BUSINESS ACUMEN QUIZ ANSWERS + RATIONALE
The IT department at a large university has historically hired temporary employees for its entry-level positions. These positions are often low-paying, which leads to high turnover and the loss of high-potential talent. Because of the IT department's large size, the in-house HR staff spends a fair amount of time and resources working on filling these positions. The HR staff believes that the IT department should consider hiring for permanent positions and offering more competitive salaries. However, leadership of the university has resisted this idea because of budgetary concerns and the belief that the IT department can always find a new graduate willing to work in a temporary position to obtain experience. The HR manager is finding that the HR staff cannot fulfill their other responsibilities because they are spending too much time focusing on the needs of the IT department. QUESTION 4 OF 4: The HR staff suspects that more employees are leaving because they are receiving better job offers with other organizations. Which action should the HR manager recommend to confirm this?
ANSWER: Analyze the number of temporary employees compared to the number of permanent employees who leave for salary-related reasons. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
An HR manager reports to an HR director in a large, multinational organization that many of the employees enrolled in a career advancement program seem to have the same backgrounds. HR uses predictive analytics to identify high-potential individuals and invite them to apply to the program. What should the HR director do?
ANSWER: Assemble an expert HR team to examine the predictive analytics tool. RATIONALE: Artificial intelligence, such as a selection tool based on predictive analytics, can, in fact, be biased if its algorithms are biased. The tool's premises should be closely examined. Relinquishing technology and inviting everyone to apply is inefficient and impractical. Analyzing previous graduates can result in perpetuating past biases.
What is a key benefit to HR leaders of a business intelligence system?
ANSWER: Better evidence-based decisions RATIONALE: A business intelligence system is designed to provide leaders with more data and better means to analyze the data. This allows leaders to make better decisions that are based on actual data rather than on "instincts" or "best guesses." It does not necessarily improve data security, especially since it gathers more data from more points. Nor does it necessarily provide access to all staff levels. Leaders may spend more time analyzing but may make better decisions.
The sales department of a company is in the midst of reorganization. An important factor in the decision to reorganize was the president's concern over lagging sales and missed targets for the past two years and a desire to restructure the compensation plan for this group. Once the reorganization was announced, the director of the sales group resigned. This gave the company the opportunity to restructure the leadership of this area, resulting in a new vice president (VP) of sales being hired, replacing the former one. As part of the new VP's onboarding, the HR director updates the VP on the sales reorganizing activities to date and on employee performance in the area. He also shares the proposed structural changes and indicates that the former VP sales leader may have shared these plans prematurely with the sales staff. The plans include possible staff reductions and ending unprofitable customer relationships. QUESTION 1 OF 2: What should the HR manager do to ensure that the new incentive plan will drive behaviors that will result in increased sales?
ANSWER: Communicate to sales the reason why the plan is being implemented, including how individual performance drives incentives. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
An organization has decided to make a significant shift in strategy. What does the director of HR need to do when preparing the HR budget for the upcoming year?
ANSWER: Compare current activities and budget allocations with what will be needed to support the new strategy. RATIONALE: Strategic initiatives can result in different employee head counts, additional HR services such as recruitment, and other expenses. It will be important to determine what new HR initiatives will be needed rather than just assuming that the HR budget will be similar to that of the prior year.
A 30-year-old beverage company manufactures under its own label as well as private labels for a number of retailers that operate internationally. Slim margins and tight competition in the industry have caused the company to look at its operations and decide to merge with a competitor. The newly formed company will operate under the banner of the original company, and the second company will operate as an enhanced product line. The merger has created a lot of excitement among the leadership teams of both companies, as it means expansion into new markets and product lines. The merger information was shared with the European operations works council, and, after much discussion, is moving forward. Employees in the European locations are not, however, pleased that the merger is going ahead. The senior vice president (SVP) of HR has heard that employees are trying to mobilize and are planning a European Day of Action, where they will hold demonstrations, pass out leaflets, and conduct media interviews to share why this merger is not in the best interests of the employees. Employees are also requesting to meet with key organizational leaders, including the SVP of HR. The final hurdle that the organization is awaiting is regulatory approval. Once that is received, the newly merged entity will further review the combined operations and duplication of positions, roles, and responsibilities. They believe they can reduce the overall workforce by 15%. QUESTION 3 OF 3: Which action should the SVP HR take to effectively communicate information about the merger's effect on the workforce to the employees?
ANSWER: Create a global communication plan, beginning with a description of high-level changes and advising that details will follow after a thorough review. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
Which is the most effective way for HR Management to influence an organization's value chain?
ANSWER: Creating universal training and development standards across the organization. RATIONALE: As a support activity, HR Management can help consolidate training and development initiatives across the organization which promotes efficiency and consistency throughout a value chain. HR should not be influencing marketing strategies or determining budget requirements for primary activities. Outsourcing supporting activities with high overhead is not feasible and does little to influence the value chain by way of coherent human capital planning.
The sales department of a company is in the midst of reorganization. An important factor in the decision to reorganize was the president's concern over lagging sales and missed targets for the past two years and a desire to restructure the compensation plan for this group. Once the reorganization was announced, the director of the sales group resigned. This gave the company the opportunity to restructure the leadership of this area, resulting in a new vice president (VP) of sales being hired, replacing the former one. As part of the new VP's onboarding, the HR director updates the VP on the sales reorganizing activities to date and on employee performance in the area. He also shares the proposed structural changes and indicates that the former VP sales leader may have shared these plans prematurely with the sales staff. The plans include possible staff reductions and ending unprofitable customer relationships. QUESTION 1 OF 2: What recommendation should the HR director make to influence the VP to focus on the retention of key salespeople?
ANSWER: Develop a bonus system to align with the mission, vision, and core values of the organization. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
The sales department of a company is in the midst of reorganization. An important factor in the decision to reorganize was the president's concern over lagging sales and missed targets for the past two years and a desire to restructure the compensation plan for this group. Once the reorganization was announced, the director of the sales group resigned. This gave the company the opportunity to restructure the leadership of this area, resulting in a new vice president (VP) of sales being hired, replacing the former one. As part of the new VP's onboarding, the HR director updates the VP on the sales reorganizing activities to date and on employee performance in the area. He also shares the proposed structural changes and indicates that the former VP sales leader may have shared these plans prematurely with the sales staff. The plans include possible staff reductions and ending unprofitable customer relationships. QUESTION 2 OF 2: What actions should the HR manager take to influence the production manager to support a more comprehensive organizational effectiveness and development (OED) intervention?
ANSWER: Develop a business case proposal for a comprehensive integrated solution that includes costs, benefits, risks, anticipated timeline, and projected ROI. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
A new HR leader has been recently hired as the chief human resources officer (CHRO) for a global organization. The CEO has indicated a need for HR to demonstrate its strategic value to the organization and has provided the CHRO with full support to make any necessary changes, including adjustments to HR staffing and, if necessary, a complete restructuring of the department. The CEO has requested an HR strategic plan within a six-month period. To better understand HR in the organization and to identify gaps, the CHRO develops and administers a survey to measure the current effectiveness of the HR team as well as perceptions regarding HR's contribution to the success of the organization. The survey yields the following key themes for the CHRO to consider: Internal clients value the HR business partners and maintain strong relationships with them. The HR team does a good job overall, but clients wish HR understood their clients' businesses better. While clients trust their business partners, they sometimes doubt the information or advice provided by the HR team. Clients appreciate that the HR team will go outside the scope of their roles to take on tasks such as meeting and event planning when needed. QUESTION 3 OF 3: Which steps should the CHRO take first to effectively communicate the changes in HR strategy and structure that are being considered to the organization?
ANSWER: Develop a detailed communication plan, and review it with the senior leadership team. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
A company has entered a period of no growth or new business initiatives. What type of initiative is the HR director most likely to support during a budget meeting with the HR team?
ANSWER: Enhancement of work/life balance including compressed workweeks RATIONALE: The company is entering the decline phase of its life cycle and will have fewer resources. The HR director will be interested in any way to retain current employees without significant resource or budget impact. Without incoming revenue, it cannot expand recruiting capabilities and does not need to. Reviewing policies will not enhance engagement and retention. A pay-for-performance system would require a significant investment in the payroll budget.
The IT department at a large university has historically hired temporary employees for its entry-level positions. These positions are often low-paying, which leads to high turnover and the loss of high-potential talent. Because of the IT department's large size, the in-house HR staff spends a fair amount of time and resources working on filling these positions. The HR staff believes that the IT department should consider hiring for permanent positions and offering more competitive salaries. However, leadership of the university has resisted this idea because of budgetary concerns and the belief that the IT department can always find a new graduate willing to work in a temporary position to obtain experience. The HR manager is finding that the HR staff cannot fulfill their other responsibilities because they are spending too much time focusing on the needs of the IT department. QUESTION 2 OF 4: IT managers are concerned about the effects of turnover on morale. The managers ask the HR manager to lead a meeting with all IT department staff. Which action should the HR manager take for this meeting?
ANSWER: Explain to the IT department staff the efforts that the HR staff is making to reduce turnover in the IT department. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
A small non-profit organization has just hired a new CEO. Over the past few years under the previous CEO, the organization has struggled to remain in business as revenues have dropped. Morale and engagement have also dropped significantly. Based on the HR manager's observations, this drop in morale and engagement was connected to the previous CEO's leadership practices as well as the declining revenues. However, the HR director believes the low engagement also contributed to the continued decline in revenues. The new CEO, who has heard that morale and engagement are low in the organization, wants to make a quick impact on the organization by finding ways to increase morale and engagement rapidly. The CEO believes that HR is core to organizational success and that the current employees are the most important resource. The CEO calls a meeting with the HR director for an evaluation of the current state of the staff. During the presentation, the HR director shares data about hiring and turnover rates, benefit usage, and compensation ratios. QUESTION 2 OF 3: What would be an effective next step?
ANSWER: Hold listening sessions with employees to obtain their feedback on the strategy before finalizing it. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
Finance requests HR's input on human capital costs in the upcoming budget period. Which information has the largest impact on the budget? Answers
ANSWER: Increased staffing need estimates received from all divisions RATIONALE: Increased staffing, incurring additional wages/salary and tax expense, will have the largest impact on the budget overall.
The sales department of a company is in the midst of reorganization. An important factor in the decision to reorganize was the president's concern over lagging sales and missed targets for the past two years and a desire to restructure the compensation plan for this group. Once the reorganization was announced, the director of the sales group resigned. This gave the company the opportunity to restructure the leadership of this area, resulting in a new vice president (VP) of sales being hired, replacing the former one. As part of the new VP's onboarding, the HR director updates the VP on the sales reorganizing activities to date and on employee performance in the area. He also shares the proposed structural changes and indicates that the former VP sales leader may have shared these plans prematurely with the sales staff. The plans include possible staff reductions and ending unprofitable customer relationships. QUESTION 2 OF 2: What actions should the HR director take to demonstrate an understanding of the priorities of both the sales function and the organization?
ANSWER: Listen to the VP's needs and thoughts, and then offer ideas to create the appropriate sales structure. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
The IT department at a large university has historically hired temporary employees for its entry-level positions. These positions are often low-paying, which leads to high turnover and the loss of high-potential talent. Because of the IT department's large size, the in-house HR staff spends a fair amount of time and resources working on filling these positions. The HR staff believes that the IT department should consider hiring for permanent positions and offering more competitive salaries. However, leadership of the university has resisted this idea because of budgetary concerns and the belief that the IT department can always find a new graduate willing to work in a temporary position to obtain experience. The HR manager is finding that the HR staff cannot fulfill their other responsibilities because they are spending too much time focusing on the needs of the IT department. QUESTION 1 OF 4: Which action should the HR manager take to convince leadership at the university to approve offering permanent positions with higher salaries for the IT department?
ANSWER: Present a comparison of the cost of offering permanent positions with higher salaries to the cost of continuing to fill temporary positions at the current rate. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
A 30-year-old beverage company manufactures under its own label as well as private labels for a number of retailers that operate internationally. Slim margins and tight competition in the industry have caused the company to look at its operations and decide to merge with a competitor. The newly formed company will operate under the banner of the original company, and the second company will operate as an enhanced product line. The merger has created a lot of excitement among the leadership teams of both companies, as it means expansion into new markets and product lines. The merger information was shared with the European operations works council, and, after much discussion, is moving forward. Employees in the European locations are not, however, pleased that the merger is going ahead. The senior vice president (SVP) of HR has heard that employees are trying to mobilize and are planning a European Day of Action, where they will hold demonstrations, pass out leaflets, and conduct media interviews to share why this merger is not in the best interests of the employees. Employees are also requesting to meet with key organizational leaders, including the SVP of HR. The final hurdle that the organization is awaiting is regulatory approval. Once that is received, the newly merged entity will further review the combined operations and duplication of positions, roles, and responsibilities. They believe they can reduce the overall workforce by 15%. QUESTION 2 OF 3: Which actions should the SVP of HR take first to respond to the news about the threatened work actions?
ANSWER: Review the business continuity plan with leaders and develop a short-term staffing plan. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
A 30-year-old beverage company manufactures under its own label as well as private labels for a number of retailers that operate internationally. Slim margins and tight competition in the industry have caused the company to look at its operations and decide to merge with a competitor. The newly formed company will operate under the banner of the original company, and the second company will operate as an enhanced product line. The merger has created a lot of excitement among the leadership teams of both companies, as it means expansion into new markets and product lines. The merger information was shared with the European operations works council, and, after much discussion, is moving forward. Employees in the European locations are not, however, pleased that the merger is going ahead. The senior vice president (SVP) of HR has heard that employees are trying to mobilize and are planning a European Day of Action, where they will hold demonstrations, pass out leaflets, and conduct media interviews to share why this merger is not in the best interests of the employees. Employees are also requesting to meet with key organizational leaders, including the SVP of HR. The final hurdle that the organization is awaiting is regulatory approval. Once that is received, the newly merged entity will further review the combined operations and duplication of positions, roles, and responsibilities. They believe they can reduce the overall workforce by 15%. QUESTION 1 OF 3: Which is the best first step the SVP of HR should take in response to the request of the European employees to meet with the organization's leaders?
ANSWER: Review the works council agreement to determine the best advice to provide management. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
A new HR leader has been recently hired as the chief human resources officer (CHRO) for a global organization. The CEO has indicated a need for HR to demonstrate its strategic value to the organization and has provided the CHRO with full support to make any necessary changes, including adjustments to HR staffing and, if necessary, a complete restructuring of the department. The CEO has requested an HR strategic plan within a six-month period. To better understand HR in the organization and to identify gaps, the CHRO develops and administers a survey to measure the current effectiveness of the HR team as well as perceptions regarding HR's contribution to the success of the organization. The survey yields the following key themes for the CHRO to consider: Internal clients value the HR business partners and maintain strong relationships with them. The HR team does a good job overall, but clients wish HR understood their clients' businesses better. While clients trust their business partners, they sometimes doubt the information or advice provided by the HR team. Clients appreciate that the HR team will go outside the scope of their roles to take on tasks such as meeting and event planning when needed. QUESTION 1 OF 3: After review of the survey results, what is the best action the CHRO should take to better understand the themes uncovered?
ANSWER: Select a sample group of managers and employees to meet and review the results and to develop preliminary actions. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
The IT department at a large university has historically hired temporary employees for its entry-level positions. These positions are often low-paying, which leads to high turnover and the loss of high-potential talent. Because of the IT department's large size, the in-house HR staff spends a fair amount of time and resources working on filling these positions. The HR staff believes that the IT department should consider hiring for permanent positions and offering more competitive salaries. However, leadership of the university has resisted this idea because of budgetary concerns and the belief that the IT department can always find a new graduate willing to work in a temporary position to obtain experience. The HR manager is finding that the HR staff cannot fulfill their other responsibilities because they are spending too much time focusing on the needs of the IT department. QUESTION 3 OF 4: The HR manager suspects that leadership's beliefs prevent hiring the best talent. Which action should the HR manager take to show leadership that the university must do more to compete for talent?
ANSWER: Share IT department metrics regarding how turnover of temporary IT staff affects project completion. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
A small non-profit organization has just hired a new CEO. Over the past few years under the previous CEO, the organization has struggled to remain in business as revenues have dropped. Morale and engagement have also dropped significantly. Based on the HR manager's observations, this drop in morale and engagement was connected to the previous CEO's leadership practices as well as the declining revenues. However, the HR director believes the low engagement also contributed to the continued decline in revenues. The new CEO, who has heard that morale and engagement are low in the organization, wants to make a quick impact on the organization by finding ways to increase morale and engagement rapidly. The CEO believes that HR is core to organizational success and that the current employees are the most important resource. The CEO calls a meeting with the HR director for an evaluation of the current state of the staff. During the presentation, the HR director shares data about hiring and turnover rates, benefit usage, and compensation ratios. QUESTION 1 OF 3: The new CEO feels that, for engagement to increase, employees must be united around a new, compelling strategy. The CEO has the basic idea of what the new strategy should be. How should the HR director advise the CEO to move forward?
ANSWER: Suggest that the CEO walk throughout the organization and informally chat with employees. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
A new HR leader has been recently hired as the chief human resources officer (CHRO) for a global organization. The CEO has indicated a need for HR to demonstrate its strategic value to the organization and has provided the CHRO with full support to make any necessary changes, including adjustments to HR staffing and, if necessary, a complete restructuring of the department. The CEO has requested an HR strategic plan within a six-month period. To better understand HR in the organization and to identify gaps, the CHRO develops and administers a survey to measure the current effectiveness of the HR team as well as perceptions regarding HR's contribution to the success of the organization. The survey yields the following key themes for the CHRO to consider: Internal clients value the HR business partners and maintain strong relationships with them. The HR team does a good job overall, but clients wish HR understood their clients' businesses better. While clients trust their business partners, they sometimes doubt the information or advice provided by the HR team. Clients appreciate that the HR team will go outside the scope of their roles to take on tasks such as meeting and event planning when needed. QUESTION 2 OF 3: Given the lack of trust in members of the HR team, which step should the CHRO take to best improve the perception of team members?
ANSWER: Task the HR business partners with facilitating interactions between stakeholders and other HR team members. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
Management tells HR that it should budget for an increase in the hiring rate in the upcoming year but that HR head count cannot increase. How will this affect the HR budget?
ANSWER: The budget for variable cost items will increase. RATIONALE: The budget cannot remain the same because variable costs associated with hiring tasks (costs affected by the volume of activity) will increase. As long as function responsibilities, facilities, and staffing levels remain the same, fixed costs should stay the same. The increase in costs will be driven by the number of new hires; it will not be an incremental increase in the budget.
A small non-profit organization has just hired a new CEO. Over the past few years under the previous CEO, the organization has struggled to remain in business as revenues have dropped. Morale and engagement have also dropped significantly. Based on the HR manager's observations, this drop in morale and engagement was connected to the previous CEO's leadership practices as well as the declining revenues. However, the HR director believes the low engagement also contributed to the continued decline in revenues. The new CEO, who has heard that morale and engagement are low in the organization, wants to make a quick impact on the organization by finding ways to increase morale and engagement rapidly. The CEO believes that HR is core to organizational success and that the current employees are the most important resource. The CEO calls a meeting with the HR director for an evaluation of the current state of the staff. During the presentation, the HR director shares data about hiring and turnover rates, benefit usage, and compensation ratios. QUESTION 3 OF 3: One of the symptoms of the low engagement is that employees do not work the requisite number of hours, often coming in late and leaving early. Managers are not sure what to do, as they are afraid that punishing the employees will further hurt engagement. What should the HR director do?
ANSWER: Visit with any such employees one-on-one to discuss the reason for their behavior and set goals for improvement. RATIONALE: Situational judgment tests (SJTs) require the examinee to think about what is occurring in the scenario and decide which response option identifies the most effective course of action. Other response options may be something you could do to respond in the situation, but SJTs require thinking and acting based on the best of the available options. Do not base your answer on your organization's approach to handling the situation, but rather, answer based on what you know should be done according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of each response option, and the "best" answer is derived by statistical analysis of those expert opinions.
