MHA 708 EXAM 2026/2027 | COMPLETE QUESTIONS
AND ANSWERS (VERIFIED ANSWERS) | EXAM PREP
PRACTICE QUESTIONS AND ANSWERS | LATEST EXAM
GUIDE 2026&2027
1. Which management function is primarily concerned with establishing organizational
objectives and determining how those objectives will be achieved?
A. Controlling
B. Planning
C. Staffing
D. Directing
Answer: B
Planning establishes organizational goals and determines the strategies, resources, and
actions required to achieve them.
2. A hospital administrator notices that emergency department wait times have increased
steadily for three months. What should the administrator do FIRST?
A. Purchase additional equipment
B. Hire additional nurses immediately
C. Analyze the underlying causes of the delays
D. Reduce the number of scheduled appointments
Answer: C
A systematic assessment of the causes should precede corrective action so that resources are
directed toward the actual source of the problem.
3. Which statement best describes strategic management in a healthcare organization?
A. Managing only the organization's daily staffing schedule
B. Developing long-term direction while aligning resources with organizational goals
C. Monitoring individual employee attendance
D. Preparing monthly supply orders
Answer: B
Strategic management focuses on long-term organizational direction, competitive
positioning, resource allocation, and achievement of major goals.
,4. A healthcare manager delegates responsibility for preparing a departmental budget to a
senior supervisor. Which principle is MOST important?
A. Delegation eliminates the manager's accountability
B. Delegation transfers accountability permanently
C. Delegation should be accompanied by appropriate authority
D. Delegation should be limited to routine clerical duties
Answer: C
Effective delegation requires sufficient authority and resources for the employee to perform
the assigned responsibility, while ultimate managerial accountability remains.
5. Which performance indicator would BEST measure hospital efficiency?
A. Patient satisfaction alone
B. Average length of stay relative to case complexity
C. Number of employees attending training
D. Number of hospital policies
Answer: B
Efficiency examines the relationship between resources used and services produced; adjusted
length of stay can provide meaningful information about resource utilization.
6. A hospital introduces a new electronic medication administration system. Staff members
resist using it because they believe it will slow their workflow. What is the BEST
managerial response?
A. Discipline employees who resist
B. Cancel the implementation
C. Involve staff in training, workflow evaluation, and implementation feedback
D. Require immediate use without discussion
Answer: C
Change is more likely to succeed when affected employees understand the rationale, receive
training, and have opportunities to identify workflow problems.
7. Which leadership approach emphasizes inspiring employees through a shared vision and
motivating them to exceed routine expectations?
A. Transformational leadership
B. Autocratic leadership
C. Laissez-faire leadership
D. Transactional supervision
,Answer: A
Transformational leadership uses vision, inspiration, intellectual stimulation, and
individualized consideration to promote significant organizational improvement.
8. A manager gives an employee a clear objective but allows the employee to determine the
method used to achieve it. This approach MOST closely reflects:
A. Micromanagement
B. Participative or empowering management
C. Coercive leadership
D. Centralized control
Answer: B
Empowering employees allows appropriate discretion while maintaining accountability for
agreed-upon results.
9. Which characteristic is MOST important when establishing a measurable healthcare
performance objective?
A. It should be intentionally broad
B. It should avoid numerical targets
C. It should be specific and measurable
D. It should change every week
Answer: C
Specific and measurable objectives allow managers to evaluate progress objectively and
determine whether expected outcomes have been achieved.
10. A hospital's readmission rate is higher than its benchmark. Which action demonstrates
the BEST use of performance improvement principles?
A. Blame the discharge team
B. Hide the results from senior leadership
C. Identify contributing factors and implement targeted interventions
D. Stop measuring readmissions
Answer: C
Performance improvement requires analysis of contributing factors followed by targeted
interventions and reassessment of results.
11. Which organizational structure generally provides employees with clear authority and
reporting relationships?
, A. Informal network
B. Line structure
C. Randomized structure
D. Matrix-free structure
Answer: B
A line structure establishes a clear chain of authority and reporting responsibility.
12. A hospital administrator receives conflicting reports about the cause of a patient safety
incident. What is the MOST appropriate initial response?
A. Select the report from the highest-ranking employee
B. Conduct an objective fact-finding review
C. Immediately terminate the involved employee
D. Publicly identify the presumed cause
Answer: B
Objective fact-finding reduces bias and helps distinguish system failures, individual actions,
and contributing circumstances.
13. Which concept describes the number of employees directly supervised by one manager?
A. Span of control
B. Chain of command
C. Centralization
D. Departmentalization
Answer: A
Span of control refers to the number of subordinates directly reporting to a manager.
14. A healthcare organization groups employees according to nursing, finance, human
resources, and information technology. This is an example of:
A. Geographic organization
B. Functional departmentalization
C. Product diversification
D. Matrix reporting
Answer: B
Functional departmentalization organizes employees according to specialized functions or
areas of expertise.
AND ANSWERS (VERIFIED ANSWERS) | EXAM PREP
PRACTICE QUESTIONS AND ANSWERS | LATEST EXAM
GUIDE 2026&2027
1. Which management function is primarily concerned with establishing organizational
objectives and determining how those objectives will be achieved?
A. Controlling
B. Planning
C. Staffing
D. Directing
Answer: B
Planning establishes organizational goals and determines the strategies, resources, and
actions required to achieve them.
2. A hospital administrator notices that emergency department wait times have increased
steadily for three months. What should the administrator do FIRST?
A. Purchase additional equipment
B. Hire additional nurses immediately
C. Analyze the underlying causes of the delays
D. Reduce the number of scheduled appointments
Answer: C
A systematic assessment of the causes should precede corrective action so that resources are
directed toward the actual source of the problem.
3. Which statement best describes strategic management in a healthcare organization?
A. Managing only the organization's daily staffing schedule
B. Developing long-term direction while aligning resources with organizational goals
C. Monitoring individual employee attendance
D. Preparing monthly supply orders
Answer: B
Strategic management focuses on long-term organizational direction, competitive
positioning, resource allocation, and achievement of major goals.
,4. A healthcare manager delegates responsibility for preparing a departmental budget to a
senior supervisor. Which principle is MOST important?
A. Delegation eliminates the manager's accountability
B. Delegation transfers accountability permanently
C. Delegation should be accompanied by appropriate authority
D. Delegation should be limited to routine clerical duties
Answer: C
Effective delegation requires sufficient authority and resources for the employee to perform
the assigned responsibility, while ultimate managerial accountability remains.
5. Which performance indicator would BEST measure hospital efficiency?
A. Patient satisfaction alone
B. Average length of stay relative to case complexity
C. Number of employees attending training
D. Number of hospital policies
Answer: B
Efficiency examines the relationship between resources used and services produced; adjusted
length of stay can provide meaningful information about resource utilization.
6. A hospital introduces a new electronic medication administration system. Staff members
resist using it because they believe it will slow their workflow. What is the BEST
managerial response?
A. Discipline employees who resist
B. Cancel the implementation
C. Involve staff in training, workflow evaluation, and implementation feedback
D. Require immediate use without discussion
Answer: C
Change is more likely to succeed when affected employees understand the rationale, receive
training, and have opportunities to identify workflow problems.
7. Which leadership approach emphasizes inspiring employees through a shared vision and
motivating them to exceed routine expectations?
A. Transformational leadership
B. Autocratic leadership
C. Laissez-faire leadership
D. Transactional supervision
,Answer: A
Transformational leadership uses vision, inspiration, intellectual stimulation, and
individualized consideration to promote significant organizational improvement.
8. A manager gives an employee a clear objective but allows the employee to determine the
method used to achieve it. This approach MOST closely reflects:
A. Micromanagement
B. Participative or empowering management
C. Coercive leadership
D. Centralized control
Answer: B
Empowering employees allows appropriate discretion while maintaining accountability for
agreed-upon results.
9. Which characteristic is MOST important when establishing a measurable healthcare
performance objective?
A. It should be intentionally broad
B. It should avoid numerical targets
C. It should be specific and measurable
D. It should change every week
Answer: C
Specific and measurable objectives allow managers to evaluate progress objectively and
determine whether expected outcomes have been achieved.
10. A hospital's readmission rate is higher than its benchmark. Which action demonstrates
the BEST use of performance improvement principles?
A. Blame the discharge team
B. Hide the results from senior leadership
C. Identify contributing factors and implement targeted interventions
D. Stop measuring readmissions
Answer: C
Performance improvement requires analysis of contributing factors followed by targeted
interventions and reassessment of results.
11. Which organizational structure generally provides employees with clear authority and
reporting relationships?
, A. Informal network
B. Line structure
C. Randomized structure
D. Matrix-free structure
Answer: B
A line structure establishes a clear chain of authority and reporting responsibility.
12. A hospital administrator receives conflicting reports about the cause of a patient safety
incident. What is the MOST appropriate initial response?
A. Select the report from the highest-ranking employee
B. Conduct an objective fact-finding review
C. Immediately terminate the involved employee
D. Publicly identify the presumed cause
Answer: B
Objective fact-finding reduces bias and helps distinguish system failures, individual actions,
and contributing circumstances.
13. Which concept describes the number of employees directly supervised by one manager?
A. Span of control
B. Chain of command
C. Centralization
D. Departmentalization
Answer: A
Span of control refers to the number of subordinates directly reporting to a manager.
14. A healthcare organization groups employees according to nursing, finance, human
resources, and information technology. This is an example of:
A. Geographic organization
B. Functional departmentalization
C. Product diversification
D. Matrix reporting
Answer: B
Functional departmentalization organizes employees according to specialized functions or
areas of expertise.
