Business Administration
Exam Answer Key
Course Introduction
Business Administration is a multidisciplinary course that introduces students to the core principles and practices of managing organizations efficiently and effectively. The course covers fundamental topics such as management theory, organizational behavior, marketing, accounting, finance, operations, and strategic planning. Students gain practical knowledge about leadership, decision-making, and resource allocation in various business environments. Emphasis is placed on developing analytical, communication, and problem-solving skills necessary for navigating todays dynamic and global business landscape. Through case studies, team projects, and real-world scenarios, students are prepared for diverse roles in both public and private sector organizations.
Recommended Textbook
Human Resource Management 12th Edition by Gary Dessler
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Page 2
Chapter 1: Introduction to Human Resource Management
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Q1) Which of the following best explains why top HR executives are being paid increasingly high salaries?
A) A firm's vision is effective when HR managers play a strategic role in its development.
B) Human capital is linked to increased productivity and customer satisfaction.
C) Transactional activities are more cost-effective when outsourced by HR.
D) Business strategies developed by HR managers are quantifiable.
E) Productivity increases when HR managers implement wage curves.
Answer: B
Q2) In most organizations,human resource managers are categorized as ________,who assist and advise ________ in areas like recruiting,hiring,and compensation.
A) staff managers; line managers
B) line managers; middle managers
C) line managers; staff managers
D) compensation managers; line managers
E) functional managers; staff managers
Answer: A
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Chapter 2: Equal Opportunity and the Law
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Q1) Title VII of the 1964 Civil Rights Act bars discrimination on the part of most employers,including all public or private employers of 15 or more persons.
A)True
B)False
Answer: True
Q2) The 13th Amendment to the U.S.Constitution states,"no person shall be deprived of life,liberty,or property,without due process of the law."
A)True
B)False
Answer: False
Q3) The EEOC was initially established to investigate complaints about ________.
A) job discrimination
B) unfair business practices
C) sexual harassment in schools
D) structural accommodations for disabled people
E) overtime payments for labor union members
Answer: A
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Chapter 3: The Manager's Role in Strategic Human
Resource Management
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Q1) What is the first step of the HR audit process?
A) planning the audit budget
B) attaining top management support
C) drafting an audit team
D) determining the scope of the audit
E) compiling internal and external checklists
Answer: D
Q2) Which of the following terms refers to a set of human resource management policies and practices that promote organizational effectiveness?
A) management by objectives system
B) human resource metric
C) corporate-level strategy
D) high-performance work system
E) strategic human resource map
Answer: D
Q3) Offshoring is limited to lower skilled manufacturing jobs within the garment industry.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Job Analysis
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Q1) Some employers collecting job analysis information provide employees with pocket dictating machines and pagers to record activities at random times of the work day.
A)True
B)False
Q2) The information gathered during a job analysis is primarily used to ensure that firms are in compliance with the EEO,OSHA,and all state governments.
A)True
B)False
Q3) Functional-based job analysis means describing the job in terms of the measurable,observable,behavioral competencies that an employee doing that job must exhibit to do the job well.
A)True
B)False
Q4) Studies suggest that employees are more likely to describe their job duties in the form of simple task statements instead of as ability statements during job analysis interviews.
A)True
B)False
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Chapter 5: Personnel Planning and Recruiting
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Q1) Why do employers turn to private employment agencies for assistance in recruiting? Provide at least four reasons for the use of such employment agencies.
Q2) Which of the following best explains why employers frequently use Internet recruiting methods to find outside candidates for jobs?
A) simplified EEO compliance
B) standardized questionnaires
C) pre-screened applicants
D) cost effectiveness
E) data collection
Q3) Which of the following would be the best option for a business that needs to attract local applicants for hourly jobs?
A) employee referral campaigns
B) on-demand recruiting services
C) college recruiting
D) walk-ins
E) headhunters
Q4) Why is effective recruiting a challenge for many employers? What methods can employers use to effectively recruit a more diverse workforce?
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Chapter 6: Employee Testing and Selection
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Q1) Content validity is based on showing that the scores on the test are related to job performance.
A)True
B)False
Q2) The unreliability of a test may be explained by all of the following EXCEPT
A) poor sampling of question material
B) lack of equivalence between tests
C) inconsistent testing conditions
D) failure to predict job performance
E) lack of internal consistency
Q3) What is a management assessment center? What are some of the most common tasks conducted in management assessment centers?
Q4) Employment screening services are useful in the selection process because they have access to a job applicant's credit history,driving record,and workers' compensation claims history.
A)True
B)False
Q5) What is test validity? How are selection tests validated?
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Chapter 7: Interviewing Candidates
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Q1) Which of the following most likely undermines the argument that George should use a structured situational interview to hire a media planner?
A) The HR department prefers handling job evaluations without the assistance of managers.
B) George and the HR manager lack the time required to participate in a lengthy interview process.
C) George worked as a media planner at another firm and is familiar with the tasks involved in the job.
D) Great Toys has used headhunters in the past to fill executive-level positions at the firm.
E) Previous media planners at Great Toys have been hired through the streamlined interview process.
Q2) What are some common errors that managers make during interviews? How can managers conduct an effective interview?
Q3) Candidates who ask an interviewer questions are viewed negatively by the interviewer in most situations.
A)True
B)False
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Chapter 8: Training and Developing Employees
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Q1) Trainees should be provided adequate practice and be allowed to work at their own pace during a training session in order to ________.
A) screen applicants based on ability
B) transfer skills more easily to the job
C) provide employers with feedback
D) determine appropriate pay scales
E) save the employer time and money
Q2) According to Kurt Lewin,in order for organizational change to occur,which stage must occur first?
A) unfreezing
B) moving
C) refreezing
D) shifting
E) freezing
Q3) The case study method is an on-the job management development technique that presents a manager with a written descriptions of an organizational problem that needs to be diagnosed and solved.
A)True
B)False
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Chapter 9: Performance Management and Appraisal
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Q1) In order to ensure that performance appraisals are effective,Felicia,a line supervisor,should make sure to schedule a feedback session to address each subordinate's performance,progress,and future development plans.
A)True
B)False
Q2) Employee performance appraisals are conducted by all of the following EXCEPT
A) peers
B) competitors
C) supervisors
D) subordinates
E) rating committees
Q3) Graphic rating scales are subject to all of the following problems EXCEPT ________.
A) unclear standards
B) halo effects
C) complexity
D) leniency
E) bias
Q4) Describe the four basic types of appraisal interviews.
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Chapter 10: Coaching, Careers, and Talent Management
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Q1) Retirement preparation,succession planning,job posting,and management counseling are popular career management practices offered by organizations around the world.
A)True
B)False
Q2) In a brief essay,discuss the roles and responsibilities of managers,mentors,and coaches in an employee's career development.
Q3) The barriers for women to advance at work are referred to as the glass ceiling because federal legislation has enabled women to earn an equal number of top-level positions as men.
A)True
B)False
Q4) What is talent management? What tools are available to firms that want to implement a talent management system?
Q5) A focus on competitiveness and motivation suggests that a company should promote on the basis of seniority.
A)True
B)False
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Chapter 11: Establishing Strategic Pay Plans
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Q1) Managers use performance appraisals and incentive pay to maintain ________ equity.
A) internal
B) external
C) individual
D) procedural
E) group
Q2) Which of the following is used to anchor the employer's pay scale?
A) job aid
B) grades
C) job metric
D) benchmark job
E) human resource metric
Q3) According to the court system,the test that distinguishes an independent contractor from an employee is whether or not the firm provides the worker with health insurance benefits.
A)True
B)False
Q4) What are the advantages for employers of claiming that someone doing work for them is an independent contractor rather than an employee?
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Chapter 12: Pay for Performance and Financial Incentives
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Q1) Experts assert that stock options encourage executives to take dangerous risks and are to blame for many corporate scandals.
A)True
B)False
Q2) Common stock is the most common payment form used in gainsharing plans.
A)True
B)False
Q3) In Vroom's theory of motivation,motivation is equal to E * I * V,where E represents ________.
A) existence
B) extrinsic motivation
C) expectancy
D) esteem
E) energy
Q4) In Herzberg's Hygiene-Motivator theory,working conditions are motivator factors,and challenging assignments are hygiene factors.
A)True
B)False
Q5) Explain the advantages and disadvantages of using piecework as a pay plan?
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Chapter 13: Benefits and Services
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Q1) Who contributes funds for workers' compensation benefits?
A) state governments
B) federal government
C) medical providers
D) insurance providers
E) employers
Q2) Since leaves associated with the Family and Medical Leave Act do not require employers to pay salaries,employers are not financially affected.
A)True
B)False
Q3) A primary benefit of 401(k)plans is that payments made by employees into the plan are pretax,so the employee pays no tax on those dollars until after he or she retires or withdraws the money.
A)True
B)False
Q4) Why are family-friendly benefits and flexible benefits increasingly popular? Provide examples of both types of programs.
Q5) What are the key steps for launching a successful EAP program? Should firms offer EAPs? Why or why not?
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Chapter 14: Ethics, Justice, and Fair Treatment in HR Management
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Q1) During a merger and acquisition,it is especially important for managers to be sensitive to employees who are dismissed so that ________.
A) lawsuits stemming from ADA and EEO violations can be avoided
B) remaining employees will remain productive and committed
C) exit interviews will reveal positive details about the firm
D) trade secrets are not stolen by disgruntled employees
E) bumped employees can continue being promoted
Q2) Which of the following terms refers to a firm without any procedures for diminishing bad behavior?
A) fraudulent corporation
B) unethical organization
C) misguided company
D) ethically toxic company
E) corporate toxin
Q3) What is morality? How does an employee's morality relate to making ethical decisions in the workplace?
Q4) How do both firms and individuals benefit from fair treatment in the workplace? When employee discipline is necessary,how can firms ensure that the disciplinary process is fair?
16
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Chapter 15: Labor Relations and Collective Bargaining
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Q1) Employers dealing with an unfair labor practice strike can use all of the following responses EXCEPT ________.
A) shutting down the affected area until the strike ends
B) contracting out work to other operations
C) continuing operations with supervisors filling in
D) hiring temporary replacement workers
E) hiring permanent replacement workers
Q2) Which of the following best defines the preferential shop form of union security?
A) A company can hire nonunion people, but they must then join the union.
B) A company can hire only current union members.
C) Employees who do not belong to the union must still pay dues.
D) A company gives hiring advantages to union members.
E) Union members must maintain membership for the contract period.
Q3) After the passage of the National Recovery Act in 1933,companies developed "sham unions" that were actually company-supported organizations designed to keep legitimate unions out.
A)True
B)False
Q4) What is union security? Explain the five types of union security.
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Chapter 16: Employee Safety and Health
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Q1) Which of the following is the supervisor's primary role in safety?
A) conducting daily safety inspections of the workplace
B) helping workers file claims for job-related injuries
C) alerting top management to OSHA inspections
D) setting health and safety standards for the firm
E) issuing safety citations to OSHA representatives
Q2) An employer can ask applicants whether they have disabilities,but an employer cannot ask applicants if they have the ability to perform a job.
A)True
B)False
Q3) What employers are bound by the Drug-Free Workplace Act?
A) employers who hire workers under 21
B) employers who use medical equipment
C) employers with more than 200 employees
D) employers with federal government contracts
E) all employers
Q4) Woodworking machines,flywheels,and saws cause the most serious workplace injuries.
A)True
B)False
Page 18
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Chapter 17: Managing Global Human Resources
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Q1) Foreign service premiums compensate expatriates for exceptionally hard living and working conditions at certain foreign locations.
A)True
B)False
Q2) What are the HR challenges of conducting business on a global scale? How can firms effectively implement global HR management programs?
Q3) Which of the following best explains why female managers receive fewer foreign assignments than male managers?
A) cultural prejudices against women
B) misperceptions by supervisors
C) lack of interest in overseas work
D) spousal and family reluctance
E) safety concerns
Q4) Explain the meaning of ethnocentrism,polycentrism,and geocentrism and how those values might affect a multinational company's staffing policy.
Q5) What are some reasons for firms bringing expatriates home early? How can firms ease the transition during repatriation?
Q6) Explain the balance sheet approach to formulating expatriate pay.
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Chapter 18: Managing Human Resources in Entrepreneurial
Firms
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Q1) Which of the following is NOT an aspect of the OSHA Sharp program?
A) Employers agree to correct identified hazards.
B) Employers undergo a hazard identification survey.
C) Employers agree to maintain a safety and health management system.
D) Employers receive certification for achieving high levels of safety awareness.
E) Employers receive visits from inspectors after every workers' compensation claim is filed.
Q2) The Wonderlic Personnel Test measures personality traits and behaviors,while the Predictive Index measures general mental ability.
A)True
B)False
Q3) All of the following are recommended activities for small business managers who are in the process of selecting a professional employer organization EXCEPT ________.
A) reviewing the PEO's service agreement closely
B) analyzing how the employee benefits are funded
C) checking the professional rating assigned to the PEO
D) assessing the PEO's staff for experience and depth
E) asking how the PEO will provide its services
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