Practice Exam-SCP
This practice exam is comprised of items that have previously been used on actual SHRM certification exams and is scored in the same manner as those exams.
It is strongly encouraged that you utilize this valuable tool when you are nearing your exam date, as this will provide the most realistic evaluation of your exam readiness. It is recommended that you take the practice exam when you have completed your studies. While the practice exam can be taken more than once, the items do not vary each time you take it, therefore it is best if your first attempt is treated similarly to sitting for the exam.
This test includes a timing feature and a mark and review feature. The timing feature shows a clock that decreases the time you have for the exam. It is set to 240 minutes. If you have used that time, the clock will continue to count backward to show how much time you went over for this test. If you leave the practice exam or log off when you still have time left on the clock, time will continue to decrease. You will be able to come back into the test with whatever time remains. If you have no time left, you will have to start the test over.
Similar to the SHRM-CP and SHRM-SCP exam, no answers or rationales will be provided for the questions on the practice exam.
NOTE: When you finish answering question 67, the last question of the first section of the exam, click “Review.” When ready to submit the first section of the exam for grading (you will not be able to return to this section), click “End Review” and then click “Submit.”
What is the most comprehensive level of strategic integration between HR management and a senior management team?
Answers
The senior management team suggests alternative strategies to HR executives, who then study the HR implications of the strategies, present the findings, and oversee the implementation of an approved plan.
HR focuses on making sure that the senior management team values the day-to-day activities of HR, such as training, compensation, benefits, safety, security, and performance appraisals.
The senior management team develops the strategic plan, and HR implements the plan.
HR executives have a continuing relationship with other executives within the senior management team, with strategy and implementation evolving as new information becomes available
What method is a company using when it compares its practices to best-in-class companies?
Answers
Integrity
Corporate sustainability
Benchmarking
Balanced scorecard
Which is the initial step in the development of a diversity training program?
Answers
Analyze diversity training marketplace offerings.
Select appropriate training method.
Analyze competitors’ diversity training.
Develop diversity training goals.
Which is an example of shared value?
Answers
A company investing in a new software which reduces the need to print documents
A company paying for the school supplies for hundreds of children in the community
A company sending volunteers to a disaster area to assist with relief efforts
A company providing electricity in an under-served rural community and increasing its profits
A U.S.-based project manager for a communications company has recently assumed the global team lead role. Team members are based in the U.S. and Europe and operate under a matrix structure with target reporting to headquarters in Germany. Which factor is the best predictor of the team lead’s success?
Answers
Equal treatment of U.S.-based team and Europe-based team
Core working hours across time zones
Standardized equipment to support seamless communication across geographic regions
Goals and rewards that encourage collaboration
Which outcome of a selection test provides the best demonstration of validity?
Answers
No indications or legal claims of discrimination exist.
Scores are not significantly different when a single individual takes the test more than once.
Applicants that score high on the test also perform well on the job.
All applicants with similar backgrounds are selected.
A company recently started contracting with firms abroad, where labor costs are lower, to manufacture and assemble products. The company has developed a set of labor standards that contractors must agree to adopt. What approach is likely to be most effective in ensuring compliance with the standards?
Answers
Require contractors to monitor themselves and certify their compliance annually.
Depend on local authorities to ensure that the contractors comply with local laws.
Depend on the International Labour Organization for compliance.
Engage a third party labor standards organization to monitor compliance.
When is it ideal to implement a corporate social responsibility program?
Answers
During organizational start-up when a business strategy is selected
When profits are stable and revenue is irrelevant
When the organization is mature and revenue has plateaued
During an organizational reinvention when revenue begins to decline
What conflict management technique is the most appropriate when maintaining a good long-term relationship is very important?
Answers
Compromising
Avoiding
Accommodating
Collaborating
Which HR metric is most relevant to an organization concerned with tracking labor costs?
Answers
Time to fill
Revenue per employee
Human capital value added
Training costs per employee
Why is the interview process an undependable preview of an organization’s culture?
Answers
Interviews contain insufficient information about career and income potential.
Applicants are reluctant to ask questions about organizational culture.
Recruiters convey very little information about organizational culture.
Interviews often present only the positive attributes of organizational culture.
Which is a challenge in implementing the shared services model approach to HR?
Answers
Increasing dedicated HR resources
Addressing relationship issues
Increasing duplication of HR services
Lowering levels of inefficiency and customer service
At which step in the development of an organization’s corporate social responsibility (CSR) program is HR representation most critical?
Answers
Establishing the mission, vision, and values
Developing the CSR strategy
Responding to reports of violations of corporate standards of conduct
Conducting orientation and training
What analysis technique is used to develop workforce planning estimates that remain accurate during strategy changes because it accounts for internal and external factors?
Answers
Descriptive
Scenario
Labor market
Strategy
Which helps businesses recover and protect their infrastructure if an unforeseen event occurs?
Answers
Standard operating procedures
Disaster recovery plan
Succession continuity plan
Materials management
According to the balanced scorecard approach, which key performance indicator falls under the internal business processes area?
Answers
Mystery shopper score of 80% for the branch
ISO 9001 certification by year-end
Appropriate certification of all the staff in wealth management by midyear
Increase in profit of 10% by year-end
What HR activity occurs during, rather than before, a merger and acquisition integration?
Answers
Conducting due diligence
Assessing risk
Identifying possible conflicts
Recognizing cultural differences
What is most useful for attracting high-fit managerial or executive candidates when using e-recruiting?
Answers
A simple, universal interface that allows the candidate to see all listings at once without filters
Information about the company culture, including a realistic job preview
The top salary and benefits package for each position
Statistical information about the proportion of candidates who are successful on the job
Organizations are most likely to utilize external vendors and consultants for which activity?
Answers
Establishing a learning management system
Conducting an organizational needs assessment
Designing a management development program
Establishing an on-the-job training program
What is the most effective way for an organization that operates internationally to acquire the necessary talent?
Answers
Build a differentiated employer brand based on what is most attractive to the talent that is in demand in the countries where it operates.
Develop a strong advertising campaign through different media to attract as many applicants as possible.
Set clear career development paths to incorporate career goals of the in-demand talent.
Partner with an international executive search firm to source required talent.
Refer to the following scenario for the next 3 questions.
In a technology company of 3,000 employees, a recent HR satisfaction survey reveals that less than one third of the company is satisfied with HR’s customer service. The company’s CEO tells the HR director to fix the problem and improve the customer service scores by the next annual survey. There has not been much turnover in the HR department. Many of the HR employees have been with the organization for several years, while the other business units have grown and are now led by managers with less tenure. The HR director first calls together a focus group of business unit managers to better understand the low satisfaction level. The low satisfaction seems to be linked to the lack of HR responsiveness to requests and the very transactional attitude of the HR staff. The HR director then schedules a focus group of HR staff to ask them what they think may be responsible for the survey results. The HR team members complain that the business unit managers are unaware of HR processes and systems and are unsure of who does what in HR. At the same time, the HR staff is unaware of business needs and who the key stakeholders are in the business units. To bridge this communication gap, the HR director decides to redesign the HR organization. The new HR organizational design will include an HR service center to handle everyday tactical HR requests and business partners who will work with each business unit manager.
What is one of the first actions the business partners should take to prepare for their new roles as internal consultants?
Answers
Attend comprehensive training on HR functional areas as well as training on general consulting skills.
Implement HRIS self-service tools to enhance workflow efficiency and accommodate the anticipated workload volume.
Study the company’s strategy, competitive landscape, and key financial metrics.
Establish a mentoring relationship with a seasoned HR leader as well as a business unit manager.
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In a technology company of 3,000 employees, a recent HR satisfaction survey reveals that less than one third of the company is satisfied with HR’s customer service. The company’s CEO tells the HR director to fix the problem and improve the customer service scores by the next annual survey. There has not been much turnover in the HR department. Many of the HR employees have been with the organization for several years, while the other business units have grown and are now led by managers with less tenure. The HR director first calls together a focus group of business unit managers to better understand the low satisfaction level. The low satisfaction seems to be linked to the lack of HR responsiveness to requests and the very transactional attitude of the HR staff. The HR director then schedules a focus group of HR staff to ask them what they think may be responsible for the survey results. The HR team members complain that the business unit managers are unaware of HR processes and systems and are unsure of who does what in HR. At the same time, the HR staff is unaware of business needs and who the key stakeholders are in the business units. To bridge this communication gap, the HR director decides to redesign the HR organization. The new HR organizational design will include an HR service center to handle everyday tactical HR requests and business partners who will work with each business unit manager.
What is the most effective long-term strategy to ease any tension felt between the HR staff in the new HR service center and the business partners due to the reorganization of the HR department?
Answers
Present a town hall style meeting for the HR department to showcase the various HR roles and their responsibilities.
Create a job rotation program to improve understanding about the value of various HR roles.
Offer EAP services to HR staff members to assist with their personal and professional transitions.
Provide facilitation skills training for the HR department with a focus on improving the skills of the business partners.
In a technology company of 3,000 employees, a recent HR satisfaction survey reveals that less than one third of the company is satisfied with HR’s customer service. The company’s CEO tells the HR director to fix the problem and improve the customer service scores by the next annual survey. There has not been much turnover in the HR department. Many of the HR employees have been with the organization for several years, while the other business units have grown and are now led by managers with less tenure. The HR director first calls together a focus group of business unit managers to better understand the low satisfaction level. The low satisfaction seems to be linked to the lack of HR responsiveness to requests and the very transactional attitude of the HR staff. The HR director then schedules a focus group of HR staff to ask them what they think may be responsible for the survey results. The HR team members complain that the business unit managers are unaware of HR processes and systems and are unsure of who does what in HR. At the same time, the HR staff is unaware of business needs and who the key stakeholders are in the business units. To bridge this communication gap, the HR director decides to redesign the HR organization. The new HR organizational design will include an HR service center to handle everyday tactical HR requests and business partners who will work with each business unit manager.
What is the most important role the HR director should play when implementing the new business partner organizational model?
Answers
Work as a business partner for a short period of time to better understand the role and its challenges.
Promote the business partners’ capabilities and the benefits of the new service delivery model to the organization.
Appoint a project manager for the roll-out of the new service delivery model project.
Enforce policies related to the business partner role and assignments consistently.
Refer to the following scenario for the next 3 questions.
The chief human resource officer (CHRO) of a large international company realizes that the pace of change within the company is increasing due to several factors, including increased competition, technological advances, growth, and globalization. The main challenge is that the HR department lacks the skills to effectively manage change globally. It has always been difficult to build HR capabilities throughout the company due to its size and because each of its country units operate independently. These difficulties have resulted in the company being unable to establish a company-wide training curriculum. Each country’s HR leadership team has the autonomy to set their own training priorities, and there is resistance whenever a required training mandate comes from corporate headquarters. A member of the corporate HR team notices the need to improve the company’s ability to effectively manage change, and presents the issue to the CHRO. The CHRO asks an HR employee to draft a proposal for how to address the challenge. The executive team is meeting in two weeks and the CHRO wants to request the necessary funding for the initiative. However, in order to request the funding, the CHRO needs to have a clear proposal to share. The CHRO tells the HR employee to have the proposal ready in one week. If the proposal to raise the company’s change management capability is approved, the HR employee would become the global HR project leader.
If the proposal is approved, what should the HR project leader do first?
Answers
Identify training dates in each country and begin scheduling with key participants.
Ensure that the finance department has updated the HR budget to allow the project to be funded.
Investigate other risks that the company may be facing across the international operating units.
Help the HR leadership teams in each country to understand and support the project.
The chief human resource officer (CHRO) of a large international company realizes that the pace of change within the company is increasing due to several factors, including increased competition, technological advances, growth, and globalization. The main challenge is that the HR department lacks the skills to effectively manage change globally. It has always been difficult to build HR capabilities throughout the company due to its size and because each of its country units operate independently. These difficulties have resulted in the company being unable to establish a company-wide training curriculum. Each country’s HR leadership team has the autonomy to set their own training priorities, and there is resistance whenever a required training mandate comes from corporate headquarters. A member of the corporate HR team notices the need to improve the company’s ability to effectively manage change, and presents the issue to the CHRO. The CHRO asks an HR employee to draft a proposal for how to address the challenge. The executive team is meeting in two weeks and the CHRO wants to request the necessary funding for the initiative. However, in order to request the funding, the CHRO needs to have a clear proposal to share. The CHRO tells the HR employee to have the proposal ready in one week. If the proposal to raise the company’s change management capability is approved, the HR employee would become the global HR project leader.
Which should the HR project leader include in the proposal that will be shared with the executive team?
Answers
Data to show that the rate of organizational change within the company is increasing and how change management training will enable the HR department to support important business initiatives
Satisfaction scores that have been collected from employees across the company who have completed a wide variety of similar training courses in the past
Exit survey data showing how many HR employees left the company in the last three years who cited being overworked as the main reason for their decision to leave
Information about the cost of using external third parties, such as consultants, to create and deliver the change management training to HR employees who support each of the company’s operating units
Scenario
The chief human resource officer (CHRO) of a large international company realizes that the pace of change within the company is increasing due to several factors, including increased competition, technological advances, growth, and globalization. The main challenge is that the HR department lacks the skills to effectively manage change globally. It has always been difficult to build HR capabilities throughout the company due to its size and because each of its country units operate independently. These difficulties have resulted in the company being unable to establish a company-wide training curriculum. Each country’s HR leadership team has the autonomy to set their own training priorities, and there is resistance whenever a required training mandate comes from corporate headquarters. A member of the corporate HR team notices the need to improve the company’s ability to effectively manage change, and presents the issue to the CHRO. The CHRO asks an HR employee to draft a proposal for how to address the challenge. The executive team is meeting in two weeks and the CHRO wants to request the necessary funding for the initiative. However, in order to request the funding, the CHRO needs to have a clear proposal to share. The CHRO tells the HR employee to have the proposal ready in one week. If the proposal to raise the company’s change management capability is approved, the HR employee would become the global HR project leader.
Which is the best way for the HR project leader to demonstrate the value of the project in the proposal for the executive team?
Answers
Call attention to the number of projects that have failed to meet their objectives because of the lack of capability in change management.
Show evidence that competitor companies are investing in similar initiatives to improve change management capabilities.
Describe how the positive impact of the project on the company’s profits will outweigh the project’s costs.
Explain how many employees within the HR department agree with the recommendation to invest in the training program.
Refer to the following scenario to answer the next 2 questions.
A staff accountant has been with the company for four years and has the sole responsibility for her company’s corporate credit card program. In addition to having access to the website to track cards for employee users, she has been issued a card in her own name and is authorized to use it to purchase food for company meetings, minor facility needs, party supplies, and other miscellaneous items. The staff accountant’s job performance has been satisfactory and past performance appraisals have been complimentary of her effective management of the credit card program. Lately, the staff accountant has been frequently late and calling in sick more than usual. When she experiences a sudden illness, she must take off work for several weeks to recover. While she is out, a coworker takes over the credit card records and notices that there is an unpaid balance of almost $9,000 on the staff accountant’s credit card. Upon review of the account statements, it becomes apparent that the staff accountant has been using the card for personal reasons, including several charges that were made while she was out on medical leave. The company is weighing its options on how to proceed.
The VP of finance consults with HR after learning about the staff accountant’s credit card use. What should HR recommend as a first step?
Answers
Stall by offering the staff accountant additional paid time off to recover from the medical issue.
Conduct an internal investigation to determine if there are other fraudulent charges or other employees involved in the scheme.
Immediately block the staff accountant’s access to account management and suspend the credit card.
Immediately call the staff accountant at home to inquire about what happened.
Scenario
A staff accountant has been with the company for four years and has the sole responsibility for her company’s corporate credit card program. In addition to having access to the website to track cards for employee users, she has been issued a card in her own name and is authorized to use it to purchase food for company meetings, minor facility needs, party supplies, and other miscellaneous items. The staff accountant’s job performance has been satisfactory and past performance appraisals have been complimentary of her effective management of the credit card program. Lately, the staff accountant has been frequently late and calling in sick more than usual. When she experiences a sudden illness, she must take off work for several weeks to recover. While she is out, a coworker takes over the credit card records and notices that there is an unpaid balance of almost $9,000 on the staff accountant’s credit card. Upon review of the account statements, it becomes apparent that the staff accountant has been using the card for personal reasons, including several charges that were made while she was out on medical leave. The company is weighing its options on how to proceed.
The HR manager and VP of finance recognize that the fraud perpetrated by the staff accountant indicates some weakness to their internal controls. Which recommendation is most effective at reducing the risk of fraud and therefore should be instituted first?
Answers
Establish a checks and balances approach for credit card use that involves multiple employees.
Train managers to be aware of red flag behaviors.
Hire a good external auditor.
Run credit and background checks on new hires in departments where fraud is most likely to occur.
Refer to the following scenario for the next 3 questions.
The HR director of a small business receives a complaint from an employee working in the company’s smallest department. The employee tells the HR director that his supervisor treats him disrespectfully and recently humiliated him during a team meeting. The department only contains four people, so the HR director is concerned that any conflict will greatly disrupt the morale and productivity of the team. After bringing the matter to the attention of the CEO, the HR director is asked to investigate the complaint.
The HR director learns that the employee and supervisor were romantically involved in the past, which violated company policy regarding supervisor and subordinate relationships. However, they plead with the HR director not to bring their prior relationship to the attention of the CEO. What should the HR director do?
Answers
Tell the employee and his supervisor that HR must bring the matter to the attention of the CEO, but that HR will suggest that no formal disciplinary actions be taken.
Report the violation of policy to the CEO to demonstrate what can go wrong when supervisors get involved with their subordinates.
Explain to the supervisor and employee that, if relevant, all facts must be part of the investigation report.
Recommend to the CEO that the supervisor and employee be reassigned to different teams.
Scenario
The HR director of a small business receives a complaint from an employee working in the company’s smallest department. The employee tells the HR director that his supervisor treats him disrespectfully and recently humiliated him during a team meeting. The department only contains four people, so the HR director is concerned that any conflict will greatly disrupt the morale and productivity of the team. After bringing the matter to the attention of the CEO, the HR director is asked to investigate the complaint.
The stress of HR’s ongoing investigation into the complaint has resulted in a significant increase in the conflict between the employee and the supervisor, including open hostility from both parties. Which action should the HR director take to resolve the situation?
Answers
Determine if the supervisor can be moved to a different department and find a replacement supervisor for the small department.
Terminate the supervisor for poor conflict management in the course of an investigation into a complaint.
Prioritize the completion of the investigation in order to mitigate the stress between the supervisor and employee.
Discipline the supervisor for poor conflict management in the course of an investigation into a complaint.
Scenario
The HR director of a small business receives a complaint from an employee working in the company’s smallest department. The employee tells the HR director that his supervisor treats him disrespectfully and recently humiliated him during a team meeting. The department only contains four people, so the HR director is concerned that any conflict will greatly disrupt the morale and productivity of the team. After bringing the matter to the attention of the CEO, the HR director is asked to investigate the complaint.
What should the HR director do to prevent interpersonal issues like those between the employee and the supervisor from occurring in the future?
Answers
Begin a change initiative to formalize core values and behavior expectations for all employees.
Implement a training plan on employee communications.
Reinforce a strong culture of respectful communications through management actions in hiring selection and performance expectations.
Include advice for communicating effectively in company-wide monthly emails.
Refer to the following scenario for the next 3 questions.
In response to rising levels of turnover among the payroll staff and declining revenue, the HR manager of a wage and salary contract services company hosts a series of executive meetings to discuss various methods for increasing knowledge transfer and cooperation between groups of employees from diverse backgrounds. During an initial meeting, an executive team member suggests a mentoring program that offers high performing employees an opportunity to observe model behavior, and receive advice and general support from a senior manager. Following the meeting, there are discussions with all department leaders and managers to achieve support at the highest levels, and meetings with all staff members to ensure complete implementation of the program. High performing employees, identified based on supervisor recommendations and performance review scores, are contacted by the HR manager regarding the opportunity to apply for the mentoring program. Each chosen candidate receives a list of three potential mentors who can accept or reject an invitation to mentor the candidate. Once a mentor accepts, the mentee submits answers to a set of questions asked by the mentor that serves as the basis for an initial in-person or telephone meeting between the two. The relationship grows from the telephone meeting and the program ends after one year.
Which should the executive team cite as a likely outcome to support its decision to implement a mentoring program to address the issues faced by the company?
Answers
Encourages less experienced employees to suggest ideas for improving work processes.
Fosters synergy and collectivity among employees of all genders and cultures.
Uses reward incentives to motivate all managers to participate in newly implemented programs.
Builds a high performance culture that contributes to the company’s competitive advantage.
Scenario
In response to rising levels of turnover among the payroll staff and declining revenue, the HR manager of a wage and salary contract services company hosts a series of executive meetings to discuss various methods for increasing knowledge transfer and cooperation between groups of employees from diverse backgrounds. During an initial meeting, an executive team member suggests a mentoring program that offers high performing employees an opportunity to observe model behavior, and receive advice and general support from a senior manager. Following the meeting, there are discussions with all department leaders and managers to achieve support at the highest levels, and meetings with all staff members to ensure complete implementation of the program. High performing employees, identified based on supervisor recommendations and performance review scores, are contacted by the HR manager regarding the opportunity to apply for the mentoring program. Each chosen candidate receives a list of three potential mentors who can accept or reject an invitation to mentor the candidate. Once a mentor accepts, the mentee submits answers to a set of questions asked by the mentor that serves as the basis for an initial in-person or telephone meeting between the two. The relationship grows from the telephone meeting and the program ends after one year.
Which action should the HR manager take in order to use the mentoring program to improve cooperation between groups of employees from diverse backgrounds?
Answers
Host a commencement meeting for all employees involved in the mentoring program to outline expectations and answer questions.
Hold small meetings with individual pairs of mentors and mentees to ensure compatibility of the mentoring pairs.
Provide a webinar link on the company portal leading to information about the mentoring program.
Send an email to all employees highlighting the diversity of the participants involved in the mentoring program.
Scenario
In response to rising levels of turnover among the payroll staff and declining revenue, the HR manager of a wage and salary contract services company hosts a series of executive meetings to discuss various methods for increasing knowledge transfer and cooperation between groups of employees from diverse backgrounds. During an initial meeting, an executive team member suggests a mentoring program that offers high performing employees an opportunity to observe model behavior, and receive advice and general support from a senior manager. Following the meeting, there are discussions with all department leaders and managers to achieve support at the highest levels, and meetings with all staff members to ensure complete implementation of the program. High performing employees, identified based on supervisor recommendations and performance review scores, are contacted by the HR manager regarding the opportunity to apply for the mentoring program. Each chosen candidate receives a list of three potential mentors who can accept or reject an invitation to mentor the candidate. Once a mentor accepts, the mentee submits answers to a set of questions asked by the mentor that serves as the basis for an initial in-person or telephone meeting between the two. The relationship grows from the telephone meeting and the program ends after one year.
How should the HR manager best characterize the underlying purpose of the new mentoring program?
Answers
Employee benefit available to eligible, high performing employees
Development tool to improve perceptions of organizational support
HR tool to improve communications between employees and executives
HR initiative to lower turnover among payroll staff and improve revenue
Refer to the following scenario for the next 3 questions.
A manufacturer of roller bearings has been experiencing a decline in sales over the past few years. Historically, the company’s product was viewed as highly engineered. However, due to changes in production technology, roller bearings have now become a commodity product. Low cost producers from overseas have been making inroads into the company’s market. The company’s share price has declined over the past few years. Rumors have been circulating that another manufacturer of roller bearings is contemplating a takeover of the company, which would result in a significant reduction in the number of employees. Consequently, employees’ morale is low. The most valued employees are being targeted by headhunters, and many are leaving. Customers are concerned about the survival of the company and are starting to take their business elsewhere. The CEO has informed senior management of the intent to fight the takeover. The stated strategy is to sell all but the most essential assets and to drastically reduce the workforce in order to support the share price and to possibly prevent a takeover.
When implementing the reduction in workforce strategy, which should be the primary factor for HR to consider when making decisions concerning employee termination, assuming compliance with applicable labor laws?
Answers
Seniority of the employee
Education and experience
Job performance
Impact on customer relationships
Scenario
A manufacturer of roller bearings has been experiencing a decline in sales over the past few years. Historically, the company’s product was viewed as highly engineered. However, due to changes in production technology, roller bearings have now become a commodity product. Low cost producers from overseas have been making inroads into the company’s market. The company’s share price has declined over the past few years. Rumors have been circulating that another manufacturer of roller bearings is contemplating a takeover of the company, which would result in a significant reduction in the number of employees. Consequently, employees’ morale is low. The most valued employees are being targeted by headhunters, and many are leaving. Customers are concerned about the survival of the company and are starting to take their business elsewhere. The CEO has informed senior management of the intent to fight the takeover. The stated strategy is to sell all but the most essential assets and to drastically reduce the workforce in order to support the share price and to possibly prevent a takeover.
What could HR have done better to avoid this situation?
Answers
Ensured that employee compensation levels are competitive with overseas competitors.
Invested more resources in strategic planning and organizational development training.
Ensured plans for dealing with potential takeovers were ready.
Invested more resources in researching product differentiation.
Scenario
A manufacturer of roller bearings has been experiencing a decline in sales over the past few years. Historically, the company’s product was viewed as highly engineered. However, due to changes in production technology, roller bearings have now become a commodity product. Low cost producers from overseas have been making inroads into the company’s market. The company’s share price has declined over the past few years. Rumors have been circulating that another manufacturer of roller bearings is contemplating a takeover of the company, which would result in a significant reduction in the number of employees. Consequently, employees’ morale is low. The most valued employees are being targeted by headhunters, and many are leaving. Customers are concerned about the survival of the company and are starting to take their business elsewhere. The CEO has informed senior management of the intent to fight the takeover. The stated strategy is to sell all but the most essential assets and to drastically reduce the workforce in order to support the share price and to possibly prevent a takeover.
What approach should HR follow to retain the most valued employees?
Answers
Increase salaries across the board to become more competitive.
Offer stock option plans to the most valued employees.
Provide retention bonuses to the most valued employees.
Offer flexible working packages.
Refer to the following scenario for the next 2 questions.
The VP of a small HR consulting firm, interested in expanding internationally, appoints a senior HR consultant to write a proposal for a performance management system. The system is to be implemented at a large municipal agency in another country where the consulting firm has no previous experience. When discussing the municipal project with the senior HR consultant, the VP informs the consultant that the client’s first priority is a proposal that enhances its current performance management system through incremental performance increases that ultimately add to the agency’s effectiveness. Upon reviewing the proposal, the VP becomes concerned that the proposal contains several unsubstantiated claims, the most glaring of which is an assertion that the performance management system improved performance by over 80% in other agencies. The proposal does not cite any studies and does not provide any context or additional information to support the claim.
What main concern should the VP raise to the consultant regarding including statements in the proposal that are not substantiated with supporting documents and data?
Answers
If the client cannot verify the claims, then it will undermine the firm’s credibility.
If the client asks for supporting evidence the firm cannot produce, then the proposal will be rejected.
If the client does not achieve an 80% improvement in performance, then the firm could be sued.
If the client sets high expectations, then the firm must manage those expectations in geographic areas where the firm has little expertise.
Scenario
The VP of a small HR consulting firm, interested in expanding internationally, appoints a senior HR consultant to write a proposal for a performance management system. The system is to be implemented at a large municipal agency in another country where the consulting firm has no previous experience. When discussing the municipal project with the senior HR consultant, the VP informs the consultant that the client’s first priority is a proposal that enhances its current performance management system through incremental performance increases that ultimately add to the agency’s effectiveness. Upon reviewing the proposal, the VP becomes concerned that the proposal contains several unsubstantiated claims, the most glaring of which is an assertion that the performance management system improved performance by over 80% in other agencies. The proposal does not cite any studies and does not provide any context or additional information to support the claim.
Which is the VP’s best response to the consultant’s assertion that the exaggerated claims are expected and not taken literally given the local culture of this client?
Answers
Explain to the consultant the inappropriateness of the proposal language based upon stereotypes.
Agree that based on that information, future proposals within this cultural context could include more aggressive claims.
Wait until the proposal has been evaluated and, if it is unsuccessful, request feedback on the proper tone of the claims from the prospective client.
Explain the risk of making such claims based on cultural assumptions and agree to investigate how to balance the firm’s business ethics with the expectations for business proposals within this culture.
Refer to the following scenario for the next two items.
A consumer products company, known for its achievement-oriented employees and superior knowledge-sharing software, amends its succession plan to include its highest performing supervisor. The selection is widely accepted given the supervisor’s tenure and positive performance record. Thus, the HR director is surprised by a new employee’s complaint about the supervisor’s inappropriate and intimidating behavior. An investigation of the supervisor and new employee shows no policy violations; however, it does uncover the new employee’s history of poor attendance and low performance during the first month on the job. The HR director’s direct supervisor recommends the employee’s complaint be ignored because it is perceived as illegitimate and an attempt by the new employee to take the focus off the attendance and performance issues. An analysis of recent employee exit interviews shows multiple reports of employees receiving threats and demands and a tendency for employees not to bring up concerns due to fear of retribution from supervisors and doubts that concerns will be handled seriously by senior leaders. These results are particularly disturbing because many employees recently leaving the organization are ethnic group minorities with a history of not reporting organizational concerns. When the HR director shares these results, the CEO asks if this organizational issue is a result of ethnic group minority employees not being accustomed to the expectations of workplace interactions. Senior leaders question the findings of the HR director’s investigation based on the positive results of the annual climate survey showing high levels of satisfaction with internal processes for reporting concerns.
What course of action should the HR director take in response to the direct supervisor’s advice about the new employee’s complaint?
Answers
Remove the initial complaint based on the direct supervisor’s recommendation.
Continue to use standard processes for conducting investigations.
Focus on an investigation of the potential motives of the new employee.
Request information from the direct supervisor.
Scenario
A consumer products company, known for its achievement-oriented employees and superior knowledge-sharing software, amends its succession plan to include its highest performing supervisor. The selection is widely accepted given the supervisor’s tenure and positive performance record. Thus, the HR director is surprised by a new employee’s complaint about the supervisor’s inappropriate and intimidating behavior. An investigation of the supervisor and new employee shows no policy violations; however, it does uncover the new employee’s history of poor attendance and low performance during the first month on the job. The HR director’s direct supervisor recommends the employee’s complaint be ignored because it is perceived as illegitimate and an attempt by the new employee to take the focus off the attendance and performance issues. An analysis of recent employee exit interviews shows multiple reports of employees receiving threats and demands and a tendency for employees not to bring up concerns due to fear of retribution from supervisors and doubts that concerns will be handled seriously by senior leaders. These results are particularly disturbing because many employees recently leaving the organization are ethnic group minorities with a history of not reporting organizational concerns. When the HR director shares these results, the CEO asks if this organizational issue is a result of ethnic group minority employees not being accustomed to the expectations of workplace interactions. Senior leaders question the findings of the HR director’s investigation based on the positive results of the annual climate survey showing high levels of satisfaction with internal processes for reporting concerns.
Which comment is best for the HR director to make in response to the CEO’s question?
Answers
The impact on ethnic group minority employees is likely due to cultural differences and expectations.
A focus on the ethnic group minority employees is planned to address the issue.
This situation affects all employees, so the ethnic group minority employees do not need special considerations.
Minority ethnic group identity does not prevent understanding of expectations for proper workplace interactions.
Refer to the following scenario for the next 2 questions.
A large national retail chain conducts an annual employee engagement survey to assess the effectiveness of store leadership and work environments in each of its retail stores. The results are distributed to the corporate executive team. In response to low scores in multiple areas of leadership within one retail store, the corporate executive team requests that the regional HR manager perform an onsite review of the store’s management practices and procedures. The regional HR manager begins by conducting interviews with the store’s management team and employees. Multiple employees complain that the retail store’s management team consistently asks them to give false information in sales and safety reports and threatens to terminate employment for noncompliance. A full audit of sales reports and safety inspections confirms the employees’ claims. The regional HR manager reports the findings to the corporate executive team. Based upon the findings, the executive team decides to immediately remove the store’s management team. A temporary management team is appointed to manage the store until a permanent team can be hired.
Which is the most effective approach for the regional HR manager to take when interviewing the store employees to ensure all the needed information is gathered?
Answers
Express interest in their perspectives, acknowledge their emotions, and motivate them if they stop responding.
State the interviewer’s perspective on the situation and allow the employees to share opposing views.
Provide an overview of the review process, including the purpose, timeline, and follow-up actions.
Provide encouragement, offer assistance, and indicate transfers to another location may be an option.
Scenario
A large national retail chain conducts an annual employee engagement survey to assess the effectiveness of store leadership and work environments in each of its retail stores. The results are distributed to the corporate executive team. In response to low scores in multiple areas of leadership within one retail store, the corporate executive team requests that the regional HR manager perform an onsite review of the store’s management practices and procedures. The regional HR manager begins by conducting interviews with the store’s management team and employees. Multiple employees complain that the retail store’s management team consistently asks them to give false information in sales and safety reports and threatens to terminate employment for noncompliance. A full audit of sales reports and safety inspections confirms the employees’ claims. The regional HR manager reports the findings to the corporate executive team. Based upon the findings, the executive team decides to immediately remove the store’s management team. A temporary management team is appointed to manage the store until a permanent team can be hired.
When sharing the decision about the store management change, which approach is best for the regional HR manager to take to maintain employee engagement?
Answers
Share overview information and provide a mechanism to share future concerns.
Acknowledge employee participation and have a long-term plan to discuss remaining concerns.
Maintain composure, noting emotional responses and potential biases.
Commit to action and ensure agreement on the proposed management change.
Refer to the following scenario for the next 2 questions.
An organization’s communications department historically has an organizational structure that reflects the size and structure of the various business groups across the organization. However, the organization has grown and changed significantly over the years and the communications department has not kept up with these changes. As a result, the communications department is now understaffed in certain areas. The employee population is also changing and recent college graduates are entering the organization with different communication styles and preferences than those of many of the tenured employees. A new social media group consisting of recently hired college graduates with technical degrees expresses frustration with organizational bureaucracy and inefficiencies. Due to these changes and understaffing, the communications department is struggling to meet the needs and demands of the various business groups. The department’s quality of work is dropping and its reputation is beginning to decline. To make matters worse, several top performers are frustrated with the situation and are considering seeking employment elsewhere. The department head knows that the situation needs to be addressed quickly and reaches out to the department’s HR partner for help.
Which should the HR partner recommend regarding the department’s organizational structure?
Answers
Promote changing the structure and headcount to support the department’s strategy and business group’s expectations.
Recommend that the leaders of the business groups participate in planning the department changes.
Encourage a new organizational structure that maximizes the use of the different skill sets that currently exist in the department.
Coach team members on finding solutions to support the business groups that use the current organizational structure.
Scenario
An organization’s communications department historically has an organizational structure that reflects the size and structure of the various business groups across the organization. However, the organization has grown and changed significantly over the years and the communications department has not kept up with these changes. As a result, the communications department is now understaffed in certain areas. The employee population is also changing and recent college graduates are entering the organization with different communication styles and preferences than those of many of the tenured employees. A new social media group consisting of recently hired college graduates with technical degrees expresses frustration with organizational bureaucracy and inefficiencies. Due to these changes and understaffing, the communications department is struggling to meet the needs and demands of the various business groups. The department’s quality of work is dropping and its reputation is beginning to decline. To make matters worse, several top performers are frustrated with the situation and are considering seeking employment elsewhere. The department head knows that the situation needs to be addressed quickly and reaches out to the department’s HR partner for help.
Which information is the most critical for the communications department head to gather before deciding on the new department structure?
Answers
Career interests of the current members of the communications department
Projected size of the business groups within the organization
Projected annual turnover within the communications department
Strategic direction of the business groups within the organization
Refer to the following scenario to answer the next 2 questions.
Passing through the hospital waiting room, the recently hired VP of HR notices an employee sitting off to the side, playing on an electronic tablet. She recalls that the employee had been hired several weeks ago, after completing a job readiness training program at a local agency that works with individuals who exhibit varying degrees of difficulty in communicating, social interaction, problem solving, and adaptive behavior. The VP of HR introduces herself and asks if the employee is well. Typing out an answer on the tablet, the employee explains that his boss sends him out to the waiting room when there is not work for him and that this happens every day. The hospital is a member of the local agency’s advisory group and hires several graduates of its programs each year. The partnership is prominently displayed on the hospital’s diversity section of its website. The hospital’s code of conduct includes a statement on promoting the dignity and success of each employee as part of the hospital’s culture of inclusion. The VP of HR checks in with several of the other hires from the local agency and finds all but one dissatisfied. These hires feel they are under-utilized, and they report hurtful comments from coworkers and supervisors. One of these hires begins to cry, trying to explain some frustrations. In checking further, the VP of HR finds that of the 14 individuals hired from the local agency over the past three years, none have been promoted and all consistently received a “meets performance standards” rating. After speaking with other employees and managers, the VP of HR concludes that a culture of inclusion was an aspiration but not yet a reality.
Several supervisors report they cannot communicate effectively with the employees hired from the local agency. The supervisors cannot understand what the employees are saying, are confused by the lack of eye contact, and are not sure that the employees understand them. What is the first step to solving this issue?
Answers
Provide electronic tablets to each employee to facilitate better communication.
Make accommodations that will allow for better communication.
Train supervisors in communication skills for individuals with developmental challenges.
Reassign employees to more empathetic supervisors.
Scenario
Passing through the hospital waiting room, the recently hired VP of HR notices an employee sitting off to the side, playing on an electronic tablet. She recalls that the employee had been hired several weeks ago, after completing a job readiness training program at a local agency that works with individuals who exhibit varying degrees of difficulty in communicating, social interaction, problem solving, and adaptive behavior. The VP of HR introduces herself and asks if the employee is well. Typing out an answer on the tablet, the employee explains that his boss sends him out to the waiting room when there is not work for him and that this happens every day. The hospital is a member of the local agency’s advisory group and hires several graduates of its programs each year. The partnership is prominently displayed on the hospital’s diversity section of its website. The hospital’s code of conduct includes a statement on promoting the dignity and success of each employee as part of the hospital’s culture of inclusion. The VP of HR checks in with several of the other hires from the local agency and finds all but one dissatisfied. These hires feel they are under-utilized, and they report hurtful comments from coworkers and supervisors. One of these hires begins to cry, trying to explain some frustrations. In checking further, the VP of HR finds that of the 14 individuals hired from the local agency over the past three years, none have been promoted and all consistently received a “meets performance standards” rating. After speaking with other employees and managers, the VP of HR concludes that a culture of inclusion was an aspiration but not yet a reality.
Which method will provide the VP of HR with the most comprehensive data on the state of inclusiveness at the hospital before planning new initiatives?
Answers
Hiring goal audit
Engagement survey
Discrimination complaints review
Cultural audit
Which statement accurately reflects findings on team effectiveness?
Answers
Homogeneous teams are more likely to trust each other than are multicultural teams with high cultural intelligence.
Multicultural teams with low cultural intelligence underperform in comparison to homogeneous teams.
Multicultural teams with high cultural intelligence are less likely to come up with innovative solutions than are homogeneous teams.
Homogeneous teams with low cultural intelligence typically outperform multicultural teams.
Which best reflects the strategic purpose of developing a strike contingency plan when preparing for contract negotiations?
Answers
Mitigate risk to financial management throughout controversial negotiations.
Use as positive leverage in the course of the distributive bargaining process.
Ensure protection and continuity of business operations during an impasse.
Align stakeholders with HR processes following labor contract acceptance.
Which action best accomplishes a board of director’s objective of reducing the operating costs of its expatriate program?
Answers
Pay housing allowances to ensure comparable accommodations.
Link bonus deferrals to the achievement of subsidiary objectives.
Pay educational allowances to expatriates’ children.
Divide pay equally between the host-country and home-country currencies.
Which search strategy is an HR manager most likely to request from a professional recruitment firm contracted to source a candidate for a mid-level managerial position?
Answers
Retained
Delimited
Contingent
Engaged
An organization is located in a country that is experiencing weak currency valuation compared to the countries where its primary customers are located. Which statement is most likely true?
Answers
Demand for the organization’s products will increase.
Demand for the organization’s products will decline.
Employee compensation will decrease.
There will be no impact on the organization’s sales.
If the merger of two manufacturing organizations results in a new pay-for-performance philosophy, which should the HR director communicate to the CEO as a primary concern?
Answers
Designing a pay-for-performance system is challenging for HR
Measuring employee output is too subjective in pay-for-performance systems
Increasing annual salaries presents budgetary difficulties
Changing the incentive policy is difficult for employees to understand
Which is the most likely focus of change when an organizational development effort is planned by an organization’s leadership?
Answers
Culture
Communication
Employee participation
Job design
Which principle of international labor is a global organization following by eliminating child labor in its worldwide factories?
Answers
Core labor standards
International framework agreement
Decent work agenda
Forced labor convention
Which represents areas of focus in a bureaucratic organizational culture?
Answers
Internal focus and support of a methodical approach to doing business by reinforcing the values of tradition
Involvement and participation by the organization’s members on rapidly changing external factors
Sales growth and market share with a clear vision of the organization’s purpose and goals
External environment through flexibility and change to meet customer needs
An organization with a horizontal integration growth strategy is pursuing global acquisitions. For which training topic should HR develop programs to support this effort?
Answers
Communication skills
Creativity and innovation
Shared culture
Management development
A global organization selects a production manager from its headquarters in Europe for a long-term assignment at a new plant in India. What is the most important factor to consider when determining whether a new assignment will be successful?
Answers
Family-related issues
Hardship or remote location premium
Pension and other benefit issues
Package attractiveness
Which is the best example of noise during the communication process?
Answers
Attempting to understand the technical jargon contained in a colleague’s memo
Failing to carefully read an important message due to a high volume of emails
Communicating gaps in benefits knowledge to an associate
Using video conferencing instead of a conference call when meeting with a client
Which strategic leadership action should an HR department take to effectively contribute to the achievement of organizational goals?
Answers
Design and present an HR department reorganization plan to the executive team for approval.
Develop a training class that provides information to employees on the organization’s open enrollment process.
Understand unemployment rates and how the number of job applications is influenced by trends in social media.
Rewrite the discipline and discharge policy to better identify potential legal risks early in the process
Which of the following is the primary goal of HR analytics in organizations?
Answers
Track HR policies and procedures.
Measure the impact of HR on organizational outcomes.
Identify underperforming functions.
Improve human capital decisions.
Which of the following is the primary goal of HR analytics in organizations?
Answers
Track HR policies and procedures.
Measure the impact of HR on organizational outcomes.
Identify underperforming functions.
Improve human capital decisions.
As part of the strategic planning process, a manufacturing organization outlines plans to expand its product line over a five-year period. To support the organization’s strategic planning process, what type of plan should the training department use to present product knowledge training to customer service agents?
Answers
Strategic
Internal
Tactical
Actionable
Which is a common unintended consequence of implementing an employee self-service portal?
Answers
Increased HR operational costs
Decreased employee satisfaction
Decreased time spent on strategic issues
Increased complexity of IT systems
Which metric would be most useful for measuring the success of a change management program for an HR management system implementation?
Answers
Training completion
Engagement score
Business adoption
Budget achievement
An international company that grows and harvests tea from locations throughout Asia is reviewing its corporate strategy. As part of the strategy, the company provides incentives to farmers to encourage responsible harvesting of tea leaves, minimizing the impact of the harvest on local villages. These incentives are embedded in what area of the corporate strategy?
Answers
Profitability
Sustainability
Productivity
Usability
Employees in which organization lack rights to form or join a labor union?
Answers
An organization with U.S. Department of Defense contracts
An organization of less than 50 people
A minority-owned business
The Federal Reserve Bank
An organization’s customer service representatives are known for their outstanding product knowledge when answering questions. Which strategic planning element best describes how the organization creates value for its customers?
Answers
Synergy building
Competitive advantage
Value tasking
Corporate training
Which risk describes the primary concern with permitting employees to use personally owned devices for work purposes in place of company-provided devices?
Answers
Increased liability in the event that an employee causes an accident while using a cell phone in a company vehicle
Threats to intellectual company property in the event of loss or theft
Breaches of confidentiality due to accidental sharing of work documents or personal information
Over-reporting of work tasks completed by employees during non-work hours
The HR director notices a trend of companies partnering with a not-for-profit organization. Which type of risk could the company avoid by aligning with the charity?
Answers
Legal
Financial
Operational
Strategic
Which process most often leads employers to accelerate their implementation of formal HR practices?
Answers
Collective bargaining
Mediation
Unionization
Arbitration
Which best describes the commonality between time-to-fill and cost-per-hire measures?
Answers
Show impact of recruiting on company performance.
Validate that recruitment is well managed.
Incorporate the date the hiring requisition is received.
Reflect lagging indicators of staffing results.
Which suggestion should an HR manager routinely advise as the primary area of focus for all new senior leaders responsible for operations in high-context cultures?
Answers
Initiate short-term objectives.
Establish interpersonal relationships.
Invest in training and development.
De-emphasize gender in decision-making.
Which is an effective method for preventing salary compression?
Answers
Limit salary increases for employees at the top of salary ranges.
Develop annual budgets and policies that limit annual salary increases.
Develop large recruiting pools.
Encourage promotions from within the company.
Subsequent to providing leadership training and mentoring, which is an organization’s most appropriate option for supporting an employee’s managerial development?
Answers
Transfer
Apprenticeship
Advanced management program
Stretch assignment
Which HR strategy is most likely to increase the prospects for success in a large scale merger and acquisition?
Answers
Blending both organizations’ cultures
Creating fit between both organizations’ business units
Preventing the loss of high-performing employees
Considering the financial implications
An HR manager, recently hired by a publicly traded company, reads the company’s code of ethics and realizes it states that employees’ pay must remain confidential. Based on the Sarbanes-Oxley Act (SOX), what should the new HR manager recommend?
Answers
Do not change the code.
Change the code to have all employees’ pay made public.
Change the code to impose standards for disclosing executive pay.
Change the code to establish how pay during a merger or acquisition would be accomplished.
Which environmental factor is the most consistent throughout a global organization?
Answers
Technological
Political
Social
Economical
Which action supports the definition of demand forecasting in human capital planning?
Answers
Hiring additional workers ahead of projected growth to ensure that all positions are filled
Improving retention rates to ensure that the future demand for workers remains minimal
Hiring new graduates and training them in the types of positions that the company expects to have in ten years
Predicting the number and types of people that the company will need in the future
What factor would be considered an HR organizational strength in a strengths, weaknesses, opportunities and threats analysis?
Answers
Market position
Global expansion
Intellectual capital
Technological advances
How does the HR department use the compa-ratio to inform compensation within an organization?
Answers
To calculate what percentage of a raise should be given organization-wide
To determine the degree to which the actual pay is consistent with the organization’s pay policies
To assess the internal pay practices against external benchmarks
To evaluate fairness between employee grade levels
What is the first step in the workforce planning process?
Answers
Analyze the available labor supply.
Identify the strategic staffing goals.
Forecast the organization’s demand for labor.
Identify the business strategy.
Which is an example of an intangible reward provided as part of a total rewards compensation philosophy?
Answers
Paid time off
Workplace autonomy
Employee training
Equity award
To avoid potential retaliation claims, which documents should be kept in a confidential file rather than in an employee’s personnel file?
Answers
Disciplinary reports
Employee grievances
Compensation history
Employment contract
Which is likely to occur if an organization implements a strategy of linking compensation to its strategic goals?
Answers
The organization will lead its competitive market with regard to pay.
Managers will need to put more emphasis on metrics.
Managers’ past performance will be rewarded.
Turnover will increase due to increased workload.
Which statement regarding validity is correct?
Answers
All reliable questionnaires are valid.
All valid questionnaires are reliable.
Internal consistency measures are examples of an advanced form of validity.
Content validity is an example of empirical validity.
Which action is likely to be a key HR activity of an organization pursuing a corporate growth strategy?
Answers
Basing rewards on length of service to the organization
Recruiting primarily for entry-level positions
Basing compensation on performance incentives
Emphasizing promotion from within the organization
Refer to the following scenario for the next 3 questions.
An HR manager finalizes a report for an employee opinion survey for a midsize manufacturing company and presents the findings to the leadership of the organization. The company is in the growth phase of the organizational life cycle and is eager to hear from its employees. There were many valuable insights from the data, and the leadership team is very interested in understanding the results. In particular, the leaders want to understand the various levels of employee engagement across their organization. As part of the presentation, the HR manager shares a few example comments from one of the open-ended questions, which asked about employees’ perceptions of a recent merger that occurred in the company. The items shared by the HR manager include both positive and negative comments about the merger. One of the members of the leadership team asks if the HR manager could identify the department that provided one of the critical comments. The HR manager questions the intent in knowing this information and receives an adequate response: leadership wants to devote additional resources to alleviate the situation within that department. The HR manager is capable of identifying which department the comment came from but has never been asked for this type of information in the past. Further, the confidentiality statement issued to the employees is vague and only states that individual responses would not be shared. Upon reviewing the data, the HR manager notices that the department from which the comment originated only consists of four employees.
How should the HR manager respond to the leader’s request to identify the department from which the comment came?
Answers
Tell the leader that, to protect the anonymity of respondents in small departments, their answers are grouped together with other small teams.
Consult with the CEO to explain that, although the HR team wants to provide information so positive changes can be made, it also must maintain the confidentiality of the survey respondents, and then ask for guidance on how to proceed.
Decline to provide the information and explain that identifying the department may impact the anonymity of the respondent, which could adversely impact employee morale as well as the participation rate and value of future surveys.
Inform the leader that it is not possible and remove any comments from employees in departments with five or fewer employees.
Scenario
An HR manager finalizes a report for an employee opinion survey for a midsize manufacturing company and presents the findings to the leadership of the organization. The company is in the growth phase of the organizational life cycle and is eager to hear from its employees. There were many valuable insights from the data, and the leadership team is very interested in understanding the results. In particular, the leaders want to understand the various levels of employee engagement across their organization. As part of the presentation, the HR manager shares a few example comments from one of the open-ended questions, which asked about employees’ perceptions of a recent merger that occurred in the company. The items shared by the HR manager include both positive and negative comments about the merger. One of the members of the leadership team asks if the HR manager could identify the department that provided one of the critical comments. The HR manager questions the intent in knowing this information and receives an adequate response: leadership wants to devote additional resources to alleviate the situation within that department. The HR manager is capable of identifying which department the comment came from but has never been asked for this type of information in the past. Further, the confidentiality statement issued to the employees is vague and only states that individual responses would not be shared. Upon reviewing the data, the HR manager notices that the department from which the comment originated only consists of four employees.
One of the leaders questions the purpose of administering an employee opinion survey. What response should the HR manager provide?
Answers
Research has shown that providing employees the opportunity to share their opinions can increase organizational performance. The survey may also help identify areas for improvement and give the HR team data to guide decisions.
Research has indicated a direct link between employee attitudes and their performance on the job, their likelihood to turnover, and even customer satisfaction. Therefore, gaining insight on employees’ opinions can improve processes to increase organizational performance.
Employee opinion surveys are a great way to identify certain areas of the company that are underperforming and develop strategies to implement an effective reduction in the workforce.
The results from the survey can identify areas where the company is doing well to continue to focus on the positive aspects brought to light by the employees.
Scenario
An HR manager finalizes a report for an employee opinion survey for a midsize manufacturing company and presents the findings to the leadership of the organization. The company is in the growth phase of the organizational life cycle and is eager to hear from its employees. There were many valuable insights from the data, and the leadership team is very interested in understanding the results. In particular, the leaders want to understand the various levels of employee engagement across their organization. As part of the presentation, the HR manager shares a few example comments from one of the open-ended questions, which asked about employees’ perceptions of a recent merger that occurred in the company. The items shared by the HR manager include both positive and negative comments about the merger. One of the members of the leadership team asks if the HR manager could identify the department that provided one of the critical comments. The HR manager questions the intent in knowing this information and receives an adequate response: leadership wants to devote additional resources to alleviate the situation within that department. The HR manager is capable of identifying which department the comment came from but has never been asked for this type of information in the past. Further, the confidentiality statement issued to the employees is vague and only states that individual responses would not be shared. Upon reviewing the data, the HR manager notices that the department from which the comment originated only consists of four employees.
While presenting the results of the open-ended comments, one of the members of the leadership team asks for historical trend data on an area that the HR manager knows has been steadily declining despite the company’s best efforts. What would be the HR manager’s best response?
Answers
Tell the leaders the HR team will look into the question and get back to them after the session.
Tell the leaders it is an area for improvement and that different methods continue to be attempted to turn around the situation, and then quickly move to the next question.
Tell the leaders it is a challenging area for the company, then ask them to provide some insight and suggestions as to why.
Provide trend data-national, industry, and local-for that area and compare the company’s performance to the trends so the company can be put in the best possible light.
Refer to the following scenario for the next 3 questions.
Under the direction of its president, a firm’s director of communication and marketing embarks on a major change initiative to the firm’s brand. The communication and marketing implementation focuses solely on the external community with little emphasis on divulging the purpose and details of the new brand to employees. The VP of HR is an advocate of explaining the new brand to employees because securing employees’ support builds the foundation for both internal and external brand importance and sustained impact. The VP of HR identifies an accomplished consulting group to assist in the endeavor and spends many hours examining the consulting group’s experience and services. Close alignment between the firm and consulting group ensures that the new brand is properly introduced and the workforce is engaged in its implementation. Upon meeting with the consulting group, although impressed with the consultants and the proposal, the president, unlike the VP of HR, does not understand the rationale behind the change initiative and the impact of engaging employees in the change initiative. The consulting group is not hired by the president and as a result, employees do not receive direct communication and marketing.
How should the VP of HR convince the president that hiring the consulting group ensures the proper implementation of the firm’s brand marketing strategy?
Answers
Gain the support of the director of communication and marketing and jointly present the details of the consulting group’s services to the president.
Present results from an employee survey supporting the need for further employee communication about the new brand.
Schedule another meeting with the president to provide detailed success stories from the consulting group.
Identify competitors with experience working with the consulting group and share outcomes associated with their services with the president.
Scenario
Under the direction of its president, a firm’s director of communication and marketing embarks on a major change initiative to the firm’s brand. The communication and marketing implementation focuses solely on the external community with little emphasis on divulging the purpose and details of the new brand to employees. The VP of HR is an advocate of explaining the new brand to employees because securing employees’ support builds the foundation for both internal and external brand importance and sustained impact. The VP of HR identifies an accomplished consulting group to assist in the endeavor and spends many hours examining the consulting group’s experience and services. Close alignment between the firm and consulting group ensures that the new brand is properly introduced and the workforce is engaged in its implementation. Upon meeting with the consulting group, although impressed with the consultants and the proposal, the president, unlike the VP of HR, does not understand the rationale behind the change initiative and the impact of engaging employees in the change initiative. The consulting group is not hired by the president and as a result, employees do not receive direct communication and marketing.
What information should the VP of HR and the director of communication and marketing share to convince the president of the importance of effectively communicating the new brand’s purpose to employees?
Answers
A business case for how employees can contribute to effective brand communication
Quotes from employees that show that they are interested in participating
Case studies pertaining to change initiatives
Research and articles showing the effectiveness of engaging employees in brand implementation
Scenario
Under the direction of its president, a firm’s director of communication and marketing embarks on a major change initiative to the firm’s brand. The communication and marketing implementation focuses solely on the external community with little emphasis on divulging the purpose and details of the new brand to employees. The VP of HR is an advocate of explaining the new brand to employees because securing employees’ support builds the foundation for both internal and external brand importance and sustained impact. The VP of HR identifies an accomplished consulting group to assist in the endeavor and spends many hours examining the consulting group’s experience and services. Close alignment between the firm and consulting group ensures that the new brand is properly introduced and the workforce is engaged in its implementation. Upon meeting with the consulting group, although impressed with the consultants and the proposal, the president, unlike the VP of HR, does not understand the rationale behind the change initiative and the impact of engaging employees in the change initiative. The consulting group is not hired by the president and as a result, employees do not receive direct communication and marketing.
What is the first step needed by the VP of HR to support the president’s communication and marketing strategy for the new brand?
Answers
Gain agreement from the president on how best to communicate the new brand strategy to employees.
Communicate details to managers and HR staff after the communication and marketing strategy for the new brand is implemented externally.
Involve HR staff in deciding how to inform employees about the new brand in a way that also engages and inspires employees.
Work with IT to update the HR website with the new brand and an explanation of its meaning and purpose.
Refer to the following scenario for the next 2 questions.
A privately-held, rapidly-growing software development firm in Wisconsin is extremely successful. As a result, the original founder has recently sold the firm at a substantial profit. The new owner, a publicly traded corporation, intends to relocate the firm to consolidate it with its existing operations in Florida. The HR manager intends to relocate with the firm and is concerned about the impact that the geographic and corporate cultural differences will have on the other staff members. The HR manager knows that some knowledge loss and employee attrition is inevitable but wants to do all that can be done to mitigate the impact. The HR manager is also concerned that if news about the relocation gets out before the firm announces it, employee reactions and customer perceptions may be adversely affected and more difficult to manage. The firm’s move is scheduled to be complete within the next two years.
The HR manager is trying to minimize turnover and retain talent in the face of the upcoming relocation. Which action has the best likelihood of increasing employees’ willingness to relocate and look at this change positively?
Answers
Issue an employee opinion survey to identify employee concerns.
Request that senior leaders hold focus groups and employee lunches to share information.
Schedule a staff meeting with all employees that is led by the president.
Start an employee blog to keep staff informed about the move.
Scenario
A privately-held, rapidly-growing software development firm in Wisconsin is extremely successful. As a result, the original founder has recently sold the firm at a substantial profit. The new owner, a publicly traded corporation, intends to relocate the firm to consolidate it with its existing operations in Florida. The HR manager intends to relocate with the firm and is concerned about the impact that the geographic and corporate cultural differences will have on the other staff members. The HR manager knows that some knowledge loss and employee attrition is inevitable but wants to do all that can be done to mitigate the impact. The HR manager is also concerned that if news about the relocation gets out before the firm announces it, employee reactions and customer perceptions may be adversely affected and more difficult to manage. The firm’s move is scheduled to be complete within the next two years.
What should HR do to help mitigate this risk?
Answers
Require everyone that is informed of the move to sign a nondisclosure agreement.
Restrict access to files containing information about the move.
Share knowledge of the move with only those individuals that need to know.
Send the firm’s nondisclosure agreement to an employment attorney for review.
Refer to the following scenario for the next 3 questions.
A month ago, leadership at a large manufacturing company decided to switch to a generic paid time off (PTO) leave benefit plan from the previous plan in which vacation and sick leave were counted separately. The company employs many long-term employees with thousands of accrued sick leave and vacation hours. The transition to the PTO system will involve limiting accruals to a certain set amount and the subsequent loss of large amounts of saved vacation and sick leave that many employees will not realistically be able to use prior to the implementation of the new plan. The HR director, who is responsible for the smooth transition to the new leave plan, is anticipating that many employees will be upset and resist the new leave plan.
What key piece of information should the HR director emphasize to gain support from employees for the new leave plan?
Answers
How the new plan benefits employees compared to the previous plan.
The fact that the majority of other manufacturing companies have also switched to a similar new plan.
The fact that the new plan will increase productivity in the company.
How the previous plan was outdated and the company needs to adapt to best practices.
Scenario
A month ago, leadership at a large manufacturing company decided to switch to a generic paid time off (PTO) leave benefit plan from the previous plan in which vacation and sick leave were counted separately. The company employs many long-term employees with thousands of accrued sick leave and vacation hours. The transition to the PTO system will involve limiting accruals to a certain set amount and the subsequent loss of large amounts of saved vacation and sick leave that many employees will not realistically be able to use prior to the implementation of the new plan. The HR director, who is responsible for the smooth transition to the new leave plan, is anticipating that many employees will be upset and resist the new leave plan.
The transition to the new leave plan is met with a great deal of concern and resistance from employees. What approach should the HR director take in the future when implementing new policies?
Answers
Form an advisory panel comprised of employees from all levels and areas of the company to review and revise the plan prior to implementation.
Introduce a preliminary version of a plan to the company, and survey all employees on how to make improvements.
Treat the plan implementation as a process in which revisions and changes will inevitably be made as needed after its introduction.
Gain support for the new plan from all key company stakeholders prior to implementation.
Scenario
A month ago, leadership at a large manufacturing company decided to switch to a generic paid time off (PTO) leave benefit plan from the previous plan in which vacation and sick leave were counted separately. The company employs many long-term employees with thousands of accrued sick leave and vacation hours. The transition to the PTO system will involve limiting accruals to a certain set amount and the subsequent loss of large amounts of saved vacation and sick leave that many employees will not realistically be able to use prior to the implementation of the new plan. The HR director, who is responsible for the smooth transition to the new leave plan, is anticipating that many employees will be upset and resist the new leave plan.
After the new leave plan is introduced to the company, the HR director is flooded with emails from employees that ask the same types of questions. What should the HR manager do to answer all questions in an efficient manner?
Answers
Develop a frequently asked questions document and circulate it to all employees.
Ask employees to post questions on a dedicated forum on the company’s internal website, and respond to all questions on the forum.
Create a webinar for employees to access at any time when questions arise.
Create a call center made up of temporary HR staff to respond to questions.
Refer to the following scenario for the next 2 questions.
A growing retailer with several operations across the region plans to open five new stores within the next 18 months. As a condition of receiving funding for expansion, financial investors require several changes including the hiring of an HR director with retail industry experience. Because the company has not hired an HR director before, the president hires the HR director based on guidance from an executive recruiter. During an initial meeting with the new HR director, the president explains that store managers are most effective at HR management because they understand the needs of their stores. As a result of this comment, the HR director perceives that the president is skeptical about the HR director’s ability to contribute to organizational outcomes. During the first week, the HR director meets with store managers at each retail site to understand their current business concerns and reviews currently implemented policies and practices. Although retail managers are responsible for hiring and training store employees and resolving employee relations matters, the HR director discovers widespread differences in HR practices. Some managers have extensive HR knowledge while others show little interest in employee practices and are primarily concerned with retail issues. Merchandising, pricing, and advertising are consistent across stores. Furthermore, all managers are focused on controlling costs and improving customer service ratings to boost company profits.
Why would financial investors insist on hiring a professional retail HR director as a condition of funding?
Answers
Avoidance of workforce related risks
Reduction of workforce related costs
Encouragement of organizational innovation
Implementation of employee incentives
Scenario
A growing retailer with several operations across the region plans to open five new stores within the next 18 months. As a condition of receiving funding for expansion, financial investors require several changes including the hiring of an HR director with retail industry experience. Because the company has not hired an HR director before, the president hires the HR director based on guidance from an executive recruiter. During an initial meeting with the new HR director, the president explains that store managers are most effective at HR management because they understand the needs of their stores. As a result of this comment, the HR director perceives that the president is skeptical about the HR director’s ability to contribute to organizational outcomes. During the first week, the HR director meets with store managers at each retail site to understand their current business concerns and reviews currently implemented policies and practices. Although retail managers are responsible for hiring and training store employees and resolving employee relations matters, the HR director discovers widespread differences in HR practices. Some managers have extensive HR knowledge while others show little interest in employee practices and are primarily concerned with retail issues. Merchandising, pricing, and advertising are consistent across stores. Furthermore, all managers are focused on controlling costs and improving customer service ratings to boost company profits.
How can the HR director demonstrate to the president that the current HR approach is ineffective and in need of change?
Answers
Reveal managers’ lack of knowledge about HR practices.
Disclose how changes in HR practices influence business outcomes.
Share industry standards for company level recruiting and hiring.
Show variations in employee performance between stores.
Refer to the following scenario for the next 2 questions.
A national restaurant terminates the employment of a regional director for not following national standards, declining sales, and shrinking guest counts. The operations manager and the HR manager decide to promote a shift manager, who has one year of service and is currently enrolled in restaurant training, into the position. Six months following the promotion, the region’s most recent performance scorecard indicates that drive-through service times fail to meet standards, customer feedback scores are low, and employee turnover rates are at their highest levels. Employee morale is low and some employees find it difficult to adjust to the new regional director’s leadership style that requires employees to strictly adhere to restaurant operating policies and procedures. During a meeting with regional employees to discuss their concerns, the HR manager discovers that the former director was well liked and respected, despite the region’s performance. Unaware of the ongoing conversations between the operations manager and the HR manager, the new director asks the operations manager to help with the transition. The HR manager is considering a formal career advancement training program to address some of the employees’ concerns.
Which action should the HR manager take to most efficiently address the increasing turnover rates?
Answers
Create a recognition program to reward the restaurant’s top performers.
Establish a workforce committee that solicits and addresses employee concerns.
Devise an employee referral program to attract new talent.
Determine the level of employee engagement through a satisfaction survey.
Scenario
A national restaurant terminates the employment of a regional director for not following national standards, declining sales, and shrinking guest counts. The operations manager and the HR manager decide to promote a shift manager, who has one year of service and is currently enrolled in restaurant training, into the position. Six months following the promotion, the region’s most recent performance scorecard indicates that drive-through service times fail to meet standards, customer feedback scores are low, and employee turnover rates are at their highest levels. Employee morale is low and some employees find it difficult to adjust to the new regional director’s leadership style that requires employees to strictly adhere to restaurant operating policies and procedures. During a meeting with regional employees to discuss their concerns, the HR manager discovers that the former director was well liked and respected, despite the region’s performance. Unaware of the ongoing conversations between the operations manager and the HR manager, the new director asks the operations manager to help with the transition. The HR manager is considering a formal career advancement training program to address some of the employees’ concerns.
Which direct outcome should the HR manager cite in a proposal to executives to gain their support to develop a formal career advancement training program?
Answers
Increased levels of commitment resulting from identification with organization mission and objectives.
Higher employee retention due to demonstration of organizational support for employees.
Reduction of operating errors among employees demonstrating appropriate KSAs.
Greater levels of trust towards the new regional director resulting from insight into leadership styles.
Refer to the following scenario for the next 3 questions.
Domestic personnel working at the headquarters location of a global technology company are more highly compensated than personnel working internationally in its satellite offices. During the last five years, the company has implemented a cost-saving measure, reducing the number of personnel working domestically in HR, marketing, finance, and operations, and increasing the number of personnel working in the same divisions in international satellite offices. The domestic to international human capital shift was initially large; however, perceived ineffectiveness, international inefficiencies, and international resource shortages have shifted many positions back to headquarters. During an advisory team meeting with the VP of HR, CFO, and chief operating officer, the CEO emphasizes the need for continuous improvement in financial performance and sustainability of the recruiting and training departments for future company success. During the meeting, the CEO requests appropriate action from the CFO, including the possible implementation of spending controls and workforce reduction strategies. Following the meeting, the CFO emails the heads of the training and recruiting departments and the VP of HR, directing an aggressive increase in the two departments’ international workforce and a sizable decrease in their domestic workforce through attrition and staff reductions. The head of training and the head of recruiting contact the VP of HR to express their concerns and question the impact on other functions. Both advocate immediate employee communication to allow training and recruiting personnel adequate time to seek other internal or external job opportunities.
Which should the VP of HR anticipate as the CFO’s greatest concern if the head of recruiting and head of training immediately communicate the pending domestic workforce decreases to their teams?
Answers
The company may experience unwanted attrition of key personnel from the various functional teams.
The announcement will undermine efforts to improve international efficiency and effectiveness.
Remaining employees will leverage the situation to request increases in pay.
The CEO will contact the CFO requesting a strategic plan detailing recruiting and training sustainability actions.
Scenario.
Domestic personnel working at the headquarters location of a global technology company are more highly compensated than personnel working internationally in its satellite offices. During the last five years, the company has implemented a cost-saving measure, reducing the number of personnel working domestically in HR, marketing, finance, and operations, and increasing the number of personnel working in the same divisions in international satellite offices. The domestic to international human capital shift was initially large; however, perceived ineffectiveness, international inefficiencies, and international resource shortages have shifted many positions back to headquarters. During an advisory team meeting with the VP of HR, CFO, and chief operating officer, the CEO emphasizes the need for continuous improvement in financial performance and sustainability of the recruiting and training departments for future company success. During the meeting, the CEO requests appropriate action from the CFO, including the possible implementation of spending controls and workforce reduction strategies. Following the meeting, the CFO emails the heads of the training and recruiting departments and the VP of HR, directing an aggressive increase in the two departments’ international workforce and a sizable decrease in their domestic workforce through attrition and staff reductions. The head of training and the head of recruiting contact the VP of HR to express their concerns and question the impact on other functions. Both advocate immediate employee communication to allow training and recruiting personnel adequate time to seek other internal or external job opportunities.
Which action is most effective for the VP of HR to take in order to help improve the company’s financial performance?
Answers
Partner with the CFO to identify HR savings targets and other financial strategies to improve business outcomes.
Calculate the long-term financial impact of the current workforce reduction on future human capital shifts.
Share the HR best practices and innovative cost strategies used by competitors to improve performance.
Deduct operating expenses and calculate the influence of all HR programs on the company’s future revenue.
Scenario.
Domestic personnel working at the headquarters location of a global technology company are more highly compensated than personnel working internationally in its satellite offices. During the last five years, the company has implemented a cost-saving measure, reducing the number of personnel working domestically in HR, marketing, finance, and operations, and increasing the number of personnel working in the same divisions in international satellite offices. The domestic to international human capital shift was initially large; however, perceived ineffectiveness, international inefficiencies, and international resource shortages have shifted many positions back to headquarters. During an advisory team meeting with the VP of HR, CFO, and chief operating officer, the CEO emphasizes the need for continuous improvement in financial performance and sustainability of the recruiting and training departments for future company success. During the meeting, the CEO requests appropriate action from the CFO, including the possible implementation of spending controls and workforce reduction strategies. Following the meeting, the CFO emails the heads of the training and recruiting departments and the VP of HR, directing an aggressive increase in the two departments’ international workforce and a sizable decrease in their domestic workforce through attrition and staff reductions. The head of training and the head of recruiting contact the VP of HR to express their concerns and question the impact on other functions. Both advocate immediate employee communication to allow training and recruiting personnel adequate time to seek other internal or external job opportunities.
Why should the VP of HR understand the background and context regarding the international workforce shifts from the prior years?
Answers
Ensure that the choice of the workforce shift within the training and recruiting function is fair.
Comprehend how the achievement of prior workforce targets and financial goals impact current outcomes.
Prepare for discussions of current targets with colleagues and leverage tactics from prior years’ actions.
Evaluate contributing market factors and formulate an actionable implementation plan.
Refer to the following scenario for the next 3 questions.
An HR professional receives two anonymous complaints within the same week indicating that a manager of an eight-person unit is involved in a romantic relationship with a subordinate employee. The complaint alleges that the manager is currently married, and the relationship is causing discomfort for other employees. Organizational policy forbids romantic relationships for employees in a direct reporting relationship. The complaint also states that the employee has been unfairly favored for incentive compensation by the manager. Organizational policy mandates that an investigation be conducted.
What should the HR professional do to investigate the complaints in a manner that protects the professional reputations of the parties involved?
Answers
Schedule separate meetings with the manager and the subordinate employee to discuss the complaints.
Review copies of the most recent incentive compensation results and supporting data for the entire unit.
Ask the manager’s immediate supervisor about the manager’s performance over that past 12 months.
Schedule separate meetings with the manager, the subordinate employee, and other employees on the team to discuss the complaints.
Scenario
An HR professional receives two anonymous complaints within the same week indicating that a manager of an eight-person unit is involved in a romantic relationship with a subordinate employee. The complaint alleges that the manager is currently married, and the relationship is causing discomfort for other employees. Organizational policy forbids romantic relationships for employees in a direct reporting relationship. The complaint also states that the employee has been unfairly favored for incentive compensation by the manager. Organizational policy mandates that an investigation be conducted.
The manager denies showing favoritism to the subordinate employee. What should the HR professional do to resolve the conflicting information provided in the anonymous complaints?
Answers
Ask the manager to provide documentation that the incentive compensation was implemented fairly.
Administer a confidential survey of the manager’s direct reports to obtain feedback about the manager’s fairness.
Review the incentive compensation calculations and supporting data for all direct reports.
Interview the subordinate employee to confirm the allegations.
Scenario
An HR professional receives two anonymous complaints within the same week indicating that a manager of an eight-person unit is involved in a romantic relationship with a subordinate employee. The complaint alleges that the manager is currently married, and the relationship is causing discomfort for other employees. Organizational policy forbids romantic relationships for employees in a direct reporting relationship. The complaint also states that the employee has been unfairly favored for incentive compensation by the manager. Organizational policy mandates that an investigation be conducted.
One of the complaints also alleges that a senior leader witnessed the manager and employee engaging in inappropriate intimate behavior on a business trip. What should the HR professional do to ensure organizational policies are supported by senior management?
Answers
Email the organization’s senior leaders and request that the witness file a report.
Schedule a meeting with the organization’s CEO to express the concerns about the senior leader’s behavior.
Ask the organization’s CEO to send an organization-wide email reinforcing the policy on romantic relationships.
Meet with the senior leaders of the organization to review the organization’s policy on romantic relationships between employees.
Refer to the following scenario for the next 2 questions.
A large professional services organization replaces its CEO with a new CEO known for a strong commitment to personnel expense reduction. Typically, at the end of the year, managers are promoted based on conversations with the CEO and division VPs that took place during the year. This year, however, managers’ expectations regarding promotions are based on conversations with the former CEO and division VPs. Although the new CEO believes in promoting managers to the next level, the new CEO wants to first become familiar with managers and observe the strengths and weakness of their work. Observing managers while in the midst of performing work is also consistent with the new CEO’s dedication to reducing personnel expenses. Therefore, the new CEO asks the VP of HR the implications of delaying most promotions until the next annual performance cycle to develop a better understanding of what each manager offers the organization. Upset by rumors of this potential action, managers want a detailed explanation for why the CEO is considering this alternative. The VP of HR collects data related to delayed promotions and encourages the CEO to meet individually with those managers expecting promotions and their division VPs. The VP of HR believes that by discussing the CEO’s decision-making criteria, the new CEO will have an increased level of familiarity with the contributions of those managers.
How can the VP of HR best prepare the CEO for meetings with those managers affected by delayed promotions?
Answers
Perform a financial projection of the cost savings resulting from promotion delays and propositions for how to best utilize those funds.
Work with the CEO to develop a promotion processing metric for each manager.
Prepare a file containing the performance evaluations and major contributions of each affected manager to the organization.
Communicate the benefits of giving managers decision-making authority and significance of manager’s job tasks to organizational outcomes.
Scenario
A large professional services organization replaces its CEO with a new CEO known for a strong commitment to personnel expense reduction. Typically, at the end of the year, managers are promoted based on conversations with the CEO and division VPs that took place during the year. This year, however, managers’ expectations regarding promotions are based on conversations with the former CEO and division VPs. Although the new CEO believes in promoting managers to the next level, the new CEO wants to first become familiar with managers and observe the strengths and weakness of their work. Observing managers while in the midst of performing work is also consistent with the new CEO’s dedication to reducing personnel expenses. Therefore, the new CEO asks the VP of HR the implications of delaying most promotions until the next annual performance cycle to develop a better understanding of what each manager offers the organization. Upset by rumors of this potential action, managers want a detailed explanation for why the CEO is considering this alternative. The VP of HR collects data related to delayed promotions and encourages the CEO to meet individually with those managers expecting promotions and their division VPs. The VP of HR believes that by discussing the CEO’s decision-making criteria, the new CEO will have an increased level of familiarity with the contributions of those managers.
What is the best action for the VP of HR to take to ensure managers’ anger regarding the possibility of delayed promotions does not escalate when meeting with the CEO?
Answers
Identify managers most likely to become angry and meet with them in advance to develop a plan for managing their reactions.
Prepare the CEO to handle difficult complaints by preparing a response with an objective reason for each decision.
Identify managers most likely to become angry and schedule their meetings last to give the CEO time to become familiar with frequently voiced managerial concerns.
Help the CEO develop avoidance tactics for potential negative reactions and prepare a strategy for ending the meeting with a positive tone.
Refer to the following scenario for the next 2 questions.
Most of the senior leaders at a nonprofit organization recognize they are facing numerous internal challenges. However, several leaders do not believe the challenges are significant enough to spend their time or effort on because there are major external issues they deem more critical. The specific internal challenges include managers who, although technically proficient, lack the soft skills needed to effectively lead and develop employees. Additionally, the current performance management system does not have the framework required to allow the managers to make meaningful distinctions among employees when evaluating performance. Consequently, performance ratings have been highly inflated. These factors suggest implementing a pay-for-performance system may be appropriate. The HR director leads an initiative to create a new performance management system that will bring the entire workforce of approximately 800 employees under one system. The HR director also develops accompanying customized training for business partners of HR, employees, and managers. This new system represents a significant culture shift in the organization and requires careful thought and planning in order for the roll out to be successful.
Given the internal challenges the nonprofit organization is facing, what is the most important organizational benefit the HR director should develop to ensure a consistent performance management system?
Answers
Greater consistency in performance evaluations
Increased engagement and energy around performance management
Increased effectiveness of supervisors in managing employee performance
Increased completion rate of performance management evaluation forms
Scenario
Most of the senior leaders at a nonprofit organization recognize they are facing numerous internal challenges. However, several leaders do not believe the challenges are significant enough to spend their time or effort on because there are major external issues they deem more critical. The specific internal challenges include managers who, although technically proficient, lack the soft skills needed to effectively lead and develop employees. Additionally, the current performance management system does not have the framework required to allow the managers to make meaningful distinctions among employees when evaluating performance. Consequently, performance ratings have been highly inflated. These factors suggest implementing a pay-for-performance system may be appropriate. The HR director leads an initiative to create a new performance management system that will bring the entire workforce of approximately 800 employees under one system. The HR director also develops accompanying customized training for business partners of HR, employees, and managers. This new system represents a significant culture shift in the organization and requires careful thought and planning in order for the roll out to be successful.
What is the most effective strategy the HR director should take to ensure senior leadership support for the new performance management system?
Answers
Meet with the president of the organization to explain the new performance management system, the benefits to the organization, and the role he and his senior leadership team will need to play to make this system successful and, then, have him communicate the message to the rest of his leadership team.
Identify the senior leadership team members who are known champions of adopting the new system, explain the benefits of the new system to the organization, and rely on them to disseminate the information to their colleagues.
Have an initial one-on-one conversation with each senior leader explaining the new performance management system, the benefits it provides, and the importance of leadership support and, then, answer any questions from the leaders.
Conduct a formal presentation with senior leadership about the implementation of the new performance management system.
Refer to the following scenario for the next 2 questions.
An industrial equipment manufacturing company currently has operations in North America, South America, Asia, and Australia. The company is a premium brand known for its innovative and energy saving approaches to common industrial applications. The company is structured as an international entity but is moving toward a more transnational model. Company leaders are assessing the current methods for talent development, assignment, and performance management in order to anticipate necessary changes that support a transnational model. The company’s senior HR leaders are meeting on this topic.
What will most likely be achieved through adopting a transnational model?
Answers
A high level of local responsiveness
Convergence of management practices
Tight central control of operations
Simplified coordination of business operations
Scenario
An industrial equipment manufacturing company currently has operations in North America, South America, Asia, and Australia. The company is a premium brand known for its innovative and energy saving approaches to common industrial applications. The company is structured as an international entity but is moving toward a more transnational model. Company leaders are assessing the current methods for talent development, assignment, and performance management in order to anticipate necessary changes that support a transnational model. The company’s senior HR leaders are meeting on this topic.
What rationale should the senior HR leaders use to support hiring third-country nationals as senior managers at many of its locations?
Answers
Lower staffing costs
Greater international experience
Greater company knowledge
Greater corporate control
What is global duty of care?
Answers
An international tariff on services received by U.S. citizens while traveling abroad
A type of international accident and medical insurance that employers can purchase for expatriates
The obligation and responsibility borne by employers to protect employees with work duties that require crossing borders
A management theory that suggests all citizens of the “global village” are obligated to care for each other
Which action is most effective for a non-unionized organization’s HR manager to take during an acquisition to ensure the successful integration of union employees?
Answers
Meet with union officials throughout the process to review job implications.
Offer pay incentives to employees who agree to a non-strike clause.
Form organizational work councils to propose productivity improvements.
Review labor contracts periodically to identify unfair labor practices.
Which HR structural model should be developed to enable a global company’s HR business partners to provide specialized HR expertise?
Answers
Develop HR service teams that can provide seamless support and deliver integrated services to various business functions.
Outsource most of the HR activities to a specialized vendor or develop an in-house shared services team to provide support.
Establish a corporate HR strategy team that guides the HR Business Partners on which aspect of HR needs to be done at the business function level.
Use corporate centers of excellence to complement the use of decentralized generalists by giving them a source of expert help.
Which HRIS method allows senior leaders to most efficiently obtain HR metrics relevant to the business’ strategic goals?
Answers
Detailed custom reports
HR dashboard
Manager self-service
Ad hoc reports
Which action should an HR director take to effectively protect an organization from potential workplace fraud?
Answers
Set up a direct telephone line for employees to report unapproved uses of assets.
Track relationships between employees and vendors.
Hire an external consultant to audit the tender and bid processes.
Limit the number of parties submitting bids for commercial contracts.
To ensure a high performing organizational environment, which is the best approach to fostering working relationships, diversity, and inclusion between individuals of different nationalities?
Answers
Promote practices that enhance involvement and perceived fairness.
Ensure language lessons are offered.
Mandate diversity and inclusion training for managers.
Select expatriates that best identify with subsidiary country.
How can a manager best use HRM policies and practices to align employees’ skills and behaviors with the organization’s strategic goals?
Answers
Perform job analyses to ensure employees understand their job tasks, duties, and responsibilities.
Implement employee benefit programs through benchmarking to ensure the competitiveness of offerings.
Measure attrition and conduct exit interviews to identify patterns and recommend solutions.
Develop incentive plans where individual and group goals and objectives are tied to organization profitability.
An economical shift from value created by manufacturing to value created by knowledge results in a noticeable increase in the use of what type of worker?
Answers
Telecommuting
Contingent
Part-time
Temporary
Which is a key benefit of effective knowledge retention and management strategies?
Answers
Improved person-job fit
Lower training costs
Reduced attrition rates
Increased employee engagement
How can HR management be most instrumental in helping an organization create a competitive advantage?
Answers
Attract and hire qualified talent to support the achievement of the organization’s goals and objectives.
Supply market intelligence on salary, benefits, and incentives to ensure the organization has a lead position in the marketplace.
Conduct regular employee engagement surveys and present the results to senior management.
Develop internal policies and procedures to support organizational culture.
How are HR managers likely to define authentication with regard to protecting company information?
Answers
Making sure that employees’ identities are verified
Granting access to new employees during onboarding
Ensuring the HR manager has access to all employee records
Making sure employee records are inaccessible to external stakeholders
How might differing viewpoints, resulting from workplace diversity, impact group and organizational decision making?
Answers
By leading to faster decisions
By increasing conflict, but leading to higher quality decisions
By decreasing the likelihood of participants accepting the group’s decision
By leading to participants being dissatisfied with the decision-making process
A company with replacement costs of $35,000 for each employee invests in a new online onboarding program that has an initial implementation cost of $150,000 and yearly recurring administrative costs of $10,000. What is the five year return on investment if the program reduces annual turnover from 10 to 8 employees on average?
Answers
10%
75%
120%
125%
Which is most critical for the success of an organizational development intervention?
Answers
Support from top management
Competent training staff
Adequate funding
Needs-based programs
Which is the best example of a lag indicator of business performance?
Answers
Employee engagement
Customer engagement
Profit
Attrition ratio
Which HR action most positively impacts a company’s reputation on the Internet?
Answers
Training employees on social media use so they do not harm the company
Setting guidelines for employees’ use of social media
Updating top management about legal decisions regarding employee use of social media sites
Establishing a company social media presence with online networking services and training employees to increase brand presence
When might a company prefer to use alternative dispute resolution as a means to address employee relations issues?
Answers
When the company has not established a budget line item for attorney fees
When there is no union contract with a mutually agreed upon grievance procedure
When the company wishes to resolve issues in a less contentious way than is typical of addressing complaints through the legal system
When the company has too few employees to be covered by employment discrimination laws
When is it a good strategy to use a localization approach to global HR management?
Answers
When there are too many laws and political issues that require compliance in the host country
When an organization conducts business in countries experiencing political and economic instability
When there are many extraterritorial laws that apply
When a sudden change is anticipated in the home country
The Albemarle Paper Co. v. Moody and the Griggs v. Duke Power Co. cases led to the development of which guidelines and procedures?
Answers
U.S. Department of Labor guidelines and Census Bureau procedures
Uniform Guidelines for Employee Selection Procedures
Department of Veteran Affairs guidelines and military procedures
U.S. Office of Federal Contract Compliance Programs guidelines and U.S. Equal Employment Opportunity Commission procedures
Which activity is least effective in combating workplace violence?
Answers
Enforcing a strict disciplinary policy
Conducting background checks during hiring
Communicating policies effectively
Conducting training on recognizing violence indicators
Practice Exam-SCP