Business Administration
Chapter Exam Questions
Course Introduction
Business Administration is a comprehensive course designed to introduce students to the fundamental principles, concepts, and practices that drive organizations in the modern marketplace. Covering key areas such as management, marketing, finance, human resources, and operations, the course provides a broad understanding of how businesses are structured and managed to achieve organizational goals. Students will explore decision-making processes, leadership strategies, ethical considerations, and the impact of globalization on business operations. Through case studies, discussions, and practical projects, learners develop analytical, problem-solving, and communication skills essential for effective business leadership and administration.
Recommended Textbook Fundamentals of Human Resource Management 3rd Edition by Gary Dessler
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Chapter 1: Managing Human Resources Today
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Q1) Which of the following statements best explains why employers are expecting a severe labor shortage in the next few years?
A) More people are retiring than are entering the job market.
B) One-third of single mothers are not in the labor force.
C) People are living longer because of better health care.
D) Increasing taxes have forced businesses to globalize.
Answer: A
Q2) Evidence-based human resource management relies on all of the following types of evidence EXCEPT ________.
A) analytics
B) existing data
C) research studies
D) qualitative opinions
Answer: D
Q3) Human resource management is best defined as the process of ________.
A) controlling and orienting new employees
B) organizing and scheduling work activities for teams
C) outsourcing and offshoring clerical jobs to foreign countries
D) acquiring, training, appraising, and compensating employees
Answer: D
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Chapter 2: Managing Equal Opportunity and Diversity
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Q1) ________ refers to the total employment process that results in a significantly higher percentage of a protected group in the candidate population being rejected for employment, placement, or promotion.
A) Disparate treatment
B) Unintentional discrimination
C) Adverse impact
D) Prima facie
Answer: C
Q2) In which of the following jobs would gender most likely be appropriate to use as a BFOQ?
A) actor in a toothpaste commercial
B) teacher at a private, all-girls school
C) prison guard at a federal penitentiary
D) firefighter in a metropolitan fire department
Answer: A
Q3) The Age Discrimination in Employment Act prohibits the use of age as a BFOQ for any type of employment.
A)True
B)False
Answer: False
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Chapter 3: Human Resource Strategy and Analysis
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Q1) Firms that open facilities overseas are implementing a functional strategy of geographic expansion.
A)True
B)False
Answer: False
Q2) Technical issues are the major reasons for the dismal failure rate of mergers and acquisitions.
A)True
B)False
Answer: False
Q3) Which of the following terms refers to the quantitative measure of a human resource management yardstick such as employee turnover or qualified applicants per position?
A) high-performance work system
B) human resource scorecard
C) human resource metric
D) human resource audit
Answer: C
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Page 5
Chapter 4: Job Analysis and Talent Management
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Q1) What is the underlying theory behind job enrichment?
A) Employee retention rates increase with frequent task changes.
B) Opportunities for training motivate employees to be productive.
C) Intrinsic and extrinsic rewards lead to long-term employee loyalty.
D) Empowered employees are motivated to perform their jobs well.
Q2) A manager with a talent manager perspective will most likely agree with which of the following statements?
A) Mission-critical and average employees should be rewarded and developed equally.
B) Applicant screening and testing is more important than employee training and development.
C) Strategic goals should be considered when staffing, training, and compensating employees.
D) Job analysis should be conducted with questionnaires and observation for better accuracy.
Q3) What is the first step in conducting a job analysis?
A) developing a job description
B) collecting data on job activities
C) deciding how to use the information
D) selecting representative positions to observe
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Chapter 5: Personnel Planning and Recruiting
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Q1) In a brief essay, explain how strategic planning relates to both employment planning and recruiting.
Q2) Which of the following is an advantage for employers that use Internet recruiting?
A) guaranteed compliance with EEOC laws
B) oversight by the U.S. Department of Labor
C) quick responses from many job applicants
D) screening of unqualified applicants
Q3) Why is branding important to effective recruiting? How can a firm develop its brand and improve recruiting efforts? Describe firms that have branded themselves as good places to work.
Q4) What was a result of Valero Energy implementing a labor supply chain to monitor recruitment and hiring?
A) reduced hiring costs
B) increased internal hires
C) reduced need for recruiting yield pyramids
D) increased use of organizational development
Q5) Workforce planning should result in a workforce action plan. What should be included in a workforce action plan?
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Chapter 6: Selecting Employees
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Q1) What is the primary goal of employee selection?
A) achieving person-job fit
B) avoiding negligent hiring
C) developing a diverse workforce
D) maintaining valid test scores
Q2) Which of the following questions should most likely be answered by a utility analysis?
A) Does it pay to use the test?
B) Is the test valid and reliable?
C) Does the test comply with the EEOC?
D) Is the test considered infallible?
Q3) What is talent management? What role do profiles play in the selection process?
Q4) Demonstrating the content validity of a test can be accomplished by showing that ________.
A) tasks performed on the test are general enough to apply to any type of job
B) scores on the test indicate both internal and external reliability
C) higher test scores are statistically equivalent to proven, long-term job success
D) conditions under which the test is administered resemble the work situation
Q5) Explain the five steps in the validation process.
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Chapter 7: Training and Developing Employees
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Questions
Q1) Which form of on-the-job training usually involves having a learner study under the tutelage of a master craftsperson?
A) job instruction training
B) understudy training
C) programmed learning
D) apprenticeship training
Q2) For training to be successful and effective, a trainee must have ________.
A) experience
B) motivation
C) management skills
D) technical expertise
Q3) Any attempt to improve managerial performance by imparting knowledge, changing attitudes, or increasing skills is called ________.
A) on-the-job training
B) management by objectives
C) performance improvement programs
D) management development
Q4) What are the main steps involved in the training process? What are two methods used to assess employee training needs?
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Chapter 8: Performance and Talent Management
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Q1) Firms that use performance management are more likely to keep employee performance on track through the use of ________.
A) rewards
B) punishments
C) job enlargements
D) job postings
Q2) What are the advantages and disadvantages of using upward feedback?
Q3) A legally defensible performance appraisal is most likely based on ________.
A) employee rankings
B) supervisory opinion
C) feedback
D) job analysis
Q4) Studies indicate that the idiosyncratic biases of appraisers account for the largest percentage of observed variances in performance ratings.
A)True
B)False
Q5) Why is it important for a manager to appraise a subordinate's performance? How can a manager handle a subordinate who is defensive when told that his or her performance is poor?
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Chapter 9: Managing Employee Retention, Engagement, and Careers
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Q1) Which of the bases for dismissal is defined as the deliberate and willful violation of the employer's rules and may include stealing and insubordination?
A) unsatisfactory performance
B) whistle blowing
C) misconduct
D) disregard
Q2) Which term refers to barriers to women's progress in the work environment?
A) withdrawal
B) glass ceiling
C) networking
D) prejudice
Q3) What are the primary reasons that top-performing employees leave a firm? What can a firm do to retain these employees?
Q4) The 9-box matrix is used by firms to assess an employee's ________.
A) past performance
B) job skills knowledge
C) communication skills
D) promotional potential
Q5) Describe the four-step coaching process.
Page 11
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Chapter 10: Developing Compensation Plans
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Q1) High-performance work systems typically use competency-based pay because employees ________.
A) participate in training and development workshops
B) receive frequent performance appraisals
C) rotate among different jobs
D) need technical skills
Q2) Which job evaluation method is associated with most comparable worth court cases?
A) market-based approach
B) job classification
C) ranking method
D) point method
Q3) Which of the following equals an employee's pay rate divided by the pay range midpoint for his or her pay grade?
A) pay grade
B) rate range
C) wage curve
D) compa ratio
Q4) Why do employers use pay ranges for each pay grade?
Q5) What is broadbanding? Why and how do firms use broadbanding?
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Chapter 11: Pay for Performance and Employee Benefits
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Q1) Supplemental pay benefits provide employees with time off with pay for jury duty, vacations, funerals, and military responsibilities.
A)True
B)False
Q2) Athena, a sales representative, was terminated from her position at Ross Manufacturing. On Athena's last day of work, she was given a check for $5,000. What did Athena most likely receive from Ross Manufacturing?
A) disability pay
B) annual bonus
C) severance pay
D) unemployment insurance
Q3) Portability makes it easier for employees who leave a firm prior to retirement to
A) switch to defined contribution pension plans
B) take their pension funds with them
C) designate a new pension beneficiary
D) invest their pensions in 401(k) plans
Q4) What is a stock option? What are some of the problems associated with rewarding managers with stock options?
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Chapter 12: Ethics, Employee Relations, and Fair Treatment at Work
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Q1) How can an employer use communication tools to improve employee relations?
Q2) Which term refers to singling out an individual for the purpose of harassment and mistreatment?
A) social assault
B) victimization
C) dismissal
D) bullying
Q3) Distributive justice refers to the manner in which managers conduct their interpersonal dealings with employees.
A)True
B)False
Q4) Which of the following is LEAST relevant to an effective employee suggestion system?
A) focus on key organizational goals
B) simple submission process
C) monetary reward option
D) senior management support
Q5) What legislation exists to ensure that ethical decisions are made in the workplace? What is the role of the HR manager in workplace ethics?
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Chapter 13: Working with Unions and Resolving Disputes
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Q1) Lockouts are viewed by the NLRB as an unfair labor practice in all cases.
A)True
B)False
Q2) According to an Australian research study, employees join unions in response to ________.
A) concerns about worker safety
B) desires for mandatory arbitration
C) perceptions of employer unfairness
D) demands for new technical certification
Q3) Which intervention method listed below is the most definitive of all third-party interventions?
A) fact finding
B) mediation
C) binding arbitration
D) interest arbitration
Q4) Right-to-work laws inhibit union formation by ________.
A) outlawing unions in right-to-work states
B) prohibiting any form of union security
C) making union membership a precondition for employment
D) leaving the question of union security up to each company
Page 15
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Chapter 14: Improving Occupational Safety, Health, and Risk Management
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Q1) OSHA advocates safety incentive programs because they drastically reduce the number of workplace injuries and illnesses.
A)True
B)False
Q2) Which of the following will most likely increase as a result of employees experiencing significant job stress?
A) performance
B) punctuality
C) work quality
D) health care costs
Q3) Accidents occur more frequently in facilities with ________.
A) bright lighting
B) congested work areas
C) strong union support
D) low seasonal layoff rates
Q4) The most serious workplace accidents involve ________.
A) wheelbarrows
B) improper ventilation
C) forklift trucks
D) woodworking machines
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