Workplace Quizzes - SHRM-CP
Under the Worker Adjustment and Retraining Notification (WARN) Act of 1988, a plant with over 100 employees must give what minimum number of days of advance written notice of a plant closure?
60 Calendar Days With very limited exceptions, WARN specifies a minimum of 60 calendar days.
An employee believes that he was laid off for filing charges that the plant managers were enforcing unsafe practices to save time. What is the maximum amount of time OSHA has to complete an investigation of charges of employer discrimination?
90 Days Employees can expect OSHA to complete investigations of employer discrimination within 90 days.
Which best defines the concept of moral hazard?
A person engages in risky behavior knowing that someone else will absorb any losses Moral hazard exists when someone takes risks because he or she will not be affected by losses or damages that occur as a result.
Which method is most effective for controlling hazards and their negative consequences?
Abate and eliminate the hazard from the workplace The most effective way to control hazards and their consequences is to engineer them out of the workplace. For example, a sawmill may design the cutting process so that the level of sawdust is acceptable.
Several employees were hurt in an accident in the manufacturing department. To evaluate the effectiveness of the organization's risk controls, HR conducted a meeting with the department supervisor. Which document would provide the best information for this meeting?
After-action debrief report An after-action report examines what happened, why it happened, what was done at the time, and what could have been done better. The incident report, compliance audit, and OSHA checklist document only incidents, their frequency, and, in some situations, what was done; no evaluation is made of the effectiveness of the organization's existing risk controls.
A CEO assigns employees to participate in fund-raising for a nonprofit school for students with learning disabilities. The company provides time off and covers the employees' expenses. Employee contributions and school accomplishments are communicated in newsletters and at annual meetings. How could this attempt at community involvement be improved?
Allow employees more voice in choosing the community involvement partner Although the cause may be worthy, it would be better if employees were more involved in choosing a partner and project rather than being assigned to one by the organization's leader.
Which best describes a global organization?
An organization whose processes, actions, and decisions are firmly rooted in a carefully conceived global strategy Because of technologies and the growing ease of doing business across borders, a global organization is no longer defined by its size or physical presence in multiple countries but by its global strategy.
- Expected monetary loss for an asset due to a risk over a one-year period - Calculated by multiplying single loss expectancy by annualized rate of occurrence
Annualized Loss Expectancy (ALE)
Employees who work outside their home countries
Assignees
How often should an organization review the components of its enterprise risk management framework?
At an agreed-upon and regular interval Components of an organization's risk management framework should be reviewed at an agreed-upon and regular interval as well as after major incidents.
A technical recruiter receives a job description from a hiring manager. One of the requirements listed by the manager states that the position is not ideal for single parents. Which risk management strategy should the technical recruiter use to avoid similar situations in the future?
Avoid the risk by training hiring managers and reviewing all job descriptions before use This risk can and should be avoided through training and a review process. An employer cannot ignore, mitigate (lessen), or transfer the legal obligation to avoid discrimination.
An organization gains many benefits from its employees volunteering in the community. How can volunteering help the employees?
By building skills Volunteering can allow employees to learn new skills while helping in the community.
How does the demographic dichotomy bring new attention to generational differences?
By identifying educational skills and deficits between emerging and developed economies In the growing demographic dichotomy, developed countries are facing an aging workforce while emerging economy workforces are much younger. Globalization has brought new attention to generational, as well as cultural, diversity.
How do the three spheres of sustainability support an effective corporate social responsibility (CSR) program?
By offering an all-encompassing view of how an organization should function The term "sustainability" originally referred to an ecological or environmental goal. Now that focus has expanded to also consider an organization's social and economic impact (sometimes referred to as the 3Ps: people, planet, profits). Based on stakeholder demands, the three spheres attempt to provide a balanced focus to the organization's goals, objectives, and outcomes.
Leadership has requested HR to design a program to allow employees to telecommute. How will this advance the organization's sustainability?
By reducing organization's carbon footprint There are seven areas in which HR has a role in when advancing sustainability. How people work is one of those areas; it can affect the organization's carbon footprint.
What is the relationship between corporate social responsibility (CSR) and sustainability?
CSR encompasses sustainability The definition of CSR has broadened from the traditional areas of ethics, governance, corporate philanthropy, and volunteerism to include sustainability.
Which best illustrates the principle of sustainability in the workplace?
Changes to a headquarters location are weighed against the effects on stakeholders Sustainable workplace policies focus on long-term effects and the integrated needs of people, the environment, and economic needs. Including a careful assessment of a change that would affect a large number of employees and the surrounding communities is sustainable.
Which is one of the negative social effects of global technological forces?
Complexity of privacy issues Because of technology and integration of information, privacy issues have become much more ubiquitous and complex. Privacy issues range from employer-employee privacy to compliance questions raised by government requests for customer data from corporations. In response to the prevalence of issues, many countries have instituted privacy laws.
State of being in accordance with all national, federal, regional, and/or local laws, regulations, and/or other government authority requirements applicable to the places in which an organization operates
Compliance
Which responsibilities are usually charged to a safety committee?
Conducting area safety inspections and evaluating hazards The safety committee has ongoing responsibility for conducting area safety inspections and evaluating hazards. They also review safety programs and recommend improvements. They may direct training but do not necessarily have the responsibility to facilitate it. They do not complete regulatory forms.
Which training method is best used for training employees on an emergency response plan?
Conducting drills and role plays The best way to practice any skill is to actually do the tasks involved. This also holds true for training in emergency response plans. If having the entire plant take part in the drill poses a production issue, parts of the plan can be drilled at a time.
Situation in which a person or organization may benefit from undue influence due to involvement in outside activities, relationships, or investments that conflict with or have an impact on the employment relationship or its outcomes
Conflict of Interest
Protocol that an organization implements when an identified risk event occurs
Contingency Plan
Which action best characterizes an organization that approaches global assignments from a strategic-systematic perspective?
Coordinating critical functions among the home office and foreign locations The strategic-systematic approach to global assignments, which is characterized by coordinating and controlling functions among the home office and foreign locations, is more cost-effective than the alternative tactical-reactive approach and yields much better long-term results.
- Varying ways an organization can create value, looking beyond traditional profit measures of revenue and expenses - Includes such areas as philanthropy, volunteerism, corporate-sponsored community programs, social change, sustainability, corporate governance, employee rights, and workplace safety
Corporate Social Responsibility (CSR)
Which growth strategy is commonly used to accelerate the path to globalization?
Creating alliances Alliances, partnerships, and acquisitions are all vehicles that can accelerate the path to globalization. Internal expansion and restructuring can be time-consuming as the organization adjusts. While outsourcing can be a global strategy, its general goal is to reduce costs.
Which is an example of a "push" factor in globalization?
Current home-country market saturation If its current market is completely saturated, offering no potential for significant growth, this may "push" an organization into efforts to globalize. Global expansion will allow the continuous growth in revenue that management and/or investors may require.
To approach global assignments from a strategic-systematic perspective, which action should HR take?
Develop future executives with essential global perspectives Developing future executives with essential global perspectives is a primary action in a strategic-systematic approach.
Which does not count toward the regular rate of pay for overtime calculations?
Discretionary bonuses Discretionary bonuses do not count toward the regular rate of pay. All the other choices (shift premiums, sales commissions, and production bonuses) do count toward overtime calculations.
Principle that organizations should take all steps that are reasonably possible to ensure the health, safety, and well-being of employees and protect them from foreseeable injury
Duty of Care
Which of the following is the best reason to maintain employment records electronically?
Easier storage and access for records that span many years In the event that a claim is asserted, HR needs to be able to access documents even remotely related to the claim. Because of Department of Labor guidelines, electronic record-keeping systems should be capable of indexing, retaining, preserving, retrieving, and reproducing all electronic records stored in the system with relative ease. This represents the best reason to maintain records electronically.
Which option best defines risk?
Effect of uncertainty on the ability to meet organizational objectives The ISO definition of risk is simply "the effect of uncertainty on objectives." Uncertainty can be positive or negative in its effects. The other choices emphasize negative risk or assessments of risk occurrence.
An organization is moving from employees working in silos to a team environment. Which corporate social responsibility activity best supports this initiative?
Employee volunteerism All activities listed will help with employees learning to work within a group, but employee volunteerism is the only one that can be part of a corporate social responsibility activity.
Which activity is prohibited by the National Labor Relations Act (NLRA)?
Employer domination of unions The NLRA attempted to balance the interests of management and labor and prohibited the employer from unfair labor practices such as union domination. The NLRA did not prohibit collective bargaining; it established mandatory subjects for collective bargaining.
Which PESTLE force has caused a change to corporate branding?
Environmental concerns Environmental concerns have resulted in sustainability becoming central to corporate branding.
For an organization to be considered sustainable, what areas of practice are examined?
Environmental, economic, social Environmental, economic, and social are the three spheres of sustainability.
What is the role of HR when it comes to whistleblowing?
Establishing a communication process that allows direct access to upper-level decision makers and protecting whistleblowers from retaliation HR should ensure that whistleblowing complaints reach upper-level management and should protect whistleblowers from retaliation by coworkers or managers. In some locations, whistleblowers are protected by law. HR should not seek to independently address whistleblowing complaints or encourage or engage in retaliation against whistleblowers.
Set of behavioral guidelines that an organization expects all of its directors, managers, and employees to follow to ensure appropriate moral and ethical business standards
Ethics
Why is ethics an intrinsic part of a corporate social responsibility program?
Ethics dictates behavioral guidelines for an organization Ethics is a set of behavioral guidelines an organization expects all to follow. Compliance is based on laws and regulations and allows for adherence to the letter of the law.
To meet a safety goal, an organization provided training to employees. The number of injuries, however, has not decreased over the last three years. What should the HR training manager do?
Evaluate and adjust the training Evaluating the training will allow the company to identify whether the issue is with the training or the people, and adjustments can be made accordingly. Developing new content or hiring an outside consultant without evaluating the training could be a waste of time and resources. Making the training mandatory doesn't help if the training is ineffective.
The president of the United States issues a directive on immigration. This is an example of a legal protection originating from what source?
Executive Order An executive order is a directive originating from the chief executive of a governmental unit.
HR has been charged with benchmarking the organization's sustainability performance against that of its global competitors. Which resource will best help HR accomplish this?
GRI Sustainability Reporting Standards The GRI Sustainability Reporting Standards enable meaningful and consistent comparisons of organizations' sustainability performance.
What U.S. employer action does the Patient Protection and Affordable Care Act (PPACA) require?
Give plan participants a summary of benefits and coverage prior to an enrollment change Under the PPACA, employers are required to provide plan participants and beneficiaries with a summary of benefits and coverage prior to enrollment or reenrollment. The requirement to provide notices of material changes is 60 days in advance of the effective date of change, and the requirement for coverage of adult dependents is 26 years of age. Establishing limits on essential health benefits is prohibited.
Globalization strategy that emphasizes consistency of approach, standardization of processes, and a common corporate culture across global operations
Global integration (GI)
Status of growing interconnectedness and interdependency among countries, people, markets, and organizations worldwide
Globalization
System of rules and processes set up by an organization to ensure its compliance with local and international laws, accounting rules, ethical norms, internal codes of conduct, and other standards
Governance
A cosmetics company that denounces animal testing as a primary part of its branding was recently reported to be working with suppliers that routinely test on animals. Which aspect of the corporate social responsibility (CSR) strategy is misaligned?
Governance An organization with good governance is transparent and accountable at each level and function. By buying from suppliers that test on animals, the organization is intentionally deceiving consumers and being opaque rather than transparent.
What type of system does HR help develop that puts rules and processes in place for the organization to go by?
Governance Governance is a system of rules and processes that ensure compliance with laws, ethical norms, and a social code of conduct. Codes of conduct and compliance are part of governance. A social audit is something you would perform to determine if you are in compliance.
Which term describes a system of rules and processes put in place to ensure compliance with local and international laws, accounting rules, ethical norms, and environmental and social codes of conduct?
Governance Governance is the system of rules and processes an organization puts in place to ensure its compliance with local and international laws, accounting rules, ethical norms, and environmental and social codes of conduct. Good governance is the outcome of a thoughtful assessment of an enterprise's legal, ethical, and civic obligations to the communities it serves and the development of systems that support fulfillment of these obligations.
Which court case established the criteria for disparate impact?
Griggs v. Duke Power Griggs v. Duke Power recognized disparate impact and established that it is not necessarily enough to show a lack of discriminatory intent. Phillips v. Martin Marietta Corp. applied the sex discrimination provisions of Title VII to employment decisions. Ledbetter v. Goodyear Tire and Rubber Company involved sex discrimination in pay under Title VII. National Federation of Independent Business v. Sebelius considered two key PPACA provisions.
Potential for harm, often associated with a condition or activity that, if left uncontrolled, can result in injury or illness
Hazard
Which risk category would include the risk posed by infectious disease?
Hazard The hazard risk category includes risk sources from injury and illness. Infectious disease would fall under this risk category.
Which can best be used in the evaluation of the outcomes of a compliance program?
How willing the participants are to report issues of noncompliance The evaluation of a compliance program monitors which program activities are actually performed and what their outputs are-the actual results achieved by the program.
An organization needs to prioritize spending for its risk management initiatives. Which is the first step the HR leader should take?
Identifying processes and individuals critical to the organization's delivery of value While all of the stated choices may help develop an appropriate risk management plan, a good first step is to identify critical processes and individuals essential to the organization's continued functioning. This will help the organization focus its resources in the most effective manner.
The vice president of operations has asked the chief human resources officer (CHRO) to determine the risk levels across the organization's three offices. With the help of the HR team, the CHRO conducts surveys, interviews, and focus groups to collect data. During which phase of the risk management process are these activities occurring?
Identifying risks Surveys, interviews, and focus groups are methods used to identify risks. The organization must first identify the risks so that they can be analyzed, evaluated, and then managed.
Extent to which diversity is embraced in management of people, products/services, and branding
Identity Alignment
How does HR support strategic management in a global organization?
Implement processes to increase integration and knowledge exchange Implementing processes to increase integration and knowledge exchange achieves two goals. First, it aligns organizational values and goals and HR policies across global locations. Second, it establishes processes that promote collaboration and knowledge sharing across geographical boundaries.
Which best identifies the outcome of requiring all employees to be trained in business continuity and disaster recovery plans?
Increased confidence among organization stakeholders Preparation for crises and business interruptions demonstrates quality management practices and would boost stakeholder confidence and public image. It would not affect the likelihood of occurrence, nor would it decrease risk management budgets.
At which point in the corporate social responsibility (CSR) strategic process should a global organization decide on using local leadership?
Infrastructure creation The infrastructure creation step involves creating the infrastructure that will be responsible for guiding, overseeing, administering, reviewing, and championing the CSR strategy. For a global corporation, that includes determining whether local departments, divisions, or individuals will be responsible for local efforts and how these will coordinate with global goals and initiatives.
An organization develops its products, processes, and strategy in a home country, however, they export their products to foreign countries where they also have a production facility. Which term best describes this company?
International International organizations export their products or services to foreign countries. While they may open production facilities or service centers in those countries, the products/services, processes, and strategy are developed in the home country.
How does the Weingarten case apply to an investigatory meeting to obtain information that is the basis for disciplinary action?
It allows a union representative to be present during the meeting The Weingarten case gave union workers the right to request the presence of a union representative at an investigatory meeting (a meeting whose purpose is to gather facts). Friends, relatives, or an attorney may not be present. These rights apply only to an investigatory interview, not to meetings that impose disciplinary action.
What did United States v. Windsor, Obergefell v. Hodges, and similar Supreme Court rulings establish?
It is unconstitutional for one state to not recognize the same-sex marriages recognized by other states The Defense of Marriage Act (DOMA) defined marriage as the union of one man and one woman and permitted states to not recognize same-sex marriages recognized by other states. The rulings specified in the question made this law unconstitutional.
What is the result of a geocentric approach to compensation and benefits strategy within a global organization?
It provides a single cohesive approach that allows leaders to look at benefit offerings on a broader scale In a geocentric organization, an international company is seen as a team, with management talent coming from any location in the enterprise. The strategic plan is to balance the global strategy with local culture and regulations.
Why is cross-cultural training critical for international assignees and their families?
It reduces the risk of failed assignments Effective international assignments involve many practices. Cross-cultural training for assignees and their families not only reduces the risk of failed assignments but also helps to manage expectations and to facilitate adjustment and performance.
Metrics that provide an early signal of increasing risk exposures for an enterprise
Key Risk Indicators (KRIs)
Globalization strategy that emphasizes adapting to the needs of local markets and allows subsidiaries to develop unique products, structures, and systems
Local Responsiveness (LR)
Which of the following is true regarding marijuana laws?
Marijuana remains illegal under the federal Controlled Substances Act Marijuana is legal in multiple states for medical or recreational use, but it remains illegal under the federal Controlled Substances Act. This act does not feature an exemption for medicinal use. Both firing employees following a failed drug test and accommodating employees' use of medicinal marijuana may depend on current state regulations.
Which type of program promotes ongoing career development support, repatriation assistance, and advice for international assignees?
Mentoring Mentoring programs can be very significant for the international assignee. They provide a number of benefits including the value of having an advocate and personal mentor while abroad.
Situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will incur any resulting loss
Moral Hazard
A Taiwanese manufacturer for major global brands has production locations in several countries, including Vietnam, Turkey, Mexico, and the United States. What offshoring trend does this exemplify?
Multidirectional shift in the flow of offshoring jobs to and from developed and emerging economies The motivations for offshoring, and, consequently, where it is taking place and which firms are adopting it as a global strategy, are changing as a result of new globalization forces, principally the shift from developed to emerging economies. The flow of offshoring jobs is now going in both directions or, rather, in many directions at once.
Organizations that own or control production or service facilities in one or more countries other than the home country
Multinational Enterprises (MNEs)
Practice of contracting a part of business processes or production to an external company in a country that is relatively close (for example, within the same own region)
Near-Shoring
In pursuit of cost savings, a western European company decides to partner with an organization in central Europe. In addition to a lower cost base, the company chose this partner over a Chinese prospect because of reduced geographical, cultural, and linguistic differences. Which outsourcing arrangement does this describe?
Near-shoring This is an example of near-shoring, where an organization outsources part or all of its operations to a nearby country. In this scenario, the manufacturer moves some of its operations to a lower-cost organization while maintaining geographic and cultural proximity. As such, travel distances will be less than relocating to China, and the new partner will most likely be more culturally aligned.
Which of the following is a "push" factor for global expansion?
Need for new markets Organizations are pushed toward globalization in reaction to changes in the business environment. The other factors listed here are "pull" factors. Organizations are pulled toward globalization through the promise of achieving greater organizational value.
What best describes the population of the employee workforce that is protected under the National Labor Relations Act (NLRA)?
Nonsupervisory Nonsupervisory employees are covered under the NLRA. Supervisory employees are considered management. Both union and nonunion employees are protected by the NLRA. (It is a common mistake for many employers to believe that only unionized employees are covered.)
Which government body requires organizations to electronically submit illness and injury data?
Occupational Safety and Health Administration The Occupational Safety and Health Administration has revised its requirements to require certain employers to electronically submit injury and illness data for posting on the agency's website.
Method by which an organization relocates its processes or production to an international location through subsidiaries or third-party affiliates
Offshoring
Relocation of business processes or production to a lower-cost location inside the same country as the business
Onshoring
Process by which an organization contracts with third-party vendors to provide selected services/activities instead of hiring new employees
Outsourcing
Which is regulated by the Fair Labor Standards Act (FLSA)?
Overtime Pay Commonly referred to as the Wage and Hour Law, the FLSA governs employee status, overtime pay, and minimum wage. Employee benefits, sales commissions, and equal pay are not governed by the FLSA.
Which best demonstrates HR's role in managing organizational risk?
Participating in the identification and management of threats and opportunities across the organization The best role for HR is one that is proactive, not reactive, and that considers risk from an integrated enterprise perspective. The definition of risk appetite and risk tolerance is best made by senior management, however.
Which primary role does HR play in supporting global strategic management?
Partner to create the organization's global strategy HR can support strategic management by helping to create global strategy, aligning HR activities with it, adapting the activities to local needs, and enhancing communication between the organization and its stakeholders.
A large company denies health-care coverage for an employee's daughter who will be turning 26 in six months. What law does this practice violate?
Patient Protection and Affordable Care Act (PPACA) According to the Patient Protection and Affordable Care Act, an organization with 50 or more employees is required to cover employees' adult children until age 26.
According to Perlmutter's headquarter orientations, what structural strategy describes a company where host-country nationals usually staff and manage the local subsidiary?
Polycentric In a polycentric staffing orientation, host-country nationals staff and manage the local subsidiary. Host-country nationals are not usually promoted to headquarters positions.
Which situation that leads to workplace violence can be controlled by an organization?
Pressure for increased productivity Conditions causing employee frustration and anger can lead to violence. Examples include pressure for productivity, rigid management style, and layoffs.
Situation in which an agent (for example, an employee) makes decisions for a principal (for example, an employer) potentially on the basis of personal incentives that may not be aligned with the principal's incentives
Principal-Agent Problem
What factors does the risk equation use to determine level of risk?
Probability of occurrence and magnitude of impact In the risk equation, the level of risk equals the probability of occurrence multiplied by the magnitude of the impact of the risk event.
Extent to which underlying operations such as IT, finance, or HR integrate across locations
Process Alignment
Which is the best example of a regulation?
Process by which the Department of Labor clarifies the exempt status of employees Regulations are proposed, adopted, and enforced by administrative agencies. The Civil Rights Act of 1964 and the Fair Labor Standards Act are both examples of statutes. An interpretation of legal matters related to expatriation is an example of an agency guideline.
What is one thing an organization can do to help ensure a global assignment's success for both the individual and the organization?
Provide well-planned, ongoing training and support Ongoing training and support is critical throughout the assignment, not just before. Both expatriation and repatriation require equal attention. Assignments should be viewed as a process, not an activity. All criteria, not just functional and communication skills, should be considered in candidate selection.
An employee's ex-husband waits outside her place of work. When she emerges, he begins yelling. She retreats inside the building. The husband attempts to follow but is prevented by a door that locks automatically behind the employee. An HR staff member observes the incident. What action should the staff member take?
Recommend that those involved debrief the incident After-action debriefs are a good way to examine the effectiveness of a specific risk response strategy, presenting an opportunity for learning and improvement.
- Process by which an organization moves an employee out of an international assignment - Can involve moving back to the home country, moving to a different global location, or moving to a new location or position in the current host country
Redeployment
Which change might a corporation make in the way it does business to create a sustainability sweet spot?
Redesigning products so that components are made locally from recycled materials, thereby reducing production costs Sustainability sweet spots create a win-win situation in which the changed products, procedures, or processes have a positive impact on society and/or the environment but also on the organization's bottom line. A change that does social or environmental good but costs the organization may be admirable but is not a sweet spot initiative.
Process by which employees returning from international assignments reintegrate into their home country's culture, conditions, and employment
Repatriation
Which is an employee right identified under the Occupational Safety and Health (OSH) Act?
Requesting an OSHA inspection If employees believe an unsafe situation exists, they have the right to request an OSHA inspection. However, they are obligated to follow the employer's safety procedures, wear the proper protective equipment, and go through the proper channels in raising safety issues. The OSH Act does not deal with unfair labor practices.
What is the first step in developing an HR documentation policy?
Researching what laws apply, the records required, and the retention period HR must first identify its obligations (and risks) by defining the laws under which the employer is covered, what documents are required, and how long they must be retained. Establishing a framework and auditing practices cannot be performed until the requirements are identified. Documenting efforts and securing documents require attention but are later steps.
Amount of uncertainty that remains after all risk management efforts have been exhausted
Residual Risk
An assignee returning to the United States after several years in Asia says he feels like an alien at home and at work. What is the assignee experiencing?
Reverse culture shock Upon returning to their home country, many assignees experience reverse culture shock . The organization and their home surroundings are neither what they left nor what they anticipated returning to.
A multinational corporation known for its big, premium-priced ultrasound scanners) introduces a cheaper and portable version in emerging markets. The portable scanner creates new markets in small hospitals and for immobile patients. Which globalization force does this exemplify?
Reverse innovation All of these choices are examples of forces shaping globalization. This scenario describes reverse innovation. Historically, multinationals innovated in developed-economy countries and sold those products in emerging-economy countries. Reverse innovation is doing just the opposite. It is about innovating for or by emerging-economy countries and bringing those products to developed countries.
A mining company has had a safety program in place for over ten years. It has been effective in decreasing accidents and injuries. What should HR recommend?
Review the technology used in the program to see if newer, more effective technology is now available Changes in technology may mean that the organization could be better able to detect and deter threats. However, that doesn't mean that the organization should start from scratch with a new program. HR should work to assess the program and look for opportunities for continuous improvement.
Uncertainty that has an effect on an objective, where outcomes may include opportunities, losses, and threats
Risk
A high-level characterization of the amount of uncertainty (acceptable risk) an organization is willing to pursue or to accept to attain its risk management goals
Risk Appetite
Action taken to manage a risk
Risk Control
System for identifying, evaluating, and controlling actual and potential risks to an organization
Risk Management
Organization's desired gain or acceptable loss in value
Risk Position
- Tool used to gather individual assessments of various characteristics of risk (for example, frequency of occurrence - Degree of impact, loss, or gain for the organization; degree of efficacy of current controls)
Risk Scorecard
A characterization of the amount of uncertainty (acceptable risk) an organization is willing to pursue or to accept to attain its risk management goals, defined in a range above and below a target
Risk Tolerance
The HR department is instructed to fill a critical management position as quickly as possible. Using multiple agencies will produce more candidates more quickly but will increase the cost by several times. Which critical input should HR seek before deciding how to proceed?
Risk tolerance of the organization HR needs to know how management rates the level of risk in not filling this position quickly: their risk tolerance. This will help HR decide whether the increased cost of using multiple search firms is appropriate.
Which of the following factors influence an organization to expand globally?
Saturated market demand at home Saturated demand at home means that the only growth option (without developing new products and markets at home) is to find new customers in new countries.
Which is the best option to help an international assignee rapidly acclimate to the new country's culture?
Secure a specialized third-party vendor to provide the assignee with a customized settling-in program To navigate the complexities of global assignments, a specialized third-party vendor is the best resource. Although the other options may be generally helpful, they are not specifically targeted to assist the assignee in acclimating to the global assignment.
How is a risk control best understood by an organization?
Sharing a risk's occurrence or impact and its likelihood A risk control is an action taken to manage a risk: to enhance the potential of an upside risk or to decrease the potential negative effects of a downside risk.
- Expected monetary loss every time a risk occurs - Calculated by multiplying asset value by exposure factor
Single Loss Expectancy (SLE)
A risk scorecard provides a weighted number for each event or threat and the probability of that threat occurring. Which other factors are needed to complete a threat ranking index?
Speed of onset, existing mitigation, and severity of impact A risk scorecard starts by identifying the event or threat. After factoring in the event/threat probability, speed of onset, existing mitigation, and severity of the impact, the user will see a final number that displays a weighted threat ranking index. Risk level, impact, and the probability of event occurrence are components of a risk matrix that visually demonstrates risk levels. Risk category, classification, and reporting requirements may be documented in a risk register but are not used in scoring. Known knowns, known unknowns, and unknown unknowns are categories of risk from the perspective of the amount and kinds of knowledge available when evaluating the risk.
What are the primary categories of barriers to effective risk management?
Structural, cognitive, and cultural The primary categories of barriers to effective risk management are structural, cognitive, and cultural. An organization's structure, willingness to change, and values will impact its willingness to engage in risk management. Time, money, and resources and location, personnel, and equipment may be impacted by risk management efforts, but they don't drive those efforts. Similarly, opportunities, threats, and weaknesses may be part of what the organization looks at as part of its risk management efforts, but they don't drive those efforts.
As part of a software company's corporate social responsibility (CSR) program, during non-working hours employees volunteer time and expertise helping low-income people build their own small businesses. Participation has been consistent but at a very low level. What recommendation should HR make to assist the company in increasing employee involvement?
Support employee participation with paid time off An organization's CSR programs are more effective in involving employees if the organization actively supports employee involvement, e.g., allowing time off, paying related expenses. Increasing awareness through publicizing the program without actively facilitating employees' participation will probably be ineffective. This program is well aligned with the company's focus. Using company facilities may be problematic (e.g., security issues, transportation for program participants).
Practice of purchasing and using resources wisely by balancing economic, social, and environmental concerns, with the goal of securing the interests of present and future generations
Sustainability
How does duty of care translate to an organization's responsibilities?
Taking all steps reasonable to ensure employee health and safety Duty of care reflects an employer's responsibility to take all steps reasonably possible to support employee health and safety and prevent harm, whether the employee is in the workplace or on a remote assignment. This may involve but is not restricted to providing access to health care and complying with regulatory requirements.
An employee has been with a company for 25 years. During that time, the employee has received numerous bonuses and awards and was offered another position by a competitor. The employee is given a pay raise and assured that there will "always be a job for you here." Six months later, there have been management changes at the company, and the employee is terminated. Which of the following claims by the employee will be most effective?
The employer entered into an oral contract with the employee The best course of action by the employee may be to prove that an express oral contract existed and that he provided important consideration by not accepting the competitor's offer of employment. Such a contract need not be in writing, and the contract prevents the employer from claiming an employment at-will relationship.
Key contributors to a recently completed project received bonuses. A male employee received $4,000. A female employee in another state received $10,000. The male employee files a complaint with the Equal Employment Opportunity Commission (EEOC). The EEOC does not find reasonable cause for the complaint. What may happen next?
The male employee may file a lawsuit against the employer If the EEOC does not find reasonable cause, the complainant (here, the male employee) is notified of the finding and of a right to sue the employer. The EEOC's involvement ends here.
How does hyperconnectivity assist an organization in achieving its strategic goals?
Through the digital interconnection of people and things at any time and any place The World Economic Forum defines hyperconnectivity as the "increasing digital interconnection of people-and things-anytime and anyplace." It is the purely digital/virtual aspect of globalization's "accelerating interconnectedness."
Which is the most important reason for a global organization to have a values-based corporate social responsibility (CSR) strategy?
To create a foundation to make ethical decisions The values established create the foundation for ethical decisions. Avoiding business scandal, being in compliance, and building a better brand can also be considered reasons, but the values-based CSR strategy is the key to all decisions.
How are local cluster developments used in corporate social responsibility?
To create shared value Porter and Kramer argue that the success of most organizations is dependent on a cluster of other organizations (related businesses, suppliers, schools) and infrastructure (roads, communication networks, water and energy supply). Shared value results when organizations build and enhance the local cluster and improve the conditions of those operating in it, benefiting the organization and its community.
A small but growing organization is just beginning to build its corporate social responsibility (CSR) program. Which objective would be most appropriate for the organization at this stage?
To develop a CSR program that is aligned with the organization's business strategy CSR has moved up the sustainability maturity curve. In the past, CSR was seen as a tactical, public relations–centered way to "pay back" or do good, or a compliance activity, or a defensive maneuver to protect a company's reputation and share value. It has changed to a strategic approach that is fully integrated into an organization's mission and core business strategies. The starting point for any CSR strategy is thus to align CSR goals with core business goals.
What is the purpose of an HR compliance checklist?
To help ensure that the organization fulfills the requirements of HR laws and regulations HR audits and compliance checklists are often used to help ensure compliance with laws and regulations. They may lead an organization to correct disparities between required and actual practices. They may also lead to an image of propriety and garner positive word-of-mouth, but that is not their purpose.
In which way has globalization impacted how domestic organizations train managers?
Training includes cross-cultural sensitivity and adaptability Training should include cross-cultural sensitivity and adaptability. Even domestic companies are affected by global forces and should train managers to aid in developing a global mindset.
An organization has redefined its brand to demonstrate a commitment to corporate social responsibility (CSR). Which phase of the CSR maturity curve is the organization in?
Transformation Transformation is the phase in which organizations redefine themselves.
Economic, social, and environmental impact metrics used to determine an organization's success
Triple Bottom Line
Which is critical when considering forces for globalization?
Understand which forces are significant to the organization An HR professional's goal in considering any aspect of globalization is to strive to understand which globalization events, forces, and trends are significant for an organization and for HR responsibilities in that organization. Whatever the force's type or origin, its impact will be unique for that organization.
Technological forces have had which critical effect on today's corporate social responsibility (CSR) practices?
Using analytical capabilities has made CSR impacts more demonstrable Data mining and analytics capabilities have made CSR factors more readily measurable and their impacts more demonstrable and understandable. That in turn has increased accountability, helped shape regulatory requirements, and, where measurable performance results are positive, given organizations a powerful strategic tool.
HR is looking for ways to increase the organization's brand while developing the employees. How can this be achieved?
Volunteering Volunteering gives people a chance to learn new skills while representing the organization. Job sharing and rotation may improve an organization's effectiveness and productivity but not perceptions of its brand by external stakeholders. Outsourcing, if performed without due diligence, can hurt the organization's brand, but performed appropriately it will affect productivity and effectiveness rather than brand.
An organization examines the level of probability for all types of losses to which it may be exposed. What aspect of risk is the organization studying?
Vulnerability Vulnerability refers to the degree of probability that a loss will occur. Impact is the possible effect on the organization, and tolerance is the amount of risk the organization can handle if an event occurs. Mitigation planning occurs after analysis of probability, risk, and speed of onset.
How does the Weingarten ruling apply to nonunion employees?
Weingarten does not require that nonunion employees be allowed union representation during investigatory interviews Weingarten does not apply to nonunion employees, so employers are not required to allow union representation at an investigatory interview of a nonunion member. Weingarten does not cover unfair labor practices or participation in picket lines.
When does disparate treatment occur?
When a manager asks only female applicants questions about child care Disparate treatment discrimination occurs when employees in protected classes are intentionally treated differently from other employees or are evaluated by different standards. Examples include a manager who automatically rejects Mexican-American applicants on the grounds that they might be illegal aliens and having different entry requirements for women than for men.
Reporting of an organization's violations of policies and processes by employees
Whistleblowing
Persons who have requested and have been currently accepted under the U.S. Deferred Action of Childhood Arrivals (DACA) policy are eligible for what?
Work authorization The DACA program provides eligibility for work authorization but stops short of providing lawful status. It is renewed every two years.
What document legally authorizes a person to take employment in another country?
Work permit A work permit is the official document giving a foreigner permission to take a job in a country.
Which of the following is true about employment practices liability insurance (EPLI)?
it usually covers legal costs regardless of the outcome of the case EPLI usually covers legal costs, no matter what the outcome of the case is. It typically does not cover punitive damages or civil or criminal fines. It usually does not cover compensation, consistent with relevant state laws. It is designed to cover cases arising at any point in the employment life cycle, from recruitment to termination.