with a company computer and a high-speed Internet connection while she spends time with her newborn son. This is possible because of the implementation of \_\_\_\_\_\_\_\_.
A) telecommuting
B) hoteling
C) job sharing
D) job rotation

Answer 86

A

Question 87

100) A compensation system in which employees’ pay depends on how well they perform their jobs is known as ________.
A) a profit-sharing plan
B) open book management
C) a pay-for-performance compensation system
D) a commission compensation plan

Answer 87

C

Question 88

101) Company culture is the distinctive, unwritten code of conduct that governs the behavior, attitudes, relationships, and style of an organization.

Answer 88

TRUE

Question 89

102) Growth requires changes in a company’s management style, organizational strategy, and methods of operations.

Answer 89

TRUE

Question 90

103) Studies comparing large companies to small ones have found that large companies’ inability to react quickly is a major barrier to their growth.

Answer 90

TRUE

Question 91

104) An assembly line is based on the principle of job simplification.

Answer 91

TRUE

Question 92

105) Job enlargement is based on the premise that the best way to design a job is to break it down into its simplest form and to standardize each task.

Answer 92

FALSE

Question 93

106) The principle of job enlargement is to make a job more varied and to allow employees to perform a more complete unit of work by broadening its scope.

Answer 93

TRUE

Question 94

108) The concept of empowering employees is based on the principle of job enrichment.

Answer 94

TRUE

Question 95

109) Flextime is a work arrangement in which two or more people share the same 40-hour-a-week job.

Answer 95

FALSE