Multiple Choice Business Management Questions by ohn13006

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									                            UNIVERSITY OF SOUTHERN INDIANA
                                    College of Business

Management 441                                                                D.M. Partridge
Wage and Salary Administration                                                  Spring 2011

                               STUDY GUIDE FOR EXAM II

The exam will consist of six (with a choice out of seven) identification terms [30%], 20
multiple choice questions [40%], and three (with a choice out of five) short answer
questions [30%].

Keep in mind that you are responsible for material covered in the text, class lecture and
discussion, and assigned supplemental readings. A good written answer is one that
demonstrates command of the basics; an excellent answer is one that goes beyond the
basics to integrate text, class lecture and discussion, and/or other things such as examples
from supplemental readings or one’s work experiences. Conversely, a deficient answer is
one that fails to demonstrate a command of the basics.

Vocabulary Terms. Students will be asked to explain the meaning (the definition) and
significance (the “so what”) of the term.

Chapter Seven                                        Chapter Ten
pay level                                            merit pay
marginal product                                     lump-sum award
marginal revenue                                     spot award
compensating differentials                           gain-sharing plan
efficiency wage theory                               Scanlon Plan
signaling                                            profit-sharing plan
reservation wage                                     risk sharing
human capital                                        ESOP

Chapter Eight                                        Chapter Eleven
benchmark job                                        halo error
central tendency                                     recency error
dispersion                                           leniency error
pay grade                                            severity error
pay range                                            central tendency error
broadbanding                                         ranking format
                                                     standard rating scale
Chapter Nine                                         BARS
expectancy theory                                    MBO
equity theory
reinforcement theory
total returns
base wage
across-the-board increase
COLA
Multiple Choice Questions. These questions will be based primarily on text material.
Material covered both in the text and in class has a greater likelihood of appearing on the
exam. Here is an example:

     1. In a perfectly competitive market, the supply curve facing the individual firm:
        A) is upward sloping.
        B) is horizontal.
        C) is downward sloping.
        D) does not intersect the demand curve.
        E) is inelastic.

Short Answer Questions.        These questions will be based on the chapter learning
objectives.

After reviewing Chapter 7, students should be able to:

1. Explain the importance of external competitiveness to the pay model.
2. Discuss the factors that influence external competitiveness.
3. Discuss the differences among labor market, product market, and organizational
   factors in determining external competitiveness.
4. Explain the different pay policy positions and the consequences of using each.

After reviewing Chapter 8, students should be able to:

1. Identify the major decisions in establishing externally competitive pay.
2. Discuss the importance of defining the relevant market in a pay survey.
3. Explain the steps involved in designing a pay survey.
4. Describe the key issues involved in interpreting the results of a pay survey.
5. Explain how the market pay line combines the internal structure with external market
   rates.
6. Discuss the use of pay grades and pay ranges and their relationship to internal
   alignment and external competitiveness.
7. Discuss the pros and cons of the market pricing approach to establishing a pay
   structure.

After reviewing Chapter 9, students should be able to:

1. Identify the four kinds of employee behaviors that can assist an organization in
   achieving its strategic objectives.
2. Discuss the relationship of the content theories of motivation to compensation.
3. Discuss the relationship of the process theories of motivation to compensation.
4. Explain why rewards, other than money, can influence employee behavior.
5. Summarize the key research evidence related to the role of compensation to motivate
   the four types of employee behaviors.
6. Describe the key design issues involved in creating an effective pay-for-performance
   program.
After reviewing Chapter 10, students should be able to:

1. Discuss reasons for the popularity of pay-for-performance reward plans.
2. Describe the key differences among the categories – short-term, team-based, long-
   term – of pay-for-performance plans.
3. Identify the advantages and disadvantages of individual incentive plans.
4. Explain why an organization might choose a group rather than an individual incentive
   system.
5. Clarify the criteria involved in determining which type of group incentive plan best
   fits an organization’s objectives.
6. Identify the advantages and disadvantages of group incentive plans.

After reviewing Chapter 11, students should be able to:

1. Summarize the key issues involved in defining and measuring employee
   performance.
2. Discuss the key components of the four strategies to better understand and measure
   performance.
3. Identify the several categories of performance appraisal formats and discuss the
   issues involved in determining which format would be the most appropriate to use.
4. Understand how raters process information and identify the major errors that can
   occur in this process.
5. Outline the key elements to maximize a good outcome in a performance management
   system.
6. Understand the legal issues affecting performance appraisals.
7. Explain the issues involved in designing merit pay guidelines to link pay to
   performance.

								
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