Business Acumen
A talent acquisition specialist needs to provide an analysis that explores hiring and turnover trends across demographics, performance levels, and promotion histories. Which is the best tool to obtain this information?
OLAP applications have the ability to produce a time series illustrating trends while also comparing multiple sets of data within one report. The other responses would provide only some of the necessary data, and additional analysis would be required. CORRECT Online analytical processing (OLAP) HRIS Employee personnel file Knowledge management system
Refer to the following scenario for the next 4 questions. A clothing retail company in business for over three years has three locations in a popular beach resort area. There are similar retailers in the same area competing for both the customers and labor pool. Recently the company has had extensive growth due to a new clothing design, however, employees are leaving within 90 days of hire. This turnover is now affecting customer satisfaction and increasing the workload on the remaining staff. Most of the management staff started as sales floor employees and received little to no management training. One of the key criteria used in promoting staff is their success on the sales floor, leading to complaints of internal selection unfairness. Recent exit interviews suggest low morale, poor leadership, and lack of work/life balance as the top three reasons for leaving the company. Knowing that there are plans to launch two new product lines in the near future, the CEO has asked the HR director to find a new vendor to provide new employee orientation. Twenty companies have submitted proposals, and the CEO wants a short list in the next two days. Which steps should the HR director take to develop a short list of possible training vendors?
Rank the companies in regard to their prices and present the five lowest bids Conduct an online search of the best training companies and send the resulting list to the CEO Ask for input on the short list from another employee who has done this type of training before CORRECT Determine, with the CEO, key criteria that should be considered, using this information to narrow the search
What is a business case?
Rationale A business case is a request for the allocation of resources to implement a solution to a problem, or a plan to take advantage of an opportunity. Strong business cases are aligned with the organization's strategy and include a cost-benefit analysis of alternative solutions to the problem or opportunity, including taking no action. The business case usually includes discussion of risks. A cost-benefit analysis is not a business case but is an important part of a business case. Market research may be an input into the business case analysis. A scenario-based test would project the results of a business plan under different sets of variables (e.g., supply prices, market share). Market research into acceptability of a new service or product Scenario-based test of a business plan Cost-benefit analysis of a business concept CORRECT Analysis of a problem and possible solutions
At a staffing agency, recruiters are facing a challenge in finding high-quality candidates. Additionally, the recruiters adhere to an unwritten rule that they should not contact candidates who have already worked with other recruiters within the agency. A new recruiter corresponds with a candidate who was previously in communication with a veteran recruiter. The two recruiters get into an argument, and the recruitment manager tries to intervene. The new recruiter claims not knowing about this unwritten rule and challenges the rule's efficacy. The veteran recruiter says that the unwritten rule is explained during the onboarding process. The agency implements a new initiative to increase the quality of candidates. How should the HR manager evaluate the effectiveness of the initiative?
Track the performance of new candidates in their placements. Meet with the recruitment manager to discuss observed changes. CORRECT Identify the number of successful placements before and after the initiative. Survey all hiring managers about changes in the quality of job candidates since the initiative's launch.
Refer to the following scenario for the next 4 questions. The HR director at a large university has been on the job for six months when the university hires a new president. The new president decides that the staff development and advancement program is nonessential and orders the HR director to eliminate the 15 positions associated with the program within the week. Which action should the HR director take to influence the president to reconsider eliminating these positions?
INCORRECT Propose a plan to reassign the affected employees to other departments within the university. Encourage the president to consider the cultural impact of this action on all university employees. Meet with the president to discuss the strategic direction of the HR department. CORRECT Schedule a meeting with the president to discuss the importance of investing in employee development and advancement.
At a staffing agency, recruiters are facing a challenge in finding high-quality candidates. Additionally, the recruiters adhere to an unwritten rule that they should not contact candidates who have already worked with other recruiters within the agency. A new recruiter corresponds with a candidate who was previously in communication with a veteran recruiter. The two recruiters get into an argument, and the recruitment manager tries to intervene. The new recruiter claims not knowing about this unwritten rule and challenges the rule's efficacy. The veteran recruiter says that the unwritten rule is explained during the onboarding process. The recruitment manager approaches the HR manager for help with attracting high-quality candidates. What guidance should the HR manager provide?
Advise the recruitment manager to review the job descriptions and update as needed. Suggest that the recruitment manager examine recent trends in the fields and jobs candidates are pursuing. CORRECT Recommend evaluating the effectiveness of the agency's recruitment processes and tools. Analyze the recruitment strategies used by veteran recruiters compared with new recruiters.
Scenario A clothing retail company in business for over three years has three locations in a popular beach resort area. There are similar retailers in the same area competing for both the customers and labor pool. Recently the company has had extensive growth due to a new clothing design, however, employees are leaving within 90 days of hire. This turnover is now affecting customer satisfaction and increasing the workload on the remaining staff. Most of the management staff started as sales floor employees and received little to no management training. One of the key criteria used in promoting staff is their success on the sales floor, leading to complaints of internal selection unfairness. Recent exit interviews suggest low morale, poor leadership, and lack of work/life balance as the top three reasons for leaving the company. Knowing that there are plans to launch two new product lines in the near future, the CEO has asked the HR director to find a new vendor to provide new employee orientation. Twenty companies have submitted proposals, and the CEO wants a short list in the next two days. An applicant from a local competitor has offered to give the HR director information on the competitor's salary and benefits upon hire. Which action should the HR director take in response to this offer?
Ask for the information to create a more robust retention strategy once the person is hired Decline the candidate; however, offer compensation in exchange for the information CORRECT Do not hire the candidate, indicating that the company does not participate in unethical behavior Use this information to help create a strategy to reduce turnover
Scenario The HR director at a large university has been on the job for six months when the university hires a new president. The new president decides that the staff development and advancement program is nonessential and orders the HR director to eliminate the 15 positions associated with the program within the week. How should the HR director communicate the reduction in force to affected employees?
Ask the president to address the decision at the next university-wide meeting. CORRECT Tell each impacted employee individually and explain his or her options. Call a meeting with the HR department to share the information. Provide guidance to the affected employees' supervisors on how to relay the information.
A long-time employee of a small, rural branch of a national bank dies unexpectedly. This employee held a position requiring extensive institutional knowledge. Fellow employees are deeply saddened by the loss of their colleague, but bank policy allows bereavement leave for only members of the immediate family. The branch was already understaffed in several mid-level positions due to a limited pool of qualified applicants. The loss leads to increased workloads for the other employees, who are struggling to complete tasks on time. The branch manager wants to initiate succession planning for the recently vacated position in the future. How should the HR manager proceed?
Choose an assessment to measure internal applicants' potential to fill the position in the future. Establish a formal mentorship program at the bank to develop a pool of candidates for the position. CORRECT Assess the knowledge, skills, and abilities that need to be learned on the job. Identify current employees who are interested in advancing to this position.
A renowned financial institution, a former leader in the financial market, is now facing decelerated growth. Its product portfolio lacks innovation compared to that of competitors. Although the institution was once a favorite place to work, recently HR has been facing issues attracting top talent, and time-to-hire metrics have deteriorated. A technology gap between the leadership and the employees is beginning to widen. The founder, who is very sales-oriented, is not an early adopter when it comes to technology. Since his client relationships all began with face-to-face contact, he is wary that technology removes the personal element. To create a more collaborative culture and social learning environment, the HR talent development lead (TDL) wants to foster a culture of learning and innovation. This will require a change in corporate culture and a significant investment in new technology. Despite a recent upgrade, the learning management system (LMS) still feels outdated, sluggish, and static. The TDL believes that a new LMS with more powerful social learning technologies will be critical for attracting and retaining top talent, capturing the attention of a broader and rapidly changing demographic, and meeting their demands. The workforce is around 40% Millennials, compared with 10% just five years ago. The TDL understands that cross-functional collaboration will be required to sort out the features needed to support the organization's learning management system. What is the best way to organize the right cross-functional team?
CORRECT Assemble a team including senior functional leaders and younger managers with an interest in diversity and innovation. Ask the senior leaders who they would like to see on the cross-functional team. To save time, limit the team to tech-savvy employees who already understand LMS trends and applications. Contact analogous organizations and implement the exact features they are using.
Refer to the following scenario for the next 4 questions. A long-time employee of a small, rural branch of a national bank dies unexpectedly. This employee held a position requiring extensive institutional knowledge. Fellow employees are deeply saddened by the loss of their colleague, but bank policy allows bereavement leave for only members of the immediate family. The branch was already understaffed in several mid-level positions due to a limited pool of qualified applicants. The loss leads to increased workloads for the other employees, who are struggling to complete tasks on time. Which action should the HR manager take to address the emotional well-being of employees?
CORRECT Engage a grief counselor to discuss coping mechanisms with employees as a group. Discuss realignment of job duties to address workload issues. Offer a few days of leave for bereavement available by request. Email employees outlining the various options for support provided to them.
The HR director at a large university has been on the job for six months when the university hires a new president. The new president decides that the staff development and advancement program is nonessential and orders the HR director to eliminate the 15 positions associated with the program within the week. The HR director wants to reassign, rather than terminate, employees who will be displaced. Which action should the HR director take to make job reassignments most effectively?
CORRECT Identify positions requiring similar knowledge, skills, and abilities as the employees' current positions. Offer early retirement to interested and eligible employees. Ask supervisors of vacant positions at the university to interview employees with the necessary skills and experience. Ask employees what their preferred assignment would be among available positions.
Refer to the following scenario for the next 3 questions. A renowned financial institution, a former leader in the financial market, is now facing decelerated growth. Its product portfolio lacks innovation compared to that of competitors. Although the institution was once a favorite place to work, recently HR has been facing issues attracting top talent, and time-to-hire metrics have deteriorated. A technology gap between the leadership and the employees is beginning to widen. The founder, who is very sales-oriented, is not an early adopter when it comes to technology. Since his client relationships all began with face-to-face contact, he is wary that technology removes the personal element. To create a more collaborative culture and social learning environment, the HR talent development lead (TDL) wants to foster a culture of learning and innovation. This will require a change in corporate culture and a significant investment in new technology. Despite a recent upgrade, the learning management system (LMS) still feels outdated, sluggish, and static. The TDL believes that a new LMS with more powerful social learning technologies will be critical for attracting and retaining top talent, capturing the attention of a broader and rapidly changing demographic, and meeting their demands. The workforce is around 40% Millennials, compared with 10% just five years ago. The TDL knows that championing creativity and innovation in a risk-averse industry is a challenge because this behavior is usually not promoted or rewarded. How should the talent development lead position the proposed LMS to gain leadership commitment for investing in this new technology?
CORRECT Show how the LMS can effectively use technology, trends, and innovations to support the organizational strategy. Task the Millennial leaders with researching LMS capabilities and trends and preparing a presentation for the founder, leaders, and stakeholders. Survey the founder and senior leaders to gather their thoughts and feelings about how the LMS should support operations. INCORRECT Implement the new LMS and, after usage data is gathered, then demonstrate its benefits.
A long-time employee of a small, rural branch of a national bank dies unexpectedly. This employee held a position requiring extensive institutional knowledge. Fellow employees are deeply saddened by the loss of their colleague, but bank policy allows bereavement leave for only members of the immediate family. The branch was already understaffed in several mid-level positions due to a limited pool of qualified applicants. The loss leads to increased workloads for the other employees, who are struggling to complete tasks on time. Which action should the HR manager take to address the hiring needs of the branch?
CORRECT Train current employees to promote from within so less-skilled positions can be filled more easily. Partner with regional colleges to develop a talent pipeline. Contract with a temporary agency to fill open positions on a short-term basis. Hire candidates who are slightly less than qualified and institute intense training programs as part of onboarding.
Scenario The HR director at a large university has been on the job for six months when the university hires a new president. The new president decides that the staff development and advancement program is nonessential and orders the HR director to eliminate the 15 positions associated with the program within the week. Which action should the HR director take to reduce the negative effects the reduction in force will have on morale?
Conduct team-building exercises to strengthen relationships within the HR department. Elaborate on why the reduction in force was necessary. CORRECT Schedule one-on-one meetings with department employees to address their questions and concerns. Call a staff meeting to explain that every effort is being made to place affected employees in other positions at the university
A long-time employee of a small, rural branch of a national bank dies unexpectedly. This employee held a position requiring extensive institutional knowledge. Fellow employees are deeply saddened by the loss of their colleague, but bank policy allows bereavement leave for only members of the immediate family. The branch was already understaffed in several mid-level positions due to a limited pool of qualified applicants. The loss leads to increased workloads for the other employees, who are struggling to complete tasks on time. The branch manager notices an increase in transaction errors in all employees and asks the HR manager to recommend a solution. When the HR manager asks about the errors, employees indicate they have too much work to double-check for mistakes. How should the HR manager respond?
Consult with employees to prioritize their work and identify less-important tasks. Provide refresher training on essential job tasks for each employee. Conduct an analysis to identify job functions and tasks that can be automated. CORRECT Analyze data about error rates and types over the last month to develop targeted solutions.
A renowned financial institution, a former leader in the financial market, is now facing decelerated growth. Its product portfolio lacks innovation compared to that of competitors. Although the institution was once a favorite place to work, recently HR has been facing issues attracting top talent, and time-to-hire metrics have deteriorated. A technology gap between the leadership and the employees is beginning to widen. The founder, who is very sales-oriented, is not an early adopter when it comes to technology. Since his client relationships all began with face-to-face contact, he is wary that technology removes the personal element. To create a more collaborative culture and social learning environment, the HR talent development lead (TDL) wants to foster a culture of learning and innovation. This will require a change in corporate culture and a significant investment in new technology. Despite a recent upgrade, the learning management system (LMS) still feels outdated, sluggish, and static. The TDL believes that a new LMS with more powerful social learning technologies will be critical for attracting and retaining top talent, capturing the attention of a broader and rapidly changing demographic, and meeting their demands. The workforce is around 40% Millennials, compared with 10% just five years ago. How can the TDL ensure that the LMS is consistently and widely used and supports the cost of investment?
Do nothing and assume that the LMS will eventually be consistently and widely used since it has so many benefits. Require IT department employees to field calls and answer all questions from other employees on a rotating basis. Contract with an LMS vendor to set up a hotline to answer all questions related to information seeking and sharing with the new technology. CORRECT Create an effective communication plan so employees are aware of the benefits the new LMS offers and implement incentives for using the LMS.
A renowned financial institution, a former leader in the financial market, is now facing decelerated growth. Its product portfolio lacks innovation compared to that of competitors. Although the institution was once a favorite place to work, recently HR has been facing issues attracting top talent, and time-to-hire metrics have deteriorated. A technology gap between the leadership and the employees is beginning to widen. The founder, who is very sales-oriented, is not an early adopter when it comes to technology. Since his client relationships all began with face-to-face contact, he is wary that technology removes the personal element. To create a more collaborative culture and social learning environment, the HR talent development lead (TDL) wants to foster a culture of learning and innovation. This will require a change in corporate culture and a significant investment in new technology. Despite a recent upgrade, the learning management system (LMS) still feels outdated, sluggish, and static. The TDL believes that a new LMS with more powerful social learning technologies will be critical for attracting and retaining top talent, capturing the attention of a broader and rapidly changing demographic, and meeting their demands. The workforce is around 40% Millennials, compared with 10% just five years ago. How can the TDL ensure that the LMS is consistently and widely used and supports the cost of investment?
Do nothing and assume that the LMS will eventually be consistently and widely used since it has so many benefits. Require IT department employees to field calls and answer all questions from other employees on a rotating basis. Contract with an LMS vendor to set up a hotline to answer all questions related to information seeking and sharing with the new technology. CORRECT Create an effective communication plan so employees are aware of the benefits the new LMS offers and implement incentives for using the LMS.
A clothing retail company in business for over three years has three locations in a popular beach resort area. There are similar retailers in the same area competing for both the customers and labor pool. Recently the company has had extensive growth due to a new clothing design, however, employees are leaving within 90 days of hire. This turnover is now affecting customer satisfaction and increasing the workload on the remaining staff. Most of the management staff started as sales floor employees and received little to no management training. One of the key criteria used in promoting staff is their success on the sales floor, leading to complaints of internal selection unfairness. Recent exit interviews suggest low morale, poor leadership, and lack of work/life balance as the top three reasons for leaving the company. Knowing that there are plans to launch two new product lines in the near future, the CEO has asked the HR director to find a new vendor to provide new employee orientation. Twenty companies have submitted proposals, and the CEO wants a short list in the next two days. Which action should the HR director take first to create a robust workforce plan that addresses the expected organizational growth?
Ensure that all recruiters are well trained in sourcing and selecting qualified applicants for a retail sales organization Review environmental conditions in regard to expected tourists and expected sales growth, and calculate the number of employees needed Review internal turnover, promotions, and transfer data to calculate the number of employees needed to meet future staffing needs CORRECT Analyze current labor trends along with internal staffing metrics to ensure appropriate staffing levels to meet expected organizational growth
At a staffing agency, recruiters are facing a challenge in finding high-quality candidates. Additionally, the recruiters adhere to an unwritten rule that they should not contact candidates who have already worked with other recruiters within the agency. A new recruiter corresponds with a candidate who was previously in communication with a veteran recruiter. The two recruiters get into an argument, and the recruitment manager tries to intervene. The new recruiter claims not knowing about this unwritten rule and challenges the rule's efficacy. The veteran recruiter says that the unwritten rule is explained during the onboarding process. The HR manager wants to evaluate the benefits of the unwritten rule about contacting candidates. Which step is most effective for the HR manager to take to obtain feedback?
Facilitate a discussion with new and veteran recruiters to evaluate the benefits of the unwritten rule. Conduct a meeting with all new recruiters to learn about their opinions on the benefits of the unwritten rule. CORRECT Send an anonymous survey to all recruiters in the company to obtain feedback on the benefits of the unwritten rule. Ask the recruitment manager for input on the possible benefits of the unwritten rule.
A clothing retail company in business for over three years has three locations in a popular beach resort area. There are similar retailers in the same area competing for both the customers and labor pool. Recently the company has had extensive growth due to a new clothing design, however, employees are leaving within 90 days of hire. This turnover is now affecting customer satisfaction and increasing the workload on the remaining staff. Most of the management staff started as sales floor employees and received little to no management training. One of the key criteria used in promoting staff is their success on the sales floor, leading to complaints of internal selection unfairness. Recent exit interviews suggest low morale, poor leadership, and lack of work/life balance as the top three reasons for leaving the company. Knowing that there are plans to launch two new product lines in the near future, the CEO has asked the HR director to find a new vendor to provide new employee orientation. Twenty companies have submitted proposals, and the CEO wants a short list in the next two days. Based on the current turnover and lack of management training, what should the HR director do first as part of a needs analysis?
Facilitate management focus groups to evaluate the company's compensation, rewards, and incentive programs CORRECT Conduct a job analysis for all management positions to ensure that job descriptions and specifications are appropriate Analyze exit interviews from managers who have left recently Review customer satisfaction results and use these to guide the development of the training curriculum
What are the key components of a business intelligence system?
Rationale A business intelligence system has three components: a means to gather information from various data collection points, a secure means of storing or warehousing data so that it is available to users, and the means to analyze the data via queries and reports. Input, processing, output Accuracy, currency, and completeness CORRECT Data gathering, data warehousing, query and reporting User interface, access to the Internet, integrated database
What budgeting method is based on how much it costs to perform different enterprise activities and allocates funding according to the strategic significance of the activities?
Rationale Activity-based budgeting recognizes the interrelationships among various activities required to create value in an organization. It is based on how much it costs to perform different enterprise activities. Funding may be allocated based on the strategic significance of the activities. CORRECT Activity-based Formula Zero-based Incremental
A company has reached a point of stability in its internal processes and ways of doing business. What stage of the life cycle characterizes this company?
Rationale As an industry, organization, or product matures, problems are largely resolved. In an organization, staffing and culture begin to stabilize, and the rate of change levels off. Policies, procedures, and rules are formalized and communicated to all employees. Training is emphasized, and labor cost control becomes a factor. Growth CORRECT Maturity Decline Introduction
Which best demonstrates the outcome of zero-based budgeting in regard to HR's budget?
Rationale In an organization using zero-based budgeting, each function, begins with zero funds and must justify the strategic importance of each item in its budget. Funds are not carried over. Budgets are not necessarily frozen or decreased but could increase, especially if new projects are deemed strategically important. The budget will have no growth. CORRECT All expenditures will need to be justified when building the budget. Balances for ongoing projects from previous periods will be carried over. All new projects will be postponed immediately.
How is Porter's "Five Forces" framework used in developing strategies?
Rationale Porter's "Five Forces" framework helps strategists understand the competitive forces at work in their industries so that they can assess the strengths and weaknesses of their own competitive position. To assess the strength of various competitors To identify internal strengths and weaknesses CORRECT To understand competitive factors that influence the strategy To determine the cost-effectiveness of strategic initiatives
At a staffing agency, recruiters are facing a challenge in finding high-quality candidates. Additionally, the recruiters adhere to an unwritten rule that they should not contact candidates who have already worked with other recruiters within the agency. A new recruiter corresponds with a candidate who was previously in communication with a veteran recruiter. The two recruiters get into an argument, and the recruitment manager tries to intervene. The new recruiter claims not knowing about this unwritten rule and challenges the rule's efficacy. The veteran recruiter says that the unwritten rule is explained during the onboarding process. The recruitment manager asks the HR manager to discipline the new recruiter. How should the HR manager respond?
Recommend that the recruitment manager remind the new recruiter of unwritten expectations. Facilitate a meeting between the new and veteran recruiters. Suggest that the two recruiters work together on this candidate. CORRECT Suggest adding the unwritten rule to the policy to avoid this situation in the future.