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HRM in Small to Medium Sized Enterprises MCQ

1. With regard to policy-making, an examination of ‘what works’ should provide solid evidence to inform the formulation of support programmes and regulative measures that serve:

Mainly business-owners

Employees of SMEs

Local communities and supply chains within which SMEs are embedded

All SME stakeholders

Answer

Correct Answer: All SME stakeholders

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2. In SMEs:

Formalised procedures for managing performance reviews, disciplinary processes, or dismissals of workers tend to be rare

The rewards of employment are multidimensional, including the potential payoff from gambling on an innovation, an invention or business prospects, or the opportunity to work in an environment unencumbered by the traditional constraints of bureaucracy

There is considerable variation in undertaking recruitment and selection, training and development, and appraisal and reward

All of the above

Answer

Correct Answer: All of the above

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3. Small firms in general are more likely to be employing:

A higher percentage of employees from a range of groups that have traditionally faced some form of disadvantage in the labour market

More qualified employees

More workers than they need

Older workers than their larger counterparts

Answer

Correct Answer: A higher percentage of employees from a range of groups that have traditionally faced some form of disadvantage in the labour market

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4. . Changes relating to HRM practices are often:

Easily managed in SMEs

Follow typical life cycle models, moving always from informal to formal practices

See transitory phases characterised by the coexistence of formality and informality

None of the above

Answer

Correct Answer: See transitory phases characterised by the coexistence of formality and informality

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5. SMEs face a host of challenges stemming from:

Their external environment

Being under-resourced in terms of human capital

Being under-resourced in terms of financial capital

All of the above

Answer

Correct Answer: All of the above

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6. Despite the dearth of conclusive evidence-based prescriptions:

A formal, strategic approach to managing HR is unsuitable for SMEs

A strategic approach to managing HR is often seen as vital to the success of SMEs

Informality is always detrimental to effective HR management

Robust ICT systems guarantee successful human capital management in SMEs

Answer

Correct Answer: A strategic approach to managing HR is often seen as vital to the success of SMEs

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7. The likelihood of the presence of HR systems in SMEs:

Increases by size

Can be influenced by prevailing industry conditions

Can be influenced by supply chain relationships

All of the above

Answer

Correct Answer: All of the above

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8. Generally, SMEs and smaller firms in particular:

Tend to have well-developed HR systems

Tend to be an homogeneous cohort of businesses

Tend to have well-developed ICT systems

Tend to lack formal HR systems

Answer

Correct Answer: Tend to lack formal HR systems

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9. The current trend towards knowledge-intensive industries means that competitiveness increasingly depends on the management of:

Human capital

Physical capital

Financial capital

Liabilities

Answer

Correct Answer: Human capital

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10. Given the importance of the SME sector for innovation, economic growth and employment generation, its socio-economic role is paramount in:

Transitional economies

Developing economies

Economies throughout the world

Western industrialised economies

Answer

Correct Answer: Economies throughout the world

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