Food Management

Question 1

What is Blake Mouton Managerial Grid?

Answer 1

A model used to evaluate a manager’s leadership style based on their focus on two key dimensions: high concern for people and high concern for results (or production). Tends to be the most effective style of managing, motivates employees, and gets them to stretch themselves to deliver great results. In turn, employees feel respected and empowered.

Question 2

Define value statement

Answer 2

Value statement: A meaningful statement that defines what is important to a company. The company’s core values are often used to attract customers and to motivate employees

Question 3

Define sublimation

Answer 3

Sublimation: A defense mechanism where a person attempts to satisfy an impulse with a substitute object or task in a socially-acceptable way. This is a way to deal with conflicted emotions, unmet desires, or unacceptable impulses

Question 4

Define liability and provide some examples

Answer 4

Liability: Anything the company owes. It may be a current liability, meaning it is something due soon (monthly payments on a mortgage), or it may be a long-term liability, meaning something due at least a year or longer (the remaining balance of the mortgage)

Examples:
* Accounts payable (a bill due to another company for a product or service)
* Monthly bills
* Rent, lease, mortgage
* Insurances
* Taxes owed
* Salaries to employees

Question 5

Which analysis uses an 80/20 pattern, and what does this mean?

Answer 5

Pareto analysis uses an 80/20 pattern to explain many real world situations, and it helps to separate major problems from minor ones. It assumes that relatively few people or events (20%) account for the majority of results (80%)

The analysis shows a manager what are the most important problems that require attention

Question 6

Describe operating costs

Answer 6

Operating costs: The expenses a business incurs as a result of normal operations. Operating costs include the direct costs of producing a product (materials and labor) and also the machinery and energy involved in production, the packaging and shipping, and inventory costs. These costs cannot be avoided because they help the business continue running, but these costs can be reduced by cutting back on labor or by choosing less expensive materials

Question 7

Define liquidity ratio

Answer 7

Liquidity ratio: Also known as activity ratio or solvency ratio. Provides an analysis of a company to pay off both its current liabilities as they become due, and its long-term liabilities as they become current. The ratio shows the cash levels of a company and the ability to turn other assets into cash quickly to pay off any expense or current obligations

Question 8

Calculate the ideal food cost percent given the following information:
* Total food costs = $2,500
* Total food sales = $8,000

Answer 8

Ideal food cost percentage is the ratio of total food costs to total food sales. This is the percentage a foodservice company should strive for according to total food costs and sales

Ideal food cost percentage = total food costs / total food sales

Ideal food cost percentage = $2,500 / $8,000
Ideal food cost percentage = 0.3125, or 31.25%

This means 31.25% of the company’s revenue should go towards paying for ingredients

If the actual food cost percent is higher than the ideal food cost percent, food costs may be lowered by:
* Finding cheaper vendors
* Reducing portion sizes
* Adjusting menu prices

Question 9

Provide the eligibility requirements for a person to receive Medicare coverage

Answer 9

Medicare is an insurance coverage for people who fit the following criteria:
* Legal US citizen
* 65 years or older and eligible for Social Security
* Permanently disabled and receiving disability benefits
* Those with end stage renal disease
* Those with Lou Gehrig’s disease

Some people are automatically enrolled, but those who are 65 and older and are not receiving Social Security benefits may need to apply

Question 10

Compare the following:
* Media relations
* Social networking
* Social marketing

Answer 10

Media relations: Relationship a company’s public relations team develops with journalists to portray the message in a positive, consistent, and credible manner with the goal of maximizing positive coverage in the media without paying for it directly through advertising

Social networking: The use of social media sites to engage with customers and build brand awareness through providing product or company information and offering promotions

Social marketing: The development of activities aimed at changing or maintaining people’s behavior for the benefit of individuals and society as a whole. The goal is to change or maintain how people behave

Question 11

How many FTEs are required to cover 360 labor hours?

Answer 11

A full-time equivalent (FTE) is a unit of measure accounting for the total number of hours worked. One FTE = 40 hours

360 total hours / 40 hours per FTE = 9 FTEs

Question 12

Provide examples of fixed costs

Answer 12

Fixed costs are the costs which do not change, regardless of how well or how poorly a business is doing in sales

Examples:
* Mortgage, lease, rent
* Insurance
* Legal fees
* Taxes (except for sales tax)
* Salaries (except for contract employees and overtime)
* Advertising

Question 13

Explain the Human Relations Theory

Answer 13

Human Relations Theory: Developed by Elton Mayo who changed up conditions in the workplace (lighting, length of the workday, and break times) to see if any correlation with performance. Mayo found that any change resulted in an improvement in performance, and he concluded that employees are more motivated by personal attention and being part of a group than they are by money or working conditions

Question 14

Which employee protection act protects employees from seeking to organize in a union?

Answer 14

The Wagner Act of 1935 places the protective power of the federal government behind employees seeking to organize into a union and bargain for better terms and conditions at work. The act considers the following to be unfair labor practices:
* Management support of a company union
* The discharge or discipline of employees for union activities
* The discrimination against employees making complaints to the National Labor Relations Board
* The refusal to bargain with employee representatives
* The interference with the rights of employees to act together for mutual aid or protection

Question 15

What formula is used when calculating cost of goods sold?

Answer 15

Cost of goods sold (COGS) is an important variable found on the financial statement, which is subtracted from the revenue to determine gross profit. COGS helps a company determine the bottom line and how efficiently it is with managing labor and supplies during production

COGS = beginning inventory + purchases made during the period - ending inventory

Question 15

What is the purpose of conducting a plate waste study?

Answer 15

A plate waste study is an ideal indicator of the quality of food prepared and served. This is a method of comparing the amount of food delivered to the patient to the amount of food remaining after consumption. If certain foods are regularly being discarded, this indicates the majority of patients do not enjoy the food itself, do not like the way it is prepared, or find the portion sizes too large

All food waste is collected and weighed either as a whole tray or per individual item. This is accurate, but extremely time-consuming

Question 15

Name the four main principles of the Code of Ethics

Answer 15

Code of Ethics principles:
* Non-maleficence: The intent to do no harm
* Autonomy: Ensuring a patient or professional has the capacity and self-determination to engage inn ethical decision-making
* Beneficence: Taking positive steps to benefit others while reducing risk
* Justice: The social responsibility for local, regional, national, and global nutrition and well-being

Question 15

What is Scope of Practice?

Answer 15

Scope of Practice (SOP): A range of roles, activities, and regulations within which nutrition and dietetics practitioners perform

SOPs:
* Begin with education and credentialing
* Incorporates practice resources
* Concentrates on foundation elements of standards of practice and professional performance, codes of ethics, accreditation standards, state and federal regulations, national guidelines, organizational policy and procedures, and options and resources for practice management and advancement

Question 16

How is variable cost ratio helpful at the product level and at the company level?

Answer 16

Product level: To understand the contribution margin gained from a sale
Company level: To determine the amount of fixed costs the company incurs

Variable cost ratio (VCR) is the relationship between variable costs and sales. This shows the proportion of variable costs to a company’s total sales. At the product level, VCR helps understand the contribution margin gained from a sale. At the company level, VCR helps determine the amount of fixed costs the company incurs. A high VCR implies the company can earn a profit at a relatively low sales level since there are low fixed costs. A low VCR implies a high break-even point

Question 17

How many meals were served per labor hour if 6 FTEs produced 5,000 meals for the week?

Answer 17

First find the total number of labor hours:
6 FTEs X 40 hours per FTE = 240 total hours

Then find the meals per labor hour:
5,000 meals / 240 total hours = 20.83 meals per labor hour

Question 18

Provide some principles of total quality management

Answer 18

Total quality management (TQM) is when processes are refined with the goal of improving performance in response to customer needs and expectations

Principles of TQM:
* Client focus: Meeting the customers’ needs and desires
* Obsession with quality: Focus on producing great quality products and services
* Recognizing structure of work: Allow employees monitor themselves, which can motivate them, resulting in better products and services produced
* Freedom through control: Standard procedures means less variability in the work
* Unity of purpose: Create an environment where all employees work towards a clear vision of what is to be accomplished
* Look for faults in the system: Keep trying to improve processes to make them better and yield greater results
* Continuing education and training: Empower employees to continue learning and develop new skills

Question 19

What is the purpose and the goal of the Code of Ethics?

Answer 19

The purpose of the Code of Ethics is to provide guidance to food and nutrition practitioners in their professional practice and conduct. The goal is to protect individuals, groups, organizations, and communities with whom the nutrition professional interacts

The Code of Ethics applies to all members, both credentialed and non-credentialed, of the Academy of Nutrition and Dietetics (AND), but it does not apply to organizations

Question 20

List some of the cost categories a manager might review when performing a cost-benefit analysis

Answer 20

Cost-benefit analysis cost categories:
* Direct costs: Labor involved in manufacturing, inventory, raw materials, and manufacturing expenses
* Indirect costs: Utilities, overhead costs from management, and rent
* Intangible costs: Customer impact of pursuing a new business strategy, delivery delays of a product, and employee impact
* Opportunity costs: Looking at alternatives, including the decision to make no change
* Potential risk costs: Competition and environmental impact

Question 21

The method of using less manpower, less space, and less time to make products the way customers want is known as:

Answer 21

Lean Model is the method of using less manpower, less space, less capital, and less time to make products exactly the way customers want with fewer defects

Steps to the Lean Model:
* Identify which features create value for internal and external customers
* Document the value stream, which is the sequence of activities that create value
* Improve the flow, which also includes eliminating things that interrupt flow
* Allow the customer to pull the product through the process, meaning to provide the product only when the customer wants it
* Perfect the process

Question 22

A company has $60,000 in fixed costs. They sell an item for $10.00 each, and it costs $4.00 to make each item (variable cost). How many units must the company sell in order to break even?

Answer 22

BEP units = $60,000 fixed costs / ($10 selling price per unit - $4 variable cost per unit)
BEP units = $60,000 / $6 contribution margin per unit
BEP units = 10,000 units

This company must sell 10,000 units with a selling price of $10 per unit and a contribution margin of $6 per unit in order to break even

Question 23

Abraham Maslow proposed the

Answer 23

Hierarchy of Needs, proposed by Abraham Maslow, theorizes that individuals must have their most basic needs met before they become motivated to achieve higher-level needs

Question 24

What are the three categories of the ERG Theory

Answer 24

ERG Theory (Existence, Readiness, and Growth). Proposed by Clayton Alderfer. The theory is similar to Maslow’s Hierarchy of Needs as both describe needs in a hierarchical format. However, unlike Maslow’s theory, the ERG theory allows for different levels of needs to be pursued simultaneously

Categories:
* Existence: The most basic set of needs required for existence
* Relatedness: The desire people have for building and maintaining important interpersonal relationships, socially
* Growth: The intrinsic desire for personal development

Question 25

Define break-even point

Answer 25

Break-even point: The financial point when total revenue equals total expenses. All expenses are covered by sales made, and profit equals zero. Break-even point may be calculated as dollars (amount of money to break even) or as units (number of units to sell to break even)

Question 26

Provide the typical disciplinary procedures for the first offense to multiple offenses

Answer 26

Typical disciplinary procedures:
* Unrecorded oral warning
* Oral warning with a note in the employee’s personnel file
* Written warning
* Suspension
* Termination

Question 27

Discuss Standards of Professional Performance

Answer 27

Standards of Professional Performance (SOPP): Specialized standards for knowledge, skills, and competencies required to provide care at the generalist, specialist, and advanced practice level for a variety of populations. SOPP utilizes:
* Evidence-based guidelines: Current best evidence in making decisions about the care of individual patients, leading to improved quality of care
* Best evidence: High-quality research, systematic reviews of the literature, and meta analysis to support decisions made in practice

Question 28

Describe the OSH Act

Answer 28

Occupational Safety and Health (OSH) Act:
* Administered by the Occupational Safety and Health Administration (OSHA)
* Employers covered by the OSH Act must comply with OSHA’s regulations and safety and health standards
* Employers are required to provide their employees with work and a workplace free from recognized, serious hazards
* OSHA enforces the law through inspections and investigations

Question 29

A store is interested in purchasing 5 self-checkout stations valued at $100,000 each. The store assumes they can have one employee oversee and work the 5 self-checkout lanes and estimates it will be able to save $10,000 monthly for the 4 employees relieved from the standard checkout lanes. How long will it take for the self-checkout lanes to pay for themselves?

Answer 29

Payback period = total expenses for an investment / amount saved per timeframe

The total expense for the self-checkout lanes is $500,000
5 lanes X $100,000 each = $500,000 total expense

Payback period = $500,000 total expenses / $10,000 savings per month
Payback period = 50 months, or about 4 years and 2 months

Question 30

When a manager seeks the opinion of experts in the field to help with decision-making, this is known as:

Answer 30

Consultative leadership is a style of leadership where the manager seeks the opinion of others who are experts in the field or have useful skills or experiences to better the work environment and production. The manager still retains the final decision-making power, but the decision is more likely to be based largely on the consults of others, or at least no decision will be made until after hearing the input from others

Question 31

Define labor union

Answer 31

Labor union: An organized group of workers who unite to make decisions about conditions affecting their work

Question 32

Describe the three skills for a successful management process: Technical, human, and conceptual

Answer 32

Technical: The manager applies his or her education, training, and experience to effectively organize a task, job, or project. These skills are used more often at lower levels of management and less at higher levels

Human: The manager’s ability to work with people and is a combination of social, interpersonal and leadership skills. These skills are just as important at lower levels of management as they are at higher levels

Conceptual: The knowledge or ability of a manager to apply more abstract thinking, to generate ideas creatively and intuitively, and to show comprehensive understanding of contexts. Used more at higher levels and less at lower levels of management

Question 33

Describe the Classical Approach of Management

Answer 33

Classical Approach:
* Creating multiple levels of workers to improve productivity
* Employees at the lowest level are overseen by supervisors, who are overseen by managers
* At every level, employees are expected to perform tasks according to specific procedures designed to maximize productivity
* Personal interactions are discouraged
* Rules must be followed exactly
* Hiring and firing of employees must relate only to the skills they possess
* Fails to recognize the differences among employees

Question 34

Name the pricing model, which is actually illegal as it is used with very low prices in an attempt to eliminate the competition

Answer 34

Predatory pricing is a pricing model of setting an item’s price very low, far below competitor’s pricing in an attempt to eliminate the competition. If the competition is eliminated, the company can monopolize the market and can charge what they want for the product. This model is illegal but also difficult to prove

Question 35

What happens after a Joint Commission survey?

Answer 35

Following a Joint Commission facility survey:
* The facility is issued a preliminary report from the surveyors before they exit
* The final report is provided within 10 days
* If an issue was discovered, a Requirement for Improvement (RFI) may be issued, which requires an action plan submitted no more than 60 days from the issue date of the final report

Question 36

Which act is responsible for setting standard for wages and overtime pay?

Answer 36

The Fair Labor Standards Act sets the standards for wages and overtime pay. The act requires employers to pay covered employees at least the federal minimum wage and overtime pay of one and one-half times the regular rate of pay

Question 37

Describe quality assurance

Answer 37

Quality assurance (QA): The procedure that defines and ensures maintenance of standards are within prescribed tolerances for a product or service. QA is output-oriented and includes processes of defining measurable quality standards and then putting controls in place to ensure standards are met. The measurements compare actual results to standards

Question 38

What are the four main features of a PERT chart?

Answer 38

Program Evaluation and Review Technique (PERT) chart is used for very large, complex, non-routine projects. This includes four main features:
1. An event: A performance milestone representing the beginning or finish of some activity
2. An activity: Represents the work in process. Activities are time-consuming jobs that begin and end with a PERT event
3. A time: Estimated times for the completion of PERT activities
4. A critical path: Most time-consuming chain of activities and events. An activity is considered critical because if this activity becomes delayed, it could delay the whole project

A PERT event leads to a PERT activity with PERT time in mind

Question 39

Differentiate between direct costs and indirect costs

Answer 39

Direct costs: Expenses connected to a specific cost object (a product, department, service, or project). For example, a company which produces a product to sell, the product is the cost object, and all parts and employee salaries are the direct costs

Indirect costs: These are the “real costs” of a business and are not directly connected to producing a cost object, such as materials and supplies necessary for day-to-day operations. Some examples include utilities, rent/mortgage/lease, cleaning supplies, office supplies (printing paper, computers, pens), insurances, and salaries for administrative personnel

Question 40

Explain word-of-mouth advertising

Answer 40

Word-of-mouth (WOM) advertising: When customers use a product or service, are satisfied with their purchase, and recommend a business, product, or service to other people. WOM advertising is known to be very credible and very low cost

Question 41

Describe the following:
* Policy
* Procedure
* Method
* Rule

Answer 41

Policy: Guidelines for action developed by top management. A policy is the broadest of the standing plans. Companies should have a wide variety of policies covering the most important functions

Procedure: Chronological sequence of activities for the performance of certain activities which are developed especially for the use at the technical level of the organization

Method: Even more detailed type of a procedure, but relates only to one step of a procedure

Rule: Specifies an action by stating what must or must not be done

Question 42

Describe the Quality-Focused Approach to Management

Answer 42

Quality-Focused Approach:
* Involves a partnership with customers to produce a product or service that meets or exceeds their expectations and needs
* Idea is that if the product pleases customers, sales will increase
* The process of creating the best-quality product never ends
– May involve a continual review of suppliers or production processes are continually modified
– The customer defines the goals and recommends new or different features
– All levels of the company provide input regarding ways to streamline processes and make the product better
* Performance measured through customer feedback
– Input is actively solicited, and any negative comments or suggestions for improvement drive the next round of design and process changes

Question 43

When a conflict arises in the workplace, a manager might use a technique known as smoothing. What is the manager doing?

Answer 43

When conflicts arise in the workplace, the manager may choose to do nothing (known as avoidance strategy) or may try a variety of techniques. One of the techniques is known as smoothing, where the manager uses smoothing words with the conflicting parties, such as “relax, things will work out”. The idea is to tone down the conflict temporarily, but this does not solve the underlying issue. This is successfully used when attempting to hold things together until a critical project is completed or when there is no time for problem solving or compromise

Question 44

Describe a cost-benefit analysis

Answer 44

The technique for comparing the costs and financial benefits of a project or decision. This is more often used on large-scale projects or additions to a business, such as remodeling, purchasing additional equipment, etc. Before adding in a new intervention, most managers want to compare the cost of implementing and maintaining the programs with the increase in performance attributed to them. The increase in performance produces a payoff measured in either dollars or the achievement of the company’s objectives

Question 45

Ten employees each spend 8 hours of the day at work and get paid the same salary of $12 per hour. They each get 30 minutes for lunch, but this is unpaid. The restaurant sales for the day amounted to $3,500. What is the labor cost percent?

Answer 45

The employees’ productive work hours is 7.5 hours per day since 30 minutes of the nonproductive hours for lunch are unpaid

Total labor cost = 10 employees X 7.5 hours per day X $12 per hour
Total labor cost = $900

Labor cost percent = $900 total cost of labor / $3,500 total in sales
Labor cost percent = 0.257, or 25.7%

Question 46

How many relief employees are needed with a staff of 8 full-time employees?

Answer 46

Relief employees are employees covering vacations and holidays for full-time employees. Approximately 1.55 employees are necessary for everyday coverage of full-time positions
* Use the factor of 0.55 to find only the number of relief employees
* Use the factor of 1.55 to find the total number of employees (relief plus full-time)

8 full-time employees X 0.55 = 4.4 relief employees

Question 47

Describe a sentinel event

Answer 47

A serious, unexpected occurrence involving death or serious physical or psychological injury or risk thereof. An event is sentinel when it signals the need for immediate investigation and response. Reviewable sentinel events only apply to healthcare institutions. They do not apply to any non-healthcare organization, such as a restaurant

Question 48

Describe the Systems Management Theory

Answer 48

A business consists of multiple components that must work in harmony for the larger system to function optimally. Employees are most important components of a company. Departments, workgroups, and business units are all additional crucial elements for success

Question 49

Provide some examples of variable costs

Answer 49

Variable costs are costs which do change, depending on the amount of business or units sold

Examples:
* Supplies to make the item being sold, such as an ingredient
* Accompanying supplies, such as paper products (napkins and paper plates) or shipping supplies
* Overtime pay, part-time pay, and contract employees

Question 50

When conducting a cost-effective analysis, and it is found that the net costs are positive, this means a more effective intervention is (more or less) costly

Answer 50

More costly

A cost-effective analysis is a method of examining both the costs and health outcomes of one or more interventions

If the net costs of an intervention are positive, this means a more effective intervention is more costly

If the net costs are negative, this means a more effective intervention is less costly

Question 51

One FTE is equivalent to ___ hours

Answer 51

40 hours

Full-time equivalent (FTE) is the unit of measure accounting for the total number of hours worked. One FTE = 40 hours. An FTE unit encompasses full-time employees, part-time employees, and contract employees

Question 52

What is contribution margin?

Answer 52

Contribution margin: The proportion of sales that covers a company’s fixed costs after all variable costs have been covered. Any money remaining after fixed costs are covered is considered profit

Question 53

List and describe some of the key elements of the management function of directing

Answer 53

Directing elements:
* Supervision: Overseeing and ensuring work is getting done
* Motivation: Enticing an employee to do something in return for something the employee wants, such as compensation
* Leadership: Leading employees to perform at their best
* Communication: The ability to communicate the requirements of the job effectively
* Delegation: Dividing the work and allocating to subordinates
* Coordination: Ensuring that different departments and groups work in sync

Question 54

Calculate the food cost percent given the following information:
* Beginning inventory value = $11,000
* Purchases made during period = $7,000
* Ending inventory value = $15,000
* Total food sales = $8,000

Answer 54

Food cost percentage = (beginning inventory + purchases - ending inventory) / total food sales

Food cost percent = ($11,000 beginning inventory + $7,000 purchases - $15,000 ending inventory) / $8,000 sales
Food cost percent = $3,000 / $8,000
Food cost percent = 0.375, or 37.5%

This means 37.5% of the company’s revenue goes towards paying for ingredients

Question 55

List some factors to consider when choosing a selling price of an item

Answer 55

Selling price factors to consider:
* All fixed and variable costs to produce the item
* The desired profit
* Competitor pricing

Question 56

List some strategies to improve customer loyalty

Answer 56

Improving customer loyalty strategies:
* Provide exceptional customer service
* Be friendly, courteous, and helpful to customers
* Provide the “human touch” by offering a live person to assist the customer
* Offer a rewards program to entice customers to make repeat purchases
* Find and designate the most highly satisfied customers to become brand ambassadors and engage with them often
* Ask for anecdotal feedback from happy customers
* Provide incentives for customers on special days, such as their birthday or anniversary of the date they became a loyal member

Question 57

List some of the scenarios of which an employee may take an extended leave of absence from work as part of the Family and Medical Leave Act

Answer 57

According to the Family and Medical Leave Act (FMLA), employers of 50 or more employees are required to give up to 12 weeks of unpaid, job-protected leave to eligible employees. An eligible employee is able to take an extended leave of absence from work if:
* They have an illness
* They care for a qualified sick family member
* They birthed or adopted a child
* They are a military caregiver or have other emergencies related to a family member’s active duty service

Question 58

Compare the terms revenue and income

Answer 58

Revenue:
* Synonymous with sales or gross sales
* Amount generated from the sales of goods or services before any expenses are taken out
* Refers to the total amount coming in
* Known as the “top-line” on an income statement
* Indicates how effectively a company is at generating sales
* A high revenue does not equate to overall success if expenses are not managed well

Income:
* Synonymous with net income or profit
* Calculated by taking revenue and subtracting the costs of doing business
* Refers to the total amount coming in and out
* Known as the “bottom-line” on an income statement
* Indicates how efficient a company is with spending and managing its operating costs
* A high income is reflected with overall success, since this does incorporate management of expenses

Question 59

Describe public relations

Answer 59

(PR): The strategic communication process that builds relationships and awareness with the target market. This is different than advertising
* Advertising is paid media and more expensive. PR is earned media and is less expensive
* Advertising builds exposure. PR builds trust
* PR has more credibility because it was independently verified by a trusted third party
* Advertising has more control over the message and design. PR relies on a third party to post the message

Question 60

List what an employer may do and what an employer may not do with regards to a labor union

Answer 60

When a union is established, an employer may:
* Discuss union dues
* Explain wage and benefits of the union
* Express their views on unions
* Talk to employees individually or in small groups
* Tell employees facts about the union and its actions at other companies

When a union is established, an employer may not:
* Attend union meetings
* Encourage employees to report about the union
* Question employees about their feelings or opinions about the union
* Speak with union employees in private
* Discourage employees from joining the union

Question 61

What is another name for an Ishikawa diagram?

Answer 61

Fishbone diagram or cause-and-effect analysis

A fishbone diagram (Ishikawa diagram or cause-and-effect analysis) is a useful tool for tracking down the causes of various problems. The construction of the diagram begins with a statement of the problem, which would be the head of the fish skeleton. The bones stemming off of the fish’s backbone list the possible reasons for the problems, and these are listed in order of their occurrence

Question 62

Describe fixed costs

Answer 62

Fixed costs: The necessary costs for a business to operate which do not change regularly and are not impacted by how well or how poorly a business is doing with respect to revenue. If sales go up, fixed costs remain unchanged. If sales go down, fixed costs remain unchanged

Question 63

Describe the four different types of Medicare (Parts A through D)

Answer 63

Part A: Provides inpatient and hospital coverage

Part B: Provides outpatient and medical coverage

Part C: Alternative method of receiving Medicare benefits, which includes Parts A and B services but with different rules, costs, and restrictions

Part D: Provides prescription drug coverage

Question 64

List some disadvantages of flow charts

Answer 64

A flow chart is a chart which displays the steps in a process and examines the flow of each step and how that step relates to others. A flow chart does have some disadvantages:
* Does not take into consideration the amount of time allowed to complete each step
* Does not represent complex situations where more than one occurrence can happen at the same time

Question 65

Differentiate between inbound marketing and outbound marketing

Answer 65

Inbound marketing: Marketing through web technology by targeting specific audiences based on their internet searches and preferences, such as search engine optimization (SEO), blogging, email newsletters, and social media posts. Inbound marketing can have what’s known as organic reach, which is the process of reaching a potential customer who found a company’s website by searching online for criteria other than the actual company itself

Outbound marketing: Marketing through print, television, radio, direct mail, and outbound calling. This type tends to be very expensive and not very effective. Outbound marketing does not have the ability to advertise only to the target market

Question 66

List some of the potential benefits of employee turnover

Answer 66

Employee turnover has a negative connotation since there is an increase in time and money to train new employees, but it can have some benefits:
* An increase in employee morale: Specifically if the departed employee slacked at work and others needed to pick up extra work
* Fear as a motivator: A message sent to remaining employees that poor performance will not be tolerated
* New talent: The opportunity to hire new employees with new ideas and emerging skills
* Promotion to a higher position: The opportunity for remaining employees to be promoted to the vacant spot if it was a higher level position
* Lower benefits rates: Particularly if the departed employee was higher in age, and if the health insurance carrier bases premiums on age

Question 67

The process of grouping customers based on their specific needs and wants is known as:

Answer 67

Market segmentation is the process of grouping customers based on their specific needs and wants. The segments should be measurable, such as determining the approximate number of potential customers in a segment. Market segmentation allows companies to target different categories of customers who perceive the value of certain products differently from one another. The products and services might be tailored in a way that is attractive to the group

Question 68

Equation for Employee Turnover Rate

Answer 68

Employee that leaves under won power for their own reasons (voluntary) or due to termination (involuntary).

Employee Turnover Rate = number of seperations/ total in department

Question 69

Solve Using Turnover Rate:
A department begind the year with 30 employees. Throughout the year 5 employees were fired or quit and 3 new employees were hired. What was the turnover rate for the year?

Answer 69

30 employees began the year + 25 orignal employees began the year/2 = 27.5 employees (average in year period).

Employee Turnover Rate = Number of seperations/average number of employees

Employee Turnover Rate = 5 seperations/27.5 average

Employee Turnover Rate = 0.1818 or 18.2%

Question 70

Describe the Norris-LaGuardia Act

Answer 70

Norris-LaGuardia Act of 1932:
* Also known as the Anti-Injunction Act
* Restricts the ability of employers to obtain a federal injunction forbidding a union to engage in picketing, boycotting, or striking activities
* Outlaws contracts that required employees to state they were not union members and also promised not to join one, also referred to yellow-dog contracts

Question 71

Which act is responsible for setting standard for wages and overtime pay?

Answer 71

Fair Labor Standards Act

The Fair Labor Standards Act sets the standards for wages and overtime pay. The act requires employers to pay covered employees at least the federal minimum wage and overtime pay of one and one-half times the regular rate of pay

Question 72

is enforced when different wages are paid to employees of the opposite sex

Answer 72

Equal Pay Act

The Equal Pay Act of 1963 is an amendment of the Fair Labor Standards Act and is enforced when different wages are paid to employees of the opposite sex. Employees are covered when they perform substantially equal work on jobs requiring equal skill, effort, and responsibility, and the jobs are performed under similar working conditions

Question 73

List the protection mandates for employees and applicants in the Equal Employment Opportunity Commission

Answer 73

The Equal Employment Opportunity Commission (EEOC) enforces federal laws prohibiting discrimination. EEOC protects employees and applicants against:
* Discrimination, harassment, and unfair treatment in the workplace by anyone because of race, color, religion, sex, pregnancy, national origin, age, disability, and genetic information
* Being denied reasonable workplace accommodations for disability or religious beliefs
* Retaliation because they complained about job discrimination or helped with an investigation or lawsuit

Question 74

Which employee protection act protects employees from seeking to organize in a union?

Answer 74

Wagner Act

The Wagner Act of 1935 places the protective power of the federal government behind employees seeking to organize into a union and bargain for better terms and conditions at work. The act considers the following to be unfair labor practices:
* Management support of a company union
* The discharge or discipline of employees for union activities
* The discrimination against employees making complaints to the National Labor Relations Board
* The refusal to bargain with employee representatives
* The interference with the rights of employees to act together for mutual aid or protection

Question 75

What does workers’ compensation provide to employees?

Answer 75

Workers’ compensation protects employees who get hurt on the job or become ill from it. Workers’ compensation is a form of insurance the employer pays for. Provided to the employee, includes:
* Coverage for the employee’s medical expenses
* Compensation for lost wages while the employee is out recovering
* Benefits for dependents of employees who died from job-related hazards

Question 76

Differentiate between positive reinforcement and negative reinforcement and between positive punishment and negative punishment

Answer 76

Positive/negative reinforcement and positive/negative punishment are part of the Reinforcement Theory of B.F. Skinner, who theorized that a person can shape one’s behavior by controlling the consequences of the behavior

Positive reinforcement: Something is added to the mix that makes the behavior more likely to continue

Negative reinforcement: Something is taken away from the mix that makes the behavior more likely to continue

Positive punishment: Something is added to the mix that makes the behavior less likely to continue

Negative punishment: Something is taken away from the mix that makes the behavior less likely to continue

Question 77

Compare Theory X to Theory Y

Answer 77

Both Theory X and Theory Y were proposed by Douglas McGregor

Theory X: Employees are naturally unmotivated, dislike working, avoid responsibility, need to be directed, have to be controlled or threatened to deliver what is needed of the job, and need to be supervised at every step in the process of their job

Theory Y: Employees are happy to work, are self-motivated and creative, and enjoy working with more responsibilities

Question 78

Explain the Expectancy Theory

Answer 78

Expectancy Theory: Theorist Victor Vroom proposed that people will choose how they behave depending on the outcomes they expect as a result of their behavior. For example, an employee may think that if he works longer hours, he will receive an increase in pay

Question 79

Describe the Behavioral Theory

Answer 79

Behavioral Theory: Focuses on how a person’s environment forms him or her into a leader, irregardless of natural abilities, The key concept is conditioning, which means person will be more likely to act or lead in a certain style as a result of environmental responses to behavior

Question 80

What is the Transformational Theory?

Answer 80

Transformational Theory: Also referred to as Relationship Theory. Studies effective leadership as a result of a positive relationship between leaders and team members. These leaders motivate and inspire through their enthusiasm and passion, and they hold themselves to the same standard they expect of others

Question 81

When a manger puts himself or herself in a team member’s shoes and truly understands what motivates them, this is known as:

Answer 81

Empathy is an interpersonal trait where the manager puts themselves in a team member’s shoes and truly understands what motivates them. This helps build trust by the team by establishing a genuine connection with them, and it helps create an environment built upon collaboration and mutual respect