📘 Module 1: Business Management

Question 1

What is Span of Control?

Answer 1

It refers to the number of subordinates a manager can effectively supervise.

Question 2

What does Chain of Command ensure in an organization?

Answer 2

It ensures that instructions are passed down through a clear hierarchy of authority.

Question 3

What is Bureaucracy in an organizational context?

Answer 3

A formal system with defined roles, rules, and procedures to manage large organizations.

Question 4

Name 3 common organizational structures.

Answer 4

Functional, Divisional, and Matrix.

Question 5

What do organizational charts visually represent?

Answer 5

The structure of authority and reporting relationships within an organization.

Question 6

What’s the main difference between a group and a team?

Answer 6

A group works individually toward personal goals; a team collaborates for a common purpose.

Question 7

Name two types of teams used in organizations.

Answer 7

Cross-functional teams and Self-directed teams.

Question 8

Why is team building important?

Answer 8

It improves communication, trust, and collaboration among team members.

Question 9

What are the three layers of organizational culture?

Answer 9

Artifacts, espoused values, and basic underlying assumptions.

Question 10

How is organizational climate different from culture?

Answer 10

Climate is how employees perceive the work environment; culture is the shared beliefs and values.

Question 11

Name the four types of organizational culture (per Handy’s model).

Answer 11

Power, Role, Task, and Person cultures.

Question 12

What happens in the Start-Up Stage of an organization?

Answer 12

Focus is on establishing the business model and securing resources.

Question 13

What is a key HR focus in the Growth Stage?

Answer 13

Talent acquisition and leadership development.

Question 14

What risks exist in the Decline Stage?

Answer 14

Loss of innovation, employee disengagement, and possible layoffs.

Question 15

Define a Vision Statement.

Answer 15

A long-term aspirational view of what the organization wants to achieve.

Question 16

What is the purpose of a Mission Statement?

Answer 16

It explains how the organization will achieve its vision.

Question 17

What do Values represent in an organization?

Answer 17

The principles and standards guiding employee behavior and decision-making.

Question 18

What are the four steps of strategic management?

Answer 18

Environmental scanning, strategy formulation, strategy implementation, and evaluation.

Question 19

Why is environmental scanning important?

Answer 19

It helps identify external opportunities and threats that could impact the business.

Question 20

What is a key role of HR in change management?

Answer 20

Facilitating communication, training, and employee support to ease transitions.

Question 21

Name one model used in change management.

Answer 21

Lewin’s Change Model (Unfreeze → Change → Refreeze).

Question 22

Why is resistance to change common in organizations?

Answer 22

Due to fear of the unknown, loss of control, or comfort with the status quo.

Question 23

What are the 4 main roles of HR according to Dave Ulrich?

Answer 23

Strategic Partner, Administrative Expert, Employee Champion, Change Agent.

Question 24

What does it mean to be a Strategic Partner in HR?

Answer 24

It means aligning HR strategies with business goals to drive performance.

Question 25

As an Administrative Expert, what should HR focus on?

Answer 25

Enhancing efficiency through streamlined HR processes and systems.

Question 26

How does HR act as an Employee Advocate?

Answer 26

By listening to employee concerns, improving engagement, and ensuring fairness.

Question 27

What’s the HR responsibility as a Change Agent?

Answer 27

Facilitating and managing organizational change through leadership and communication.

Question 28

What are Service Centers in HR?

Answer 28

Centralized units that handle employee transactions (e.g., payroll, benefits).

Question 29

What does Embedded HR refer to?

Answer 29

HR professionals placed within business units to provide customized support.

Question 30

Define Centers of Expertise (CoE).

Answer 30

Specialized HR teams focused on areas like recruitment, learning, or compensation.

Question 31

What is the role of Operational HR?

Answer 31

Day-to-day HR management such as compliance, employee relations, and policies.

Question 32

What is the difference between outsourcing and offshoring?

Answer 32

Outsourcing is contracting a third party; offshoring means doing this in another country.

Question 33

What are common services outsourced in HR?

Answer 33

Payroll, benefits administration, recruitment, and training.

Question 34

What is co-sourcing?

Answer 34

A hybrid model where internal and external providers jointly deliver services.

Question 35

What is insourcing in HR?

Answer 35

Bringing previously outsourced HR services back in-house.

Question 36

Why do companies outsource HR functions?

Answer 36

To reduce costs, focus on core business, and improve service quality.

Question 37

What is the purpose of HR metrics?

Answer 37

To measure HR performance and show its impact on business outcomes.

Question 38

Name 2 common recruitment metrics.

Answer 38

Time to fill, Cost per hire.

Question 39

Give an example of a revenue-related HR metric.

Answer 39

Revenue per employee.

Question 40

What is an example of an HR program metric?

Answer 40

Training ROI (Return on Investment).

Question 41

What are KPIs in HR?

Answer 41

Key Performance Indicators used to track success of HR initiatives.

Question 42

What is the main goal of an HR audit?

Answer 42

To assess compliance, effectiveness, and alignment of HR practices.

Question 43

Name 3 types of HR audits.

Answer 43

Compliance audit, Strategic audit, Function-specific audit (e.g., recruitment, compensation).

Question 44

What areas are commonly reviewed in an HR audit?

Answer 44

Hiring practices, benefits, performance management, and legal compliance.

Question 45

What is the first step in the HR audit process?

Answer 45

Define objectives and scope of the audit.

Question 46

What is people sustainability in HR?

Answer 46

Creating long-term value by ensuring workforce well-being, development, and retention.

Question 47

How does talent attraction support sustainability?

Answer 47

By bringing in skilled employees who contribute to organizational growth and innovation.

Question 48

What is the link between enhanced productivity and sustainability?

Answer 48

A productive workforce improves efficiency and supports long-term success.

Question 49

How does HR contribute to an organization’s reputation and branding?

Answer 49

By promoting ethical practices, diversity, and employee engagement.

Question 50

Name one legal benefit of focusing on people sustainability.

Answer 50

Compliance with labor laws reduces legal risks and penalties.

Question 51

How does sustainability mitigate organizational risks?

Answer 51

It anticipates social, legal, and economic challenges, enabling proactive responses.

Question 52

Why is community involvement part of sustainability?

Answer 52

It builds goodwill and aligns the company with societal expectations.

Question 53

What is the ultimate goal of people sustainability?

Answer 53

Achieving long-term business success through a resilient, satisfied workforce.

Question 54

What is Corporate Social Responsibility (CSR)?

Answer 54

A company's commitment to act ethically and contribute to economic development, society, and the environment.

Question 55

How does CSR refine an organization’s value proposition?

Answer 55

It differentiates the company as ethical, attracting customers and talent.

Question 56

What does 'fostering greater impact' in CSR mean?

Answer 56

Creating meaningful social, environmental, and economic contributions.

Question 57

How does CSR influence purpose and influence?

Answer 57

It strengthens the organization’s mission and positive public image.

Question 58

What are the types of employee wellbeing?

Answer 58

Physical, Mental, Social, Financial.

Question 59

Why is employee wellbeing a business priority?

Answer 59

It boosts engagement, productivity, and retention while reducing absenteeism.

Question 60

How does the EU address worker wellbeing?

Answer 60

Through laws and sustainability reporting to protect employees’ welfare.

Question 61

Name one way to promote employee wellbeing.

Answer 61

Offering mental health programs or flexible work arrangements.

Question 62

What makes a wellbeing initiative 'effective'?

Answer 62

It aligns with employee needs and delivers measurable outcomes.

Question 63

How can you measure employee wellbeing?

Answer 63

Through surveys, feedback, turnover rates, and absenteeism data.

Question 64

What is Diversity in the workplace?

Answer 64

Having a workforce with varied backgrounds, experiences, and perspectives.

Question 65

What does Equity mean in HR?

Answer 65

Fair treatment, access, and opportunity for all employees.

Question 66

How is Inclusion defined?

Answer 66

Creating a culture where all employees feel welcomed, respected, and valued.

Question 67

Name a business benefit of DEI.

Answer 67

Improved innovation, decision-making, and customer understanding.

Question 68

How can HR create a DEI-friendly workplace?

Answer 68

Through inclusive hiring, bias training, and employee resource groups.

Question 69

What is employer branding?

Answer 69

The image and reputation of a company as an employer.

Question 70

Name 2 benefits of employer branding.

Answer 70

Attracts top talent, Enhances employee retention.

Question 71

What is a strategy for strong employer branding?

Answer 71

Promoting positive company culture and employee success stories.