Business Administration
Chapter 2 - Study Guide
1. Why is retaining employees just as important as finance and technology concerns within an
organization?
a. Well trained employees will become successful resources within an organization.
b. This will lower turnover rates, improve employee job satisfaction, and reduce
costs.
2. Define Human Resource Management
a. The process of acquiring, training, appraising, and compensating employees, and
of attending to their labor relations, health and safety, and fairness concerns.
3. Explain the difference between the economic and socioeconomic model of social responsibility.
a. Economic: Society will benefit most when business is left alone Primary
responsibility is to make a profit for shareholders. Social responsibility is the
problem of the government, environmental groups, and charities.
b. Social: Business should be concerned with impact of its decisions on society.
Firms take pride in social responsibility activities. It is in the best interest of
the firm to take the initiative in social responsibility matters.
4. What steps must be followed to encourage ethical behavior within an organization?
a. External (governmental legislation and regulation)
b. Internal: Code of ethics for all employees, management direction, employee
training, ethics officer.
5. The change in workplace dynamic and the increase of women in the workplace has lead to an
increase in sexual harassment cases.
6. How can a HR manager measure the effectiveness of a total reward program?
a. Determine if employee job satisfaction has increased and if there is a decrease
in employee turnover.
7. What is a total reward program? List benefits that would be included in a total reward program.
a. In its simplest form, compensation packages that included both traditional and
non-traditional benefits. A program that provides value-added programs, support
organizational initiatives, and offer professional development opportunities.
b. Traditional: medical insurance, dental insurance, life insurance
c. Non-traditional: global benefits, company products, benefits in line with
philanthropic goals, employee-use room, on-site daycare, on-site gym, free food,
etc.
8. What are the limitations of a HR manager?
a. Lack of top management support, improper implementation, inadequate
development programs, inadequate information.
9. What are American consumers spending more money on, restaurant meals or grocery purchases?
a. Restaurant Meals
10. Explain FMLA. What does it do and who does it protect?
a. Family Medical Leave Act
b. Protects you from losing your job if you have to take a leave of absence to care
for yourself, your child, spouse, or parent for a 12 week period. This is an unpaid
leave of absence.
11. Define social responsibility.
a. The recognition that business activities have an impact on society and the
consideration of that impact in business decision-making.
12. Define what it means to be a whistle-blower.
a. Informing the press or government officials about unethical practices within
one’s organization.
13. Why will businesses continue to be shaped by the society in which it functions?
a. Social responsibility costs money but is also good business. How social
responsible a firm acts may affect the decisions of customers to do or continue
to do business with the firm.
14. Ethical problems are only a U.S. issue. True or False
a. False
15. What needs to be considered when creating a total reward program?
a. Assess employee needs, possibly through a survey. Review of employee
demographics. Know your employees.
16. Why is it important for businesses to be responsive to stakeholder interests?
a. Stakeholders play a key role to the success of a business.
17. What issues fall under the umbrella of Human Resources?
a. Benefits, hiring, performance management, etc.
18. Define business ethics.
a. The application of moral standards to business situations.
19. Explain what a code of ethics is.
a. A written guide to acceptable and ethical behavior as defined by an organization;
it outlines policies, standards, and punishments for violations
20. List, explain, and provide examples of the three factors that influence ethical decision making.
a. Individual factors: individual knowledge of an issue, personal values, personal
goals
b. Social factors: cultural norms, coworkers, significant others, use of the
Internet
c. Opportunity: presence of opportunity, ethical codes, enforcement
21. What does it mean to offer a flexible schedule?
a. Allows employees to start work early or late according to family needs as well as
offering a work-from-home option.
22. How have employers responded to the changing workforce?
a. Rotating employee tasks, improving health and safety within the workplace,
offering work-from-home options.
23. In today’s world as a consumer, what do you expect from businesses? What level of quality and price
for products do you expect a business to create?
a. Be safe, reliable, and reasonably priced
24. How can advertising present ethical questions?
a. Advertising for underage drinking would be an example that you reviewed in
class.