SHRM Workplace

Which best defines the concept of moral hazard? A leader demonstrates poor ethical behavior, leading to poor choices by employees. Intending to behave ethically, an organization violates employment laws or regulations. An organization decides to behave ethically, even though this means a financial loss. A person engages in risky behavior knowing that someone else will absorb any losses.

A person engages in risky behavior knowing that someone else will absorb any losses. Moral hazard exists when someone takes risks because he or she will not be affected by losses or damages that occur as a result.

How does the issue of allegiance in global assignments affect the processes of global assignment selection and assignee management? A priority should be placed on the support needed for assignee's unique needs. High levels of allegiance can create risks of noncompliance with local laws. Allegiance to the home or host country should not affect selection of a global assignee. Greater attention should be paid to the logistics of the move.

A priority should be placed on the support needed for assignee's unique needs. A global assignee may feel allegiance to the home country or to the host country, depending on the individual and the circumstances. This can affect the ease of the transition into a host country's culture and processes and of the assignee's return to the home country. It does not affect logistics, but it can indicate which candidates are likely to be more successful in global assignments. An employee who has a history of being compliant will probably be aware of and respect the need for compliance in different countries.

What is a good example of an upside risk? A technician proves highly skilled, invaluable, and irreplaceable. Union demands for wages, benefits, and work conditions are unrealistic. A team finishes its project two weeks ahead of the schedule. An organization is a vendor's first major customer for a leading-edge technology system.

A team finishes its project two weeks ahead of the schedule. An upside risk is an opportunity that arises out of uncertainty about outcomes. Completion date is uncertain, but early project completion is an opportunity: an uncertainty that has a positive outcome.

Several employees were hurt in an accident in the manufacturing department. To evaluate the effectiveness of the organization's risk controls, HR conducted a meeting with the department supervisor. Which document would provide the best information for this meeting? External agency incident report Occupational health and safety checklist After-action debrief report Compliance audit

After-action debrief report An after-action report examines what happened, why it happened, what was done at the time, and what could have been done better. The incident report, compliance audit, and OSHA checklist document only incidents, their frequency, and, in some situations, what was done; no evaluation is made of the effectiveness of the organization's existing risk controls.

A CEO assigns employees to participate in fund-raising for a nonprofit school for students with learning disabilities. The company provides time off and covers the employees' expenses. Employee contributions and school accomplishments are communicated in newsletters and at annual meetings. How could this attempt at community involvement be improved? Allow employees more voice in choosing the community involvement partner. Provide volunteers with additional training in community work. Avoid turning the involvement into personal gain through publicizing it. Choose another community partner less involved in advocacy.

Allow employees more voice in choosing the community involvement partner. Although the cause may be worthy, it would be better if employees were more involved in choosing a partner and project rather than being assigned to one by the organization's leader.

What is meant by the term "residual risk"? Amount of risk that is found in an organization's industry Amount of uncertainty remaining after all risk management efforts have been made Risk that an organization has decided not to attempt to manage Risk levels that lie above an organization's threshold for risk tolerance

Amount of uncertainty remaining after all risk management efforts have been made Residual risk is the amount of uncertainty that remains after all possible management strategies have been exhausted.

Which employee is considered a globalist? A contract employee engaged for a single international assignment. An employee hired locally to work for a global organization. An employee who takes long-term assignments (more than one year) outside the home country. An employee who moves from one international assignment to another.

An employee who moves from one international assignment to another. Globalists spend their entire careers in international assignments, moving from one locale to another. Globalist: Spend their entire career on international assignments Local Hires: Hired locally in subsidiary companies Short-Term assignees: On assignments for less than a year but more than a few weeks International assignees: Traditional expatriates on full relocation Commuters: Travels across countries a lot Just-in-time expatriates: Adhoc project or contract workers hired for a single assignment

Which best describes a global organization? An organization with operations in both developed and emerging economies with established cultural diversity to achieve success An organization whose processes, actions, and decisions are firmly rooted in a carefully conceived global strategy An organization that is grossing more than $1 million and doing business in more than two countries A large multinational corporation with global subsidiaries, vast resources, and a network of mobile global subject matter experts

An organization whose processes, actions, and decisions are firmly rooted in a carefully conceived global strategy Because of technologies and the growing ease of doing business across borders, a global organization is no longer defined by its size or physical presence in multiple countries but by its global strategy.

Which stage of the global assignment process should criteria for the ideal expatriate candidate be defined? Management and assignee decision Assessment and selection Pre-departure preparation On assignment

Assessment and selection The criteria and standards should be defined in the assessment and selection stage. These criteria help narrow the focus for successful candidates.

How often should an organization review the components of its enterprise risk management framework? Every three years At an agreed-upon and regular interval When a new strategy is developed Only if a major incident has occurred

At an agreed-upon and regular interval Components of an organization's risk management framework should be reviewed at an agreed-upon and regular interval as well as after major incidents.

A technical recruiter receives a job description from a hiring manager. One of the requirements listed by the manager states that the position is not ideal for single parents. Which risk management strategy should the technical recruiter use to avoid similar situations in the future? Avoid the risk by training hiring managers and reviewing all job descriptions before use. Ignore the risk. It is unlikely that single parenthood will be a decisive factor for employment. Mitigate the risk by informing candidates that they have the right to information about hiring decisions. Transfer the risk by asking for legal review of this job description.

Avoid the risk by training hiring managers and reviewing all job descriptions before use. This risk can and should be avoided through training and a review process. An employer cannot ignore, mitigate (lessen), or transfer the legal obligation to avoid discrimination.

Which critical role must HR assume in light of globalization? Ensure that an organization's global strategy is not influenced by its workforce's local cultures Ensure that local management is not prejudiced by global policies Oversee workforce management policy shifts due to increased offshoring Balance an organization's global strategy with policy localization to reflect national cultures and laws

Balance an organization's global strategy with policy localization to reflect national cultures and laws In developing and implementing global strategies, global HR must balance standardization of policies influenced by the organization's values and global strategy with the need to localize these policies through programs and practices that reflect organizational and national cultures and local laws.

An organization gains many benefits from its employees volunteering in the community. How can volunteering help the employees? By building skills By increasing branding By providing time off By improving the company culture

By building skills Volunteering can allow employees to learn new skills while helping in the community. Volunteering: 1. Helps employees build skills 2. Helps company build better brand

How does the demographic dichotomy bring new attention to generational differences? By allowing for mass migration of individuals from their homeland to multiple destinations By encouraging innovation in emerging markets and importing that knowledge to developed markets By enhancing investment opportunities into equipment and organizations for a younger generation By identifying educational skills and deficits between emerging and developed economies

By identifying educational skills and deficits between emerging and developed economies In the growing demographic dichotomy, developed countries are facing an aging workforce while emerging economy workforces are much younger. Globalization has brought new attention to generational, as well as cultural, diversity.

How do the three spheres of sustainability support an effective corporate social responsibility (CSR) program? By incorporating a blend of local, regional, and global perspectives By offering an all-encompassing view of how an organization should function By limiting the measures of success to financial, earth, air, and water By allowing an organization to better focus on the community in which it operates

By offering an all-encompassing view of how an organization should function The term "sustainability" originally referred to an ecological or environmental goal. Now that focus has expanded to also consider an organization's social and economic impact (sometimes referred to as the 3Ps: people, planet, profits). Based on stakeholder demands, the three spheres attempt to provide a balanced focus to the organization's goals, objectives, and outcomes.

Leadership has requested HR to design a program to allow employees to telecommute. How will this advance the organization's sustainability? By allowing the organization to apply for SA8000 By reducing costs for the organization By allowing the organization to apply for ISO 26000 By reducing organization's carbon footprint

By reducing organization's carbon footprint There are seven areas in which HR has a role in when advancing sustainability. How people work is one of those areas; it can affect the organization's carbon footprint.

What is the relationship between corporate social responsibility (CSR) and sustainability? CSR focuses on social concerns; sustainability focuses on environmental concerns. Sustainability has completely replaced CSR. CSR encompasses sustainability. Sustainability focuses externally while CSR focuses internally.

CSR encompasses sustainability. The definition of CSR has broadened from the traditional areas of ethics, governance, corporate philanthropy, and volunteerism to include sustainability.

Which would be an accurate statement about the forces that are shaping organizations' corporate social responsibility (CSR) strategies? Technology has had a mostly negative effect on society and the environment. CSR has increased individuals' rights to privacy. CSR initiatives are seen by organizations as necessary but poor economic investments. Governments have mostly allowed organizations to take the lead on sustainability.

CSR has increased individuals' rights to privacy. Although technology has created many challenges to privacy, the social and political reactions to this threat have created many protections for individuals' rights to privacy. Technology has had a mixed effect on society and the environment. Some technology increases work hours and stress, but some can be used to increase work flexibility, such as telecommuting, or to expand access to disabled employees. Governments have taken actions that often impel organizations to respond, such as carbon taxes or environmental, workplace, and ethical regulations. Many CSR investments are net money makers, such as improvements to efficiencies. It may be hard to calculate the economic impact of an organization's reputation for CSR, but the effect on recruiting and retention has been noted.

Which responsibilities are usually charged to a safety committee? Conducting area safety inspections and evaluating hazards Facilitating formal safety training for line managers Developing and monitoring the safety reporting system Completing the paperwork required by regulators to report accidents and illnesses

Conducting area safety inspections and evaluating hazards The safety committee has ongoing responsibility for conducting area safety inspections and evaluating hazards. They also review safety programs and recommend improvements. They may direct training but do not necessarily have the responsibility to facilitate it. They do not complete regulatory forms.

Which method should HR employ to support an international assignee during their assignment? Prepare a security briefing on the assignment country Identify potential risks to the assignee and the organization Provide a country overview and information on everyday life Coordinate communication and visits to their home country

Coordinate communication and visits to their home country To support an international assignee, HR should coordinate communication and visits to the home country during the assignment period.

Which action best characterizes an organization that approaches global assignments from a strategic-systematic perspective? Approaching international assignments as noncritical short-term business expenses Decreasing attention to worldwide integration of values and technology Coordinating critical functions among the home office and foreign locations Focusing attention mainly on problems as they arise

Coordinating critical functions among the home office and foreign locations The strategic-systematic approach to global assignments, which is characterized by coordinating and controlling functions among the home office and foreign locations, is more cost-effective than the alternative tactical-reactive approach and yields much better long-term results.

Corporate Social Responsibility

Corporate Social Responsibility

Which growth strategy is commonly used to accelerate the path to globalization? Restructuring Internal expansion Creating alliances Outsourcing

Creating Alliances Alliances, partnerships, and acquisitions are all vehicles that can accelerate the path to globalization. Internal expansion and restructuring can be time-consuming as the organization adjusts. While outsourcing can be a global strategy, its general goal is to reduce costs. Outsourcing: Practice where a company transfers portions of their work to a different supplier and vendors Offshoring: Practice of relocating processes or production to another country. Mainly a cost saver, but tons of other issues like high turnover, quality control issues, language barriers, etc. Onshoring: Practice of relocation of business processes or production to a lower cost location within the same country. Nearshoring: Practice of relocation business processes or production to an external company located in a country relatively close (canada or mexico)

Which is an example of a "push" factor in globalization? Current home-country market saturation Favorable country-specific trade agreements Better labor supplies in other countries Proximity to resources and materials

Current home-country market saturation If its current market is completely saturated, offering no potential for significant growth, this may "push" an organization into efforts to globalize. Global expansion will allow the continuous growth in revenue that management and/or investors may require.

Which activity is part of the assessment and selection step of the global assignment process? Development of data-gathering instruments Cross-cultural counseling Analysis of the costs versus the benefits Preparation of the assignment plan

Development of data-gathering instruments Development of data-gathering instruments is critical because it will be used in to assess candidates according to the criteria the organization has chosen. The tools must be valid and reliable and produce consistent information for each candidate. Analysis of the costs versus the benefits occurs during the management and assignee selection step. Cross-cultural counseling is not necessary until the pre-departure preparation step.

Which option best defines risk? Negative impact an event can exert on an organization's well-being Organization's vulnerabilities from an enterprise perspective Effect of uncertainty on the ability to meet organizational objectives Quantifiable and enterprise-wide picture of organizational loss exposure

Effect of uncertainty on the ability to meet organizational objectives The ISO definition of risk is simply "the effect of uncertainty on objectives." Uncertainty can be positive or negative in its effects. The other choices emphasize negative risk or assessments of risk occurrence.

Which risk strategy is being enhanced when a global HR organization establishes enterprise-wide evacuation procedures and communication plans and creates a website that sits outside the company's firewall for easy access in the event of terrorist act? Terrorist response program Risk matrix response Business continuity plan Emergency response planning

Emergency response planning An emergency response plan describes the actions to be taken in the event of a natural disaster, emergency evacuation, terrorist attack, or any other incident that disrupts the normal work pattern. Emergency response plans tell employees what to do. The organization's easy access website is an attempt to guide employees during the chaos. Risk Matrix = is a way to analyze risk in a form of a grid in which the horizontal axis represents the probability that an event will occur and the vertical axis relates to the severity of the impact on the organization.

Which PESTLE force has caused a change to corporate branding? Economic pressures Environmental concerns Technology Political issues

Environmental concerns Environmental concerns have resulted in sustainability becoming central to corporate branding.

For an organization to be considered sustainable, what areas of practice are examined? Environmental, economic, social People, profits, environment Social, ethics, economics Environmental, social, ethics

Environmental, economic, social Environmental, economic, and social are the three spheres of sustainability.

What is the role of HR when it comes to whistleblowing? Gathering, assessing, and categorizing complaints from whistleblowers and presenting them to upper-level management during annual review cycles Working with mid-level managers to determine who is whistleblowing and seeking to ensure that the complaints are handled and withdrawn Seeking to prevent whistleblowing by any means necessary, including reassigning, retraining, or terminating employees found whistleblowing Establishing a communication process that allows direct access to upper-level decision makers and protecting whistleblowers from retaliation

Establishing a communication process that allows direct access to upper-level decision makers and protecting whistleblowers from retaliation HR should ensure that whistleblowing complaints reach upper-level management and should protect whistleblowers from retaliation by coworkers or managers. In some locations, whistleblowers are protected by law. HR should not seek to independently address whistleblowing complaints or encourage or engage in retaliation against whistleblowers.

Why is ethics an intrinsic part of a corporate social responsibility program? Ethics dictates behavioral guidelines for an organization. Ethics increases external stakeholders' influence. Ethics allows for the adherence to the letter of the law. Ethics is based on laws and regulations.

Ethics is a set of behavioral guidelines an organization expects all to follow. Compliance is based on laws and regulations and allows for adherence to the letter of the law.

To meet a safety goal, an organization provided training to employees. The number of injuries, however, has not decreased over the last three years. What should the HR training manager do?

Evaluate and adjust the training. Evaluating the training will allow the company to identify whether the issue is with the training or the people, and adjustments can be made accordingly. Developing new content or hiring an outside consultant without evaluating the training could be a waste of time and resources. Making the training mandatory doesn't help if the training is ineffective.

HR has been charged with benchmarking the organization's sustainability performance against that of its global competitors. Which resource will best help HR accomplish this? GRI Sustainability Reporting Standards ISO 26000 OECD Guidelines for Multinational Enterprises United Nations Global Compact

GRI Sustainability Reporting Standards The GRI Sustainability Reporting Standards enable meaningful and consistent comparisons of organizations' sustainability performance. GRI = Global Reporting Initiatives that has companies report on their economic, environmental, and social impacts

Which statement characterizes globalization? Developed economies play an increasingly dominant role in globalization Technology has become the single shaping force in globalization Global interconnections reached a peak in the 1980s and 1990s and have since decreased Global markets, economies, and technologies are increasingly interconnected

Global markets, economies, and technologies are increasingly interconnected The integration of markets, nation-states, and technologies is enabling individuals, corporations, and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before.

A cosmetics company that denounces animal testing as a primary part of its branding was recently reported to be working with suppliers that routinely test on animals. Which aspect of the corporate social responsibility (CSR) strategy is misaligned? Governance Compliance Social Environment

Governance An organization with good governance is transparent and accountable at each level and function. By buying from suppliers that test on animals, the organization is intentionally deceiving consumers and being opaque rather than transparent. Governance is the system that allows a company to be in the right in terms of its ethical, legal, and civil obligations

Which term describes a system of rules and processes put in place to ensure compliance with local and international laws, accounting rules, ethical norms, and environmental and social codes of conduct? Ethics Compliance Governance Rule of law

Governance Governance is the system of rules and processes an organization puts in place to ensure its compliance with local and international laws, accounting rules, ethical norms, and environmental and social codes of conduct. Good governance is the outcome of a thoughtful assessment of an enterprise's legal, ethical, and civic obligations to the communities it serves and the development of systems that support fulfillment of these obligations.

What type of system does HR help develop that puts rules and processes in place for the organization to go by? Social audit Compliance program Governance Code of conduct

Governance Governance is a system of rules and processes that ensure compliance with laws, ethical norms, and a social code of conduct. Codes of conduct and compliance are part of governance. A social audit is something you would perform to determine if you are in compliance.

Which is considered a "pull" factor in attracting organizations toward globalization? Greater strategic control Government policies Need for new markets Globalized supply chain

Greater strategic control "Pull" factors are those attractions to globalization that support what an organization wants to achieve--in this case, greater control over strategic goals. The other factors are "push" factors, ones that oblige an organization to go global to remain competitive. So Pull factors are things that are attractive Push factors are things like force you to go towards it

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

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).

The vice president of operations has asked the chief human resources officer (CHRO) to determine the risk levels across the organization's three offices. With the help of the HR team, the CHRO conducts surveys, interviews, and focus groups to collect data. During which phase of the risk management process are these activities occurring? Managing risks Analyzing risks Identifying risks Evaluating risks

Identifying risks Surveys, interviews, and focus groups are methods used to identify risks. The organization must first identify the risks so that they can be analyzed, evaluated, and then managed.

How does HR support strategic management in a global organization? Measure independently collected data, and not depend on data mining Maintain policies not defined by globalization or fundamental cultures Implement processes to increase integration and knowledge exchange Develop communication policies that maintain organizational boundaries

Implement processes to increase integration and knowledge exchange Implementing processes to increase integration and knowledge exchange achieves two goals. First, it aligns organizational values and goals and HR policies across global locations. Second, it establishes processes that promote collaboration and knowledge sharing across geographical boundaries.

At which point in the corporate social responsibility (CSR) strategic process should a global organization decide on using local leadership? Plan implementation Executive commitment Infrastructure creation Assessment

Infrastructure creation The infrastructure creation step involves creating the infrastructure that will be responsible for guiding, overseeing, administering, reviewing, and championing the CSR strategy. For a global corporation, that includes determining whether local departments, divisions, or individuals will be responsible for local efforts and how these will coordinate with global goals and initiatives.

An organization develops its products, processes, and strategy in a home country, however, they export their products to foreign countries where they also have a production facility. Which term best describes this company? Multidomestic Global International Transnational

International International organizations export their products or services to foreign countries. While they may open production facilities or service centers in those countries, the products/services, processes, and strategy are developed in the home country International: Firm exports to a different subsidiary in a different country, and the subsidiaries simply works with the policies and products of the home country Multidomestic: Organization is a decentralized portfolio of subsidiaries. (think Lyra Health) For Multidomestic, HR is often coordinating HR activities between home and host countries with the goal of consistency while remaining flexible with local law and culture. Global: The firm views the world as a single market and offer global products with little to no variation in different countries. (Think Apple) Transnational: Firm places offices down in advantageous countries. The subsidiaries can adapt, but best practices are done together.

What is the result of a geocentric approach to compensation and benefits strategy within a global organization? It helps in selecting benefits within a particular region that match the needs of the host-country location It allows the home country to exercise control over the benefit offerings in order to lower the cost of benefit administration It instills dominant beliefs and practices from the parent company to each of the host-country locations It provides a single cohesive approach that allows leaders to look at benefit offerings on a broader scale

It provides a single cohesive approach that allows leaders to look at benefit offerings on a broader scale In a geocentric organization, an international company is seen as a team, with management talent coming from any location in the enterprise. The strategic plan is to balance the global strategy with local culture and regulations. Ethnocentric: Where the Headquarters has tight control over its subsidiaries and makes all of the decisions. Polycentric: Local Subsidiaries have control over decisions and they are free to do what they want to do Regiocentric: Subsidiaries are grouped into regions (Europe, Asia, etc.) and they work collaboratively with each other but not with other regions Geocentric: All subsidiaries work together as a network. Hence Geocentric GOOD, Ethnocentric BAD

Why is cross-cultural training critical for international assignees and their families? It supports HR's duty-of-care obligations. It increases the ability to mentor. It shortens the culture shock phase. It reduces the risk of failed assignments.

It reduces the risk of failed assignments. Effective international assignments involve many practices. Cross-cultural training for assignees and their families not only reduces the risk of failed assignments but also helps to manage expectations and to facilitate adjustment and performance.

Which strategy should HR recommend to embrace diversity in the workforce at a greenfield operation? Global integration Perlmutter's orientation Local responsiveness Integrated process alignment

Local responsiveness A greenfield operation is a way for an organization to grow its market by entering a new market and building its presence from the bottom up. Since locals will understand the forces affecting diversity better than a global headquarters team, encouraging local HR to implement a diversity policy in a culturally appropriate way will be more effective.

Which best identifies the impact of cognitive barriers on risk management? Teams are rewarded for being risk-averse. Units or functions may not communicate well with each other. Leadership's example does not motivate good risk management practices. Managers perceive risks in an outdated manner.

Managers perceive risks in an outdated manner. Cognitive barriers to risk management relate to managers' tendencies to rely on older perceptions of the risks they face and the most effective ways of managing them.

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

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.

In terms of risk management, what is a risk control? System to prevent the occurrence of a risk Mechanism to collect data for reporting to management Contingency plan to be implemented in the event of a crisis 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 type of program promotes ongoing career development support, repatriation assistance, and advice for international assignees? Mentoring Counseling Coaching Training

Mentoring Mentoring programs can be very significant for the international assignee. They provide a number of benefits including the value of having an advocate and personal mentor while abroad.

A Taiwanese manufacturer for major global brands has production locations in several countries, including Vietnam, Turkey, Mexico, and the United States. What offshoring trend does this exemplify? Shift in offshoring from low-tech products such as textiles to high-tech products such as electronics Demise of offshoring by firms based in developed countries Multidirectional shift in the flow of offshoring jobs to and from developed and emerging economies First use of offshoring by multinational companies

Multidirectional shift in the flow of offshoring jobs to and from developed and emerging economies The motivations for offshoring, and, consequently, where it is taking place and which firms are adopting it as a global strategy, are changing as a result of new globalization forces, principally the shift from developed to emerging economies. The flow of offshoring jobs is now going in both directions or, rather, in many directions at once.

In pursuit of cost savings, a western European company decides to partner with an organization in central Europe. In addition to a lower cost base, the company chose this partner over a Chinese prospect because of reduced geographical, cultural, and linguistic differences. Which outsourcing arrangement does this describe? Near-shoring Best-sourcing Onshoring Offshoring

Near-shoring This is an example of near-shoring, where an organization outsources part or all of its operations to a nearby country. In this scenario, the manufacturer moves some of its operations to a lower-cost organization while maintaining geographic and cultural proximity. As such, travel distances will be less than relocating to China, and the new partner will most likely be more culturally aligned.

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

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. For CSR - organization's leaders make the biggest impact

Management decides that training supervisors to identify and prevent bullying is not necessary, and they do not fund a program budget. What does this illustrate? Poor governance Risk avoidance management strategy Organization's risk tolerance Precedence of global standardization in the organization

Organization's risk tolerance Management has decided that it is willing to accept the risk that bullying will occur and possible organizational costs. This is an example of an organization's risk tolerance, the amount of unmanaged risk that management is willing to accept. Here Risk Avoidance doesn't make sense, because risk avoidance is action that would avoid the action all together

Which primary role does HR play in supporting global strategic management? Partner to create the organization's global strategy Define strategies for local subsidiaries Create HR policies that reinforce global inclusion versus local responsiveness Ensure that subsidiaries' workforces retain their local identities

Partner to create the organization's global strategy HR can support strategic management by helping to create global strategy, aligning HR activities with it, adapting the activities to local needs, and enhancing communication between the organization and its stakeholders.

Which option best defines a contingency plan? Plan to manage identified secondary risks Plan that is activated when a risk event occurs Prioritization of risk management strategies by effectiveness Identification of responsible individual when a risk occurs

Plan that is activated when a risk event occurs A contingency plan is a protocol (predefined actions) that is activated when a risk event occurs, for example, activation of a severe weather work schedule.

What potential outcome is associated with the decision to offshore jobs from a developed country? Reduced cost savings Reduced total production costs due to robotics Faster overall time from production to the customer Political fallout

Political fallout When organizations decide to offshore jobs from developed countries, they often face political fallout due to the perception of "shipping jobs overseas" at the expense of home-country workers.

In a polycentric approach, a subsidiary's cultural norms are more likely to be understood. Local compensation and benefits policies, programs, and practices are more likely to be implemented. Regiocentric Geocentric Polycentric Ethnocentric

Polycentric In a polycentric approach, a subsidiary's cultural norms are more likely to be understood. Local compensation and benefits policies, programs, and practices are more likely to be implemented.

Which situation that leads to workplace violence can be controlled by an organization? Low employee self-esteem Unstable economy Pressure for increased productivity Domestic problems

Pressure for increased productivity Conditions causing employee frustration and anger can lead to violence. Examples include pressure for productivity, rigid management style, and layoffs.

What factors does the risk equation use to determine level of risk? Potential for secondary risk and effectiveness of strategies Source of risk and number of business processes affected Speed of onset and effectiveness of current controls Probability of occurrence and magnitude of impact

Probability of occurrence and magnitude of impact In the risk equation, the level of risk equals the probability of occurrence multiplied by the magnitude of the impact of the risk event.

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

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.

What is one thing an organization can do to help ensure a global assignment's success for both the individual and the organization? Focus on expatriation rather than repatriation. Provide well-planned, ongoing training and support. Select a candidate based on functional competence and communication skills. View assignments as an activity rather than a process.

Provide well-planned, ongoing training and support. Ongoing training and support is critical throughout the assignment, not just before. Both expatriation and repatriation require equal attention. Assignments should be viewed as a process, not an activity. All criteria, not just functional and communication skills, should be considered in candidate selection.

What is the usefulness of a key risk indicator (KRI)? Establishes greater accountability of risk control measures Identifies a global assessment of organizational exposure to risk Assists in preventing the emergence of identified risks Provides early warning of organizational risk emergence

Provides early warning of organizational risk emergence A KRI signals when risk exposure may be increasing. It can be used to identify emerging risks to the organization. KRIs monitor risk but do not prevent risks from occurring. They are not enough in themselves to create transparency and accountability.

An employee's ex-husband waits outside her place of work. When she emerges, he begins yelling. She retreats inside the building. The husband attempts to follow but is prevented by a door that locks automatically behind the employee. An HR staff member observes the incident. What action should the staff member take? Call for immediate revision of the organization's security policies. Recommend that those involved debrief the incident. Write a memo to the HR head, documenting the incident. None. The security measures worked as intended.

Recommend that those involved debrief the incident. After-action debriefs are a good way to examine the effectiveness of a specific risk response strategy, presenting an opportunity for learning and improvement.

Which change might a corporation make in the way it does business to create a sustainability sweet spot? Switching supply chain vendors to those whose more socially responsible practices slow down the delivery cycle Redesigning products so that components are made locally from recycled materials, thereby reducing production costs Altering its production facilities to use renewable energy sources (wind, solar) despite the increase in costs Reducing how much of its processes are automated in order to employ more local workers

Redesigning products so that components are made locally from recycled materials, thereby reducing production costs Sustainability sweet spots create a win-win situation in which the changed products, procedures, or processes have a positive impact on society and/or the environment but also on the organization's bottom line. A change that does social or environmental good but costs the organization may be admirable but is not a sweet spot initiative.

An assignee returning to the United States after several years in Asia says he feels like an alien at home and at work. What is the assignee experiencing? Reverse culture shock Weak cross-cultural awareness Strong technical competence Career fatigue and burnout

Reverse culture shock Upon returning to their home country, many assignees experience reverse culture shock. The organization and their home surroundings are neither what they left nor what they anticipated returning to.

A multinational corporation known for its big, premium-priced ultrasound scanners) introduces a cheaper and portable version in emerging markets. The portable scanner creates new markets in small hospitals and for immobile patients. Which globalization force does this exemplify? Hyperconnectivity Reverse innovation Demographic dichotomy Diaspora

Reverse innovation All of these choices are examples of forces shaping globalization. This scenario describes reverse innovation. Historically, multinationals innovated in developed-economy countries and sold those products in emerging-economy countries. Reverse innovation is doing just the opposite. It is about innovating for or by emerging-economy countries and bringing those products to developed countries. Hyperconnectivity: connectivity that exists in the digital world and the interaction between devices, computers and data, all of them linked through the internet. Demographic Dichotomy: the workforce in emerging economies is becoming disproportionately young, while the workforce in developed economies is rapidly aging Diaspora: the dispersion of a particular group of people from their original homeland

A mining company has had a safety program in place for over ten years. It has been effective in decreasing accidents and injuries. What should HR recommend? Review the technology used in the program to see if newer, more effective technology is now available. Leave the program as it is, since it appears to be effective. End the program and develop an entirely new program. Ten years is too long. Consider scaling the program back, since it has apparently changed employee behavior and created a safer workplace.

Review the technology used in the program to see if newer, more effective technology is now available. Changes in technology may mean that the organization could be better able to detect and deter threats. However, that doesn't mean that the organization should start from scratch with a new program. HR should work to assess the program and look for opportunities for continuous improvement.

Risk Management Section

Risk Management Section

What is secondary risk? Risk that is deemed lower in priority Risk created by a risk management tactic Risk events that occur as a result of primary risk occurrence Risk events that closely follow primary events

Risk created by a risk management tactic Secondary risk refers to risks that are created by the risk management strategy itself. Before they are implemented, strategies must be analyzed to determine if they present secondary risks.

What phase of risk management is represented in the acronym MECE, which stands for "mutually exclusive and comprehensively exhaustive"? Risk identification Risk mitigation Risk management Risk-averse

Risk identification The organization wants to be confident that all plausible risks for strategic and operational aspects of the business avoid duplication or overlapping in the identification step.

What is the appropriate role for an HR manager in an investigatory interview for a dischargeable offense? Supporter for manager/supervisor of involved department Risk manager for the organization Prosecutor presenting evidence and challenging the employee Champion of employee's perspective and position

Risk manager for the organization In this situation, the role of HR is to be proactive and manage the legal and physical safety risks to the organization. HR managers must be aware of the need to ensure due process to employees and to provide a safe work environment for all employees. HR should not take a prosecutorial or defense role; the organization should approach the situation and the evidence objectively and calmly.

The HR department is instructed to fill a critical management position as quickly as possible. Using multiple agencies will produce more candidates more quickly but will increase the cost by several times. Which critical input should HR seek before deciding how to proceed? Networking connections and employee referrals Desired applicant-to-hire ratio to indicate success Risk tolerance of the organization Job description for the ideal candidate

Risk tolerance of the organization HR needs to know how management rates the level of risk in not filling this position quickly: their risk tolerance. This will help HR decide whether the increased cost of using multiple search firms is appropriate.

An assembly operation has completely redesigned its work floor and added new machines. What would be the best way for HR to fulfill its duty of care to the operation's employees? Conduct a survey of the issue with a small sample of employees in this area Schedule a walk-through of the redesigned area during a work shift. Review the revised floor plans with the organization's insurers. Interview affected managers and supervisors about new hazards.

Schedule a walk-through of the redesigned area during a work shift. The best approach is to observe the workplace directly by conducting a walk-through. Visual inspection of both the space and the processes as they occur in the space can help HR identify new hazards created by the changes. The interview approach relies on the assessments of managers and supervisors who may not share HR's awareness of safety issues and regulations. Insurers can provide some general input about workplace safety but not specific input. As with managers and supervisors, employees may not be aware of the organization's safety obligations, and a walk-through is a more direct and complete way to gather this information than a partial survey.

Which is the best option to help an international assignee rapidly acclimate to the new country's culture? Provide the international assignee with a country overview and culture orientation. Arrange for the assignee to move in and live with a local host family for the first six months. Schedule the assignee in a series of accelerated language and customs courses. Secure a specialized third-party vendor to provide the assignee with a customized settling-in program.

Secure a specialized third-party vendor to provide the assignee with a customized settling-in program. To navigate the complexities of global assignments, a specialized third-party vendor is the best resource. Although the other options may be generally helpful, they are not specifically targeted to assist the assignee in acclimating to the global assignment.

Which scenario illustrates a geocentric global orientation as described by Perlmutter? Senior management from all countries are considered to be part of a single global resource pool Policies are created independently within global regions Senior management moves between countries within regions Senior management remains primarily within the borders of each country of a region

Senior management from all countries are considered to be part of a single global resource pool In a geocentric global orientation, the organization is viewed as a single international business. Headquarters and subsidiaries work together as one team.

How is a risk control best understood by an organization? Restricting the amount of risk the organization assumes in its dealings Indicating what triggers a specific risk management response Ensuring that employees are following risk management guidelines Sharing a risk's occurrence or impact and its likelihood

Sharing a risk's occurrence or impact and its likelihood A risk control is an action taken to manage a risk: to enhance the potential of an upside risk or to decrease the potential negative effects of a downside risk. In an organization, it is important to evaluate current risk controls & the effectiveness of them. To evaluate the effectiveness of them, knowing how often it happened, its impact, and when it happened is important.

An organization employs remote teams spread across a country. What strategy can HR use to help build engagement, trust, and alignment with the organization's goals? Additional leave for remote employees Diversity training Mandatory weekly team check-in meetings Site visits

Site visits Site visits can improve team engagement and connection, build trust, and ensure that the team remains in alignment with the organization's goals. Diversity training may be an important tool for remote teams, but it may be less useful when cultural and linguistic differences aren't in play, including when the remote teams are all located within a single country.

Which is a primary business benefit associated with implementation of an employee volunteerism program? Expanding skill sets for employees who participate Strengthening the company's brand and reputation Enhancing sense of camaraderie and teamwork Developing opportunities for employee recognition

Strengthening the company's brand and reputation While all of these may occur as a result of successfully implementing an employee volunteerism program, they are not all considered business benefits. Strengthening the company's brand and reputation is a business benefit. The others are benefits to the employees and/or the work environment.

Which is a benefit of a localization strategy? Ability to sell the same products worldwide Strong customer ties and responsiveness Greater standardization of business processes Consistent business perspective for senior managers

Strong customer ties and responsiveness Localization enables an organization to place greater emphasis on local customers, products, partners, and labor sources. It also enables an organization to meet specific legal and cultural requirements and become a part of local networks.

What are the primary categories of barriers to effective risk management? Structural, cognitive, and cultural Opportunities, threats, and weaknesses Time, money, and resources Location, personnel, and equipment

Structural, cognitive, and cultural The primary categories of barriers to effective risk management are structural, cognitive, and cultural. An organization's structure, willingness to change, and values will impact its willingness to engage in risk management. Time, money, and resources and location, personnel, and equipment may be impacted by risk management efforts, but they don't drive those efforts. Similarly, opportunities, threats, and weaknesses may be part of what the organization looks at as part of its risk management efforts, but they don't drive those efforts.

As part of a software company's corporate social responsibility (CSR) program, during non-working hours employees volunteer time and expertise helping low-income people build their own small businesses. Participation has been consistent but at a very low level. What recommendation should HR make to assist the company in increasing employee involvement? Make company facilities available to participants. Support employee participation with paid time off. Increase the program's marketing budget to encourage participation. Realign the program's focus to mirror the organizational mission.

Support employee participation with paid time off. An organization's CSR programs are more effective in involving employees if the organization actively supports employee involvement, e.g., allowing time off, paying related expenses. Increasing awareness through publicizing the program without actively facilitating employees' participation will probably be ineffective. This program is well aligned with the company's focus. Using company facilities may be problematic (e.g., security issues, transportation for program participants).

Which approach best helps a company achieve its commitment to develop a community volunteerism program as part of a sustainability strategy? Survey employees to gather feedback on community volunteer interests. Assign a project to an HR specialist to research what other companies are doing. Ask applicants about their community volunteer interests during the interview. Mandate a community volunteer activity for each department to take on.

Survey employees to gather feedback on community volunteer interests.

How does duty of care translate to an organization's responsibilities? Taking all steps reasonable to ensure employee health and safety Providing health benefits to all of its employees and their families Managing risks to employees on assignment Complying with all local health and safety requirements

Taking all steps reasonable to ensure employee health and safety Duty of care reflects an employer's responsibility to take all steps reasonably possible to support employee health and safety and prevent harm, whether the employee is in the workplace or on a remote assignment. This may involve but is not restricted to providing access to health care and complying with regulatory requirements.

What is meant by the sustainability sweet spot? The point at which a sustainable initiative's investment is surpassed by its economic benefits The point at which management, employees, and the community agree on goals The overlapping area of the triple bottom line perspectives 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 hyperconnectivity assist an organization in achieving its strategic goals? Through the interconnection of all PESTLE forces: political, economic, social, technological, legal, and environmental Through the significant increase in the speed of broadband connections Through the digital interconnection of people and things at any time and any place Through the economic interconnection between emerging and developed economies

Through the digital interconnection of people and things at any time and any place The World Economic Forum defines hyperconnectivity as the "increasing digital interconnection of people-and things-anytime and anyplace." It is the purely digital/virtual aspect of globalization's "accelerating interconnectedness."

How are local cluster developments used in corporate social responsibility? To create shared value To move up the sustainability maturity curve To broaden the range of stakeholders To create a sustainability sweet spot

To Create Shared Value Porter and Kramer argue that the success of most organizations is dependent on a cluster of other organizations (related businesses, suppliers, schools) and infrastructure (roads, communication networks, water and energy supply). Shared value results when organizations build and enhance the local cluster and improve the conditions of those operating in it, benefiting the organization and its community. Local Clusters are essentially other groups and organizations that your organization touches / influences. Theses can be partners, or simply your local community. By supporting local clusters you are developing shared value which is a "win/win scenario" By supporting those around you you improve your own business

Which is the most important reason for a global organization to have a values-based corporate social responsibility (CSR) strategy? To be in compliance for local legislation To build a better corporate brand To avoid business scandals To create a foundation to make ethical decisions

To create a foundation to make ethical decisions The values established create the foundation for ethical decisions. Avoiding business scandal, being in compliance, and building a better brand can also be considered reasons, but the values-based CSR strategy is the key to all decisions.

A small but growing organization is just beginning to build its corporate social responsibility (CSR) program. Which objective would be most appropriate for the organization at this stage? To place senior executives on boards of prominent nonprofits in the local area To develop a CSR program that is aligned with the organization's business strategy To find local nonprofits that merit financial support and that share the same values To develop an annual auditing tool for recipients of the organization's support

To develop a CSR program that is aligned with the organization's business strategy CSR has moved up the sustainability maturity curve. In the past, CSR was seen as a tactical, public relations&centered way to "pay back" or do good, or a compliance activity, or a defensive maneuver to protect a company's reputation and share value. It has changed to a strategic approach that is fully integrated into an organization's mission and core business strategies. The starting point for any CSR strategy is thus to align CSR goals with core business goals.

What is the primary purpose of a safety self-audit? To lower workers' compensation insurance premiums for the company To identify roles and responsibilities in the event of an industrial accident To ensure employee compliance with the organization's safety programs To eliminate unsafe acts and environmental factors in the company

To ensure employee compliance with the organization's safety programs A safety self-audit is conducted by an employer to assure the organization that employees are following safety-related policies and procedures. Workers' compensation premiums are most directly affected by an organization's rate of injuries. Being prepared to handle an emergency is a good practice, but it is more related to procedures and training than to an audit. An audit can only capture evidence of compliance or noncompliance. Compliance alone, especially if policies and training are faulty, will not eliminate unsafe acts.

In which way has globalization impacted how domestic organizations train managers? A domestic company is not affected by globalization; training does not need to evolve. Training includes cross-cultural sensitivity and adaptability. Cross-cultural sensitivity training is used only for global assignees. Domestic organizations are concerned only with downstream processes and needs.

Training includes cross-cultural sensitivity and adaptability. Training should include cross-cultural sensitivity and adaptability. Even domestic companies are affected by global forces and should train managers to aid in developing a global mindset. *another example of SHRM way - no action is bad

An organization has redefined its brand to demonstrate a commitment to corporate social responsibility (CSR). Which phase of the CSR maturity curve is the organization in? Compliance Integration Transformation Review

Transformation Transformation is the phase in which organizations redefine themselves. Compliance: Mainly a defensive position, a tactical response to requirements and negative publicity. Integration: CSR elements are integrated into regular functions of the business. Redesigning products and services to be more responsible and sustainable. Transformation: Organizations redefined themselves, their brand, to reflect a commitment to CSR. This becomes part of a strategy to differentiate the organization from its competitors.

Which is critical when considering forces for globalization? Understand which forces are significant to the organization Identify whether a force will have a positive or negative impact on the organization Learn whether a force's origin is an emerging or a developed economy Determine whether a force is political, technological, economic, or social

Understand which forces are significant to the organization An HR professional's goal in considering any aspect of globalization is to strive to understand which globalization events, forces, and trends are significant for an organization and for HR responsibilities in that organization. Whatever the force's type or origin, its impact will be unique for that organization.

How can HR ensure that the relative value of a position in a global organization is the same regardless of where the work is done? Complete a job analysis. Create unique job classifications for each country. Use global job classifications. Conduct an employee survey.

Use global job classifications. Using global job classifications allows HR professionals to more clearly identify the relative value of a job position in the organization, regardless of where the work is done or local conventions.

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? Have all employees sign arbitration agreements to settle disputes over failed drug tests. Create standard documentation forms to use when dismissing employees following failed tests. Collect legal documentation from all employees verifying their willingness to participate in the program. Verify that the proposed program complies with applicable local, state, and federal laws.

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.

Which practice supports a strategic decision toward global assignments? Choosing average and good performers for selection as assignees Creating assignments based on solving specific short-term issues Viewing assignments as leadership and career development opportunities Sending assignees to another country to manage a special project

Viewing assignments as leadership and career development opportunities Organizations that employ a global strategy will use more strategic and systematic approaches toward filling global assignments. They will use a wide variety of global assignment types; choose high-potential and top executives as assignees; view assignments as leadership, career, and organizational development opportunities; and make assignments for many reasons other than situational project management.

HR is looking for ways to increase the organization's brand while developing the employees. How can this be achieved? Volunteering Job rotation Outsourcing Job sharing

Volunteering Volunteering gives people a chance to learn new skills while representing the organization. Job sharing and rotation may improve an organization's effectiveness and productivity but not perceptions of its brand by external stakeholders. Outsourcing, if performed without due diligence, can hurt the organization's brand, but performed appropriately it will affect productivity and effectiveness rather than brand.

An organization examines the level of probability for all types of losses to which it may be exposed. What aspect of risk is the organization studying? Mitigation planning Impact Vulnerability Risk tolerance

Vulnerability Vulnerability refers to the degree of probability that a loss will occur. Impact is the possible effect on the organization, and tolerance is the amount of risk the organization can handle if an event occurs. Mitigation planning occurs after analysis of probability, risk, and speed of onset.

What document legally authorizes a person to take employment in another country? Work permit Immigrant visa Nonimmigrant visa Residence permit

Work permit A work permit is the official document giving a foreigner permission to take a job in a country.

Which best exemplifies a risk mitigation approach? Workers operating dangerous machinery cannot exceed a set shift length. A firm partners with another firm to increase the likelihood of its winning a design bid. An organization chooses not to assign employees to a destabilized country. A company uses a thorough substance abuse screening program for pre-hires.

Workers operating dangerous machinery cannot exceed a set shift length. By limiting the length of the work shift, the company mitigates the risk of accidents caused by fatigue and inattention. This is aimed at reducing the probability of the occurrence of accidents, at least for this cause. Decisions not to assign or not to hire are risk avoidance measures. The partnering strategy is a way of enhancing upside risk. Risk Mitigation: Lowering Risk Risk Avoidance: Not taking the Risk at all