Question 1

Communications Management, Development, Macroeconomics, Planning, Quality, Relations, and Time Management

-The Pareto principle says that

A)An organization's commitment to customer service must extend even beyond the point of purchase.
B)Quality is achieved by prevention, not appraisal.
C)In organizations, individuals tend to be promoted up to their "level of incompetence."
D)80% of consequences can be attributed to 20% of the causes.

80% of consequences can be attributed to 20% of the causes.

Accepted Answer

The Pareto principle does assert that 80% of the consequences can be attributed to 20% of causes. It is also referred as the 80/20 rule.
Key Takeaway: Option A refers to Kaoru Ishikawa's TQM philosophy and is unrelated to cause and effects. Option B is the not the best response, since the statement that quality is achieved by prevention, not appraisal is one of Philip B. Crosby's four absolutes of quality management. Option C describes the "Peter Principle," the belief that individuals tend to be promoted up to their "level of incompetence" within organizations.

Question 2

Communications Management, Development, Macroeconomics, Planning, Quality, Relations, and Time Management

-What is a material breach?

A)Major contract violation
B)Using a material other than what was agreed in the contract
C)Making a payment a week late
D)A type of incentive
E)A form of retainage

Major contract violation

Accepted Answer

The Civil Rights Act of 1991 capped damages at $300,000 per employee, not at $500,000 per employee.
Key Takeaway: The Civil Rights Act of 1991 expanded upon employees' rights and remedies and did allow for jury trails for discrimination cases.

Question 3

Communications Management, Development, Macroeconomics, Planning, Quality, Relations, and Time Management

-What is a material breach?

A)Major contract violation
B)Using a material other than what was agreed in the contract
C)Making a payment a week late
D)A type of incentive
E)A form of retainage

Major contract violation

Accepted Answer

A material breach is a large violation of a contract agreement. It is one large enough to trigger actions such as termination of the project, a penalty fee or legal action. We don't believe paying late by a week would be a material breach, so the only other option that fits. Using a material other than one agreed could be a major violation of the contract.
Key Take Away: A material breach must result in penalties. This should be agreed early in the contracting process and reviewed with lawyers.

Question 4

Communications Management, Development, Macroeconomics, Planning, Quality, Relations, and Time Management

-What is a material breach?

A)Major contract violation
B)Using a material other than what was agreed in the contract
C)Making a payment a week late
D)A type of incentive
E)A form of retainage

Major contract violation

Accepted Answer

A statistical HR measurement that assesses productivity is revenue per employee.
Key Takeaway: Revenue per employee (also known as net income per employee) is a statistical HR measurement that assesses overall corporate productivity. Using the equation of the company's net income divided by the number of employees, the company can compare the resulting number with similar companies. Although the higher the number the better in a general sense, there are no rules about what, exactly, constitutes a good level of income per employee.

Deck 5: CLEP: Management