Post Test Questions

Which action would ensure global assignment success? *W

Send assignees on international assignments to manage a specific project. - For an initial foray into overseas assignments, assignees in organizations with a multidomestic or international strategy should be sent on short-term projects or to complete a specific job.

How would Trompenaars and Hampden-Turner label a culture in which individuals express their emotions freely? *W

In an affective culture, people feel free to express their emotions; the opposite of an affective culture is a neutral culture. A particular culture is flexible and pragmatic, comfortable with ambiguity. A synchronic culture believes that the past and the present are as important as the future—possibly more important. Schedules can be subordinated to tending to a relationship or participating in a ritual. An external culture is fatalistic. People can adapt to nature; they cannot dominate it.

An organization has had difficulty sustaining its diversity and inclusion effort during economic downturns and has experienced resistance from managers and employees alike. What might be recommended to help this organization?

Increased alignment between business strategy and diversity initiatives - Diversity and inclusion initiatives will falter unless they are aligned with business strategy.

An organization has announced that no salary increases above 1.5% will be allowed and budgets should be set accordingly. What would be a likely impact on HR's budget? *W

Increased budget for additional benefit programs - The organization will probably need to look at other ways to attract and retain employees, such as more creative, customized benefit programs. The salary cap will not necessarily affect hiring needs and HR staffing and operating costs. Nor will it directly affect capital expenditures, such as the self-service center, that may support the organization's business strategy by, for example, increasing operational efficiency.

An HR manager uses interactive meeting software to allow a team to review and change a document during a virtual meeting. Changes are shown as markups to all other meeting participants. Participants are then asked to comment on the changes and their implications. What do these comments create?

A feedback loop is an important part of the communications model. It forms a self-correcting cycle as the message received is cycled back to the sender. The group discussion of the changes made helps confirm understanding and acceptance of the intended communication.

Which issue identified during an environmental scan for a small, family-owned grocery store represents a threat to its competitive strategy? *W

A gas station on the next block has expanded to include a new convenience store. - In the SWOT analysis, threats are an indication of possible danger, harm, or menace. When considering competitive strategy, a similar business nearby that offers additional and differentiated value to customers is a direct threat that must considered in strategic planning. Even though it is close, the ethnic foods grocery store is appealing to different customers or customer needs. The fee and rate increases appliy to all similar competitors,

How should human resources work collaboratively with internal legal counsel in developing the RIF plan?

A is correct. HR works with legal to analyze issues, discuss concerns, and incorporate legal recommendations. B is incorrect. Only after issues have been analyzed can HR work with legal to advise senior management. C is incorrect. Asking legal to handle the issue lacks leadership. D is incorrect. Internal legal counsel has a significant role in the process to ensure legal compliance.

Which is the best strategy a compensation director should use when there has been movement in the market rates of key positions that need to be filled quickly? *W

Age the salary data. - Aging data addresses movement in market rates by adjusting outdated data.

Many of the direct costs that the new CEO chooses to cut directly affect employees, and morale in the company drops. Employees claim that the company has lost its identity. What should the CHRO suggest to the CEO?

A is correct. Having in-person and transparent discussions between the CEO and employees, so he can explain the business rationale and necessity for fixed expense reduction firsthand, is critical. Face-to-face communication is always the preferred approach so as to be able to more effectively share messages and reduce the opportunity for noise to negatively impact the message(s) being delivered. B is incorrect, because it does not provide opportunity for immediate feedback from employees. The CEO's ability to listen and respond to the comments is critical. C is incorrect. It does gather feedback from employees but does not open a two-way dialogue between management and employees. D is incorrect. The critical decision has been made, and its effects have to be managed now. This choice avoids the challenge of managing this change.

Which piece of information should the HR director collect first to investigate the incident?

A is correct. The first step in any investigation is to collect facts and objective information in order to determine, if possible, what exactly occurred and what course of action should be taken to address or remedy the situation. B, C, and D are incorrect. These may be used to corroborate the statements made by those directly involved in the incident.

What should the HR consultant do to most effectively gain the leadership team's trust? *W

A is correct. The foundation of trust begins with an effective approach to building relationships. This, however, will take time and effort on the part of the HR consultant. A good first step is to open the lines of communication and ensure that she truly understands the needs and concerns of the leaders so they can respond to those appropriately. This starts with actively listening. B is incorrect, because it is not a two-way communication and because it relies solely on the consultant's expert power. C and D are incorrect. While a checklist and a list of risks may be valuable later, when trust has been established, the consultant needs to create that trust level first—generally by listening and developing relationships.

How can HR minimize the risk of possible discrimination complaints or lawsuits filed against the company by laid-off employees? *W

A is correct. Using advanced analytics to assess the impact of the layoff decisions on protected class groups will help evaluate the extent of the company's possible exposure in this area. B is incorrect. The internal diversity profile does not actually assess risk. C is incorrect. Outsourcing to legal shows poor leadership. D is incorrect. Risk may not always be apparent.

Knowing that the leadership team doesn't see the value in employee surveys, how should the HR director handle the next employee survey cycle?

A is the correct answer. Because the leadership team questions the value of the employee surveys, it is best to engage them in the planning process to help secure their buy-in. Gathering their feedback can start this process. B is incorrect. Presenting the results to the leadership team and offering solutions is certainly important, but since they are unsupportive of the process based on experience, the HR director may not get a favorable response. C is incorrect. This response is likely what has happened in the past and why the leadership team is not supportive of the surveys. The results of the employee survey should be analyzed and shared with the entire leadership team, not just the CEO. D is incorrect. This would only reinforce their dislike and distrust in the surveys.

What action should the HR director take regarding the receptionist's lack of professionalism?

A is the correct response. In order to determine the appropriate course of action, the HR manager needs to share the situation with the receptionist's supervisor so that the HR manager can better understand if this is an isolated incident or a pattern of behavior. B is incorrect. Discussing expectations and providing feedback will be more objective than talking about personal emotions. C is incorrect, as addressing this is up to the receptionist's supervisor. D is incorrect. Until the conversation between the receptionist and the supervisor occurs, it is impossible to determine if training is the correct option for addressing the behavior.

Why might an employer choose to accept a union?

A union is a useful way to organize complex bodies of employees. - In some workplaces, unions can help employers communicate more quickly and clearly and implement actions in a more coordinated manner.

The leader of an HR function is committed to developing a strong pipeline of future HR leaders. One employee with leadership potential is a mid-level manager. What type of development opportunity would prepare this employee to become a senior-level manager? *W

Acting as HR liaison to the finance function - As a leader develops, activity becomes more strategic, visible, and innovative. Acting as liaison to another function expands responsibility and provides opportunity for problem solving. Providing strategic alignment of existing policies would be an opportunity to develop mid-level leadership competencies. Conducting a process analysis is a good way to develop lower-level competencies. Shadowing an executive provides knowledge but not an opportunity to develop a competency.

Which organization has evolved farthest on the CSR maturity curve?curve? *W

An organization aligns its value with CSR principles, promoting this identification to stakeholders. - The most evolved organizations on the CSR curve have been transformed: they have redefined the value they create through their products or services to align with CSR principles, and they use this as a way to compete. More evolved organizations on the CSR maturity curve have integrated CSR principles into their policies, systems, and processes--for example, into performance management systems. The least evolved organizations adopt CSR for reactive reasons (to comply with regulations or other requirements).

HR wants to ensure that the integration team has the right talent to achieve the team's assigned goals. Which step should HR take to staff the team with the appropriate skills and experience?

Ask each of the global heads of business to identify talent for assignment to the team. - B is the best answer. Allowing each business unit to nominate talent allows business heads to use their knowledge and experience to select their top talent. A is incorrect. Going through a review and approval step will take time and will not necessarily improve or even change the heads' recommendations. C is incorrect. HR may need to engage outside expertise in the process as it moves along, but engaging the business heads in the process first will support a better overall result. D is incorrect. HR will have a key role to play and will want to identify its own talent to be a part of the team, but it shouldn't be the first priority.

An organization in a mature industry has not been meeting its revenue objectives and is losing market share to competitors. What adjustment can an organization make to gain a competitive advantage? *W

Assess the current strategic fit in the organization to identify needed core competencies. - The organization is in a mature market and is not likely to find undiscovered customers. Its best option now is to change itself to become more efficient. This will improve revenues. It starts by revising its strategy (perhaps to compete on price) and then seeing if it has "strategic fit"--if it has the core competencies to implement that strategy. As a result of this assessment, it may decide on initiatives aimed at acquiring these competencies, such as controlling costs. Eliminating unnecessary hierarchy may lower payroll by decreasing more expensive managerial positions and time wasted waiting for decisions.

How should human resources advise senior management about their role in communicating any layoff decisions to affected employees?

B is correct. A strong communication plan is essential to success, and HR should work with senior management to explain the rationale and business necessity. A is incorrect. The role should not be delegated to front-line managers. C is incorrect. Working independently does not show management support. D is incorrect. Outsourcing shows a lack of leadership.

The HR director suspects that substance abuse may have been the cause of the incident. Which action should the HR director take? *W

B is correct. As a first step, the junior pilot should be suspended for not following explicit directions. A subsequent review of this and past incidents should be conducted to determine the most appropriate course of action to be taken with the junior pilot. A is incorrect. This would be a subsequent step for the HR director to take. C is incorrect, as this would potentially be viewed as gossiping with other employees. D is incorrect, as this approach would not address the situation at hand.

How can HR best implement a preventive labor relations strategy addressing the threat of possible union organizing during the reduction-in-force process? *W

B is correct. Bringing in an expert in preventive labor relations offers the best opportunity to apply expertise the company has not developed. A is incorrect. The company will be best prepared for possible union actions if it has a strategy in place. C is incorrect. Negative communication like this might constitute an unfair labor practice. D is incorrect. Waiting for a formal petition may be too late to have any positive impact.

The leadership team is concerned about employees leaving when they learn of the acquisition. What should the HR consultant recommend the organization do to retain top talent?

B is correct. By encouraging open and honest communication, the HR consultant is helping to facilitate a stronger connection between employees and the organization. Often during a period of change such as an acquisition, employees will become disengaged due to a lack of information being shared, as they are not sure what the future holds for them. A is incorrect, as compensation increases offer only a short-term solution to retention. C is incorrect, as this is not a retention activity. D is incorrect. Vacation time is not something that all employees would desire, so it would not be an incentive for all employees to stay.

How should the GM director proceed once all final selection assessments have been completed?

B is correct. If the employee is the best candidate, the ethical action is to offer the assignment and to avoid making judgements based on personal biases or perspectives. If the employee accepts, investigate the other issues more fully. A is incorrect. Assumption of the risk of failure is not based on fact but on the GM director's assumptions. C is incorrect. Requiring that the employee take the assignment removes options and could cause the employee to quit or take the position under duress. D is incorrect. Delaying the decision and re-analyzing it are unnecessary once all assessments are complete.

How should the GM head proceed to resolve the remaining concerns about this employee's assignment? *W

B is correct. It is important to ensure that the family supports the candidate's opportunities for career advancement balanced against the interruption of the children's education and the spouse's career. The GM head can use emotional intelligence to listen to and understand the family's complex reactions to this opportunity. A and C are incorrect, because these tests will not gather the needed information. D is incorrect, because if the assignment does not work—even as a temporary assignment—the effect could be costly for the employer and for the employee and his family.

The CEO selects a company to which HR functions will be outsourced. The CHRO learns that the chosen company is run by a friend of the CEO. The CHRO suggests that they review other companies that are cheaper, but the CEO insists on this one. What should the CHRO do?

B is correct. The CHRO is upholding the company's values by advising the CEO of the potential conflict of interest. While this may be a difficult conversation to have, it sends a clear message to the CEO that the CHRO will not compromise his or her ethical principles. Answers A and C do not confront the ethical issue in this situation. Answer D does not show leadership or fulfill HR's role to be an agent for ethical behavior.

How should HR advise senior management about policy criteria for making employee layoff decisions? *W

B is the correct answer, since using performance as the predominant criterion will be more likely to preserve the company's business competencies. A and C are incorrect. They ignore HR's responsibility to apply its expertise to supporting the company's strategic goals. This should be HR's recommendation. D is incorrect. It shows a lack of leadership and consultation.

What should the HR director do about the benefits manager and the compensation manager who do not get along?

B is the correct answer, the most direct and proactive approach. It prevents misunderstanding and conflict by setting standards for acceptable HR team behavior. By talking to the managers together in a nonjudgmental fashion, the HR director displays objectivity and collaboration. They can forgive past grievances and devise a blueprint for how they will all work together moving forward. A is incorrect, because this approach hasn't worked in the past. Avoidance will not resolve this conflict. C is incorrect, because it is reactive and does not show leadership. In addition, the imperative nature of the project requires that all managers perform as a team now rather than later. D could fuel conflict, because the managers won't know what is being said about them when they are not in the room

What is the value of a balanced scorecard?

Balanced scorecards help support a clear line of sight from strategic goals to strategic performance.

An organization's IT and HR functions both report a gender imbalance. How should the HR director approach this situation?

By analyzing representation, hiring, and retention as well as labor market data for these functions to benchmark gaps - Different divisions within an organization may face very different staffing issues regarding gender. However, it is important to analyze representation, retention, and hiring to determine what is occurring. Looking at labor market data for percentages of women in IT positions, for example, could help determine what is available for hiring within the local labor market. You cannot determine if this is a glass ceiling issue without analyzing further, and a survey will not give you the data you need for a strategic plan.

How should the HR director respond to the account of the incident provided by the pilot in charge?

C is correct. The HR director's role is to complete an independent and objective review and/or investigation of the incident and recommend a course of action to address any violations of policy or law. As the HR director is new to the organization, it would also be important for him to clarify his role with the pilot in charge and his unwillingness to compromise the airline's ethical standards. A is incorrect; previous incidents may or may not be relevant. B is incorrect, as until an investigation takes place, there is no evidence that the pilot in charge is not being truthful. D is incorrect, as there is no basis for the creation of this policy and it does not support investigating the incident.

The HR consultant is responsible for making sure that news of the acquisition is communicated effectively to the employees at the new plant. How should the HR consultant handle this task? Answers

C is the best answer. A communication plan that reflects what the HR consultant has learned about these employees and that can be implemented locally will help manage the employees' responses to this major change. A plan that includes communication from the CEO demonstrates the CEO's commitment to the venture and can be motivating. Face-to-face communication allows employees to ask questions of the CEO. A is incorrect, because an external public relations firm may not understand employee concerns and may apply approaches used for other, potentially dissimilar organizations. B fails to use the opportunity to create open, two-way communication. An information packet may be part of the communication plan but is not a plan. D is impractical. The news will spread quickly after the first meeting, and management will have lost the opportunity for dialogue.

An HR manager outsources temporary packaging work to a youth group at her church. How would you characterize her actions?

Conflict of interest, as other groups were not considered - The action is a conflict of interest, since it benefits an organization with whom the manager is connected. The manager could have avoided a conflict by involving other HR staff in the decision and considering other participants besides the church group.

Which is a characteristic of activity-based budgeting?

Considering the cost and strategic significance of key tasks - In activity-based budgeting, funding is based on the costs and strategic significance of different enterprise activities.

What is the first step that should be taken to develop the due diligence audit checklist?

Contact an international organization of auditors for a due diligence checklist that covers all areas of the acquisitions. - B is the best answer. The most efficient and effective way for the HR director to learn more about the other countries is to partner with a credible organization that can provide the appropriate information about the environmental factors in each country. This demonstrates the Business Acumen competency. A is not correct. An audit that works well for one organization may not work for another organization. C is not correct. It involves examining only one element of due diligence, current lawsuits. D is not correct. It may provide an understanding of the company's current processes but not the factors that are affecting them. The processes may be inadequate.

In a casual conversation, an operations manager expresses concern to an HR manager about operations' ability to argue persuasively for funding to develop a new order fulfillment system in the upcoming budgeting cycle. Which approach should HR recommend to best demonstrate collaboration toward an effective solution?

Cost-benefit analysis of the new system's strategic impact - HR can help operations conduct a cost-benefit analysis that includes labor-related costs and savings (e.g., savings in wages from increased efficiency, costs for training employees in the new system). This analysis can support the strategic impact of the investment and provide the basis for measuring strategic success in this area. Providing training and coaching will not address operations' need to align its activity with the organization's strategy.

What action should HR take to validate that recruiting goals support the overall strategy? *W

Create a value driver tree to determine if there is a sight line to the strategy. - A value driver tree is a tool that may be used to map enterprise-level goals to the functional level. Completing an assessment using a value tree would validate whether or not there is line of sight in recruiting goals.

An organization is struggling to attract and retain top talent. The organization has raised compensation to levels that are above average compared to the market but has not noticed an appreciable increase in hiring success. Which action should the organization take next to address the issue? *W

Create an employee value proposition to attract top-level candidates. - Creating an employee value proposition is the best course of action. Highly qualified individuals may have their pick of organizations to move to, so it is important to advertise reasons that candidates should choose the organization over other options, including reasons unrelated to remuneration. Catering to younger generations doesn't necessarily address the issue of attracting highly qualified individuals. Investing in internal talent development programs may help lessen the need to look outside of the organization to fill important positions but does not necessarily help attract top talent, especially in the short term. With the compensation levels being above average already, it is unlikely that an increased signing bonus will achieve the desired result.

A multinational organization identifies a lack of global perspective in its leadership ranks. Current leadership has typically been cultivated from within, working up through positions at the main corporate office. Which action will best serve the organizational goal of developing strong global leaders?

Create positions that involve managing operations abroad for leaders to rotate through on two-year assignments. - Using long-term international assignments is an effective practice for developing global business leaders. Requiring that all senior-level managers have managed international accounts may help address the issue but does not do enough to ensure that the leaders have truly developed a global perspective. A mentorship program may assist with other areas of leadership development, but, with no current global leaders to act as mentors, this would be ineffective at addressing the issue. Simply hiring candidates from other multinational corporations does not ensure that those employees are capable global leaders.

Which benefit is most advantageous when considering a best-of-breed solution compared to an integrated solution? *W

Creates customized solutions for different functional areas - Creating customized solutions for different functional areas is the only best-of-breed benefit identified in the answer choices.

A small organization has recently doubled the size of its workforce to 150 employees. The HR director has received approval to purchase an HRIS to help deal with the increase in reporting requirements. There is an IT expert in-house. What is the best course of action for this HR director in regard to the purchase and implementation of the HRIS? *W

Customize an off-the-shelf HRIS software package. - Smaller organizations need only the basic information typically associated with employee status and payroll records. Purchasing a relatively inexpensive off-the-shelf software package can provide what is needed for effective HR applications that are easy to install and use.

If the global assignment takes place for the employee only, how can the organization best keep the employee connected to his home and family during the assignment? *W

D is correct. Applying emotional intelligence will help HR understand the employee's relationship needs. If the assignee's family is not joining him, coordinating leaves for the assignee to be with family at essential times is critical. A is incorrect. While technology can be a useful supplemental communication tool, using it as the primary communication tool will stress the employee and his family. B is incorrect and shows insensitivity to the relationship needs of the employee and his family. C is incorrect. Forcing the use of vacation to be with family at critical times could be viewed negatively by the assignee.

The CHRO is concerned that the CEO is not fully taking the culture of the company into account regarding the health insurance decision. The CHRO worries that cutting back on benefits so suddenly will hurt the culture, and the company's culture is part of its competitive advantage. How should the CHRO proceed? *W

D is correct. The ROI provides objective information that the CHRO can use, as part of a business case, to help influence the CEO to consider alternatives to the reduction in payment of health insurance premiums for all employees. This would be one aspect of the business case and would include alternate suggestions and a recommended approach by the CHRO as to how to reduce fixed expenses. A is incorrect. The CEO is charged with improving the company's financials, and asking the CEO to wait would undermine the CEO's perception of HR's value. B is incorrect. The CHRO needs to gather evidence before promoting a solution. C is incorrect. Focus groups may provide some information, but employee reactions are only one part of the complex business decision.

What should the HR director do about the pay equity within the company?

D is the correct answer. Because labor is typically the largest expense for a company, it is important that all decisions be based on data. Looking at internal as well as external equity ensures a balanced and thorough approach to any decisions. A and B are incorrect. A thorough analysis should be completed before giving money to employees. Any additional pay needs to be carefully examined. C is incorrect. This approach does nothing to solve the situation now, and it does not fix any adjustments that may need to be made to make up for three years of no increases.

Which is an example of a risk management strategy of mitigation? *W

Department leaders are directed to train at least two employees to perform critical leadership tasks. - Training employees to perform critical leadership tasks does not prevent the risk of a leader being unavailable, but it does lessen the possible impact by having subordinates ready to continue essential processes. Tolerating a risk applies a risk acceptance strategy, and insurance refelcts risk sharing. Discharging the manager prevents future incidents by removing the cause (the manager).

After acquisitions are announced, HR hears concerns from employees of the acquired companies that relate to job loss, benefits changes, and loss of key working relationships. Which actions should HR take first to address these concerns while moving forward with integration activities?

Design an orientation program for staff and leadership that incorporates employee feedback and new organization cultural goals. - A is the best answer. An orientation program would be a strong starting point to support smooth employee transitions to the new environment. It would help set the right tone and context for embracing the new environment. B is incorrect. Forwarding past newsletters and information may help the newly acquired to learn about and understand their new employer, but without context the information may be meaningless. C is incorrect. Building a robust orientation for the newly acquired businesses is the first step; the focus on SOPs would be secondary. D is incorrect. Product brochures and press releases may be additional tools for helping create context, but they will have meaning only when the new employees have a framework that the orientation will create.

The new vice president of HR is tasked with developing a total rewards strategy in her organization. How should the VP begin the process?

Develop a compensation philosophy. - A compensation philosophy is a short (but broad) statement documenting the organization's guiding principles and core values about employee compensation. Ideally, development of the compensation philosophy should precede development of the total rewards strategy, because the philosophy essentially serves as a mission statement that informs the total rewards strategy.

What is a critical requirement of a business intelligence portal?

Ease in accessing data with interest and usefulness - An effective business intelligence portal is easy to use. One of the ways this is accomplished is by customizing a user's view to show the information and tools the user most commonly requires. Rather than seeing the entire array of applications or analytical tools on a system, the user sees a relevant selection. Engagement is good, but not as critical as logic and convenience. Not all users will require access to external databases.

What are the typical goals that drive the operations part of an organization? *W

Efficiency and quality - Operations is in charge of creating products or services that meet cost, volume, and quality standards. Meeting volume targets within budget costs requires efficiency. HR can help operations be more efficient by ensuring an adequate number of employees with the right knowledge, skills, and abilities

An organization that has decided to sell a long-held subsidiary is considering potential buyers. What information should the HR leader provide to leadership in this phase? *W

Employee census for the subsidiary that includes current roles and total current compensation - The value of the workforce that has been selected for divestiture is useful information that HR can provide as the organization is considering target buyers. A total head count along with the current cost of each employee will be needed. This occurs as the second step of the divestiture process, after the candidate for divestiture is identified.

Which action is characteristic of constructive discipline? *W

Employees are given multiple opportunities to modify their behavior. - Constructive discipline takes a step approach that allows employees one or more chances to change their behavior. Systems may vary in terms of using written or oral warnings and in the number of steps and the time windows for each step according to a number of factors, including the severity of the behavior, as long as similar cases are handled in a consistent manner. There is no rule for treating subsequent infractions. In some organizations, the offense triggers the next disciplinary step even if the offense is different from the initial issue.

A new knowledge management effort has lost traction. Senior employees are not motivated to train their replacements, and the younger employees resent not getting the training. Which potential solution should HR recommend to help both groups gain better understanding and demonstrate empathy with one other? *W

Establishing intergenerational mentoring programs throughout the organization - Intergenerational mentoring programs will best enable better understanding and empathy between generations. Both generations can learn from each other and invest energy in each other's success.

The HR director has just seen the data from the function's first internal customer satisfaction survey in ten years. Customers complain about hiring times they consider unreasonable. At an HR meeting, staff defends itself by arguing that they address every opening quickly, offer the hiring managers a good pool of candidates, and have a high rate of employee success in positions. How should the leader of the HR function approach this customer service problem? *W

Examine the recruiting and hiring process for inefficiencies. - The HR staff is doing its job of providing qualified candidates but not quickly enough. The first step is to map the process being used to determine if it can be made more efficient by using technology and/or giving staff more decision-making authority. Customer service is a metric as well as recruiting ratios or early attrition rates, and HR must address this gap in customer service. The staff's performance does not indicate that it is overwhelmed with work; jobs are opened quickly and quality candidates are being provided. A service level agreement is a good idea but not until HR has uncovered ways to improve its level of customer service.

Which should an HR leader do after learning that some HR team members question the necessity for the project?

Explain the benefits of the initiative to the team. - team members are unclear about the necessity for an initiative, they will not be as motivated to accept the change the initiative will require. It will be critical for the HR leader to clarify the reason for the initiative by explaining its objectives and benefits to the organization.

An organization previously competed on the basis of innovation. Its employees were rewarded for independent decision making and risk taking. As the market has matured, however, competition has forced leaders to shift to a strategy that increases management control over decisions and relies on processes to resolve the minor but embarrassing quality problems that have always been associated with its products. The leaders look to HR to help support this strategy. What first step should HR suggest?

Explain to the leaders that the new strategy will require changes in structure, policies, processes, and culture. - The best first step is to consider the ways in which this new strategy will affect all the other components of the organization (structure, systems, leaders, values, culture). For this new strategy to succeed, the organization must change from one that values independence and risk taking to one that rewards accountability to policies and standards and collaborative decision making. Tackling quality problems will be easier when more fundamental changes to the organization have been accomplished. Shifting hiring profiles does not address necessary changes among existing employees. A communication plan for the strategy is absolutely necessary but must be part of a larger change initiative.

A recent employee survey reveals inefficiencies in production processes. Which structured activities should be recommended to correct the inefficiencies?

Focusing on process requirements - Over time, work processes can become detached and lead to delays. OED process strategies aim at realigning work and refocusing on how work is accomplished.

HR works with the executive leadership team to redesign the company's operational structure. HR brings on an external consultant to determine next steps. What should be the consultant's initial recommendation to HR?

Gain agreement on the initiative's objectives. - The initiative's objectives will drive later decisions about budget, the most effective solutions, and necessary steps.

Which is the most significant reason that information technology departments are seen as strategic partners in an organization?

Information technology provides a competitive advantage for an employer. - IT departments have become more strategic because organizations increasingly view computer systems and applications as a competitive advantage in the marketplace. For example, airline reservation systems are essential to the effective operation of the business.

A board of directors is engaged in very tough contract negotiations with the organization's current CEO. The board's head comes to the VP of HR and asks for help. What would be the best support HR could provide?

Give the board an accurate picture of the costs and opportunities associated with replacing the CEO. - t will be useful for the board to have a BATNA, or "best alternative to a negotiated agreement," in their negotiations with the CEO. The VP of HR can help create this by presenting the board with more information about current and comparable CEO compensation ranges and the state of the talent pool. Getting information from other VPs may be unethical and would weaken relationships in the end. Practicing principled negotiation is good general advice but not helpful in this situation. Setting a firm limit without knowing one's alternatives may be risky.

An organization has identified several areas in which productivity is not meeting goals. The HR director is charged with finding a way to help increase productivity in the identified areas. After examining employee surveys from the underperforming areas, the HR director concludes that management is performing adequately but teams are still not working together as well as needed. The HR director also examines compensation in the area to see if below-average base pay is causing employees to lack motivation, but she finds that base salaries are competitive in the area. Which is the best option for the HR director to use to increase productivity? *W

Group incentive pay is the best option. Knowing that the issue does not stem from management performance or issues with base pay, HR should look to incentivize the groups to perform better together. Offering individual pay may exacerbate issues with teamwork, as individuals may work against other members of the team to earn a bonus. Reorganizing or replacing team members are both larger undertakings that may be less efficient at handling the issues than offering a group incentive.

A cross-functional team analyzes the customer experience in comparison to upcoming product development initiatives. One set of recommendations from this team identifies several changes to manufacturing and shipping processes that could reduce the overall delivery cycle time by 10%. If the organization decides to act on this team's recommendations, which action should HR take that would best promote implementation of this process change?

HR can help ensure that those affected by the change have any new skills and knowledge they will need to perform well. Management should position the need for change.

A global organization that was recently criticized for subcontracting to manufacturers who employ children is experiencing plummeting sales. This results in reductions in force (RIFs) that many global employees will view as unfair and inequitable. Which risk management tactic is most appropriate for the HR manager to take? *W

Have the legal department review the RIF plan and external laws to avoid litigation. - Risk management aims at controlling the effects of uncertainty. In this case, securing legal review helps avoid costly legal compliance issues. Communicating the plan may affected employees manage their futures, but it does not affect the employer's risk; its image as an employer has already been damaged. Similarly, offering compensation packages does not protect against risks of non-compliance, and is probably beyond the employer's financial capabilities. Conducting the RIF without legal review and without a communications plan would be choosing to ignore the potential for risk.

Which is the best course of action to incorporate concerns raised by works councils about a proposed staffing plan for multiple countries across Europe? *W

Holding ongoing discussions with works council leaders - Devising a plan to gain the support of the works council, while still meeting organizational goals, is a way to head off future labor issues. Contacting works council leaders in advance can help clarify these issues and begin the dialogue.

The current HR structural model in a high-growth organization with multiple business units has resulted in HR talent management processes that are inconsistent, strain budgets, and produce poor-quality data. What is the most significant benefit the organization can expect from using a shared services model with a designated center that specializes in talent management?

Integrated processes across the organization - A shared services center (sometimes referred to as a center of excellence) that specializes in talent management could be located in one unit, and the other HR departments could use this resource to perform tasks related to talent management. The most important benefit to the organization is that talent management processes will be integrated and therefore more consistent across the organization. The plan would not necessarily reduce costs, but it could use the budget more wisely by investing in technology that recognizes the interdependencies between resourcing, performance, learning, succession, and rewards. The effect on the employer brand and on employee use of career development options would depend less on how talent management is delivered and more on the quality of the offerings and supporting communication.

A top performer routinely arrives late to work. When questioned, rather than providing an explanation, she just says that she'll take a shorter lunch hour. Because of her performance, her manager allows this behavior to continue. Which risk does the manager take by failing to apply policy consistently?

It may provide grounds for a legal finding of unjust dismissal by people who are fired for tardiness. - Failure to apply rules consistently to all employees may be grounds for a legal finding of unjust dismissal and trigger financial penalties. Chronic tardiness can damage the work environment, harm the employer brand, and reduce productivity.

A small organization does not have the time or resources to administer benefits, payroll, or personnel records programs. Which flexible staffing alternative is an option for them?

Leasing employees from a professional employer organization - In this staffing alternative, an organization transfers all or substantially all employees at a discrete site or facility to the payroll of an employee leasing firm. The PEO leases employees back to the organization while handling most of the HR administrative functions (e.g., payroll, benefits).

Why would HR direct an organization to be involved in philanthropy efforts at the local level instead of global? *W

Local government officials may be influenced by organizational efforts. - Local governments may be influenced by the organization's efforts as they see what the company is doing to help local groups.

A manager has to leave work in the middle of the day because of a sick child. The employer does not have a paid time off policy. The manager notes a deduction equivalent to a half-day of salary in his nest paycheck. What is a possible outcome? *W

Loss of the overtime exemption - This would be considered an improper deduction under the Fair Labor Standards Act and the employer risks losing its overtime exemption. The employer should implement a paid time-off policy, and if the manager has used all the allotted time, the matter should be handled through a disciplinary process.

A U.S. engineering firm has recently merged with an international company. With the change in leadership, management is worried that employees will begin leaving the organization. As HR prepares managers for their new international roles, what should HR recommend management focus on to have the greatest impact on employee retention?

Manager-employee relationships by working with each employee to understand his or her role - Because manager behavior is pivotal to both employee engagement and employee well-being, an important way to ensure that real emotional engagement is created and sustained is by focusing on the manager-employee relationship.

Which action should the CHRO take first to address the executive team's request? *W

Meet with senior leaders in the IT company to discuss their concerns about the current situation. - The best answer is A, as it provides the opportunity for the CHRO to learn more about the acquired unit and understand the concerns of the team. This action demonstrates the Leadership and Navigation competency. B, C, and D are activities that may follow based on the CHRO's findings.

After the acquisitions take place, the CEO points out to the HR director specific aspects of the company culture that the CEO wants to be part of the culture of the acquired companies. What should the HR director do first to facilitate this?

Meet with the HR departments in the acquired companies to gain a better understanding of the companies' respective cultures. - The best answer is D, as it demonstrates the benefits of a global mindset. By meeting with the HR leaders from the other companies, the HR director has an opportunity to learn and understand their cultures to determine if there are culture gaps between the organizations and, if so, how to close those gaps. A is not the best answer, because a SWOT analysis is a tool that is used in strategic planning, and the CEO has determined the focus areas for the culture. B is not the best answer in this scenario, as the HR director can obtain the information more quickly and efficiently from the other HR leaders. C is not the best answer, because once the acquisitions have occurred, the decision about the company's culture will not belong to the former CEOs. More importantly, the HR functions in the acquired companies can probably provide more accurate cultural descriptions that are based on the perspectives of multiple employee groups.

After careful research, a company decides to expand its services into a new, growing market. What is most likely to occur as result of this expansion?

New organizational structure - Organizational structure refers to the way in which work groups are related. Organizational interventions are required when an organization has changed its competitive strategies and needs to develop new skills and traits—for example, skills needed to respond to market changes quickly. The organizational design must be focused in a new direction. New organizational structures often accompany organizational growth based on new needs.

What should the HR director do to establish credibility with the employee on behalf of the global HR team?

Notify the employee that HR will take all appropriate actions to resolve the complaint quickly. - The best answer is C. The global HR director can establish credibility by acknowledging the complaint and committing to resolve it quickly. This demonstrates the Ethical Practice competency. A, B, and D are not the best answers to establish credibility with the employee. These responses may be used when investigating the complaint; however, the employee may not be aware of these activities.

HR must create training so employees know where to find information and guidance on how to respond to compliance and ethical dilemmas. Which training approach will be most effective? *W

Present challenging ethical situations and enable employees to work together to analyze their responses. - Having the employees work together to analyze their responses will require them to research answers. This will help employees anticipate problems and find answers.

As part of an organization's strategy to highlight the full value of what it offers to employees, which is the best tactic a total rewards manager should consider?

Provide an individualized total compensation statement to employees. - Individualized total compensation statements show the total value of the base pay, incentives, and benefits package so employees can clearly see the value they receive in the total compensation package.

Which approach should the HR director have taken when joining the cross-functional team to maximize the chances that the team will be successful? *W

Recommend establishing a team purpose and charter to foster alignment across the team members. - The best answer is D. The HR director is demonstrating leadership by bringing the team together to agree on a common purpose and a charter that can motivate and direct them to the best approach to integrating the organizations. A is not the best answer. Each organization is unique. Lessons learned from other organizations may have different results, so the chances for success are not maximized. B and C are not the best answers, as they are opportunities for each side to influence the other side and not seek options to join together to find the best path.

What should the HR director do to gather information to create the policies and guidelines for the employee handbook?

Research the labor laws and other relevant rules and regulations in all three countries. - The best answer is A. By researching the laws and regulations in the countries in which the companies operate, the HR director will be able to include policies that are in compliance. The HR director is demonstrating the Critical Evaluation competency. B and D are not the best answers, because the information received may not be credible or relevant. C is not the best answer. The CEO asked the HR director to do this task. Therefore, the HR director should not push it back to the CEO. The CEO will most likely review the final draft and make suggestions at that time.

Which is the best first step HR should take to prepare an integration plan?

Review due diligence materials to learn more about the businesses, management teams, key employees, and culture. - The best answer is C. Understanding the culture of both the acquired and acquiring entities is important to the dynamic of retention. Integrating them to reflect the persona and values of the new third entity the acquisition will create is critical to meet the aggressive integration and financial targets. A and D are incorrect. A survey may be useful at some point; however, this isn't the best place to start. B is incorrect. While including the in-country staff will be an important component of the way forward, starting there may unnecessarily cause concern and uncertainty about what will be happening. Having the cultural information in hand as the in-country teams are approached can facilitate smooth communication and integration efforts.

Which step is most critical for the HR director to take when assisting the executive team with integration and realignment?

Speak openly with the team on the integration process and what to expect. - A is the best answer. It is the step most critical to the success of the integration and realignment, and it demonstrates the Consultation competency. The executive team must be prepared for the challenges of introducing changes of this scope and their possible effects on productivity and engagement. B and D address legitimate communication concerns that may occur once decisions have been made, but, in order to make decisions and manage them, the team needs to understand more about the impact of change on the organization. C is not the best answer in this situation, because this solution is not specific to this situation. The need for consistency in assessing executive talent is assumed for all organizations at any stages of their development.

What are the four areas that need to be examined during a workforce analysis?

Supply analysis, demand analysis, and gap analysis can be combined to form a current workforce profile that facilitates formulating solutions for the future.

A new director has arrived to manage an HR department that became dysfunctional under the previous director. What should the new director do first? *W

Talk to members of the department separately to try to understand what the department needs now. - Since the HR director is new to the department, she needs to take time and learn more about the staff's needs, individually and as a group. She can then provide the type of leadership the group needs.

The CEO wants to ensure that, after the acquisitions, the employees from all three companies feel united as one company. What should the HR director suggest to facilitate this?

The CEO should visit the acquired companies soon after acquisition to meet with employees and answer questions. - The best answer is A. Managing change requires communication and commitment from the top. Bringing the organizations together into one culture has to be led from the top of the organization. B and D are not the best answers, because these types of communication do not promote the two-way communication employees will need during this transition. C is not the best answer, since this activity would be very local. This activity may be an opportunity for people from the different organizations to get to know each other but will take time and may not happen organization-wide.

An organization is embarking on the creation of a new strategic plan for the next five years. Just before the process starts, the HR VP becomes aware of widespread discussions between lower-level managers on how to use the strategic planning process to advance pet projects. How should the HR VP ensure that the strategic planning process is successful without it being abused for personal gain by those involved in the process?

The HR VP should ensure that the strategic planning process is focused on core competencies. By doing so, the organization will focus on key areas. By not involving lower-level managers, the HR VP would risk less involvement in the process and the organization might miss out on worthy concepts originating from the lower levels. Using third-party consultants may jeopardize the adoption of the strategic plan throughout the organization, including both senior and junior management levels. Attempting to identify the parties is an inefficient use of time and resources.

The CEO tells the CHRO of a heated argument he had with the president of the IT company. The CHRO is concerned that the president of the IT company may resign, which would likely lead to many other employees leaving. What should the CHRO do? *W

The best answer is D. The CHRO should meet with the CEO to discuss her concerns and provide recommendations for minimizing turnover in the IT company. Brainstorming is a tool that supports collaborative problem solving. Neither A, B, or C would be the first response; the problem must first be identified. Depending on the outcome of the CEO and CHRO's meeting, one or more of these responses could be implemented.

What action should the CHRO take to help with integrating the IT company employees into the consulting firm?

The best answer is D. This demonstrates the Consultation competency and the process for introducing and managing change. An important part of this process is frequent and open two-way communication. By holding listening meetings, the employees can address their concerns and questions directly to the executives. A, B, and C are not the best answers, as these responses demonstrate one-way communication from the top down and do not provide employees with the opportunity to address their concerns directly to the executive team.

An organization has typically allowed individual unit managers to handle all interviews, granting the managers a large degree of autonomy to select candidates. However, the new HR director has identified that this policy has caused a large variance in the actual quality of candidates that are hired, impacting the organizaiton's overal performance. The HR director wants to bring all interviews under the direction of HR, but she receives significant pushback from managers, who fear losing control over who they hire. Which is the best option the HR director can select to increase the quality of new hires while respecting the desires of managers to have final say over who they hire? *W

The best option is to allow unit managers to conduct interviews but to require them to employ structured interviews. This will help ensure that all unit managers are consistently assessing candidates, and HR will be able to guide the interview process with better questions designed to elicit valuable responses. Creating a new interview process and minimizing the participation of unit managers will still likely face significant pushback. Pre-screening applicants can help, but, if the unit managers are not required to use the results of the pre-screening interviews, they may not result in the selection of better candidates. Stress interviews may not be applicable to many organizational positions and unit managers may not be able to correctly employ them, resulting in less success with candidate selection.

An HR director has joined a technology company that has a flat structure and relies on highly focused project teams with highly competent members who work in a collaborative and supportive way. The HR department reflects this structure and culture. The HR director came from a manufacturing business known for its ability to standardize processes for greater efficiency. The HR director was very successful in his previous organization but is struggling to connect with and lead his new HR team. What might explain his difficulty?

The director has always used legitimate power to lead his teams, and this team doesn't see leadership in this way. - The scenario suggests that the problem may be a leadership style that was effective in one organizational culture but ineffective in another. In the manufacturing environment known for standardization, the leader may rely on legitimate power that comes from position and title. In the new organization, teams may respond better if leaders use referent power, acknowledging the team members' preferences for collaborative and autonomous conditions.

Which principle of employment at-will affects employers in countries that recognize this employment right?

The employee is not legally bound to any financial liability incurred for abandoning the job. - When the principle of employment at-will applies, primarily in the U.S., both the employee and the employer are free to terminate the relationship with no consequences, assuming that no other contracts or agreements have been made and the termination was legal (in other words, not a case of wrongful discharge).

An organization implements employee self-service through an HR portal for employees to check their personal data, update information, and handle expense reporting. What will likely be the most important impact of this initiative? *W

The most important impact is that HR head count may be reduced due to the new efficiencies and time savings.

An organization is extremely risk-averse, and its technology policies aim at retaining the greatest degree of physical and legal control. Which option for acquiring software offers the most control to the organization?

The organization owns proprietary software outright, and hosting it on site on the organization's own servers allows the organization to maintain physical and logical security levels to the degree it finds necessary.

Why would an HR manager recommend using an external firm to conduct an organization's first employee engagement survey?

This allows the organization to benchmark its results against those of comparable organizations. - For an organization's initial survey, the ability to compare results to similarly situated organizations is helpful to establish a baseline of areas to focus initial attention on.

Managers of a major restaurant chain are seeking ways to reward employees' contributions in conjunction with the restaurant's success. How should the HR leader guide managers toward creating an effective rewards system?

Tie the rewards to strategic activities. - Without regard to individual cultures, effective rewards systems are strategically aligned. The other choices focus on features that may vary among cultures.

What is the primary purpose of a social audit? *W

To serve as a self-evaluation focused on understanding, measuring, and improving the organization's social performance - A social audit is a formal review of an organization's social and environmental policies and procedures that is primarily a tool for self-evaluation. It has been described by a UN agency as "a technique to understand, measure, verify, report on and to improve the social performance of the organization."

A staff member regularly stays late in the office and indicates in performance review meetings a commitment to the employer. Yet, the staff member's network inside and outside the HR department is small. When the HR team lists its members, they often forget to include her. What might this signify to the HR leader?

Transactional engagement occurs when an employee appears to be engaged and committed but is not actually engaged. In this case, the lack of connection with other members of the organization signals incomplete engagement.

An HR director is leading a team through a project management process under an unusually tight deadline. In order to successfully complete the project in time, which action should the HR director take?

Use critical path analysis to develop a project schedule that fits the time constraints. - By using critical path analysis, the HR director will be able to find the most efficient way to complete the project. This can help ensure that the project deadline will be met. Strategically aligning project objectives and establishing strong communication channels may help complete the project more efficiently but will not necessarily allow the HR director to determine if the deadline will be met. Lean project management is a specialized approach, and it may not be the most time-efficient option depending on the scope and focus of the project.

A project leader asks HR for help with managing the team aspects of a challenging project. The team was tasked with prototyping a new consumer electronics product. Due to various supplier problems, the team has missed several milestones. To meet the deadline, another team has been diverted from its less critical project and added to the delayed project. The project leader needs things to go as smoothly as possible with this new merged team so that no more time is lost. What should HR focus on?

Using a RACI matrix to define new team roles and responsibilities - Because time is short, the new and old team members need to know their roles and responsibilities. A RACI matrix can be completed in one meeting. Since both project teams are working in the same organization and on similar projects, they probably already appreciate the project's goal and the organization's mission and values. Qualifying new suppliers will not improve the integration of the teams. There is no suggestion that the project's problems were caused by internal processes that could be reengineered.

An organization with a non-tech workforce is looking to create a more efficient way to handle technology questions. Currently, the IT department reports that 40% of help desk calls are seeking direction on common tasks, such as archiving an e-mail or accessing the organization's parts ordering system. Which option is the best way to address repeated questions like these and free up time for the IT department to complete other crucial projects?

Using a technology-based system, such as a web page featuring instructions on completing common tasks, is the best option. By prominently linking it to the intranet home page and encouraging employees to use the links, IT can divert some of the questions that are commonly asked. Refresher courses would use more resources and may not solve the problem. Investigating repeat offenders doesn't address the root cause of the issue and may discourage employees from reaching out when they have legitimate issues. Introducing a new software program and asking employees to use colleagues is inefficient and may actually exacerbate the issue.

A main goal of the team is to assist HR to develop and reinforce a vision and culture for the new entity. Which action should HR encourage to accomplish this? *W

Verify the third-company vision and organizational culture. - D is the best answer. Creating a team with members from different entities can help model a consistent culture and message that can be communicated to acquisitions as they occur. HR should verify the third-company vision and organizational culture. A, B, and C are incorrect. It is most important to verify the vision and culture.

When is an authoritative approach to leadership most likely to be effective? *W

When the team is willing to work toward a goal but is not yet sure of how to get there - An authoritative leader leads by providing a bold vision and inviting team members to follow and join in achieving a goal. This is effective when the team is motivated and skilled but does not yet have direction.

How should the HR director go about preparing employees of the acquired company for the forthcoming cultural changes?

Work with company executives and senior leaders to establish a common understanding of the change efforts needed. - A is the best answer. The HR director can demonstrate the Consultation competency by working with the executives and senior leaders to identify change initiatives and how to address them. B, C, and D are not the best answers but may be outcomes to be implemented from the meeting with the executives and senior leaders.