SHRM-CP - HR PLANNING EXAM

6) A(n) ________ is a formal research effort that evaluates the current state of HR management in an organization. A. HR audit B. human capital return on investment calculation C. utility analysis D. benchmarking study

A. HR audit

21) When HR is viewed negatively in an organization, the complaints are typically expressed as A. HR managers being excessively focused on their gatekeeping roles. B. the HR function being too heavily involved in forming organizational competitive strategy. C. HR managers viewing themselves as organizational change agents. D. High-level HR managers being overly focused on results rather than activities.

A. HR managers being excessively focused on their gatekeeping roles.

23) What is purpose of the Worker Adjustment and Retraining Notification (WARN) Act? A. It requires employers to give a 60-day notice before a layoff or facility closing involving more than 50 people. B. It requires that employers contemplating layoffs must contact the Department of Labor 60 days before a mass layoff. C. It mandates job retraining for workers who are laid off for economic reasons. D. It requires employers to provide outplacement and severance pay for workers who are terminated in "mass" layoffs.

A. It requires employers to give a 60-day notice before a layoff or facility closing involving more than 50 people.

19) The customer service department of the cell phone company serving a 10-state region in the Southwest, has a reputation of being unhelpful to customers and sometimes customer service representatives are considered surly and rude to customers, especially to technologically- challenged callers. The cause of this behavior by the customerrelations is most likely to be A. a lack of focus on the customer by managers and employees. B. low pay in the customer service positions. C. dissatisfied and difficult customers. D. the customer service department being located in New York City.

A. a lack of focus on the customer by managers and employees.

16) Employees who value _________ are most likely to be attracted to jobs allowing them to telecommute. A. flexibility B. a fast-track promotion path C. opportunities for early retirement D. work variety

A. flexibility

18) Which of the following has been a geographic trend within the last decade that has forced changes in HR plans? A. the continued importance of industry hubs with infrastructure and supply bases. B. the influx of highly skilled technical workers from Asia and India C. the erosion of offshoring advantages because of increases in wages in Asia and India. D. the movement of better educated workers to the Midwest

A. the continued importance of industry hubs with infrastructure and supply bases.

34) Whether employees and managers of an organization behave ethically is fundamentally a function of A. the organization's culture. B. the employee's level of education. C. the relevant laws and legal guidelines applying to the organization and its industry. D. professional codes of ethics.

A. the organization's culture.

20) _______ occurs when individuals who quit, die or retire are not replaced. A. Workforce depletion B. Attrition C. Voluntary separation D. A hiring freeze

B. Attrition

26) Which of the following statements is TRUE? A. The HR department is largely responsible for the unethical behaviors of employees in the organization. B. HR management is the voice of organizational ethics. C. HR management must focus on clearly illegal behaviors within the firm and leave ethics up to the conscience of each individual manager. 68 D. The HR function in the organization is largely insulated from unethical behaviors.

B. HR management is the voice of organizational ethics.

1) A large Japanese semiconductor manufacturer is building a manufacturing plant in rural Texas. The Japanese firm has developed a highly-effective system of motivating employees which results in high productivity and high worker satisfaction. As an HR consultant to the Japanese firm, what should your advice be? A. As long as the Japanese company's motivation system is based on pay-for-performance, the Texas employees will be as productive and satisfied as their Japanese counterparts. B. The Japanese firm should study the local Texas culture and redesign its motivation system for the U.S. plant. C. The rural Texas and Japanese cultures are so different, that there is little likelihood that a Japanese-operated plant in Texas could be successful. D. The Japanese firm can implement the same motivation system in Texas and expect high productivity and high employee satisfaction.

B. The Japanese firm should study the local Texas culture and redesign its motivation system for the U.S. plant.

32) In mergers and acquisitions, the HR planning process begins with A. addressing key HR processes. B. conducting due diligence. C. analyzing the internal inventory of HR capabilities. D. optimizing the workforce.

B. conducting due diligence.

2) Top executives of an organization truly view the top HR executive as contributing to the strategic success of the firm when they request the HR manager to A. improve the implementation of performance appraisals for supervisors. B. evaluate potential merger candidates for organizational compatibility. C. select a vendor for outsourcing benefits administration. D. streamline the employee selection process.

B. evaluate potential merger candidates for organizational compatibility.

25) The main pressure behind U.S. firms resulting in facility closings, international outsourcing, and decreasing their labor costs is from A. obsolescence of plant and equipment in the U.S. manufacturing sector. B. global competition. C. intense domestic competition. D. the growth in information technology.

B. global competition.

8) The collective value of the capabilities, knowledge, skills, life experiences and motivation of an organizational workforce is called A. the organization's talent inventory. B. human capital. C. total human resources. D. the organization's intellectual assets.

B. human capital.

33) Using technology to monitor employee performance A. rarely results in information that results in employee discipline or termination, so its expense is difficult to justify. B. involves few legal restrictions. C. typically does not affect employee attitudes because performance evaluation is a normal and accepted organizational process. D. is legally considered an invasion of privacy unless the Department of Justice has approved the methodology.

B. involves few legal restrictions.

14) The main reason that HR metrics are difficult to compare across organizations is due to A. the unique nature of each organization's HR function. B. lack of consistency in HR reporting. C. the fact that most of this information is proprietary. D. fear by HR executives that their department will not compare well with other organizations.

B. lack of consistency in HR reporting.

12) Beyond the upfront costs, voluntary separation programs often have the following drawback A. this method is often too slow to generate a large number of immediate separations. B. some employees with needed skill sets will take the voluntary separation option. C. the method is viewed as less "humane" than layoffs with severance pay. D. the enhancement of the paternalistic culture of the organization leads employees to feel a sense of entitlement

B. some employees with needed skill sets will take the voluntary separation option.

9) During an economic downturn, resources (including workers and potential workers) are A. in over-supply, with the massive numbers of jobseekers making difficult for organizations to locate the most qualified available applicants. B. under-utilized and organizations seek to increase productivity and lower costs. C. are in short supply, and organizations may be hampered in their ability to grow. D. a glut on the market, which results in inflationary pressures on wages and resource prices.

B. under-utilized and organizations seek to increase productivity and lower costs.

4) Which of the following HR activities is MOST likely to be outsourced successfully? A. union contract negotiations B. risk management C. 401k administration D. performance management

C. 401k administration

3) In order to add value to the human capital of the organization, A. the HR function must form the interface between the external environment of the organization and its internal environment. B. HR managers must be focused on reducing the total cost of labor. C. HR must have good metrics about the HR side of the business. D. HR policies and practices should result in the workforce with the minimum quantity and maximum quality needed to achieve productivity goals.

C. HR must have good metrics about the HR side of the business.

7) When the human resources function creates a unique capability in a firm that creates high value and differentiates the organization from its competition, human resources is a/an ________ for the firm. A. strategic contributor B. critical capability C. core competency D. intangible asset

C. core competency

11) In addition to administrative efficiency, the major reason for compiling data in HR management systems is to A. develop complete records about each employee. B. strengthen the organization's HRMS in comparison to its competitors' HRMS functions. C. facilitate information-based HR decision making. D. allow HR departments to retain the HRMS function in-house rather than outsourcing it to vendors.

C. facilitate information-based HR decision making.

24) In order to calculate the wealth created per employee, one must divide ___________ by the organization's full time headcount. A. shareholder's equity B. value of gains from productivity improvement for the time period C. net profit after taxes minus cost of capital D. revenue minus (operating expense minus (compensation plus benefits cost))

C. net profit after taxes minus cost of capital

35) As Director of HR, you are designing an ethics program for your organization. You plan to develop a written code of ethics, training for all organizational members, and means for organizational members to obtain advice on ethical situations. What critical element is missing from your plan? A. a discipline system for offenders against the code of ethics. B. ensuring that the organization's code of ethics is not more restrictive than the relevant laws. C. systems for confidential reporting of misconduct. D. designating a high-level staff position as an ethics officer.

C. systems for confidential reporting of misconduct.

15) A major trend regarding diversity is that A. the American "melting pot" has resulted in less ethnic and cultural diversity in the U.S. workforce. B. out of political and philosophical convictions many people refuse to classify themselves as any racial or ethnic group. C. with the retirement of baby boomers, employers will experience a "brain drain." D. as women have become almost 50% of the workforce, fewer work-family tensions exist

C. with the retirement of baby boomers, employers will experience a "brain drain."

31) A rumor has been circulating at the largest law firm in the city that the partners are considering outsourcing much of the work of the paralegals in the firm to a company in India. If you were a paralegal at this firm, what would be your most appropriate attitude or action? A. Consider your options. Only occupations that are dying are considered for outsourcing. B. Relax. Work of this level of professionalism cannot be outsourced to a foreign firm. C. Relax. Work that requires intimate knowledge of the U.S. legal system cannot be outsourced. D. Consider your options. The firm can generate huge labor cost savings by outsourcing your job.

D. Consider your options. The firm can generate huge labor cost savings by outsourcing your job.

30) The balance sheet is most helpful when HR needs information about: A. Production costs versus the selling price. B. Transactions regarding monetary value. C. Corporate value reflected as net income. D. Organizational assets, liabilities and equity.

D. Organizational assets, liabilities and equity.

17) Arden Glassworks has been the major employer in the town of Arden for over 20 years, drawing mainly on the low and semi-skilled labor force. Now, a large telephone marketing firm is opening an operation in Arden which will also employ low and semi-skilled workers. Which of the following statements is TRUE? A. Since Arden and the marketing firm are in different industries, the impact on Arden's workforce will be minimal. B. Arden will need to offer higher pay and benefits to its employees in order to keep them from moving to the new employer. C. The marketing firm would only open a new operation in a geographic location that has a low 67 average wage so that it can minimize labor costs. Consequently, there will be no upward pressure on the wages and benefits Arden must pay. D. Since Arden and the marketing firm are in the same geographic area; Arden will need to consider the pay scales and benefits the new firm will offer.

D. Since Arden and the marketing firm are in the same geographic area; Arden will need to consider the pay scales and benefits the new firm will offer.

22) Compensation and benefits managers in almost all organizations face a major and growing concern regarding the cost of A. equalization of pay between men and women. B. incentive pay for hourly employees. C. outsourcing to lower-wage countries. D. health-care benefits

D. health-care benefits

13) When using benchmarking A. it is best to collect the data on an as-needed basis rather than on a rigid time schedule. B. the resulting statistics are comparable across organizations and industries. C. HR managers are able to identify the reasons why HR functions are below standard. D. it is best to compare ratios from year to year

D. it is best to compare ratios from year to year

29) Talent management includes which of the following activities? A. wage and salary administration B. environmental scanning C. diversity assessment and analysis D. job-skill training

D. job-skill training

28) An HR best practice that most directly ties individual behavior to organizational strategy is A. stringent hiring standards. B. flexible work arrangements. C. talent development. D. pay for performance.

D. pay for performance.

10) The Older Workers' Benefit Protection Act (OWPBA) requires employers to do all of the following EXCEPT A. offer older workers "consideration" in exchange for waiving the right to sue the employer for age discrimination. B. to disclose the ages of both terminated employees and retained employees when there are layoffs. C. give workers 40 years old and older 45 days to consider accepting severance benefits and waiving the right to sue for age discrimination. D. provide workers over the age of 40 continued medical benefits until they qualify for Medicare or take new jobs with medical benefits.

D. provide workers over the age of 40 continued medical benefits until they qualify for Medicare or take new jobs with medical benefits.

27) Due to an urgent need to cut costs, Rotary Dial, Inc., has decided to eliminate its quarterly off-site training conference for managers at all four of its locations with video conferencing. This reduces travel costs significantly and allows the company to lay off two training staff. This is an example of A. organizational restructuring. B. aligning HR activities with organizational productivity efforts. C. outsourcing an organizational function. D. re-designing work.

D. re-designing work.

5) A "structural mismatch" between workers and jobs means that A. the failure of an organization's HR function to predict talent surplus or shortage. B. unemployed workers with needed skills are located in different geographic regions of the country than where economic growth is occurring. C. there is a difference between an organization's existing workforce and the workforce it needs for competitive success. D. workers do not have the skills needed for the current needs of the economy.

D. workers do not have the skills needed for the current needs of the economy.