2023-2024 SHRM Practice Final Exam
An organization conducts a pay survey and finds that some of its key employees are underpaid. They want to raise the pay for these employees but are concerned about adding to their salary burden. Which of the following is their BEST option? A. Incentive pay B. Step-rate adjustments linked to performance C. Market-based increases D. Cost-of-living adjustments
A - Total Rewards By definition, incentive pay is paying for performance beyond normal expectations. Employees receive the incentive pay only if specific goals are met. As long as incentive pay and base pay are not commingled, employees should perceive it as a reward (and not an entitlement) and the employer will benefit from a greater return on investment for performance beyond normal expectations.
Which factor has the greatest impact on maintaining peak performance? A. Challenging assignments B. Training opportunities C. Cultural obstacles D. Risk management
A - Learning and Development Research has shown that high-potential employees perform at their peak in new assignments within two years, and performance declines if they are not given new and more-challenging assignments.
Based on the upstream/downstream metaphor for resolving the standardization/localization dilemma, which of the following activities is more likely to be driven by the global corporation? A. Goal setting B. Appraisal methods C. Mentoring development programs D. Compensation and benefits
A - Managing a Global Workforce Goal setting will likely be completed by the organization. This will help to ensure consistency among the locations and sites within the global enterprise.
A firm exports its products to foreign countries, where it also opens production facilities, but its products, processes and strategy are developed in the home country. Which term best describes this company? A. International B. Multi-domestic C. Global D. Transnational
A - Managing a Global Workforce International firms export their products or services to foreign counties. While they may open production facilities or service centers, the product/service, processes, and strategy and developed in the home country.
What would be the BEST way for a new global HR vice president to understand the perspective of the communities in which the organization operates? A. Require local HR managers to develop contacts and programs with local groups and report results and observations. B. Include questions about community interests in annual employee surveys. C. Interview repatriated assignees about their experiences. D. Follow local media reports.
A - Managing a Global Workforce The best way to understand a perspective is through two-way communication and shared experiences, such as volunteer or community involvement activities.
What features characterize globalization? A. Global markets, economies, and technologies are increasingly interconnected. B. Technology has become globalization's single shaping force. C. Developed economies play an increasingly dominant role in globalization. D. Global interconnections reached a peak in the 1980s and 1990 and have since decreased.
A - Managing a Global Workforce The integration of markets, nation-states, and technologies is enabling individuals, corporations, and nation-states to reach around the world father, faster, deeper, and cheaper than ever before.
A western European company decides to partner with an organization in central Europe in pursuit of cost savings. The company chose this partner over a Chinese prospect because of reduced geographical, cultural, and linguistic distances. Which outsourcing arrangement does this describe? A. Near-shoring B. Best-sourcing C. Offshoring D. On-shoring
A - Managing a Global Workforce 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.
A mid-sized software organization is preparing to acquire two smaller software firms. The organizations that are being acquired will work both individually and collaboratively on new product lines with multiple dual roles. All three organizations are currently competitors with strong opinions about their competitions' competencies. Which type of organizational effectiveness intervention should be used to manage the change to dual reporting roles post• acquisition? A. Organizational structure/design intervention strategy B. Team or unit intervention C. Technological intervention D. Cultural alignment intervention
A - Organizational Effectiveness and Development An organizational structure or design intervention identifies and implements features such as reporting relationships and collaborative processes. Team-building activities may be used later, but a structure and relationships must be defined first. Cultural reconciliation and alignment with strategy are also important but do not address the specific problem mentioned in the questions.
What will increase the potential of reaching successful outcomes in global negotiation? A. Knowledge of cultural norms and behaviors B. Consideration of prevailing interest rates C. Understanding of the political climate D. Focus on interests and positions of influence
A - Relationship Management Competency Effective negotiators prepare and plan well-beyond the basics (e.g. location, timing, and attendance). Learning about the people, culture characteristics, issues, options common ground, differences, settlement ranges, and best approaches are all important.
What should a human resource professional do when preparing global assignees for their international assignments? A. Discuss country-specific risks. B. Train expatriates to avoid potential personal security issues and how to deal with issues if they do occur. C. Encourage expatriates to keep up with current events, particularly those that relate to political and social unrest, so that they become immediately aware of increased risk to their personal security. D. Remind expatriates to register with the appropriate embassy in the host country. Deemphasize personal security issues to minimize anxiety about the assignment.
A - Risk Management Even if the like-hood of an incident is very small, an expatriate who is fully education about potential risks and avoidance strategies will be more confident about accepting an assignment and more enthusiastic about the experience that lies ahead.
What will be the outcome of requiring all employees to be trained in business continuity and disaster recovery plans? A. Increased confidence among organization stakeholders B. Increased risk of poor public relations C. Decreased risk of occurrence of risk events D. Decreased size of risk management budgets
A - Risk Management Preparation for crises and business interruptions demonstrates quality management practices and would booster stakeholder confidence and public image. It would not affect the likelihood of occurrence, nor would it decrease risk management budgets.
The HR function wants to spend more time attracting and retaining talented employees. To do this, HR wants to outsource the payroll function. What justification should HR present to the CEO in support of an outsourcing recommendation? A. Payroll is a specialized task that is not central to the organization's strategic plans. B. The outsourcing firm's compensation can be set up on a shared risk/shared reward basis. C. Payroll outsourcing will save the firm money and require minimal communication with the vendor. D. Effective implementation of payroll outsourcing will not require staff approval or involvement.
A - Structure of the HR Function Outsourcing tasks that are not strategic in nature is an excellent way for an HR function to deploy its limited resources in a more strategic manner. Payroll, although important, is not a strategic activity but is more transactional. However, outsources activities do require extensive communication and involvement with the vendor. Nor will it necessarily save the organization money. It may help them make better use of their resources. A shared risk/reward structure is not appropriate for this type of outsourcing.
What would be the most effective step to avoid unwanted turnover in the future? A. Develop and administer an employee satisfaction survey that solicits candid feedback about employee perceptions. B. Schedule meetings with senior leaders to discuss the impact turnover has had on their business and create a strategy to prevent future turnover. C. Implement team-building activities to foster a collaborative work environment. D. Conduct interviews with senior leaders about why they think turnover at the organization is so high.
A - Talent Acquisition A is the best option because soliciting feedback is proactive and will allow for developmental opportunities. This represents use of the Communication competency. B is the second best option because it demonstrates an understanding of organizational metrics and their correlation to business success - the Business Acumen competency. C and D are unacceptable because they do not aid to expose the root cause of the turnover.
What is the advantage of nonqualified deferred compensation plans? A. They provide incentives for key executives to stay with the organization. B. They are not subject to BRISA and are protected from creditors. C. They allow all company employees to contribute more than the limits prescribed by qualified plans. D. They provide more-favorable tax advantages to employers than qualified plans.
A - Total Rewards Nonqualified deferred compensation plans allow organizations to provide additional benefits to a select group of key executives, which motivates them to stay with the organization.
What is the best way to handle the confusion regarding changes to the compensation model? A. Create a presentation that can be used by HR managers across the organization to communicate changes in compensation and bonuses. B. Encourage senior leadership to make a public effort to promote the new compensation model. C. Meet with managers at all regional offices to develop a strategy to announce the new compensation model. D. Send an e-mail to the staff including frequently asked questions about the new compensation model.
A - Total Rewards; Communication Competency A is the best option because it provides proactive communication on critical information to stakeholders. D is second best option because it provides clear and concise information to employees to clarify ambiguity. Both show the use of the Communication competency. B and C are unacceptable because they do not efficiently deliver information.
What financial document lists the revenues, expenses, and profits of an organization for a designation period of time? A. Balance sheet B. Income statement C. Financial statement D. Accounting entry
B - Business Acumen The income statement shows revenue, expenses and profits for the organization. The balance sheet shows its assets, liabilities, and shareholders' equity.
What policy encourages employees to speak to management first regarding suggestions, concerns, or complaints? A. Formal steps B. Open door C. Equal opportunity D. Free speech
B - Employee & Labor Relations Best-practice organizations encourage open-door/person to person meetings. If the meetings involve complaints or grievances, the issues are carefully documented. For these meetings to be effective, there has to be top management commitment.
A vice president and the HR director observe an employee focus group facilitated by HR staff. Both take notes, but their perceptions of employees' priorities and the strength of employee feelings on certain topics differ enough that both are reluctant to act on the group responses. What would be the BEST solution that the HR director could propose? A. Rerun the focus group with an outside facilitator and a different group of employees. B. Ask focus group participants to complete an anonymous survey that calls for numerical responses to specific questions. C. Assemble another focus group, keeping conditions the same, and see if the disagreement persists. D. Set aside areas of disagreement and focus on areas where the VP and the director heard the same messages.
B - Employee Engagement The best strategy would be to clarify participants' attitudes in a way that can be analyzed objectively. The response in the focus group can be used to develop an effective survey to gather this focused data. Rerunning the focus group, even with a different group or outside facilitator, may present the same issues. Agreeing to ignore areas of disagreement may mean agreeing to ignore critical areas of employee dissatisfaction.
What type of strike occurs without the approval of union leadership? A. Jurisdictional strikes B. Wildcat strikes C. Sympathystrikes D. Economicstrikes
B - Employer & Labor Relations Wildcat strikes are work stoppages that are neither sanctioned for stimulated by the union, although union officials may be aware of them. These strikes may also take the form of excessive absences, especially when there are no-strike clauses in contracts. Jurisdictional strikes are the result of disagreements between unions; they occur when one union's members walk out to force an employer to assign work to them instead of to another union. Sympathy strikes occur when one union expresses its support for another union's strike even though it has not dispute with the employer. Economic strikes are strikes that occur when collective bargaining fails to reach an agreement.
What type of law is based on written codes such as laws, rules, or regulations? A. Extraterritorial law B. Civil law C. Common law D. Sharia
B - Global Mindset Competency Civil law is applied in a deductive fashion to each legal case, starting with the abstract rule that is stated in the nation's civil law code and approved by legislative bodies.
An organization is considering restructuring its sales function to align its salespeople against key vertical markets. What is the first step in the change management process? A. Communicate the change to customers B. Complete an environmental scan C. Schedule a meeting with salespeople D. Communicate the change to the organization
B - HR Strategic Planning Before making such a change, the organization should complete an environmental scan to help the organization to determine if such a change is necessary and what benefits it could expect to receive from the restructuring.
What positive outcome will result from coaching high-potential employees? A. Employees will change jobs less frequently. B. Employees will contribute more effectively to the organization. Employees will be less engaged
B - Learning and Development Coaching high-potential employees allows them to contribute more frequently and more effectively to the organization. It also reduces turnover and creates employees with skills the organization needs now and in the future.
What type of learner acquires knowledge most effectively though a hands-on approach? A. Synthesis learner B. Kinesthetic learner C. Visual learner D. Auditory learner
B - Learning and Development Kinesthetic learns, also known as tactile learners, learn best through a hands-on approach. They prefer activity to explore the physical world around them. They may find it hard to sit still for long periods and may become distracted by their need for activity and exploration.
What would be the best way for HR to bring in more qualified applicants? A. Post job openings on Internet job sites and examine the effect on the applicant pool. B. Talk to senior leaders to figure out which types of jobs are most difficult to fill. C. Investigate how other organizations are identifying quality applicants. D. Interview hiring managers to determine the specific gaps in knowledge and skill that need to be addressed.
A - Talent Acquisition & Consultation Competency A is the best option because it generates a specific organizational intervention for recruiting practices that raises the organization's potential for long-term success. D is the next-best option because it considers the business needs. Both choices demonstrate the Consultation competency. B is not acceptable because HR should be talking to the hiring managers rather than the senior leader. C is not acceptable because the application of other companies' processes may not be effective for this company.
Which of the following activities would be most useful in an organizational intervention to reshape culture? A. Analyzing workforce demographic data B. Observing job performance C. Identifying recognized heroes D. Benchmarking competitors
C - Organizational Effectiveness and Development The first step in cultural transformation is to understand the current culture, which can be done by observing meaningful stories, rituals, and people as well as language and patterns of communication and decision making.
Which of the following actions is MOST likely to reduce job burnout? A. Offering stress-reduction classes B. Raising wages C. Providing employees with more sick days D. Giving employees control over their work
D - Employee Engagement Burnout occurs when work is no longer meaningful to a person. Giving employees more say about how the work is done reduces burnout and makes employees more committed and engaged in their work.
During a non-work group lunch, an HR person overhears an HR colleague discussing a recent new hire's previous job experiences. The information is not sensitive, nor was the intention malicious. What should the HR person do? A. Ignore the occurrence since it was harmless. B. Issue a written warning to protect the organization from potential liability under the Privacy Act. C. Warn the employee in writing that this information has been divulged. D. Remind the colleague later that it is not ethical to divulge confidential information.
D - Ethics Competency The colleague should be reminded that it is an HR professional's ethical duty to maintain the confidentiality of information gained in this manner. The action probably does not merit immediate discipline and in itself does not pose a risk; although the colleague's habitual sharing of confidential information could pose a risk. Warning the employee may cause unnecessary alarm since the information is not sensitive.
What is an example of implicit culture? A. Language B. Food C. Communication styles D. Values
D - Global Mindset Competency Implicit culture includes such intangible factors as beliefs, attitudes, and values. Dress, language, and food are examples of explicit culture
An organization recently revised its strategic business plan to enter a new vertical market. What is the MOST important thing the training department can do to support the initiative? A. Recruit salespeople with experience in the new vertical market. B. Identify the cost of training associated with the new business plan. C. Monitor the effects of the change on the workforce. D. Determine how training can link to the business plan.
D - Learning and Development The most important tasks is to link the training to the organization's business plan. For example, the training department might need to develop a program that compares its products to those of the competition or that focuses on ways to build the new vertical market.
Which of the following reporting/analytics features of an HRIS provide high-level, real• time metrics that are configurable to user preferences and can be linked to essential organizational metrics? A. Dashboards B. Ad hoc reports C. Standard reports D. e-HR reports
A - Technology Management A dashboard provides leaders with high-level, real-time metrics that are configurable to user preferences. If allows the leader to link data essential organizational metrics in order to make correlations between HR outcomes and the organization's strategic goals.
How can compensation and benefits technology improve a multinational enterprise's regulatory compliance? A. Automated record keeping and specialized reporting B. Global settings for dates, numbers and time zones C. System self-service administrative capabilities Accurate attendanceinformation
A - Technology Management Automated record keeping and specialized reporting helps to ensure organized centralized data and thorough record keeping and also helps avoid fines, penalties, and threats of lawsuits.
Which of the following best describes how technology improves employee communications about compensation and benefits programs? A. It increases access and the ability for personalized communications. B. It increases the productivity of young employee populations. C. It eliminates the need for printed information and face-to-face meetings. D. It produces a strong business case to secure funding for a customized benefits website.
A - Technology Management Organizations have many options for transmitting benefits information to employee online. Messages can be easily tailored to individuals. Employees get the information they need when they need it.
Which situation illustrates task conflict in team interactions? A. A younger worker is frustrated with an older worker's political opinions. B. A team member is offended by another worker's chronic lack of punctuality C. In a previous job, one member supervised the other. Now the two cannot cooperate. D. Team members argue continually about the best measurement of project success.
D - Relationship Management Competency A task conflict is usually about how work is done. The other examples here illustrate interpersonal conflicts based on various causes
A multinational organization allows its labor relationship to be managed entirely by the local subsidiary. This relationship is referred to as A. standardized B. laissez faire C. centralize D. hands-off
D - Employee & Labor Relations A hands-off approach is a locally responsible strategy. The industrial relationship is entirely locally managed.
What does an effective pre- and post-test training assessment measure? A. Changes in knowledge before and after training B. Overall satisfaction of employees C. Effect of training on organizational goals D. Time needed to improve performance
A - Learning and Development Pre- and post-test measurements establish a base line of knowledge before the beginning of training. Once training is completed, a second measurement is obtained, and scores are compared for possible improvement.
What is the ESSENTIAL concept behind the stakeholder theory? A. An organization affects and is affected by complex interests. B. True value must be determined by the increase in a firm's net worth. C. Organizations must see employees as partners rather than foes. D. All stakeholders must receive value for a firm to be considered socially responsible.
A - Business Acumen The stakeholder concept proposes that any organization operates within a complex environment, in which if affects and is affected by a variety of forces or stakeholders, who all share in the value of the organization and its activities.
What is the primary advantage of a balanced scorecard approach to measuring organizational performance? A. It allows organizations to assess intangibles. B. It takes less time and effort to gather critical data. C. It does not require a financial perspective. D. It requires the involvement of the entire organization.
A - Business Acumen Competency A balanced scorecard approach focuses on finance, customers, internal processes, and learning and growth. Therefore, it goes beyond a traditional financial approach to managing the organization. It takes into consideration such intangibles as whether a business process has been improved or employees have learned new skills. It can be used in a single department or throughout the organization.
What document is a formal statement describing a company's principles and the business practices that support those principles? A. Code of conduct B. Mission statement C. Strategic plan D. Employee handbook
A - Corporate Social Responsibility A corporate code of conduct is a formal statement that describes a firm's principles and the best practices that support those principles.
Do heterogeneous teams generally outperform homogeneous teams? A. Yes, but only if they are well managed. B. No, they are too difficult to manage and coordinate. C. No, there are too many different perspectives. D. Yes, they get off to a faster start and maintain an advantage.
A - Diversity, Equity & Inclusion Competency There are differences of opinion and approach in heterogeneous teams. If the teams are well managed, these differences become value-added strengths. If the teams are not well managed, they can become difficult to coordinate and may not fulfill their charter.
A scientist is hired to perform research at a pharmaceutical company. Which of the following is the MOST critical to include in the employment contract? A. Protections for trade secrets and confidential information B. Benefits provided by the company and date of eligibility C. Severance provisions for involuntary resignation D. Noncompete requirements
A - Employee & Labor Relations The most important information to include in the employment contract involves the protection of the organization's intellectual capital. The employee will have access to confidential information and research that would be of value to competitive firms. The organization must safeguard this information. Non-compete requirements might also be considered, but the safeguarding of valuable organizational information is most critical.
Management has a history of poor communication with employees. They act with little input and offer little rationale for decisions. A senior manager wants to conduct an employee attitude survey, believing it will help improve morale. What would be the most important thing you would advise? A. Don't do it unless management commits to responding to results. B. Ask for employee feedback; this will demonstrate interest in employee opinions. C. Ask an outside consultant to create a survey that will have more credibility than one created internally. D. Focus on safer workplace issues, such as facility operations and amenities.
A - Employee Engagement A survey may do more harm than good unless it is backed by genuine management interest in hearing about and reacting to employee attitudes. In an organization with a history of poor communication, deflecting employee opinions into "safe" topics will probably not affect morale significantly, if at all. The issue is not whether the survey is created internally or externally but if management will hear the feedback.
Which of the following statements BEST defines due process in discipline for a dischargeable offense? A. Due process is designed to ensure that disciplined employees are treated fairly and afforded opportunity to defend themselves. B. Due process is a feature of a progressive discipline system that incorporates peer review. C. Due process ensures that discipline cases for dischargeable offenses are reviewed by an attorney before action is taken. D. Due process is designed to communicate and protect an employee's rights in a unionized workplace.
A - Employer & Labor Relations Due process is a principle that ensures that employees are informed of expectations and the consequences of failure to meet those expectations, are treated fairly and factually, and are allowed an opportunity to defend themselves and appeal the decision. Due process does not explicitly require peer review, nor is it limited to the setting of a unionized workplace. An attorney's review may be advisable but is not required to have fulfilled the obligation of providing an employee due process.
What constitutes bribery? A. Giving or receiving something of value to influence a transaction B. An employee having an economic or personal interest in a transaction C. Theft of trade secrets or intellectual property or copyright piracy D. Obtaining the services of an agent or agency for assistance in securing a commercial contract
A - Ethics Competency According to the U.K.'s Serious Fraud Office (SKO), the body tasked with enforcing the U.K. Bribery Act, bribery is giving or receiving something of value to influence a transaction.
What is the best way to handle the situation between the operations team and IT? A. Offer to work with the operations team leader and the IT support staff manager to develop organization-wide project management guidance. B. Offer to schedule meetings between the two groups to develop agreements on how to work better together. C. Implement team-building activities for all employees. D. Investigate whether time management issues are problematic throughout the company.
A - HR Strategic Planning and Consultation Competency A, which uses the Consultation competency, is the best answer because it address the conflict between the operations team and IT and involves the development of an intervention to prevent the occurrence of similar conflicts across the organization. B is the second-best answer because it addresses the conflict between teams- using the Relationship Management competency - but does not move beyond the present situation. C and D are unacceptable answers because they do not directly address the conflict between the operations team and IT.
Dissatisfaction among clerical staff is high, as measured by turnover and mistake rates. Exit interviews indicate boredom as a primary reason for leaving. What strategy would be MOST successful in addressing this problem? A. Expanding the tasks to be performed B. Increasing the complexity of the job C. Transferring an employee· to another department D. Increasing the number of people performing the job
A - Learning and Development Expanding the number of different tasks to be performed, or job enlargement, will help by providing more variety and challenge. For example, a secretary may be asked not just to distribute mail but to open it and then route it to the appropriate person. Increasing the complexity of the tasks would be adding pointless busy work. Increasing the number of people doing the job might provide diversion but would hurt productivity. Transferring would not deal with the essential problem, although job rotation might work. In job rotation, employees shift to different tasks according to a daily or weekly schedule.
What is the BEST approach for an HR professional in handling legal concerns and issues? A. Consult with the organization's legal counsel both proactively and reactively. B. Stay informed about new laws concerning HR issues. C. Use law school and professional association sources to formulate new organizational policies and procedures. D. Use impartial third parties (such as mediators and arbitrators) as often as possible to negotiate employee disagreements.
A - U.S. Employment Law & Regulations HR professionals should seek expert legal and regulatory advice for specific legal disciplines and the laws of specific countries, both proactively and reactively, to increase awareness and avoid possible litigation. HR professionals should consult with legal counsel on both a proactive and reactive basis when developing policies and procedures to help ensure that the entire organization and its managers are supervisors remain complaint. When concerns or issues arise, HR must work with legal counsel to mitigate the consequences.
What is the best way to address a high volume of annual staffing fluctuations and the need to onboard new employees quickly? A. Seasonal workers B. Temp-to-hire programs C. Flextime scheduling D. Job sharing
A - Workforce Management Seasonal employment if for a set period of time tied to annually recurring periods of work for the organization. Seasonal workers may be hired as necessary and as budget allows.
Over five years, an employee has been promoted from Scientist I to Scientist III and then laterally moved to the operations department as Engineer III, a position more routine than previous jobs. The employee performed well in previous positions but is clearly performing poorly in the current one. What action should the employee's manager consider? A. Relocation B. Transfer C. Suspension D. Demotion
B - Learning and Development Transfers move employees to the area in which they will be of the most benefit to the organization. They allow employees with expertise to move within the company to improve operations or increase their satisfaction with work. In this case, the employee may be bored with the routine tasks of the new position, so the manner should consider transferring the employee to a position that matches his or her talents and benefits the company.
An organizational effectiveness and development (OED) initiative focuses on several departments that expanding or facing future challenges. What type of OED intervention is this? A. Individual B. Team C. Organizational D. Local
B - Organizational Effectiveness and Development A team intervention focuses on specific workplace units- in this case, aligning the departments' processes and skills with the organization's strategic plans. Organizational interventions focus on the entire organization-for example, an organization-wide restructuring.
Senior management has determined that it must speed up the production of its most popular product. Doing so will involve changing some of the company's production processes. Why should HR conduct employee focus groups before a project plan is finalized? A. To present management's case that there is a need for dramatic change B. To encourage employees to ask questions and express their reactions C. To influence those opposed to the tentative plan through peer pressure D. To present the plan orally before management communicates it in writing
B - Organizational Effectiveness and Development Most proposed changes are met with three different types of reactions. Some employee will resent and resist change, some will remain neutral, and others may welcome the change. Focus groups can not only help to anticipate employee reactions but can also provide the opportunity for employees to suggest changes before a plan is finalized. This can minimize resistance and provide for a better plan, since employees had the chance to express their opinions.
Which of the following types of organizational interventions focuses on job design and system change? A. Interpersonal B. Organizational C. Cultural D. Task
B - Organizational Effectiveness and Development Organizational interventions focus on job design, work-flow analysis, technology implementation, and system change.
What is the appropriate role for an HR manager in an investigatory interview for a dischargeable offense? A. Prosecutor presenting evidence and challenging the employee B. Risk manager for the organization C. Champion of employee's perspective and position D. Supporter for manager/supervisor of involved department
B - Risk Management In this situation, the role of HR is to manage the legal and physical safety risks to the organization. No one should take a prosecutorial or adversarial role; the organization should approach the situation and the evidence objectively and calmly. Pursuant to the Supreme Court decision in Staub v Proctor, HR managers must be aware of the need to ensure due process to employees who may be discharged and to review termination cases carefully.
Management decides that training supervisors to identify and prevent bullying is not necessary, and they do not fund a program budget. What does this illustrate? A. Precedence of global standardization in the organization B. The organization's risk tolerance C. A risk avoidance management strategy D. Poor governance
B - Risk Management Management has decided that it is willing to accept the risk that bullying will occur and possible organizational costs. This is an example of an organization's risk tolerance, the amount of unmanaged risk that management is willing to accept.
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 - Structure of the HR Function Activity based budgeting recognizes the interrelationships among various activities required to create value in an organization. It is based on how much it costs to perform different enterprise activities. Funding may be allocated based on the strategic significance of the activities.
A manager leaves an organization to follow a transferred spouse. Which recruiting practice would be readily accessible to current employees and help the employer pinpoint and identify qualified internal candidates for the open job? A. Job bidding B. Job posting C. Temporary agencies D. Interns
B - Talent Acquisition Job posting should provide a brief description of the job, including significant job duties and minimum qualifications, education, and experience. Efficient and effective job posting allows employees to easily express interest in position announcements and rewards the employer with the ability to pinpoint and identify qualified internal candidates.
What question does the employment value proposition (EVP) answer? A. What are the negative aspects of working for this company? B. Why would a talented person want to work for this organization? C. How does this company's pay scale compare to its competitor's pay scale? D. To what extent are people actively engaged in their work?
B - Talent Acquisition The EVP answers the question of why a talented person would want to work for the organization. It must be aligned with the organization's strategic plan, mission, vision, and values.
What would be the best way for HR to address the senior leaders' concerns about turnover? A. Tell senior management that HR will ask the hiring managers why so many positions are open in order to determine the cause of the turnover. B. Tell senior management that HR will do an analysis of the current turnover rate across fiscal years to determine if the turnover rate has changed drastically. C. Tell senior management that HR will meet with hiring managers about projecting hiring needs more effectively D. Tell senior management that HR will benchmark the company's experiences against those of similar companies to determine if its situation represents an industry-wide trend or is an isolated occurrence.
B - Talent Acquisition & Analytical Aptitude Competency B is the best option because turnover analysis would be specific to the organization and could lead to actionable response within the organization. D is the next-best option because analyzing an industry- specific turnover rate (rather than organization specific) delivers explanatory information but is less immediately actionable than B. Both of these options represent use of the Analytical Aptitude competency. A and C are not acceptable answers because they do not draw on any specific metric for senior leaders to observe.
Under the WARN Act, what type of notice must an employer provide in a mass layoff? A. 30 days' notice if 500 full- and part-time employees at one site will be laid off B. 60 days' notice if 33% of full-time employees at one site will be laid off C. 60 days' notice if 500 full- and part-time employees will be laid off D. 90 days' notice if a layoff is considered permanent
B - U.S. Employment Law & Regulations WARN defines a mass layoff as a reduction in force, which is not a plant closing, during any 30-day period that results in an employment loss at a single employment site for either 50 or more full-time employees, if they compose 33% of the active workforce at the work site, or 500 or more full-time employees.
What is the best way to address the team leader's performance issues? A. Tell the team leader about the feedback that has been received. B. Praise this individual for the other strengths revealed in the performance review and explain the main area for development, people management. C. Tell the team leader about the feedback HR has received and state that if the reported treatment of the team continues, the team leader will be disciplined accordingly and may be discharged. D. Hold informal meetings with employees to solicit ideas for how communication can be improved.
B - Workforce Management; Relationship Management Competency B is the best answer because it uses positive reinforcement to modify the team lead's behavior but provides specific and actionable areas for performance improvement. A is the next best option because it provides guidance and feedback to the team lead but does not provide specific feedback regarding how behavior can be modified. Both options demonstrate the use of the Relationship Management competency. C and D are unacceptable answers because they do not call up the principles of effective feedback and performance management.
What company is using a corporate strategy of differentiation? A. A company sells in volume and offers discounts to its best customers B. The finished product is sold at a lower price than that of the competition C. A company develops a product that is uniquely easy to use and charges a premium price D. A company orders large quantities of parts to get the greatest discount
C - Business Acumen Differentiation focuses on setting a product or service apart by giving it unique characteristics that customer's value and for which they will pay a premium. The other options deal with the ways to create a cost advantage.
An organization attempts to create employee participation teams that balance employee membership, in part, by age. What dimension of diversity is being addressed? A. Personality B. Organization C. Internal D. External
C - Diversity, Equity & Inclusion Competency Internal dimensions of diversity include aspects over which we have little control, such as sex or age
A nongovernmental organization (NGO) has recently reviewed a five-year community health program. The HR team has been tasked with analyzing trends and making recommendations about future expansion. Which of the following represents an analysis point where intercultural intelligence is considered? A. The logistics for delivery and storage of medical supplies and the import laws for vaccines B. A synopsis of medical licensing requirements for the potential expansion areas C. How family and community leadership dynamics influence access to health services and education D. The average travel distance required by expectant mothers to reach a clinical facility
C - Global Mindset Competency One competency of effective global organizations is cultural intelligence. Cultural intelligence is the capacity to recognize, interpret, and behaviorally adapt to cultural contexts. When making an effort to develop and enhance cultural intelligence, organizations may tend to focus on the cognitive aspects when it is advisable to use a comprehensive approach that places equal focus on cognitive, motivational, and behavioral components
Which is the difference between a strategic alliance and a joint venture? A. Strategic alliances create a new economic entity; joint ventures create a new individual entity. B. A strategic alliance is an informal agreement; a joint venture is a contractual agreement. C. A strategic alliance does not involve equity; a joint venture both partners contribute equity. D. A strategic alliance takes longer to create; joint ventures generally happen quickly.
C - HR Strategic Planning A strategic alliance is a formal agreement between two or more companies to collaborate and contribute resources but not equity. Strategic alliances create synergy based on the partners' strengths and technical capabilities. A joint venture is an agreement between two or more parties to create a new economic entity. Both partners contribute equity and share in revenues, expenses, and control.
Corporate leadership has requested that HR develop an employee engagement strategy for a newly acquired division. Which phase is strategic planning will HR be using to gather information to create this strategy? A. Evaluation B. Development C. Formulation D. Implementation
C - HR Strategic Planning The first phase in the strategic planning process is strategy formulation, which is followed by strategy development. The other choices are the third and fourth phases in strategic planning.
What is the best method to address IT's fears about outsourcing? A. Tell IT that HR will ask for a meeting with the CEO to discuss his plans for outsourcing. B. Tell IT that HR will work with the IT staff on comparing the productivity of outsourcing versus not. C. Determine whether outsourcing is one of the long-term strategic objectives of the organization. D. Tell IT that HR will provide information to the CEO on how outsourcing will affect the morale of IT.
C - HR Strategic Planning; Leadership and Navigation Competency C is the best answer because it addresses IT's concerns by aligning the CEO's version with organization-level goals. This approach uses the Leadership and Navigation competency. A is the second-best answer because it allows HR to objectively investigate the situation but does not connect the CEO's decision directly to organizational strategy. This approach uses Relationship Management. B and D are unacceptable answers because HR should not advocate for IT.
Which leadership theory maintains that performance depends on the interaction between situation favorableness and leadership style? A. Situational B. Behavioral C. Contingency D. Trait
C - Leadership and Navigation Competency The contingency theory suggests that group performance depends on the interaction between leadership style and situation favorableness, which is determined by leader-member relations, task structure, and position power
What is the difference between career planning and career management? A. Career planning focuses on the organization's needs; career management focuses on the employee's needs. B. Career planning focuses on developing a career path; career management focuses on individual skill assessment. C. Career planning responsibility lies with the individual; career management responsibility lies with the organization. D. There is no difference between career planning and career management.
C - Learning & Development In career planning, employees assess their skills and abilities and develop a career plan. Career management responsibility lies with the organization as it prepares, implements, and monitors an employee's career path, with a primary focus on the needs of the organization.
What characterizes a learning organization? A. It takes responsibility for the learning of its employees. B. It advocates internal rather than external networking. C. It manages change and adapts to its environment. D. It encourages each department to function independently.
C - Learning and Development Learning organizations encourage constant networking both internally and externally. Change is embraced and managed, and learning experiences alter the organization's behavior. In such as organization, employees are responsible for their own learning.
A primary benefit of localization is that it A. results in greater standardization of business processes. B. ensures that the same products are sold worldwide. C. creates strong customer ties and responsiveness. D. provides senior managers with a consistent perspective.
C - Managing a Global Workforce Localization enables an organization to place greater emphasis on local customers, products, partners, and labor sources. It also enables an organization to meet specific legal and cultural requirements and become a part of the local networks.
What are totalization agreements designed to accomplish? A. Eliminate the need for overseas allowances and differentials. B. Increase the take-home pay of international assignees. C. Eliminate dual international assignee social security taxes to the home and host countries. D. Ensure that host- and home-country employees are paid equal salaries.
C - Managing a Global Workforce Totalization agreements eliminate the requirements that an international assignee and the employer participate in two separate social security programs. Social security coverage is usually maintained in the country where an international assignee has the greatest attachment.
An organization has been growing, adding offices and allowing broad decision-making powers to local managers. According to Greiner, what type of organizational change will soon be needed? A. Determination of what employees need to succeed in their current jobs B. New emphasis on delegation skills among leaders C. Standardization of organizational policies D. Empowerment of individual employee initiative and creativity
C - Organizational Effectiveness and Development According to Greiner's model of organizational growth, organizations delegate authority as they expand but at a certain point feel the need to exert more control. One way to do this is through standardization of policies.
An HR manager has been told by senior management that no new programs can be added this year. However, the department just received its third complaint related to a supervisor's lack of awareness about diversity. How can the manager best justify including a diversity training program in the business plan for the coming year? A. Postpone this objective until the next business planning cycle. B. Don't list the program in the HR plan and fund it through other plan areas. C. Compare the cost of the program with possible avoided costs and present this information to management. D. Make a management decision to include the program for compliance reasons.
C - Structure of HR Function HR business plans must comply with organizational guidelines; managers can't make unilateral decisions. The best response here should be to argue to management that the program's cost will be offset by reduced staff time, legal costs, and potential judgements. If this is a genuine risk, postponing its management is not a professional decision. Not listing the diversity training objective will mean that HR cannot be held accountable for this program's success or failure; it may also mean that efforts to address issues in this area are not being documented.
HR management decides to create a shared services center for career development counseling. Several months later, management notes high turnover in HR offices throughout the organization. What is the most likely reason for this outcome? A. Natural elimination of redundant positions B. Strategic workforce management C. Poor management of the extended effects of an organizational change D. Weak organizational communication
C - Structure of HR Function Since the employees' departures from the organization were not intended and since they occurred in multiple offices, they may illustrate a "ripple effect: of the change to a shared service concept that was not anticipated or managed. The creation of the center may have removed a source of job satisfaction and/or valuable career opportunities for HR staff.
An HR manager is planning to outsource the creation of the employee newsletter, which has long been created by several HR staff with input from departments. What possible negative outcome should the manager consider? A. Increased cost of outsourcing B. Loss of control over strategic activity C. Staff motivation and attitude D. Loss of control over project schedule
C - Structure of HR Function The staff may not necessarily be eager to give up the project. They may be personally invested in it and their job satisfaction harmed by losing the project. The project may also be a valuable ay for HR to interact with other departments. If the newsletter is outsourced, control over the project cost and scheduling can be managed. The communication of a strategic message is not itself a strategic activity, so the outsourcing does not transfer a core strategic activity outside the organization.
Chain of command refers to the A. extent to which policies and procedures govern the rules of the organization B. number of individuals who report to a supervisor C. line of authority within an organization D. balance between standardization and localization
C - Structure of the HR Function Chain of command refers to a line authority within an organization. Authority relates to the scope of responsibilities that define the area in which a manager is empowered to make decisions. If is growing less distinct in many organizations today.
Which of the following determines the relative worth of each job in an organization? A. Job specification B. Job study C. Job evaluation D. Job analysis
C - Total Rewards Job evaluation determines the relative worth of each job by establishing a hierarchy of jobs within an organization. It is intertwined with a concern for internal pay equity.
What is the best way for the HR director to respond to other organizations poaching their employees? A. Execute on the company's vision to be an employer of choice by creating a document summarizing all of the benefits of working in the organization. B. Solicit solutions from managers who are experiencing the greatest losses due to poaching. C. Conduct a compensation analysis to benchmark against the market, implementing appropriate responses to further the company's mission to be an employer of choice (e.g., retention bonuses, adjustment to compensation policy). Holdameetingwithtop-levelexecutivestodiscusstheneedtoincreasesalariestoremain competitive
C - Total Rewards; Business Acumen Competency C is the best option because, through Business Acumen, it demonstrates an understanding of the industry and competitive environment within which the organization operates. B is the second best option because HR uses the Consultation competency to gather information and investigate the issue, which can result in strategy development. A and D are unacceptable because they do not address the root cause of the issue.
An HR director is asked to contribute to the risk management section of a report to shareholders, focusing on the function's effectiveness in mitigating risks from employment- related legal actions. Which of the following will be MOST helpful to the HR professional in preparing the report? A. Employee survey data B. Performance appraisal reports C. HR audit results D. Exit interview data
C - U.S. Employment Law & Regulations An HR audit can analyze the function's effectiveness and efficiency but can also access whether appropriate steps are being taken to ensure compliance. This would include information such as payroll compliance, proper documentation, and current and compliant employee handbooks. The other choices offer useful data for measuring HR performance and identifying workplace issues, but the compliance audit report can provide specific assessments of controls that assure legal compliance.
Which of the following terms describes an employer's liability when an employee reports an incident of sexual harassment by a supervisor? A. Merit discrimination B. Glass ceiling C. Vicarious liability D. Prima facie
C - U.S. Employment Law & Regulations This legal responsibility of the employer is called vicarious liability. Vicarious liability is a legal doctrine under which a party can be held liable for the wrongful actions of another party. Because of this doctrine, employers are legally responsible for the discriminatory acts of their employees. In cases of sexual harassment, this particular standard of vicarious liability is based on two principles: 1) employers have the responsibility to promptly and irrevocable end harassment (sexual or otherwise) through appropriate intervention, including, if necessary, discipline, and 2) employees should be encouraged to take advantage of preventive and corrective opportunities.
What is the PRIMARY reason for developing workforce diversity programs? A. Avoid lawsuits. B. Improve basic skills. C. Develop language capabilities. D. Enhance productivity.
D - Diversity, Equity & Inclusion Competency The primary reason for developing diversity programs is to make it easier for employees to communicate effectively and work together more productively.
What is the best way to handle the request by the HR staff member to view the team leader's feedback report? A. Set up a meeting to discuss the team leader's feedback report with the staff member. B. Ask for the team leader's permission to share the feedback report and, upon obtaining permission, share the report. C. Decline to share the feedback report with the HR staff member. D. Suggest that the staff member speak directly with the team leader about the rumors.
C - Workforce Management; Ethical Practice Competency C is the best answer because it maintains the confidentiality of the feedback report. D is the second best answer because it addresses the HR staff person's concern without breaching confidentiality. Both demonstrate the Ethical Practice competence. A and B are unacceptable answers, because they do not ensure the confidentiality and privacy of employee information and company data and include inconsistent enforcement of company policies.
Which business function is likely to be closer to the end of the value chain? A. Research and development B. Operations C. Marketing and sales D. Fulfillment
D - Business Acumen Competency Fulfillment is the last function completed before the product reaches the customer.
A retail chain's business model requires the handling of cash and credit/debit cards by a large number of cashiers who do not typically stay for long with the employer. What action reflects the appropriate priority for this risk? A. Build possible losses into profit margins. B. Monitor losses and credit issues quarterly. C. Raise cashier salaries. D. Implement immediate technical controls.
D - Risk Management Especially because of the potential for loss and misuse of customer information and the resulting impact on the company's brand and probably their finances, this risk has a high priority. It should be dealt with immediately and thoroughly-perhaps through new technology that separates the cashier from access to digital information or processes that quickly detect and investigate discrepancies in cash accounts.
What two organizational functions usually report to the chief financial officer? A. HR and IT B. Finance and cash management C. Finance and risk assessment D. Accounting and finance
D - Structure of the HR Function The chief financial officer of the global enterprise is usually responsible for both accounting and finance functions.
What document legally authorizes a person to take employment in another country? A. Nonimmigrant visa B. Residence permit C. Immigrant visa D. Work permit
D - Talent Acquisition A work permit is the official document giving a foreigner permission to take a job in a country.
After conducting a reference background check, HR discovers that a leading candidate misrepresented dates of previous employment both on the resume and the job application. What is the most probable outcome of learning this information? A. Check criminal records for felonies or misdemeanors B. Conduct a credit history check with a consumer reporting agency C. Ask for references about the employee's professionalism D. Do not extent an offer of employment
D - Talent Acquisition Every employer has a legal duty to exercise due diligence in hiring. In certain circumstances, an employer may give the candidate the opportunity to explain results of a reference background check that might have an adverse effect on an employment decision. However, most job applications include a statement that signing the job application attests to truthfulness of the information contained in the document. Some employers even advise candidates at the onset of the application process about the potential negative consequences of providing any false or intentionally misleading information.
Which of the following best supports the business case for employee retention? A. There are fewer compliance issues among the Family and Medical Leave Act, the Americans with Disabilities Act, and state workers' compensation laws. B. Education and training expenditures are reduced. C. Incentive-based rewards are more effective at all organizational levels. D. Turnover and talent shortages affect organizational performance.
D - Talent Acquisition Systematic management of employee retention can increase performance, productivity, employee morale, and quality of work as well as reduce turnover and employee-related problems.
An employee posts a message on a social networking site about a new product under development at the company. Can the employee be fired? A. No, the employee has freedom of speech. B. No, the employee's statements are true. C. Yes, if the employee used the company computer. D. Yes, if the employee is sharing confidential information.
D - Technology Management An employee can be fired for sharing confidential company information. The company is best protected by comprehensive policies regarding electronic media.
Which of the following activities is MOST likely to protect sensitive corporate data? A. Allowing data transfer to mobile devices B. Backing up data off site C. Requiring polygraph testing D. Encrypting employee computers and network communications
D - Technology Management Sensitive data can be protected by encrypting employee laptops, desktops, and network communications to ensure secure storage and sharing of confidential information.
An organization is faced with the challenge of offering robust benefits to retain top talent while staying within budget or cost constraints. Why a benefit is needs assessment a valuable undertaking? A. Assessment results help align the benefits strategy with the organizational brand. B. Data collected helps the organization address employee financial or health problems impacting productivity. C. A benefit needs assessment would determine employee willingness to pay an increasing portion of the plan coverage. D. A benefits package can have a positive impact on attracting, motivating, and retaining talent.
D - Total Rewards Assessment data should allow the organization to refine benefit offerings so the package is affordable yet valued by employees.
Which of the following is a compensable factor? A. Benefits B. Seniority C. Exempt status D. Skills
D - Total Rewards Compensable factors reflect how work is done and are supported by documentation such as job descriptions. The compensable factors flow from the work itself and not the employee holding the job. Therefore, seniority is not a compensable factor in determining the relative worth of a job.
Which of the following is the best move to socialize the eastern office into the new compensation program? A. Propose that the average compensation rate in the organization be the base line for the eastern office's new compensation rate. B. Suggest that upper management meet with the eastern office about the need to align their compensation with the centralized model. C. Research the maximum proportion of total salary that bonuses should account for by industry. D. Conduct a market analysis of compensation rates in the eastern region for comparison to the eastern office rate.
D - Total Rewards; Business Acumen Competency D, using the Business Acumen competency is the best option because it demonstrates an understanding of the competitive environment and the impact that can have on the organization. B, using the Leadership and Navigation competency, is the next-best option because it aims to foster collaboration, but it remains a suggestion. A and C are unacceptable options because they are not mindful of cost-of- living differences between regions.
What action violates the Immigration Reform and Control Act? A. A foreign-looking American citizen is asked to complete Form 1-9 after being hired. B. An applicant from another country is asked if he has a legal right to be employed in the U.S. C. An affirmative action plan is not established. D. An Asian national with a passport without a right-to-work authorization is hired for a systems analyst position.
D - U.S. Employment Law & Regulations To be eligible to work in the U.S., applicants must have documents that verify their identities and confirm their right to work in the U.S. This applicant is able to verify only identity.
Senior management has determined that a reduction in force (RIF) is the only way it can address financial difficulties. Which action would best minimize the impact of the downsizing on the organization and employee morale? A. Constructively discharge the least-productive employees. B. Treat separation volunteers as terminations. C. Imply a chance that terminated employees might be called back. D. Grant additional benefits to employees who volunteer to be separated.
D - Workforce Management Both the organization and employees can benefit during the RIF when the employer offers additional benefits (often to a certain types of employees) who volunteer to be terminated. For the organization, a voluntary RIF creates opportunities for restructuring and assists in meeting its fiscal responsibilities. For employees, a voluntary RIF may facilitate an employee's transition to retirement and an early "at will" separation can provide access to government financial assistance for the pursuit of other career opportunities.
When is knowledge management MOST productive? A. When it develops new procedures and creates organizational policies B. When it focuses on acquiring knowledge from outside sources and solving problems C. When the organization implements change and commits to employee development D. When it focuses on sharing organizational learning and reducing knowledge loss
D - Workforce Management Knowledge management programs typically focus on two key elements: expertise sharing and knowledge retention/education of knowledge loss due to employee attrition
What approach is most characteristic of succession planning? A. Local requirements are given the highest priority. B. It is initiated as soon as it is clear a senior executive is leaving. C. It focuses on issues likely to occur in the short term of approximately one to 12 months. D. It focuses on long-term global issues.
D - Workforce Management Succession planning takes a long-range, strategic view and considers the entire job in an organization and its business conditions.
