Business Management
Midterm Exam
Course Introduction
Business Management is a comprehensive course designed to introduce students to the principles and practices essential for effectively running and overseeing organizations. The course covers key topics such as organizational structure, leadership, strategic planning, operations, human resource management, marketing, and financial decision-making. Through case studies, real-world examples, and interactive activities, students gain practical skills in problem-solving, decision-making, and teamwork. By the end of the course, students will be equipped with the foundational knowledge needed to manage resources efficiently, adapt to changing business environments, and drive organizational success.
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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Sample Questions
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) Celeste spends most of her time at work establishing goals for her staff of fifty employees and developing procedures for various tasks.In which function of the management process does Celeste spend most of her time?
A) leading
B) organizing
C) motivating
D) planning
E) staffing
Answer: D
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Page 3
Chapter 2: Equal Opportunity and the Law
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Q1) Which of the following,if true,best supports Western Airlines' defense?
A) At Western Airlines, turnover is high among minority employees working as pilots and flight attendants.
B) Recent experiences with college recruiting have led Western Airlines to increase the percentage of its minority pilots.
C) Job capability as a Western Airlines pilot depends most heavily on age, gender, and previous job experiences.
D) The total number of hours spent flying a commercial airline is a valid predictor of performance for most Western Airlines pilots.
E) Western Airlines bases its selection tests and hiring practices on industry guidelines for commercial pilots.
Answer: D
Q2) According to the ADA,firms must employ all disabled individuals who apply for positions and provide them with job training when necessary.
A)True
B)False
Answer: False
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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 in the strategic management process?
A) formulating a strategy
B) defining the current business
C) translating a mission into goals
D) performing internal and external audits
E) implementing an environmental scan
Answer: B
Q2) A course of action that a firm can pursue to achieve its strategic aims is known as a ________.
A) vision
B) goal
C) strategy
D) tactic
E) mission
Answer: C
Q3) A vertical integration strategy means that a firm will expand by adding new product lines.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Job Analysis
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Q1) Which of the following terms refers to the procedure used to determine the duties associated with job positions and the characteristics of the people to hire for those positions?
A) job description
B) job specification
C) job analysis
D) job context
E) job standard
Q2) Competencies are observable and measurable behaviors,and organizations are required to define competencies based on quantifiable standards developed by the Department of Labor.
A)True
B)False
Q3) O*NET has become an increasingly popular Web tool for creating and distributing position analysis questionnaires to employees who are located throughout the world.
A)True
B)False
Q4) In a brief essay,compare and contrast job descriptions and job specifications.
Q5) What is the difference between job enlargement,job rotation,and job enrichment?
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Chapter 5: Personnel Planning and Recruiting
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Q1) What is the purpose of an applicant tracking system?
A) sorting resumes based on an applicant's years of work experience
B) generating advertisements for attracting and gathering applicants
C) assisting employers in attracting screening, and managing applicants
D) providing employers and applicants with an interactive Web site
E) assisting recruiters with locating internal applicants for key positions
Q2) Firms can reduce potential problems associated with rehiring former employees by crediting them with the years of service they had accumulated before they left.
A)True
B)False
Q3) Access matrices are used to define the rights of users to various kinds of access for each element in a personnel database.
A)True
B)False
Q4) According to most employment laws,employees of temporary staffing firms that are working in an employer's workplace are considered workers of both the temporary agency and the employer.
A)True
B)False
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Chapter 6: Employee Testing and Selection
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Q1) With the work sampling technique,applicants are ________.
A) asked to submit examples of projects they have completed for other employers
B) tested on their ability to perform several tasks crucial to performing the job of interest
C) tested on their ability to perform a range of tasks related to several positions in a firm
D) asked to respond to questions about how they would perform various tasks
E) given video-based situational interviews to assess their critical thinking skills
Q2) What are the recommended guidelines that employers should follow when managing a testing program?
Q3) Why are tests and other screening tools an important aspect of employee selection? What rights do test takers have during the testing process?
Q4) How can employers protect themselves against negligent hiring? How can employers protect themselves against defamation?
Q5) EEO laws require nondiscriminatory selection procedures for protected groups.
A)True
B)False
Q6) What is test validity? How are selection tests validated?
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Chapter 7: Interviewing Candidates
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Q1) How can a firm protect itself from charges of discrimination in its interview process? What is the role of testers in employment discrimination?
Q2) In a brief essay,discuss the four types of questions that are frequently used in structured situational interviews.Explain the purpose of each question type and provide an example of each.
Q3) Nonstructured interviews are preferred to directive interviews because they are more reliable and valid.
A)True
B)False
Q4) A series of job-relevant questions with predetermined answers that interviewers ask of all applicants for a job is known as a ________.
A) directive behavioral interview
B) nondirective situational interview
C) structured behavioral interview
D) nondirective behavioral interview
E) structured situational interview
Q5) Why should both interviewers and interviewees prepare for an interview? Explain the benefits for each.
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Chapter 8: Training and Developing Employees
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Q1) Travel agents at Apollo Travel Services follow a computer program that displays question prompts and dialogue boxes with travel policies as the agent enters information about the consumer's travel plans.This is an example of a(n)________.
A) audiovisual-based training method
B) electronic performance support system
C) intelligent tutoring system
D) computer-managed instruction system
E) computer-based training module
Q2) Which of the following terms refers to formal methods for testing the effectiveness of a training program?
A) electronic performance monitoring
B) factor comparison method
C) controlled experimentation
D) performance management
E) scientific management
Q3) Research suggests that most firms evaluate their training programs by measuring the reactions of participants.
A)True
B)False
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Page 10
Chapter 9: Performance Management and Appraisal
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Q1) All of the following are reasons for appraising an employee's performance EXCEPT
A) assisting with career planning
B) correcting any work-related deficiencies
C) creating an organizational strategy map
D) determining appropriate salary and bonuses
E) making decisions about promotions
Q2) Which of the following is LEAST likely to cause a supervisor's performance appraisal of a subordinate to be biased?
A) purpose of the appraisal
B) personality of the supervisor
C) location and time of the appraisal
D) personal characteristics of the subordinate
E) relationship between supervisor and subordinate
Q3) What are the guidelines that supervisors should follow to hold effective appraisals and minimize problems like bias and halo effects? How can rating committees improve the fairness of the appraisal process?
Q4) In a brief essay,describe the forced distribution method.What are the advantages and disadvantages of the forced distribution method?
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Chapter 10: Coaching, Careers, and Talent Management
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Q1) While career development ultimately should result in an employee who is more employable,such programs often result in increased employee commitment.
A)True
B)False
Q2) All of the following are typical activities of career coaches EXCEPT helping employees to ________.
A) make 1-5 year career plans
B) identify development needs
C) gain professional development
D) obtain networking opportunities
E) negotiate with firms for higher salaries
Q3) All of the following are characteristics of effective mentors EXCEPT ________.
A) developing a trustworthy relationship
B) guiding proteges into important projects
C) investing time into the relationship
D) focusing on the protege's daily tasks
E) setting high standards for proteges
Q4) What is reality shock? What efforts can be taken by an employer to prevent reality shock?
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Chapter 11: Establishing Strategic Pay Plans
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Q1) An advantage of the job classification method is that the objective nature of the system makes it easy to write the class and grade descriptions.
A)True
B)False
Q2) Which of the following,if true,supports the argument that Homelife executives should primarily address internal equity issues when developing a new compensation plan?
A) Most of Homelife's former employees are now employed at competitor's stores in similar positions.
B) Homelife employees receive annual performance appraisals at which time they set career goals.
C) Salary surveys indicate dissatisfaction among the Homelife managers in different departments.
D) Online pay sites show the pay range for sales associates at both Homelife and its competitors.
E) Homelife pays its sales managers commissions in addition to base salaries and health benefits.
Q3) What are the five main elements of a competency-based pay plan?
Q4) Explain the equity theory of motivation.What are the four forms of equity?
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Page 13
Chapter 12: Pay for Performance and Financial Incentives
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Q1) An effective incentive plan involves gathering evidence and evaluating the long-term effects on employee performance.
A)True
B)False
Q2) All of the following questions are relevant to developing an effective sales compensation plan EXCEPT ________.
A) What percentage of Wilson's sales force achieves its sales quota each month?
B) How much time does each Wilson salesperson spend with qualified prospects?
C) What are the motivation and skill levels of Wilson sales team members?
D) What is the average annual bonus received by Wilson's CEO?
E) What is Wilson's desired profit for each car sale?
Q3) Craig is a line manager at a paper supply company.All of the following are methods that Craig should most likely implement to motivate his subordinates EXCEPT
A) creating specific, challenging goals
B) recognizing an employee's contribution
C) encouraging workers to earn overtime pay
D) gaining agreement on goals with employees
E) using positive reinforcement on a daily basis
Q4) Explain the advantages of employee stock ownership plans.
Page 14
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Chapter 13: Benefits and Services
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Q1) Which of the following is a popular workers' compensation cost-control measure that involves coordinating the medical care and health insurance coverage for each injured employee?
A) nurse management
B) case management
C) health maintenance
D) supplemental payments
E) medical rehabilitation
Q2) The more flexible a work schedule,the greater the effectiveness of the program.
A)True
B)False
Q3) Which of the following terms refers to a one-time payment some employers provide when terminating an employee?
A) merit pay
B) annual bonus
C) severance pay
D) performance pay
E) competency-based pay
Q4) What are vested funds? What is the difference between cliff vesting and graded vesting?
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Chapter 14: Ethics, Justice, and Fair Treatment in HR Management
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Q1) What is morality? How does an employee's morality relate to making ethical decisions in the workplace?
Q2) In which organizational document are an organization's rules and regulations usually stated?
A) employee handbook
B) code of ethics
C) sexual harassment training guide
D) incorporation papers
E) human resource policy manual
Q3) Which of the following involves using fingerprints or iris scans to identify employees?
A) electronic performance monitoring system
B) electronic eavesdropping system
C) location monitoring system
D) digital dashboard
E) biometrics
Q4) Procedural justice refers to the fairness of the process by which a decision is made.
A)True
B)False
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Chapter 15: Labor Relations and Collective Bargaining
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Q1) What is union security? Explain the five types of union security.
Q2) Managers from Ford and representatives from United Auto Workers are in the first stage of collective bargaining over benefits and wages.Which of the following is most likely occurring?
A) Subcommittes are forming to create alternatives.
B) Each side is trading some of its demands.
C) Each side is checking terms with superiors.
D) Each side is presenting its demands.
E) Both parties are signing an agreement.
Q3) What is the first step in the union drive process?
A) obtaining authorization cards from employees
B) making initial contact with employees
C) holding an initial organization hearing
D) campaigning for employee votes
E) holding a consent election
Q4) Decertification campaigns to end union representation are in principle very similar to the initial certification campaign that brought the union into power.
A)True
B)False
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Chapter 16: Employee Safety and Health
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Q1) When setting up a basic security program,what are the primary issues that you need to address? Discuss the role of natural,mechanical,and organizational security in your security program.
Q2) What types of unsafe conditions are the primary focus of OSHA standards? How does OSHA enforce its standards?
Q3) Toyota uses cadmium pigments in the paint for its cars.At the Toyota plant,air samples are frequently taken as a precautionary measure to ensure that employees are not exposed to levels outside the OSHA safety standards.Which of the following best describes this situation?
A) job simulation tests
B) unsafe conditions
C) industrial hygiene
D) occupational illness
E) screening
Q4) During the evaluation stage of industrial hygiene,a facility's health and safety officers interview employees and conduct a facility survey.
A)True
B)False
Q5) What steps are involved in a basic industrial hygiene program?
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Chapter 17: Managing Global Human Resources
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Q1) Call centers that service customers for firms like software and computer hardware companies are increasingly using employees in India to staff the telephones.This is an example of ________.
A) outsourcing
B) offshoring
C) deportment
D) downsizing
E) international staffing
Q2) Daniel is a manager for Siemens China,and it is time to conduct performance appraisals.During the appraisals,it would be most effective for Daniel to ________.
A) focus on building manager-employee relationships
B) link performance with employee bonuses
C) make personal comments to the employee
D) focus on quantifiable, objective results
E) post appraisal results for each team
Q3) In a brief essay,discuss the economic and labor relations factors that are unique to Europe.
Q4) What are the advantages and disadvantages of using expatriates for staffing foreign subsidiaries?
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Chapter 18: Managing Human Resources in Entrepreneurial
Firms
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Q1) The Wonderlic Personnel Test is especially appropriate for small businesses because it is ________.
A) useful for training new hires
B) equivalent to the GRE test
C) developed by the EEOC
D) lengthy and thorough
E) easy to administer
Q2) According to the Small Business Administration,paperwork,regulations,and tax compliance for small firms cost about $200 per employee per year.
A)True
B)False
Q3) The Predictive Index is used by small businesses to measure all of the following EXCEPT ________.
A) dominance
B) patience
C) extroversion
D) reading level
E) blame avoidance
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