BM & Strategy

Which organization developed the generally accepted accounting principles (GAAP) used by accounting professionals? A. American Institute of Certified Public Accountants (AICPA) B. Securities and Exchange Commission (SEC) C. Financial Accounting Standards Board (FASB) D. International Accounting Standards Board (IASB)

A. American Institute of Certified Public Accountants (AICPA) The American Institute of Certified Public Accountants (AICPA) established a committee that developed generally accepted accounting principles (GAAP) for use by accounting professionals. In 1972, the Financial Accounting Standards Board (FASB), was created by the AICPA to take over responsibility for setting accounting standards. FASB standards are officially recognized by the SEC as the authority for accounting practices. The Securities and Exchange Commission (SEC) has, under the Securities Exchange Act, statutory authority for establishing reporting standards for publicly held companies. The SEC has considered allowing U.S. companies to use international accounting rules developed by the International Accounting Standards Board (IASB) instead of GAAP rules when preparing and filing their financial reports. Because this would be a fundamental change in the way financial reports are prepared, any final changes will take place over an extended period of time.

An organization wants to expand its existing service line to meet increasing customer orders. In order to expand, the organization is dependent on securing a new investor. In developing the business plan, the targeted investor is requesting a five-year forecast of the new expanded service line. The requested forecast will need to provide detail of what financial and workforce resources will be needed in a five-year time frame. Because of the fast-paced nature of the business, it has been difficult to predict what is needed a year from now, let alone five years from now. How would you best go about creating a five-year workforce forecast for the organization's strategic plan? A. Base the forecast on carefully researched and/or historical evidence in the organization or industry. B. Base the forecast on newly established workforce metrics such as headcount, turnover, and cost-per-hire. C. Create the forecast by surveying employees and managers, obtaining opinions on the best staffing plan. D. Create the forecast by obtaining the status of the existing job pool and anticipated graduate information.

A. Base the forecast on carefully researched and/or historical evidence in the organization and industry It is true many consider forecasting too far out into the future to be subjective. However, when a forecast is based on carefully researched and/or historical evidence in the organization or industry, it's possible to identify a trend in what resources may be required if service lines are doubled or tripled. B, C, and D are incorrect. B is incorrect because newly established metrics do not provide a much needed historical perspective. C is incorrect because while obtaining opinions is good for eventual buy-in, it would not provide an objective historical perspective. D is incorrect because an existing job pool may provide an indicator of what skills are available but does not provide a complete picture for a forecast.

While conducting a cost/benefit analysis, you've discovered the costs match the benefits of a project. This is an example of what factor in the analysis? A. Break even point B. Itemized statement C. Return on investment D. Zero-based budget

A. Break Even Point A breakeven point occurs when the costs match the benefits of a project or initiative. B, C, and D are incorrect. B is incorrect because an itemized statement lists out details of costs or expenses. C is incorrect because a return on investment is a performance measure that evaluates the effectiveness of an investment. D is incorrect because a zero-based budget starts from zero and justifies every line item in the budget.

Two organizations are considering merging. You are part of a task force that will conduct a due diligence assessment. Which of the following will provide strategic insights and impact for the due diligence assessment from the HR perspective? A. Culture compatibility information B. Skilled applicant pool information C. Recruitment process information D. Leadership development information

A. Culture compatibility information Statistics indicate that most merger and acquisition deals fail because the cultures of the two companies are incompatible, as in the case of AOL and Time Warner. Uncovering as much information about cultures and determining compatibility information can be invaluable to the success of the arrangement. B, C, and D are incorrect. B is incorrect because applicant pool information is not a key strategic point that can make or break the success of a merger or acquisition arrangement. If anything, the merger of two companies could widen the pool of potential applicants. C is incorrect because process information will most likely merge over time but is not key information that has significant impact on the arrangement. D is incorrect because leadership development information is a nice-to-know item but does not rise to the level of strategic impact as culture compatibility.

What is the Chief Executive Officer's main responsibility when it comes to creating a corporate ethics program? A. Establish necessary ethical standards and conduct business in a consistent manner with the policies. B. Ensure an organization's financial records are accurate. C. Provide legal guidance and ensure corporate and governmental compliance. D. Ensure accurate reporting and compliance along with the organization's external auditors.

A. Establish necessary ethical standards and conduct business in a consistent manner with the policies The basic responsibility of the CEO of an organization is to establish necessary ethical standards and conduct business in a consistent manner with the policies. B, C, and D are incorrect. B is incorrect because this would be the responsibility of the Chief Financial Officer. C is incorrect because this would be the responsibility of an organization's general counsel. D is incorrect because this would be the responsibility of an organization's internal auditing group.

Which is the most important foundational issue of organizational effectiveness? A. Ethics B. Governance C. Policies D. Rewards

A. Ethics Ethics determine how we behave with employees, vendors, customers, clients, and other stakeholders. They govern "how we do things around here." They are constant references for employee decision making and behavior.

The AB Trucking Co. is expanding its routes and hiring more people. Those changes will mean that employees will have to take on different work assignments. How should the HR manager handle those changes with the workforce? A. Explain the coming changes to all employees and solicit their help in deciding how to assign the new routes. Prepare a project plan and make sure everyone has a chance to see it before the implementation date. B. Explain the coming changes and tell the truckers that assignments will be made based on seniority. The new people will be assigned last. C. Explain the coming changes and let the senior executives handle the questions about how new job assignments will be made. D. Explain the coming changes and let the employees discuss among themselves how they want to assign routes to the workforce.

A. Explain the coming changes to all employees and solicit their help in deciding how to assign the new routes. Prepare a project plan and make sure everyone has a chance to see it before the implementation date. Whenever possible, involving employees in designing the plan for accommodating organizational changes will be the best for employee morale.

Which of the following is an example of an internal HR strategic relationship? A. HR collaborates with line supervisors to identify employees who may fill future management openings. B. HR ensures compliance with the Fair Labor Standards Act (FLSA). C. HR completes a compensation analysis. D. HR audits education records of all employees

A. HR collaborate with line supervisors to identify employees ho may fill future management openings Collaborating with supervisors to identify talent is an internal strategic relationship that would influence recruiting and hiring strategy. B, C, and D are incorrect. B is incorrect because ensuring FLSA compliance is an HR function but not an example of a strategic internal partnership. C is incorrect because for this to be a strategic internal relationship, the questions of what the compensation analysis is for and what will be done with the information gathered should be answered as well. D is incorrect because it is more of a task-oriented function specific to HR. It would not be considered strategic.

An organization's vision is to be a leading innovator in the industry. Leaders want to establish a balanced scorecard approach to measuring performance and to ensure alignment of objectives. You have been asked to own the learning and growth perspective of the balanced scorecard. Which key question would you ask that provides a solid foundation for key performance indicators in the learning and growth perspective of the balanced scorecard? A. How is our ability to innovate, improve, and execute? B. How is our ability to find and hire talent quickly? C. How is our ability to manage performance of low performers? D. How is our ability to achieve employee satisfaction scores?

A. How is our ability to innovate, improve and execute? Measuring the ability to innovate, improve, and execute is a key question to ask. This is especially critical if an organization has a vision or mission to be an innovative leader. In answering that question, then, an organization is in a good place to identify key performance indicators that measure progress. B, C, and D are incorrect. B is incorrect because having the ability to find and hire talent quickly does not adequately address the organization's overall objectives. C is incorrect because managing performance is only one part of the equation and does not adequately address the overall organizational objectives. D is incorrect because employee satisfaction scores, as a stand-alone measure, are not linked to overall organizational effectiveness.

. The AB Trucking Co. is considering outsourcing its HR, accounting, and safety functions to vendors. What considerations should be given to issues impacting that decision. A. How the decision will fit into the organization's strategic plan and whether it will be cost effective B. How the employees will react C. How much money can be saved and what workload can be eliminated from the company executives D. How all the compliance work can be done by someone else

A. How the decision will fit into the organization's strategic plan and where it will be cost effective Key factors are the organizational strategic plan and the budget. If outsourcing will fit nicely into those two considerations, it may be a good alternative. But there are also other factors to be considered such as employee morale, responsiveness of the vendor, and more.

An organization is going to implement a shared service business model. The top objective is to improve efficiency and ensure excellent internal customer service. Which strategy would best ensure clear alignment with the customer satisfaction organizational objective? A. Implement a service level agreement. B. Implement management training. C. Implement a succession plan. D. Implement a talent management plan.

A. Implement a service level agreement A service-level agreement is a document that includes details such as what, when, and how a service item will be delivered. Implementing a service level agreement can go a long way in ensuring internal customer satisfaction and buy-in from key stakeholders. B, C, and D are incorrect. B is incorrect because management training is not necessarily connected to customer service objectives. C is incorrect because succession plans are meant to build a leadership pipeline and are not related to a service agreement between the outsourcing firm and customer. D is incorrect because a talent management plan is not relevant to an agreement between an internal customer and an outsourcing vendor.

What is the best strategy to involve employees in Corporate Citizenship Programs? A. Make the cause part of the culture and philosophy of the company. B. Focus on a particular cause niche. C. Focus on benevolent and business results. D. Demonstrate how the program affects the bottom line.

A. Make the cause part of the culture and philosophy of the company Making the cause part of the culture and philosophy of the company is the best way to effectively involve employees in the company's Corporate Citizenship Program. B, C, and D are incorrect because these choices do not adequately involve employees in the company's Corporate Citizenship Program. Without involving employees in new programs, lack of buy-in and complacency is a certain behavioral outcome.

The executive board of a beauty products supplier wants to diversify the business. During the strategic planning process, the executive board identifies the company's core competencies as logistics and supply chain management. Which of the following would you consider a good direction to take the business that will allow them to capitalize on these core competencies? A. Open a beauty school that offers salon services to the public and focus heavily on retailing beauty products through the salon. B. Open additional stores with diversified product lines and heavily promote the new product offerings. C. Open a beauty school that offers salon services to the public and focus on offering high quality educational opportunities for students. D. Expand existing stores by stocking diverse product lines and heavily promote the new product offerings.

A. Open a beauty school that offers salon services tot he public and focus heavily on retailing beauty products through the salon Opening a beauty school would satisfy the board's desire to diversify. Continuing their mastery of retailing beauty products through the school's salon would allow them to capitalize on their identified core competencies of logistics and supply chain management. A core competency is something the organization does well and that differentiates them or gives them a competitive edge over the competition. B, C, and D are incorrect. B is incorrect because while leadership knows the retail business well, opening another store is not diversifying as much as it is expanding. C is incorrect because it is expected that by opening a school, leadership would seek to provide a quality education to students, but this alone does not address the desire to make the most of their core competencies. D is incorrect because adding more products to the store is simply that. They would just be offering more beauty products to their consumers. There isn't any diversification or change to their already existing business model.

Once the need and desire for changing benefit providers has been established in an outsourcing relationship, what is the best role that the HR Manager can assume during this process? A. Project manager B. Employee advocate C. Management advocate D. Chief Financial Officer

A. Project Manager Assuming a project manager role and beginning to put together a team to accomplish the change is the best role an HR Manager can take during the change process. B, C, and D are incorrect because these choices are not the most important role the HR Manager will take on during this process.

. To achieve cost savings and avoid layoffs, an organization implemented a strict hiring freeze. A 5 percent reduction in headcount resulted through attrition. However, this created an imbalance in the organization's structure with some departments lacking in skilled talent while others have an oversupply of skilled talent. Which of the following strategies would best reduce the skilled talent imbalance? A. Restructure the departments so that skilled talent can be optimally utilized. B. Implement a plan to rehire all the employees who left and were not replaced. C. Establish a recruitment plan to hire all new employees with new skills. D. Develop leaders of understaffed departments to better manage the talent shortfall.

A. Restructure the departments so that skilled talent can be optimally utilized A common method of reducing headcount is through hiring freezes and attrition. A good practice in balancing the skilled talent through an organization after this type of action is to restructure departments so that they are realigned with business objectives. B, C, and D are incorrect. B is incorrect because rehiring employees is contrary to the initial business objective of reducing headcount. C is incorrect because, as in answer B, the objective was to reduce headcount, so hiring employees is contrary to the business objective. D is incorrect because while developing managers to handle change is good, it is not an adequate solution in this case. A better option is to consider restructuring the organization where skilled talent is aligned with business objectives.

Yoko's organization is acquiring another smaller company. What is the first step for her HR department to be involved with? A. Survey the existing workforce of both companies. B. Eliminate the redundant positions. C. Review the collective bargaining agreements that exist. D. Assurance of OSHA compliance.

A. Survey the existing workforce of both companies Part of the due diligence is surveying the workforce to determine not only how many employees are in the organization but what they are doing and their certifications/licenses/skills.

The executive team of a for-profit private school decides to close all Macon, Georgia, locations before the end of the academic year. The Macon locations have not been profitable for two years and because they only go up to kindergarten, the team believes that it will have very little impact on the students. From an HR perspective, which of the following would be a basis for facilitating a discussion about this situation with the executive team? A. Terminating teachers mid-school year will make it difficult to recruit teachers in the future for the other Georgia locations. B. A for-profit organization has to make abrupt decisions at times to ensure financial solvency. C. The kindergarteners can transfer to public schools or another location. D. The locations were not profitable for two years so the staff should have had a sense that something like this might happen.

A. Terminating teachers mid-school year will make t difficult to recruit teachers in the future for the other Georgia locations As an HR professional, this decision makes your ability to recruit quality teachers difficult. An abrupt layoff of staff damages the employer brand. Strategically, this decision warrants further discussion with the executive team. It is HR's responsibility to raise these concerns and facilitate discussion around this important decision. B, C, and D are incorrect because they do not take into consideration the impact of this decision from an HR strategic standpoint. They would not aid HR in guiding a discussion on any major HR issue such as staffing, recruiting, and employee relations.

Early in session, Congress passes a workplace-related bill and sends it to the president. The president takes no action on the bill for 10 days. In developing a proactive legislative plan for the workplace, which of the following is the best conclusion? A. The bill automatically becomes law, assess impact to the workplace. B. The bill has not been signed by the president, so it will not become law. C. The bill will be sent back to Congress for a two-thirds majority vote. D. The timeframe for the president signing the bill will be extended.

A. The bill automatically becomes law, assess impact to the workplace Because Congress is still in session, the bill automatically becomes law. If it is relevant to the workplace, it is wise to go ahead and assess the impact to the organization. B, C, and D are incorrect. B is incorrect because if Congress is still in session and the president has not signed the bill, it automatically becomes law. C is incorrect because in this case the bill automatically becomes law and there is no need for it to be sent back to Congress. D is incorrect because there is a formal timeline for every legislative process.

In an organizational structure, what is centralized? A. The degree to which decision-making authority is restricted to senior management. B. The degree to which decision-making authority is given to lower levels in an organization's hierarchy. C. The hierarchical division of labor that distributes formal authority and establishes how critical decisions will be made. D. The degree to which decisions are made by committees.

A. The degree to which decision-making authority is given to lower levels in an organization's hierarchy The greater grasp senior management retains on decision making, the more centralized the organization.

A corporation purchases enough stock of another corporation to gain controlling interest. This is an example of what? A. An acquisition B. A merger C. A friendly takeover D. A neutral takeover

A. an acquisition Although similar in the sense that they both result in the combining of two organizations, mergers and acquisitions happen in different ways. A merger occurs when two or more organizations are combined into a single entity with the goal of leveraging the assets of both into a more successful entity. An acquisition occurs when one organization, generally a corporation, purchases or trades stock to gain controlling interest in another. Although acquisitions can be hostile, it is not always the case. Hostile takeovers are usually antagonistic, with the acquiring company purchasing shares on the open stock market. This type of acquisition can negatively affect employee morale, as rumors about mass layoffs circulate among the staff of the target organization.

Which of the following is not information that would be collected as part of the due diligence process for the compensation aspect? A. Hourly wage rates by job B. Benefit plans C. Salary schedules D. Number of employees in each position

B. Benefit Plans Information about benefit plans would be collected during a due diligence process but is considered document information rather than compensation information. Documents collected during the due diligence process include: Names of all employees and their locations Offer letters Employment contracts I-9 forms and visa documentation Benefit plans Compensation information collected during the due diligence process includes: Hourly wage rates by job Salary schedules Number of employees in each position

. You are asked to keep the senior leadership team apprised of Patient Protection and Affordable Care Act's (PPACA) current status and make recommendations on how they may get involved in the legislative process. Which of the following actions would be the best recommendation for getting involved in complex legislation such as the PPACA? A. Writing to the media and newspaper outlets B. Calling and writing letters to local representatives C. Establishing a blog and posting the organization's position D. Posting comments on the organization's Facebook page

B. Calling and writing letters to local representatives Calling and writing letters to local representatives is a good proactive action plan in expressing concerns, support, or opposition for specific legislative activity. A, C, and D are incorrect. A is incorrect because writing to media outlets is not effective in expressing support or opposition to legislators and ultimately influencing new laws. C is incorrect because posting a blog is not the best action step in influencing the legislative process. D is incorrect because posting on social networks is not the best step in influencing new laws.

Mergers and acquisitions (M&A) provide HR managers with special problems of cultural differences. In order to make sure that the cultures don't clash after the merger, the HR manager should A. Assign a subordinate to monitor the complaint levels and report on problems that are being addressed. B. Conduct meetings with key players from each organization to outline the cultural values of each organization and determine how best to protect them in the blended employer unit. C. Send memos to department heads that specify the new cultural characteristics and express the expectation that the department heads will "make it happen." D. Provide written complaint forms to all employees and express a willingness to listen to any comments the employees have to make about the merger.

B. Conduct meetings with key players from each organization to outline the cultural values of each organization and determine how best to protect them in the blended employer unit Involving key managers from each organization can provide a foundation for whatever cultural values the new organization could like to build.

Which action step should HR take first to ensure an effective third-party contractor (outsourcing) relationship? A. Decide how work disputes will be handled. B. Create an in-depth request for proposal that exactly outlines the services that are required. C. Develop a strong alliance with the outsourcing partner. D. Communicate to the staff about the change.

B. Create an in-depth request for proposal that exactly outlines the services that are required This choice sets the tone for the outsourcing relationship going forward and will clearly specify the intended goals of the outsourcing partnership. A, C, and D are incorrect because these choices are necessary to develop but they will come later in the outsourcing process.

. Which of the following HR functions is not appropriate for outsourcing? A. Benefit administration B. Development of HR goals aligned with the organization's strategy plan C. New employee orientation/onboarding D. Open enrollment

B. Development of HR goals aligned with the organization's strategy plan The employer should always retain control of its goal determination function so it can be assured the goals will support the organization's strategic plan

Which of the following organization functions is responsible for obtaining credit and granting credit? A. Accounting B. Finance C. Development D. Operations

B. Finance Every business has some common components: production and operations, sales and marketing, research and development, finance and accounting, information technology, and people/employees. The finance function has many responsibilities including obtaining credit to meet the organization's needs, granting credit to customers, investing and managing cash for maximum return on investment (ROI), and establishing banking relationships for the organization. Accounting and finance are closely related. Broadly speaking, accounting is responsible for activities that record financial transactions within an organization. Development is the function that is responsible for designing and testing new product offerings. Operations is a large function which encompasses all activities required to produce goods or services.

A manufacturing company sets a goal to reduce the number of workers' compensation claims by 15 percent. Which of the following investments in human capital would have the most direct impact on this goal? A. Implement an improved new-hire onboarding process. B. Implement a safety training program. C. Implement a mentoring initiative to give new hires better support. D. Implement HR systems training.

B. Implement a safety training program Implementing a safety training program will have the most impact on workers' compensation claims. If employees are more aware of safety measures, they will be less likely to incur an injury, thereby reducing the number of claims. A, C, and D are incorrect. A and C are incorrect because while it is true that better preparation for the job delivered through the onboarding process and the support of a mentor will assist a new employee in making better safety choices initially, an on-going safety training plan will remind and update workers about current safety measures, which will have the most direct impact on injuries and workers' compensation training. D is incorrect because a training on HR systems would not enhance workers' knowledge of safety. Therefore, it has no impact on reducing workers' compensation claims.

A company wants to increase the research and development (R & D) staff. To do so, the company must streamline operations in other areas. Which of the following decisions would impact HR but not significantly reduce HR's ability to deliver great internal customer service? A. Assign portions of the HR Director responsibilities to direct supervisors and eliminate the HR Director position. B. Implement an employee self-serve option as a part of the HRIS to eliminate the need for calls to HR to make demographic changes for employees. C. Reduce the availability of company paid professional development for existing staff. D. Eliminate the tuition reimbursement program.

B. Implement an employee self-serve option as a part of the HRIS to eliminate the need for calls to HR An employee self-service system allows employees to immediately update tax exemption information and certain demographic changes as they happen. This actually increases HR's support to employees but saves the company money because it eliminates the need for an actual person to field the phone calls and make the changes in the system. A, C, and D are incorrect. A is incorrect because it is never a good idea to remove the strategic leader of the HR department. Line managers carry out some HR-related duties already but cannot effectively manage retention, turnover, training, employee relations, EEO reporting, and so on without that central support of an HR department lead. C and D are incorrect because in both cases the impact to the employee may be negative and reduce morale. If employees feel as though a company is not committed to their growth and development, they are likely to seek employment elsewhere or not do the best job possible while with the current employer.

Which of the following is not one of the four factors that Buckingham and Coffman identified as being a contributor to an engaged workforce? A. Identifying where the employee would best fit B. Improving on each employee's weaknesses C. Concentrating on each employee's strengths D. Establishing clear desired outcomes for each employee

B. Improving on each employee's weaknesses Employees are the people doing the work and keeping an organization running. With appropriate and effective human resource strategies, employees drive business results and are satisfied, productive goodwill ambassadors for the company. Employees who see a connection between their daily responsibilities or tasks, their personal development, and the organization's goals are more engaged in its success. Buckingham and Coffman identified four factors that contribute to an engaged workforce: Identify the best fit for employees. Concentrate on individual employee strengths. Clearly establish desired results. Look for talent as well as knowledge, skills, and abilities (KSAs) when selecting employees.

An appliance sales company is in the process of establishing corporate goals. Which of the following statements would you consider a valid goal? A. Increase sales on ranges and clothes dryers B. Increase sales by 7 percent per quarter for the next four quarters C. Increase refrigerator sales by 150 percent over last year D. Increase overall sales

B. Increase sales by 7% per quarter for the next four quarters Corporate goal setting should follow the SMART model. Goals should be Specific, Measureable, Action-Oriented, Realistic, and Time-Based. "Increasing sales by 7 percent" is measurable. "Over the next four quarters" is time-based. The overall goal is specific and the word "increase" is action-oriented. This answer meets all the SMART criteria. A, C, and D are incorrect. A is incorrect because it is not a measurable or time-based goal. C is incorrect because increasing sales by 150 percent is not realistic. A goal like this would actually discourage employees and affect morale. D is incorrect because it is not a measureable goal and is not specific.

The CFO has announced that the organization will move to a zero-based budgeting system. Which of the following is one of the key strategic advantages of implementing a zero-based budgeting system? A. It minimizes time spent planning for the year. B. It minimizes the chance of unaccounted dollars. C. It minimizes conflicts with each department. D. It minimizes the complexity of the budget.

B. It minimizes the chance of unaccounted dollars The key advantage of zero-based budgeting is that is minimizes the chance of budgetary slack. Every department starts from zero and justifies each line item. A, C, and D are incorrect. A is incorrect because zero-based budgeting is a time-consuming process. C is incorrect because having to justify every budgetary line item creates anxiety and underlying conflict for some department leaders. D is incorrect because zero-based budgeting maintains, if not increases, budgetary complexity.

Antonio has been assigned as the HR project manager for the implementation of the new HRIS. The IT staff, Training and Development group, Risk Management department, and the Compensation and Benefits group will be involved in the implementation. What project management tool will be best for Antonio to use for scheduling and managing the tasks with all groups? A. Gantt chart B. PERT chart C. Implementation schedule D. Balanced scorecard

B. PERT Chart Program Evaluation and Review Technique is the project management tool that will allow multiple groups and many tasks to be tracked at once

A pharmaceutical company states in its mission that it will support and enhance the quality of care in the communities it serves. A not-for-profit hospital is built one mile away from its headquarters. What advice would you provide to the CEO in regards to leveraging this recent development? A. Establish a partnership with the hospital to offer the patients experimental medications for free. B. Provide discounted or free products to the hospital. C. Offer to involve hospital employees in research projects, as appropriate. D. Open a pharmacy adjacent to the hospital

B. Provide discounted or free products to the hospital Providing discounted or free medications directly to the hospital would be in line with the company's mission to "...support and enhance the quality of care in the communities it serves..." A, C, and D are incorrect. A is incorrect because it is not congruent with the company's mission. Offering experimental drugs, even if for free, does not support the idea that the company cares about its local community receiving quality healthcare. Experimental medications may have unknown side effects and are not yet be approved by the Food and Drug Administration (FDA). C is incorrect because this is also not congruent with the company's mission. D is incorrect because opening a pharmacy gives those who utilize the hospital a convenient option to fill prescriptions but given that this is a charity hospital, paying full price for medications does not help the less fortunate in the company. The mission states that the company wants to enhance the quality of care for the community.

. Your organization is going to acquire another company. You have just learned the organization being acquired has pending litigation from the Equal Employment Opportunity Commission (EEOC). Which of the following actions would best protect the acquiring organization's interests? A. No actions are necessary as the liability strictly stays with the company being acquired. B. Recommend that an indemnification provision is built into the acquisition agreement. C. Delay the acquisition decision until the matter with the EEOC is completely resolved. D. Cancel the acquisition decision as a pending litigation issue is considered too risky.

B. Recommend that an indemnification provision is built into the acquisition agreement An acquiring organization can inadvertently assume risk from pending litigation from the selling company. The best approach to protecting an acquiring organization's best interests is to include an indemnification in the acquisition agreement. An indemnification provision protects an acquiring company from assuming unreasonable risks particularly from pending litigation matters. A, C, and D are incorrect. A is incorrect because it is not true. The risk from pending litigation from the EEOC or the NLRB does not stay strictly with the selling company and can roll to the acquiring company. C is incorrect because delaying an acquisition until pending litigation is resolved is not practical. Sometimes litigation can last for years and the rationale for buying a company can become obsolete in a fast moving business era. D is incorrect because it is not practical to resist business decisions if there is any risk involved. The truth is risk is at every business turn. Assessing those risks and considering all alternatives is the best course to take.

Which of the following laws covers insider trading and whistleblowing issues? A. Employee Retirement Income Security Act B. Sarbanes-Oxley Act of 2002 C. WARN Act D. Family Medical Leave Act

B. Sarbanes-Oxley Act of 2002 The Sarbanes-Oxley Act of 2002 covers insider trading and whistleblowing. A, C, and D are incorrect as these choices do not cover insider trading and whistleblowing.

The role of human resource management has changed over the last few decades because more focus is now placed on A. Finding people with qualifications in high technology that can meet today's challenges B. Strategic management of the organization and less focus on labor relations C. Recruiting and less focus on paperwork D. Supporting the executive suite and the programs that the officers want implemented

B. Strategic management of the organization and less focus on labor relations Designing strategic support programs for human resource management is critical in today's fast-paced employment world. Competition is more stringent and legal requirements are constantly expanding. While supporting executive wishes has always been part of the HR job, the design of strategic programs is relatively new.

What is the most important reason why a CEO of a company would want to hire a Chief Ethics Officer? A. To decrease discrimination in the workplace B. To allow for consistent policies and standards C. To free up time that HR is currently spending on ethical complaints D. To reduce time for the dispute resolution process

B. To allow for consistent policies and standards Hiring a Chief Ethics Officer would allow for standard communication/values and standards to be set up for the company. A, C, and D are incorrect because these choices would be items to consider when hiring a Chief Ethics Officer. While minimizing time spent on ethical issues or the number of discrimination complaints is good goals, they by themselves do not rise to the higher strategic objective of the position.

You have decided to conduct an audit to evaluate existing HR policies and practices for risk exposure. Which of the following is one of the key strategic advantages of conducting an HR audit? A. To understand which policies are outdated and need to be replaced B. To understand if HR practices help or hinder organizational objectives C. To understand if there is confusion about policies or practices D. To understand if leadership development training needs updating

B. To understand if HR practices help or hinder organizational objectives A key strategic contribution of an HR audit is to understand if HR practices help or hinder organizational objectives. A, C, and D are incorrect. A is incorrect because understanding which policies need to be replaced may be an outcome of an HR audit but it does not rise to the level of a strategic contribution. C is incorrect because understanding if there is policy confusion is not a key strategic contribution. D is incorrect because updating leadership development is a tactical outcome

An organization is focused on developing an effective overall strategic plan. What are four critical questions to ask as part of the strategic planning process? A. How many key vacancies? Can we evaluate the job pool? How can we narrow the job pool? What is the timeline? B. Where are we now? Where do we want to be? How do we get there? How will we know if we are on track? C. What are our strengths? What are our weaknesses? What are our opportunities? What are our threats? D. What are the HR barriers? What are the HR opportunities? What resources do we need? What have we accomplished?

B. Where are we now? Where do we want to be? How do we get there? How will we know if we are on track? To begin the strategic planning process, the four key questions to ask are: Where are we now? Where do we want to be? How do we get there? How will we know if we are on track? These questions guide the strategic planning process from assessing the existing state of the organization through the point of developing objectives that help with plan execution. A, C, and D are incorrect. A is incorrect because this addresses only one aspect of HR and does not link to overall business strategy. The most effective HR strategic plans focus on the "big picture" first, and then align the functional areas such as recruitment as steps to achieving the overall plan. C is incorrect because these questions represent the SWOT analysis. It is true the SWOT analysis is a good tool to use but it is not the first key questions that are asked in developing a strategic plan. D is incorrect because these questions are narrowly focused and past tense. An effective strategic plan is forward-thinking and focuses on the overall organizational strategy.

As an HR leader, you are considering purchasing a software program that will automate the job analysis tasks for your compensation department. The cost of the software program, including service fees, is $300,000. When job classes are misclassified, the cost to the organization is estimated to average $3,000 per year, per employee. An average of 150 employees are misclassified every year. Over two years, the average reduces to 125 employees per year. In order to determine whether the benefit is worth the investment, you decide to do a return on investment (ROI) analysis. Which ROI calculation and result would apply in this case? A. ($750,000 - $300,000) / $300,000 = 150% B. ($450,000 - $300,000) / $450,000 = 33.3% C. ($450,000 - $300,000) / $300,000 = 50% D. ($750,000 - $450,000) / $300,000 = 100%

C. ($450,000-$300,000)/$300,000 = 50% A return on investment (ROI) analysis is calculated by subtracting the cost of the investment from the value of the investment and dividing the result by the cost of the investment times 100. The correct calculation and ratio is $450,000 - $300,000 / $300,000 = 50%. The result of this analysis indicates the investment is worthwhile because the benefit gained from purchasing this software program outweighs the cost of the new system. A, B, and D are incorrect. A is incorrect because the calculation of the purchase of the system is for only one year. B is incorrect because this calculation accounts for only one year both on the cost and benefit side of the equation. D is incorrect because the equation accounts for only one year of benefits at $450,000.

An organization's mid-range plans should be accomplished in: A. 3 to 5 years B. 5 to 7 years C. 1 to 3 years D. 6 to 12 years

C. 1 to 3 years The forecasting process is a period in which management considers the impact of anticipated changes over a period of time. Forecasts provide the information necessary for developing the vision, mission, and goals for the organization, which are needed by functional area managers to set tactical goals and action plans for their business units. Forecasts are created for short, mid, and long ranges. Long-range plans set the organization's direction for 3 to 5 years, mid-range plans can be accomplished in 1 to 3 years, and short-range plans will be achieved within 6 to 12 months.

. Rita filed a complaint with OSHA claiming her employer made a prima facie violation. How long must she wait for OSHA to issue a final order before she is allowed to file suit in US district court? A. 90 days from filing B. 1 year from filing C. 180 days from filing D. 2 years from filing

C. 180 days from filing Employers are prevented from taking unfavorable employment actions against employees as a result of the employee filing an allegation against the employer. This is part of a wider set of requirements known as whistle-blower protections. If an employee feels their employment status was unlawfully affected due to their filing an allegation, they can file a complaint with OSHA. This complaint must be filed within 90 days of the retaliatory action and include several pieces of information such as the employee's name, the company name, and prima facie evidence of the violation. If OSHA does not issue a final order within 180 days of filing, the employee may file suit in a U.S. district court. To be considered a prima facie violation, the following four elements must be included: • The employee was engaged in protected activity. • The employer knew or suspected that the employee was engaged in the protected activity. • The employee suffered an unfavorable employment action. • Sufficient circumstances existed to imply that a contributing factor to the unfavorable action was the employee's participation in the protected activity.

During the forecasting process, management must consider "impact to the organization" over set periods of time. Long-range plans are those which are of what length in duration? A. 2 to 4 years B. 1 to 3 years C. 3 to 5 years D. 6 to 12 months

C. 3 to 5 years Information gathered during an environmental scan is used to forecast future business circumstances so that the organization can take advantage of marketplace strengths and opportunities. During the forecasting process, management must consider the impact of changes that are anticipated to take place over the long term, mid term, and short term. Long-range plans set the organization's direction for 3 to 5 years, mid-range plans can be accomplished in 1 to 3 years, and short-range plans will be achieved within 6 to 12 months.

How long after the comment period has been completed is administrative law published and effective after the public notice? A. 60 days B. 90 days C. 30 days D. 91 days

C. 30 days After an agency develops rules or regulations and publishes them in the Federal Register, there is a period of time in which the public is allowed to comment. After this comment period, the agency publishes final rules or regulations which will take effect no later than 30 days after the date of public notice.

A technology company is considering the use of HR outsourcing as a way to help with the administrative HR burden of running a business. The CEO/Founder asked the HR department to shop and purchase an outsourced HRIS system for their department. What should be HR's first step in the outsourcing process? A. Create a request for a proposal. B. Define the budget. C. Analyze needs and define goals. D. Send RFP to chosen contractors.

C. Analyze needs and define goals A thoughtful needs analysis is the most critical and first step in the process. A, B, and D are incorrect. The organization's needs must be determined and specific goals identified before the steps identified in choices A, B, and D are taken.

Which of the following is a legal consequence of the Sarbanes-Oxley Act? A. Organizations are allowed to conduct their own stock appraisal. B. Shareholders are prevented from suing the company. C. CEOs may be punished, including jail time, for fraudulent financial reports. D. Audit firms must alternate every two years.

C. CEOs may be punished, including jail time, for fraudulent financial reports SOX brought criminal liability to the most senior manager in the organization. There is some personal incentive for the CEO to insist that employees behave and follow the rules.

What would be a plausible option the HR Manager could recommend to the CEO in response to the increase in healthcare costs? A. Company could freeze raises in order to cover increase in healthcare premiums. B. Company could no longer sponsor healthcare benefits. C. Company could raise out-of-pocket maximums. D. Company could freeze new hires in order to cover increase in healthcare premiums.

C. Company could raise out-of-pocket maximums This choice will be the least disruptive to the staff. A, B, and D are incorrect because these choices would negatively impact the staff and could be a possible retention risk.

A new safety law will have a significant impact on how the manufacturing lines of an organization operate. Which of the following actions would provide the most significant contribution to the organization's operating plan? A. Inform management of the new law and the implementation timeline. B. Create a list of business activities that can no longer be performed. C. Conduct a cost/benefit analysis and provide business recommendations. D. Create a memo informing the organization of the new regulation.

C. Conduct a cost/benefit analysis and provide business recommendations Conducting a cost/benefit analysis and providing business recommendations contributes significantly to the organization's strategic plan. Leaders can take information from a cost/benefit analysis and assign priority and take action accordingly. A, B, and D are incorrect. A is incorrect because simply informing management of the new law does not adequately provide a significant contribution to the strategic plan. B is incorrect because providing a list of business activities that can no longer be done (also called a don't do list) stops short of a significant contribution to the organization's strategic plan. D is incorrect because creating a memo informing the organization of a new law alone is not a significant contribution to the strategic plan. It is not enough.

The sale, liquidation, or separation of a division, unit, or subsidiary is an example of what kind of business transition? A. Start-up B. Acquisition C. Divestiture D. Merger

C. Divestiture A divestiture occurs when an organization wants to spin-off a division into its own separate entity, or closes down a division and liquidates any remaining assets. A, B, and D are incorrect. A is incorrect because a start-up is a company that starts from the ground up with no resources from an existing corporate relationship. B is incorrect because an acquisition refers to an organization that purchases another company. D is incorrect because a merger refers to when two companies join together as one company.

Which of the following is not information that would be collected as part of the due diligence process for the legal compliance aspect? A. COBRA notices and participants B. Active FMLA leaves C. EEO-1 reports D. OSHA compliance

C. EEO-1 reports Performing due diligence is a risk management duty performed by HR professionals. Information collected during due diligence can be organized under seven categories: documents, compensation, policies and procedures, equal opportunity compliance, legal compliance, labor compliance, and legal exposure. There are many aspects to review in order to obtain a complete picture of the employment practices of the target company. The types of information to be collected as part of the due diligence process include the following: • Documents: Names of all employees and their locations; Offer letters; Employment contracts; I-9 forms and visa documentation; Benefit plans • Compensation: Hourly wage rates by job; Salary schedules; Number of employees in each position • Policies and procedures: Policy manual; Employee handbook; Supervisor/manager handbook • Equal opportunity compliance: EEO-1 reports; Affirmative Action Plans (if required); Government notices of compliance activity • Legal compliance: COBRA notices and participants; Active FMLA leaves; WARN compliance; OSHA compliance • Labor relations: Collective bargaining agreements; Ongoing negotiations; Union activity; Grievance history and outstanding grievances • Legal exposure: Pending or resolved sexual harassment claims; Termination disputes; Violations of state or federal laws; Active workers' compensation claims The question is specific to the legal compliance aspect, which does not include EEO-1 reports.

. What budgetary activity does HR participate in to achieve a measurement of the value of an organization's human resources? A. Compensation reviews B. Payroll cost analysis C. Human capital projecting D. Human resources strategic review

C. Human Capital Projecting Human capital projecting is the budgetary activity that human resources participates in to try to measure what value the people employed by the organization hold. This measure uses elements of the human capital management plan to identify what competencies the current workforce holds and then analyzes the current skillsets compared with skillsets needed. Once a gap is realized, a plan is created to develop the necessary competencies among the workforce.

Over 50 percent of the employees of a fast food chain of restaurants are parttime employees. Historically, the company offered health insurance benefits to anyone who worked 25 or more hours per week. Because of an increase in premiums, the company has decided to no longer offer this benefit. As the HR Director, how would you be of most assistance to the company? A. Advise the executive team to increase prices to customers or reduce profits to shareholders but maintain this benefit because keeping it would prevent a decline in employee morale. B. Locate health insurance options and provide this information to affected employees. C. Identify the employees affected; craft the type, mode, and timing of communications to the employees; prepare a recruiting strategy to fill positions if there is significant attrition. D. Set up a group session where affected employees can ask questions and gather information on other resources that can help offset the cost of health insurance.

C. Identify the employees affected; craft the type, mode and timing of communications to the employees; prepare a recruiting strategy to fill positions if there is a significant attrition The decision has already been made that this benefit will be eliminated. You can assume that the cost versus the potential loss of staff and brand loyalty from the community has already been considered, and it was determined that the elimination of the benefit is still in the company's best interest. At this point, HR's best support to the company is to strategically minimize the impact of any negative backlash by carefully crafting the content of any employee communication, determining how the communication will be delivered (in person, e-mail, intranet, mailers, and so on), and coordinating the timing of the communication. In addition, HR should prepare for the inevitable, which is that some will leave who need the level of insurance coverage offered by the company in favor of companies who still offer a comparable benefit to part-time workers. A, B, and D are incorrect. A is incorrect because, as stated before, the decision has been made and one can assume from the question that the pros and cons have been weighed. Advising the executive team to consider these options should have already taken place. B and D are incorrect because both options would likely happen after communicating the changes, as stated in choice C.

. During which stage of the strategic planning process are the tactical goals developed? A. Strategy Evaluation B. Formulating the Strategy C. Implementing the Strategy D. Environmental Scan

C. Implementing the Strategy The model used during the strategic planning process can vary by organization but will contain elements from four broad categories: environmental scanning, strategy formulation, strategy implementation, and strategy evaluation. The environmental scan answers the question, "Where are we now?" by use of internal and external scans. These scans include statistical models, SWOT analysis, PEST analysis, and Porter's 5 forces. Strategy formulation answers the question "Where do we want to be?" and requires work towards developing a vision, mission, corporate values, and corporate goals. Strategy implementation answers the question "How do we get there?" by developing tactical goals, budget, action plans, and executing the plan. Strategy evaluation is just that -- an evaluation of the strategy which was used. Sometimes adjustments are needed, moving the process back to the formulation stage. Before any of these stages can take place, there is one important stage that starts the process: the preplanning stage. This sets the stage for success, reduces errors in the planning process, and ensures commitment from leaders.

An employee has brought a possible ethical violation to the HR Director involving a sales colleague selling company data to competitors. What is the best course of action the HR Director should take in this situation? A. Put employee on leave of absence until it is safe to return to work. B. Speak to the employee's manager to see if they can provide additional information. C. Inform the employee's manager of the suspected violation and ensure that an investigation is initiated. D. Put the employee in question on a performance improvement plan for selling company data.

C. Inform the employee's manager of the suspected violation and ensure that an investigation is initiated The employee's manager should be informed and an investigation begun to find out if the alleged activity took place. A, B, and D are incorrect. A is incorrect because putting the employee on leave of absence could be seen as retaliation for voicing an ethical concern. B and D are incorrect because these choices would not be beneficial to the company or the employees.

The CEO has asked that you chair the legislative advocacy committee of the organization. What is a key strategic advantage for an organization involved in legislative advocacy matters? B. Training programs will meet changing legislative compliance requirements. C. Proactively identifying threats and opportunities enables a competitive advantage. D. The organization will be knowledgeable in what is legal versus illegal activity.

C. Proactively identifying threats and opportunities enables a competitive advantage A key strategic advantage of getting involved in legislative matters is that it provides a proactive approach to identifying threats and opportunities, ultimately leading to a competitive advantage. A, B, and D are incorrect. A is incorrect because keeping updated policies and procedures is tactical in nature and does not provide a significant strategic advantage. B is incorrect because keeping updated training programs is tactical and reactive. D is incorrect because becoming knowledgeable in what is legal and illegal, while important, is tactical and is not a key strategic advantage.

You have been asked to review and recommend if it is appropriate to purchase an employment practices liability insurance (EPLI). Which of the following is a key advantage of having EPLI coverage? A. To replace burdensome and complex human resource practices B. To replace the employee handbook and any related procedures C. Protection when litigating and settling wrongful discharge lawsuits D. Protection when employees enforce their rights under Federal law

C. Protection when litigating and settling wrongful discharge lawsuits Employment practices liability insurance typically covers litigating and settling wrongful discharge and discrimination lawsuits. A, B, and D are incorrect. A is incorrect because employment practices liability insurance does not replace human resource policies and procedures. B is incorrect because employment practices liability insurance does not replace a handbook. Typically, the insurance company will want to review the employer's handbook as part of the vetting process. D is incorrect because employment practices liability insurance does not prevent employees from exercising their rights under federal law such as FLSA and ERISA.

A food service company provides dining services at a university with a leading agricultural program. Which of the following strategic partnerships would support the sustainability of the company's contract with the school and potentially help in recruiting and retaining future staff? A. Work through the career services department to recruit on campus. B. Offer discounted dining services to students in the agricultural program. C. Purchase food from the school's agricultural program and offer internships to students. D. Promote a fitness program on campus and allow students to observe operations.

C. Purchase food from the school's agricultural program and offer internships to students Purchasing food from the agricultural program is beneficial to all stakeholders—students, the university, and the food service company. The university earns revenue, which it can reinvest in the program to sustain its ability to remain a highly respected program, which, in turn, has the potential to increase enrollment. If the food service company also offers internships to students of the agricultural program, the company can use this opportunity to train future talent in the company's way and it allows the company to hinternship program on board, it is likely that they will remain committed employees and have a longer tenure. A, B, and D are incorrect because although they all present good strategic moves, none are as strong as the strategic partnership formed by utilizing the university as a food supplier and employing the university's students. ave an extended interview of these candidates. If HR decides to bring graduates of the

Which of the following is an example of an objective of a human capital management plan (HCMP)? A. Hire an IT Recruiter with expertise in sourcing candidates with telecommunications experience. B. HR will improve the retention rate of new hires. C. Reduce time to hire. D. Hire 40 new programmers by September 1.

C. Reduce time to hire Reduce time to hire would be an objective of an HCMP. A valuable HCMP has at least six components: a statement of strategic direction, goal, objective, actions needed to reach the goal, method/mode of communicating goal to organization, and a way to measure the success of the plan. A, B, and D are incorrect. A is incorrect because this is an example of an action that would be taken to achieve a stated objective of reducing time to hire. B is incorrect because this is an example of a goal of an HCMP. D is incorrect because this is an example of the measurement component of an HCMP.

Which of the following actions taken by HR Manager Chris is the most ethical? A. Working exclusively with a technical contracting agency for the IT group to qualify for a random prize drawing for customers B. Not standing up and voicing displeasure about a discriminatory decision made by a superior C. Referring a qualified friend for a vacant position at the company D. Deleting low-paying companies from salary survey results of HR positions

C. Referring a qualified friend for a vacant position Suggesting a friend apply for a job opening at the employer's organization is perfectly ethical. It even demonstrates a willingness to support the employer as a good place to work.

An organization is preparing for a strategic planning session. The main goal is to have a comprehensive strategic plan that projects two to three years into the future. The challenge is that with the uncertain economic recovery, there are many unknown forces that can affect the organization making the future unpredictable. You are expected to facilitate a workforce planning discussion with the leadership team to identify economic, social, political, and technology trends and explore the implications of projecting them two to three years in the future. Which strategic planning method would you most likely use to lead this discussion with the leadership team? A. SWOT analysis B. Needs assessment C. Scenario planning D. Balanced scorecard

C. Scenario Planning Scenario planning is a good method that allows a leadership team to consider multiple probabilities. Once multiple probabilities are identified, the leadership team can establish a plan for each of those possibilities. A, B, and D are incorrect. A is incorrect because the SWOT analysis is used to identify current strengths, weaknesses, opportunities, and threats. It does not project into the future possible scenarios and implications. B is incorrect because a needs assessment addresses current challenges and needs. It does not project into the future. D is incorrect because a balanced scorecard is a strategy performance management tool that is used to monitor progress toward organizational objectives.

An organization has completed an analysis of the number of employees that report to each supervisor. As a cost saving measure, the organization increased the number of employees that report to each supervisor, thus eliminating several manager roles. The analysis conducted is referred to as: A. Headcount reporting B. Budget planning C. Span of control D. FTE modeling

C. Span of Control Span of control is the analysis of how many employees report to each supervisor. This analysis can provide insight to possible cost savings and supervisory effectiveness. A, B, and D are incorrect. A is not correct because headcount reporting generally counts people per department. This is not the best way to determine how many employees report to each supervisor. B is not correct because the analysis described in this question may be an action leading to budgeting, but is not the budget analysis alone. D is not correct because FTE modeling refers to an analysis that provides multiple scenarios for staffing purposes. FTE modeling is not the same as span of control analysis.

Senior leadership of a toy manufacturer encourages employees to be active participants in their local communities. With this in mind, which of the following is the type of activity they would support? A. Establishing a charitable foundation B. A matching gifts program C. Staff participation in a walk for cancer research D. Donating toys to the Grant Wishes foundation

C. Staff participation in a walk for cancer research Supporting employees in a walk for cancer research is consistent with the company's position on community involvement. A, B, and D are incorrect because all three choices are types of ways the company could support charitable organizations but none are originated by employees. The company's position on community involvement is that employees should take the initiative to be a volunteer in their communities.

Management skills have been identified over a long period of time through the work of A. Various universities around the country and their studies of manufacturing plants B. Various consulting firms across the country and their studies of university environments C. Studies such as the Management Progress Study conducted by American Telephone and Telegraph beginning in 1956 and continuing over the next 30 years D. IBM's study of management individuals that lasted for 35 years

C. Studies such as the Management Progress Study conducted by American Telephone and Telegraph beginning in 1956 and continuing over the next 30 years It was the psychologists at AT&T that gathered data about management skills over a 30+ year period of time. They identified characteristics of successful managers in the process.

An organization is acquiring another company to improve its competitive advantage. You are asked to put together and lead a due diligence task force. Which of the following is a key capability of the task force in ensuring success in the due diligence process? A. The ability to create metrics and a balanced scorecard B. The ability to assess your company's marketing strategy C. The ability to thoroughly evaluate another company D. The ability to evaluate your company's financial statements

C. The ability to thoroughly evaluate another company The success of a due diligence team rests on its ability to evaluate another company. Factors such as leadership, culture, risk, and resources are critical for the due diligence process. Uncovering those factors about another company is essential for the due diligence success. A, B, and D are incorrect. A is incorrect because developing a balanced score card is not relevant to the due diligence process. If anything, a balanced scorecard may be developed after the acquisition took place to ensure that organizational performance is on track. B is incorrect because a marketing plan is not relevant to the due diligence process. Marketing may apply strategy during and after an acquisition has taken place to inform and align customers with new changes. D is incorrect because while understanding financial statements is important, it is critical to understand the financial statements of the company being purchased.

Because of market changes, an organization wants to shift its direction and implement a new strategic plan. The new strategic plan will help the organization exceed net revenue goals. However, the plan is complex and hard to understand. There are concerns that the employees will not understand it, let alone see their role in the plan. As the HR leader, you are asked to provide recommendations and ultimately develop and facilitate the organization-wide communication. What is the first key component of the strategic plan that you should evaluate for clarity and effectiveness? A. The five-year forecast B. The market analysis C. The goals and objectives D. The business description

C. The goals and objectives Clearly articulated goals and objectives would overcome any complex business plan. Employees can see their role in new strategies when goals and objectives are clearly communicated. A, B, and D are incorrect. A is incorrect because a five-year plan would still need goals and objectives for employees to remain engaged. B is incorrect because a market analysis, while good information, does not necessarily connect employees to the overall objectives. D is incorrect because the business description does not connect employees with the big picture.

Which of the following is not considered an ADR? A. Peer review panel B. Mediation C. Third-party legal counsel D. Arbitration

C. Third-party legal counsel Alternative dispute resolution (ADR) covers a range of methods used to solve disagreements without litigation. These alternatives are often able to resolve problems with less animosity than occurs when a lawsuit is filed, and at far less cost to the parties. Several different ADR methods can be used in resolving disputes before they reach the level of court action, including arbitration, mediation, peer review panels, and constructive confrontation.

As an HR leader of an organization, you have chosen to evaluate the effectiveness of an existing recruitment outsourcing arrangement. Which of the following is the best way to measure a return on investment of the recruitment outsourcing arrangement? A. Track and analyze metrics that measure the skill of an applicant pool. B. Track and analyze metrics that measure the workplace diversity. C. Track and analyze metrics that measure cost and quality per hire. D. Track and analyze metrics that measure succession planning.

C. Tract and analyze metrics that measure cost and quality per hire : Assessing the effectiveness of a recruitment outsourcing arrangement can be done by measuring cost-per-hire and quality of hire. Cost-per-hire metrics can be used to compare and contrast the return on investment for the recruitment source. A quality of hire metric can assess the level of competent and high potential candidates being sourced through this arrangement. A, B, and D are incorrect. A is incorrect because measuring the applicant pool will not necessarily provide effective assessment of the recruitment outsourcing firm. B is incorrect because measuring workplace diversity does not adequately reflect the effectiveness of a recruitment firm. D is incorrect because a succession plan is not relevant to the effectiveness of a recruitment firm.

In which year was the Sarbanes-Oxley Act enacted? A. 1999 B. 2001 C. 2004 D. 2002

D. 2002 The Sarbanes-Oxley Act (SOX) was enacted by Congress in 2002. This was done in response to the scandals caused when corporate executives at Enron and WorldCom failed to meet their fiduciary responsibilities. Changes brought by the enactment of SOX include: Established the Public Company Accounting Oversight Board (PCAOB) and required all public accounting firms to register with the board, which conducts periodic inspections to ensure their compliance with audit standards. Established new standards to ensure the independence of auditors relative to the businesses they audit, including restrictions on non-audit-related services such as bookkeeping, management, human resource consulting, or other similar services; rotation of audit partner assignments at least every five years; and a requirement that the audit report and recommendations to the management team be delivered directly to the audit committee of the BOD. Established standards for corporate responsibility, holding the chief executive of a public company accountable for the fairness and accuracy of financial reports filed with the Securities and Exchange Commission (SEC). Required CEOs and CFOs to reimburse the company for incentive- or equity-based compensation in the event of a material restatement of financial reports to the SEC caused by misconduct. Prohibited insider trading of stock during pension fund blackout periods when employees aren't able to trade the stock in their pension accounts. Established ethical requirements for senior financial officers. Took steps to ensure the fairness, accuracy, and independence of stock analysis.

A regulatory agency has proposed a new rule that will significantly impact your organization. You are developing a proactive advocacy plan to effectively influence the proposed new rule. Which of the following actions will most likely be included in the advocacy plan? A. Wait before taking action until the regulatory agency has issued a final rule. B. developing policies and procedures that support the new rule. C. Develop a "get out the vote" campaign encouraging employees to vote. D. Actively participate in the public hearings providing clear comments.

D. Actively participate in the public hearings providing clear comments Actively participating in the public hearings and providing clear and concise comments form a proactive strategy for an advocacy plan. A, B, and C are incorrect. A is incorrect because waiting before taking action until the regulatory agency has issued a final rule is not proactive and not effective for an advocacy plan. B is incorrect because developing policies and procedures that support the new rule is not a proactive strategy. C is incorrect because voting is not part of a regulatory rule-making process.

Mikayel is the shipping and receiving manager at your Russian parts plant. He has experienced problems with getting shipments through Customs for timely delivery to the United States. His contact at Customs informs him that he can expedite the shipments if Mikayel would pay him a gratuity for his service in cash. Your organization's ethics clearly state that bribes are considered unethical behavior; however, this "gratuity" seems to be in the best interest of the organization. What is your best course of action? A. Authorize Mikayel to make the payments out of petty cash. B. Report the bribe incident to the local Russian Customs head officer. C. Ask executive management for "special outside-of-policy" authorization. D. Adhere to the organization's no-bribe ethics policy and seek other solutions for the shipment delay issue.

D. Adhere to the organization's no-bribe ethics policy and seek other solutions for the shipment delay issue A bribery demand is not only a violation of the company's policy but also a violation of the Foreign Corrupt Practices Act of 1997. To pay such a bribe could be a criminal act under federal law.

. Who is required to register with the Public Company Accounting Oversights Board? A. All public companies B. All corporations with in-house accounting C. All organizations with in-house accounting D. All public accounting firms

D. All public accounting firms The Sarbanes-Oxley Act (SOX) was enacted by Congress in 2002 in response to the Enron and WorldCom scandals and works to ensure the accuracy and fairness of financial reporting for public companies and its specific requirements for key executives and board members. One of the changes made by SOX was to establish the Public Company Accounting Oversight Board (PCAOB) and to require all public accounting firms to register with the board, which conducts periodic inspections to ensure their compliance with audit standards

One of the corporate values of a cable TV company is to provide best-in-class customer service. Which of the following goals would you consider characteristic of this organization? A. Always refer customers with problems to a supervisor. B. E-mail a survey to every customer. C. Award every one hundredth customer with a coupon for free premium channels. D. Answer customer calls within two rings with a live person and resolve customer issue in one phone call.

D. Answer customer calls within two rings with a live person and resolve customer issues in one phone call. Customers appreciate quick, accurate, and thorough resolutions to issues. Answering their phone calls quickly, allowing them to talk to a live person as opposed to an automated system, and resolving any issue in that first call would all be characteristic of a company that wants to be a top-notch customer service organization. A, B, and C are incorrect. A is incorrect because customers expect that a world-class customer service organization would have first line responders who are able to resolve their issues without escalation. B is incorrect because e-mailing a survey has very little to do with the overall customer experience. C is incorrect because it is gimmicky and because giving away free items after the fact doesn't ensure that the customer's overall experience was positive.

An organization is restructuring to become more flexible so it can adjust faster to market conditions. Which of the following is a proactive strategy that would assess the ability to succeed through this organizational change? A. Preparing leadership development courses B. Creating metrics and a balanced scorecard C. Preparing a recruitment plan for possible turnover D. Assessing organizational readiness for change

D. Assessing organizational readiness for change Assessing an organization's readiness for change is a proactive approach to major restructures. This enables HR to understand where the potential barriers and opportunities are to success before any major changes commence. A, B, and C are incorrect. A is incorrect because preparing leadership development courses, as a stand-alone initiative is not proactive or connected to the overall organizational objectives. B is incorrect because developing metrics alone is not a proactive approach to supporting the overall organization objectives of restructuring. C is incorrect because preparing a recruitment plan alone is not connected to the overall objectives and need to restructure.

New hire orientation surveys reveal that customer service representatives at a wireless communications company leave training excited about their new jobs and the company as a whole. After three months of employment, confidential surveys reveal that the same representatives feel unequipped to do their jobs effectively and begin to search for new employment. As the HR Director, what strategy would you implement to reduce the significant change in employee engagement? A. Establish follow-up training sessions to refresh skills learned during new hire orientation. B. Form a task force of new and seasoned employees with the goal of implementing periodic team-building activities to keep new hires engaged. C. Establish a career-path program with the goal of providing new hires with opportunities for advancement to keep them engaged. D. Collaborate with department supervisors to develop, implement, and enforce a post new-hire orientation on-boarding plan.

D. Collaborate with department supervisors to develop, implement, and enfforce a post new-hire orientation on-boarding plan The best solution to this issue is to collaborate with supervisors so you gain their commitment in establishing a full onboarding program. The onboarding program should include department supports, possibly mentors for each new hire, periodic reviews of how to handle customer calls, coaching, and so on. All the activities of the onboarding program should be focused on providing effective supports to each new hire. A, B, and C are incorrect. All of these activities are good elements of building a positive company culture and encouraging employee engagement; however, the new customer service representatives in the scenario specifically report that they did not feel like they had the tools necessary to do their jobs effectively. A successful onboarding program would best address these concerns.

Quality versus production costs is an example of the corporate responsibility considerations for which of the following forces? A. Technology B. Social C. Economic D. Competition

D. Competition Porters forces include Political/Legal, Economic, Social, Technology, and Competition. Examples of Corporate Responsibility Considerations for each force include: Political/Legal American labor laws Economic Skill set of the labor force population Social Often driven by trends such as: Sustainability, Disaster Response, and Corporate Governance Technology Worker privacy Data protection Security of confidential information Competition The global market Quality vs. production cost The values of the suppliers

In the third step of Donald Kirkpatrick's How to Manage Change Effectively, what should HR do next to effectively manage the change process? A. Conduct focus groups with employees to inform them of the new healthcare provider. B. Conduct focus groups to ask employees whether they prefer an increase in health costs or a decrease in wages. C. Conduct focus groups to ask employees if they know of any outsourcing/healthcare providers. D. Conduct focus groups with employees to discuss concerns about changing healthcare providers.

D. Conduct focus groups with employees to discuss concerns about changing healthcare providers The third step is discussing alternatives and probable reactions. The key here is that HR conducts the focus groups to discuss concerns and questions. A, B, and C are incorrect. A is incorrect as this step includes discussing alternatives and possible reactions but does not inform staff of the change. B and C are incorrect because these choices would not benefit the employees or the company as the decision would be made by top management; it is not the employee's place to make the decision.

. The matrix type of organizational structure is uniquely suited to managing a group of activities that are: A. Narrow and interrelated B. Narrow in focus and unrelated C. Diverse and unrelated D. Diverse and interrelated

D. Diverse and interrelated Matrix organizations allow for great flexibility and quick reaction to outside changes.

A credit card organization has established a balanced scorecard approach to monitoring its performance. The latest scorecard is distributed among leadership. The results show that financial perspective is not meeting targets, the customer perspective is not meeting targets, the internal processes perspective is meeting targets, and the learning and growth perspective, measuring training participation rates, is meeting target. What action would you take that would contribute significantly to the balanced scorecard and overall organizational effectiveness? A. Establish a recruitment plan that screens and hires only those who have financial and customer service knowledge. B. Create and implement mandatory customer service training, track attendance, and report training results on the scorecard. C. Evaluate cost-cutting options such as overtime abuses, staffing levels, and pay practice usage to help meet financial targets. D. Evaluate the effectiveness of the existing measures, align with organizational objectives, and communicate new measures.

D. Evaluate the effectiveness of the existing measures, align with organizational objectives, and communicate new measures Relevant key performance measures are critical to an effective balance scorecard. In this case, evaluating the effectiveness of the existing measure, aligning with organizational objectives, and communicating new measures are the best actions to take. A, B, and C are incorrect. A is incorrect because establishing a recruitment plan is an action after the fact. It is not the action that enables an effective balanced scorecard. B is incorrect because mandatory customer service training is an after-the-fact action, but does not contribute to an overall effective balanced scorecard. C is incorrect because implementing cost-cutting measures will not significantly contribute to the balanced scorecard and overall organizational effectiveness.

Financial contributions from the HR department are important because A. Training and staffing are the easiest areas to cut and gain back budget. B. Executives expect the HR department to be the most flexible in budget terms. C. There is little impact from reducing the HR department's budget. D. Every strategic decision must contribute to the financial performance of the organization.

D. Every strategic decision must contribute to the financial performance of the organization It is not just a matter of budget dollars, but the contribution they make toward the organizational "bottom line."

One of the organization's top objectives is to improve operational efficiency house-wide. The HR department manages open enrollment for annual benefits selection for 10,000 employees annually. Which of the following would be the best way to improve efficiency for the open enrollment process? A. Assume there will be no changes in benefit selections. B. Start the open enrollment process earlier in the year. C. Reduce how many dependents can enroll in benefits. D. Implement an employee self-service system approach.

D. Implement an employee self-service system approach Technology has come a long way in terms of supporting the open enrollment process. A self-service approach enables employees to log into a computer system from the privacy of their own homes and make whatever benefit selections that appeal to them. This saves the Human Resource department the time-consuming work of manually processing paperwork. A, B, and C are incorrect. A is incorrect because assuming no changes in benefits from year to year is not practical. This is especially true as organizations shift their benefits offerings to meet organizational objectives. As such, employees most likely have decisions to make in what benefit options work for them. B is incorrect because no matter what time open enrollment starts, the paperwork associated with the process is time consuming. C is incorrect because reducing dependents from benefits is a decision that may relate to costs but not to efficiency. It is not the most effective way to become efficient in processing open enrollment.

A high level manager at a public company releases confidential earnings information to his brother-in-law. The brother in-law acts on this information and buys shares in the company. This is an example of what? A. Kickback B. Bribe C. Payoff D. Insider trading

D. Insider Trading Insider trading is the trading of a public company's stock or other securities by individuals with access to non-public information about the company. A, B, and C are incorrect. These are other types of ethical issues that may arise from time to time in an organization.

You are developing a business case to achieve leadership buy-in on establishing a code of ethics in the organization. What is a key strategic advantage of having a code of ethics? A. It will minimize employee complaints, grievances, and turnover. B. The organization will be less likely to be sued by customers and employees. C. It will minimize ethical issues the human resource department addresses. D. It will enable a positive reputation and the ability to expand market share.

D. It will enable a positive reputation and the ability to expand market share An organization that has a code of ethics and is committed to it can build a positive reputation and obtain the ability to expand market share as a result. A, B, and C are incorrect. A is incorrect because while it is important for employees to know how to handle ethical situations, it does not provide a strategic advantage. B is incorrect because avoiding lawsuits, while desired, is not a strategic advantage. C is incorrect because reducing ethical issues for the Human Resource department does not provide an overall strategic advantage.

A statement that describes what the organization does and its customer base is a: A. Vision statement B. Statement of position C. Lofty statement D. Mission statement

D. Mission Statement A mission statement contains a description of both organizational products/services and the customer base for which it exists.

Complex project management is made easier through the use of A. PARK/ITEM planning charts B. Gaunt PERK planning charts C. PACK/CWA planning charts D. PERT/CPM planning charts

D. PERT/CPM Planning Charts Program Evaluation and Review Technique charts handle multiple project requirements and can be enhanced by the Critical Path Method in visual charts.

The finance department has launched a new approval process for anticipated capital expenses for the new budget year. Which of the following will most likely be included in that process? A. The payment of a building monthly lease B. One time purchase of training materials C. Anticipated payroll for the next fiscal year D. Purchase of computers and laser printers

D. Purchase of computers and laser printers A capital expenditure includes acquiring or upgrading assets such as equipment, property, or buildings. Capital expenses are long-term investments in which money is typically paid up front. A, B, and C are incorrect. A is incorrect because capital expenditures do not include day-to-day expenses such as lease payments. B is incorrect because training materials are considered day-to-day expenses and do not qualify as a capital expenditure. C is incorrect because payroll is considered a day-to-day expense and does not qualify as a capital expenditure.

When the AB Trucking Co. makes its organizational changes, it plans to alter its reporting relationships. If it elects to have each supervisor report to an operations manager and also to a financial manager, what type of organizational structure will AB Trucking Co. be using? A. Formalized. A firm structure that can be charted, regardless of how many reporting lines exist from one job to another. B. Matrix. A perfect example when multiple reporting relationships exist for certain jobs. C. Span of control. The span of control will be exceedingly easier to manage with multiple reporting relationships. D. Work specialization. Because there are multiple reporting relationships, the specialization of each will increase.

B. . Matrix. A perfect example when multiple reporting relationships exist for certain jobs. Matrix structures involve multiple reporting relationships.

During the forecasting process, short-range plans are consistent with what duration of time? A. 1 to 6 months B. 6 to 12 months C. 1 to 3 years D. 3 to 5 years

B. 6 to 12 Months Information gathered during an environmental scan is used to forecast future business circumstances so that the organization can take advantage of marketplace strengths and opportunities. During the forecasting process, management must consider the impact of changes that are anticipated to take place over the long term, mid term, and short term. Long-range plans set the organization's direction for 3 to 5 years, mid-range plans can be accomplished in 1 to 3 years, and short-range plans will be achieved within 6 to 12 months.

A balance sheet shows: A. Historical budgeting B. Amount of equity owned by investors C. Taxes paid last year D. The income and expenses over a defined period of time

B. Amount of equity owned by investors Balance sheets show assets, liabilities, and owner's equity

Which of the following must align with the human capital management plan in order to be effective and creditable? A. Financial measures B. Corporate strategy and goals C. Local policy D. Developed by employees

B. Corporate strategy and goals A human capital management plan (HCMP) is created as a result of the strategic planning process developing tactical goals and action plans to meet the needs of the organization. It answers the same four questions addressed during the strategic planning process previously described: Where are we now? Where do we want to be? How will we get there? How will we know when we arrive? To be effective and credible, the HCMP must align with the corporate strategy and goals and help achieve the desired business results.

. A tech startup company has just received funding to begin business operations. What is the main risk that a company could face without composing a mission and vision statement? A. Employees will leave the company. B. Waste time and resources. C. Go out of business. D. No clear direction for the future.

C. Go out of business Going out of business can occur when a company has no mission and vision statement. It is also the biggest risk to investors and employees. A, B, and D are incorrect because these are possibilities but not the greatest risk to the company.

Taylor is the Quality Assurance director at her organization and reports to both the Division VP at her facility and the VP of Quality Assurance located at the headquarters office. This is an example of what type of organizational structure? A. Span of control B. Formalized C. Matrix D. Chain of command

C. Matrix When the organization calls for reporting to two or more supervisors, the organization is known as a matrix organization

Colin is the HR manager at a tax preparation firm. During the tax season, Colin contracts with a temporary agency for seasonal help. The seasonal workers receive payroll checks from the temporary agency and not Colin's organization. What type of contract will Colin sign with the temporary agency for the seasonal workers? A. Temporary contract B. Seasonal contract C. Third-party contract D. Direct contract

C. Third-party contract Because Colin doesn't contract directly with the employees, he instead contracts with a third party for the services of the employees.

Which of the following is not part of a SMART goal? A. Relevant B. Strength C. Time bound D. Measurable

B. Strength SMART goals and objectives are Specific, Measurable, Attainable, Relevant/Realistic, and Time Bound. Strength is not included in the list.

The process of analyzing and identifying the need for availability of human resources so that the organization can meet its objectives is known as: A. Strategic planning B. PEST analysis C. Human resource planning D. Organization planning

C. Human Resource Planning Human resource planning involves all facets of people management issues. Forecasting the need for more or fewer people, budget considerations, and recruiting sources comes into play. How HR can be used to support the organization's strategic plans is critical.

A strategy that focuses on launching a new line of business would most likely occur at which stage in the organization's life cycle? A. Maturity B. Startup C. Growth D. Rebirth

D. Rebirth When organizations move past maturity and enter the rebirth phase of existence, they begin actively assessing their structure and lines of business.

. Corporate executive leadership is headed by which of the following persons? A. CFO B. CEO C. CIO D. COO

B. CEO Each of these answer choices represents a member of the executive management team usually found at a corporation. These positions are often referred to as C-levels due to their titles beginning with the word "Chief." The Chief Executive Officer, or CEO, is the individual that leads this team. Other members include the Chief Financial Officer, Chief Information Officer, Chief Legal Officer, and Chief Operating Officer.

A long-range plan sets an organization's direction for what period of time? A. 3 to 5 years B. 1 to 3 years C. 6 to 12 months D. 3 to 7 years

A. 3 to 5 years Information gathered during an environmental scan is used to forecast future business circumstances so that the organization can take advantage of marketplace strengths and opportunities. During the forecasting process, management must consider the impact of changes that are anticipated to take place over the long term, mid term, and short term. Long-range plans set the organization's direction for 3 to 5 years, mid-range plans can be accomplished in 1 to 3 years, and short-range plans will be achieved within 6 to 12 months.

Which regulatory agency is responsible for enforcing the Americans with Disability Act (ADA) of 1990? A. The National Labor Relations Board (NLRB) B. The Occupational Safety and Health Administration (OSHA) C. Securities and Exchange Commission (SEC) D. The Equal Employment Opportunity Commission (EEOC)

D. The Equal Employment Opportunity Commission (EEOC) Regulatory agencies will enforce and provide clarity on particular laws. In this case, the Equal Employment Opportunity Commission (EEOC) enforces the Americans with Disability Act of 1990 among others, such as Title VII of the Civil Rights Act and the Equal Pay Act. A, B, and C are incorrect. A is incorrect because the National Labor Relations Board (NLRB) oversees and enforces union-related matters such as elections and unfair labor practices (ULPs) in the private sector. B is incorrect because the Occupational Safety and Health Administration (OSHA) enforces health and safety requirements in the workplace. C is incorrect because the Securities and Exchange Commission (SEC) enforces the federal securities laws and regulates the securities industry and the U.S. stock and options exchanges.

Elton has hired a consultancy firm to perform an environmental scanning on his organization. The report comes back indicating that a global competitor is moving into a state where Elton's company has existed for decades. Elton should present this information to executive management as a(n): A. Opportunity B. Weakness C. Strength D. Threat

D. Threat Competition constitutes a threat to the company. During strategic planning and SWOT analysis, all perceived threats should be considered seriously.

As an HR leader, you are participating in the organizational strategic planning process. Which of the following is one of the key strategic advantages of ensuring close alignment between HR and the overall business strategy? A. Strengthens benefits and compensation strategies and creates an avenue of understanding of direction and adjustments. B. Strengthens employee and labor relations ability to understand the organization's direction and to respond swiftly to changes. C. Strengthens recruitment ability to know of key position vacancies and respond swiftly to talent acquisition changes and needs. D.Strengthens the organization's ability to anticipate and respond to customers, ultimately enabling the organization to maintain a competitive advantage.

D. Strengthens the organizations ability to anticipate and respond to customers, ultimately enabling the organization to maintain a competitive advantage. Human Resources has the ability to contribute to the overall strategic plan by providing human capital information, implications, and workforce environmental scanning information that can enable an organization to become competitive through its workforce. So the key advantage of alignment between HR and the overall business strategy is that it strengthens the organization's ability to anticipate and respond to customers, ultimately enabling the organization to maintain a competitive advantage. A, B, and C are incorrect. A is incorrect because compensation and benefits planning is a tactical benefit of aligned strategic planning. B is incorrect because employee and labor relations are a tactical benefit of planning versus a strategic benefit. Tactical benefits yield a minimal return on investment versus a strategic benefit. C is incorrect because, like answer B, recruitment is a tactical benefit versus a strategic benefit. The key question to ask in any HR strategic planning is "How will the organization and its customers benefit?"