MHA Management 3

Question 1

Which budgeting approach requires managers to justify all expenditures from scratch each budget cycle rather than using the prior year as a baseline?

Accepted Answer

Zero-based budgeting

Answer

Zero-based budgeting eliminates automatic rollovers by requiring justification of every line item regardless of historical spending.

Question 2

A hospital CEO wants to align employee behavior with organizational goals using extrinsic motivation. Which management tool is most appropriate?

Accepted Answer

Performance-based bonus tied to measurable outcomes

Answer

Extrinsic motivation relies on external rewards such as bonuses linked to measurable performance targets.

Question 3

A healthcare manager is using Management by Objectives (MBO). What is the critical first step in the MBO process?

Accepted Answer

Jointly setting specific, measurable goals between manager and employee

Answer

MBO begins with collaborative goal-setting between manager and subordinate to ensure alignment and commitment.

Question 4

A hospital board is exercising its fiduciary duty. Which of the following actions best exemplifies this responsibility?

Accepted Answer

Reviewing and approving the annual financial audit and ensuring financial controls

Answer

Fiduciary duty requires board members to act in the organization's best financial interest, including oversight of financial controls and audits.

Question 5

Which type of healthcare organizational conflict is most likely to arise from resource scarcity during budget cuts?

Accepted Answer

Intergroup conflict between departments competing for limited resources

Answer

Budget cuts create intergroup conflict as departments compete for limited funding, staffing, and equipment.

MHA - Master of Healthcare Administration Practice Test