Exam4Training

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Question #1

An organization will improve its ability to focus on critical business results by:

  • A . Outsourcing non- core functions
  • B . Improving the organization’s Employer Value Proposition
  • C . Implementing a flat structure and a comprehensive compensation philosophy
  • D . Focus strategic implementation on staff functions

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Correct Answer: A
A

Explanation:

An organization will increase its ability to focus on critical business results by outsourcing non- core functions. NOTE: A line function is one that directly advances an organization in its core work. This includes production and sales. A staff function supports the organization with specialized advisory and support functions. For example, human resources, accounting, public relations and the legal department are considered to be staff functions.

Question #2

Which is the most significant reason that the information technology department is seen as a strategic partner in an organization?

  • A . Organizations need accurate reports on which to base decisions
  • B . Technology contractors execute the organization’s business.
  • C . Information technology provides a competitive advantage for an employer.
  • D . The department trains other employees and contractors on advanced analytical skills

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Correct Answer: C
C

Explanation:

Information technology fosters innovation in business which results in smarter applications, improved data storage, faster processing, and wider information distribution. Information technology departments have also become more strategic because of cyber-security (think of hacking, data breaches). Competitive advantage is the attribute that allows an organization to outperform its competitors. These attributes allow the productive entity to generate more sales or superior margins compared to its market rivals. Good To Know: Michael Porter identified generic strategies "Cost Leadership" (no frills), "Differentiation" (creating uniquely desirable products and services) and "Focus" (offering a specialized service in a niche market). He then subdivided the Focus strategy into two parts: "Cost Focus" and "Differentiation Focus."

Question #3

A new Director has arrived to manage an HR department that became dysfunctional under the previous director.

What should the new Director do first?

  • A . Meet individually with all employees and clarify her expectations for their performance and interactions.
  • B . Assemble the entire department and describe the engagement levels that are required for a functional department.
  • C . Talk to members of the department separately to understand the needs of the department.
  • D . Detail internal customer service metrics and measures to be met by the teams.

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Correct Answer: C
C

Explanation:

The first step is often a needs analysis (what is needed?) while the most important step is often obtaining senior management’s approval. Since the HR director is new to the department, she needs to first learn about the employees’ needs individually, and as a group. She can then provide the type of leadership the group needs. It is important to begin with a needs assessment C what is and what should be, determine the gap between current realities, and desired results before proffering a solution.

Question #4

In a medium-sized organization, HR is responsible for orientation program for all new hires. Surveys indicate that employees that have gone through the orientation program felt as though the program did not help them prepare for their new position and it was poorly presented.

Which best describes how HR should attempt to ensure that the orientation program is useful to employees?

  • A . Compare the performance of candidates who attended the program to that of candidates who did not attend the program
  • B . Employ trained onboarding specialists to ensure the orientation results in highly skilled, experienced employees
  • C . Replace the current program with another that has been developed through the ADDIE process.
  • D . Conduct pilot programs to gather feedback that will be used to revise the orientation program before
    officially launching the program.

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Correct Answer: D
D

Explanation:

The best option is to conduct pilot programs before the official launch of the orientation. A pilot test or pilot program is a small-scale short-term effort where the training is introduced to a small group to provide data about its feasibility before it is implemented on a large scale.

Running a pilot program lets HR test the training on a small scale to determine if it will be a viable option for the company; to verify whether the content and design of the program adequately meets objectives, and to identify if there are better ways for the instructor to present the information. A pilot can also provide data about the real-world impact of a training, and is used to revise and improve the learning product before it is rolled out to the entire workforce.

Question #5

An organization with multiple subsidiaries has decided to engage in a robust divestiture exercise by selling off poor-performing subsidiaries.

What information should the HR leader provide to leadership in this phase?

  • A . Employee count for the subsidiaries inclusive of current roles and remuneration
  • B . The feasibility study of the organizational structure and workforce planning of each subsidiary
  • C . A comparison of the turnover data for the subsidiaries as compared to the organization
  • D . Recommendations for potential buyers based on HR expertise in the industry

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Correct Answer: A
A

Explanation:

The human resources and economic value of the workforce that has been selected for divestiture is useful information that HR can provide as the organization is considering target buyers. A total head count along with the current compensation of each employee will be needed.

Question #6

Just before the strategic planning process begins, the HR manager becomes aware of widespread discussions between functional managers on how to use the process to advance pet projects.

How should the HR manager ensure that the strategic planning process is successful without it being abused for personal gain by the functional managers?

  • A . Focus on organizational core competencies to drive the process.
  • B . The functional managers should not be involved in the planning process.
  • C . Gather evidence-based data on the personal projects the functional managers intend to advance.
  • D . Advocate for the use of external consultants to drive the strategic planning process.

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Correct Answer: A
A

Explanation:

Ensuring that the strategic planning process is focused on organizational core competencies is the best answer. By doing this, the organization will focus on its core competencies and not pet projects. A pet project is an activity or goal pursued as a personal favorite, rather than because it is generally accepted as necessary or important.

Question #7

Consumers are engaging in a boycott campaign against a global organization whose supply chain has been discovered to be involved in child labor and human trafficking. Due to the boycott, the organization has had to begin layoffs over which employees are disgruntled over.

Which risk management tactic is most suitable for the HR manager to take?

  • A . Have the legal department review the layoff plan to avoid litigation
  • B . Offer laid-off employees a severance package and outplacement services.
  • C . Conduct the layoffs and assure employees who remain that the supply chain issue has been rectified
  • D . Ensure transparency and two-way feedback regarding employee concerns about the supply chain
    boycott and impending layoff

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Correct Answer: A
A

Explanation:

Note that litigation is the most serious risk among the options. Risk management refers to the practice of identifying potential risks in advance, analyzing them and taking precautionary steps to reduce/curb/avoid the risk. In this case, obtaining legal review helps avoid costly legal compliance issues regarding layoffs. Conducting the layoff without legal review and without a communications plan opens the organization to litigation risks. Federal laws to note when considering a layoff include the WARN Act and COBRA.

Question #8

How should Chi-Chi handle a strategy session with business partners from a universalism culture?

  • A . Be flexible with time and procedures
  • B . Provide clear directives at the beginning of the session
  • C . Be comfortable both with ambiguity and pragmatism
  • D . Be affective, social and focus on building relationships.

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Correct Answer: B
B

Explanation:

In universalism cultures, people place a high importance on laws, rules, values, and obligations – rules come before relationships. In particularist cultures, people’s response to a situation may change, based on what’s happening in the moment, and who’s involved.

Question #9

Senior management commitment is critical to a company’s diversity and inclusion initiative.

Which information should be included in a business case to gain that commitment?

  • A . Legal and compliance backlash that the company will face if it does not implement the initiative
  • B . Benchmarking data on comparable companies that have successfully established similar initiatives
  • C . A successful implementation of a geocentric strategy is dependent on the achievement of the initiative
  • D . Detail how the initiative is a critical enabler in achieving the organization’s core business goals

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Correct Answer: D
D

Explanation:

Senior executive commitment to diversity and inclusion initiatives can be obtained if HR can demonstrate a link between the initiative and the achievement of core business goals. The benefits of broadened perspectives, diversity of thought, creativity of ideas, and innovation should be detailed linked specifically to the organization’s business and strategic goals.

Question #10

How does a corporate social responsibility (CSR) program impact employee retention?

  • A . Keeps employees behaviorally engaged in diversity initiatives
  • B . Increases brand image as an ethical and sustainable organization
  • C . Allows employees to engage in lateral transfers and job enrichment
  • D . Improves employee extrinsic reward and morale

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Correct Answer: B
B

Explanation:

CSR impacts an organization’s brand image and employee retention level is positively impacted as they work for an organization that is viewed as ethical and sustainable.

Question #11

An organization has identified several areas in which productivity is not meeting goals. The HR director is charged with finding a way to help increase productivity in the identified areas. After examining employee surveys from the underperforming areas, the HR director concludes that management is performing adequately but teams are still not working together as needed. The HR director also examines compensation in the area to see if below-average base pay is causing employees to lack motivation, but she finds that base salaries are competitive in the area.

Which is the best option for the HR director to use to increase productivity?

  • A . Replace a portion of the underperforming teams with external candidates.
  • B . Reorganize the department to mix up underperforming teams.
  • C . Offer group incentive pay based on group performance targets.
  • D . Offer individual incentive pay based on individual performance targets.

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Correct Answer: C
C

Explanation:

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

Question #12

The Drug-Free Workplace Act of 1988 applies to what kind of organization? (choose all that apply)

  • A . Private organizations receiving federal grants
  • B . Organizations with federal contracts of at least $100,000
  • C . Organizations with federal contracts of at least $10,000
  • D . Private and public organizations with federal contracts subject to OFCCP.

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Correct Answer: A,B
A,B

Explanation:

The Drug-Free Workplace Act of 1988 applies to any organization receiving a federal grant of any size; and any organization that receives a federal contract of $100,000 or more.

Such organizations must; |Prepare and distribute a formal drug-free workplace policy statement. |Establish a drug-free awareness program. |An employee must notify the employer within five calendar days if he or she is convicted of a criminal drug violation. |Under the Act, the employer has 10 days to report that a covered employee has been convicted of criminal drug violation. |Take direct action against an employee convicted of a workplace drug violation. This action may involve imposing a penalty or requiring the offender to participate in an appropriate rehabilitation program. |Maintain an ongoing good faith effort to meet all the requirements of the Drug-free Workplace Act throughout the life of the contract.

Question #13

Based on the organization’s new strategic plan, the HR business plan calls for implementing a new team-building course. The HR function, however, is unable to use internal instructional designers due to prior project commitments.

What should the HR manager do?

  • A . Add permanent HR staff
  • B . Revise the business plan.
  • C . Rearrange project commitments.
  • D . Outsource the project

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Correct Answer: D
D

Explanation:

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

Question #14

Jane’s retirement plan is funded by the employer. She has been promised that she will receive a specific monthly dollar amount at retirement. Her pension benefit is calculated based on a formula where her benefit is equal to 3 percent of her average salary for the last 5 years of employment multiplied by her total years of service. Jane’s plan is a ——-

  • A . Rabbi Trust
  • B . Defined benefit plan
  • C . Defined contribution plan
  • D . Qualified plan

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Correct Answer: B
B

Explanation:

A Defined Benefit (DB) plan is a retirement plan that is funded by the employer, and promises the employee a specific monthly benefit at retirement. The plan may state this promised benefit as an exact dollar amount, such as $1000 per month at retirement – or it may calculate the employee’s benefit through a formula that includes factors such as salary, age, and the number of years worked at the company.

In a Defined Benefit (DB) plan, the employee knows beforehand what the retirement benefit will be. In a Defined Contribution (DC) plan, the employee does not know the specific retirement benefit but he/she knows what contributions are being made.

In a DC plan, the employee’s retirement benefit will be based on contributions, and investment gains/losses.

Question #15

How does the self-service component of an HRIS shift HR’s focus from transactional to transformational?

  • A . By shifting benefit profiles and option updates to managers and employees
  • B . By identifying potential succession management problems before they occur
  • C . By using the Internet to improve communication across time zones
  • D . By supporting the use of virtual teams working around the globe

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Correct Answer: A
A

Explanation:

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

Question #16

An organization’s attempts to differentiate its product in the marketplace have failed, and sales are below projections.

Which of the following changes should be implemented?

  • A . Cut costs across the board, reduce the price below that of the competition, and depend on volume for profits.
  • B . Isolate the differentiating product factors, reduce costs in other areas, and reduce the product’s price.
  • C . Increase the marketing effort to raise awareness of the product’s uniqueness and raise the price.
  • D . Withdraw the product from the market, redesign it to enhance its uniqueness, and reintroduce it at the same price.

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Correct Answer: B
B

Explanation:

Isolate the differentiating product factors, reduce costs in other areas, and reduce the product’s price. Differentiation strategies focus on setting the product or service apart from its competition by giving it unique characteristics that consumers value and for which they will be willing to pay a premium price. Even with a differentiation strategy, an organization has to pay attention to its cost position. In this case, the cost for uniqueness exceeds what customers are willing to pay. To strike a balance, the organization will need to reduce costs in all areas not related to the differentiation and may need to reintroduce the product at a lower price.

Question #17

A small organization has recently doubled the size of its workforce to 150 employees. The HR director has received approval to purchase an HRIS to help deal with the increase in reporting requirements. There is an IT expert in-house.

What is the best course of action for this HR director in regard to the purchase and implementation of the HRIS?

  • A . Purchase a robust HRIS software package that allows specific information
  • B . Customize an off-the-shelf HRIS software package.
  • C . Outsource all HRIS functions, as on-site IT is not available
  • D . Purchase the HRIS software package after benchmarking with a consultant

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Correct Answer: B
B

Explanation:

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

Question #18

Which principle of employment at-will affects employers in countries that recognize this employment right?

  • A . The employee is not legally bound to any financial liability incurred for abandoning the job
  • B . The employer is able to recover damages or costs incurred by the departure of an employee.
  • C . Severance payments must be agreed upon in writing when the employee is first hired.
  • D . Employers are not required to identify a legitimate business decision for taking adverse action.

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Correct Answer: A
A

Explanation:

When the principle of employment at-will applies, primarily in the U.S., both the employee and the employer are free to terminate the relationship with no consequences, assuming that no other contracts or agreements have been made and the termination was legal (in other words, not a case of wrongful discharge).

Question #19

According to the Genetic Information Nondiscrimination Act—–?

  • A . an employer is legally culpable if genetic information is obtained inadvertently
  • B . employers who self-insure coverage can use genetic information to screen out employees for health benefits under the safe harbor rule
  • C . an employer may use genetic information to make an employment decision if it is relevant to an individual’s current ability to work
  • D . it is not illegal if an employer obtains genetic information accidentally or pursuant to the FMLA

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Correct Answer: D
D

Explanation:

Genetic Information Nondiscrimination Act of 2008 (GINA) prohibits the use of genetic information in making employment decisions. An employer may not use genetic information to make an employment decision because genetic information is not relevant to an individual’s current ability to work. It is also unlawful for employers to request, require, or purchase an applicant’s or employee’s genetic information. There are a few exceptions to this rule, such as: when an employer gets genetic information inadvertently or pursuant to the FMLA; when an employee receives voluntary health or genetic services that an employer offers; or when an employer acquires genetic information from sources that are "commercially and publicly available," like newspapers, books, and public websites. An employer must keep any genetic information it does acquire about an applicant or employee confidential.

Question #20

An organization is extremely risk-averse, and its technology policies aim at retaining the greatest degree of physical and legal control.

Which option for acquiring software offers the most control to the organization?

  • A . Software as a subscription hosted on the public cloud
  • B . Perpetual license software hosted on private cloud servers.
  • C . Subscription software hosted on private cloud servers.
  • D . Proprietary software hosted on the organization’s on-site servers

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Correct Answer: D
D

Explanation:

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

Question #21

"Even though there is an over-arching HR strategy, it is debilitating to the company to keep having independent HR functions in our product units because it is cost-intensive and has led to variations in HR practices in the organization". The speaker is most likely referring to….?

  • A . a hybrid HR model
  • B . a dedicated HR model
  • C . a decentralized HR model
  • D . a functional HR model

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Correct Answer: C
C

Explanation:

In a decentralized HR structure, strategy and policies are created by Headquarters HR while HR in the

business units operate and make decisions on HR processes independent of the other units. In this structure, HR policies and practices differ significantly across locations.

In the Functional HR structure, headquarters HR is staffed with specialists who determine HR strategies and policies while HR generalists who are located within divisions or business units or locations implement these strategic policies, adapt them as needed, and are responsible for employee communication. The Dedicated HR structure allows businesses with multiple business units that have different strategies to apply HR expertise to each business unit’s specific needs. This means the HR strategy of each business unit is different from the other.

In the Centralized HR structure, HR strategy, policy, administration and decisions are concentrated in a strong, singular HR department. Policies and practices are the same across business locations, and HR support and administration adopt a "one size fits all" model.

Question #22

Which benefit is most advantageous when considering a best-of-breed solution compared to an integrated solution?

  • A . There is a shorter learning curves for staff because of its specificity
  • B . Creates customized solutions for different functional areas
  • C . It is more cost-effective than integrated solutions
  • D . Provides greater ease of use in data analytics and management

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Correct Answer: B
B

Explanation:

Creating customized solutions for different functional areas is a key benefit of the best-of-breed solution. A best-of-breed Human Capital Management (HCM) solution strategy is to acquire and deploy systems offering the best possible capabilities in only one specific HCM functional area e.g. recruitment.

On the other hand, a Unified or Integrated HCM solution strategy is one involving an end-to-end suite designed to manage the entire life cycle of an employee within one integrated system – it provides a single system of record for all human capital management needs on a solitary platform. Best-of-breed solutions offer expertise in a core HR area, offer customized solutions and greater functional capabilities that address a specific HR functional area.

Question #23

How can the performance of HR during the due diligence process maximize the success of a merger or acquisition?

  • A . HR can ensure that line functions provide reports of the feasibility of the merger and acquisition
  • B . HR can uncover obstacles that affect agreements and implementation plans.
  • C . HR can create a merger of compensation and benefit strategies for employee retention.
  • D . HR can partner with attorneys to review layoff packages for the potential reduction in force

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Correct Answer: B
B

Explanation:

Note that the focus of the question is the merger and acquisition. Ensuring that obstacles (such as liabilities, claims, pending employment lawsuits) are recognized during due diligence can reduce the potential problems after the completion of the merger or acquisition.

Question #24

The HR department has determined that 10 new employees will be needed in operations, 7 new employees in marketing, and 5 new employees in customer service to achieve a company’s strategic goals.

HR is engaged in what workforce analysis process?

  • A . Gap analysis
  • B . Supply analysis
  • C . Demand analysis
  • D . Strategic workforce needs

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Correct Answer: C
C

Explanation:

Demand analysis involves understanding the future business direction of an organization, what its workforce needs are, and the number of employees required so it can deliver its goals. It involves determining the employees the company needs to achieve its objectives. Supply analysis, on the other hand, has both internal and external components. Internal supply refers to the workforce an organization already has, whereas external supply refers to potential sources and availability of staff to join an organization.

Question #25

The Propeller organization rewards innovation, independent thinking, and risk taking. As the market has matured, management has decided that there is a need to have an increased control over decisions and outcomes in a bid to increase product quality and reduce error rates. The leaders have informed HR of this strategy and are counting on its support to ensure a successful implementation.

What is the first step that HR should proffer?

  • A . Adopt co-sourcing solutions with professional firms to determine the causes behind product errors
  • B . Explain to the leaders that the new strategy will require changes in structure, policies, processes, and culture.
  • C . Implement competency-based hiring and performance management systems in the Research and Development function.
  • D . Develop a communication plan that ensures employee alignment, engagement, and retention.

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Correct Answer: B
B

Explanation:

Note that the question is asking for the first step. The first step is to consider the ways in which the change of strategy will affect all other areas of the organization, i.e. structure, policies, procedures, values, culture etc.

Question #26

Which of the following is true regarding the Equal Pay Act?

  • A . An employee alleging a violation must file a charge with the EEOC before going to court
  • B . The time limit to file a charge is 180 days from the discriminatory compensation practice and extended to 300 days for FEPA states
  • C . The limit to file a charge is 2 years from the discriminatory compensation practice
  • D . Only employers with 15 or more employees are covered

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Correct Answer: C
C

Explanation:

The deadline for filing a charge or lawsuit under the Equal Pay Act (EPA) is 2 years from the day the employee received the last discriminatory paycheck (3 years in the case of willful discrimination).

Note that this is different from the Lilly Ledbetter Fair Pay Act which amended Title VII of the Civil Rights Act of 1964 and states that the 180-day statute of limitations for filing a lawsuit regarding pay discrimination resets with each new discriminatory paycheck.

Option A is wrong because for the EPA, an employee can go directly to court. Option B is wrong because option C applies to the EPA, not the general 180 days. Option D is wrong because virtually all employers are covered by the EPA (note that the EPA amended the FLSA which applies to virtually all employers).

Question #27

The global head of marketing informs the Head of HR that one of his direct reports, a country manager has just undergone a multi-rater evaluation. Feedback from direct reports in the country manager’s location are excellent but reviews from two of the manager’s superiors (a regional manager from a different country and a marketing manager from the home country) were negative. Both superiors remarked that the country manager needed to improve in the areas of communication and leadership.

How should Head of HR handle this situation?

  • A . Recommend that performance evaluations are to feature only ratings from direct reports and managers in the same location
  • B . Balance both divergent perspectives with a third perspective from a manager who operates in a different function, from a different country.
  • C . Provide coaching and mentoring opportunities that would enhance the country manager’s communication and leadership skills.
  • D . Speak to the regional manager and marketing manager to better understand the rationale for their
    ratings.

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Correct Answer: D
D

Explanation:

This is a question that emphasizes communication before arbitrary action. It is most likely that cultural differences affected the ratings of the managers who are from a different culture than that of the country manager. Communicating with these managers will help the global head of marketing understand what deficiencies in communication and leadership the regional manager and marketing manager are referring to; and determine if their ratings were influenced by an ethnocentric viewpoint.

Question #28

Which of the following scenarios is illegal under the Family Medical Leave Act?

  • A . An employee on FMLA leave fails to pay the normal employee portion of health insurance premiums for a month and half, after which his health coverage is terminated
  • B . A secretary who works for an employer with a total of 5 dozen employees has received an email from HR stating that her request for FMLA leave to care for her dying mother has been denied
  • C . Two employees meet at work, get married and are now expecting a baby in 2 weeks. Each employee has requested for 12 weeks of intermittent FMLA leave. HR approves only 12 weeks of FMLA leave for both employees
  • D . The CFO has been denied job restoration after taking FMLA leave to care for his sick daughter

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Correct Answer: B
B

Explanation:

The FMLA entitles eligible employees of covered employers to take twelve workweeks of leave in a 12-month period of unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave. Note that "key employees" can be denied job restoration if restoration will create substantial economic injury to the company. In option B, 5 dozen is 60, therefore the employee is eligible as she works for a covered employer.

Question #29

To enhance productivity, an organization has opted to streamline its product line to the ten most profitable products. It will sell four units which are focused on other product lines.

How can HR most effectively contribute to a successful restructuring?

  • A . Conduct 360-degree and multisource feedback assessments to determine individual performance expectations for the remaining employees
  • B . Train all managers of divested units on how to help employees update their online professional profiles to secure new jobs
  • C . Conduct a comprehensive salary review and suggest which positions to eliminate based on market value
  • D . Analyze the skills and functions of divested units to identify possible gaps and determine the
    appropriate course of action

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Correct Answer: D
D

Explanation:

Identifying potential gaps that may have been created in divesting the units and determining what to do about them will contribute most effectively to a successful restructuring.

Question #30

What is a critical requirement of a business intelligence portal?

  • A . Engagement of the user through graphic elements
  • B . Access to a wide array of analytical tools
  • C . Ease in accessing data of interest and usefulness
  • D . Integration of external databases

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Correct Answer: C
C

Explanation:

An effective business intelligence portal is easy to use. One of the ways this is accomplished is by customizing a user’s view to show the information and tools the user most commonly requires.

Question #31

A small press organization is looking to increase its sustainability efforts . The organization lacks the ability to allocate large amounts of financial resources to sustainability and does not have the clout to drive major changes with overseas business partners.

Which option is the best way for the organization to increase sustainability?

  • A . Partner with other local businesses to drive sustainability initiatives in the local area
  • B . Purchase only sustainably produced paper at a higher cost, passing the cost difference on to the customer
  • C . Invest in the creation of online products and influence customers to avoid printing hard copies of its products.
  • D . Hire a new chief sustainability officer and allow the new hire to set the course for the organization.

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Correct Answer: A
A

Explanation:

Partnering with other local businesses can help increase sustainability without depleting its financial resources.

Question #32

A major deficiency of most performance appraisal systems in developing employees is the lack of:

  • A . Supervisory training on how to assign performance ratings.
  • B . Consistent and fair rating of all employees
  • C . Action planning and follow-up based on performance ratings.
  • D . Behavior-based rating factors in the appraisal system.

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Correct Answer: C
C

Explanation:

Performance appraisals are used primarily as a means of documenting employee performance and allocating bonuses. Although many performance appraisal methods include developmental goals for the following year, these goals are only for record-keeping rather than as a tool to guide future planning and feedback discussions

Question #33

A small organization does not have the time or resources to administer benefits, payroll, or personnel records programs.

Which flexible staffing alternative is an option for them?

  • A . Using in-house temporary employees
  • B . Leasing employees from a professional employer organization
  • C . Establishing a temp-to-hire program
  • D . Hiring independent contractors instead of employees

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Correct Answer: B
B

Explanation:

In this staffing alternative, an organization transfers all or substantially all employees to the payroll of an employee leasing firm. The PEO leases the employees back to the organization while handling most of the HR administrative functions.

Question #34

An organization is faced with the challenge of offering robust benefits to retain top talent while staying within budget.

How does a benefit needs assessment help address this concern?

  • A . Addresses employee engagement levels that impact productivity
  • B . Determines employee willingness to pay an increased portion of the benefit coverage
  • C . Understand what benefits have a positive impact on attracting and retaining talent
  • D . Helps to align the corporate strategy with the Employee Value Proposition

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Correct Answer: C
C

Explanation:

A needs assessment is a systematic process for determining and addressing needs, or "gaps" between current conditions and desired conditions. Completing a benefits needs assessment and analyzing the corresponding information allows the organization to revise benefit offerings to ensure top talent is retained.

Question #35

What is the value of a balanced scorecard?

  • A . Compares company’s processes and performance metrics to industry standards
  • B . Demonstrates how effectively a company is achieving key business objectives
  • C . Helps support a clear line of sight from strategic goals to strategic performance
  • D . Assesses whether a company is on track to achieve its defined business goals

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Correct Answer: C
C

Explanation:

Balanced scorecards help support a clear line of sight from strategic goals to business performance. Balanced scorecard is a strategic planning and management system. Organizations use BSCs to communicate what they are trying to accomplish; align the day-to-day work that everyone is doing with strategy; prioritize projects, products, and services; and measure and monitor progress towards strategic targets. BSC originates from the idea of looking at strategic measures in addition to traditional financial measures to get a more balanced view of performance. The concept of balanced scorecard has evolved to a holistic system for managing strategy.

Question #36

The IT department manager reports at the managers’ meeting that 50% of help desk calls are seeking direction on common tasks, such as accessing archived emails and navigating the inventory system.

Which option is the best way to address these repeated calls and free up time for the IT department to complete other strategic programs?

  • A . Create an FAQ web page with step-by-step instructions for performing common tasks.
  • B . Designate an IT team member to answer employee requests with only strategic issues to be routed to the help desk
  • C . Hold quarterly IT training courses for employees who repeatedly call the IT help desk for common issues.
  • D . Identify employees who are proficient in handling common IT tasks, train them to help other
    employees, and communicate their contacts.

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

Create an FAQ web page with step-by-step instructions for performing common tasks. Using a technology-based system with FAQ instructions on completing common tasks will save manpower and ensure employees have access to the answers they need.

Question #37

HR must create a training that will enable employees find information and guidance on how to respond to compliance and ethical issues.

Which training approach will be most effective?

  • A . Script an engaging play in which consultants illustrate compliance challenges in the workplace
  • B . Hire a local expert on business ethics to conduct a question-and-answer session with staff.
  • C . Present challenging ethical situations and enable employees to work together to analyze their responses.
  • D . Create a reference guide on ethical and compliance situations with suitable responses.

Reveal Solution Hide Solution

Correct Answer: C
C

Explanation:

Presenting challenging ethical situations that enables employees work together to analyze their responses ensures employee involvement, participation and readiness to handle ethical and compliance issues in the workplace.

Question #38

Joan is a HR leader who is collaborative, generous in giving praise, and does not like confrontations and conflicts.

How would you assess Joan’s leadership?

  • A . Joan may not provide sufficient direction and her team is most likely unproductive and weak
  • B . Joan’s team may function adequately but may not have confidence in her during challenging times.
  • C . Joan’s team will function optimally based on her positive leadership and professionalism.
  • D . Joan’s team will experience high levels of productivity and low levels of conflict.

Reveal Solution Hide Solution

Correct Answer: B
B

Explanation:

The team may function adequately but may not have a sense of trust in Joan that is useful in challenging times because she shies away from confrontation and conflict.

Question #39

An organization implements employee self-service through an HR portal for employees to check their personal data, update information, and select benefit options.

What will likely be the most important impact of this initiative?

  • A . HR head count may be reduced due to task and time savings
  • B . Employees will be trained on how to effectively utilize the portal.
  • C . Executive management will need to determine how the implementation affects its competitive advantage
  • D . Employees will obtain the benefits of lateral knowledge transfer

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

HR head count may be reduced due to task and time savings due to the implementation of a more efficient process.

Question #40

Which type of action learning is characterized by quick and easy access, and opportunities for continuous learning?

  • A . Synthesis level of learning
  • B . Coaching form of learning
  • C . The "push" model of learning
  • D . The "pull" model of learning

Reveal Solution Hide Solution

Correct Answer: D
D

Explanation:

Pull learning is learner-driven, and is linked to acquiring Knowledge, Skills, Abilities (KSA), and competencies needed to improve performance.

"Pull" models may use e-learning and blended delivery methods. Pull learning is a learner-driven, bottom-up approach that enables employees to access the information they need when and where it is needed. They are able to collaborate and make the best use of the supporting technology that links them to one another and sources of information. The focus is on performance (what you can do), sharing knowledge that leads to better performance (collaborating), and providing two-way feedback (communication).

Push learning is a siloed top-down management driven approach that sends employees to formal training events where they receive nice-to-know information. People are not connected to one another during or after the training event, and do not collaborate. The focus is on showing up (attendance), participating (raising your hand), and passing or failing (testing).

Action learning is an approach to problem solving by a group that works on real problems, takes action, and reflects on the results.

Question #41

A large hospital in the city acquires a smaller hospital, resulting in a total employee count of 1,200. As a result of the purchase, the accounts receivable unit of the small hospital, which has only six employees, is handling all outstanding patient accounts. During a workforce planning session, the HR director questions the accounts receivable manager about staffing requests for the following year. The manager informs the HR director that the department is adequately staffed and will not need more employees. Later the HR director learns that the manager has confided in other managers that he hopes to be promoted to by saving the hospital money from not hiring additional employees. Three accounts receivable employees terminate their employment abruptly. When cleaning out the desks of these employees, the accounts receivable manager finds over 100 accounts that have not been processed; monies are still outstanding on these overdue accounts. The manager distributes these overdue invoices to the other three remaining employees and tells them not to mention this to the senior manager. These employees come to the HR director in confidence to complain about the additional work, and they confide that they were instructed not to tell the senior manager about the incomplete work.

Which information should the director of HR present to the senior manager and the accounts receivable manager during the next discussion of workforce planning?

  • A . The HR director should share the information provided by the three remaining employees while keeping their identities anonymous.
  • B . The HR director should communicate how the organization’s goals and objectives are being hindered by the narrow-mindedness and personal ambitions of the account receivable manager.
  • C . The HR director should present critical information about the exit interviews of accounts receivable staff and benchmark data on the staffing plans of large hospitals of comparable size.
  • D . The HR director should offer to collaborate with the account receivable manager on lateral moves
    and job rotations.

Reveal Solution Hide Solution

Correct Answer: C
C

Explanation:

The HR director should gather exit interview information and industry data to support the recommendation of why the accounts receivable department needs additional employees to achieve an optimal level of staffing.

Question #42

A large hospital in the city acquires a smaller hospital, resulting in a total employee count of 1,200. As a result of the purchase, the accounts receivable unit of the small hospital, which has only six employees, is handling all outstanding patient accounts. During a workforce planning session, the HR director questions the accounts receivable manager about staffing requests for the following year. The manager informs the HR director that the department is adequately staffed and will not need more employees. Later the HR director learns that the manager has confided in other managers that he hopes to be promoted to by saving the hospital money from not hiring additional employees. Three accounts receivable employees terminate their employment abruptly. When cleaning out the desks of these employees, the accounts receivable manager finds over 100 accounts that have not been processed; monies are still outstanding on these overdue accounts. The manager distributes these overdue invoices to the other three remaining employees and tells them not to mention this to the senior manager. These employees come to the HR director in confidence to complain about the additional work, and they confide that they were instructed not to tell the senior manager about the incomplete work.

Since the accounts receivable manager is against adding staff, which workforce strategy should the HR director encourage the manager to take for developing the accounts receivable department?

  • A . Encourage the manager to consider buy or build workforce approaches to help the department meet the organizational demands in the immediate future
  • B . Implement a retention incentive program to encourage employees of the department to stay
  • C . Develop a management training program for employees to be trained on the accounts receivable tasks as prospective replacements
  • D . Reorganize reporting relationships to expand opportunities for job enrichment and span of control

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

The best answer is for the HR director to work with the manager to develop new workforce solutions to meet the staffing needs of the department. Buy talent means hire someone; build talent means train existing employees, borrow talent means engage the services of a freelancer or consultant.

Question #43

A large hospital in the city acquires a smaller hospital, resulting in a total employee count of 1,200. As a result of the purchase, the accounts receivable unit of the small hospital, which has only six employees, is handling all outstanding patient accounts. During a workforce planning session, the HR director questions the accounts receivable manager about staffing requests for the following year. The manager informs the HR director that the department is adequately staffed and will not need more employees. Later the HR director learns that the manager has confided in other managers that he hopes to be promoted to by saving the hospital money from not hiring additional employees.

Three accounts receivable employees terminate their employment abruptly. When cleaning out the desks of these employees, the accounts receivable manager finds over 100 accounts that have not been processed; monies are still outstanding on these overdue accounts. The manager distributes these overdue invoices to the other three remaining employees and tells them not to mention this to the senior manager. These employees come to the HR director in confidence to complain about the additional

work, and they confide that they were instructed not to tell the senior manager about the incomplete work.

What should the HR director do about the accounts receivables that have not been processed?

  • A . Allow the accounts receivable manager to handle the processes and procedures of the department.
  • B . Engage co-sourcing services to ensure the account receivables are processed and the monies are received from the overdue accounts
  • C . Inform the senior manager of the unprocessed accounts receivables with details of the its negative impact on the hospital’s financials.
  • D . Investigate, document, and respond to the reports by discussing with the senior manager and the
    accounts receivable manager.

Reveal Solution Hide Solution

Correct Answer: D
D

Explanation:

The HR director must first investigate to ensure that the complaints are true. After this is done, the HR Director can follow up by documenting and discussing the problem with the senior manager and the accounts receivable manager to get clarification on the reasons for the behavior. Co-sourcing is a partnership between a company and an outside vendor. A company chooses the vendor, which works with and often alongside―but doesn’t replace―the existing staff based on specific skills needed to get the job done.

Question #44

A large hospital in the city acquires a smaller hospital, resulting in a total employee count of 1,200. As a result of the purchase, the accounts receivable unit of the small hospital, which has only six employees, is handling all outstanding patient accounts. During a workforce planning session, the HR director questions the accounts receivable manager about staffing requests for the following year. The manager informs the HR director that the department is adequately staffed and will not need more employees. Later the HR director learns that the manager has confided in other managers that he hopes to be promoted to by saving the hospital money from not hiring additional employees. Three accounts receivable employees terminate their employment abruptly. When cleaning out the desks of these employees, the accounts receivable manager finds over 100 accounts that have not been processed; monies are still outstanding on these overdue accounts. The manager distributes these overdue invoices to the other three remaining employees and tells them not to mention this to the senior manager. These employees come to the HR director in confidence to complain about the additional work, and they confide that they were instructed not to tell the senior manager about the incomplete work.

Which approach should the HR director take after learning that a competing hospital is opening nearby and recruiting for office positions?

  • A . Benchmark the competition, develop and communicate an employment branding strategy
  • B . Increase employee remuneration to lead the industry average compensation in the area
  • C . Measure employee engagement through focus groups and opinion surveys.
  • D . Retain talent by implementing a flat and high involvement organization

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

It is important to gather relevant data through benchmarking and establish an employment branding strategy. The HR director needs to gather critical data about the competition, develop a brand strategy, and communicate the strategy to all concerned parties. An employment brand is the image that a company’s prospective, current and past employees have in their minds about the employment experience at the company.

Question #45

Grade 12 of a company’s salary structure has a mid-point of $46,500. A full-time employee in grade 8 has a base salary of $45,000.

What is the compa-ratio of the employee?

  • A . 0.75
  • B . 0.85
  • C . 0.96
  • D . 0.70

Reveal Solution Hide Solution

Correct Answer: C
C

Explanation:

Compa-ratios are used to measure and monitor an individual’s actual rate of pay to the midpoint of their pay range. The formula for compa-ratio is current base salary / midpoint of the salary range. $45,000 / $46,500 = 0.96 (or 96% of the midpoint). A compa-ratio of <1.0 indicates that the salary range is less than the midpoint. A compa-ratio of > 1.0 indicates that the salary range is greater than the midpoint. Employers generally rely on three factors for wage setting: minimum, midpoint and maximum.

Some employers establish minimum and maximum salary levels at 75 percent and 125 percent of the midpoint, respectively. For example, if the salary range for an executive assistant is $56,000 to $94,000, and the midpoint is $75,000, which means the employee is fully capable of performing all the functions of the job. An employee who hasn’t yet met all the performance goals could receive 75 percent of that midpoint, which is $56,250; the maximum level is 125 percent of $75,000, which is $93,750. Red circle is above the maximum and green circle is below the minimum.

Question #46

What is the name of Ulrich and Brockbank’s alternative structural model that offers transactional services and is mostly used in organizations with multiple business units?

  • A . centralized model
  • B . decentralized model
  • C . functional model
  • D . shared services model

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Correct Answer: D
D

Explanation:

The Ulrich model features Business Partners, Shared Services, Centers of Expertise. In a shared services model, multiple business units agree to share and select what is needed from a menu of HR services. A shared services approach involves centralizing routine HR services across different parts of the business. Good to know: David Ulrich identified four roles that HR professional plays; employee champion, administrative expert, change agent, and strategic partner.

Question #47

"Tell me about a time you needed to get information from someone who wasn’t very responsive.

What did you do?" C this is what type of interview?

  • A . Non-structured interview
  • B . Behavioral interview
  • C . Structured interview
  • D . Situational interview

Reveal Solution Hide Solution

Correct Answer: B
B

Explanation:

Behavioral interview is an interview based on discovering how the interviewee previously acted in specific employment-related situations. The logic is that how you behaved in the past will predict how you will behave in the future. Structured interview occurs when each interview is presented with exactly the same questions in the same order. In situational interviewing, applicants are asked to respond to a specific hypothetical situation they may face on the job.

Question #48

The C-Suite of a company with 600 employees intends to hire 150 employees in the next 12 months. The Chief Operating Officer and the HR Director are both responsible for the expansion initiative. The company headquarters is located in a small underdeveloped city. The local school system is slightly above the state average in terms of funding and graduation levels. The local economy is based on small businesses and manufacturing. The wage base in the city is significantly lower than that of the nearest larger city. The HR director is concerned about the ability to attract new candidates. The new positions will be administrative, business development, technical, and managerial. The HR director intends to propose that some current employees can be developed for promotion. The HR staff of two employees is excited about the project.

Which would be the first step the HR director should take to gather more detailed information to begin the staffing process?

  • A . Obtain feedback from internal and external stakeholders
  • B . Meet with the Chief Operating Officer to establish a talent acquisition strategy
  • C . Prepare a business case to build support for the initiative
  • D . Determine what assessment metrics would accurately rate the effectiveness of the initiative

Reveal Solution Hide Solution

Correct Answer: B
B

Explanation:

Talent acquisition is a long-term HR strategy aimed at fulfilling organizational needs by finding top talent and convincing them to bring their unique skills to the company. The talent acquisition strategy is the basis for recruitment and selection activities. All other activities stem from the talent acquisition strategy.

Question #49

The C-Suite of a company with 600 employees intends to hire 150 employees in the next 12 months. The Chief Operating Officer and the HR Director are both responsible for the expansion initiative. The company headquarters is located in a small underdeveloped city. The local school system is slightly above the state average in terms of funding and graduation levels. The local economy is based on small businesses and manufacturing. The wage base in the city is significantly lower than that of the nearest larger city. The HR director is concerned about the ability to attract new candidates. The new positions will be administrative, business development, technical, and managerial. The HR director intends to propose that some current employees can be developed for promotion. The HR staff of two employees is excited about the project.

Which tactic should the HR director take to effectively recruit outside the local market upon realizing that the company will not be able to find qualified candidates locally, particularly for specialized positions?

  • A . Hire a staffing agency to find suitable candidates for the specialized positions.
  • B . Engage in a job analysis and job evaluation for the specialized positions to ensure competitiveness
  • C . Explore the options of near-shoring and co-sourcing to fill the positions
  • D . Revert to the C-suite for an executive decision specific to the specialized positions.

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

The best option is to hire a staffing agency to find suitable candidates for the specialized positions. The other alternatives do not provide a solution to the need to recruit for the specialized positions. Near-shoring happens when an organization decides to transfer work to companies that are less expensive and geographically closer. Co-sourcing is a partnership between a customer and an outside vendor, a professional service provider. A company chooses the vendor, which works with and often alongside―but doesn’t replace―the existing staff.

Question #50

The C-Suite of a company with 600 employees intends to hire 150 employees in the next 12 months. The Chief Operating Officer and the HR Director are both responsible for the expansion initiative. The company headquarters is located in a small underdeveloped city. The local school system is slightly above the state average in terms of funding and graduation levels. The local economy is based on small businesses and manufacturing. The wage base in the city is significantly lower than that of the nearest larger city. The HR director is concerned about the ability to attract new candidates. The new positions will be administrative, business development, technical, and managerial. The HR director intends to propose that some current employees can be developed for promotion. The HR staff of two employees is excited about the project.

Which step should the HR director take to identify employees who the company can promote into new positions in a short time frame?

  • A . Identify the KSAs needed, post the openings on social media, and select the most qualified applicants for the role.
  • B . Identify the KSAs needed, use a HR software to match the skills of employees, and analyze their performance evaluations.
  • C . Identify the KSAs needed for the open positions and invite employees to apply using the company intranet.
  • D . Identify the KSAs needed, hold a focus group of supervisors and employees, and select the
    employees based on the group’s feedback.

Reveal Solution Hide Solution

Correct Answer: B
B

Explanation:

Identify the KSAs needed, use an HR software to match the skills of employees, and analyze their performance evaluations. Option B is a systematic and objective option that will help identify employees ready for promotion. Note that the process is not a recruitment but an identification for promotion from within the company.

Question #51

The C-Suite of a company with 600 employees intends to hire 150 employees in the next 12 months. The Chief Operating Officer and the HR Director are both responsible for the expansion initiative. The company headquarters is located in a small underdeveloped city. The local school system is slightly above the state average in terms of funding and graduation levels. The local economy is based on small businesses and manufacturing. The wage base in the city is significantly lower than that of the nearest

larger city. The HR director is concerned about the ability to attract new candidates. The new positions will be administrative, business development, technical, and managerial. The HR director intends to propose that some current employees can be developed for promotion. The HR staff of two employees is excited about the project.

Which method would best prepare current employees for intended promotion into the specialized positions?

  • A . Create job-specific trainings for all employees based on the ADDIE model with features of vertical and horizontal loading
  • B . Create a talent recruitment strategy and develop individual development plans for all employees
  • C . Develop a management training program for succession planning and to create a pool of prospective replacements.
  • D . Develop a career management plan which includes identifying high-potential employees and
    preparing an individual development plan for them.

Reveal Solution Hide Solution

Correct Answer: D
D

Explanation:

Creating a career management plan for high-potential employees that includes an individual development plan for each of them is the best option to prepare current employees for promotions. An individual development plan (IDP) is a tool to assist employees in career and personal development. Its primary purpose is to help employees reach short and long-term career goals, as well as improve current job performance.

Question #52

A company is consistently having trouble hiring designers in its creative department, a key unit within marketing that produces all the graphic and pictorial art deliverables for clients. After a couple of months, the recruiting team finds a strong candidate. The candidate requests working first as an independent contractor and then transitioning to permanent employment. After two weeks, work is going smoothly, and the creative unit manager is working with the HR manager to extend an employment offer. Company policy requires all new candidates must successfully pass a drug screen as a condition of employment, but when the candidate is tested, the candidate tests positive for marijuana. The HR manager questions the candidate, who states that the drug was used while he was on a consultancy job in a state where recreational use of marijuana is legal.

The creative unit manager requests that the HR manager make an exception to the company policy and allow the hiring process to continue.

How should the HR manager address the request?

  • A . Clarify that passing the drug test is an established employment requirement
  • B . Acquiesce to the creative manager’s request
  • C . Compare the law of the state with the company’s drug use policy
  • D . Advice the candidate that the contract will have to be terminated.

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

The HR manager must explain to the creative manager that passing the drug test is an established employment requirement and exceptions cannot be made for the candidate as that will indicate discriminatory employment practices and endanger the productivity and safety of employees and the company.

Question #53

A company is consistently having trouble hiring designers in its creative department, a key unit within marketing that produces all the graphic and pictorial art deliverables for clients. After a couple of months, the recruiting team finds a strong candidate. The candidate requests working first as an independent contractor and then transitioning to permanent employment. After two weeks, work is going smoothly, and the creative unit manager is working with the HR manager to extend an employment offer. Company policy requires all new candidates must successfully pass a drug screen as a condition of employment, but when the candidate is tested, the candidate tests positive for marijuana. The HR manager questions the candidate, who states that the drug was used while he was on a consultancy job in a state where recreational use of marijuana is legal.

The senior executive team requests that the HR manager research industry leanings regarding hiring policies and drug use during personal time.

How should the HR manager gather the information?

  • A . Utilize HR analytics to provide predictive context and explain the productivity issues that drug use can present
  • B . Determine the specific end goal of the executives on the requested information regarding drug use during personal time
  • C . Present a list of alternative competent candidates that tested negative to illegal drugs
  • D . Provide the information to the executive board and hire the candidate, on the premise that drugs
    cannot be used on duty.

Reveal Solution Hide Solution

Correct Answer: B
B

Explanation:

The HR manager should gather the information requested by determining the specific goals for the research. This will ensure the information gathered is aligned with the need for which it was requested and clarify the purposes.

Question #54

The Deal multinational corporation practices an ethnocentric international business strategy. However, several global trends may necessitate a change in the corporation’s strategy.

Which of the following global trends has been marked by an increase in Foreign Direct Investments (FDIs) and reverse innovations?

  • A . An upsurge in the economic power of developed economies.
  • B . A change in influence from developed economies to emerging economies.
  • C . The vast importance of technology over geography and population.
  • D . The impact of a global pandemic and recession.

Reveal Solution Hide Solution

Correct Answer: B
B

Explanation:

Increases in FDIs and reverse innovations (or trickle-up innovation) are indicative of a shift in influence from developed economies to emerging economies. FDI inflow into developing economies now exceeds its flow into developed economies. Reverse innovations are those that start in emerging economies and spread to developed economies. Term to Note: Demographic Dichotomy means the workforce in emerging economies is becoming disproportionately young, while the workforce in developed economies is rapidly aging.

Question #55

As part of an organization’s strategy to communicate the complete value of what it offers to employees, which of the following is the most effective option a compensation and benefits manager should select?

  • A . Make the salary structure, salary ranges and salary grades public and accessible to all employees.
  • B . Communicate the higher percentage of health insurance costs that the employer shoulders.
  • C . Provide detailed messages to employees on the benchmarking process of determining equitable compensation.
  • D . Provide a customized hidden paycheck to employees.

Reveal Solution Hide Solution

Correct Answer: D
D

Explanation:

The hidden paycheck is made up of benefits that don’t necessarily show up on a paycheck stub. Hidden paychecks provide a more complete picture of how much an employer spends on employee salaries, wages, and benefits. Hidden paychecks include "hidden" costs such as overtime pay, social security payments, unemployment insurance payments, workers’ compensation, health benefits, sick and vacation days, tuition reimbursements, 401(k) matches, disability insurance, workers’ compensation, etc. Hidden paychecks provide an individualized total compensation statements that shows the total value of an individual’s compensation and benefits package.

Question #56

A conglomerate export its products to foreign countries, where it establishes production facilities. However, its products, procedures, unique business processes, and strategy are developed in the home country.

With regard to the Bartlett and Ghoshal’s Typology of Multinational Companies, this conglomerate is practicing a/an ——– strategy?

  • A . Multidomestic
  • B . International
  • C . Transnational
  • D . Global

Reveal Solution Hide Solution

Correct Answer: B
B

Explanation:

International firms export their products or services to foreign countries C and are referred to as practicing an exporting strategy. The international strategy has little need for local adaptation and global integration. Products are produced in the company’s home country and sent to customers all over the world. Where there are subsidiaries (if any), these subsidiaries serve the purpose of local channels through which the products are sold to the end consumer. Large wine producers from France and Italy are good examples of companies with an international business strategy.

Question #57

Which of the following options states how the Patient Protection and Affordable Care Act (PPACA) amended the Consolidated Omnibus Budget Reconciliation Act (COBRA)?

  • A . Increased the qualifying events that may permit 36 months of coverage
  • B . Extended the eligibility time period for employee COBRA applications
  • C . Increased the list of who is considered a qualified dependent
  • D . Required coverage of an employee’s adult children up to age 26.

Reveal Solution Hide Solution

Correct Answer: D
D

Explanation:

Under PPACA (also called the Affordable Care Act), plans that offer coverage to children on their parents’ plan must make the coverage available until the adult child reaches the age of 26.

What You Need To Know about COBRA: COBRA requires temporary health continuation coverage to be offered to covered employees, their spouses, their former spouses, and their dependent children when group health coverage would otherwise be lost due to certain specific events. These qualifying events include the death of a covered employee, termination or reduction in the hours of a covered employee’s employment (for reasons other than gross misconduct,) divorce or legal separation from a covered employee, a covered employee’s becoming entitled to Medicare, and a child’s loss of dependent status (and therefore coverage) under the plan.

COBRA generally applies to all group health plans by private-sector employers with at least 20 employees or by state and local governments. It does not apply to plans sponsored by the Federal Government. Qualified individuals may be required to pay the entire premium for coverage up to 102% of the cost to the plan.

COBRA and HIPAA are amendments to ERISA.

Question #58

At the end of a training class on conducting research on consumer preferences in detergent brands, a training participant is asked to produce a consumer research plan for a popular detergent brand.

Which of the following levels of learning is the employee being asked to demonstrate?

  • A . Comprehension
  • B . Synthesis
  • C . Knowledge
  • D . Analysis

Reveal Solution Hide Solution

Correct Answer: B
B

Explanation:

The training participant is being asked to produce, create, or synthesize a solution to a consumer research plan. At the knowledge level, the learner might be required to name a subject mentioned in the training. The comprehension level, the learner might be asked to explain why a particular resource was used in a scenario. The analysis level might ask the learner to identify research process steps in a scenario.

Question #59

The Three-Tree landscaping firm is aiming to hire a handful of qualified staff and has posted openings that offer pay ranges that exceed the industry average. This is in a bid to develop an operative workforce as quick as possible.

The Three-Tree firm is most likely in what phase of its organizational life-cycle?

  • A . Introduction
  • B . Growth
  • C . Maturity
  • D . Decline

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

The Three-Tree firm is most likely in the introduction phase and is willing to pay more to recruit a talented and already trained workforce; the founder could also decide to outsource specialized tasks. An organization that is in a growth stage will have an improved financial standing, increased division of

labor, will add new positions but may not exceed the industry pay range.

An organization at maturity will feature consistent business results and financial predictability, the Board is more policy and strategy focused, there is an established culture, and there is an emphasis on efficiency and systems.

An organization in decline finds it difficult to respond to change, experiences high turnover, and seeks to shrink the workforce through attrition and layoffs.

Question #60

The most successful organizational change strategy is one that emphasizes?

  • A . bureaucratic authority
  • B . shared authority
  • C . rational-legal authority
  • D . a structured approach

Reveal Solution Hide Solution

Correct Answer: B
B

Explanation:

Resistance to change can be overcome by educating employees about the reasons for change, involving them in the change process, and encouraging communication and feedback. Shared authority which is where multiple employees at various company levels play a role and are involved in the change process is the best answer.

Question #61

The Team company engages in a robust organizational socialization program.

The company’s program would most likely apply to employees who get promoted and those who are;

  • A . part of a succession plan
  • B . identified as High Potential (HiPo) employees
  • C . changing career paths
  • D . working in line units that directly advance the company

Reveal Solution Hide Solution

Correct Answer: C
C

Explanation:

Organizational socialization (think of onboarding) is defined as a learning and adjustment process that enables an individual to assume an organizational role that fits both organizational and individual needs. It occurs when an individual assumes a new or changing role within an organization. New employees, employees getting promoted, and those who are changing career paths (lateral transfers) are most likely to participate in the organizational socialization program.

Question #62

What action should HR take to validate that training goals support the overall strategy?

  • A . Set training goals that target the unit objectives of the company
  • B . Measure results of the training needs analysis to make certain all sequential steps were achieved
  • C . Review training analytics with training managers and process owners for context
  • D . Create a value driver tree to determine a line of sight to the strategy

Reveal Solution Hide Solution

Correct Answer: D
D

Explanation:

A value driver tree is used to map enterprise-level goals to the functional/departmental level goals. Completing an assessment using a value driver tree would validate whether or not there is a line of sight (also called sight line) in training goals.

Line of sight means that employees can see the connection between their tasks and the organization’s strategic goals. This ensures that employee efforts help to achieve the strategic goals. (Remember strategy is done at the executive-level, it is inter-departmental, it is long-term, and it is cascaded down to departments and units)

Question #63

At the beginning of union negotiations, when parties do not have an established relationship, the first step is likely to be:

  • A . Determine the ground rules for the negotiations
  • B . Present a business case for the negotiations
  • C . Exchange ratification agreement proposals
  • D . Select the communication strategy for each side.

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Correct Answer: A
A

Explanation:

At the beginning of union negotiations, when parties do not have established relationships, the first step is to determine the ground rules for the negotiations. A business case captures the reasoning for initiating a project or task C when a function is seeking funding for a project, it most likely would present this reasoning as a business case.

A business case provides stakeholders with a management tool for evidence-based and transparent decision making. It clearly presents the risks, opportunities and threats involved putting them in perspective of the investment involved therein. A business case is developed during the early stages of a project and outlines the why, what, how, and who necessary to decide if it is worthwhile continuing a project.

Question #64

Which is most likely to occur in a company with a geocentric approach to globalization?

  • A . Headquarters policies are modified for local application only when it is required by local laws
  • B . Important cultural differences are emphasized over headquarters policies which are adjusted for local application
  • C . Individual regions are given full autonomy in the development of a compensation strategy.
  • D . Local cultural and legal compensation norms are taken into account in the administration of a
    cohesive global strategy.

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Correct Answer: D
D

Explanation:

In a geocentric organization, an international company is seen as a single global business, with management talent coming from any location in the enterprise. The strategic plan is global in orientation, while the need to balance global strategy with local cultures and regulations is well understood; Option A refers to the ethnocentric model; Option C refers to a regiocentric model. image credit: chegg.com

Question #65

The primary difference between a Health Savings Account (HSA) and a Flexible Savings Account (FSA);

  • A . Makes medical payments based on fee-for -service agreements
  • B . Provides reimbursements only for current year
  • C . Requires employees to seek medical providers within a network
  • D . applies specifically to Highly Compensated Employees

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Correct Answer: B
B

Explanation:

Both FSAs and HSAs allow people to save for their medical expenses on a tax-advantaged basis by using pretax money to pay for qualified medical costs. One difference between a HSA and a FSA is that the FSA provides reimbursement only for the current year (there are some exceptions – Employees geta grace period of 2 1/2 months to use funds or Employees can roll over $500 into next year’s FSA.).

Question #66

There has been an increase in resignations from the younger employee population. In exit interviews, the younger employees say that they feel they were overlooked by senior executive management.

Which kind of data should HR collect to help measure inclusion?

  • A . Representation of each demographic group
  • B . Diversity surveys and dashboards
  • C . Employees’ participation on work-related committees
  • D . Actual treatment of employees versus perception

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Correct Answer: D
D

Explanation:

To help measure inclusion, HR should collect data reflecting how the departing employees were treated and how they feel they were treated by management. This requires both objective data, (i.e. data obtained through observation, physical examination, and laboratory and diagnostic testing) and subjective data (information from the employees’ point of view including feelings, perceptions, and interviews). Diversity refers to the traits and characteristics that make people unique while inclusion refers to the behaviors and social norms that ensure people feel welcome.

Question #67

What is the FIRST step in protecting employee data from espionage?

  • A . Conduct thorough background investigations of all new hires who will have access to HR data
  • B . Cross-shred all HR paper documents before disposing of them
  • C . Plant false employment records to determine if someone is leaking, selling, or stealing files
  • D . Ensure that sensitive HR discussions occur only in secure environments

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Correct Answer: A
A

Explanation:

The first step to reduce the likelihood of corporate espionage is to know who is being hired. Full background checks are the first step to preventing corporate spies from entering an organization.

Question #68

An employee from an organization’s headquarters in the United States accepts a position at a subsidiary in Hong Kong. The headquarters’ assignee will receive the same pay as Hong Kong citizens working in equivalent positions.

This is an example of which international compensation approach?

  • A . Tax equalization
  • B . Headquarters-based balance sheet
  • C . Pure localization
  • D . Home-country-based balance sheet

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Correct Answer: C
C

Explanation:

Pure localization pays an assignee exactly what local nationals in equivalent positions in the host country are paid. Also, called the going rate approach, ‘localization’, ‘destination’ or ‘host country based approach’. The core of this approach lies in linking the expatriate compensation to the salary structure of the host country, taking into account local market and compensation levels of local employees.

The balance sheet approach to expatriate compensation is used to ensure employees are able to maintain their home purchasing power while on a temporary international assignment – In this approach, employees continue to be paid their home salary, maintain the link to home benefits, and receive a series of allowances to balance host vs. home costs for income taxes, goods and services, and housing. A local plus compensation approach is usually defined as an approach whereby companies pay their foreign employees according to the local (host country) salary structure plus additional compensation elements that are not typically provided to local nationals (such as transportation, housing, dependents’ education, etc.

Question #69

A company has a high record of work-related injuries, absenteeism, and substance abuse. HR intends to address these issues by first keeping records of all reportable incidents and then encouraging employee participation in corrective action.

What is the MOST important task for HR to do next?

  • A . Review policies related to drug abuse
  • B . Solicit support from top management.
  • C . Review the company’s selection procedures
  • D . Rotate workers between jobs

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Correct Answer: B
B

Explanation:

While all of the options are appropriate steps to take, the most important issue is gaining top management support. HR needs management involvement to get and keep the resources necessary to implement the effort, and employees need to see that management supports the effort.

Question #70

HR creates a focus group by soliciting volunteers from different departments to identify ways to improve work/life balance. Participants are equally divided in terms of tenure. Most are from three departments, but all departments are represented. An outside, experienced facilitator is hired to encourage brainstorming. No one is satisfied with the experience.

What might have contributed to this?

  • A . Participants are not representative of the workplace
  • B . The facilitator should have been selected from within the organization.
  • C . Participants should have been assigned by their supervisors
  • D . Brainstorming did not offer sufficient structure for discussion

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Correct Answer: A
A

Explanation:

The participants do not fully represent the workplace since there is an overrepresentation of three departments. This could decrease participation of members from other departments and give a false sense of employees’ attitudes and needs. An outside facilitator is usually more effective as is voluntary, rather than involuntary, participation. Brainstorming is appropriate for a group trying to develop alternative solutions.

Question #71

Which of the following statements about a performance appraisal system is true?

  • A . Non-supervisory employees do not need to comment on the process.
  • B . Performance appraisal is an ongoing process.
  • C . Changes to the system are not required unless the job changes.
  • D . Performance appraisals are based on the individual goals of employees

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Correct Answer: B
B

Explanation:

Performance appraisal is an ongoing process and should occur both formally and informally throughout the year. All people involved in the process should provide feedback. The process should also be evaluated on a regular basis to make sure that it still is in sync with the goals of the organization.

Question #72

In conversation outside work, a manager in another function describes secondhand reports about the marital problems of an employee in that area.

The HR professional should?

  • A . ask if the employee is having performance issues
  • B . advise the manager not to engage in gossip
  • C . not participate but not correct the behavior
  • D . approach the employee in question independently and offer counseling

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Correct Answer: B
B

Explanation:

One of the core ethical issues facing organizations is respecting employee privacy. The HR professional should model this respect for workplace privacy. Approaching the employee, even in good faith, violates privacy. If the supposed problems have created performance issues, the manager should have reported the performance issues, not the rumors.

Question #73

It is usually advised that employee handbooks avoid prohibiting an employee from verbally harassing other employees.

Why?

  • A . This can be construed as violating an employee’s Section 7 rights.
  • B . The specificity of the language can limit its applications.
  • C . It is better to leave this type of restriction as tacit information.
  • D . This creates a compliance and negative tone for the handbook

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Correct Answer: A
A

Explanation:

Different types of behavior can be interpreted as "verbal harassment," including talking to another employee about the benefits of joining a union. Therefore, this vague language could inhibit speech that is protected as a Section 7 right under the National Labor Relations Act. Recorded or not recorded, this prohibition would be problematic. Employees have the right to unionize, to join together to advance their interests as employees, and to refrain from such activity. It is unlawful for an employer to interfere with, restrain, or coerce employees in the exercise of their rights. For example, employers may not respond to a union organizing drive by threatening, interrogating, or spying on pro-union employees, or by promising benefits if they forget about the union.

Section 7 of the National Labor Relations Act (the Act) guarantees employees "the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection," as well as the right "to refrain from any or all such activities."

Question #74

When implementing a merger and acquisition strategy, which of the following has the MOST impact on long-term success?

  • A . Inadequate planning
  • B . Breakdown in communications
  • C . Lack of funding
  • D . Significant cultural mismatches

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Correct Answer: D
D

Explanation:

Studies conducted on the outcome of mergers and acquisitions show that 30% of them fail within three years, with the majority of those due to disparities in organizational cultures.

Question #75

Which of the following illustrates business operations that threaten the sustainability of the environment and society?

  • A . A compressed workweek is implemented to allow employees to commute only four days a week.
  • B . An organization in an arid climate stores rainfall on site so that it can irrigate its lawns.
  • C . Functions are required to use Web meeting and phone conferencing when possible rather than travel.
  • D . After loss of a major client, a firm issues termination notices for 25% of its workforce.

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Correct Answer: B
B

Explanation:

Sustainable business operations use resources in a responsible manner. Diverting rainwater for irrigation of facility landscaping is not sustainable or responsible to the community. Minimizing travel saves finite carbon-based fuels.

Question #76

Which of the following actions could improve the rigor of a succession planning program?

  • A . Foster strong trusting relationships between employees and their managers.
  • B . Identify pivotal jobs aligned to business drivers.
  • C . Limit senior management involvement to HR.
  • D . Initiate cross-functional training during the first month after entry

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Correct Answer: B
B

Explanation:

Succession planning is a strategic future-focused program that keeps talent in the pipeline. Organizations can benefit from identifying crucial job skills, knowledge, social relationships, and organizational practices for passing on to ensure an ongoing pool of talent and the seamless movement of talent within the organization.

Business drivers are the key inputs and activities that drive the operational and financial results of a business. Common examples of business drivers are salespeople, number of stores, website traffic, number and price of products sold, units of production.

Question #77

A union argues that a new customer service area for networking software systems should be folded into an existing unit that contains employees involved in assembling computer peripherals, since they are in the same facility and have roughly similar wage structures. The company argues that these new employees are not involved in the peripherals business.

How is the NLRB likely to rule on the bargaining unit composition?

  • A . The NLRB will probably not include the new employees but approve the creation of a separate unit.
  • B . The NLRB will probably include them since they are in the same facility.
  • C . The NLRB will probably include them because of the similarity in wages.
  • D . The NLRB will probably not include the new employees in the existing bargaining unit

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Correct Answer: D
D

Explanation:

The NLRB considers community of interests, geographical and physical proximity, employer’s administrative or territorial divisions, functional integration, interchange of employees, bargaining history in determining bargaining units. In this case, the new employees are not functionally integrated with the existing bargaining unit. A new bargaining unit cannot be created without an election.

Question #78

The creative manager asks the HR manager for help in recruiting skilled employees as the unit has had difficulty finding qualified applicants.

How should the HR manager respond?

  • A . Train and equip employees in the creative department to fill the open positions
  • B . Release a request for proposal for temporary staffing agencies
  • C . Assist the creative unit by utilizing social media recruitment
  • D . Engage the services of an industry-recognized executive search firm

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Correct Answer: C
C

Explanation:

Social media recruitment has the advantages of an increase in qualified candidates, increase in job visibility, and shorter hiring time.

Question #79

The production and operations senior executive of a conglomerate has lost several staff members to the same competitor in a different industry in the last three months. This development has not affected the department’s ability to meet its quarterly targets.

Which type of report can HR share to ease this situation?

  • A . Staff turnover report
  • B . Performance parameter results
  • C . Staff retention report
  • D . Business intelligence report

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Correct Answer: C
C

Explanation:

A staff retention report uses insights from exit interviews, surveys, and focus groups to determine an organization’s retention rate, the reasons employees leave their jobs, how working conditions can impact the reasons employees leave, and what can be done to improve staff retention levels. Note that a turnover report only provides an analysis of the number of terminated employees within a company’s total employee count for a specified period.

Question #80

—— kind of culture focuses on intangibles like beliefs, attitudes, and values?

  • A . bureaucratic
  • B . implicit
  • C . clan
  • D . explicit

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Correct Answer: B
B

Explanation:

The implicit characteristics of a culture are the underlying values, the unwritten norms of behavior that guide people regarding which behaviors are considered appropriate or inappropriate. These are subconscious customs, moral values, learning processes, and beliefs. It is also called "backstage" culture while explicit culture is "frontstage" culture.

Edgar Schein’s Model of Organizational Culture

Artifacts – Visible organizational structures and processes e.g. Architecture, furniture, dress code, office jokes.

Espoused values – the organization’s stated values and rules of behavior, e.g. mission, vision, values. Basic Assumptions – Unconscious, underlying, invisible, beliefs that are the ultimate sources of values. It is deeply embedded, taken-for-granted behaviors which constitute the essence of culture e.g. For example, an organization may espouse that remote working is a great thing while employees may have underlying beliefs that you need to be physically present at work to be recognized by executives

Question #81

What should a HR Manager consider before the last resort of termination for a long-term employee who has been previously successful?

  • A . Lateral Transfer
  • B . Vertical loading
  • C . Horizontal loading
  • D . Progressive discipline

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Correct Answer: A
A

Explanation:

A lateral transfer is a move to a different job with essentially the same title, pay, and level in an organization. Transfers are effective (in this case) if an employee was put into a wrong role because of a mismatch of skills possessed by the employee and those needed on the job.

Vertical loading (or job enrichment) gives employees responsibilities, accountability, autonomy, and control formerly reserved for higher level positions.

Horizontal loading (or job enlargement) is the practice of adding extra tasks (that require a similar level of skill) to an existing job. The difference between job enrichment and job enlargement is quality and quantity. By job enrichment, an employee finds satisfaction in respect to their position and personal growth potential C while job enlargement refers to having additional duties and responsibilities in a current job.

Question #82

What is the ultimate reason for developing workforce diversity programs?

  • A . An increase in organizational productivity
  • B . A better understanding of customers
  • C . An improvement in the ability to hire and retain top talent
  • D . Greater innovation and creativity

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Correct Answer: A
A

Explanation:

The ultimate and primary reason for developing a workforce diversity program is to engender an increase in organizational productivity and enable the achievement of corporate strategic goals. Other options are subsets of the overall primary reason.

Question #83

What are the five compensable factors of the point factor system?

  • A . Supervision, skill, enthusiasm, orientation, performance
  • B . Values, supervision, skill, knowledge, competence
  • C . Accountability, diligence, enthusiasm, engagement, motivation
  • D . Supervision, effort, working conditions, responsibility, skills

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Correct Answer: D
D

Explanation:

The 5 compensable factors that make a job more or less valuable to an organization are supervision, effort, working conditions, responsibility, skills (SEWRS). Compensable factors are used in the point factor system of job evaluation and never change but the value placed on them can change.

Question #84

What financial benefit does an employer gain in choosing to provide incentive pay to its employees rather than an increase in base pay?

  • A . It reduces the possibility of perceived pay inequities based on distributive justice
  • B . It increases organizational engagement levels
  • C . It is less burdensome to a company’s bottom-line
  • D . It improves employee morale

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Correct Answer: C
C

Explanation:

Incentive pay/variable pay/pay-for-performance refers to pay earned beyond an employee’s normal base pay i.e. wages or salary. It is pay awarded for results/performance rather than for time worked; it is not guaranteed (unlike base pay); and is paid out only if an individual/team achieves a productivity goal. Incentive pay does not add to the salary burden of an employer because staff base pay is not increased, and other forms of pay linked to base pay (overtime, shift premium, sick pay) are not impacted.

Question #85

——- states that an organization operates within a complex environment that is affected by and affecting different interests?

  • A . Shareholder theory
  • B . Resource-based theory
  • C . Stakeholder theory
  • D . Positioning theory

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Correct Answer: C
C

Explanation:

Stakeholder theory is a view of capitalism that stresses the interconnected relationships between a business and its customers, suppliers, employees, investors, communities and others who have a stake in the organization. The theory states that a firm should create value for all stakeholders – not just shareholders. Shareholder theory is the view that the only duty of a corporation is to maximize the profits accruing to its shareholders.

Question #86

—– is a work stoppage that is neither authorized nor supported by the union.

  • A . Economic strike
  • B . Wildcat strike
  • C . Sympathy strike
  • D . Cross the picket line

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Correct Answer: B
B

Explanation:

A wildcat strike is a strike undertaken by unionized workers without union leadership’s authorization, support, or approval C it is illegal.

Crossing the picket line means to go to work while other employees at one’s place of work are picketing. An economic strike is a legal strike where employees strike in order to obtain some economic concession from the employer such as higher wages, shorter hours, or improved working conditions. The following strikes are legal under Section 7 of the National Labor Relations Act (NLRA): Economic

strikes, in which employees attempt to pressure the employer to concede to their demands for improvements in wages, benefits or working conditions; and Unfair labor practice strikes, in protest of an employer’s committing an unfair labor practice.

Question #87

Employees at the Fawn corporation are canvassing for the establishment of the ——— principle in the disciplinary procedure of the company. The employees state that the principle provides that employees should be treated fairly, given clear expectations, and provided an opportunity to defend themselves for a dischargeable offense.

  • A . Distributive justice
  • B . Due process
  • C . Duty of good faith and fair dealing
  • D . Dual representation

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Correct Answer: B
B

Explanation:

In the employment context, due process involves two basic principles: that employees are entitled to know the nature of their alleged misconduct or poor performance, and that employees should be given a reasonable opportunity to respond to those allegations before any decisions are made regarding imposition of discipline. In the U.S.A., public employees that have a property interest in their job are entitled to pre-termination due process as a matter of law. This typically comes into play when there is a disciplinary action taken against a government employee whose employment terms are spelled out in a contract, often negotiated by a union.

Question #88

In which stage of strategic planning do managers develop action plans and assign staff members to projects?

  • A . Evaluation
  • B . Development
  • C . Implementation
  • D . Formulation

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Correct Answer: C
C

Explanation:

During the strategy implementation phase of strategic planning, the plan is put into action. Managers develop action plans and allocate resources toward achieving organizational objectives.

Question #89

The HR specialist prepares a business case to support an initiative. The case includes descriptions of the project’s goals and benefits, method, budget, and time-line.

What other information would have been good to include?

  • A . Endorsements from organization stakeholders
  • B . Communication plan the project team will use
  • C . Detailed description of the methodology that will be used
  • D . Analysis of the initiative’s possible risks

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Correct Answer: D
D

Explanation:

The business case should include some discussion of possible risks and approaches to managing them. Detailed descriptions are not suitable for this audience. Endorsements are not usually part of a business case.

Question #90

The evaluation level of learning characterizes changes in what?

  • A . Knowledge
  • B . Engagement
  • C . Productivity
  • D . Performance

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Correct Answer: A
A

Explanation:

The learning level of the Kirkpatrick training evaluation model evaluates how the training has developed the trainees’ knowledge, skills, and abilities based on the learning objectives. The reaction level helps to measure how engaged the trainees were, how actively they contributed, and how they reacted to the training. The behavior level helps to understand how well employees applied what they learnt. The results level includes training outcomes which demonstrate a good return on investment (ROI), and improvements in organizational productivity.

Question #91

What branding proposition best answers the question why a talented individual would want to work for a particular company?

  • A . Develop an employee value proposition
  • B . Leverage current employees and alumni network
  • C . Cultivate a strong onboarding process
  • D . Offer learning and development opportunities

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Correct Answer: A
A

Explanation:

Employee Value Proposition (EVP) refers to the rewards and benefits received by employees in return for their performance at the workplace. An Employee Value Proposition (EVP) as a set of associations and offerings provided by an organization in return for the skills, capabilities and experiences an employee brings to the organization. Developing an EVP is crucial to an effective employer brand strategy.

Question #92

What talent strategy ultimately emphasizes the organization’s needs when considering an employee’s career path?

  • A . Training and development
  • B . Career management
  • C . Career planning
  • D . Talent management

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Correct Answer: B
B

Explanation:

Career management is an employer-driven talent strategy that involves preparing, implementing, and monitoring employee career paths with a primary focus on the goals and needs of the organization. Career planning is an ongoing process whereby an individual sets career goals and identifies the means to achieve them – it is the individual’s responsibility. Talent Management is the full-scope of integrated HR processes designed to attract, develop, motivate, retain, and deploy productive employees to achieve organizational goals.

Question #93

What budgeting method categorizes according to enterprise undertakings as opposed to standard departments?

  • A . Zero-based budgeting
  • B . Formula-based budgeting
  • C . Capital budgeting
  • D . Activity-based budgeting

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Correct Answer: D
D

Explanation:

Activity-based budgeting records, researches, and analyzes activities that lead to costs for a company and thereafter prepares the budget based on the result. With activity-based budgeting, corporate activities are thoroughly analyzed to predict costs. With zero-based budgeting, all expenses must be justified for each new period.

Question #94

What is the role of HR when conducting an investigatory interview?

  • A . Risk manager
  • B . Compliance officer
  • C . Procedural advisor
  • D . Subject matter expert

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Correct Answer: A
A

Explanation:

Allegations of serious misconduct leads to workplace investigation which include investigatory interviews which are crucial to a fair outcome. When investigatory interviews are done correctly, they can uncover essential information for or against allegations of wrongdoing. However, when carried out poorly, they can lead to serious consequences for a company, including substantial damage, back pay awards or even full reinstatement of an employee.

Question #95

What is the best way to increase confidence in stakeholders regarding business continuity and disaster recovery?

  • A . Engagement survey of company readiness in the event of a disaster
  • B . Conducting training drills
  • C . Developing a business case
  • D . Provide metrics from benchmarking disaster recovery plans of similar companies

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Correct Answer: B
B

Explanation:

By conducting training drills it shows a preparedness for business continuity and disaster recovery situations.

Question #96

Why would the Human Resource function perform a benefits needs assessment?

  • A . It enables the organization to understand competitors’ benefits practices
  • B . It prioritizes the employer’s strategic perspective of employee benefits
  • C . It determines the best benefits selection and design, industry-wide
  • D . It is crucial to attracting and retaining top talent

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Correct Answer: D
D

Explanation:

A needs assessment should be conducted to determine the best benefits selection and design based on the needs and wants of the employees. The needs assessment may include an employer’s perception of employee benefits needs, competitor’s benefits practices, and tax laws and regulations.

Question #97

What key determination must be made prior to outsourcing a function?

  • A . What is the cost of resources and technology required to keep the function in-house?
  • B . Is there a service level agreement in place?
  • C . Does it involve a competency core to the firm?
  • D . Has a needs assessment been completed?

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Correct Answer: C
C

Explanation:

The purpose of outsourcing is to ensure best practice in key business components such as data processing, supply-chain management, warehousing, etc. By divesting themselves of these non-core activities, companies can focus their energy on core business areas where they have the competitive advantage, while taking advantage of cost savings from the outsourced functions. Core activities are the vital activities of an organization. If the organization outsourced its core functions, it would be creating a competitor or dissolving itself.

Question #98

What should a HR professional do prior to initiating a major, sweeping, controversial change initiative?

  • A . Infuse accurate information about the change initiative into the grapevine
  • B . Evaluation of the initiative
  • C . Needs assessment
  • D . Pilot program

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Correct Answer: D
D

Explanation:

The purpose of conducting a pilot study is to examine the feasibility of an initiative before it is implemented on a larger scale. A pilot study is usually carried out on small select members of the relevant population.

Question #99

When considering a Reduction In Force (RIF), what offer might be made?

  • A . COBRA benefits must be provided by all employers to all employees subject to the RIF
  • B . Give employees the option to volunteer
  • C . Compliance requirements such as a severance package
  • D . Last In – First Out (LIFO) layoff system per the Older Workers Benefit Protection Act (OWBPA)

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Correct Answer: B
B

Explanation:

COBRA does not apply to every employer but to employers with 20 or more employees. Severance packages are voluntary and not compliance-related. The OWBPA does not require a LIFO system in RIFs – the OWBPA protects the employee benefits of older workers.

Question #100

The HR professionals in a corporation have updated their tools to include an advanced analytics tool that displays important, high-level, real-time HR metrics using interactive data visualizations that can be configured to show how it correlates with strategic goals.

This tool is most likely a;

  • A . Dashboard
  • B . Predictive analytics
  • C . Balanced scorecard
  • D . Performance data tool

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Correct Answer: A
A

Explanation:

A HR dashboard is an advanced analytics tool that displays important HR metrics using interactive data visualizations. Turning to a professional online dashboard, HR professionals can keep a close eye on employee performance, recruiting, and talent management processes.

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