Business Acumen Quiz

A company has reached a point of stability in its internal processes and ways of doing business. What stage of the life cycle characterizes this company? A. Maturity B. Decline C. Growth D. Introduction

A.

A talent acquisition specialist needs to provide an analysis that explores hiring and turnover trends across demographics, performance levels, and promotion histories. Which is the best tool to obtain this information? A. Online analytical processing (OLAP) B. Knowledge management system C. HRIS D. Employee personnel file

A.

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? A. Analysis of the initiative's possible risks B. Detailed description of the methodology that will be used C. Endorsements from organization stakeholders D. Communication plan the project team will use

A.

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? A. Identify the number of successful placements before and after the initiative. B. Track the performance of new candidates in their placements. C. Meet with the recruitment manager to discuss observed changes. D. Survey all hiring managers about changes in the quality of job candidates since the initiative's launch.

A.

How are the concepts of value and the value chain related to strategy? A. Value chain analysis identifies areas critical to strategic success. B. These concepts relate primarily to for-profit enterprises. C. The value chain defines what is important for the organization's stakeholders. D. Value points to economic metrics that can be used to measure strategic success.

A.

When would a return on investment (ROI) analysis be an effective metric? A. When a function is seeking budget to hire new staff. B. When an HR function wants to confirm that it is complying with legal and regulatory requirements. C. When an investor is seeking information about a company's financial health. D. When an organization wants to compare its productivity with that of similar competitors.

A.

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? A. Facilitate management focus groups to evaluate the company's compensation, rewards, and incentive programs B. Conduct a job analysis for all management positions to ensure that job descriptions and specifications are appropriate C. Analyze exit interviews from managers who have left recently D. Review customer satisfaction results and use these to guide the development of the training curriculum

B.

A long-time employee of a small, rural branch of a national bank dies unexpectedly. This employee held a position requiring extensive institutional knowledge. Fellow employees are deeply saddened by the loss of their colleague, but bank policy allows bereavement leave for only members of the immediate family. The branch was already understaffed in several mid-level positions due to a limited pool of qualified applicants. The loss leads to increased workloads for the other employees, who are struggling to complete tasks on time. The branch manager wants to initiate succession planning for the recently vacated position in the future. How should the HR manager proceed? A. Identify current employees who are interested in advancing to this position. B. Assess the knowledge, skills, and abilities that need to be learned on the job. C. Establish a formal mentorship program at the bank to develop a pool of candidates for the position. D. Choose an assessment to measure internal applicants' potential to fill the position in the future.

B.

A long-time employee of a small, rural branch of a national bank dies unexpectedly. This employee held a position requiring extensive institutional knowledge. Fellow employees are deeply saddened by the loss of their colleague, but bank policy allows bereavement leave for only members of the immediate family. The branch was already understaffed in several mid-level positions due to a limited pool of qualified applicants. The loss leads to increased workloads for the other employees, who are struggling to complete tasks on time. Which action should the HR manager take to address the hiring needs of the branch? A. Hire candidates who are slightly less than qualified and institute intense training programs as part of onboarding. B. Train current employees to promote from within so less-skilled positions can be filled more easily. C. Partner with regional colleges to develop a talent pipeline. D. Contract with a temporary agency to fill open positions on a short-term basis.

B.

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? A. Contract with an LMS vendor to set up a hotline to answer all questions related to information seeking and sharing with the new technology. B. Create an effective communication plan so employees are aware of the benefits the new LMS offers and implement incentives for using the LMS. C. Do nothing and assume that the LMS will eventually be consistently and widely used since it has so many benefits. D. Require IT department employees to field calls and answer all questions from other employees on a rotating basis.

B.

An organization has transitioned to a model where most employees work from home. Several smaller regional offices are being planned, and the headquarters lease will be allowed to expire. What does HR need to update to ensure a smooth flow of business after the changes? A. Sales pipeline B. Organizational charts C. Business plan D. Organizational strategic plan

B.

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? A. Facilitate a discussion with new and veteran recruiters to evaluate the benefits of the unwritten rule. B. Send an anonymous survey to all recruiters in the company to obtain feedback on the benefits of the unwritten rule. C. Ask the recruitment manager for input on the possible benefits of the unwritten rule. D. Conduct a meeting with all new recruiters to learn about their opinions on the benefits of the unwritten rule.

B.

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? A. Ask employees what their preferred assignment would be among available positions. B. Identify positions requiring similar knowledge, skills, and abilities as the employees' current positions. C. Ask supervisors of vacant positions at the university to interview employees with the necessary skills and experience. D. Offer early retirement to interested and eligible employees.

B.

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? A. Encourage the president to consider the cultural impact of this action on all university employees. B. Schedule a meeting with the president to discuss the importance of investing in employee development and advancement. C. Propose a plan to reassign the affected employees to other departments within the university. D. Meet with the president to discuss the strategic direction of the HR department.

B.

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? A. Formula B. Activity-based C. Zero-based D. Incremental

B.

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? A. Use this information to help create a strategy to reduce turnover B. Decline the candidate; however, offer compensation in exchange for the information C. Do not hire the candidate, indicating that the company does not participate in unethical behavior D. Ask for the information to create a more robust retention strategy once the person is hired

C.

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? A. Conduct an online search of the best training companies and send the resulting list to the CEO B. Rank the companies in regard to their prices and present the five lowest bids C. Determine, with the CEO, key criteria that should be considered, using this information to narrow the search D. Ask for input on the short list from another employee who has done this type of training before

C.

A long-time employee of a small, rural branch of a national bank dies unexpectedly. This employee held a position requiring extensive institutional knowledge. Fellow employees are deeply saddened by the loss of their colleague, but bank policy allows bereavement leave for only members of the immediate family. The branch was already understaffed in several mid-level positions due to a limited pool of qualified applicants. The loss leads to increased workloads for the other employees, who are struggling to complete tasks on time. Which action should the HR manager take to address the emotional well-being of employees? A. Discuss realignment of job duties to address workload issues. B. Offer a few days of leave for bereavement available by request. C. Engage a grief counselor to discuss coping mechanisms with employees as a group. D. Email employees outlining the various options for support provided to them.

C.

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? A. Contact analogous organizations and implement the exact features they are using. B. Ask the senior leaders who they would like to see on the cross-functional team. C. Assemble a team including senior functional leaders and younger managers with an interest in diversity and innovation. D. To save time, limit the team to tech-savvy employees who already understand LMS trends and applications.

C.

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? A. Delphi technique B. Root cause analysis C. Business intelligence D. Regression analysis

C.

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? A. Suggest that the recruitment manager examine recent trends in the fields and jobs candidates are pursuing. B. Analyze the recruitment strategies used by veteran recruiters compared with new recruiters. C. Recommend evaluating the effectiveness of the agency's recruitment processes and tools. D. Advise the recruitment manager to review the job descriptions and update as needed.

C.

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? A. Call a meeting with the HR department to share the information. B. Ask the president to address the decision at the next university-wide meeting. C. Tell each impacted employee individually and explain his or her options. D. Provide guidance to the affected employees' supervisors on how to relay the information.

C.

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? A. Call a staff meeting to explain that every effort is being made to place affected employees in other positions at the university. B. Conduct team-building exercises to strengthen relationships within the HR department. C. Schedule one-on-one meetings with department employees to address their questions and concerns. D. Elaborate on why the reduction in force was necessary.

C.

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

C.

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? A. Ensure that all recruiters are well trained in sourcing and selecting qualified applicants for a retail sales organization B. Review environmental conditions in regard to expected tourists and expected sales growth, and calculate the number of employees needed C. Review internal turnover, promotions, and transfer data to calculate the number of employees needed to meet future staffing needs D. Analyze current labor trends along with internal staffing metrics to ensure appropriate staffing levels to meet expected organizational growth

D.

A long-time employee of a small, rural branch of a national bank dies unexpectedly. This employee held a position requiring extensive institutional knowledge. Fellow employees are deeply saddened by the loss of their colleague, but bank policy allows bereavement leave for only members of the immediate family. The branch was already understaffed in several mid-level positions due to a limited pool of qualified applicants. The loss leads to increased workloads for the other employees, who are struggling to complete tasks on time. The branch manager notices an increase in transaction errors in all employees and asks the HR manager to recommend a solution. When the HR manager asks about the errors, employees indicate they have too much work to double-check for mistakes. How should the HR manager respond? A. Provide refresher training on essential job tasks for each employee. B. Consult with employees to prioritize their work and identify less-important tasks. C. Conduct an analysis to identify job functions and tasks that can be automated. D. Analyze data about error rates and types over the last month to develop targeted solutions.

D.

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? A. Survey the founder and senior leaders to gather their thoughts and feelings about how the LMS should support operations. B. Task the Millennial leaders with researching LMS capabilities and trends and preparing a presentation for the founder, leaders, and stakeholders. C. Implement the new LMS and, after usage data is gathered, then demonstrate its benefits. D. Show how the LMS can effectively use technology, trends, and innovations to support the organizational strategy.

D.

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? A. Decline B. Introduction C. Maturity D. Growth

D.

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? A. Facilitate a meeting between the new and veteran recruiters. B. Suggest that the two recruiters work together on this candidate. C. Recommend that the recruitment manager remind the new recruiter of unwritten expectations. D. Suggest adding the unwritten rule to the policy to avoid this situation in the future.

D.

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

D.

Which budgeting method is being used by a manager who begins with no allocated budget and must justify allocations based on how the function will contribute to the organization's strategic goals? A. Formula-based budgeting B. Incremental budgeting C. Capital budgeting D. Zero-based budgeting

D.