Business Administration
Final Test Solutions
Course Introduction
Business Administration is a multidisciplinary field that explores the principles and practices essential for managing organizations effectively. This course covers core topics such as management, marketing, finance, human resources, operations, and organizational behavior. Students will develop analytical, leadership, and decision-making skills required to solve complex business problems and drive organizational success. Through case studies, projects, and practical exercises, learners gain a comprehensive understanding of both the theoretical and practical aspects of running a business in today's dynamic and globalized environment.
Recommended Textbook
Strategic Compensation in 4th Canada Edition by Richard Long
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13 Chapters
585 Verified Questions
585 Flashcards
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Page 2
Chapter 1: A Road Map to Effective Communication
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45 Verified Questions
45 Flashcards
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Sample Questions
Q1) Which of the following statements is most accurate regarding the reward strategy?
A) The reward system is the blueprint for creating the reward strategy.
B) Intrinsic awards alone will not motivate the needed behaviour.
C) Determining the mix of rewards to be provided is an easy process.
D) Various combinations of intrinsic and extrinsic rewards need to be considered for developing the optimal reward strategy.
Answer: D
Q2) Your company is experiencing high turn over and poor work quality. Which of the following actions will increase intrinsic rewards?
A) Providing a pension option and offering a retirement planning service.
B) Introducing pay-for-performance plans.
C) Trying to enrich the jobs to make them more interesting.
D) Offering dental and medical coverage.
Answer: C
Q3) There is no single best compensation system that applies to all firms.
A)True
B)False
Answer: True
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Chapter 2: A Strategic Framework for Compensation
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Sample Questions
Q1) As a new business owner you have decided to take a contingency approach to organizational design.What must first be considered in order to identify the most appropriate structure for your company?
A) structural variables
B) managerial strategy
C) financial variables
D) contextual variables
Answer: D
Q2) The three main managerial strategies described in the text are: the classical style,the human relations style,and the high involvement style.
A)True
B)False
Answer: True
Q3) Which of the following dimensions is not a contextual variable?
A) control system
B) technology
C) work force
D) organization size
Answer: A
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Page 4
Chapter 3: A Behavioural Framework for Compensation
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Q1) The three key employee behaviours that may be desired by employers are membership,task,and citizenship.
A)True
B)False
Answer: True
Q2) Firms practising human relations management will be primarily concerned with which employee behaviours?
A) All three behaviours are important
B) Task
C) Membership and organizational citizenship
D) Membership and task
Answer: D
Q3) The first step in designing a reward system that will produce the behaviour the organization needs is to develop rewards that address salient employee needs.
A)True
B)False
Answer: False
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Chapter 4: Components of Compensation Strategy
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Sample Questions
Q1) What compensation option do unions continue to bargain strongly for at the negotiation table?
A) Comprehensive benefits
B) Performance pay
C) Mandatory benefits
D) Union dues
Q2) A disadvantage of indirect pay is that benefits receive less favourable tax treatment than direct pay.
A)True
B)False
Q3) Briefly discuss the advantages and disadvantages of using indirect pay.
Q4) One major advantage of job evaluation programs is that they require the use of comprehensive job descriptions.
A)True
B)False
Q5) An advantage of performance pay is that workers are paid less this way.
A)True
B)False
Q6) Identify and briefly describe the issues in developing a skill-based pay system.
Q7) Briefly explain the three methods for establishing base pay.
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Chapter 5: Performance Pay Choices
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Sample Questions
Q1) Which of the following statements best describes a merit raise?
A) A promise of future payments
B) A permanent pay raise that recognizes past performance
C) An increase that is tax exempt
D) A lump sum reward for past performance that does not increase base pay
Q2) To qualify as having an employee profit sharing plan a firm must have a formal program in which payments based on profits are made to a wide cross section of employees.
A)True
B)False
Q3) Your instructor has offered class members bonus marks for volunteering as campus tour guides. This is referred to as which type of performance pay plan?
A) Goal sharing
B) Merit
C) Special-purpose incentive
D) Commission
Q4) Discuss the nature of suggestion systems and some of the problems you need to be aware of.
Q5) Identify and briefly explain the nature of individual performance pay plans.
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Chapter 6: Formulating the Reward and Compensation Strategy
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Sample Questions
Q1) Utility Analysis is used to determine which benefits will be included in the compensation system.
A)True
B)False
Q2) The text points out four key understandings in the process of developing a compensation strategy: understanding your organizational context;understanding your people;understanding your compensation options;understanding your compensation constraints.
A)True
B)False
Q3) What two main aspects need to be considered to help you determine what you want the executive compensation system to accomplish?
A) A symbolic aspect and a market aspect
B) A behavioural aspect and a market aspect
C) A behavioural aspect and a symbolic aspect
D) A pay equity aspect and a market aspect
Q4) Briefly describe the five main steps in the formulation of compensation strategy.
Q5) Briefly summarize the legislative framework that compensation must comply with.
Page 8
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Chapter 7: Evaluating Jobs: the Job Evaluation Process
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Sample Questions
Q1) Which of the following would be an example of gender bias?
A) using simpler terms to describe female dominated job
B) not reporting job changes as they occur
C) using technical jargon to describe jobs
D) analyzing the job holder instead of the job
Q2) What key procedures need to be worked out to ensure the job evaluation process is effectively conducted and managed?
Q3) Which of the following is not a key element needed for a useful job description?
A) a brief statement of job objectives
B) the range of pay
C) a list of the major job duties
D) the conditions under which the work is performed
Q4) This term is used to describe key characteristics of jobs that are valued by organizations and differentiate jobs from one another.
A) core job dimensions
B) job facts
C) compensable factors
D) benchmarks
Q5) What should a job description contain if it is to be useful for job evaluation?
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Chapter 8: Evaluating Jobs: the Point Method of Job Evaluation
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Sample Questions
Q1) What determines the relative value of a job and,thus,its position on the hierarchy of jobs using the point method of job evaluation?
A) market comparators
B) regression analysis
C) base pay structure
D) point scores of the jobs
Q2) Which of the following would be an example of job outputs for a painter?
A) manual dexterity and the ability to mix paint
B) dealing with paint fumes and heights
C) responsible for neatly painted walls and ceilings
D) required to climb ladders and exercise continuous repetitive movement
Q3) This term is used to describe the dollar value of the difference between the maximum and the minimum of the pay range for each pay grade.
A) intergrade differentials
B) grade overlaps
C) range spread
D) quartiles
Q4) What criteria is used to determine movement through the pay range?
Page 10
Q5) Discuss the advantages and disadvantages of the point method of job evaluation.
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Chapter 9: Evaluating the Market
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Sample Questions
Q1) Compensation surveys reflect the value placed on jobs by the labour market but this does not always mean that the market values jobs fairly.
A)True
B)False
Q2) In regard to compensation market data,the key thing an employer needs to know is what its competitors are paying their employees.
A)True
B)False
Q3) Identify and briefly describe the four main steps in conducting a compensation survey.
Q4) In analyzing compensation survey data,a key element is the mean base pay.
A)True
B)False
Q5) What determines the geographic scope of the market for occupational groups?
A) the level of job specialization
B) the size of the firm
C) whether the firm is union or non-union
D) whether the firm is in the private or public sector
Q6) Briefly discuss some of the limitations of compensation surveys.
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Chapter 10: Evaluating Individuals
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Sample Questions
Q1) You have designed your merit pay grid so that employees with a "satisfactory" performance rating receive no merit increase if they are in the third and fourth quartiles,and a 3 or 4 percent merit increase if they are in the first or second quartile. What is the logic behind your decision?
A) You believe employees paid above the midpoint have already been rewarded for "satisfactory" work.
B) You believe this practice ensures procedural justice.
C) You believe it is important to maintain a compa-ratio of less than 1.
D) You believe pay raises should constitute a "just noticeable difference".
Q2) Which of the following methods has appraisers rate the frequency of occurrence of different employee behaviours?
A) graphic rating scale
B) management by objectives
C) behaviourally anchored rating scales
D) behavioural observation scales
Q3) Define and describe the key elements of performance management.
Q4) Identify and describe the various perceptual errors that can affect appraisal accuracy.
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Page 12
Chapter 11: Designing Performance Pay Plans
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Sample Questions
Q1) Which of the following is not a valid criteria used for setting goals?
A) identified by employees
B) encompass the full range of desired behaviour
C) important to the organization.
D) controllable by the work group
Q2) Which of the following plans motivates employees to find ways to reduce the costs of raw materials or any other purchased inputs?
A) Rucker
B) Scanlon
C) Improshare
D) combination profit-sharing
Q3) Discuss the key issues in designing a nonmonetary reward plan.
Q4) Which of the following gain-sharing plan measures is a example of a "modifier"?
A) cost of processing each customer order
B) results of customer satisfaction surveys
C) retention of customers
D) number of suggestions submitted
Q5) Briefly describe the Scanlon Plan.
Q6) Identify and briefly comment on the key issues in designing profit-sharing plans.
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Chapter 12: Designing Indirect Pay Plans
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Sample Questions
Q1) Mandatory benefits are those components of indirect pay that the employer makes compulsory for all employees.
A)True
B)False
Q2) Which of the following benefits are increasing most rapidly in cost?
A) formal pension plans and supplemental medical
B) supplemental employment insurance and outplacement services
C) parental and educational leaves
D) tuition reimbursements and mortgage subsidies
Q3) Which of the following aspects of the compensation system is considered to be the most technically complex?
A) determining the base pay structure
B) designing the job evaluation system
C) establishing external equity
D) designing the benefits system
Q4) Defined benefits plans are intended to provide guaranteed income from retirement to death.
A)True B)False
Q5) Discuss the pros and cons of flexible vs.fixed benefits plans.
Page 14
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Chapter 13: Activating and Maintaining an Effective Compensation System
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Sample Questions
Q1) What budget approach are you using by applying the compensation rates to employees,factoring in probable merit and seniority increases as well as expected turnover?
A) zero based
B) top-down
C) bottom-up
D) break-even
Q2) Which of the following aspects is not considered part of documenting the compensation system?
A) briefing managers on compensation issues
B) preparing job evaluation manuals
C) negotiating and drawing up service provider contracts
D) recording assigned responsibilities for carrying out various compensation processes
Q3) Which of the following situations may account for higher-than-budgeted compensation expenditures?
A) initial dip
B) spiral career paths
C) job evaluation system
D) excessive accumulation
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