Workplace Questions
Which best defines the concept of moral hazard? A person engages in risky behavior knowing that someone else will absorb any losses. 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 leader demonstrates poor ethical behavior, leading to poor choices by employees.
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.
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 Compliance audit After-action debrief report
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. Choose another community partner less involved in advocacy. Avoid turning the involvement into personal gain through publicizing it. Provide volunteers with additional training in community work.
Allow employees more voice in choosing the community involvement partner. Although the cause may be worthy, it would be better if employees were more involved in choosing a partner and project rather than being assigned to one by the organization's leader.
Which best describes a global organization? An organization whose processes, actions, and decisions are firmly rooted in a carefully conceived global strategy An organization that is grossing more than $1 million and doing business in more than two countries An organization with operations in both developed and emerging economies with established cultural diversity to achieve success 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? Pre-departure preparation Management and assignee decision On assignment Assessment and selection
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? Only if a major incident has occurred At an agreed-upon and regular interval Every three years When a new strategy is developed
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? Mitigate the risk by informing candidates that they have the right to information about hiring decisions. Avoid the risk by training hiring managers and reviewing all job descriptions before use. Transfer the risk by asking for legal review of this job description. Ignore the risk. It is unlikely that single parenthood will be a decisive factor for employment.
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? Balance an organization's global strategy with policy localization to reflect national cultures and laws 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 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 providing time off By improving the company culture By building skills By increasing branding
By building skills
What is the relationship between corporate social responsibility (CSR) and sustainability? Sustainability focuses externally while CSR focuses internally. CSR encompasses sustainability. CSR focuses on social concerns; sustainability focuses on environmental concerns. Sustainability has completely replaced CSR.
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? 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. Technology has had a mostly negative effect on society and the environment.
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 best illustrates the principle of sustainability in the workplace? Global HR policies are reviewed to make sure they comply with local laws and regulations. Changes to a headquarters location are weighed against the effects on stakeholders. The organization implements a flat structure, with few layers of decision-making authority. Competitive business practices are aligned with local norms in each operating region.
Changes to a headquarters location are weighed against the effects on stakeholders. Sustainable workplace policies focus on long-term effects and the integrated needs of people, the environment, and economic needs. Including a careful assessment of a change that would affect a large number of employees and the surrounding communities is sustainable.
Which is one of the negative social effects of global technological forces? Economic imperialism by developed economies Decreasing foreign investment in developing economies Increasing ethnocentrism Complexity of privacy issues
Complexity of privacy issues Because of technology and integration of information, privacy issues have become much more ubiquitous and complex. Privacy issues range from employer-employee privacy to compliance questions raised by government requests for customer data from corporations. In response to the prevalence of issues, many countries have instituted privacy laws.
Which method should HR employ to support an international assignee during their assignment? Coordinate communication and visits to their home country Identify potential risks to the assignee and the organization Provide a country overview and information on everyday life Prepare a security briefing on the assignment 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 HR task is usually associated with a multidomestic corporation? Administering payroll and benefits Facilitating knowledge exchange throughout the organization Building a common corporate culture across all operations Coordinating HR activities between the home and host countries
Coordinating HR activities between the home and host countries A multidomestic corporation is similar to a portfolio of independent businesses. Headquarters is in the home country, but over time the divisions achieve more autonomy. At this stage, HR is involved in coordinating HR activities, with the goal of consistency while remaining flexible with local law and culture.
Which action best characterizes an organization that approaches global assignments from a strategic-systematic perspective? Focusing attention mainly on problems as they arise Decreasing attention to worldwide integration of values and technology Coordinating critical functions among the home office and foreign locations Approaching international assignments as noncritical short-term business expenses
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.
Which is an example of a "push" factor in globalization? Current home-country market saturation Favorable country-specific trade agreements Proximity to resources and materials Better labor supplies in other countries
Current home-country market saturation If its current market is completely saturated, offering no potential for significant growth, this may "push" an organization into efforts to globalize. Global expansion will allow the continuous growth in revenue that management and/or investors may require.
To approach global assignments from a strategic-systematic perspective, which action should HR take? Focus on staffing levels in lieu of talent development and growth. Perform HR functions and focus attention on arising problems. Approach global assignments as short-term expenses. Develop future executives with essential global perspectives.
Develop future executives with essential global perspectives. Developing future executives with essential global perspectives is a primary action in a strategic-systematic approach.
An organization is moving from employees working in silos to a team environment. Which corporate social responsibility activity best supports this initiative? Outside training Joining an internal committee Employee volunteerism Team building
Employee volunteerism All activities listed will help with employees learning to work within a group, but employee volunteerism is the only one that can be part of a corporate social responsibility activity.
Which PESTLE force has caused a change to corporate branding? Political issues Technology Economic pressures Environmental concerns
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? Social, ethics, economics Environmental, social, ethics Environmental, economic, social People, profits, environment
Environmental, economic, social Environmental, economic, and social are the three spheres of sustainability.
What is the role of HR when it comes to whistleblowing? Working with mid-level managers to determine who is whistleblowing and seeking to ensure that the complaints are handled and withdrawn Gathering, assessing, and categorizing complaints from whistleblowers and presenting them to upper-level management during annual review cycles Establishing a communication process that allows direct access to upper-level decision makers and protecting whistleblowers from retaliation 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 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 is based on laws and regulations. Ethics increases external stakeholders' influence. Ethics allows for the adherence to the letter of the law.
Ethics dictates behavioral guidelines for an organization. Ethics is a set of behavioral guidelines an organization expects all to follow. Compliance is based on laws and regulations and allows for adherence to the letter of the law.
The creation of a global compensation and benefits strategy that ignores local differences in culture is most likely to occur in what global management approach? Geocentric Ethnocentric Polycentric Regiocentric
Ethnocentric In an ethnocentric approach, headquarters maintains tight control over international operations. Subsidiaries have little autonomy and key positions are held by headquarters personnel. A strong headquarters bias often blinds management to the subtleties of cross-cultural differences.
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? OECD Guidelines for Multinational Enterprises ISO 26000 GRI Sustainability Reporting Standards United Nations Global Compact
GRI Sustainability Reporting Standards The GRI Sustainability Reporting Standards enable meaningful and consistent comparisons of organizations' sustainability performance.
Which statement characterizes globalization? Global interconnections reached a peak in the 1980s and 1990s and have since decreased Technology has become the single shaping force in globalization Developed economies play an increasingly dominant role in globalization 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 Social Compliance 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.
What type of system does HR help develop that puts rules and processes in place for the organization to go by? Compliance program Social audit 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 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? Rule of law Governance Compliance Ethics
Governance Governance is the system of rules and processes an organization puts in place to ensure its compliance with local and international laws, accounting rules, ethical norms, and environmental and social codes of conduct. Good governance is the outcome of a thoughtful assessment of an enterprise's legal, ethical, and civic obligations to the communities it serves and the development of systems that support fulfillment of these obligations.
Which is considered a "pull" factor in attracting organizations toward globalization? Globalized supply chain Need for new markets Government policies Greater strategic control
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.
Which risk category would include the risk posed by infectious disease? Operational Financial Hazard Strategic
Hazard The hazard risk category includes risk sources from injury and illness. Infectious disease would fall under this risk category.
What are the basic steps in crisis management planning and readiness? Review policies, evacuate, relocate, and communicate. Identify risks, develop plan, test and drill, evaluate. Secure redundant and contingent services, train employees. Remove risks, train, and monitor for change.
Identify risks, develop plan, test and drill, evaluate. The basic steps in planning to respond to a crisis are identifying and analyzing risks (e.g., a pandemic), planning to manage the possible outcomes if the risk event occurs (e.g., cross-training and remote work procedures), testing and drilling (e.g., a table-top exercise in which a department's plan is "invoked" and examined for effectiveness, thoroughness, and employee understanding), and evaluation of the plan to improve its effectiveness and applicability to emerging threats).
An organization needs to prioritize spending for its risk management initiatives. Which is the first step the HR leader should take? Identifying processes and individuals critical to the organization's delivery of value Directing every function in the organization to complete risk assessment forms Establishing senior management's risk tolerance level compared to their risk appetite Comparing the costs of mitigating risks with the costs of transferring risks
Identifying processes and individuals critical to the organization's delivery of value While all of the stated choices may help develop an appropriate risk management plan, a good first step is to identify critical processes and individuals essential to the organization's continued functioning. This will help the organization focus its resources in the most effective manner.
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.
Which best identifies the outcome of requiring all employees to be trained in business continuity and disaster recovery plans? Increased confidence among organization stakeholders Decreased risk of occurrence of risk events Increased risk of poor public relations Decreased size of risk management budgets
Increased confidence among organization stakeholders Preparation for crises and business interruptions demonstrates quality management practices and would boost stakeholder confidence and public image. It would not affect the likelihood of occurrence, nor would it decrease risk management budgets.
At which point in the corporate social responsibility (CSR) strategic process should a global organization decide on using local leadership? Assessment Infrastructure creation Plan implementation Executive commitment
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 employee is selected for an international assignment lasting two to three years and involving full relocation. Why is a well-crafted global letter of assignment a key part of the assignment plan? It mitigates the need for the services of specialized third-party vendors. It shortens the culture shock phase while on assignment. It addresses the terms and conditions of the assignment. It makes repatriation back to the home country easier.
It addresses the terms and conditions of the assignment. A letter of assignment evolves from the assignment plan and addresses the business aspects of the assignment as well as compensation, benefits, and local work rules. Taking the time to ensure that the information provided is clearly articulated, thorough, consistent, and unambiguous sets clear and reasonable expectations between the employer and the employee. In turn, this information sets the stage for a successful first-time international assignment.
Why is cross-cultural training critical for international assignees and their families? It reduces the risk of failed assignments. It shortens the culture shock phase. It supports HR's duty-of-care obligations. It increases the ability to mentor.
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 total rewards strategy outcome is most likely in an organization with a geocentric approach to management? Local, cultural, and legal norms in the local administration of the total rewards strategy are recognized Important cultural differences are overlooked as headquarters total rewards policies are adjusted for local application Headquarters total rewards policies for local application is modified only when required by local laws Full autonomy is given to individual regions in the development and administration of the total rewards strategy
Local, cultural, and legal norms in the local administration of the total rewards strategy are recognized In a geocentric organization, an international company is seen as a single global business, with management coming from any location in the enterprise. The strategic plan is global in orientation, while the need to balance global strategy with local culture and regulations is well understood.
In terms of risk management, what is a risk control? Mechanism to collect data for reporting to management System to prevent the occurrence of a risk Measure taken to reduce the probability or severity of a threat Contingency plan to be implemented in the event of a crisis
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? Counseling Coaching Mentoring 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.
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? Organization's risk tolerance Poor governance Risk avoidance management strategy 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.
Which best demonstrates HR's role in managing organizational risk? Following management's lead in identifying, prioritizing, and managing risks within the HR function Identifying past and current risks and avoiding those risks that affect the HR function Defining the risk level that the organization is willing and able to assume Participating in the identification and management of threats and opportunities across the organization
Participating in the identification and management of threats and opportunities across the organization The best role for HR is one that is proactive, not reactive, and that considers risk from an integrated enterprise perspective. The definition of risk appetite and risk tolerance is best made by senior management, however.
Which primary role does HR play in supporting global strategic management? Create HR policies that reinforce global inclusion versus local responsiveness Ensure that subsidiaries' workforces retain their local identities Define strategies for local subsidiaries Partner to create the organization's global strategy
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? Prioritization of risk management strategies by effectiveness Plan to manage identified secondary risks Identification of responsible individual when a risk occurs Plan that is activated when a risk event 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 total production costs due to robotics Faster overall time from production to the customer Political fallout Reduced cost savings
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.
What compensation and benefits strategy embraces incentive plans that promote achievements of local subsidiary objectives over a corporation's global ones? Ethnocentric Geocentric Regiocentric Polycentric
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? Pressure for increased productivity Domestic problems Low employee self-esteem Unstable economy
Pressure for increased productivity Conditions causing employee frustration and anger can lead to violence. Examples include pressure for productivity, rigid management style, and layoffs.
Which action would best support an international assignee returning home after being away for more than ten years? Provide only the required notice of the return to reduce anxiety. Give the assignee a full new-hire orientation. 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)? Provides early warning of organizational risk emergence Identifies a global assessment of organizational exposure to risk Establishes greater accountability of risk control measures Assists in preventing the emergence of identified risks
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? Reducing how much of its processes are automated in order to employ more local workers Switching supply chain vendors to those whose more socially responsible practices slow down the delivery cycle Altering its production facilities to use renewable energy sources (wind, solar) despite the increase in costs Redesigning products so that components are made locally from recycled materials, thereby reducing production costs
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.
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? 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. 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.
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.
What is secondary risk? 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 Risk that is deemed lower in priority
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-averse Risk management Risk identification Risk mitigation
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? Champion of employee's perspective and position Prosecutor presenting evidence and challenging the employee Risk manager for the organization Supporter for manager/supervisor of involved department
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? Desired applicant-to-hire ratio to indicate success Risk tolerance of the organization Networking connections and employee referrals 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.
Which of the following factors influence an organization to expand globally? Greater strategic control over global branding Attractive trade agreements with foreign countries Saturated market demand at home Favorable tax policies for domestic investment
Saturated market demand at home Saturated demand at home means that the only growth option (without developing new products and markets at home) is to find new customers in new countries.
A risk scorecard provides a weighted number for each event or threat and the probability of that threat occurring. Which other factors are needed to complete a threat ranking index? Risk category, classification, and reporting requirements Speed of onset, existing mitigation, and severity of impact Risk level, impact, and the probability of event occurrence Known knowns, known unknowns, and unknown unknowns
Speed of onset, existing mitigation, and severity of impact A risk scorecard starts by identifying the event or threat. After factoring in the event/threat probability, speed of onset, existing mitigation, and severity of the impact, the user will see a final number that displays a weighted threat ranking index. Risk level, impact, and the probability of event occurrence are components of a risk matrix that visually demonstrates risk levels. Risk category, classification, and reporting requirements may be documented in a risk register but are not used in scoring. Known knowns, known unknowns, and unknown unknowns are categories of risk from the perspective of the amount and kinds of knowledge available when evaluating the risk.
Which is a primary business benefit associated with implementation of an employee volunteerism program? Enhancing sense of camaraderie and teamwork Developing opportunities for employee recognition Strengthening the company's brand and reputation Expanding skill sets for employees who participate
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 Greater standardization of business processes Strong customer ties and responsiveness 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? Opportunities, threats, and weaknesses Location, personnel, and equipment Structural, cognitive, and cultural Time, money, and resources
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. Realign the program's focus to mirror the organizational mission. Increase the program's marketing budget to encourage participation. Support employee participation with paid time off.
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. Mandate a community volunteer activity for each department to take on. Assign a project to an HR specialist to research what other companies are doing. Ask applicants about their community volunteer interests during the interview.
Survey employees to gather feedback on community volunteer interests.
How does duty of care translate to an organization's responsibilities? Complying with all local health and safety requirements Providing health benefits to all of its employees and their families Taking all steps reasonable to ensure employee health and safety Managing risks to employees on assignment
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.
Which type of globalization is characterized by large populations from emerging countries moving abroad for better employment opportunities? Demographic dichotomy Globalist immigration The diaspora International assignees
The diaspora The diaspora refers to a mass migration of voluntary emigrants from their homelands to multiple destinations. The demographic dichotomy describes the trend of a younger workforce in emerging economies while developed countries are experiencing an aging workforce. International assignees and globalists are types of global assignments.
What is meant by the sustainability sweet spot? The point at which a sustainable initiative's investment is surpassed by its economic benefits 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 point at which management, employees, and the community agree on goals
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).
Which is the most important reason for a global organization to have a values-based corporate social responsibility (CSR) strategy? To create a foundation to make ethical decisions To be in compliance for local legislation To avoid business scandals To build a better corporate brand
To create a foundation to make ethical decisions The values established create the foundation for ethical decisions. Avoiding business scandal, being in compliance, and building a better brand can also be considered reasons, but the values-based CSR strategy is the key to all decisions.
How are local cluster developments used in corporate social responsibility? To create a sustainability sweet spot To create shared value To broaden the range of stakeholders To move up the sustainability maturity curve
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.
An organization has redefined its brand to demonstrate a commitment to corporate social responsibility (CSR). Which phase of the CSR maturity curve is the organization in? Transformation Review Compliance Integration
Transformation Transformation is the phase in which organizations redefine themselves.
Which is critical when considering forces for globalization? Identify whether a force will have a positive or negative impact on the organization Determine whether a force is political, technological, economic, or social Understand which forces are significant to the organization Learn whether a force's origin is an emerging or a developed economy
Understand which forces are significant to the organization An HR professional's goal in considering any aspect of globalization is to strive to understand which globalization events, forces, and trends are significant for an organization and for HR responsibilities in that organization. Whatever the force's type or origin, its impact will be unique for that organization.
Technological forces have had which critical effect on today's corporate social responsibility (CSR) practices? Monitoring tools have made it easier to track regulatory compliance. Telecommuting tools have helped organizations reduce their carbon footprint. Using analytical capabilities has made CSR impacts more demonstrable. Organizing multicultural efforts through social media is easier.
Using analytical capabilities has made CSR impacts more demonstrable. Data mining and analytics capabilities have made CSR factors more readily measurable and their impacts more demonstrable and understandable. That in turn has increased accountability, helped shape regulatory requirements, and, where measurable performance results are positive, given organizations a powerful strategic tool.
HR is looking for ways to increase the organization's brand while developing the employees. How can this be achieved? Outsourcing Volunteering Job rotation 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? Vulnerability Impact Risk tolerance Mitigation planning
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.
