1:6 HR Competencies: Business Acumen Quiz

Which approach to offsetting a downturn is often used by companies in the decline phase of their life cycle? Building teams Introducing product extensions Reducing costs Emphasizing training

Reducing costs Decline occurs when an industry, organization, or product begins to experience a sustained drop in demand. When the decline is apparent, leadership often may introduce cost reduction measures.

A large clothing company has a bad reputation because of its hiring practices, its treatment of employees, and its lack of support to the communities it operates in. The CEO and senior managers are known to make decisions based solely on revenue potential, without regard for the impact it may have on society. In fact, the CEO has commented several times that investing money in anything other than operations is a bad business strategy and unethical in terms of the company's obligation to its investors. Recently, major suppliers for the company, located outside the company's home country, were accused of unethical labor practices, unsafe workplace conditions, and possible human rights violations. This has become a public relations nightmare. Several groups have called for boycotts against the company. At the last shareholders' phone conference, several institutional investors expressed their displeasure with management's failure to respond strongly to the problems with suppliers. The CEO expressed his belief that critics were being unrealistic about their expectations for the suppliers. In fact, they were themselves insensitive to business practices and local norms in these countries. Concerned with the negative publicity and lacking confidence in the CEO's response to it, the company's board of directors requests that the CHRO immediately be given the task of formulating a committee to audit the company's operating practices, its employer branding, and its attitude on social issues. This action would at least show that the company has heard the criticisms. The CEO immediately goes to the CHRO's office and angrily says that the CHRO will be showing disloyalty if the CHRO conducts this audit. The CHRO had been one of the CEO's first hires. How should the CHRO respond to this situation? Persuade the CEO to accept the situation by promising the CEO a major role in the audit committee. Accept the board's assignment, explaining to the CEO the board's power to order this. Tell the board that there is a conflict of interest that prevents the CHRO from complying with the board's request. Explain the difficult position and promise to get the board to agree to a third-party audit.

Accept the board's assignment, explaining to the CEO the board's power to order this.

An HR specialist prepares a business case to support an initiative. The case includes descriptions of the project's goals, benefits, method, budget, and time line. Which information is required to complete the business case? Detailed description of the methodology that will be used Communication plan the project team will use Analysis of the initiative's possible risks Endorsements from organization stakeholders

Analysis of the initiative's possible risks The business case should include some discussion of possible risks and approaches to managing them. Detailed descriptions and plans are not appropriate for this audience. Endorsements are not usually part of a business case, but it would certainly be a good idea to encourage supporters to communicate to management their reasons for support.

An HR data analyst uses internal and external data and translates it into meaningful information to support an operations decision to relocate a distribution center to another state. What term best describes the data analyst's activity? Regression analysis Root cause analysis Business intelligence Delphi technique

Business intelligence Business intelligence allows analysts to retrieve timely, accurate, and complete data and transform that into accurate, actionable information to support decision making.

A clothing retail company in business for over three years has three locations in a popular beach resort area. There are similar retailers in the same area competing for both the customers and labor pool. Recently the company has had extensive growth due to a new clothing design, however, employees are leaving within 90 days of hire. This turnover is now affecting customer satisfaction and increasing the workload on the remaining staff. Most of the management staff started as sales floor employees and received little to no management training. One of the key criteria used in promoting staff is their success on the sales floor, leading to complaints of internal selection unfairness. Recent exit interviews suggest low morale, poor leadership, and lack of work/life balance as the top three reasons for leaving the company. Knowing that there are plans to launch two new product lines in the near future, the CEO has asked the HR director to find a new vendor to provide new employee orientation. Twenty companies have submitted proposals, and the CEO wants a short list in the next two days. Which steps should the HR director take to develop a short list of possible training vendors? Determine, with the CEO, key criteria that should be considered, using this information to narrow the search Rank the companies in regard to their prices and present the five lowest bids Ask for input on the short list from another employee who has done this type of training before Conduct an online search of the best training companies and send the resulting list to the CEO

Determine, with the CEO, key criteria that should be considered, using this information to narrow the search

What type of analytical task would be best served by online analytical processing (OLAP)? Exploring the types of variables that may be affecting attendance rates Trying to establish a declining trend in the use of a wellness program Proving the cost-effectiveness of purchasing an HR application Identifying how many employees have quit in each functional area

Exploring the types of variables that may be affecting attendance rates OLAP allows the analyst to sort data quickly in different ways, according to different and multiple variables. A conventional relational database would be sufficient to identify a trend in one factor or numbers in different departments. A cost-effectiveness analysis could be done on a spreadsheet.

Marketing and IT are collaborating on a new system that will allow customer service representatives to access and change customer accounts directly. Which action should HR take to create value for this effort? Creating of project charter for the team Identifying at what points users need account access Facilitating process training for all users Performing quality control testing before release

Facilitating process training for all users The most logical contribution for HR is to provide appropriate training in the use of the new system. HR could also advise on data privacy issues. Technical issues, such as testing or design, are best left to those who are most familiar with the process. The project charter should be created by the project leader, who, in this case, will probably be from IT or marketing.

An organization who moved to larger facilities and doubled its workforce is still experiencing problems with back orders, resulting in customer dissatisfaction. What phase of the organization/product life cycle is the organization likely in? Growth Maturity Introduction Decline

Growth The growth phase is characterized by change and expansion in terms of facilities, marketing, and people. These resources are needed to keep up with the demand for products or services. This phase is often accompanied by backlogs and scheduling problems while the organization adjusts to increased demands.

The HR director at a large university has been on the job for six months when the university hires a new president. The new president decides that the staff development and advancement program is nonessential and orders the HR director to eliminate the 15 positions associated with the program within the week. The HR director wants to reassign, rather than terminate, employees who will be displaced. Which action should the HR director take to make job reassignments most effectively? Identify positions requiring similar knowledge, skills, and abilities as the employees' current positions. Ask employees what their preferred assignment would be among available positions. Offer early retirement to interested and eligible employees. Ask supervisors of vacant positions at the university to interview employees with the necessary skills and experience.

Identify positions requiring similar knowledge, skills, and abilities as the employees' current positions.

What form of budgeting uses the prior year's budget as the basis for the next budget? Activity-based budgeting Formula budgeting Zero-based budgeting Incremental budgeting

Incremental budgeting Incremental, or line-item budgeting, uses the previous year's budget. The prior budget is simply increased by a set percentage. Additional funds are requested based on need and objectives.

The annual loss ratio for a company's health plan is 158%. The CHRO has been asked by the CEO to propose changes to the plan that will lower costs while retaining as many of the current benefits as possible. A review reveals that the dental and prescription drug coverage account for 84% of the plan's claims and that 3 of their 91 employees account for 73% of the claims. After reviewing a series of benefit options, the CHRO decides that the best option is a plan that doubles the deductibles on the dental and prescription benefits while also lowering the maximum reimbursement coverage by 25%. The CHRO makes a presentation outlining this suggestion to the company's executive committee. After a brief discussion of the rationale and the merits, the COO mentions that the company should announce the plan's changes to employees immediately. The CHRO responds that doing so would defeat the purpose of the changes. Without further discussion, the executive committee proceeds to vote and accept the changes to become effective upon plan renewal the following month. Two months after the introduction of the new plan, it is discovered that two employees made bulk prescription purchases (a six-month supply) one week prior to the changes in the benefit plan going into effect. The CHRO suspects a leak of the confidential information. Why would announcing plan changes to employees in this way be problematic? It would be inappropriate to announce any pending policy changes until they become official and are implemented Incentivizing use just prior to a change could increase the loss ratio even further, requiring even more funding adjustments to make the plan sustainable The terms and conditions of a benefit provider require a blackout period to avoid insider information about the change being leaked The plan's normal renewal date must be allowed to transpire in order to verify, without bias, that yearly use rates are in fact occurring naturally

Incentivizing use just prior to a change could increase the loss ratio even further, requiring even more funding adjustments to make the plan sustainable

A nonprofit social services organization has experienced rapid employee growth and is expanding services into new markets. Performance and service quality assessments, however, are showing quality regression as the organization expands. The CEO and the executive committee are worried about the decline in performance and service quality levels, and suspect the quality of their new hires and/or lack of incentive among employees are to blame. Leadership decided to hire an experienced HR manager to oversee the current HR team of two, in hopes to reverse the downward trend of performance and quality. The HR manager conducts an internal analysis to diagnose the root causes of the service quality decline. The analysis uncovers several critical problem areas to be addressed, including vague job descriptions, a lack of formal orientation, low base pay, an ineffective performance review program, and the lack of a recognition and awards program. The changes will require additional resources and significant financial investment. A member of the executive committee proposes to terminate all current employees and start over with ones who are better qualified, believing that starting from scratch would be cheaper than fixing the identified problems. The HR manager needs to define key metrics to show the return on investment for the proposed HR solutions. Which of the following would be the most critical indicator? Turnover rate Ratio of HR to employee Training completion rates Quality of service

Quality of service

The HR director at a large university has been on the job for six months when the university hires a new president. The new president decides that the staff development and advancement program is nonessential and orders the HR director to eliminate the 15 positions associated with the program within the week. Which action should the HR director take to influence the president to reconsider eliminating these positions? Schedule a meeting with the president to discuss the importance of investing in employee development and advancement. Propose a plan to reassign the affected employees to other departments within the university. Meet with the president to discuss the strategic direction of the HR department. Encourage the president to consider the cultural impact of this action on all university employees.

Schedule a meeting with the president to discuss the importance of investing in employee development and advancement.

What is the key benefit of an enterprise resource planning (ERP) system over function-based stand-alone systems? User-customized data interfaces for greater security Forecasting capabilities to run planning scenarios Greater analytical power and capabilities Shared, current database for all departments

Shared, current database for all departments An ERP integrates current data from across an organization's functional areas, while a stand-alone system would require a customized bridge to access the ERP database. While integrated data enables a more thorough analysis, stand-alone systems can provide significant analytical power. Customization and forecasting can be performed in integrated and stand-alone systems.

The HR director at a large university has been on the job for six months when the university hires a new president. The new president decides that the staff development and advancement program is nonessential and orders the HR director to eliminate the 15 positions associated with the program within the week. How should the HR director communicate the reduction in force to affected employees? Call a meeting with the HR department to share the information. Tell each impacted employee individually and explain his or her options. Provide guidance to the affected employees' supervisors on how to relay the information. Ask the president to address the decision at the next university-wide meeting.

Tell each impacted employee individually and explain his or her options.

What is the most accurate characterization of business value? Value is a concern for leaders more than employees. Value is determined by external stakeholders and experts. Value is measured by financial performance. Value may be defined differently between organizations.

Value may be defined differently between organizations. Because value is tied to an organization's mission, the definition of value will vary. It may not be solely financial and may depend on internal assessment rather than external judges. The need to create the desired value must be communicated to and understood by the entire organization.

The annual loss ratio for a company's health plan is 158%. The CHRO has been asked by the CEO to propose changes to the plan that will lower costs while retaining as many of the current benefits as possible. A review reveals that the dental and prescription drug coverage account for 84% of the plan's claims and that 3 of their 91 employees account for 73% of the claims. After reviewing a series of benefit options, the CHRO decides that the best option is a plan that doubles the deductibles on the dental and prescription benefits while also lowering the maximum reimbursement coverage by 25%. The CHRO makes a presentation outlining this suggestion to the company's executive committee. After a brief discussion of the rationale and the merits, the COO mentions that the company should announce the plan's changes to employees immediately. The CHRO responds that doing so would defeat the purpose of the changes. Without further discussion, the executive committee proceeds to vote and accept the changes to become effective upon plan renewal the following month. Two months after the introduction of the new plan, it is discovered that two employees made bulk prescription purchases (a six-month supply) one week prior to the changes in the benefit plan going into effect. The CHRO suspects a leak of the confidential information. How should the company react to the employees who are using the benefits excessively? Wait until the plan changes are in effect and then hold a company-wide meeting using aggregated data to explain why the changes are necessary Confidentially meet with the employees responsible and advise them that their use was the main reason why the plan had to change for everyone Issue disciplinary action to those employees who have used the benefits in excess of normal use Nothing should be done; the plan should be changed and no reason should be given to the employees

Wait until the plan changes are in effect and then hold a company-wide meeting using aggregated data to explain why the changes are necessary

What budgeting method is based on how much it costs to perform different enterprise activities and allocates funding according to the strategic significance of the activities? Incremental Formula Activity-based Zero-based

Activity-based Activity-based budgeting recognizes the interrelationships among various activities required to create value in an organization. It is based on how much it costs to perform different enterprise activities. Funding may be allocated based on the strategic significance of the activities.

The owner of a small start-up company has highly compensated employees but no benefits package. As the organization and staff grows, the owner is pressured to implement a benefits package in addition to direct compensation. The owner is not knowledgeable about benefits, and has made the decision to hire an HR generalist to handle benefits and other HR functions. The HR generalist's first priority is to make recommendations about a benefits package that will attract and retain top talent while being fiscally responsible. The growth plan for the organization is to grow globally and engage in a global recruitment, selection, and hiring strategy. The HR generalist needs to create a total compensation package that will be relevant in all locations globally. The HR generalist has conducted a survey asking about the types of benefits employees want. The survey results indicate that employees are seeking ways to balance their work and home life.. How should the HR generalist handle this feedback? Align offered benefits with the organizational strategy, culture, and employee desires Since this is an internal survey, no action is expected , but it is good for the company to solicit input Review external surveys to determine the types of work/life benefits other organizations offer Recognize that these types of benefits are appreciated by employees, but a growing organization cannot afford them

Align offered benefits with the organizational strategy, culture, and employee desires

Which best demonstrates the outcome of zero-based budgeting in regard to HR's budget? All new projects will be postponed immediately. Balances for ongoing projects from previous periods will be carried over. All expenditures will need to be justified when building the budget. The budget will have no growth.

All expenditures will need to be justified when building the budget. In an organization using zero-based budgeting, each function, begins with zero funds and must justify the strategic importance of each item in its budget. Funds are not carried over. Budgets are not necessarily frozen or decreased but could increase, especially if new projects are deemed strategically important.

What is a business case? Cost-benefit analysis of a business concept Scenario-based test of a business plan Market research into acceptability of a new service or product Analysis of a problem and possible solutions

Analysis of a problem and possible solutions A business case is a request for the allocation of resources to implement a solution to a problem, or a plan to take advantage of an opportunity. Strong business cases are aligned with the organization's strategy and include a cost-benefit analysis of alternative solutions to the problem or opportunity, including taking no action. The business case usually includes discussion of risks. A cost-benefit analysis is not a business case but is an important part of a business case. Market research may be an input into the business case analysis. A scenario-based test would project the results of a business plan under different sets of variables (e.g., supply prices, market share).

A clothing retail company in business for over three years has three locations in a popular beach resort area. There are similar retailers in the same area competing for both the customers and labor pool. Recently the company has had extensive growth due to a new clothing design, however, employees are leaving within 90 days of hire. This turnover is now affecting customer satisfaction and increasing the workload on the remaining staff. Most of the management staff started as sales floor employees and received little to no management training. One of the key criteria used in promoting staff is their success on the sales floor, leading to complaints of internal selection unfairness. Recent exit interviews suggest low morale, poor leadership, and lack of work/life balance as the top three reasons for leaving the company. Knowing that there are plans to launch two new product lines in the near future, the CEO has asked the HR director to find a new vendor to provide new employee orientation. Twenty companies have submitted proposals, and the CEO wants a short list in the next two days. Which action should the HR director take first to create a robust workforce plan that addresses the expected organizational growth? Review environmental conditions in regard to expected tourists and expected sales growth, and calculate the number of employees needed Review internal turnover, promotions, and transfer data to calculate the number of employees needed to meet future staffing needs Ensure that all recruiters are well trained in sourcing and selecting qualified applicants for a retail sales organization Analyze current labor trends along with internal staffing metrics to ensure appropriate staffing levels to meet expected organizational growth

Analyze current labor trends along with internal staffing metrics to ensure appropriate staffing levels to meet expected organizational growth

A renowned financial institution, a former leader in the financial market, is now facing decelerated growth. Its product portfolio lacks innovation compared to that of competitors. Although the institution was once a favorite place to work, recently HR has been facing issues attracting top talent, and time-to-hire metrics have deteriorated. A technology gap between the leadership and the employees is beginning to widen. The founder, who is very sales-oriented, is not an early adopter when it comes to technology. Since his client relationships all began with face-to-face contact, he is wary that technology removes the personal element. To create a more collaborative culture and social learning environment, the HR talent development lead (TDL) wants to foster a culture of learning and innovation. This will require a change in corporate culture and a significant investment in new technology. Despite a recent upgrade, the learning management system (LMS) still feels outdated, sluggish, and static. The TDL believes that a new LMS with more powerful social learning technologies will be critical for attracting and retaining top talent, capturing the attention of a broader and rapidly changing demographic, and meeting their demands. The workforce is around 40% Millennials, compared with 10% just five years ago. The TDL understands that cross-functional collaboration will be required to sort out the features needed to support the organization's learning management system. What is the best way to organize the right cross-functional team? Assemble a team including senior functional leaders and younger managers with an interest in diversity and innovation. Contact analogous organizations and implement the exact features they are using. Ask the senior leaders who they would like to see on the cross-functional team. To save time, limit the team to tech-savvy employees who already understand LMS trends and applications.

Assemble a team including senior functional leaders and younger managers with an interest in diversity and innovation.

The owner of a small start-up company has highly compensated employees but no benefits package. As the organization and staff grows, the owner is pressured to implement a benefits package in addition to direct compensation. The owner is not knowledgeable about benefits, and has made the decision to hire an HR generalist to handle benefits and other HR functions. The HR generalist's first priority is to make recommendations about a benefits package that will attract and retain top talent while being fiscally responsible. The growth plan for the organization is to grow globally and engage in a global recruitment, selection, and hiring strategy. The HR generalist needs to create a total compensation package that will be relevant in all locations globally. A newly hired employee who is not married but has a domestic partner has requested that the partner be covered through the organization's health insurance. Currently, the organization's health insurance covers spouses but not domestic partners. How should the HR generalist handle the request? Audit the current policy for fairness and present a business case to the owner to change the rule Tell the employee to contact the insurance company since HR cannot do anything about it Allow the employee to add the domestic partner to the health insurance by enrolling the partner as a spouse Contact the insurance company and change the policy to allow domestic partners to be covered

Audit the current policy for fairness and present a business case to the owner to change the rule

A nonprofit social services organization has experienced rapid employee growth and is expanding services into new markets. Performance and service quality assessments, however, are showing quality regression as the organization expands. The CEO and the executive committee are worried about the decline in performance and service quality levels, and suspect the quality of their new hires and/or lack of incentive among employees are to blame. Leadership decided to hire an experienced HR manager to oversee the current HR team of two, in hopes to reverse the downward trend of performance and quality. The HR manager conducts an internal analysis to diagnose the root causes of the service quality decline. The analysis uncovers several critical problem areas to be addressed, including vague job descriptions, a lack of formal orientation, low base pay, an ineffective performance review program, and the lack of a recognition and awards program. The changes will require additional resources and significant financial investment. A member of the executive committee proposes to terminate all current employees and start over with ones who are better qualified, believing that starting from scratch would be cheaper than fixing the identified problems. Which action should the HR manager take in order to ensure that employees understand what is expected of them and how the new performance management system will work? Create a web page with details about the performance management program available to employees once the new program is ready to roll out E-mail all employees to inform them to chat with their supervisor about the company changes or to talk to HR about any questions Conduct a communication campaign that includes ongoing communications for all employees and training for supervisors to reinforce with their direct reports Host a meeting in order to educate all the supervisors

Conduct a communication campaign that includes ongoing communications for all employees and training for supervisors to reinforce with their direct reports

The owner of a small start-up company has highly compensated employees but no benefits package. As the organization and staff grows, the owner is pressured to implement a benefits package in addition to direct compensation. The owner is not knowledgeable about benefits, and has made the decision to hire an HR generalist to handle benefits and other HR functions. The HR generalist's first priority is to make recommendations about a benefits package that will attract and retain top talent while being fiscally responsible. The growth plan for the organization is to grow globally and engage in a global recruitment, selection, and hiring strategy. The HR generalist needs to create a total compensation package that will be relevant in all locations globally. The benefits package was implemented 1 year ago and the HR generalist has been asked by the owner to provide feedback regarding the success of the package. Which is the best first step to provide this feedback? Compare the rate of turnover this year to prior years Conduct a survey of the employees to obtain feedback on the benefits package Conduct a gap analysis and a utilization review Tell the owner that it is too soon to provide feedback

Conduct a gap analysis and a utilization review

A clothing retail company in business for over three years has three locations in a popular beach resort area. There are similar retailers in the same area competing for both the customers and labor pool. Recently the company has had extensive growth due to a new clothing design, however, employees are leaving within 90 days of hire. This turnover is now affecting customer satisfaction and increasing the workload on the remaining staff. Most of the management staff started as sales floor employees and received little to no management training. One of the key criteria used in promoting staff is their success on the sales floor, leading to complaints of internal selection unfairness. Recent exit interviews suggest low morale, poor leadership, and lack of work/life balance as the top three reasons for leaving the company. Knowing that there are plans to launch two new product lines in the near future, the CEO has asked the HR director to find a new vendor to provide new employee orientation. Twenty companies have submitted proposals, and the CEO wants a short list in the next two days. Based on the current turnover and lack of management training, what should the HR director do first as part of a needs analysis? Facilitate management focus groups to evaluate the company's compensation, rewards, and incentive programs Conduct a job analysis for all management positions to ensure that job descriptions and specifications are appropriate Analyze exit interviews from managers who have left recently Review customer satisfaction results and use these to guide the development of the training curriculum

Conduct a job analysis for all management positions to ensure that job descriptions and specifications are appropriate

The annual loss ratio for a company's health plan is 158%. The CHRO has been asked by the CEO to propose changes to the plan that will lower costs while retaining as many of the current benefits as possible. A review reveals that the dental and prescription drug coverage account for 84% of the plan's claims and that 3 of their 91 employees account for 73% of the claims. After reviewing a series of benefit options, the CHRO decides that the best option is a plan that doubles the deductibles on the dental and prescription benefits while also lowering the maximum reimbursement coverage by 25%. The CHRO makes a presentation outlining this suggestion to the company's executive committee. After a brief discussion of the rationale and the merits, the COO mentions that the company should announce the plan's changes to employees immediately. The CHRO responds that doing so would defeat the purpose of the changes. Without further discussion, the executive committee proceeds to vote and accept the changes to become effective upon plan renewal the following month. Two months after the introduction of the new plan, it is discovered that two employees made bulk prescription purchases (a six-month supply) one week prior to the changes in the benefit plan going into effect. The CHRO suspects a leak of the confidential information. Which is the first step the CHRO should take to handle the suspected leak of confidential information? Since there is no proof that a leak occurred, no action can be taken Confidentially interview the employees who used the benefits just prior to the changes to assess their rationale Ask the executive committee to hold an emergency meeting to investigate who leaked the information about the benefit plan changes Suspend the COO for leaking confidential information about a pending policy change

Confidentially interview the employees who used the benefits just prior to the changes to assess their rationale

A renowned financial institution, a former leader in the financial market, is now facing decelerated growth. Its product portfolio lacks innovation compared to that of competitors. Although the institution was once a favorite place to work, recently HR has been facing issues attracting top talent, and time-to-hire metrics have deteriorated. A technology gap between the leadership and the employees is beginning to widen. The founder, who is very sales-oriented, is not an early adopter when it comes to technology. Since his client relationships all began with face-to-face contact, he is wary that technology removes the personal element. To create a more collaborative culture and social learning environment, the HR talent development lead (TDL) wants to foster a culture of learning and innovation. This will require a change in corporate culture and a significant investment in new technology. Despite a recent upgrade, the learning management system (LMS) still feels outdated, sluggish, and static. The TDL believes that a new LMS with more powerful social learning technologies will be critical for attracting and retaining top talent, capturing the attention of a broader and rapidly changing demographic, and meeting their demands. The workforce is around 40% Millennials, compared with 10% just five years ago. How can the TDL ensure that the LMS is consistently and widely used and supports the cost of investment? Contract with an LMS vendor to set up a hotline to answer all questions related to information seeking and sharing with the new technology. Require IT department employees to field calls and answer all questions from other employees on a rotating basis. Do nothing and assume that the LMS will eventually be consistently and widely used since it has so many benefits. Create an effective communication plan so employees are aware of the benefits the new LMS offers and implement incentives for using the LMS.

Create an effective communication plan so employees are aware of the benefits the new LMS offers and implement incentives for using the LMS.

A nonprofit social services organization has experienced rapid employee growth and is expanding services into new markets. Performance and service quality assessments, however, are showing quality regression as the organization expands. The CEO and the executive committee are worried about the decline in performance and service quality levels, and suspect the quality of their new hires and/or lack of incentive among employees are to blame. Leadership decided to hire an experienced HR manager to oversee the current HR team of two, in hopes to reverse the downward trend of performance and quality. The HR manager conducts an internal analysis to diagnose the root causes of the service quality decline. The analysis uncovers several critical problem areas to be addressed, including vague job descriptions, a lack of formal orientation, low base pay, an ineffective performance review program, and the lack of a recognition and awards program. The changes will require additional resources and significant financial investment. A member of the executive committee proposes to terminate all current employees and start over with ones who are better qualified, believing that starting from scratch would be cheaper than fixing the identified problems. How should the HR manager respond to the executive who proposes to terminate current employees and start over by hiring new employees? Explain that the organization will not be able to afford the best-qualified candidates in the marketplace because they are not affordable Agree with the executive committee member and immediately begin to prepare severance agreements to terminate the impacted employees Demonstrate the projected costs related to building a new workforce vs. training the existing workforce Respectfully disagree with the executive committee member and ask that a supportive executive have a talk with the member

Demonstrate the projected costs related to building a new workforce vs. training the existing workforce

A nonprofit social services organization has experienced rapid employee growth and is expanding services into new markets. Performance and service quality assessments, however, are showing quality regression as the organization expands. The CEO and the executive committee are worried about the decline in performance and service quality levels, and suspect the quality of their new hires and/or lack of incentive among employees are to blame. Leadership decided to hire an experienced HR manager to oversee the current HR team of two, in hopes to reverse the downward trend of performance and quality. The HR manager conducts an internal analysis to diagnose the root causes of the service quality decline. The analysis uncovers several critical problem areas to be addressed, including vague job descriptions, a lack of formal orientation, low base pay, an ineffective performance review program, and the lack of a recognition and awards program. The changes will require additional resources and significant financial investment. A member of the executive committee proposes to terminate all current employees and start over with ones who are better qualified, believing that starting from scratch would be cheaper than fixing the identified problems. The HR manager has identified several problems that need to be solved, which should they do first? Conduct a job analysis to develop revised job descriptions that outline the work and necessary qualifications Procure training programs specific to social service workers and implement them immediately to ensure that all workers have the needed skills Share the findings with all employees to determine next steps and an immediate action plan Develop a talent management strategy to hire and train qualified staff, establish performance expectations, and reward high-performing employees

Develop a talent management strategy to hire and train qualified staff, establish performance expectations, and reward high-performing employees

A clothing retail company in business for over three years has three locations in a popular beach resort area. There are similar retailers in the same area competing for both the customers and labor pool. Recently the company has had extensive growth due to a new clothing design, however, employees are leaving within 90 days of hire. This turnover is now affecting customer satisfaction and increasing the workload on the remaining staff. Most of the management staff started as sales floor employees and received little to no management training. One of the key criteria used in promoting staff is their success on the sales floor, leading to complaints of internal selection unfairness. Recent exit interviews suggest low morale, poor leadership, and lack of work/life balance as the top three reasons for leaving the company. Knowing that there are plans to launch two new product lines in the near future, the CEO has asked the HR director to find a new vendor to provide new employee orientation. Twenty companies have submitted proposals, and the CEO wants a short list in the next two days. An applicant from a local competitor has offered to give the HR director information on the competitor's salary and benefits upon hire. Which action should the HR director take in response to this offer? Do not hire the candidate, indicating that the company does not participate in unethical behavior Use this information to help create a strategy to reduce turnover Ask for the information to create a more robust retention strategy once the person is hired Decline the candidate; however, offer compensation in exchange for the information

Do not hire the candidate, indicating that the company does not participate in unethical behavior

The owner of a small start-up company has highly compensated employees but no benefits package. As the organization and staff grows, the owner is pressured to implement a benefits package in addition to direct compensation. The owner is not knowledgeable about benefits, and has made the decision to hire an HR generalist to handle benefits and other HR functions. The HR generalist's first priority is to make recommendations about a benefits package that will attract and retain top talent while being fiscally responsible. The growth plan for the organization is to grow globally and engage in a global recruitment, selection, and hiring strategy. The HR generalist needs to create a total compensation package that will be relevant in all locations globally. The HR generalist is charged with recommending a benefits package that will attract and retain talent. How should they begin the process? Contract with a third-party benefits administration company to identify and implement a benefits package Gather data through a needs assessment to identify what benefits are needed and match them to the overall organizational strategy Set up employee task force groups to develop outlines of the employee benefit plans most desired by the workforce Survey all employees in the company and implement and secure benefits plans to meet majority needs

Gather data through a needs assessment to identify what benefits are needed and match them to the overall organizational strategy

A large clothing company has a bad reputation because of its hiring practices, its treatment of employees, and its lack of support to the communities it operates in. The CEO and senior managers are known to make decisions based solely on revenue potential, without regard for the impact it may have on society. In fact, the CEO has commented several times that investing money in anything other than operations is a bad business strategy and unethical in terms of the company's obligation to its investors. Recently, major suppliers for the company, located outside the company's home country, were accused of unethical labor practices, unsafe workplace conditions, and possible human rights violations. This has become a public relations nightmare. Several groups have called for boycotts against the company. At the last shareholders' phone conference, several institutional investors expressed their displeasure with management's failure to respond strongly to the problems with suppliers. The CEO expressed his belief that critics were being unrealistic about their expectations for the suppliers. In fact, they were themselves insensitive to business practices and local norms in these countries. Concerned with the negative publicity and lacking confidence in the CEO's response to it, the company's board of directors requests that the CHRO immediately be given the task of formulating a committee to audit the company's operating practices, its employer branding, and its attitude on social issues. This action would at least show that the company has heard the criticisms. While the company's leadership is struggling with this issue, the CHRO receives an urgent call from the global head of recruiting. Recruiters report that their appearance at job fairs has been met with what seems to be organized demonstrations. The fairs have produced very few prospective candidates. The recruiting head asks what the CHRO wants them to do. How should the CHRO respond? Hold off on appearances at job fairs for now and focus on using recruiting firms. Report this to the CEO as an example of what the company is doing wrong. Have recruiting directors contact local law authorities and the security directors for the fair venues and demand better protection. Tell the recruiters to persist and to project a professional demeanor at all times.

Hold off on appearances at job fairs for now and focus on using recruiting firms.

At a staffing agency, recruiters are facing a challenge in finding high-quality candidates. Additionally, the recruiters adhere to an unwritten rule that they should not contact candidates who have already worked with other recruiters within the agency. A new recruiter corresponds with a candidate who was previously in communication with a veteran recruiter. The two recruiters get into an argument, and the recruitment manager tries to intervene. The new recruiter claims not knowing about this unwritten rule and challenges the rule's efficacy. The veteran recruiter says that the unwritten rule is explained during the onboarding process. The agency implements a new initiative to increase the quality of candidates. How should the HR manager evaluate the effectiveness of the initiative? Meet with the recruitment manager to discuss observed changes. Survey all hiring managers about changes in the quality of job candidates since the initiative's launch. Track the performance of new candidates in their placements. Identify the number of successful placements before and after the initiative.

Identify the number of successful placements before and after the initiative.

The annual loss ratio for a company's health plan is 158%. The CHRO has been asked by the CEO to propose changes to the plan that will lower costs while retaining as many of the current benefits as possible. A review reveals that the dental and prescription drug coverage account for 84% of the plan's claims and that 3 of their 91 employees account for 73% of the claims. After reviewing a series of benefit options, the CHRO decides that the best option is a plan that doubles the deductibles on the dental and prescription benefits while also lowering the maximum reimbursement coverage by 25%. The CHRO makes a presentation outlining this suggestion to the company's executive committee. After a brief discussion of the rationale and the merits, the COO mentions that the company should announce the plan's changes to employees immediately. The CHRO responds that doing so would defeat the purpose of the changes. Without further discussion, the executive committee proceeds to vote and accept the changes to become effective upon plan renewal the following month. Two months after the introduction of the new plan, it is discovered that two employees made bulk prescription purchases (a six-month supply) one week prior to the changes in the benefit plan going into effect. The CHRO suspects a leak of the confidential information. Which is the best reason the company should remain with the benefit provider? A request for proposal to find a new benefit provider can take several months to finalize and may not provide a comparable plan at a cheaper rate. It is unlikely that another benefit provider would accept the company's business without a thorough analysis of the previous year's use rates. To ensure a minimum break-even, any new insurance provider will quote and charge at a rate that is equal to or more than that of the previous provider. If benefit entitlements remain similar, finding and using a new benefit provider would not address the root cause as measured by the loss ratio.

If benefit entitlements remain similar, finding and using a new benefit provider would not address the root cause as measured by the loss ratio.

At a staffing agency, recruiters are facing a challenge in finding high-quality candidates. Additionally, the recruiters adhere to an unwritten rule that they should not contact candidates who have already worked with other recruiters within the agency. A new recruiter corresponds with a candidate who was previously in communication with a veteran recruiter. The two recruiters get into an argument, and the recruitment manager tries to intervene. The new recruiter claims not knowing about this unwritten rule and challenges the rule's efficacy. The veteran recruiter says that the unwritten rule is explained during the onboarding process. The recruitment manager approaches the HR manager for help with attracting high-quality candidates. What guidance should the HR manager provide? Advise the recruitment manager to review the job descriptions and update as needed. Recommend evaluating the effectiveness of the agency's recruitment processes and tools. Analyze the recruitment strategies used by veteran recruiters compared with new recruiters. Suggest that the recruitment manager examine recent trends in the fields and jobs candidates are pursuing.

Recommend evaluating the effectiveness of the agency's recruitment processes and tools.

A large clothing company has a bad reputation because of its hiring practices, its treatment of employees, and its lack of support to the communities it operates in. The CEO and senior managers are known to make decisions based solely on revenue potential, without regard for the impact it may have on society. In fact, the CEO has commented several times that investing money in anything other than operations is a bad business strategy and unethical in terms of the company's obligation to its investors. Recently, major suppliers for the company, located outside the company's home country, were accused of unethical labor practices, unsafe workplace conditions, and possible human rights violations. This has become a public relations nightmare. Several groups have called for boycotts against the company. At the last shareholders' phone conference, several institutional investors expressed their displeasure with management's failure to respond strongly to the problems with suppliers. The CEO expressed his belief that critics were being unrealistic about their expectations for the suppliers. In fact, they were themselves insensitive to business practices and local norms in these countries. Concerned with the negative publicity and lacking confidence in the CEO's response to it, the company's board of directors requests that the CHRO immediately be given the task of formulating a committee to audit the company's operating practices, its employer branding, and its attitude on social issues. This action would at least show that the company has heard the criticisms. What would be the most effective tactic in persuading the CEO to accept the audit? Refer to examples of competitors who have met both financial and corporate social responsibility (CSR) objectives. Give specific examples of the impact that the publicity has had on hiring. Ask the CEO to remember their joint commitment to doing what is in the organization's best interest. Assure the CEO that all recommendations will be reviewed by the organization's legal representatives.

Refer to examples of competitors who have met both financial and corporate social responsibility (CSR) objectives.

The HR director at a large university has been on the job for six months when the university hires a new president. The new president decides that the staff development and advancement program is nonessential and orders the HR director to eliminate the 15 positions associated with the program within the week. Which action should the HR director take to reduce the negative effects the reduction in force will have on morale? Schedule one-on-one meetings with department employees to address their questions and concerns. Elaborate on why the reduction in force was necessary. Conduct team-building exercises to strengthen relationships within the HR department. Call a staff meeting to explain that every effort is being made to place affected employees in other positions at the university.

Schedule one-on-one meetings with department employees to address their questions and concerns.

At a staffing agency, recruiters are facing a challenge in finding high-quality candidates. Additionally, the recruiters adhere to an unwritten rule that they should not contact candidates who have already worked with other recruiters within the agency. A new recruiter corresponds with a candidate who was previously in communication with a veteran recruiter. The two recruiters get into an argument, and the recruitment manager tries to intervene. The new recruiter claims not knowing about this unwritten rule and challenges the rule's efficacy. The veteran recruiter says that the unwritten rule is explained during the onboarding process. The HR manager wants to evaluate the benefits of the unwritten rule about contacting candidates. Which step is most effective for the HR manager to take to obtain feedback? Ask the recruitment manager for input on the possible benefits of the unwritten rule. Conduct a meeting with all new recruiters to learn about their opinions on the benefits of the unwritten rule. Facilitate a discussion with new and veteran recruiters to evaluate the benefits of the unwritten rule. Send an anonymous survey to all recruiters in the company to obtain feedback on the benefits of the unwritten rule.

Send an anonymous survey to all recruiters in the company to obtain feedback on the benefits of the unwritten rule.

A renowned financial institution, a former leader in the financial market, is now facing decelerated growth. Its product portfolio lacks innovation compared to that of competitors. Although the institution was once a favorite place to work, recently HR has been facing issues attracting top talent, and time-to-hire metrics have deteriorated. A technology gap between the leadership and the employees is beginning to widen. The founder, who is very sales-oriented, is not an early adopter when it comes to technology. Since his client relationships all began with face-to-face contact, he is wary that technology removes the personal element. To create a more collaborative culture and social learning environment, the HR talent development lead (TDL) wants to foster a culture of learning and innovation. This will require a change in corporate culture and a significant investment in new technology. Despite a recent upgrade, the learning management system (LMS) still feels outdated, sluggish, and static. The TDL believes that a new LMS with more powerful social learning technologies will be critical for attracting and retaining top talent, capturing the attention of a broader and rapidly changing demographic, and meeting their demands. The workforce is around 40% Millennials, compared with 10% just five years ago. The TDL knows that championing creativity and innovation in a risk-averse industry is a challenge because this behavior is usually not promoted or rewarded. How should the talent development lead position the proposed LMS to gain leadership commitment for investing in this new technology? Task the Millennial leaders with researching LMS capabilities and trends and preparing a presentation for the founder, leaders, and stakeholders. Survey the founder and senior leaders to gather their thoughts and feelings about how the LMS should support operations. Show how the LMS can effectively use technology, trends, and innovations to support the organizational strategy. Implement the new LMS and, after usage data is gathered, then demonstrate its benefits.

Show how the LMS can effectively use technology, trends, and innovations to support the organizational strategy.

At a staffing agency, recruiters are facing a challenge in finding high-quality candidates. Additionally, the recruiters adhere to an unwritten rule that they should not contact candidates who have already worked with other recruiters within the agency. A new recruiter corresponds with a candidate who was previously in communication with a veteran recruiter. The two recruiters get into an argument, and the recruitment manager tries to intervene. The new recruiter claims not knowing about this unwritten rule and challenges the rule's efficacy. The veteran recruiter says that the unwritten rule is explained during the onboarding process. The recruitment manager asks the HR manager to discipline the new recruiter. How should the HR manager respond? Suggest adding the unwritten rule to the policy to avoid this situation in the future. Suggest that the two recruiters work together on this candidate. Facilitate a meeting between the new and veteran recruiters. Recommend that the recruitment manager remind the new recruiter of unwritten expectations.

Suggest adding the unwritten rule to the policy to avoid this situation in the future.