Answer to Question 1
Answer: B
Answer to Question 2
Answer: Managing human resources in small firms is different for four main reasons: size, priorities, informality, and the nature of the entrepreneur. Few small firms have a dedicated human resource management professional. The priorities of a small firm are focused less on HR and more on financing, production, and marketing. HR management activities tend to be more informal in smaller firms. Such informality isn't just due to a lack of expertise and resources; it's also partly a matter of survival. Entrepreneurs must be able to react quickly to changes in competitive conditions. Very small employers (say, with ten employees or less) will probably start with a manual human resource management system. From a practical point of view, this generally means obtaining and organizing a set of standardized personnel forms covering each important aspect of HRrecruitment, selection, training, appraisal, compensation, safety processas well as some means for organizing all this information for each of your employees. As the small business grows, it becomes increasingly unwieldy and uncompetitive to rely on manual HR systems. For a company with 40 or 50 employees or more, the amount of management time devoted to things like attendance history and performance appraisals can multiply into weeks. It is therefore at about this point that most small- to medium-sized firms begin computerizing individual human resource management tasks.
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