Business Management
Exam Materials
Course Introduction
Business Management is a comprehensive course that explores the principles and practices essential to effectively run and organize a business. Students will examine core topics such as planning, organizing, leading, and controlling within organizational settings. Emphasis will be placed on strategic decision-making, resource allocation, team dynamics, leadership styles, and adapting to a rapidly changing business environment. The course will also cover fundamental concepts in marketing, finance, operations, and human resources, preparing students to address real-world challenges and develop innovative solutions in a managerial role.
Recommended Textbook
Strategic Compensation in 6th Canada Edition by Richard Long
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13 Chapters
591 Verified Questions
591 Flashcards
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Page 2
Chapter 1: A Road Map to Effective Compensation
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46 Verified Questions
46 Flashcards
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Sample Questions
Q1) There is no one best compensation system that fits all firms.
A)True
B)False
Answer: True
Q2) The compensation system typically refers to which aspect of the reward system?
A) the mix of intrinsic and extrinsic rewards
B) the economic or monetary part
C) the entire spectrum of rewards
D) incentives
Answer: B
Q3) As head of the human resources department for a new company,you have been asked to formulate a compensation strategy.What do you need to determine first?
A) the role that compensation will play in the reward system
B) the correct mix of performance and base pay
C) the total amount of compensation to be provided
D) the role the reward system will play in the compensation strategy
Answer: A
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Chapter 2: A Strategic Framework for Compensation
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45 Verified Questions
45 Flashcards
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Sample Questions
Q1) You have been asked to explain to a manager the notion of structural variables within the context of a strategic framework for compensation.Which variable would you elaborate on?
A) how work is divided into subtasks
B) the market the company serves
C) the level of differentiation in the products and services offered by the company
D) the company's products' life cycle
Answer: A
Q2) Which of the following is classified as a "main" managerial strategy?
A) job design management strategy
B) laissez-faire management strategy
C) transformational management strategy
D) human relations management strategy
Answer: D
Q3) Narrow jobs characterize high involvement systems.
A)True
B)False
Answer: False
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Chapter 3: A Behavioural Framework for Compensation
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46 Verified Questions
46 Flashcards
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Sample Questions
Q1) 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
Q2) An employee survey at a particular company indicated very strong employee job satisfaction levels.Management was elated with the outcome of the survey.What is a likely consequence of having satisfied employees?
A) decreased grievances
B) employees who are more innovative
C) employees who are more cooperative
D) improved interdepartmental integration and communication
Answer: A
Q3) Distributive justice refers to the fairness of the process in giving rewards.
A)True
B)False
Answer: False
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Chapter 4: Components of Compensation Strategy
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Sample Questions
Q1) Which condition make it impractical to use output-related pay?
A) Output is easy to measure.
B) Output is very stable.
C) Output cannot be controlled by the individual employee.
D) Output is easy to price in terms of its value to the employer.
Q2) ABC Inc.is a very small firm.It has decided to pay its employees at rates that are similar to other small firms in its geographic area.What method of pay is ABC Inc.using?
A) job evaluation
B) market pricing
C) competency-based pay
D) geographic-based pay
Q3) Explain why organizations pursuing a high-involvement management strategy may find the notion of offering indirect pay to employees somewhat problematic and at odds with the principles of high involvement?
Q4) Research cited in the textbook suggests that performance pay plans have relatively high discontinuation rates.
A)True
B)False
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6
Chapter 5: Performance Pay Choices
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Sample Questions
Q1) What is a key difference between gain-sharing and organizational performance pay plans?
A) Unlike organizational level plans,gain sharing can be applied to not-for-profit and government organizations.
B) Gain sharing results in more pay for employees.
C) Unions support organizational level pay plans but not gain sharing.
D) There are more free riders in gain-sharing plans.
Q2) Unions generally oppose profit-sharing plans on the basis of potential manipulation of profits by management and the uncertainty associated with profit sharing when compared with base pay.
A)True
B)False
Q3) What is a key advantage of piece rate pay systems?
A) They reduce the need for external control of employees through supervision.
B) They create team work.
C) They link pay to group effort.
D) They encourage "rate busters."
Q4) Explain the difference between goal-sharing and gain-sharing plans.
Q5) Identify and briefly define each of the three types of employee stock plans.
Q6) Identify and briefly explain the nature of individual performance pay plans.
Page 7
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Chapter 6: Formulating the Reward and Compensation Strategy
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Sample Questions
Q1) The demand for carpenters far outstrips the supply in British Columbia.In fact,many of the construction companies are relying on the international market to fill vacancies.Which term best describes the labour market for carpenters in British Columbia?
A) tight
B) loose
C) contingent
D) contractual
Q2) Your organization is facing significant competition,putting pressure on your profit margins.Labour costs account for a significant percentage of your cost structure,and you are concerned with your profitability,moving forward.Furthermore,you are finding that it is extremely difficult to find production workers willing to work for minimum wage in Canada.As a result,you decide to move operations to Vietnam so you can take advantage of lower labour costs.Which type of key constraint has caused you to make this decision?
A) tax
B) financial
C) legislated
D) service market
Q3) 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) Briefly explain the purpose of job evaluation and the nature of "relative worth."
Q2) Which job evaluation method is intended mainly for management and executive jobs?
A) ranking
B) job classification
C) Hay Plan
D) expert method
Q3) Which job evaluation method is like sorting books among a series of carefully labelled shelves in a bookcase?
A) ranking
B) paired comparison
C) classification
D) factor comparison
Q4) Identify and briefly explain the main methods used to obtain the information necessary for effective job evaluation.
Q5) With reference to Ontario pay equity legislation,briefly discuss the job comparison methods that can be used for comparing female and male job classes.
Q6) 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) Two thousand points are distributed between compensable factors,based on the following: education 750 points,time pressure 350 points,customer contact 500 points,and communication skills 400 points.Which step in developing a job evaluation system using the point method recognizes these variations in importance?
A) defining the factors
B) weighting the factors
C) scaling the factors
D) testing the system
Q2) What does a -1 (negative one)correlation coefficient mean?
A) There is a positive relationship between job evaluation points score and pay levels.
B) There is an inverse relationship between job evaluation points score and pay levels.
C) Your regression equation has a very steep upwards slope.
D) There is very little relationship between job evaluation points score and pay levels.
Q3) Job evaluations help to establish internal equity.
A)True
B)False
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10
Chapter 9: Evaluating the Market
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Sample Questions
Q1) The compa-ratio is calculated by taking the average pay of all employees holding a particular job title and then dividing this by the midpoint of the pay range for that job.
A)True
B)False
Q2) Which characteristic is NOT typically considered in the selection of market comparator firms?
A) the type of product or service the firm provides
B) whether the firm has achieved pay equity
C) whether the firm is union or non-union
D) the geographic area over which it operates
Q3) Identify and briefly describe the four main steps in conducting a compensation survey.
Q4) Briefly discuss some of the limitations of compensation surveys.
Q5) Although very costly to use on a significant scale,which method of data collection provides the best quality of information?
A) internet surveys
B) personal interviews
C) telephone interviews
D) questionnaires
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Chapter 10: Evaluating Individuals
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Sample Questions
Q1) Describe the conditions under which recognizing individual contribution levels may be essential.
Q2) Identify the key characteristics and advantages of 360-degree feedback appraisal system.
Q3) Identify and describe the various perceptual errors that can affect appraisal accuracy.
Q4) A major reason why performance appraisals may not work effectively is that they are applied in circumstances that are not appropriate.
A)True
B)False
Q5) There are several critical issues that need to be addressed in designing an effective merit system.What is NOT identified as a critical issue in the textbook?
A) ultimate goal(s)of the merit system
B) process for training evaluators
C) manner in which feedback will be provided
D) process that ensures equal increases across employee job ratings
Q6) Identify and briefly explain the main categories of reasons for doing appraisals.
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Page 12
Chapter 11: Designing Performance Pay Plans
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Sample Questions
Q1) Goal-sharing plans have increased in popularity over the last decade.
A)True
B)False
Q2) An employer issues Johnny 2,000 stock options in recognition of a very good year.These particular options vest after 24 months from the date of issuance with an exercise price of $21.00 per share.After 24 months,these shares trade in the open market at $25.00 per share,and Johnny decides to exercise his 2,000 options,generating a gain of $8,000 (minus transaction fees).Which statement best describes Johnny's tax situation pursuant to these gains?
A) Because these options were a bonus provided by the employer,there are no tax consequences attributable to Johnny.
B) Because these shares are "under water," Johnny's employer is responsible for any taxes on the gains.
C) Johnny will have to pay taxes based on the corporate tax rate.
D) Johnny's gain will be deemed as income,but taxes will be paid at the capital gains rate.
Q3) Identify how design issues for stock plans differ for private corporations.
Q4) Identify the fundamental ways in which gain-sharing and goal-sharing plans differ.
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Page 13
Chapter 12: Designing Indirect Pay Plans
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Sample Questions
Q1) Which plan allows you to tailor your benefit plan to suit your needs and even trade off benefits that are not important to you?
A) health care spending accounts
B) simplified flex plan
C) flexible benefits plan
D) fixed benefits plan
Q2) As a result of a recent human resource audit,it was determined that a particular company has an "underfund liability" associated with its retirement plan,requiring an immediate injection of cash.What type of pension plan or retirement plan is this company likely using?
A) hybrid flexible plan
B) registered retirement savings plan (RRSP)
C) mandatory retirement plan
D) defined benefit plan
Q3) What is the first issue in developing an effective benefit system?
A) determining the tax implications
B) examining the compensation cost structure of the organization
C) establishing the administration process
D) determining the role of indirect pay in compensation strategy
Q4) Describe how a health care spending account works.
Page 14
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Chapter 13: Activating and Maintaining an Effective Compensation System
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Sample Questions
Q1) Which statement best describes outsourcing among Canadian firms?
A) Outsourcing of HR functions is on the decline.
B) Outsourcing of HR functions is increasingly used.
C) Larger firms outsource their HR functions more than smaller firms.
D) Outsourcing does not offer any benefits
Q2) What is the logical time for the first evaluation of the compensation system?
A) immediately after implementation
B) six months after implementation
C) one year after implementation
D) two years after implementation
Q3) What is NOT a key aspect in implementing the compensation system?
A) putting infrastructure in place
B) testing the system
C) conducting job evaluations
D) conducting training
Q4) Identify the tasks involved in preparing to implement a compensation system.
Q5) Because of complexity and resistance by stakeholders,computers have taken on a secondary role in communicating compensation policies and procedures
A)True
B)False
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