SHRM Practice Test

A manager approaches the HR director with concerns about an increase in absenteeism among her staff. Which of the following best explains how absenteeism is related to employee engagement? A) Absenteeism rates are not indicative of employee engagement levels, as absences occur for many reasons. B) Absenteeism rates are not indicative of engagement levels due to the unreliability of a correlation between absence and engagement. C) Unscheduled absenteeism rates are a reflection of a paid-time-off program and not an indicator of employee dissatisfaction. D) Absenteeism rates can be an indirect indicator of employee engagement, as employees are not attending work.

D) Absenteeism rates can be an indirect indicator of employee engagement, as employees are not attending work. * Absenteeism rates, particularly for unscheduled absenteeism, can be an indicator of potential engagement problems. This can reflect employees' desire to not be in the workplace.

A multinational company is assessing its corporate social responsibility (CSR) goals and expectations for the coming year. How can HR best help with this initiative? A) By setting the objectives B) By setting priorities C) By gaining executive commitment D) By gathering information from stakeholder focus groups

D) By gathering information from stakeholder focus groups * In the assessment stage of the CSR strategic process, stakeholders are consulted to help the organization see how its efforts are viewed.

Which issue identified during an environmental scan for a small, family-owned grocery store represents a threat to its competitive strategy? A) A gas station on the next block has expanded to include a new convenience store. B) the local government recently imposed a %0.05 fee for plastic merchant bags. C) The cost of bulk-rate direct mail has risen 15% in the last six months. D) An ethnic foods grocery has opened in a shopping center a mile away.

A) A gas station on the next block has expanded to include a new convenience store. * In the SWOT analysis, threats are an indication of possible danger, harm, or menace. When considering competitive strategy, a similar business nearby that offers additional and differentiated value to customers is a direct threat that must considered in strategic planning. Even though it is close, the ethnic foods grocery store is appealing to different customers or customer needs. The fee and rate increases apply to all similar competitors.

Why might an employer choose to accept a union? A) A union is a useful way to organize complex bodies of employees. B) It strengthens the employer's power with the union. C) The grievance process in a union contract is much more simple than in other situations. D) Union campaigns effectively motivate workforce performance.

A) A union is a useful way to organize complex bodies of employees. * In some workplaces, unions can help employers communicate more quickly and clearly and implement actions in a more coordinated manner.

Which is the best strategy a compensation director should use when there has been movement in the market rates of key positions that need to be filled quickly? A) Age the salary data. B) Assess the current market. C) Factor for geography. D) Weight positions to higher levels.

A) Age the salary data. * Aging data addresses movement in market rates by adjusting outdated data.

How does the self-service component of an HRIS shift HR's focus from transactional to transformational? A) By shifting benefit profiles and option updates to managers and employees B) By identifying potential succession management problems before they occur C) By using the Internet to improve communication across time zones D) By supporting the use of virtual teams working around the globe

A) By shifting benefit profiles and option updates to managers and employees * All of these options benefit the organization, but using the self-service option that allows managers and employees to update key information frees global HR professionals to focus on tasks that add more value to the organization.

An HR leader meets frequently with the operations head to discuss staffing needs. They meet in the operations head's office, where they are frequently interrupted by operations supervisors with needs they insist are urgent. The HR leader needs the operations head to understand aspects of the labor market that will be affecting recruiting strategies. What obstacle must the HR leader overcome? A) Communication noise B) Task conflicts affecting the meeting C) Goal conflicts between HR and operations D) The operation head's lack of strategic awareness

A) Communication noise * The HR leader must persuade the head of operations to move the meeting to a setting that will eliminate the constant interruptions, which have become a source of "noise" in the communication loop. The noise interferes with the ability of the HR leader to confirm the head of operation's understanding and with the head of operations' ability to decode the message from HR.

A software company is opening a facility in China. Some U.S. management and key personnel will be transferred; however, most new employees will be hired in China. Company executives want more information about the Chinese workforce, including a workforce evaluation of the labor market in China. What first step should be accomplished as soon as possible? A) Conducting a supply analysis of available employees B) Identifying flexible staffing arrangements available in the new region C) Completing replacement and succession plans for the new facility D) Creating a talent acquisition strategy to recruit skilled talent

A) Conducting a supply analysis of available employees * Evaluating the current supply of U.S. workers and Chinese workers will help to identify the skill sets required and how many workers from each country will be needed.

An organization has typically allowed individual unit managers to handle all interviews, granting the managers a large degree of autonomy to select candidates. However, the new HR director has identified that this policy has caused a large variance in the actual quality of candidates that are hired, impacting the organizaiton's overal performance. The HR director wants to bring all interviews under the direction of HR, but she receives significant pushback from managers, who fear losing control over who they hire. Which is the best option the HR director can select to increase the quality of new hires while respecting the desires of managers to have final say over who they hire? A) Continue to allow unit managers to conduct interviews but require that they employ structured interviews for consistency. B) Direct HR to pre-screen applicants but allow unit managers to decide who to interview and to hire independent of pre-screen interview results. C) Implement a multi-step interview process where unit managers are allowed to sit in on final interviews and provide input. D) Continue to allow unit managers to conduct interviews but require that they employ stress interviews to ensure that selected applicants can perform adequately.

A) Continue to allow unit managers to conduct interviews but require that they employ structured interviews for consistency. * The best option is to allow unit managers to conduct interviews but to require them to employ structured interviews. This will help ensure that all unit managers are consistently assessing candidates, and HR will be able to guide the interview process with better questions designed to elicit valuable responses. Creating a new interview process and minimizing the participation of unit managers will still likely face significant pushback. Pre-screening applicants can help, but, if the unit managers are not required to use the results of the pre-screening interviews, they may not result in the selection of better candidates. Stress interviews may not be applicable to many organizational positions and unit managers may not be able to correctly employ them, resulting in less success with candidate selection.

What action should HR take to validate that recruiting goals support the overall strategy? A) Create a value driver tree to determine if there is a sight line to the strategy. B) Set recruiting goals to target candidates that fit the culture of the company. C) Measure results of recruiting objectives to make certain all are being met. D) Review recruiting metrics with hiring managers to establish goals.

A) Create a value driver tree to determine if there is a sight line to the strategy. * A value driver tree is a tool that may be used to map enterprise-level goals to the functional level. Completing an assessment using a value tree would validate whether or not there is line of sight in recruiting goals.

An organization with a non-tech workforce is looking to create a more efficient way to handle technology questions. Currently, the IT department reports that 40% of help desk calls are seeking direction on common tasks, such as archiving an e-mail or accessing the organization's parts ordering system. Which option is the best way to address repeated questions like these and free up time for the IT department to complete other crucial projects? A) Create an FAQ web page, accessible from the intranet home page, with step-by-step instructions for performing common tasks. B) Implement instant-messaging software so employees can ask their colleagues for instruction without bothering the help desk. C) Hold semiannual refresher courses, taught by the IT department, so employees that need the training can sign up as often as needed. D) Investigate and identify employees who are abusing the help desk function, and ask their managers to address the situation in annual reviews.

A) Create an FAQ web page, accessible from the intranet home page, with step-by-step instructions for performing common tasks. * Using a technology-based system, such as a web page featuring instructions on completing common tasks, is the best option. By prominently linking it to the intranet home page and encouraging employees to use the links, IT can divert some of the questions that are commonly asked. Refresher courses would use more resources and may not solve the problem. Investigating repeat offenders doesn't address the root cause of the issue and may discourage employees from reaching out when they have legitimate issues. Introducing a new software program and asking employees to use colleagues is inefficient and may actually exacerbate the issue.

An organization expands its operations internationally and asks human resources to develop a list of potential global assignees. What is the first step HR must take in assessing and selecting the candidates? A) Develop specific selection criteria and qualifications for the assignments. B) Create a metric for assessing the effectiveness of the assignment process. C) Research employment laws and regulations for each new location. D) Develop and implement global policies and procedures for the new locations.

A) Develop specific selection criteria and qualifications for the assignments. * The assessment and selection of assignees is one of the most important determinants of success. The primary purpose of the assessment and selection process is to ensure that the organization has the right people in the right place at the right times. Under global assignee assessment and selection guidelines, HR professionals would begin by developing the selection criteria, then ensuring that they involve the right people, followed by choosing the best selection methods and tools, and finally completing the assessment and making a recommendation.

An organization has had difficulty sustaining its diversity and inclusion effort during economic downturns and has experienced resistance from managers and employees alike. What might be recommended to help this organization? A) Increased alignment between business strategy and diversity initiatives B) Increased attentiveness to backlash from employees C) Increased attentiveness to training and development D) Increased use of outside facilitators and trainers

A) Increased alignment between business strategy and diversity initiatives * Diversity and inclusion initiatives will falter unless they are aligned with business strategy.

What is the primary benefit of using a risk register? A) It creates transparency and accountability. B) It quantifies risk exposure in risk management efforts. C) It shows early warning signs of risk emergence. D) It fulfills compliance responsibilities.

A) It creates transparency and accountability. * A risk register documents risks that have been identified, assessments, management strategy, and individuals responsible for implementing and monitoring the strategy. While it may include information about key risk indicators that signal increasing risk, it is not used to identify these indicators.

An HR director is examining the results of an employee survey to determine how to increase employee engagement. The survey results indicate that employees do not see the organization as a long-term stop during their career. Newly hired employees feel that they have a good understanding of the company's culture and are able to rapidly integrate with the organization, but that seems to have a limited effect on employees' desire to stick with the organization. Which action should the HR director take to make the organization a long-term destination for newly hired employees? A) Discuss career path options during the interview process to show employees how they can grow in their career. B) Create a new online application page with testimonials to the company's strong culture and benefits. C) Create a structured onboarding experience to ensure that engagement levels don't drop in the first 90 days. D) Partner new employees with employees who have been with the company for more than five years.

A) Discuss career path options during the interview process to show employees how they can grow in their career. * Discussing a career path during the interview process may help potential employees see growth options with the company and change their outlook on staying with the organization long-term. Partnering new employees with veteran employees and creating an online application page with information on company culture might assist with navigating the organization and the new employees' understanding of the organizational culture, but these issues were not identified in the employee survey. A structured onboarding experience may help sustain new employee engagement but may not change employees' view of the organization as a long-term career stop.

What are the typical goals that drive the operations part of an organization? A) Efficiency and quality B) Employee safety and revenue C) Innovation and alignment with market needs D) Risk minimization and financial accountability

A) Efficiency and quality * Operations is in charge of creating products or services that meet cost, volume, and quality standards. Meeting volume targets within budget costs requires efficiency. HR can help operations be more efficient by ensuring an adequate number of employees with the right knowledge, skills, and abilities.

An organization that has decided to sell a long-held subsidiary is considering potential buyers. What information should the HR leader provide to leadership in this phase? A) Employee census for the subsidiary that includes current roles and total current compensation B) Revised leadership structure for the subsidiary based upon analysis of the succession planning data C) Total head count data along with turnover statistics for the subsidiary as compared to the organization D) Recommendations for potential buyers based upon HR's knowledge of the local recruiting market

A) Employee census for the subsidiary that includes current roles and total current compensation * The value of the workforce that has been selected for divestiture is useful information that HR can provide as the organization is considering target buyers. A total head count along with the current cost of each employee will be needed. This occurs as the second step of the divestiture process, after the candidate for divestiture is identified.

An organization is embarking on the creation of a new strategic plan for the next five years. Just before the process starts, the HR VP becomes aware of widespread discussions between lower-level managers on how to use the strategic planning process to advance pet projects. How should the HR VP ensure that the strategic planning process is successful without it being abused for personal gain by those involved in the process? A) Focus on organizational core competencies to drive the process. B) Avoid involving lower-level managers in the planning process. C) Attempt to identify the parties seeking to use the process for their own ends. D) Use third-party consultants to develop the strategic plan.

A) Focus on organizational core competencies to drive the process. * The HR VP should ensure that the strategic planning process is focused on core competencies. By doing so, the organization will focus on key areas. By not involving lower-level managers, the HR VP would risk less involvement in the process and the organization might miss out on worthy concepts originating from the lower levels. Using third-party consultants may jeopardize the adoption of the strategic plan throughout the organization, including both senior and junior management levels. Attempting to identify the parties is an inefficient use of time and resources. * A pet project is an activity or goal pursued as a personal favorite, rather than because it is generally accepted as necessary or important.

An organization implements employee self-service through an HR portal for employees to check their personal data, update information, and handle expense reporting. What will likely be the most important impact of this initiative? A) HR head count may be reduced due to time savings. B) Users will be notified when their changes are made. C) The organization will need to determine the complexity of tasks. D) Employees may feel that they are doing HR's work.

A) HR head count may be reduced due to time savings. * The most important impact is that HR head count may be reduced due to the new efficiencies and time savings.

A global organization that was recently criticized for subcontracting to manufacturers who employ children is experiencing plummeting sales. This results in reductions in force (RIFs) that many global employees will view as unfair and inequitable. Which risk management tactic is most appropriate for the HR manager to take? A) Have the legal department review the RIF plan and external laws to avoid litigation. B) Offer all separated employees enhanced severance of two years' wages and benefits. C) Conduct the RIF, and accept that some employee issues may arise and handle them on a case-by-case basis. D) Share the RIF plan for transparency, and solicit feedback and concerns from global locations.

A) Have the legal department review the RIF plan and external laws to avoid litigation. * Risk management aims at controlling the effects of uncertainty. In this case, securing legal review helps avoid costly legal compliance issues. Communicating the plan may affected employees manage their futures, but it does not affect the employer's risk; its image as an employer has already been damaged. Similarly, offering compensation packages does not protect against risks of non-compliance, and is probably beyond the employer's financial capabilities. Conducting the RIF without legal review and without a communications plan would be choosing to ignore the potential for risk.

As a strategic HR practitioner, how would you approach the task of aligning HR's goals to the organization's strategy? A) Identify where new skills are needed. B) Focus on the organization's short-term goals. C) Align goals to the organization's legacy practices. D) Focus on training new employees.

A) Identify where new skills are needed. * As part of its strategic management, HR creates strategies to achieve goals aligned with the organization's strategy. Identifying where new skills are needed is an example of this strategy.

An expatriate has transferred to another country for a temporary assignment. She assumes that her colleagues in the new location will value timeliness just as her colleagues in the home country do. Therefore, she interprets the slow response to e-mails and requests in the host country as unprofessional. She becomes frustrated with her colleagues, inhibiting collaboration and the development of relationships among her new team. This example indicates a lack of understanding and exploration of what type of culture? A) National culture B) Subculture C) Organizational culture D) Professional culture

A) National culture * Differences in assumptions, outlooks, and rules can challenge communication and comprehension. This challenge is remedied by remaining aware of and curious about the varied rules (written and unwritten) that each nation's business culture has, combined with respecting and adapting to those rules while working in the environment.

A small printing organization is looking to increase its sustainability. The organization lacks the ability to allocate large amounts of financial resources to sustainability and does not have the clout to drive major changes with overseas business partners. Which option is the best way for the organization to increase sustainability? A) Partner with other local businesses to drive sustainability initiatives in the local area. B) Purchase only sustainably produced paper at a higher cost, passing the cost difference on to the customer. C) Invest in the creation of online products and influence customers to avoid printing hard copies of its products. D) Hire a new chief sustainability officer and allow the new hire to set the course for the organization.

A) Partner with other local businesses to drive sustainability initiatives in the local area. *Partnering with other local businesses can help increase sustainability in multiple ways, without requiring a large amount of financial resources. Unilaterally increasing prices to the customer may endanger the success of this small organization. Investing in online products may be cost-prohibitive. Hiring a chief sustainability officer, without having resources to allocate to the position, would likely be ineffective.

Which action would ensure global assignment success? A) Send assignees on international assignments to manage a specific project. B) View assignments as leadership and career development opportunities. C) Choose only high-potential managers and top executives as assignees. D) Send assignees on long-term international assignments, not projects.

A) Send assignees on international assignments to manage a specific project. * For an initial foray into overseas assignments, assignees in organizations with a multidomestic or international strategy should be sent on short-term projects or to complete a specific job.

A fairly small organization is headquartered in a relatively remote location, far from major metropolitan areas. Due to the location, the organization has historically struggled to fill positions with external candidates, forcing it to rely on internal candidates to fill many non-entry-level positions. The organization notices that it is having issues retaining potential talent, who are leaving to find promotional opportunities elsewhere. Which internal recuriting method should the organization use to retain potential talent and fill the non-entry-level positions? A) Succession planning B) Employee referrals C) Job posting D) Nominations

A) Succession planning * Succession planning would help address two of the issues that the organization has identified by (1) identifying potential talent and preparing them to be promoted within the organization and (2) providing the employees with a road map and a glimpse of their future potential within the company. This may help prevent employees from looking for opportunities outside of the organization, and it could provide better-prepared candidates for open positions. Nominations, job postings, and employee referrals may help attract more applicants internally but wouldn't necessarily provide the same benefit of retaining potential talent.

Which business case can an organization's diversity council make to support aligning supply chain policies with the organization's diversity and inclusion strategy? A) Suppliers that embody diversity strengthen ties to a diverse customer base and strengthen recruitment/retention efforts. B) Minority-owned suppliers are more likely to discount their services and products in order to remain competitive. C) Diverse local suppliers are less likely to be unionized and can therefore save the organization considerable money in labor costs. D) Having the same policies and procedures apply to both internal departments and outside suppliers saves time and resources and reduces training costs.

A) Suppliers that embody diversity strengthen ties to a diverse customer base and strengthen recruitment/retention efforts. * The business case for promoting supplier diversity includes strengthening the organization's appeal to its own diverse customer base and to those customers who support supplier diversity practices as well as assisting in diversity recruiting efforts within the organization.

Which principle of employment at-will affects employers in countries that recognize this employment right? A) The employee is not legally bound to any financial liability incurred for abandoning the job. B) The employer is able to recover damages or costs incurred by the departure of an employee. C) Severance payments must be agreed upon in writing when the employee is first hired. D) Employers are not required to identify a legitimate business decision for taking adverse action.

A) The employee is not legally bound to any financial liability incurred for abandoning the job. * When the principle of employment at-will applies, primarily in the U.S., both the employee and the employer are free to terminate the relationship with no consequences, assuming that no other contracts or agreements have been made and the termination was legal (in other words, not a case of wrongful discharge).

A project leader asks HR for help with managing the team aspects of a challenging project. The team was tasked with prototyping a new consumer electronics product. Due to various supplier problems, the team has missed several milestones. To meet the deadline, another team has been diverted from its less critical project and added to the delayed project. The project leader needs things to go as smoothly as possible with this new merged team so that no more time is lost. What should HR focus on? A) Using a RACI matrix to define new team roles and responsibilities B) Analyzing team processes to identify inefficiencies and conflicts C) Creating a process for qualifying new suppliers D) Scheduling meetings to discuss the project's goals and the organization's values

A) Using a RACI matrix to define new team roles and responsibilities * Because time is short, the new and old team members need to know their roles and responsibilities. A RACI matrix can be completed in one meeting. Since both project teams are working in the same organization and on similar projects, they probably already appreciate the project's goal and the organization's mission and values. Qualifying new suppliers will not improve the integration of the teams. There is no suggestion that the project's problems were caused by internal processes that could be reengineered.

A small organization does not have the time or resources to administer benefits, payroll, or personnel records programs. Which flexible staffing alternative is an option for them? A) Using in-house temporary employees B) Leasing employees from a professional employer organization C) Instituting a temp-to-hire program D) Hiring independent contractors instead of employees

B) Leasing employees from a professional employer organization * In this staffing alternative, an organization transfers all or substantially all employees at a discrete site or facility to the payroll of an employee leasing firm. The PEO leases employees back to the organization while handling most of the HR administrative functions (e.g., payroll, benefits).

What does a strong communicator use to determine which communication method is most suitable? A) Timetable, group voting, encoding, and decoding B) Purpose, objectives, target audience, and key messages C) Best tools that are already at hand D) Most innovative methods available

B) Purpose, objectives, target audience, and key messages * A strong communicator uses the purpose, objectives, target audience, and key messages to determine which communication methods are most suitable.

Which organization has evolved farthest on the CSR (Corporate Social Responsibility) maturity curve? A) Product sustainability claims are included in employer branding used in recruiting. B) An organization aligns its value with CSR principles, promoting this identification to stakeholders. C) An organization reports sustainability results to fulfill local country mandates for reduced carbon emissions. D) Objectives related to CSR are included in performance management at all levels.

B) An organization aligns its value with CSR principles, promoting this identification to stakeholders. * The most evolved organizations on the CSR curve have been transformed: they have redefined the value they create through their products or services to align with CSR principles, and they use this as a way to compete. More evolved organizations on the CSR maturity curve have integrated CSR principles into their policies, systems, and processes--for example, into performance management systems. The least evolved organizations adopt CSR for reactive reasons (to comply with regulations or other requirements).

Which world legal system is based primarily on legal precedent? A) Criminal law B) Common law C) Civil law D) Religious law

B) Common law * Common law is based primarily on previous judgments by courts. The lawyers point to precedents. The judge assesses the relevance of those precedents to the case at hand and then issues a new ruling, which becomes part of common law. Common law is thus made by judges, while civil law is made by legislators.

An HR manager outsources temporary packaging work to a youth group at her church. How would you characterize her actions? A) Violation of labor laws and youth employment regulations B) Conflict of interest, as other groups were not considered C) Inappropriate, because a church group is involved D) Appropriate, as part of a community relations strategy

B) Conflict of interest, as other groups were not considered * The action is a conflict of interest, since it benefits an organization with whom the manager is connected. The manager could have avoided a conflict by involving other HR staff in the decision and considering other participants besides the church group.

Which benefit is most advantageous when considering a best-of-breed solution compared to an integrated solution? A) Reduces learning curves of workforce because of limited interface B) Creates customized solutions for different functional areas C) Is often be less expensive than integrated solutions D) Provides greater ease of data management and administration

B) Creates customized solutions for different functional areas. * Creating customized solutions for different functional areas is the only best-of-breed benefit identified in the answer choices. * Best of Bread - is often called B.O.B. is that it's a leading product or software tool in a particular market segment.

A small organization has recently doubled the size of its workforce to 150 employees. The HR director has received approval to purchase an HRIS to help deal with the increase in reporting requirements. There is an IT expert in-house. What is the best course of action for this HR director in regard to the purchase and implementation of the HRIS? A) Purchase a robust HRIS software package that allows specific information. B) Customize an off-the-shelf HRIS software package. C) Outsource all HRIS functions, as on-site IT is not available. D) Purchase the HRIS software package after benchmarking with a consultant.

B) Customize an off-the-shelf HRIS software package. * Smaller organizations need only the basic information typically associated with employee status and payroll records. Purchasing a relatively inexpensive off-the-shelf software package can provide what is needed for effective HR applications that are easy to install and use.

Which is a cultural barrier to implementing effective risk management practices? A) Managers and employees lack basic knowledge about risk management practices. B) Risk management strategy is developed and implemented by senior management alone. C) Functional leaders submit a risk management plan for their areas every two years. D) Risk management strategies are implemented by repeating previous practices.

B) Risk management strategy is developed and implemented by senior management alone. * By restricting risk management to senior management, the organization has missed an opportunity to create an organizational culture that values risk management and makes it a basic part of how they approach their work.

An organization previously competed on the basis of innovation. Its employees were rewarded for independent decision making and risk taking. As the market has matured, however, competition has forced leaders to shift to a strategy that increases management control over decisions and relies on processes to resolve the minor but embarrassing quality problems that have always been associated with its products. The leaders look to HR to help support this strategy. What first step should HR suggest? A) Contract with professional quality engineers to better understand the causes for the product problems. B) Explain to the leaders that the new strategy will require changes in structure, policies, processes, and culture. C) Implement new hiring and performance management systems that will focus on more bureaucratic skills and attitudes. D) Develop a communication plan that will help all employees align their work with the new strategy.

B) Explain to the leaders that the new strategy will require changes in structure, policies, processes, and culture. * The best first step is to consider the ways in which this new strategy will affect all the other components of the organization (structure, systems, leaders, values, culture). For this new strategy to succeed, the organization must change from one that values independence and risk taking to one that rewards accountability to policies and standards and collaborative decision making. Tackling quality problems will be easier when more fundamental changes to the organization have been accomplished. Shifting hiring profiles does not address necessary changes among existing employees. A communication plan for the strategy is absolutely necessary but must be part of a larger change initiative.

A recent employee survey reveals inefficiencies in production processes. Which structured activities should be recommended to correct the inefficiencies? A) Engaging stakeholders B) Focusing on process requirements C) Aligning roles and responsibilities D) Identifying talent needs

B) Focusing on process requirements * Over time, work processes can become detached and lead to delays. OED process strategies aim at realigning work and refocusing on how work is accomplished.

HR works with the executive leadership team to redesign the company's operational structure. HR brings on an external consultant to determine next steps. What should be the consultant's initial recommendation to HR? A) Design a possible solution to the identified problem. B) Gain agreement on the initiative's objectives. C) Outline the steps necessary to implement the initiative. D) Determine if there is money in the budget for the initiative.

B) Gain agreement on the initiative's objectives. * The initiative's objectives will drive later decisions about budget, the most effective solutions, and necessary steps.

How can the performance of HR during the due diligence process maximize the success of a merger or acquisition? A) HR can ensure that effective communication occurs after the due diligence. B) HR can uncover obstacles that affect agreements and implementation plans. C) HR can create compensation and benefit strategies that are internally and externally equitable. D) HR can partner with attorneys to prepare severance agreements for the potential reduction in force.

B) HR can uncover obstacles that affect agreements and implementation plans. * Ensuring that obstacles are recognized during due diligence can reduce the potential problems after the completion of the merger or acquisition. This minimizes the number of surprises. * Due diligence - reasonable steps taken by a person in order to satisfy a legal requirement, especially in buying or selling something.

Which is the best course of action to incorporate concerns raised by works councils about a proposed staffing plan for multiple countries across Europe? A) Involving local managers in the creating of the tactical plan. B) Holding ongoing discussions with works council leaders. C) Addressing issues as they are raised by union representatives. D) Reviewing the plan with experts in local labor law.

B) Holding ongoing discussions with works council leaders. * Devising a plan to gain the support of the works council, while still meeting organizational goals, is a way to head off future labor issues. Contacting works council leaders in advance can help clarify these issues and begin the dialogue.

An organization has announced that no salary increases above 1.5% will be allowed and budgets should be set accordingly. What would be a likely impact on HR's budget? A) Reduced HR head count and internal HR development B) Increased budget for additional benefit programs C) Postponement of employee online self-service center D) Decreased recruiting and hiring costs

B) Increased budget for additional benefit programs * The organization will probably need to look at other ways to attract and retain employees, such as more creative, customized benefit programs. The salary cap will not necessarily affect hiring needs and HR staffing and operating costs. Nor will it directly affect capital expenditures, such as the self-service center, that may support the organization's business strategy by, for example, increasing operational efficiency.

How does a corporate social responsibility (CSR) program impact employee retention? A) Keeps employees engaged in diversity initiatives B) Increases brand image as an ethical and sustainable organization C) Allows employees to work on projects they are passionate about D) Improves employee compensation and benefits and morale

B) Increases brand image as an ethical and sustainable organization * Employees want to be associated with an organization that is viewed by the public as ethical and sustainable.

A top performer routinely arrives late to work. When questioned, rather than providing an explanation, she just says that she'll take a shorter lunch hour. Because of her performance, her manager allows this behavior to continue. Which risk does the manager take by failing to apply policy consistently? A) It may inspire flexibility or liberties in other aspects of work besides start times and end times. B) It may provide grounds for a legal finding of unjust dismissal by people who are fired for tardiness. C) It may put pressure on other managers to offer flexibility on certain rules based on performance. D) While there is potential risk to employee morale, it is outweighed by this employee's superior performance.

B) It may provide grounds for a legal finding of unjust dismissal by people who are fired for tardiness. * Failure to apply rules consistently to all employees may be grounds for a legal finding of unjust dismissal and trigger financial penalties. Chronic tardiness can damage the work environment, harm the employer brand, and reduce productivity.

Why should an organization measure the retention rates of high-potential employees? A) So action can be taken to compensate high performers B) So strategies can be pursued to keep targeted future leaders C) To increase transparency about succession plans D) So a need for more communication from leadership may be highlighted

B) So strategies can be pursued to keep targeted future leaders * Measurement and evaluation of a talent management program supports the organization's efforts to maintain a high-performance workforce. High-potential employees are the future leaders in the organization. When we understand the level of turnover and reasons for losing high-potential employees, we can pursue strategies (i.e. developmental activities, career progression paths) to retain our high-potential employees.

An HR leader is very collaborative with staff members and very generous in giving praise. The leader doesn't ask staff about their lives outside work and talk about her own personal life. She does not like conflict or drama but is always polite and respectful. How would you assess this HR leader's team leadership? A) The leader is not providing sufficient direction. Eventually, the team will become unproductive and possibly dysfunctional. B) The team may function adequately but may not have a sense of trust in the leader that is useful in challenging times. C) The team will develop a deep loyalty to the leader, based on her unfailing professionalism and lack of intrusiveness. D) Because the leader keeps the focus on work, there will be fewer performance problems and team conflicts.

B) The team may function adequately but may not have a sense of trust in the leader that is useful in challenging times. * Effective leaders build trust among those they work with, a sense of confidence that the leader will behave in a certain way based on shared values and interests. This requires communicating about things other than tasks at hand. By avoiding this type of communication, the leader has not conveyed much information about herself or much about her values other than politeness and dislike of drama. She may be a good manager, but she has not yet become a leader.

What is the primary purpose of a social audit? A) To measure the organization's impact on the external environment and quantify the overall impact of its sustainability efforts B) To serve as a self-evaluation focused on understanding, measuring, and improving the organization's social performance C) To provide a solid benchmark for the financial impact of the organization's corporate social responsibility efforts D) To produce a document to convince regulators and shareholders that the company is socially responsible

B) To serve as a self-evaluation focused on understanding, measuring, and improving the organization's social performance * A social audit is a formal review of an organization's social and environmental policies and procedures that is primarily a tool for self-evaluation. It has been described by a UN agency as "a technique to understand, measure, verify, report on and to improve the social performance of the organization."

How does HR demonstrate its value and strengthen its relationships throughout the organization? A) By building stronger relationships with employees and boosting productivity and loyalty B) By being aware of other business functions' strategic objectives and plans C) By understanding the perspectives, challenges, and objectives of internal stakeholders D) By focusing on common core business functions and the way in which to help achieve their goals

C) By understanding the perspectives, challenges, and objectives of internal stakeholders * Understanding—not just awareness—allows HR professionals to identify ways in which HR processes and abilities can help other functions achieve their strategic objectives and plans and, in that way, strengthen the organization's strategic posture.

A municipality enacts certain employee benefit requirements. An organization operates in municipalities in regions all around the country. The HR director must decide how to address this situation. What legal concept does this situation represent? A) Rule of law B) Extraterritoriality C) Conflict of laws D) Difference between civil and common law

C) Conflict of laws * Conflict of laws is created when two or more jurisdictions (in this case, the municipality and any higher level of government in the country or in other countries) each have different legal requirements for the entities operating in their borders. The HR director, probably with legal counsel, must clarify which jurisdiction has control over a particular issue and adjust policies accordingly.

A multinational organization identifies a lack of global perspective in its leadership ranks. Current leadership has typically been cultivated from within, working up through positions at the main corporate office. Which action will best serve the organizational goal of developing strong global leaders? A) Require that all senior-level managers have experience managing international accounts. B) Create a mentorship program so senior leaders can assist in developing junior leaders. C) Create positions that involve managing operations abroad for leaders to rotate through on two-year assignments. D) Require that all leadership positions moving forward are filled with candidates from other multinational organizations.

C) Create positions that involve managing operations abroad for leaders to rotate through on two-year assignments. * Using long-term international assignments is an effective practice for developing global business leaders. Requiring that all senior-level managers have managed international accounts may help address the issue but does not do enough to ensure that the leaders have truly developed a global perspective. A mentorship program may assist with other areas of leadership development, but, with no current global leaders to act as mentors, this would be ineffective at addressing the issue. Simply hiring candidates from other multinational corporations does not ensure that those employees are capable global leaders.

What is the term for the concept that laws are to be enforced only through accepted, codified procedures? A) Rule of law B) Conflict of law C) Due process D) Jurisdiction

C) Due process * Under due process, a system does not act arbitrarily. It treats every individual according to the same terms and conditions of the relevant law. * Due Process- fair treatment through the normal judicial system, especially as a citizen's entitlement. * Codified procedures - refers to the rules of a society that has been collected and recorded for the purpose of establishing civil order

What is a critical requirement of a business intelligence portal? A) Engagement of the user through graphic elements B) Access to a wide array of analytical tools C) Ease in accessing data with interest and usefulness D) Integration of external databases

C) Ease in accessing data with interest and usefulness * An effective business intelligence portal is easy to use. One of the ways this is accomplished is by customizing a user's view to show the information and tools the user most commonly requires. Rather than seeing the entire array of applications or analytical tools on a system, the user sees a relevant selection. Engagement is good, but not as critical as logic and convenience. Not all users will require access to external databases.

Which action is characteristic of constructive discipline? A) Employers must deliver written notice at each step. B) Employees may be discharged without warning. C) Employees are given multiple opportunities to modify their behavior. D) Dissimilar subsequent infractions must be treated individually.

C) Employees are given multiple opportunities to modify their behavior. * Constructive discipline takes a step approach that allows employees one or more chances to change their behavior. Systems may vary in terms of using written or oral warnings and in the number of steps and the time windows for each step according to a number of factors, including the severity of the behavior, as long as similar cases are handled in a consistent manner. There is no rule for treating subsequent infractions. In some organizations, the offense triggers the next disciplinary step even if the offense is different from the initial issue.

A new knowledge management effort has lost traction. Senior employees are not motivated to train their replacements, and the younger employees resent not getting the training. Which potential solution should HR recommend to help both groups gain better understanding and demonstrate empathy with one other? A) Tying compensation to knowledge management outcomes B) Punishing senior staff with negative performance review ratings C) Establishing intergenerational mentoring programs throughout the organization D) Planning an off-site meeting to uncover all issues

C) Establishing intergenerational mentoring programs throughout the organization * Intergenerational mentoring programs will best enable better understanding and empathy between generations. Both generations can learn from each other and invest energy in each other's success.

The HR director has just seen the data from the function's first internal customer satisfaction survey in ten years. Customers complain about hiring times they consider unreasonable. At an HR meeting, staff defends itself by arguing that they address every opening quickly, offer the hiring managers a good pool of candidates, and have a high rate of employee success in positions. How should the leader of the HR function approach this customer service problem? A) Compare the present HR head count with staffing levels from ten years ago. B) Defend the HR department to the CEO, pointing out its successful metrics. C) Examine the recruiting and hiring process for inefficiencies. D) Develop a service level agreement with the hiring managers as a commitment to improve service.

C) Examine the recruiting and hiring process for inefficiencies. * The HR staff is doing its job of providing qualified candidates but not quickly enough. The first step is to map the process being used to determine if it can be made more efficient by using technology and/or giving staff more decision-making authority. Customer service is a metric as well as recruiting ratios or early attrition rates, and HR must address this gap in customer service. The staff's performance does not indicate that it is overwhelmed with work; jobs are opened quickly and quality candidates are being provided. A service level agreement is a good idea but not until HR has uncovered ways to improve its level of customer service.

Corporate leadership has requested that HR develop an employee engagement strategy for a newly acquired division, and HR follows the model for strategic planning. Which phase in strategic planning will focus on gathering information to create this strategy? A) Development B) Evaluation C) Formulation D) Implementation

C) Formulation * The first phase in the strategic planning process is strategy formulation, which is followed by strategy development. The other choices are the third and fourth phases in strategic planning.

A new director has arrived to manage an HR department that became dysfunctional under the previous director. What should the new director do first? A) Meet individually with all employees and clarify her expectations for their performance and interactions. B) Assemble the entire department and describe the new culture that she wants to create. C) Talk to members of the department separately to try to understand what the department needs now. D) At the first meeting, create a competition based on customer service to motivate the separate teams.

C) Talk to members of the department separately to try to understand what the department needs now. * Since the HR director is new to the department, she needs to take time and learn more about the staff's needs, individually and as a group. She can then provide the type of leadership the group needs.

A board of directors is engaged in very tough contract negotiations with the organization's current CEO. The board's head comes to the VP of HR and asks for help. What would be the best support HR could provide? A) Advise the board not to offer more than a certain percentage increase in compensation. B) Survey other senior leaders to see if they know any issues that could be used as negotiating leverage. C) Give the board an accurate picture of the costs and opportunities associated with replacing the CEO. D) Encourage the board to practice principled negotiations even if the CEO chooses brinkmanship tactics.

C) Give the board an accurate picture of the costs and opportunities associated with replacing the CEO. * It will be useful for the board to have a BATNA, or "best alternative to a negotiated agreement," in their negotiations with the CEO. The VP of HR can help create this by presenting the board with more information about current and comparable CEO compensation ranges and the state of the talent pool. Getting information from other VPs may be unethical and would weaken relationships in the end. Practicing principled negotiation is good general advice but not helpful in this situation. Setting a firm limit without knowing one's alternatives may be risky.

What is the value of a balanced scorecard? A) Compares company's processes and performance metrics to industry standards B) Demonstrates how effectively a company is achieving key business objectives C) Helps support a clear line of sight from strategic goals to strategic performance D) Assesses whether a company is on track to achieve its defined business goals

C) Helps support a clear line of sight from strategic goals to strategic performance * Balanced scorecards help support a clear line of sight from strategic goals to strategic performance.

Which is the most significant reason that information technology departments are seen as strategic partners in an organization? A) Organizations need accurate reports on which to base decisions. B) Technology contractors do not understand the organization's business. C) Information technology provides a competitive advantage for an employer. D) The department trains other employees and contractors on advanced computer skills.

C) Information technology provides a competitive advantage for an employer. * IT departments have become more strategic because organizations increasingly view computer systems and applications as a competitive advantage in the marketplace. For example, airline reservation systems are essential to the effective operation of the business. * Competitive advantage means a condition which enables a company to operate in a more efficient or otherwise higher-quality manner than the companies it competes with, and which results in benefits accruing to that company.

Which best describes a global company with a polycentric approach to globalization? A) Global policies are adopted and implemented at local-country levels. B) Cultural norms and compensation are reviewed and implemented by headquarters. C) Local cultural and legal compensation norms are understood and implemented. D) Headquarters compensation policies are modified for legal compliance only.

C) Local cultural and legal compensation norms are understood and implemented. * In the polycentric orientation, entities are allowed a large measure of independence as long as they are profitable and may adapt to local culture and legal compliance as needed.

An organization has identified several areas in which productivity is not meeting goals. The HR director is charged with finding a way to help increase productivity in the identified areas. After examining employee surveys from the underperforming areas, the HR director concludes that management is performing adequately but teams are still not working together as well as needed. The HR director also examines compensation in the area to see if below-average base pay is causing employees to lack motivation, but she finds that base salaries are competitive in the area. Which is the best option for the HR director to use to increase productivity? A) Replace a portion of the underperforming teams with external candidates. B) Reorganize the department to mix up underperforming teams. C) Offer group incentive pay based on group performance targets. D) Offer individual incentive pay based on individual performance targets.

C) Offer group incentive pay based on group performance targets. * Group incentive pay is the best option. Knowing that the issue does not stem from management performance or issues with base pay, HR should look to incentivize the groups to perform better together. Offering individual pay may exacerbate issues with teamwork, as individuals may work against other members of the team to earn a bonus. Reorganizing or replacing team members are both larger undertakings that may be less efficient at handling the issues than offering a group incentive.

HR must create training so employees know where to find information and guidance on how to respond to compliance and ethical dilemmas. Which training approach will be most effective? A) Script an engaging play and hire traveling actors to illustrate which rules to follow when on international assignments. B) Have employees prepare questions in advance and hire a local expert from the industry to conduct a question-and-answer session. C) Present challenging ethical situations and enable employees to work together to analyze their responses. D) Create a cheat sheet of typical ethical and compliance problems with appropriate responses for each situation.

C) Present challenging ethical situations and enable employees to work together to analyze their responses. * Having the employees work together to analyze their responses will require them to research answers. This will help employees anticipate problems and find answers.

A manager leads a team that is highly diverse. Two team members frequently argue vigorously in meetings about causes and solutions to problems. The manager thinks these exchanges are fueled by ethnic differences. What should the team leader do? A) Respect their cultural differences and treat these disagreements as task conflicts. B) Meet with the two members offline and apply conflict resolution techniques. C) Schedule a workshop to focus on improving cultural awareness and communication skills. D) Reassign one of the problematic team members to another team. The constant conflict is hurting the team.

C) Schedule a workshop to focus on improving cultural awareness and communication skills. * There is evidence that the benefits of a diverse team outweigh the work that the leader and the team may have to invest in learning how to work together. This can be done by improving global perspective (understanding other's cultural perspectives) and communicating more effectively. The conflicts should be addressed because they can be affecting team productivity. Dealing with the individual problem does not address other problems that may be affecting this diverse team. Transferring one team member does not solve the problem.

An HR director has joined a technology company that has a flat structure and relies on highly focused project teams with highly competent members who work in a collaborative and supportive way. The HR department reflects this structure and culture. The HR director came from a manufacturing business known for its ability to standardize processes for greater efficiency. The HR director was very successful in his previous organization but is struggling to connect with and lead his new HR team. What might explain his difficulty? A) The director has not received sufficient support from the company's senior leadership. B) The organization's culture resists outsiders, and the director must be more patient. C) The director has always used legitimate power to lead his teams, and this team doesn't see leadership in this way. D) It is apparent to the HR team that the HR director lacks technical expertise (expert power) in the organization's business.

C) The director has always used legitimate power to lead his teams, and this team doesn't see leadership in this way. * The scenario suggests that the problem may be a leadership style that was effective in one organizational culture but ineffective in another. In the manufacturing environment known for standardization, the leader may rely on legitimate power that comes from position and title. In the new organization, teams may respond better if leaders use referent power, acknowledging the team members' preferences for collaborative and autonomous conditions.

A firm discovers that a parts supply vendor does not provide sanitary facilities for factory workers. What should HR recommend the organization do to address this situation? A) The organization should provide the facilities for the vendor's employees if the vendor does not. B) The organization can ignore the concern, as they have no responsibility in regard to the vendor. C) The organization should request that the vendor provide sanitary facilities and begin looking for another vendor. D) The organization should comply with local regulations to address this concern.

C) The organization should request that the vendor provide sanitary facilities and begin looking for another vendor. * This is an ethical responsibility that transcends legal requirements and local norms/practices. If the contract does not require these minimum work conditions, the firm can request them and make clear that humane workplace conditions constitute a criterion for future contracts.

An organization is faced with the challenge of offering robust benefits to retain top talent while staying within budget. How does a benefit needs assessment support addressing this concern? A) Helping the organization address employee financial or health problems impacting productivity B) Determining employee willingness to pay an increased portion of the plan coverage C) Understanding what benefits have a positive impact on attracting, motivating, and retaining talent D) Helping to align the benefits strategy with the organizational branding initiative

C) Understanding what benefits have a positive impact on attracting, motivating, and retaining talent * Completing a benefits needs assessment and analyzing the corresponding data allows the organization to refine benefit offerings so the package is affordable yet valued by employees.

An HR director is leading a team through a project management process under an unusually tight deadline. In order to successfully complete the project in time, which action should the HR director take? A) Strategically align the project objectives to ensure that no time is wasted on unneeded tasks. B) Use lean project management to focus strongly on the intended value of the project. C) Use critical path analysis to develop a project schedule that fits the time constraints. D) Establish strong and efficient communication channels to avoid unnecessary delays.

C) Use critical path analysis to develop a project schedule that fits the time constraints. * By using critical path analysis, the HR director will be able to find the most efficient way to complete the project. This can help ensure that the project deadline will be met. Strategically aligning project objectives and establishing strong communication channels may help complete the project more efficiently but will not necessarily allow the HR director to determine if the deadline will be met. Lean project management is a specialized approach, and it may not be the most time-efficient option depending on the scope and focus of the project.

Which is an accurate description of an unfair labor practice? A) Violation of international labor law by employers B) Complaint about a work condition in a unionized workplace C) Violation of a country's labor laws by employees, employers, or unions D) Work stoppage conducted as secondary support for a separate striking union

C) Violation of a country's labor laws by employees, employers, or unions * An unfair labor practice is a violation of a country's (not international) labor laws. The practice can be committed by employees, employers, and unions. A complaint about a work condition is a grievance. A sympathy strike is considered one type of unfair labor practice in many countries; it is not a complete description of the term.

When is an authoritative approach to leadership most likely to be effective? A) When various catastrophes threaten a team's ability to meet its goal on schedule B) When the leader is new to the organization and its problems and needs to establish trust C) When the team is willing to work toward a goal but is not yet sure of how to get there D) When the team shows signs of resisting the change the leader is trying to introduce

C) When the team is willing to work toward a goal but is not yet sure of how to get there * An authoritative leader leads by providing a bold vision and inviting team members to follow and join in achieving a goal. This is effective when the team is motivated and skilled but does not yet have direction.

An organization launched its first diversity and inclusion initiative five years ago. Recently, there has been an increase in younger people resigning. In exit interviews, these employees say that they feel they were ignored by management. Which kind of data should HR collect to help measure inclusion? A) Representation of each demographic group. B) Customer feedback about corporate branding. C) Employees' participation on work-related committees. D) Actual treatment of employees versus perception.

D) Actual treatment of employees versus perception. * To help measure inclusion, HR should collect data reflecting how the departing employees were treated and how they feel they were treated by management. This requires both objective (observable and measurable data ("signs") obtained through observation, physical examination, and laboratory and diagnostic testing) and subjective ( information from the employees point of view including feelings, perceptions, and concerns obtained through interviews) data.

How would Trompenaars and Hampden-Turner label a culture in which individuals express their emotions freely? A) External B) Particular C) Synchronic D) Affective

D) Affective * In an affective culture, people feel free to express their emotions; the opposite of an affective culture is a neutral culture. A particular culture is flexible and pragmatic, comfortable with ambiguity. A synchronic culture believes that the past and the present are as important as the future—possibly more important. Schedules can be subordinated to tending to a relationship or participating in a ritual. An external culture is fatalistic. People can adapt to nature; they cannot dominate it.

To enhance productivity, an organization has opted to streamline its product line to the ten most profitable products. It will sell four units focused on other product lines. How can HR most effectively contribute to a successful restructuring? A) Conduct 360-degree and multisource feedback assessments to determine individual performance expectations for the remaining employees. B) Train all managers of divested units on how to help employees update their online professional profiles to secure new jobs. C) Conduct a comprehensive salary review and suggest which positions to eliminate based on market value. D) Analyze the skills and functions of divested units to identify possible gaps and determine the appropriate course of action.

D) Analyze the skills and functions of divested units to identify possible gaps and determine the appropriate course of action. * Identifying potential gaps that may have been created in divesting the units and determining what to do about them will contribute most effectively to a successful restructuring. Managers might not be the best qualified to help with outplacement. Market value isn't the primary consideration for retaining employees. Individual performance expectations can be established as roles evolve.

An organization in a mature industry has not been meeting its revenue objectives and is losing market share to competitors. What adjustment can an organization make to gain a competitive advantage? A) Begin educating employees on the importance of maintaining a competitive advantage. B) Improve market share by finding new customers in different market niches. C) Introduce a change in the structure of the organization to eliminate unnecessary hierarchy. D) Assess the current strategic fit in the organization to identify needed core competencies.

D) Assess the current strategic fit in the organization to identify needed core competencies. * An organization in a mature industry has not been meeting its revenue objectives and is losing market share to competitors. What adjustment can an organization make to gain a competitive advantage?

An organization's IT and HR functions both report a gender imbalance. How should the HR director approach this situation? A) By reporting that these retention issues are probably related to the glass ceiling that exists in the organization B) By expanding the focus of benefits to include family-friendly options in order to increase retention in these departments C) By surveying these populations to understand why each gender is not applying for jobs in the underrepresented departments D) By analyzing representation, hiring, and retention as well as labor market data for these functions to benchmark gaps

D) By analyzing representation, hiring, and retention as well as labor market data for these functions to benchmark gaps * Different divisions within an organization may face very different staffing issues regarding gender. However, it is important to analyze representation, retention, and hiring to determine what is occurring. Looking at labor market data for percentages of women in IT positions, for example, could help determine what is available for hiring within the local labor market. You cannot determine if this is a glass ceiling issue without analyzing further, and a survey will not give you the data you need for a strategic plan.

In a medium-sized organization, HR is responsible for the creation of training for all new hires. Surveys indicate that employees that have gone through recently developed training programs felt as though the training was not impactful and did not help them prepare for their new position. They felt that the training was unfocused and poorly presented by the instructor. Which best describes how HR should attempt to ensure that new training is useful to new hires? A) Avoid hiring candidates who have bad experiences and previous learning programs, so no one has any bias against the current programs. B) Hire new facilitators with experience presenting programs to large groups of highly skilled, experienced individuals. C) Scrap the current programs and begin with an entirely new set of training, developed by the ADDIE process. D) Conduct pilot programs, so that feedback can be gathered and presentations can be refined before officially launching the program.

D) Conduct pilot programs, so that feedback can be gathered and presentations can be refined before officially launching the program. * The best option is to conduct pilot programs prior to launch. Conducting a pilot will allow HR to verify whether the content and design of the class are adequately meeting objectives, as well as identify if there are better ways for the instructor to present the information. Hiring new facilitators may not be necessary; and previous experience teaching highly skilled, experienced individuals may not be indicative of the ability to train new hires, who may be relatively unskilled and inexperienced. Scrapping current programs and beginning again may be required, but without proper evaluation and resource committment, immediately selecting that option could result in unnecessary work and lengthy delays delivering crucial training. Training should be designed to overcome obstacles such as bad previous experiences, and hiring decisions should not be made with that in mind.

An organization is struggling to attract and retain top talent. The organization has raised compensation to levels that are above average compared to the market but has not noticed an appreciable increase in hiring success. Which action should the organization take next to address the issue? A) Increase the signing bonus for positions that require top-level talent. B) Invest in internal talent development programs to cultivate in-house candidates. C) Rebrand the organization to cater to younger generations' preferences. D) Create an employee value proposition to attract top-level candidates.

D) Create an employee value proposition to attract top-level candidates. * Creating an employee value proposition is the best course of action. Highly qualified individuals may have their pick of organizations to move to, so it is important to advertise reasons that candidates should choose the organization over other options, including reasons unrelated to remuneration. Catering to younger generations doesn't necessarily address the issue of attracting highly qualified individuals. Investing in internal talent development programs may help lessen the need to look outside of the organization to fill important positions but does not necessarily help attract top talent, especially in the short term. With the compensation levels being above average already, it is unlikely that an increased signing bonus will achieve the desired result.

Which is an example of a risk management strategy of mitigation? A) A company investigates a claim and decides to discharge a manager suspected of sexual harassment. B) A company purchases ransom and recovery insurance policies for all of its global assignees. C) Senior management decides that it will tolerate a certain amount of risk incurred from pilferage. D) Department leaders are directed to train at least two employees to perform critical leadership tasks.

D) Department leaders are directed to train at least two employees to perform critical leadership tasks. * Training employees to perform critical leadership tasks does not prevent the risk of a leader being unavailable, but it does lessen the possible impact by having subordinates ready to continue essential processes. Tolerating a risk applies a risk acceptance strategy, and insurance refelcts risk sharing. Discharging the manager prevents future incidents by removing the cause (the manager). * Mitigation - the action of reducing the severity, seriousness, or painfulness of something.

At least once a year, the board and the president meet to determine which risks are emerging and which have come off the list. Which person is in the best position to facilitate this process of revisiting and updating the risk matrix? A) President or chief executive officer who meets regularly with the board and is the manager of the senior administrators B) Senior auditor who may be aware of the organization's lapses in policies and procedures C) Chief human resources officer who is already responsible for personnel information and policies D) Designated risk manager or owner of the risk management process who is supported by the board

D) Designated risk manager or owner of the risk management process who is supported by the board * The designated chief risk officer would be best to facilitate the process of risk assessment and updates. The CHRO may be the point of contact when there is no chief risk officer; however, there may be conflicting responsibilities of maintaining the confidentiality of personnel information and the need to share such information for risk management purposes.

The new vice president of HR is tasked with developing a total rewards strategy in her organization. How should the VP begin the process? A) Conduct a workforce needs assessment. B) Present a business case to senior leadership. C) Create a pay scale matrix with job grades. D) Develop a compensation philosophy.

D) Develop a compensation philosophy. * A compensation philosophy is a short (but broad) statement documenting the organization's guiding principles and core values about employee compensation. Ideally, development of the compensation philosophy should precede development of the total rewards strategy, because the philosophy essentially serves as a mission statement that informs the total rewards strategy.

A female Millennial programmer works in the IT department of an organization's Mumbai office. In terms of the diversity dimensions model, what is most important for global HR to understand about this employee? A) Gender has become the critical diversity dimension in today's global market. B) In a global organization, cultural diversity offers the greatest strategic advantage. C) Organizational dimensions are ultimately the most significant in employee relations. D) Each individual is multidimensional, and each diversity dimension influences the others.

D) Each individual is multidimensional, and each diversity dimension influences the others. * Gardenswartz and Rowe's four-layer model of diversity dimensions offers a framework for understanding the range and complexity of the issue of diversity. It underscores the fact that we are all multidimensional and that none of the many ways that can be used to "identify" us (or, more importantly, by which we choose to identify ourselves) tells the whole story.

In a risk matrix, which possible events are considered most significant to an organization? A) Not currently controlled and easiest to control B) Rapid onset and high impact C) Not currently controlled and expensive to control D) High probability of occurrence and high impact

D) High probability of occurrence and high impact * The most significant risks in a risk matrix are in the quadrant formed by highest impact and greatest probability of occurrence. Rapid onset is a legitimate issue in risk analysis, but it is not included in a conventional risk matrix.

Which is a key task in the implementation stage in CSR strategy? A) Define the extent and nature of HR's leadership role. B) Measure and evaluate initial results. C) Establish a guiding sustainability department. D) Set priorities and objectives.

D) Set priorities and objectives. * The key tasks at this stage are to set strategy and priorities and objectives (including how intermediate tactical steps will lead to long-term objectives) and to implement the action plan.

Obtaining full executive-level commitment is critical to any comprehensive diversity and inclusion initiative. Which information should be included in a business case to gain that commitment? A) Serious regulatory compliance issues the organization will face without a diversity initiative B) Comprehensive information from industry competitors who have such an initiative in place C) Mandatory time frames and budgets that will enable achievement of goals and objectives D) How this strategy plays a critical role in achieving the organization's core business goals

D) How this strategy plays a critical role in achieving the organization's core business goals * Commitment to diversity and inclusion efforts can be gained at an organization's highest level only if it can be demonstrated that diversity and inclusion play a critical role in achieving core business goals. A diversity and inclusion advocate must delve beyond general truths about the benefits of broadened perspectives and diversity of thought to create a business case linked specifically to the organization's unique mission, vision, and business objectives.

The current HR structural model in a high-growth organization with multiple business units has resulted in HR talent management processes that are inconsistent, strain budgets, and produce poor-quality data. What is the most significant benefit the organization can expect from using a shared services model with a designated center that specializes in talent management? A) Stronger employer brand to leverage in recruiting B) Reduced HR costs at an organizational level C) Increased use of career development offerings D) Integrated processes across the organization

D) Integrated processes across the organization * A shared services center (sometimes referred to as a center of excellence) that specializes in talent management could be located in one unit, and the other HR departments could use this resource to perform tasks related to talent management. The most important benefit to the organization is that talent management processes will be integrated and therefore more consistent across the organization. The plan would not necessarily reduce costs, but it could use the budget more wisely by investing in technology that recognizes the interdependencies between resourcing, performance, learning, succession, and rewards. The effect on the employer brand and on employee use of career development options would depend less on how talent management is delivered and more on the quality of the offerings and supporting communication. * Integrated - to form, coordinate, or blend into a functioning or unified whole : unite

Which is most likely to occur in a company with a geocentric approach to globalization? A) Headquarters compensation policies are modified for local application only when it is required by local laws. B) Important cultural differences are overlooked as headquarters compensation policies are adjusted for local application. C) Individual regions are given full autonomy in the development of a compensation and benefits strategy. D) Local cultural and legal compensation norms are taken into account in the administration of a cohesive global strategy.

D) Local cultural and legal compensation norms are taken into account in the administration of a cohesive global strategy. * In a geocentric organization, an international company is seen as a single global business, with management talent coming from any location in the enterprise. The strategic plan is global in orientation, while the need to balance global strategy with local cultures and regulations is well understood.

After careful research, a company decides to expand its services into a new, growing market. What is most likely to occur as result of this expansion? A) Better work/life balance B) Labor fluctuations C) Market disruption D) New organizational structure

D) New organizational structure * Organizational structure refers to the way in which work groups are related. Organizational interventions are required when an organization has changed its competitive strategies and needs to develop new skills and traits—for example, skills needed to respond to market changes quickly. The organizational design must be focused in a new direction. New organizational structures often accompany organizational growth based on new needs.

In the sender-receiver communications model, what is it called when things get in the way of the communication exchange? A) Poor listening B) Blocking C) Lack of attention D) Noise

D) Noise * Things that get in the way of the communication exchange are called "noise."

Based on the organization's new strategic plan, the HR business plan calls for implementing a new team-building course. The HR function, however, is unable to use internal instructional designers due to prior project commitments. What should the HR manager do? A) Add permanent HR staff. B) Revise the business plan. C) Rearrange project commitments. D) Outsource the project.

D) Outsource the project. * Outsourcing the project would be appropriate in this case, because it will not decrease the function's expertise, nor will it involve outsourcing a key strategic task. The business plan should support the organization's strategy, and rearranging or delaying other commitments is not necessary since outsourcing is a legitimate option. Adding permanent staff for a temporary situation is not appropriate.

An organization is extremely risk-averse, and its technology policies aim at retaining the greatest degree of physical and legal control. Which option for acquiring software offers the most control to the organization? A) Software as a subscription hosted on the public cloud. B) Perpetual license software hosted on private cloud servers. C) Subscription software hosted on private cloud servers. D) Proprietary software hosted on the organization's on-site servers.

D) Proprietary software hosted on the organization's on-site servers. * The organization owns proprietary software outright, and hosting it on site on the organization's own servers allows the organization to maintain physical and logical security levels to the degree it finds necessary. * Risk-averse means disinclined or reluctant to take risks.

As part of an organization's strategy to highlight the full value of what it offers to employees, which is the best tactic a total rewards manager should consider? A) For transparency in pay, make all salary ranges public. B) Communicate how much health insurance costs the employer. C) Send consistent messages to employees regarding their wages. D) Provide an individualized total compensation statement to employees.

D) Provide an individualized total compensation statement to employees. * Individualized total compensation statements show the total value of the base pay, incentives, and benefits package so employees can clearly see the value they receive in the total compensation package.

An HR manager is negotiating a new contract with a recruiter. The HR manager has a specific budget and is responsible to management for the use of this budget and for meeting organizational diversity goals. The HR manager also has demanding internal clients who do not understand it when an open position is not filled promptly. In the past, HR has always worked with a designated liaison, but the recruiter does not want to commit to that. In this scenario, what would be considered a "want" rather than a "need"? A) Diverse candidates B) Performance data C) Proven capacity D) Single liaison

D) Single liaison * The scenario suggests that time to fill is critical, so the recruiter's capacity to respond quickly to requisitions would be important. Since management requires performance reports and diversity, HR needs data from the recruiter that can be used to measure HR performance and a diverse pool of applicants. Of the items listed, the issue of a single contact person or liaison would be a negotiable "want." * Liaison - a relationship, link between people who aids communication.

A company announces that it intends to capture another 20% of market share by opening ten more stores within three years in key locations. What is being communicated? A) Mission statement B) Organizational vision C) External opportunity D) Strategic objective

D) Strategic objective * A strategic objective outlines specific, time-based results that an organization seeks to achieve in pursuing its strategy.

Two team members continually disagree about project decisions impacting work duties and tasks. The team leader meets with the employee relations director to seek advice on the best course of action to resolve this situation. Which is the best conflict management approach for the ER director to recommend? A) Schedule the employees to meet with the ER director, who will arbitrate a resolution for them. B) Have each employee document all disagreements in writing and submit them to the team leader for resolution. C) Advise the employees that these disagreements are disruptive to productivity and they must stop immediately. D) Suggest that the team leader meet with both employees and mediate a mutually acceptable solution.

D) Suggest that the team leader meet with both employees and mediate a mutually acceptable solution. * It's important to reach a lasting resolution to this conflict since it may damage team productivity. The ER director will recommend collaboration, a conflict resolution technique that encourages both sides to share their objectives and find a solution that satisfies both sides' objectives.

What are the four areas that need to be examined during a workforce analysis? A) Current state analysis, future analysis, discrepancy analysis, output analysis B) Recruitment analysis, training analysis, performance analysis, engagement analysis C) Cost analysis, utility analysis, market analysis, human capital analysis D) Supply analysis, demand analysis, gap analysis, solution analysis

D) Supply analysis, demand analysis, gap analysis, solution analysis * Supply analysis, demand analysis, and gap analysis can be combined to form a current workforce profile that facilitates formulating solutions for the future. * Workforce Analysis - is a study that looks into the make-up of your labor pool to identify information that will help you plan for future Human Capital needs.

The head of marketing wants to discuss with HR a puzzling performance evaluation for one of the country marketing managers. The country manager completed a non-anonymous 360-degree evaluation. Feedback from direct reports in the manager's country were very positive, but feedback from two of the manager's superiors (a regional manager from a different country and an assistant VP in the headquarters or home country) were much weaker. They particularly commented on communication skills and leadership ability. How should HR advise the head of marketing? A) Avoid using 360-degree performance evaluations because this is a global company. B) Weight the perspective of the headquarters personnel more heavily in these multi-perspective assessments. C) Discuss mentoring advantages and opportunities with the country manager to address these issues. D) Talk to the regional manager and assistant VP to understand better the reasons for their scores.

D) Talk to the regional manager and assistant VP to understand better the reasons for their scores. * It is possible that cultural differences could be affecting the reactions of the colleagues who do not share the country manager's culture, especially since the assessments from the manager's fellow countrymen are positive. It will help to understand what deficiencies in communication and leadership the regional manager and assistant VP are referring to and assess whether these individuals may be too ethnocentric in their definitions of a good communicator and leader.