SHRM CP initial assessment

SCENARIO: A highly matrixed, decentralized international company has six business units in various locations. Although there's a corporate human resources team with all HR functions represented, each business unit also has its own HR department that functions independently. All operate in a polycentric fashion; only the vice presidents of HR, who report to the senior vice president of HR, interact on a periodic basis. A downturn in the economy has impacted the company and has led corporate HR to explore the possibility of using a new centralized service model to combine one or more of the HR functions into corporate. Other reasons for this include a reduction in practitioners, cost savings, improved consistency, and elevated expertise. A human resources manager who has been with one business unit for the last seven years has been asked to join a team pulled together by corporate HR to design and implement an appropriate servicing model. He is the only one from outside of the corporate function participating on the team. For the past month, the team has been looking at the pros and cons of different HR structures, and they are discussing a shared services approach. 1. How should the team start the process of determining the appropriate HR servicing model? 2. How should the team best use the HR manager's experience with the organization? 3. What should the team do to gain buy-in for its recommendations? 4. Changes to the HR structure or delivery model can create frustration and anxiety among employees. What is the best approach the team should take to ensure a smooth adoption by employees?

1. By determining a structure that will align with the company's strategic plan and objectives *as HR's function is to serve the strategy of the overall organization and the company's strategic plan should guide all decisions, including the HR structure and delivery model. 2. They should use the HR manager to provide balanced input into the structure and delivery approach. *this allows the team and the HR manager to understand both the corporate and location perspectives. It also allows each to learn from the other, with the outcome being a more well-rounded structure and delivery model. 3. The team should develop a business case outlining its recommendations to present to the leadership team. *A business case is the best tool for formulating and communicating recommendations to decision makers, as it provides a well-rounded, business-focused guide to share the recommendations and their advantages and disadvantages. 4.Develop an impactful communication plan outlining the team's purpose, the need for change, and a high-level overview of the upcoming changes. *as communication is at the core of all successful change initiatives. The plan will outline the best times to communicate and what the message will be.

SCENARIO: A new operations manager is assigned to a cash management operations function in a global wholesale bank. He recently acquired his MBA, and he has decided to use an assembly-line design and apply a total quality management (TQM) approach to increase efficiency at an offshore location. Many of the employees at the offshore location hold advanced degrees from their home countries and have professional-level experience, but because their degrees are not recognized by the bank, they have been assigned to clerical-level positions. The new manager has implemented his assembly-line approach, and the employees are miserable. They complain to the bank's president, who asks the HR manager to work with the operations manager to implement the change more effectively. In reviewing the changes that have been implemented, HR can see that the new approach has resulted in impressive business results, increasing the unit's throughput rate and the bottom line. However, the assembly-line element of the new work process means that some employees are only stapling documents together or putting them into a file folder. The work is monotonous and offers little autonomy to the employees. HR also notes that one element of the change is a move to a 24/7 operations schedule. Less desirable shifts offer higher pay, but the operation is still experiencing attendance problems. In addition, injuries that can be attributed to fatigue are increasing. It appears that the 24/7 schedule is causing personal and family issues for the employees. 1. How should HR respond to the employee complaints? 2. After responding to the complaints, how should HR continue to support the transition to the new approach? 3. How can HR help in maintaining the benefits of the new shift while mitigating the negative impacts? 4. How could HR involve the employees to improve the design of their new roles and increase their satisfaction with their work?

1. Communicate directly to the employees, acknowledging their concerns and describing a plan to address them. *Responding directly, honestly, and specifically to the employees is an important step in helping them move forward with the change. 2. Use a data dashboard to show the progress of the change to leadership and communicate regular updates to leadership and employees. *The difficulties of making change can often be overcome by celebrating the positive effects of the change. In this case, the team can see directly the impact of their efforts 3. Develop a focused training program to help employees adjust to the change and address issues they may experience in shifting their sleeping and working schedules. *This approach recognizes and respects the employees and the issues they have raised by helping them make more informed decisions and build proactive adaptive strategies. 4. Facilitate a focus group with employees to identify alternatives that maintain the bottom-line value of the new initiative while solving complaints of boredom. *It allows the employees to provide input and apply their experience and expertise to create a more sustainable, long-term solution.

SCENARIO: For the past several years, a company has experienced frequent turnover in the CFO position due to poor performance. After the first CFO was terminated, the VP of HR and the CEO reviewed the job description. A selection committee was formed to perform interviews with candidates, and a single interview was held with each candidate using knowledge-based questions. After three months a candidate was hired. One year later the candidate was released due to poor performance. The same recruiting process was used with a limited selection of candidates. A third CFO was hired three months later. The company is now preparing to terminate this CFO due to poor job performance and not meeting the expectations of the company. 1. What should the VP of HR do first to assist the organization in hiring the next CFO? 2. The VP of HR determines that a significant issue in selecting executive-level candidates lies in the interview process. Which actions should the VP of HR recommend the CEO take to enhance this process? 3. Which metrics should the VP of HR use to best support the changes in the hiring process for the CFO? 4. Which should the VP of HR include in a recommendation to best help the CEO understand why a new executive onboarding process is critical? 5. The VP of HR has determined that a lack of interview training for the committee is also contributing to the poor quality of the CFO hires. What process should the VP implement to address this issue?

1. Conduct a job analysis prior to conducting an executive search. *A thorough job analysis using research provides an objective assessment of the KSAOs required for the job. 2. Recommend a more dynamic and interactive process to include behavioral interviews, value assessments, and personality tests. *By using other means of assessing candidates—not just knowledge-based interviews—the interview committee will learn more about the candidates, if they are a good cultural fit for the organization, and how they will handle themselves in certain situations. 3. Cost of hire and cost of turnover *This metric best indicates that a bad hire can have a negative impact on the bottom line. 4. Onboarding establishes a thorough understanding of the organization. *Employees at any level must understand the mission and vision of the organization to better perform their role. 5. Conduct training for the committee on interviewing best practices. *Training will ensure that everyone on the committee understands and agrees with the process.

SCENARIO: An HR consultant receives a phone call from the CFO of a mid-sized family-owned manufacturing company. She states that the company's turnover is nearing 100% in the operations department. Employees are staying an average of 60 to 90 days before leaving. Exit interviews indicate that turnover is due to lack of training. The CFO doesn't understand this data, because all new employees participate in a one-day orientation and an onboarding program. The consultant further learns that the manager of the operations department has a reputation for being aggressive and direct. The manager, who directly reports to the CEO, has been with the company for ten years and is a good friend of the owners' family. The CFO admits that the manager can be difficult to deal with but nobody says anything because of the manager's strong relationship with the family. She says that while morale is low in the department, the company hasn't conducted an employee survey in at least two years. The CFO asks the consultant for help in fixing the turnover problem. They discuss various options, including training, coaching, and an employee engagement survey. A minimal budget has been provided to determine which tasks are necessary and to complete them. The consultant agrees that turnover needs to be addressed quickly. 1. Which are the initial actions they should take to determine the root cause? 2. The consultant is surprised at how brief the onboarding process is and how it appears to focus more on orientation activities. Which action should the consultant recommend to create a long-term onboarding program? 3. The CFO has requested that the consultant administer an employee survey. Which action should the consultant take to determine if a survey would, in fact, be the best step to take at this point? 4. The CEO supports the consultant's recommendation to further develop the manager through executive coaching. Which step should the consultant take to gain the manager's support for coaching?

1. Further analyze exit interview information for details about training deficiencies. *Additional analysis may identify relevant information that was missed. The consultant may follow up directly with the participants, who may be more open to talking to an outside consultant than to someone in house. 2. Evaluate and enhance the company's orientation and onboarding program to cover the first 90 days. *The best way to affect the 60- to 90-day time frame for employees leaving is through an enhanced orientation and formal onboarding program. Although the orientation might last only one day, an onboarding program should extend into the first few months (or longer) of employment and be structured to set the employees up for success and further integrate them into the organizational culture 3. Request assurance from the entire executive team that action will be taken based on the results of the survey. *The HR consultant needs to establish expectations that a survey may uncover issues the executive team doesn't know about and it is harmful to ignore them and that the team must act on the results. This approach will establish credibility for the HR consultant and ensure that the survey can propel the company forward. The consultant can also talk with the executive team to determine what information would be important, from their perspective, to collect as part of the survey. 4. Develop talking points with the CEO to use to discuss the benefits of coaching with the manager. *The CEO is the manager's direct supervisor and has the authority to approve the expense of coaching and to make a determination if he sees the manager as having issues that need to be addressed. When presenting the solution to the CEO, the HR consultant should create alignment between the behavior and the actions of a senior executive and the organization's goals, strategies, and bottom-line success. Coaching is most successful for executives when it has leadership approval

SCENARIO: A company has been giving its employees automatic pay increases annually. Recently, however, production has decreased, resulting in less profit. The president tasks HR with implementing a new goal-oriented pay plan to incentivize employees to increase production. HR designs a pay-for-performance plan and trains supervisors. HR also sends an e-mail to all employees explaining the change, referring employees with questions to their supervisor. As part of the new program, goal development is handled by supervisors. However, some supervisors feel that the change in pay philosophy is unnecessary and tell employees that the new pay plan will not work. Twelve months pass, and, upon review of performance evaluations, HR finds that some appraisals lack goals and do not objectively measure employees' work performance. The results are recommended pay increases that are subjective and unsubstantiated by metrics. Rumors that pay increases will be provided to employees who are favorites begin to impact morale, and work production continues to decline. Leadership is disappointed with the results of using a pay-for-performance system. HR is instructed to temporarily revert to the original pay plan and complete a further analysis of its continued viability. Employees are satisfied; however, the reputation of the company and HR has suffered by this rollout, and production has not increased and profits are still low. 1. Which step should HR have taken to address supervisors who have openly communicated that the new pay plan would not work? 2. HR still believes that the cause of decreased production is the absence of incentive pay. Which recommendation should the HR manager include in a business case for an incentive pay program that would convince leaders while rebuilding HR's credibility? 3. The president and the HR manager agree on a 90-day period to address the problems related to workforce morale and the new pay plan. Which is the best first step for the HR manager to identify the root cause of the morale issues in order to develop a plan to address them? 4. Which approach should HR take first to encourage better alignment between the organization and the employees in order for them to accept and sustain the new pay system? 5. It is discovered that some supervisors are unable to effectively answer employee questions about the new pay plan. Which primary learning activity should the HR manager offer to prepare supervisors for their communication with employees? 6. Which first step should the HR manager take to change the current perceptions of HR with the company's managers?

1. Hold meetings with all supervisors before rolling out the new plan to address their concerns. *it addresses the supervisors' concerns directly. In order for the plan to work effectively, supervisors must understand the value of the new program. 2. Analyze data related to the organization's mission, strategy, goals, size, industry, and location and on talent availability. *because it considers the key factors critical to pay strategy development in the company's market and helps the company decide whether to lead, match, or lag its competitors. Incentive pay should align the employees' achievements with the organization's targeted objectives. 3. Talk with the employees to understand their concerns and how supervisors supported the change efforts. *Direct communication with employees will get to the root of the morale issue. 4. Identify organizational and departmental goals, specific employee performance and behaviors, and meaningful metrics. *it considers all aspects of the pay system and ties individual performance to organizational goals. 5. Conduct training that includes role playing and different scenarios that could arise in the employee meetings. *it allows participants to practice appropriate behavior and responses for various situations in a safe environment. 6. Communicate the organization's mission, vision, and strategy and HR's role in support of the organization's and employees' success. *the organization has been resistant to change and needs new ideas and systems thinking. This expands the employees' and supervisors' perception of goal setting and the role of HR as well as other departments' impact on employees' and the organization's success.

SCENARIO: A construction company with 75 field employees determines that the best way to improve communication with employees and efficiency in tracking employees' working hours is to provide each field employee with a smartphone. Each employee has a company e-mail account that can be accessed through the smartphone, enabling the employee to receive e-mail in a timely fashion. Additionally, the employee uses the smartphone to track hours worked at each job location. A benefit to the employee is not having to complete and turn in time sheets at the end of the week, since time tracking is in real time. These phones should be used for business only and turned into the supervisor at the end of the workday. The company has made a significant financial investment in the smartphones. Some employees have personal smartphones and are very familiar with the phones. However, many employees have not used this type of technology and are not computer-literate. Even prior to the implementation of the phones, this small group is demonstrating negative and resistant behavior. The human resource director has been assigned the responsibility of distributing the smartphones to the employees and providing the necessary training and resources for the employees to be proficient in using the phones within 30 days. 1. Many of the employees who are resisting the change to smartphones have been with the company for a long time. What steps should HR take to overcome the obstacles to learning? 2. Given the varying technology proficiency of the employees, which is the most effective training method the human resource director should use to facilitate the change? 3. An employee refuses to use the smartphone and continues to submit paper time sheets. Which action should the human resource director take to bring about the desired change in the employee's behaviors? 4. The human resource director is receiving feedback from several employees that other employees are playing games, texting, and using social media on their phones during working hours. How should the human resource director respond to the feedback? 5. Thirty days have passed, and the smartphone adoption rate is only 45%. Which is the human resource directors' best point of entry in determining the source of the low adoption rate? 6. Which action should the human resource director take to create shared ownership and accountability with business leaders for the smartphone change's success?

1. Listen to and address the employees' concerns and demonstrate the phone's positive aspects; provide support throughout the implementation. *Adult learners not only need to know the benefits to them but also want to have their concerns heard and addressed. 2. Provide instructor-led, hands-on training sessions for employees based on their knowledge levels revealed during the needs assessment *The needs assessment will ensure that training sessions are developed based on the target audience, and the instructor will be able to immediately evaluate the level of understanding. 3. Contact the employee to understand why the employee is not using the phone; identify solutions to overcome the obstacles. *The obstacles need to be identified and addressed and solutions need to be identified and implemented. 4. Investigate the feedback to determine its validity; create a policy regarding smartphone use and meet with employees to review the policy. *The situation should be investigated to find out how employees are using the phones. If the phones are being used personally during working hours, this needs to be addressed. Implementing a policy on use of the smartphones will communicate expectations and be important in consistently holding people accountable 5. Explore if a 30-day transition period was sufficient for the size and impact of the change. *People move through the stages of change at different rates. Rushing employees through the change process won't work for either the organization or the employees. The company could have minimized the emotional reactions to the change. The human resource director should analyze the resistance and determine how to get back on track to achieve success. 6. Involve business leaders to get feedback on and finalize the strategy for distributing the smartphones and training employees. *Change initiatives are better positioned for success with leaders and top-level management engagement. This change is a business initiative. Involving managers, including engaging them early in the process to begin communicating the change and its overall benefits, will create engaged stakeholders and help set the initiative up for success.

SCENARIO: A company is experiencing a high number of work absences across all of its national operations for a variety of reasons, some related to the company as a whole and some specific to company demographics. The head of HR has analyzed payroll expense data and has noted that the higher costs and increasing frequency of using fill-in and temporary staff are having a significant bottom-line impact. After learning about the potential advantages of centralized sourcing, the head of HR asks her recruiting team to look at the options available for a nationally contracted vendor to support the company's needs and make a recommendation. The recruiting team has been primarily experienced in staffing headquarters positions. Individually they are experienced primarily with local recruiting resources. 1. What is the most effective course of action the recruiting team could take to execute their assignments? 2. It is decided that RFPs will be sent to selected vendors to assist in the recruitment strategy. Once the RFPs are returned, what is critical next step that the HR VP should take to determine which vendor should be selected?

1. Meet with their business partners in each region and office location to discuss this proposed approach. *The recruiting team can use relationships with the businesses they support to gather the preliminary information needed to build the business case and the communication plan. 2. Evaluate each RFP against each location's predetermined success factors. *Evaluating all of the returned RFPs against the key elements for a successful contract relationship would allow for an objective selection process that can be supported and explained.

SCENARIO: The performance of the head of the IT department has been eroding in the past few years. The employee is no longer capable of meeting the minimum expectations of this role as result of not keeping current in his professional development. Management is struggling to hold the employee accountable while also keeping employee morale positive. There is also a concern that, if placed on a performance improvement plan or a documented coaching program, the employee would respond negatively and retaliate by wreaking havoc on the organization's IT infrastructure. The length of employment has allowed the employee to be protected from accountability in the past. Management has decided that the current situation is no longer tenable, but they also realize the precarious place they have put the organization in by failing to have sufficient safeguards in place to protect company assets. Management approaches the new HR generalist and asks what steps they can take to either create an environment where the IT manager can succeed or effectively manage the IT manager out of the organization. Prior to this discussion, the HR generalist was not aware of either the previous protections afforded to the employee or of the failure of management to hold the employee accountable. The HR generalist is concerned that management has tolerated this behavior for so long and wonders if there are other employees in the organization who have been similarly protected from being held accountable or being disciplined. The HR generalist realizes that two issues need to be addressed. 1. What should the HR generalist recommend to address the more pressing concern regarding the individual employee performance? 2. The HR generalist realizes that there is the potential for other employees to have been shielded from accountability. Which action should the HR generalist take to ensure that all employees are being treated equally? 3. The HR generalist wants to ensure that all employees are aware that they are to be held to the same standards and that employees know what the standards are. Which approach is the most effective way to do this? 4. After meeting with several of the managers of the organization and discussing employees, the HR generalist determines that managers are uncomfortable having accountability conversations with employees. Which recommendation should the HR generalist provide to rectify the issue? 5. The HR generalist wants to ensure that employees are held accountable but also that they are set up for success. How can the HR generalist help make certain this happens?

1. Partner with management to create a performance improvement plan that addresses current shortcomings, including a time line in which to resolve them. *Creating a performance improvement plan allows the employee to address and acknowledge the issues. It also allows for employee buy-in to the solutions and sets up a clearly defined time line for improvement. 2. Meet with managers of the most tenured employees first to ensure that shielding of tenured employees from accountability is not an ongoing practice. *The HR generalist needs to ensure that tenured employees are not being given a level of protection that newer employees may not be receiving. Additionally, this allows the HR generalist to review with current managers how to effectively hold employees accountable. This option also allows the HR generalist to reset expectations with all managers over time, ensuring that there is consistency. 3. Partner with management to hold small group meetings in which the most up-to-date employee handbook is reviewed and employees sign an acknowledgment of receipt. *Partnership with management allows for an effective review. The small group meetings ensure that all employees have an opportunity to engage and ask questions. Finally, having signed employee acknowledgments ensures that there is a system in place for confirming that all employees have attended a meeting. 4. Conduct a survey of managers to gauge their level of confidence; then create a time-sensitive training tool to aid in developing their confidence. *Conducting a survey internally allows for company-specific data to drive decision making. Additionally, creating an in-house tool allows for more control of the finished product, and having a time line for completion ensures compliance. 5. Partner with management to make certain that employees are aware of additional training resources available. *Partnering with management to ensure that they and their team members are aware of training resources helps to confirm that all members of the team are aligned toward the goal and the vision.

SCENARIO: The IT director of a research organization has created an innovative software application that enables researchers around the world to conduct research more efficiently. The application has been a great success; it has won several awards and has received recognition from industry leaders. Over time, the IT director has bragged about the success of the program, stating that no one else could have come up with this idea. Even though the organization's mission is to be a learning organization with a strong commitment to knowledge sharing, the IT director has refused to share knowledge of the application with anyone else in the organization for fear of losing power and control. The organization's leadership won't confront the IT director about this because there is no contingency plan if the IT director were to get upset and quit. While the IT team reports to the IT director, the IT director has no direct supervisor. Recently, the HR manager received a verbal complaint that the IT director openly yelled at the IT team during a meeting—intimidating staff and making them feel worthless. Upon examining the issue, the HR manager learns that the IT director constantly overworks employees and treats them in an intimidating manner. The HR manager discovers that the IT director has created a culture of being uncollaborative by explicitly telling the rest of the IT team not to share any of the department's secrets. Furthermore, the IT team has been told to lie about the status of certain projects by stating that work is being done when in fact it is not. 1. How should the HR manager report these findings to the organization's leadership? 2. Which solution should the HR manager suggest to reinforce the organization's commitment to being a learning organization? 3. Which strategy would help assess and correct the collaboration issues the IT department is facing? 4. Which key problems affecting the IT department should the HR manager present to the organization's leadership? 5. Based on the initial discoveries of the HR manager, which action(s) should be taken against the IT director? 6. Which approach should the HR manager recommend to the organization's leadership to address the IT director's behavior?

1. Request to hold an urgent, face-to-face meeting with leadership, and ask that the details of the meeting remain confidential. *Due to the sensitivity of the information, it is best for the HR manager to hold an urgent, face-to-face meeting. 2. Request that the leadership hold a company-wide meeting to reiterate the mission of being a learning organization, and build performance metrics and incentives around the mission. *it is always best for the leadership to demonstrate its commitment to the mission by verbally communicating it to employees and building an environment that encourages it. 3. Evaluate work relationships between employees and departments, clarify work expectations and reporting relationships, and assess the gap in operating expectations. *as this strategy will address the issues around collaboration, interpersonal relationships, and the work expectations of employees. 4. Behavioral and cultural problems, specifically related to communication, leader-employee relationships, workplace atmosphere, and collaboration *it accurately reflects both the behavioral and cultural challenges the IT department is facing. 5. Suspend the IT director with pay in order to conduct an investigation, and, based on the investigation, decide whether he should be terminated or put on a performance plan. *as it will allow time for the HR manager to conduct a detailed investigation of the matter without any interruption, distraction, or obstruction from the IT director. 6. Provide both verbal and written feedback to the IT director, hold consistent meetings, stress the importance of accountability, and ensure that the IT director's job description is aligned with the organization's mission. *as it has all the required components to correctly manage the performance of the IT director and is aligned with the organization's mission

SCENARIO: The HR director and the CEO of a mid-sized company each receive an identical letter in the mail. The letter is from an anonymous disgruntled employee, and it accuses a company executive of several negative actions, including bullying, misrepresenting funds, and openly criticizing other executives during conversations with lower-level employees. The letter states that the employee has chosen to remain anonymous because the employee mistrusts the HR department and fears retaliation. 1. Which step should the HR director take first to address the accusations in this letter? 2. Which action should the HR director take to most effectively address the employee's reason for reporting the issue anonymously? 3. Which action should the HR director take to best ensure that executives understand and comply with the company's expectations of leaders?

1. Review the executive's personnel file for information that suggests that a pattern of behavior exists. *The HR director will want to perform a cursory review of the executive's personnel file to determine if other behavioral or performance issues have occurred that he or she may not be aware of. This first step will help to determine if further action should be taken. If it is found that there may be an issue with the executive, the HR director and the CEO should then jointly decide on what the appropriate course of action should be (e.g., a more in-depth investigation of the allegations indicated in the anonymous letter). 2. Review the company's policies and procedures to protect employees who report issues at the next all-employee meeting. *The procedures for reporting workplace issues and the protections afforded to employees should be continuously shared and reinforced. This communication is just one aspect of creating a positive employee environment to build trust between employees and leaders in the organization. Additional activities should also be encouraged by the HR director to continue to build this trust. 3. Develop a yearly training series that emphasizes behavioral expectations for all employees, including executives. *Annual training is an effective, and sometimes mandated, way of sharing the roles and responsibilities that leaders have in encouraging reporting of issues and preventing workplace retaliation. This is often a first step in a broader approach to creating a culture of ethics and compliance in an organization.

SCENARIO: The recruiting department is overwhelmed with requests to hire more employees for a 24-hour company call center. Recently, several recruiters and a number of long-time, high-level performers resigned to work for competitors for better pay. The remaining workforce feels that the work is tedious, the pay is low, the space is noisy, and there are no opportunities for advancement. A high-volume contract recruiter from a local search firm has been brought in to assist in hiring for the call center vacancies. The contract recruiter sets up a private office and is given system access to all online search engines paid for by the company. The office doubles as an interview room, and the company is charged a finder's fee for each candidate that the call center manager interviews. The HR manager is alerted in casual conversation with the call center employees that the contract recruiter is the spouse of the call center manager and that several nonqualified candidates have been sent through the interview process at the company's expense. 1. What should the HR manager do with the information about the contract recruiter? 2. What can the HR manager do to ensure that only qualified candidates are being selected for the interview process? 3. What is the best solution the HR manager can suggest to address turnover? 4. How might the HR manager quickly address compensation to assist with retention? 5. How should the HR manager respond to the report about the contract recruiter's relationship with the call center manager?

1. Review the master services agreement with the recruiter's company and audit the candidates presented for interviews to determine any misconduct. *It is important to understand the terms and conditions of the recruiting firm's contract prior to taking any action. 2. Outline detailed job descriptions for each vacancy to include minimum qualifications and requirements and review each candidate's background prior to interview selection. *Understanding the job qualifications and requirements is important prior to candidate selection to ensure a fair and objective interview process. 3. Create a new career path within the organizational structure that will give the employees opportunities for promotion and develop them into future supervisors *Introducing supervisor roles would respond to the employee comments that there is no room for advancement and would motivate employees to grow into new tasks, which also addresses the feedback about the work being tedious. 4. Based on local regulations, award premium pay for evening, holiday, and long hours. *it is immediate. Premium pay for additional hours worked may be awarded depending on country or local laws and regulations. 5. Talk with the contract recruiter and share that the company is aware of the personal relationship that creates a conflict of interest. *The personal relationship between the contract recruiter and the call center manager is a conflict of interest and should be addressed immediately.

SCENARIO: The company president comes to the HR director and expresses considerable concern about customer complaints of poor service. Although the customer service manager has been with the company for five years, she is new to supervising and leading staff. The president has heard rumors that the department is in total chaos and asks the HR director to visit the manager and find out what is happening in the department. The HR director visits the customer service department and speaks with the manager. The manager confesses to being overwhelmed with the employee relations issues in the department and admits to being intimidated by the nepotism that exists within the company. Employees answer an average of two calls per hour, but the industry standard is six per hour. The manager welcomes any assistance the HR director can provide. The department is not fully staffed. There is a vacant position, and the job has been posted for two weeks. Other company employees do not want to apply because of the employee relations issues in the department. 1. Based on the HR director's discussion with the manager, what information should the HR director share with the company president? 2. How can the HR director help the manager handle the current issues? 3. How should the HR director respond regarding the low number of calls per employee? 4. The HR director is advised that a customer service representative has been seen consuming alcohol on company property. This was witnessed by three other employees. How should the HR director handle this situation? 5. An HR staff member who has been assigned to monitor social media for references to the company reports to the HR director that an employee has posted a story about poor customer service at the company on a popular social media site. The employee says that this story is typical of the company's attitude toward its customers and its employees. The HR staff member thinks the employee is publicizing proprietary information. The director is not sure about that. How should the HR director handle this situation?

1. Share the manager's concerns with the president and provide a solution as to how HR can assist the manager. *The president raised the question to HR and needs to be delivered an honest and transparent response. Since the customer service manager has requested help, the HR manager can go to the president prepared with one or two solutions as to how to address the issue. 2. Provide the manager with employee relations coaching. *It demonstrates that HR serves as the expert on people management issues and provides the manager with the appropriate skills while still allowing the manager to directly handle the issues in the customer service department. 3. Listen to calls, analyze the nature of the calls, and estimate the time needed to resolve the issue during each call. *The HR director needs to gather critical information to understand the root cause of the customer service problems 4. Conduct an investigation after notifying the supervisor and sending the employee home on paid administrative leave. *The HR director needs to investigate the allegation before making a determination regarding the employment of the individual. It is best to place the employee on paid administrative leave during the investigation to reduce the organization's liability. 5. See if the employee is willing to discuss the situation in private. *The discussion may uncover only an employee unhappy about some personal situation, but it could also provide helpful information about a problem that is affecting the company's image with customers and prospective employees. The director must be careful, however, to avoid encroaching on the employee's freedom of speech, especially if this is a unionized workplace.

SCEANRIO: A global consulting firm hires a director of business development from outside the organization, much to the disappointment of one of the managers in the department, who also applied for the position. This manager complains bitterly about the decision to go outside of the firm, and he continues to exhibit disruptive and angry behavior. He feels that he has been unfairly treated, since he believes that he has more experience than the newly hired director. Two months later, the new director of business development has made changes that most of her team are quite excited about. Unfortunately, this does not include the disappointed manager. He openly criticizes the director's ideas, even escalating this criticism to the CEO. He comes to HR to discuss his options in the company. The new director has also come separately to HR regarding the continued hostility from this manager and also about a new employee on the global sales team, who tends to stay to herself and does not interact with the rest of the team. The new sales employee has no problems with attaining her sales goals, but the director does not see her as a "team player" and asks the HR manager for assistance with how best to deal with both of these situations. 1. What response should the HR manager provide to the disappointed and angry manager? 2. What should the HR manager recommend the director of business development do to build the relationship with the disappointed manager? 3. What should HR recommend as the best approach for the director to take in regard to the sales employee keeping to herself?

1. Show empathy for his disappointment, confirm that the process was objective, and provide specific deficiencies from his interview for the job. *as the HR manager shows emotional intelligence in acknowledging that the manager is disappointed with the outcome. She also needs to address his belief that the process was not fair and ensure that the manager understands her role in ensuring consistency. Through feedback about his interview, the manager can gain valuable insight into how he presents himself. The HR manager should also share her recommendation with the interview team and, if needed, provide coaching and/or guidance on how to give unsuccessful candidates developmental feedback (if she has not already done so). 2.Meet with the manager to understand his concerns, explain that bypassing her authority is not acceptable, and encourage him to share his ideas for the benefit of the department. *as this allows the director to clearly set her expectations in a positive and productive way. If the behavior continues, then she could take additional disciplinary actions. 3. Spend time with the sales employee, interacting the same way she does with all the other team members. *as this allows the director to establish rapport and build a relationship with the new employee in a natural way.

SCENARIO: An HR manager is the liaison for the sales department at an organization with roughly 600 employees. Recently the organization had a slight downturn in revenue and profit. To save money, over the past year, the sales department's senior management has laid off several administrative assistants and assigned their work tasks, such as photocopying and processing sales orders, to the sales staff. Additionally, the department has modified its compensation system by reducing base pay but increasing sales commissions. The HR manager believes that the additional work duties and new compensation system have put substantial stress on employees. It's been observed that employees seem dissatisfied with their jobs and are leaving the organization or thinking of leaving. One recently departed employee told the HR manager that he had looked for a new job because the increased workload caused him to make fewer sales, thereby significantly reducing his salary. The HR manager brings their concerns to the vice president (VP) of sales. The manager tells the VP that he is worried about the effects of these changes on the department, such as high turnover and the loss of institutional knowledge. The VP disagrees with the manager; he believes that turnover is good for the department because poorly performing employees are leaving. The VP notes that one employee comes in late, leaves early, and takes a long lunch break every day. The VP believes that the recent changes to compensation save the company money by not employing administrative assistants and motivate sales employees to work harder by focusing on sales commissions. The VP tells the HR manager to ignore employees' complaints and focus on hiring new employees who are willing to take on the additional tasks and work harder. 1. Which approach is most effective for the HR manager to use to resolve his disagreement with the vice president of sales? 2. What is the best way for the HR manager to evaluate the effectiveness of the new compensation system to increase sales?

1. Suggest that HR conduct several focus groups and exit interviews to find out why employees are leaving the company and if they are dissatisfied with their jobs *First the HR manager needs to determine whether his suspicions (that employees are dissatisfied with the new work tasks and compensation system) are correct. 2. Review existing research and literature on best practices to see if similar changes in other organizations have been effective. *it uses research conducted in other organizations. Although the findings may or may not generalize to this company, the approach is very inexpensive and easy and takes advantage of rigorous research conducted by academics and experienced HR professionals.

SCENARIO: An HR manager receives a call from an employee who indicates that he feels harassed and needs to talk to someone immediately. The employee alleges that his supervisor treats him differently. He also accuses his supervisor of logging onto his computer and making program changes and sending inappropriate messages to others. When HR asks for proof, the employee indicates that all evidence has been deleted by the supervisor. The employee also shares his belief that other employees, including the marketing manager, are trying to discredit him. The employee further accuses the supervisor of making sexual advances toward him. HR's speaks with the supervisor, who reports that there have been problems with the employee for some time. There have been several warnings, and the employee's behavior is becoming more erratic. The supervisor wants to proceed with termination of the employee. She is concerned that if nothing happens she will see high-performing employees leave. The HR manager mentions the accusations of harassment. The supervisor angrily yells "This employee is crazy!" and storms out of the HR manager's office. The employee leaves work at the end of his shift, gets into a car accident, and sustains minor injuries that will cause several days of absence from work. As proof of temporary disability, he forwards the physician's notes. The notes, however, also refer to symptoms of mental illness. 1. What is the best response the HR manager should provide to the supervisor's request to terminate the employee? 2. What corrective action should the HR manager recommend be taken in reference to the patient information included by mistake in the physician's notes? 3. Three employees have now come forward indicating that if they are forced to work with the employee making the accusations, they will quit. What is the best first step the HR manager should take to prevent this from happening? 4. What approach should the HR manager take to address the supervisor's outburst during the initial conversation?

1. Tell the supervisor that allegations have been made by the employee and HR must wait for the outcome of the investigation. *as the manager is being transparent with the supervisor as to why termination would not be the best approach to take. It is HR's ethical and legal responsibility to investigate these charges before terminating the employee, even for documented performance issues. Termination at this point would also make the employer vulnerable to charges of retaliation. 2. Report to the physician that health information was inappropriately disclosed and request an amended report. *it not only removes the information from the possession of the company but also allows for the health-care provider to be aware of their mistake and to correct future deficiencies in safeguarding patient information. 3. Ask specific questions of the three employees to determine if investigating their concerns is warranted. *as the manager needs to understand whether there are issues to investigate or if the issues are indeed with the employee making the accusations. Without the additional information, the manager will not be able to effectively resolve any conflicts in the workplace. 4. Arrange to meet with the supervisor at a later time and in private to address her outburst. *s the manager needs to address the interaction with the supervisor in a private manner. Given the supervisor's behavior, the manager should most likely let the supervisor collect herself and then address the behavior in private, outlining the specific ways the supervisor should have behaved.

Which best demonstrates the development phase of the employee life cycle? 1. A manager and an employee are working together to develop objectives and goals for the employee to attain. 2. The employee gains access to information and tools required for the job and settles into the position. 3. The employer-employee relationship is initiated when the employee begins onboarding and orientation. 4. A high-potential employee is promoted to a leadership position and begins training her replacement.

A manager and an employee are working together to develop objectives and goals for the employee to attain. *With the development phase, HR and management typically work collaboratively with the employee to develop performance objectives and goals in conjunction with performance evaluation. The other choices are from the recruitment, integration, and transition phases of the life cycle.

What would be an example of noise in the communication model? 1. The listener disagrees with what is being said. 2. The speaker is deeply respected in the listener's culture. 3. The listener fills in shared background that the speaker does not mention. 4. A speaker uses technical abbreviations that the listener does not know.

A speaker uses technical abbreviations that the listener does not know. *Noise is any condition that can prevent a message from being correctly understood by a receiver. Technical jargon and other unfamiliar terms can be a barrier (noise) to the listener's understanding. Disagreement is not noise, nor are factors that actually enhance understanding, such as shared context or respect.

What two organizational functions most typically report to the chief financial officer? 1. Accounting and finance 2. HR and IT 3. Finance and risk assessment 4. Finance and human resources

Accounting and finance *The chief financial officer of an organization is usually responsible for both accounting and finance functions.

How should HR use the information contained in other organizations' annual corporate social responsibility (CSR) and sustainability reports when first devising their organization's sustainability strategy? 1. Borrow CSR tactics and practices that have succeeded for other organizations. 2. Gain competitive tactical advantage. 3. Adapt general principles and guidelines to the organization's strategic focus. 4. Ensure that the approach being devised doesn't too closely resemble those of key competitors.

Adapt general principles and guidelines to the organization's strategic focus *The best starting point for developing and implementing a CSR strategy is gaining a clear perspective of work already done internationally on defining CSR issues and responses. It is equally valuable to review the annual CSR or sustainability reports of other organizations. These show how others have customized general principles and reporting guidelines to focus on their own particular industry's areas of interest and their own strategic goals.

A knowledge-based organization is highly decentralized, with many small offices and many employees who are highly task-oriented working remotely. Which would be the best way to measure employee attitudes in this organization? 1. Administering a brief online survey 2. Designing a 30-item mail-in survey 3. Implementing mandatory focus groups 4. Encouraging an open-door policy

Administering a brief online survey *An online assessment that could be completed and returned quickly, conveniently, and from a distance would be best. In a knowledge-based organization, the employees are probably technologically proficient and would prefer a brief online survey. An open-door policy does not ensure a representative sample of attitudes. Focus groups will be impractical, given the organization's structure.

In a conversation outside of work, an accounts payable supervisor shares with an HR professional secondhand reports about another employee's marital problems. Which approach should the HR professional take? 1. Approach the employee in question independently and offer counseling. 2. Ask if the employee is having performance issues. 3. Advise the supervisor not to engage in gossip. 4. Refrain from participating in or correcting the behavior.

Advise the supervisor not to engage in gossip. *Ethical employers protect the rights of employees. This includes respecting employee privacy. The HR professional should model this respect for workplace privacy. Approaching the employee, even in good faith, violates privacy. If the supposed problems have created performance issues, the manager should have reported them, not the rumors.

What best describes an employee resource group? 1. Group that determines the best use of training funds for diversity and inclusion 2. Management task force to promote diversity and inclusion in the organization 3. Affinity group that can serve as a social and professional network for employees 4. Labor-management committee to promote diversity and inclusion in the organization

Affinity group that can serve as a social and professional network for employees *An employee resource group (ERG) is a voluntary group in the organization to allow employees who share a particular diversity dimension to provide support to one another. An ERG does not decide on training funds, and it is not a management task force or a labor-management committee.

An HR manager is concerned about work interruption during the upcoming flu season. How can the HR manager best deal with this risk? 1. Hire additional temporary workers now. 2. Arrange for on-site flu shot clinics. 3. Monitor reports on the CDC website. 4. Alert staffing agencies about possible needs

Arrange for on-site flu shot clinics. *Managing risk effectively entails taking steps to prevent the risk, lessen its impact, or transfer the burden of risk (e.g., through insurance). Hiring additional workers before absences occur may be an unnecessary expense. Simply staying abreast of the situation may mean that action will be taken too late. Lining up temporary help is a good idea, but if a flu outbreak affects many employers, who will all compete for temporary workers, this tactic may not help. The best risk management action may be to try to avoid the risk by making it easy for employees to receive flu shots.

What cultural layer is exemplified by the pasta dishes that are unique to Italy? 1. Basic assumptions 2. Implicit culture 3. Artifacts and products 4. Norms and values

Artifacts and products *Culture has different layers. At its core are basic assumptions about the way the world works, referred to as implicit culture. The next layer is norms and values based on those assumptions (e.g., respect for elders). Artifacts and products are explicit culture, what we can perceive. This would include clothing, architecture, food, music, art, and so on. The pasta dishes that are unique to Italy fit into the artifacts and products cultural layer.

What is the outcome of the arbitration process? 1. Binding decision 2. Contract amendment 3. Mediated agreement 4. Non-binding decision

Binding decision *Both parties willingly submit their differences to the arbitration process. The outcome is a decision that both sides have agreed to accept, not a recommendation.

Which is the proper role of a mediator in resolving an impasse in collective bargaining? 1. Ordering the parties back to the bargaining table 2. Preparing a recommendation for a labor court 3. Making a decision that is binding on both parties 4. Bringing the parties together to find common ground

Bringing the parties together to find common ground *Mediators seek to find common ground and persuade the parties that it is in their best interests to reach an agreement without resorting to a strike.

How does using a job evaluation to determine the relative worth of each job assist in an organization being successful? 1. By recording the responsibilities, physical and emotional skills and accountabilities, and ability requirements of a specific job 2. By serving as the basis for developing equitable salary structures, effective employee selection, and ongoing development 3. By determining the various components of a position and the context and circumstances under which the work is done 4. By identifying the minimal acceptable qualifications that a candidate must possess to successfully perform certain work tasks

By serving as the basis for developing equitable salary structures, effective employee selection, and ongoing development *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.

Which task is vital when assessing strategic objectives? 1. Communicating the intent and purpose of the strategic initiatives 2. Ensuring that there is control of drift in each business unit's strategy 3. Obtaining stakeholder feedback to determine strategy success 4. Comparing the outcome of strategic initiatives to outlined metrics

Comparing the outcome of strategic initiatives to outlined metrics *During the evaluation phase of strategic planning, strategic objectives are assessed to determine if the results are in line with the metrics that were defined at the start of strategic planning. Control of drift is one of the critical success factors that organizations successful at strategy have mastered. Soliciting stakeholder feedback is a necessary task when communicating strategy. Depending upon the initiative, it may not be a requirement for evaluating strategy. During the implementation stage, translating intent to specific plans and communicating the value or purpose of initiatives are critical. Assessing or evaluating strategic objectives is the next phase of the process, in which outcomes are compared to defined metrics.

Which features characterize the global integration strategy? 1. Development of structures and systems 2. Financial and environmental control of subsidiaries 3. Adaptation of policies and procedures for local markets 4. Consistency of approach and standardization of processes

Consistency of approach and standardization of processes *Global integration (GI) emphasizes consistency of approach, standardization of processes, and a common corporate culture across global operations. It allows organizations to take advantage of standard processes and economies of scale to achieve greater efficiency.

Which process clarifies performance expectations and demonstrates organizational support of individual performance improvement? 1. Workplace retaliation 2. Complaint policies 3. Conflict resolution 4. Constructive discipline

Constructive discipline *Constructive discipline gives the employee an opportunity to understand expectations and change behavior. This demonstrates organizational support for performance improvement. Conflict resolution, complaint policies, and workplace retaliation policies can support engagement but are not necessarily geared toward performance improvement.

Which HR task is typically required by a multidomestic corporation? 1. Coordinating HR activities between headquarters and the international offices 2. Facilitating knowledge exchange throughout the organization 3. Administering payroll and benefits 4. Building a common corporate culture across all operations

Coordinating HR activities between headquarters and the international offices *A multidomestic corporation is similar to a portfolio of independent businesses. Headquarters is in the home country, but over time the divisions achieve more autonomy. At this stage, HR is involved in coordinating HR activities with the goal of consistency while remaining flexible with local law and culture.

Which best describes the influence that training has on an organization's strategic diversity and inclusion process? 1. Creating awareness and helping develop knowledge and skills 2. Changing behaviors and attitudes in the organization 3. Mandating compliance with governmental laws and regulations 4. Ensuring that everyone in the organization understands diverse cultures

Creating awareness and helping develop knowledge and skills *Training cannot directly change behaviors and attitudes in an organization, nor can it teach employees all about one another. What it can do is to create awareness and help develop knowledge and skills. That, in turn, can gradually change individual behaviors within the organization, thereby creating the necessary conditions for culture change.

Which HR metric provides an indication of the efficiency of the recruiting process? 1. Vacancy costs 2. Days to fill 3. Turnover costs 4. HR expense factor

Days to fill *Days to fill measures the number of days from job requisition approval to new hire start date. It assesses the efficiency and productivity of the recruiting function.

Which action would an organization take during the strategy formulation phase? 1. Creating an effective organizational structure 2. Preparing budgets for forecasted projects 3. Conducting feedback focus groups 4. Deciding on the organization's mission

Deciding on the organization's mission *While all of these actions play a role in strategic planning, they do not all take place during strategy formulation, which is the first phase of the strategic planning process. This phase of the process is dedicated to the development of a mission statement, vision, and values, which guide the rest of the strategic planning process and the activities to come. The remaining activities take place in the development, implementation, and evaluation phases.

The determination that 20 new employees are needed to achieve the organizational strategy for growth in global markets is included in which phase of the workforce analysis process? 1. Supply analysis 2. Solution analysis 3. Demand analysis 4. Gap analysis

Demand analysis *Demand analysis forecasts an organization's future workforce composition and considers the number of employees and the skills required to meet organizational goals.

An HR director has been assigned to develop a program to support the opening of new retail stores. Which step in the ADDIE process identifies the behavioral results of the program? 1. Design 2. Development 3. Evaluation 4. Assessment

Design *The design phase identifies the behaviors participants will practice at the end of the program. The goals state the purpose and intent of the program, while the objectives are the behavioral results expected from the program.

What is the first step in preparing for an HR audit? 1. Determine the scope and type of audit. 2. Secure top management support for the audit. 3. Determine the audit scope and budget. 4. Develop the audit questionnaire.

Determine the scope and type of audit. *The process of conducting an audit typically begins with determination of the scope and type of the audit.

What emotional challenge can HR help retained employees confront after a mass reduction in workforce? 1. Increased job ambiguity 2. Reduced self-esteem 3. Diminished job security 4. Decreased workload

Diminished job security *HR must help retained employees deal with increased workload, different work assignments, and the feelings of loss and fear. Job ambiguity is irrelevant in this context.

Which is an essential aspect of alternative dispute resolution (ADR)? 1. Review by peers 2. Does not preclude litigation 3. Use only in union environments 4. Requires external third party

Does not preclude litigation *ADR does not prevent disputes from winding up in court or in formal arbitration, but it can result in fewer cases going to trial. It is generally used in union-free organizations. While some ADR systems do include peer review, it is not a requirement. Similarly, some systems may bring in neutral third parties from outside the organization, but that is also not an ADR requirement.

Which type of career development mobility provides meaningful career paths for professional and technical workers whose preferences may be outside traditional management roles? 1. Promotions 2. Dual career ladders 3. Job enrichment 4. Job rotations and relocations

Dual career ladders *The question aligns with the most distinct characteristic of dual career ladders and lateral movement/growth.

Your organization needs to integrate functions and data for customer relationship management, manufacturing resource planning, finance, supply chain, and human resources. Which would be the best type of technology to implement? 1. Ad hoc reporting system 2. Human resource information system (HRIS) 3. Enterprise resource planning (ERP) system 4. Application service providers (ASPs)

Enterprise resource planning (ERP) system *An ERP system is an integrated information system that serves all departments in an organization. Such a system typically includes software for functions such as customer relationship management, manufacturing resource planning, finance, supply chain, and human resources.

Which best describes the relationship of the strategic planning process to the environmental scan? 1. The environmental scan is optional if the organization does strategic planning. 2. Environmental scanning is done as part of the strategic planning process. 3. The environmental scan is completed in lieu of strategic planning. 4. The environmental scan is performed by one group, and another group completes strategic planning.

Environmental scanning is done as part of the strategic planning process. *An organization typically conducts a SWOT analysis as part of its strategic planning process. In order to accurately assess the company's threats and opportunities, the company must have an understanding of factors outside of the organization. The environmental scan focuses on external factors and, when done in conjunction with strategic planning, provides additional information upon which the company can base its decisions.

An organization has experienced significant turnover among its creative writers. During exit interviews, the writers have expressed dissatisfaction with rigid starting times, a lack of recognition for their work, and poor communication between managers and employees. How should the organization incorporate the social well-being aspect in its action plan to address the issue? 1. Establish a work/life program that allows flexibility. 2. Adjust the organizational culture to support these challenges. 3. Gauge the level of stress of the writers. 4. Consider the overall health issues this has caused.

Establish a work/life program that allows flexibility. *The social aspect of employee well-being focuses on work relationships, work/life balance, equity, respect, and connectedness.

The creation of a global compensation and benefits strategy that ignores local differences in culture is most likely to occur in what approach to global management? 1. Geocentric 2. Polycentric 3. Regiocentric 4. Ethnocentric

Ethnocentric *In an ethnocentric approach, headquarters maintains tight control over international operations, subsidiaries have little autonomy, and key positions are held by headquarters personnel. A strong headquarters bias often blinds management to the subtleties of cross-cultural differences.

Which is the best approach that HR should recommend leaders undertake after the results of an annual employee engagement survey show a significant decline? 1. Analyze data using a different method from that used for previous surveys. 2. Choose one important issue and respond to it immediately. 3. Facilitate focus groups to gather more qualitative data. 4. Share the results with members of management only.

Facilitate focus groups to gather more qualitative data *Further data gathering is called for, either through interviews or through another survey that asks employees to rank issues. Changing the analysis method may misrepresent results and potentially make it difficult to compare yearly data to identify trends. Rushing into action may result in wasting scarce organizational resources on the wrong problems. To support a positive organizational culture, the results should be shared with all employees, as well as management, as soon and as honestly as possible.

Which is a potential advantage of using Internet recruiting? 1. Immediate response expected of the employer 2. Minimizing liability to governmental discrimination regulations 3. Fast and effective distribution of listings 4. Dispensation from any claim of negligent hiring

Fast and effective distribution of listings *Internet recruiting can definitely provide an effective means to entice job applicants and also allow for filtering mechanisms. But the same legal and ethical considerations that apply to the more traditional recruiting methods also apply to the Internet.

What do judgmental forecasting, trend and ratio analysis projections, and turnover analysis all assist an HR professional in predicting? 1. Marketplace conditions 2. Cost-benefit analyses 3. Future staffing needs 4. Learning and development costs

Future staffing needs *Accurate forecasts account for movement into and inside the organization (new hires, promotions, and transfers) and out of the organization (resignations, layoffs, retirements, and discharges). Forecast approaches include a variety of quantitative and qualitative tools such as trend and ratio analyses, turnover analysis, judgmental forecasts, and statistical forecasts.

How are perquisites generally characterized? 1. Payments for the achievement of a specific goal or objective 2. Tangible payments provided to a broad group of employees 3. Goods or services provided on an individualized basis 4. Remuneration approach that is used to attract and retain workers

Goods or services provided on an individualized basis *Perquisites are compensation provided on an individual basis in the form of goods or services. Included in this category are company automobiles, club memberships, and the like.

Which method is initially used to resolve disputes regarding interpretation of a clause in a current union contract? 1. Collective bargaining 2. Grievance procedures 3. Fact finding 4. Mediation

Grievance procedures *A collective bargaining agreement almost always includes a formal grievance procedure. This process provides an orderly way to resolve the inevitable differences of opinion in regard to the union contract.

What are the basic steps in crisis management planning and readiness? 1. Review policies, evacuate, relocate, and communicate. 2. Identify risks, develop plan, test and drill, evaluate. 3. Secure redundant and contingent services, train employees. 3. Remove risks, train, and monitor for change.

Identify risks, develop plan, test and drill, evaluate. *The basic steps in planning to respond to a crisis are identifying and analyzing risks (e.g., a pandemic), planning to manage the possible outcomes if the risk event occurs (e.g., cross-training and remote work procedures), testing and drilling (e.g., a table-top exercise in which a department's plan is "invoked" and examined for effectiveness, thoroughness, and employee understanding), and evaluation of the plan to improve its effectiveness and applicability to emerging threats).

Which is the most appropriate example of risk mitigation? 1. Requiring criminal background checks for applicants 2. Requiring vaccination programs for assignees 3. Implementing an emergency communication system for assignees 4. Training interviewers about proper questions to ask during hiring interviews

Implementing an emergency communication system for assignees *A risk mitigation strategy seeks to reduce the negative impact of an event. A communication system cannot prevent crises, but it can decrease stress and reduce assignees' exposure to threats.

A successful beverage production company controls key activities in its value chain so that they can maintain uninterrupted production; this is the key to their profitability. Which actions should HR recommend managers focus on to assist in the organization creating value? 1. Implementing a product knowledge training program 2. Implementing cross-training and job rotation strategies 3. Decentralizing decision making for greater efficiency 4. Creating a strong research and development department

Implementing cross-training and job rotation strategies *When a company executes a cost leadership or operational excellence strategy, from an HR perspective they should focus on implementing cross-training and job rotation strategies. The other options focus on differentiation through innovation or customer service. Decentralizing may or may not increase efficiency.

Which factor contributes to the economic cost of diversity and inclusion efforts? 1. Potential for employee backlash 2. Increased wages 3. Government regulation 4. Increased training

Increased training *As organizations become increasingly diverse, there may be increased training costs related to cultural awareness, communication, and team building. Although poorly managed diversity and inclusion efforts may lead to backlash, employee backlash is not a typical economic cost of diversity and inclusion efforts. There is no evidence that government regulation increases the cost of diversity and inclusion efforts, and government regulations do not require diversity and inclusion initiatives. There is no evidence that diversity and inclusion require increasing the wages of employees.

How can HR minimize the risk of failure of an organization's diversity initiative? 1. Ignoring invisible diversity traits 2. Integrating diversity into the business culture 3. Implementing pay-for-performance reward systems 4. Mandating management training

Integrating diversity into the business culture *In order for a diversity initiative to succeed, an organization must truly embrace diversity and integrate varied life styles, beliefs, and needs into its business culture.

An organization fears that it has become less competitive. Which should an OED assessment of this issue identify? 1. Job tasks to be evaluated and modified 2. Internal and external factors that impact organizational success 3. Development needs at individual employee levels 4. Needs that can be met by training

Internal and external factors that impact organizational success *An OED intervention should help to identify the internal and external factors that affect the corporation. While individual training and development needs may be identified or job tasks may change as a result, the emphasis is on the organization as a whole.

Which is an accurate statement about employment at-will? 1. Most union contracts contain employment at-will clauses. 2. Verbal contracts are generally sufficient. 3. Most contracts contain employment at-will clauses. 4. It is uncommon in most parts of the world.

It is uncommon in most parts of the world. *Most countries reject the notion of at-will employment, so contracts generally are required, often within a set time frame from the point of hire. Verbal contracts may be accepted in some countries, but many require a written contract or written details of employment. Terms of employment vary greatly from country to country.

What type of learners acquire knowledge most effectively through a hands-on approach? 1. Auditory learners 2. Kinesthetic learners 3. Synthesis learners 4. Visual learners

Kinesthetic learners *Kinesthetic learners, also known as tactile learners, learn best through a hands-on approach. They prefer to actively 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.

A large multinational organization is implementing an organization-wide diversity and inclusion initiative. Which practice will help the initiative succeed? 1. Leave implementation to managers at the local and national levels, so the policy can be adjusted for local laws, norms, and traditions. 2. Research newest trends in diversity and inclusion, adopting them so the initiative does not need to change for an extended period of time. 3. Write the initiative in the most commonly used language, thereby avoiding errors in translation. 4. Implement the policy uniformally across the organization, ensuring that all employees are treated equally.

Leave implementation to managers at the local and national levels, so the policy can be adjusted for local laws, norms, and traditions. *By leaving implementation to managers at local and national levels, the initiative will be flexible enough to be successful organization-wide. The initiative should be translated into as many languages as needed, to enhance understanding across the organization. Just because one language may be more commonly used does not mean that it will be widely or universally understood. Forcing the initiative to be implemented uniformally may result in the initiative violating laws in some localities or violating cultural norms, causing the initiative to be less effective. Regardless of how forward-thinking the policy is, it will necessarily have to change and adapt over time in order to continue to be successful.

In addition to information technology, which other business function should HR work with when developing a "bring your own device" (BYOD) policy? 1. Finance 2. Executives 3. Operations 4. Legal counsel

Legal counsel *HR should work with the organization's legal counsel to ensure that the policy and practices do not violate any state or local laws, such as those related to password privacy.

What term describes a culture that prefers training activities that spell out details and use direct and logical communication? 1. Small power distance 2. High-context 3. Low-context 4. Large power distance

Low-context *In low-context cultures, people react to what is explicitly communicated so that those coming into the environment know how to behave

Which part of the organization has primary responsibility for bringing in revenue? 1. Research and development 2. Information technology 3. Operations 4. Marketing and sales

Marketing and sales *Marketing and sales are the functions that bring in revenue. Marketing positions products, and sales sells products and services to customers.

If an organization's competitive advantage is cost leadership, which practice is most likely? 1. Designing a detailed market development plan 2. Mass-producing product to meet general market needs 3. Promoting a customer service mentality to foster customer rapport 4. Investing profits in research and product development

Mass-producing product to meet general market needs *An organization that uses cost leadership or organizational excellence tends to increase efficiency and productivity.

What skill could most improve an HR function's ability to manage change? 1. Knowledge of current job descriptions 2. Mastery of complex communication means 3. Evaluation 4. Understanding of strategic implications

Mastery of complex communication means *Managing change requires all of the skills listed, but proficiency in communication is most important because it is key to involving the members of the organization in the change, engaging their support of the change, and initiating conversations that can improve the change initiative and increase employees' understanding of what is required for the success of the initiative.

In terms of risk management, what is a risk control? 1. Contingency plan to be implemented in the event of a crisis 2. System to prevent the occurrence of a risk 3. Mechanism to collect data for reporting to management 4. Measure taken to reduce the probability or severity of a threat

Measure taken to reduce the probability or severity of a threat *In risk management terminology, the most inclusive answer here is that a risk control is any measure that modifies risk by decreasing the likelihood that a risk event will occur or the impact that the event would have on the organization.

Which is the best way to demonstrate the impact of an organizational effectiveness and development initiative? 1. Tying the initiative to employee turnover 2. Measuring change over the course of the initiative 3. Surveying employee attitudes toward the initiative 4. Monitoring social media activity related to the initiative

Measuring change over the course of the initiative *Effectiveness is demonstrated by conducting accurate analysis at the beginning of the initiative and measuring change over its course.

Technology now encompasses most business activities. Which areas of HR practice can technology support? 1. Nearly every HR functional area 2. Primarily training 3. Primarily legal compliance 4. Just the administrative HR areas

Nearly every HR functional area *Nearly every functional area can be supported by technology applications.

Which is a reason why an organization might be pushed into global expansion? 1. Need for new customers 2. Constant tariff fluctuations 3. Outward foreign investment potential 4. Need for greater strategic control

Need for new customers *A need for new customers pushes an organization to expand geographically. Constant tariff fluctuations are a risk factor for global expansion. A need for greater strategic control might hold an organization back from expansion. Outward foreign investment potential is a factor that pulls an organization into expansion.

What is the process where two or more parties work together to reach an agreement on a matter? 1. Strategic planning 2. Meeting of the minds 3. Performance evaluation 4. Negotiation

Negotiation *Negotiation is a process in which two or more sides reach a mutually acceptable position. They start by defining their own objectives, understanding the needs and objectives of the other sides, and finding the best way to satisfy the needs of all sides. Strategic planning may involve negotiation if leaders must compromise on objectives and roles, but it is a planning process. Performance evaluation is a measurement of performance against defined standards. A manager and an employee may use negotiation to decide a personal development plan. A meeting of the minds refers to communication that results in understanding but does not necessarily require agreement.

An organization is interested in beginning the process of creating an ethical environment. Who has the most impact on the success of this process? 1. Local community 2. Organization's customers or constituents 3. Organization's leaders 4. Organization's employees

Organization's leaders *The process of creating an ethical environment must begin with the organization's leaders. It must receive continuous reinforcement from leadership at all levels.

To encourage a move away from identity groups to a more conceptual perspective of diversity, Gardenswartz and Rowe discuss which four dimensions of diversity? 1. Global, national, community, and family 2. Society, community, family, and personality 3. Gender, race, ethnicity, and religion 4. Organizational, external, internal, and personality

Organizational, external, internal, and personality *To fully benefit from diversity and inclusion, organizations increasingly seek diversity on multiple dimensions of an individual. While recognizing the specific needs of identity groups, Gardenswartz and Rowe describe four layers of diversity: organizational, external, internal, and personality. This model highlights that all employees are multidimensional and individuals are more complex than their visible identities might suggest.

Which statement exemplifies Hersey-Blanchard's situational leadership theory? 1. Leaders need to be charismatic because employees dislike rigid controls and inherently want to accomplish something. 2. Over time individuals require a different type of direction and leadership. 3. Leaders don't need personal relationships with mentors to learn from them. 4. A team leader is one equally concerned with people and production (task) to the maximum degree.

Over time individuals require a different type of direction and leadership. *The Hersey-Blanchard theory states that effective leaders change their leadership style to provide the level of direction and interaction that individual employees need at that point in their development. Since one employee's needs will differ from another's and since an employee's needs six months from now will be different from the employee's present needs, leaders must be able to identify an individual's current needs and provide the most effective levels of direction (from managing closely to delegating) and motivation (from selling the employee on the task at hand to empowering the employee through participative decision making).

How can factors like PESTLE analysis data have a greater impact on successful employee engagement and retention? 1. PESTLE data helps in adapting to environmental realities. 2. PESTLE analysis makes the best use of HRIS. 3. Foreign governments are not threatened by PESTLE analysis. 4. The PESTLE analysis process adheres to local customs.

PESTLE data helps in adapting to environmental realities. *Organizations that use PESTLE analysis data are much more likely to be successful because the information facilitates adapting to environmental realities that may impact employee engagement.

A security-conscious organization requires all new hires to complete training on security policies and conducts annual armed intruder drills for all employees. Which risk management strategies are being used by this organization? 1. Avoidance and enhancement 2. Sharing and optimizing 3. Prevention and mitigation 4. Detection and prevention

Prevention and mitigation *The organization is trying to prevent some risks from occurring through training new hires and mitigating the impact of any risk events that do occur by practicing certain procedures.

Performance improvement involves accurately identifying sources of unacceptable outcomes and intervening to create effective practices. Impractical or outdated procedures are an example of which type of performance problem? 1. Cognitive 2. Cultural 3. Process-related 4. Technological

Process-related *Impractical or outdated procedures interfere with process efficiencies. Therefore, these procedures should be evaluated and process improvement strategies should be implemented.

What pay system ties pay to the volume of the work performed by the individual? 1. Time-based step-rate 2. Performance-based 3. Person-based 4. Productivity-based

Productivity-based *A productivity-based system rewards quantity of work, and outputs are accurately measured. This system may sacrifice quality without careful supervision. It may also lead to inflexibility in the workforce because employees may want to stay in the job where they can earn the most rather than move to a more-chal

Which is the purpose of a works council? 1. Supervising elections for union representation of workers in the organization 2. Ensuring that workers are aware of promotional opportunities within the company 3. Representing workers in labor negotiations and, when necessary, authorizing strikes 4. Promoting communication between management and employees on issues that affect workers' interests

Promoting communication between management and employees on issues that affect workers' interests *Works councils are composed of workers and management representatives. Their purpose is to promote communication between management and employees on issues that affect workers' interests.

An international organization is seeking to implement a wellness program to improve the health and well-being of its employees. Which is the best way to encourage employee participation? 1. Make eligibility for company-sponsored health insurance dependent on participation in the wellness program. 2. Mandate that all employees must participate in the program, regardless of their personal wellness goals. 3. Create individual employee "wellness scores" and share them within the company to foster competition among employees. 4. Provide discounts on gym memberships at gyms located near applicable organizational locations.

Provide discounts on gym memberships at gyms located near applicable organizational locations. *Providing incentives such as discounts to gym memberships is a good way to encourage participation in a wellness program. Depending on the location, the organization may not sponsor health insurance, or it may be illegal to place eligibility qualifiers on a health insurance benefit. Mandating that all employees participate in the program will likely receive widespread pushback and low levels of engagement with the program, resulting in limited improvements in employee health and well-being. Publishing employees' health scores is unethical and possibly illegal, depending on the content of the scores and the location of the organization. It is unlikely to encourage employees to participate in the program.

Which action would best support an international assignee returning home after being away for more than ten years? 1. Provide repatriation support services such as counseling and logistical support. 2. Provide only the required notice of the return to reduce anxiety. 3. Give the assignee full new-hire orientation. 4. Allow the assignee to choose the timeline for returning.

Provide repatriation support services such as counseling and logistical support. *If not repatriated effectively, assignees often go through an adjustment cycle that is similar to what they experienced on entry into the host country. At a minimum, organizations should provide adequate notice that the assignment is ending, a clear repatriation plan, assurance that the skills and experience the assignee acquired will be effective in the new assignment, and repatriation support services including mentoring, counseling, and logistical support.

HR has been approached by a manager in a host country stating that activities being conducted by an employee are different than those in the home country and must be unethical. What should HR advise as the first step for this manager? 1. Remind the manager that just because the activities are being conducted differently does not mean that they are unethical. 2. Advise the manager that since he believes the activities are unethical the employee should be fired immediately. 3. Advise the manager to conduct an investigation to determine if the activities are unethical. 4. Advise the manager to inform the employee that the activities must stop immediately.

Remind the manager that just because the activities are being conducted differently does not mean that they are unethical. *The manager should be reminded that just because the activities are being conducted differently does not mean that they are unethical. Conducting an investigation would be the next step. Depending on the outcome of the investigation, the employee may be told to stop the activity and or be fired.

According to the sender-receiver communication model (the basic communication model), what is appropriate feedback to a message from a stakeholder who expresses disagreement in a meeting with something you have said? 1. Move on to the next point without giving too much weight to the person's opinion. 2. Repeat back what the stakeholder has said to you in a different way. 3. Nod and continue the original discussion. 4. Restate your position on the same issue in a new way.

Repeat back what the stakeholder has said to you in a different way. *Repeating what one has heard restarts the communication loop. The stakeholder can then confirm or correct the paraphrase. Restating the position does not clarify the message. The same is true for ignoring the comment; it is also rude. Nodding confirms receipt of the message but not understanding of it. The stakeholder could interpret the nod as agreement with the objection.

How does replacement planning differ from succession planning? 1. Replacement planning ensures the continuity of business operations; succession planning provides deep bench strength throughout the organization. 2. Replacement planning is based on an ever-evolving organization; succession planning is focused on short-term organizational needs. 3. Replacement planning is a systematic approach carried out across all lines of business; succession planning is more important to organizational continuity. 4. Replacement planning focuses primarily on lower-level positions; succession planning focuses on mission-critical positions and senior-level leaders only.

Replacement planning ensures the continuity of business operations; succession planning provides deep bench strength throughout the organization. *Replacement planning ensures the continuity of business operations, while succession planning provides deep bench strength.

Which characteristic typically distinguishes a job function as essential? 1. Requirements for highly specialized skills 2. Requirements qualifications that can be completed quickly 3. Specifications elements that can be performed infrequently 4. Specifications that can be performed by many different employees

Requirements for highly specialized skills *An essential job function is one that is performed regularly and requires highly specialized skills or expertise, and, in many cases, the reason the job exists is to perform the function. Nonessential functions typically can be performed by many different people, and, if not completed, there are often minimal consequences.

Employees who are critical to an organization's success are the primary focus of which aspect of a talent management strategy? 1. Succession planning 2. Career development 3. Employee engagement 4. Total rewards

Succession planning *Succession planning is a strategy for identifying and fostering the development of high-potential employees who, over time, may move into leadership positions. The objective of succession planning is to ensure that a practice continues to operate successfully when individuals who have hard-to-replace competencies or who occupy critical positions depart.

Which is a good practice for implementing a code of conduct? 1. Use the organization's statement of values as the basis for the components of the code of conduct. 2. Consult the codes of conduct of organizations of similar size as guides in content for the code. 3. Consider the code of conduct to be a living document, and revise it frequently, as needed. 4. Talk with members of the organization to better understand ethical challenges and compliance requirements.

Talk with members of the organization to better understand ethical challenges and compliance requirements *Because a code of conduct must address the risks and compliance requirements specific to an organization, it is a good practice to include discussions with a broad representation of the organization's members before drafting a code. While the organization's values are considered in drafting the code, they are not the basis of the code. While the code must be reviewed regularly, constantly revising it can lead to employees' not knowing the ethical mandates

What is a global mindset? 1. The belief that all other cultures and identity groups are really no different from one's own 2. The ability to learn other languages 3. The ability to take an international, multidimensional perspective that is inclusive of other cultures, perspectives, and views 4. The ability to encourage others with diverse backgrounds to see one's own perspective as the correct one

The ability to take an international, multidimensional perspective that is inclusive of other cultures, perspectives, and views *People with a global mindset have acquired knowledge and experience of other cultures and, based on this, are able to see cultures different from their own as neither better nor worse but simply different in some ways and similar in many key ways. They use this mindset to interpret individuals and events from multiple cultural perspectives. It is more than just seeing cultures as equivalent; it involves understanding differences and their effects. A global mindset requires more than knowing a language.

What important action takes place at the end of Lewin's change management model? 1. Employee input on change is sought. 2. A vision of the future is communicated. 3. The change is made a lasting part of the organization's policies or processes. 4. Employees are motivated to accept the change.

The change is made a lasting part of the organization's policies or processes. *The final phase of Lewin's change management model is refreezing, or making the change a permanent part of the organization's processes or culture. For example, a new process becomes a standard operating procedure, or changes in roles and responsibilities are incorporated into permanent job descriptions. The change process begins with describing the vision the change will help bring about and the benefits the organization will receive. Then two-way communication begins, soliciting employee comments and providing frequent feedback and status reports. This engagement helps motivate employees to accept the change and participate in implementing it.

Which type of globalization is characterized by large numbers of emerging country populations moving abroad for better employment opportunities? 1. The diaspora 2. International assignees 3. Globalist immigration 4. Demographic dichotomy

The diaspora *The diaspora refers to a mass migration of voluntary emigrants from their homelands to multiple destinations. The demographic dichotomy describes the trend of a younger workforce in emerging economies while developed countries are experiencing an aging workforce. International assignees and globalists are types of global assignments.

What is the impact that a service level agreement has when an organization moves from licensing software to software as a service (SaaS)? 1. The organization will need to provide real-time monitoring only after the installation. 2. It eliminates the need for clarification on who is the customer and who is the client. 3. The organization will not need to implement or customize software. 4. It does not define concerns over users' pay-per-use.

The organization will not need to implement or customize software. *The migration from the licensing of a product to subscribing for a service is often handled through a service level agreement (SLA). SLAs formally define service expectations and terms. Real-time monitoring service levels are addressed as well as customer versus client concerns. The client does not need to install or customize software; both are done by the vendor.

What is meant by the sustainability sweet spot? 1. The point at which management, employees, and the community agree on goals 2. The point at which a sustainable initiative's investment is surpassed by its economic benefits 3. The overlapping area of the triple bottom line perspectives 4. The ability of an initiative to improve an organization's brand as an employer of choice

The overlapping area of the triple bottom line perspectives *The sustainability sweet spot includes actions that satisfy all three of the needs in the triple bottom line: benefits to the environment (or planet); employees, customers, or neighbors (people); and the organization's financial health (profit).

How does an organization's adoption of the Global Reporting Initiative Standards for reporting corporate social responsibility (CSR) performance benefit HR? 1. The standards enable comparison of different organizations' CSR performance. 2. The primary focus of the standards is on the social (or HR-related) aspects of the triple bottom line. 3. The standards' general nature allows for them to be customized to organizational needs. 4. The standards lay out a step-by-step pathway to achieve sustainability.

The standards enable comparison of different organizations' CSR performance. *The Global Reporting Initiative Standards (or GRI Standards) establish uniform ways to report the outcomes of an organization's sustainability initiatives. This allows the performance of organizations to be compared. The GRI Standards focus on a breadth of issues, from social to environmental. They are specific in calculating outcomes. They are not a pathway to creating a CSR program but provide metrics and instructions to use in evaluating and reporting CSR performance.

How has the talent acquisition process been affected by social media? 1. The large volume of unsuitable candidates complicates recruiting efforts. 2. There is an increased ability to find and connect with passive candidates. 3. Privacy concerns related to online information are not an issue. 4. Recruiters can anonymously access private candidate information.

There is an increased ability to find and connect with passive candidates. *Social media make it easier to find passive candidates. In addition to finding passive candidates directly online 24/7, social media provide talent scouts with access to passive candidate networks of key connections.

What is the primary function of an HR audit? 1. To determine the need for additional staff in the HR department 2. To enhance or eliminate HR programs 3. To increase the skills of the HR team 4. To increase job satisfaction of the HR team

To enhance or eliminate HR programs *HR audits provide information to determine the effectiveness of HR programs. With this information, successful programs can be enhanced while ineffective ones can be eliminated. The importance of the audit is that while it yields information specific to the functioning of HR programs, these programs have an organization-wide effect. Therefore, the results of the audit impact more employees than only those in the HR department.

What is the primary reason for developing workforce diversity programs? 1. To develop language capabilities 2. To avoid lawsuits 3. To improve basic skills 4. To enhance productivity

To enhance productivity *The primary reason for developing diversity programs is to make it easier for employees to communicate effectively and work together more productively.

Which classification of employee engagement is demonstrated by working long hours and responding positively to engagement surveys but not feeling engaged? 1. Trait 2. State 3. Transactional 4. Behavioral

Transactional *Transactional engagement can be seen as undesirable because it is associated with negative well-being outcomes. By contrast, employees not only behaving in an engaged way but also thinking and feeling engaged is associated with positive well-being outcomes.

Which item would be considered an input in the input-process-output (IPO) model? 1. Cross-functional meetings to brainstorm causes for turnover 2. New policy on flexible scheduling and processes for implementing it 3. Exit and stay interview guides used to obtain feedback from employees 4. Turnover data showing a steady increase in voluntary resignations in the last year

Turnover data showing a steady increase in voluntary resignations in the last year *Inputs in the IPO model include data about conditions (past, current, and projected). Turnover data that reflects an increasing loss of talent is an internal constraint that may impact an organization's ability to meet its targets. This is an input factor that would be analyzed in the IPO model. Processes are tools and skills that can be applied to gain meaning from the inputs. Exit and stay interviews that search for causes and cross-functional brainstorming teams that come up with possible solutions would be considered processes in the model. Outputs are what the organization does with the wisdom it has gained. This could include new policies or processes, such as flexible scheduling.

Which of the four branches of emotional intelligence is described as the ability to capitalize on feelings to promote and inform decision making, problem solving, and other cognitive activities? 1. Using emotion to facilitate thought 2. Regulating emotion 3. Understanding emotion 4. Perceiving emotion

Using emotion to facilitate thought *There are four branches of emotional intelligence: perceiving, using, understanding, and regulating emotion. When individuals use emotion, they are able to recognize emotional states, estimate the emotions' probable effect on activities, and use that knowledge to make better decisions. For example, a leader might use his or her own sense of discouragement to check in on a team's state of mind and perhaps schedule a motivational event.

How are the concepts of value and the value chain related to strategy? 1. The value chain defines what is important for the organization's stakeholders. 2. Value points to economic metrics that can be used to measure strategic success. 3. These concepts relate primarily to for-profit enterprises. 4. Value chain analysis identifies areas critical to strategic success.

Value chain analysis identifies areas critical to strategic success. *All organizations, including nonprofits, have the goal of creating value in some form. Value may be measured by financial metrics but could also be measured by environmental or social metrics. The value chain describes the way the different parts of an organization (and possibly the extended organization, including suppliers and customers) create value. Effective strategies align the organization's parts behind goals through value chain analysis, which is a thorough understanding of the role each part of the organization plays in creating value and its relationship to and requirements of the other parts.

An organization has decided to use a random drug testing program for all current employees. What should the organization do prior to implementing the program and testing employees? 1. Create standard documentation forms to use when dismissing employees following failed tests. 2. Collect legal documentation from all employees verifying their willingness to participate in the program. 3. Verify that the proposed program complies with applicable local, state, and federal laws. 4. Have all employees sign arbitration agreements to settle disputes over failed drug tests.

Verify that the proposed program complies with applicable local, state, and federal laws. *The organization must ensure that the testing program complies with all applicable federal, local, and state laws. Depending on applicable laws, the organization may or may not need to collect documentation from employees indicating their willingness to participate. Certain localities may not allow automatic dismissal following a failed drug test, so creating documentation for an automatic dismissal would not be an effective use of time or resources before checking with applicable laws. Depending on the law, organizations may or may not be able to compel employees to sign arbitration agreements.

When would a return on investment (ROI) analysis be an effective metric? 1. When an investor is seeking information about a company's financial health 2. When a function is seeking budget to hire new staff 3. When an HR function wants to confirm that it is complying with legal and regulatory requirements 4. When an organization wants to compare its productivity with that of similar competitors

When a function is seeking budget to hire new staff *ROI analysis is used to evaluate an investment opportunity. The only investment scenario in the choices is hiring new staff. The ROI analysis would compare the value of the output of additional staff (the return) with the costs to hire and retain staff (the investment). An organization's financial health might be assessed through various debt ratios and its cash flow. Productivity ratios examine output relative to input (e.g., revenue per full-time equivalent employee). A compliance audit would be used to assess compliance with regulatory requirements.

Which budgeting method is being used by a manager who begins with no allocated budget and must justify allocations based on how the function will contribute to the organization's strategic goals? 1. Formula-based budgeting 2. Zero-based budgeting 3. Incremental budgeting 4. Capital budgeting

Zero-based budgeting *Zero-based budgeting requires all managers to start at zero. A department must justify its entire budget and show how its funding will help the organization to meet its goals. In zero-based budgeting, all operations are given a priority rating, each unit or goal is ranked, and funds are given in order of the ranking.