Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility which is:
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A
the fact that legal costs could impact the financial bottom line.
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B
the expectation that business will strive to improve the overall welfare of society.
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C
the idea that businesses are responsible to maintain a healthy social climate for their employees.
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D
the idea that organizations are solely responsible to local citizens.
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Correct answerB
ExplanationFirms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility which is the expectation that business will strive to improve the overall welfare of society.
A HR manager is investigating reasons for job turnover among company employees moving from one job or department to another. Which data collection method would provide the information without initiating interdepartmental conflict?
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A
Surveys to all employees who have changed positions within the past year
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B
Group interviews with employees and previous supervisors to discuss reasons for the job changes
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C
Searching through performance appraisal files and personnel records to learn reasons for job turnover within the company
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D
Questionnaires distributed only to employees who have changed positions
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Correct answerC
ExplanationNote that the questions states, "without interdepartmental conflict", therefore the best option is searching through performance appraisal files and personnel records this option has no possibility of inter-relational conflict.
Which is a characteristic of an HRIS program that improves the value of an organization's data?
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A
Data storage procedures that encourage knowledge workers to retain data on an individual basis
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B
Data that supports decision-making through the sharing of information
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C
Data that can be shared and is widely accessible without many restrictions
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D
Data management procedures that prevent the editing, adjusting, and adding of information
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A small press organization is looking to increase its sustainability efforts . The organization lacks the ability to allocate large amounts of financial resources to sustainability and does not have the clout to drive major changes with overseas business partners. Which option is the best way for the organization to increase sustainability?
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A
Partner with other local businesses to drive sustainability initiatives in the local area
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B
Purchase only sustainably produced paper at a higher cost, passing the cost difference on to the customer
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C
Invest in the creation of online products and influence customers to avoid printing hard copies of its products.
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D
Hire a new chief sustainability officer and allow the new hire to set the course for the organization.
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Correct answerA
ExplanationPartnering with other local businesses can help increase sustainability without depleting its financial resources.
The most accurate definition of an objective is?
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A
the general direction of a company towards which effort and actions are focused.
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B
specific and measurable steps taken to achieve business goals
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C
an approach that deploys the strengths and opportunities of an organization to compete and gain a greater market share
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D
a tool used to achieve an objective associated with a strategy
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Correct answerB
ExplanationObjectives are measurable specific steps an organization takes to achieve its goals. An objective differs from a goal because objectives are measurable and specific. Business objectives are subset of business goals.
What is the primary difference between direct costs and indirect costs in terms of training and development?
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A
Direct costs are any costs greater than $25; indirect costs are those less than $250
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B
Direct costs are any costs associated with human talent; indirect costs are those associated with technology, such as computers
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C
Indirect costs are those associated with travel, meals and lodging; direct costs are other costs associated with training and development
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D
Indirect costs are the costs of operating the entire department; direct costs are those associated with operating a particular program
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Correct answerD
ExplanationDirect costs are expenses that directly go into producing goods or providing services while indirect costs are general business expenses that keep operation going.
The least likely to be outsourced of the following HR activities is?
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A
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B
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C
Recruitment and onboarding
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D
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Correct answerA
ExplanationOf all the options, employee relations is the least likely to be outsourced as it requires direct communication between employer and employee to foster a collaborative relationship and engender an engaged workforce.
A HR manager of Terrain Inc., a personal goods retail company has to go on FMLA leave to care for her mother who suffered a fall. The HR manager asks a HR professional in the department to collaborate on her behalf with a consultancy firm to provide recommendations to management on employee engagement. The consultancy firm has conducted a focus group with 15% of support employees and 5% of line employees. The HR professional upon reviewing the firm's work believes the firm's method is insufficient to gather the full information needed to create an effective solution. The HR professional determines that a different data collection method is necessary. The HR professional chooses to carry out a survey of all employees, proceeds to obtain the support of the CEO, CFO, and COO and makes a presentation to the senior executive team . The senior executive team approves the HR professional's initiative, the survey is carried out, and 85% of the employees respond to the survey. Impressed with the survey exercise, the CEO shares the survey results with the consultancy firm and requests that the firm works closely with the HR professional in the implementation phase. The consultancy firm's associate who worked on the focus group received the news of the survey results with dismay and is unhappy about the firm's work being pushed aside and the survey being done without communicating with or involving the firm. The associate requires clarification from the HR professional. How should the HR professional respond to this?
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A
Advise the associate that the survey was approved by company executives and clarification can be provided by the senior executive team.
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B
Communicate to the associate the areas that the survey helped provide pertinent data and work with the firm to complete the project.
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C
Communicate to the associate senior management's approval of the survey and offer to utilize data from the focus group to increase employee engagement levels.
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D
Explain to the associate that the focus group was not inclusive of a significant portion of the employee population which had further worsened employee engagement levels.
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Correct answerB
ExplanationThe HR professional's best response is to point out the effectiveness of the survey results and work with the associate of the firm through the remaining stages to ensure the project is a success. Note that there is no information in the SJT that indicates employee engagement levels got worsened.
Cronnie is an accounting and finance manager who believes that the best way to motivate employees is to set goals that are slightly above the employees' reach and release them to find creative ways to achieve work responsibilities and accomplish set goals on their own. According to the attribution theory, what will be the likely outcome?
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A
The team will draw on each other's strength and develop a resilient bond with each other.
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B
The employees will have to apply greater effort and creativity to reach the goals that have been set for them.
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C
The employees will develop a sense of sufficiency, independence, and accountability.
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D
The employees may become incapable of meeting the goals and may become hostile.
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Correct answerD
ExplanationAttribution Theory explains how people tend to explain things. Whenever things happen, either good or bad, people will assign a cause to those events. An external attribution assigns causality to an outside agent or force. An internal attribution claims that the person was directly responsible for the event. The employees will most likely make an external attribution to any negative outcomes of the manager's leadership style. This means the employees will feel abandoned, helpless and may react in a hostile manner to the manager.
Question 10
Single choice
A manager leads a team that is highly diverse. Two team members frequently argue vigorously in meetings about causes and solutions to problems. The manager thinks these exchanges are fueled by ethnic differences. What should the team leader do?
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A
Respect their cultural differences and treat these disagreements as task conflicts.
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B
Meet with the two members offline and apply conflict resolution techniques.
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C
Schedule a workshop to focus on improving cultural awareness and communication skills.
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D
Reassign one of the problematic team members to another team. The constant conflict is hurting the team.
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Correct answerC
ExplanationThere is evidence that the benefits of a diverse team outweigh the work that the leader and the team may have to invest in learning how to work together. This can be done by improving global perspective (understanding other's cultural perspectives) and communicating more effectively. The conflicts should be addressed because they can be affecting team productivity. Dealing with the individual problem does not address other problems that may be affecting this diverse team. Transferring one team member does not solve the problem.
Question 11
Single choice
Ann is a leader who believes firmly in the "carrot and stick" rule. She has dedicated 10% of her department's budget to reward employees that meet performance levels of 85% or higher. Ann's leadership is most similar to what leadership style?
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A
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B
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C
Transformational leadership
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D
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Correct answerA
ExplanationTransactional leaders use reward and punishments to gain compliance from their followers these leaders focus on supervision, organization, and performance. Transactional leaders are very often enforcers who are not as concerned with the well-being of the workers in comparison with transformational leaders. Transformational leaders are similar to coaches this is a leader who encourages, motivates and develops followers by creating a vision, guiding through inspiration, and execution of goals alongside members of a group.
Question 12
Single choice
A company is consistently having trouble hiring designers in its creative department, a key unit within marketing that produces all the graphic and pictorial art deliverables for clients. After a couple of months, the recruiting team finds a strong candidate. The candidate requests working first as an independent contractor and then transitioning to permanent employment. After two weeks, work is going smoothly, and the creative unit manager is working with the HR manager to extend an employment offer. Company policy requires all new candidates must successfully pass a drug screen as a condition of employment, but when the candidate is tested, the candidate tests positive for marijuana. The HR manager questions the candidate, who states that the drug was used while he was on a consultancy job in a state where recreational use of marijuana is legal. The senior executive team requests that the HR manager research industry leanings regarding hiring policies and drug use during personal time. How should the HR manager gather the information?
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A
Utilize HR analytics to provide predictive context and explain the productivity issues that drug use can present
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B
Determine the specific end goal of the executives on the requested information regarding drug use during personal time
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C
Present a list of alternative competent candidates that tested negative to illegal drugs
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D
Provide the information to the executive board and hire the candidate, on the premise that drugs cannot be used on duty.
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Correct answerB
ExplanationThe HR manager should gather the information requested by determining the specific goals for the research. This will ensure the information gathered is aligned with the need for which it was requested and clarify the purposes.
Question 13
Single choice
The first step in developing a total rewards strategy is?
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A
Conduct a gap analysis of the current compensation and benefits program
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B
Analyze the organization's overall strategy with key stakeholders to ensure alignment
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C
Benchmark compensation and benefits strategies of core competitors
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D
Decide the company's total rewards strategy based on industry standards
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Correct answerB
ExplanationThe first step to ensure the total rewards strategy is a subset of the company's overall strategy to ensure alignment with the company's vision, mission, and long-term direction.
Question 14
Single choice
This type of HR audit focuses on the strengths and weaknesses of systems and processes to determine whether they align with HR functional goals and the overall organizational plan:
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A
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B
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C
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D
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Correct answerA
ExplanationThe Strategic audit is a type of HR audit that focuses on the strengths and weaknesses of systems and processes to determine whether they align with HR functional goals and the overall organizational plan.The organizational strategy is the sum of the actions a company intends to take to achieve long-term goals. When HR is involved in helping the company achieve its long-term goals, it is engaged in strategic HR.
Question 15
Single choice
A top performer routinely arrives late to work. When questioned, rather than providing an explanation, she just says that she'll take a shorter lunch hour. Because of her performance, her manager allows this behavior to continue. Which risk does the manager take by failing to apply policy consistently?
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A
It may inspire flexibility or liberties in other aspects of work besides start times and end times.
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B
It may provide grounds for a legal finding of unjust dismissal by people who are fired for tardiness.
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C
It may put pressure on other managers to offer flexibility on certain rules based on performance.
-
D
While there is potential risk to employee morale, it is outweighed by this employee's superior performance.
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Correct answerB
ExplanationFailure to apply rules consistently to all employees may be grounds for a legal finding of unjust dismissal and trigger financial penalties. Chronic tardiness can damage the work environment, harm the employer brand, and reduce productivity.
Question 16
Single choice
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A
summary of how the company will achieve its goals, and sustain a competitive advantage in the marketplace.
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B
actionable plans that enable a business take advantage of opportunities as they arise
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C
techniques that enable a business unit move from one milestone to the other in pursuit of the overall goal
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D
specific and measurable results a business aims to achieve
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Correct answerA
ExplanationA strategy provides long term direction to a business and seeks to sustain long-term competitive advantages. Tactics are the means by which a strategy is carried out, i.e., planned and ad hoc activities meant to deal with the demands of the moment, and to move from one milestone to the other in pursuit of the overall goals (option C). Option D refers to objectives. Strategy is often decided by the board of directors, while tactics are determined from the strategy and decided by the department heads for implementation by junior employees.
Question 17
Single choice
An HR director is tasked with building a market-based pay structure for the company. After gathering the background information needed for project success, which is the next step?
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A
Determine the sources of external pay data needed.
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B
Calculate the costs of the pay structures.
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C
Develop metrics to evaluate the pay structures.
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D
Conduct an external pay data analysis.
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Correct answerA
ExplanationIdentifying appropriate external data sources ensures you collect reliable market information before proceeding to analysis and structure development.
Question 18
Single choice
A start-up company specializing in technology is acquired by a larger international organization located in a foreign country. Following the acquisition, a manager from the international company schedules a virtual social hour so employees on the manager's team can bond outside of work hours. During the virtual social hour, employees from the start-up experience difficulties understanding the international employees due to language barriers. An employee from the start-up writes an inappropriate comment making fun of how the international employees speak intending to send it to a co-worker but accidentally sends the message to the whole team. The manager reports the employee's behavior to an HR specialist, who documents the incident. A few weeks later the HR specialist receives an email from the employee who sent the message indicating that the employee's manager is acting hostile toward the employee, and the employee's manager mentioned that the international company should never have acquired the start-up. The HR specialist is concerned the manager's negative comment about the acquisition will lead to other employees having negative opinions about the acquisition. Which action should the HR specialist take to address this concern?
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A
Inform senior leadership that managers are sharing negative comments about the acquisition.
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B
Suggest that any employees who are anxious about the acquisition talk to HR about their concerns.
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C
Coach the manager regarding effective communication options.
-
D
Ask the manager how many others saw the comment to understand how disruptive the comment might be.
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Question 19
Single choice
An example of ___________ occurs when a firm changes its corporate portfolio by acquiring firms and reconfiguring their assets.
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A
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B
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C
Leveraging core competencies
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D
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Correct answerB
ExplanationRestructuring refers to streamlining hierarchy of and reducing number of levels of hierarchy. It may involve downsizing the workforce to lower operating costs. On the other hand, Reengineering refers to fundamental rethinking and radical redesign of business processes to achieve dramatic improvements. It focuses on processes (which cut across functions), not on functions.
Question 20
Single choice
The grapevine in an organization should be:
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A
Managed by adding accurate information
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B
eliminated as much as possible
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C
prevented from spreading information across established lines of communication
-
D
used to women employees of impending disciplinary actions
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Correct answerA
ExplanationGrapevine communication is an informal method of communication within a company. It's a form of unstructured communication. It operates through both external and internal channels, assisting an organization's growth. The grapevine gets its name from the fact that it spreads throughout the company in all directions.Grapevine should not be eliminated from the work system. The organizational grapevine needs to be monitored and kept in control to avoid any damage. Grapevine Management should focus on eliminating and controlling the negative sides of it by ensuring proper employee communication via formal channels.
Question 21
Single choice
A HR manager of Terrain Inc., a personal goods retail company has to go on FMLA leave to care for her mother who suffered a fall. The HR manager asks a HR professional in the department to collaborate on her behalf with a consultancy firm to provide recommendations to management on employee engagement. The consultancy firm has conducted a focus group with 15% of support employees and 5% of line employees. The HR professional upon reviewing the firm's work believes the firm's method is insufficient to gather the full information needed to create an effective solution. The HR professional determines that a different data collection method is necessary. The HR professional chooses to carry out a survey of all employees, proceeds to obtain the support of the CEO, CFO, and COO and makes a presentation to the senior executive team . The senior executive team approves the HR professional's initiative, the survey is carried out, and 85% of the employees respond to the survey. Impressed with the survey exercise, the CEO shares the survey results with the consultancy firm and requests that the firm works closely with the HR professional in the implementation phase. The HR professional is creating and compiling the questions for the upcoming employee engagement survey for next year. How best can she determine the most effective survey questions?
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A
By defining employee attitudes toward retention, pay, and supervision
-
B
By soliciting opinions and ideas to improve employee vigor and work processes
-
C
By ensuring the questions are in compliance with legal and regulatory requirements
-
D
By linking the survey questions to business objectives
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Correct answerD
ExplanationHR does not exist in a vacuum. HR must be strategic to ensure its processes and activities are geared towards enabling the organization achieve its strategic goals and business objectives. There must be a line-of-sight that connects HR's actions to the organization's overall business goals.
Question 22
Single choice
Determining trainees' knowledge gaps, course content, and training instructors are covered in?
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A
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B
-
C
-
D
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Correct answerB
ExplanationInstructional Design is the systematic development of instructional specifications using learning and instructional theory to ensure the quality of instruction. It is the entire process of analysis of learning needs and goals, and the development of a delivery system to meet those needs. Examples of instructional designs are ADDIE and Bloom's taxonomy.
Question 23
Single choice
The HR director and the CEO of an e-commerce company with 330 employees each receive a similar email from an unrecognizable address. The letter is from an anonymous discontented employee. In the letter, the employees accuses the Chief Financial Officer (CFO) of the company of financial fraudulent practices including using accounting loopholes to hide hundreds of thousands of dollars of bad debt, while simultaneously inflating the company's earnings. The anonymous email also accuses the CFO of intimidation, retaliation, and virulently attacking senior managers in front of junior colleagues. The email further states that the employee has taken great effort to remain anonymous because of a fear of retaliation, which may lead to termination for spurious reasons. The email states that HR is improperly chummy with the CFO and has never been able to conduct an independent workplace investigation free of prejudice. Which action should the HR director take to best ensure that company leadership understand and act in accordance with the company's expectations of its executives?
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A
Involve an independent external firm to discuss compliance issues with senior executives and provide training on reprisal-free ethical reporting.
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B
Utilize 360-degree feedback mechanisms to identify and coach executives with behavioral problems and ethical slips.
-
C
Invest in a quarterly training sequence focused on behavioral expectations of executives and employees to support compliance, reshape culture and reduce risk.
-
D
Utilize focus groups, surveys, and peer reviews to evaluate ethical behavior and integrity among the company's executives.
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Correct answerC
ExplanationConsistent training on ethics and compliance is the most effective method of communicating an organization's code of ethics and compliance requirements as well as sharing the expected behavior and responsibilities of executives who act as role models in the company.
Question 24
Single choice
When designing a compensation bonus structure for an international company, it is most important for the VP of HR to analyze which cultural values in each region?
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A
Individualism versus collectivism
-
B
Masculinity versus femininity
-
C
Low power versus high power distance
-
D
Long-term versus short-term orientation
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Question 25
Single choice
The central purpose of the balanced scorecard is to;
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A
Ensure compliance with tactical planning across functions
-
B
Give executives a measurement system to direct activities
-
C
Align company mission and vision with day to day operations
-
D
Bring departmental operations into a centralized command structure
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Correct answerC
ExplanationA balanced scorecard is a strategic management performance metric used to identify and improve various internal business functions and their resulting external outcomes. It is geared towards enabling the organization achieve its mission. Balanced scorecards are used to measure and provide feedback to organizations.
Question 26
Single choice
In an exit interview by a third party consultant, the Head of Operations stated that he resigned because the executives punished him for using the company credit card by instituting an ethical inquiry even when he offered to pay the sum back to have the record expunged from his employment record. He said his offer was refused despite the fact that something similar had happened to the Head of HR and the record was expunged when she only paid half of what she spent. He hinted that this happened because HR is responsible for administering fringe benefits. This is an example of which of the following?
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A
-
B
Misuse of fiduciary responsibility
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C
-
D
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Correct answerC
ExplanationDistributive justice refers to the perceived fairness of one's outcomes. The key issues here is that the Head of Operations believes his outcomes were different from another, therefore they were not fair.
Question 27
Single choice
A global company concerned with consistency among locations will likely use this approach to goal-setting.
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A
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B
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C
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D
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Correct answerC
ExplanationGlobal integration is the degree to which the company is able to use the same products and methods in other countries. Local responsiveness is the degree to which the company must customize their products and methods to meet conditions in other countries. Global Integration involves global companies integrating their activities on a global basis to realize economies of scale and achieve cost reduction. A key motivation of Global Integration is the need of efficiency it enables companies to expand manufacturing globally and achieve economies of scale, which results in more standardized products
Question 28
Single choice
The marketing department at a large financial services company chooses five high-performing staff members every year to receive a performance award, which includes a monetary reward and recognition at an end-of-year meeting. Employees are chosen by managers in the marketing department. Each manager nominates two direct reports, and then all managers meet as a group to discuss nominees until a consensus is reached. The names of the winners are given to HR for final approval. The marketing department is preparing to begin this year's nomination process. There have been repeat winners in each of the last three years. A marketing employee files a complaint with the HR director about favoritism in the award process. Additionally, the employee points out that newer employees rarely win the award, which lowers their morale. New employees tend not to win because they spend a couple of years training and shadowing experienced employees before receiving tasks to perform independently. After the nominations are submitted to HR, a product manager asks the HR director not to approve a nominee who recently insulted the manager during an argument. Which action should the HR director take?
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A
Direct the manager to discuss the issue with the employee.
-
B
Meet with the nominee to learn more information about the incident.
-
C
Explain to the manager that the award is based on performance and not interpersonal relationships.
-
D
Suggest the manager should not influence awards for the marketing department.
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Question 29
Single choice
The law that protects whistleblowers and also requires notice requirement for plan administrators of ERISA-covered plans is?
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A
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B
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C
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D
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Correct answerC
ExplanationThe Sarbanes-Oxley Act (SOX) requires that plan administrators of ERISA-covered plans provide affected participants and beneficiaries with at least 30 days' written notice before any black-out period with respect to an individual account plan. SOX also protects whistleblowers, i.e. employees who report fraudulent activities and violations of Securities Exchange Commission rules that can harm investors in publicly traded companies. Whistleblowers can file a complaint with OSHA within 180 days if they believe that their employer has retaliated against them for exercising their rights under SOX.
Question 30
Single choice
A global organization has an ongoing problem retaining employees due to high turnover across sites. Executive leadership tasks the HR director with assessing the reasons for high turnover. However, hiring new employees takes precedence; therefore, the assessment identifying the reasons behind turnover was delayed. Upon completion, the assessment reveals that job abandonment, disciplinary terminations, and resigning without notice are the primary issues. Managers are terminating employees consistent with the organization's disciplinary policy for high-severity offenses, but employees who commit low-severity offenses are subjectively and ambiguously terminated without considering opportunities for improvement. Negative perceptions of employee culture have increased as a direct result of the way terminations are being handled, causing tense employee relations and increased job abandonment. The HR director must determine what actions to take regarding the primary issue of turnover, as well as how to address and improve employee perceptions of the organization. The executive leadership team is developing an intervention with the goal of improving employee culture. However, different sites may have very different norms and practices based on where they are located. Which should the HR director do to promote the effectiveness of the intervention across the organization's different sites?
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A
Research different intervention methods that may be appropriate for the HR director to implement at each site.
-
B
Work with representatives from different sites to adapt the intervention to suit employees locations.
-
C
Ask HR employees across sites to develop interventions that reflect the local culture.
-
D
Implement the intervention in the same manner across sites to guarantee consistency.
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Correct answerB
ExplanationPartnering with site representatives to tailor the intervention to local norms builds relevance, buy-in, and consistency of outcomes across diverse locations.
Question 31
Single choice
If the primary goal of the dispute resolution system is putting pressure on negotiators to settle and guaranteeing a solution, then ____________ is best.
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A
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B
alternative dispute resolution
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C
constructive confrontation
-
D
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Correct answerD
ExplanationIf the primary goal of the dispute resolution system is putting pressure on negotiators to settle and guaranteeing a solution, then arbitration is best.Note that Mediation is a non-binding process generally conducted with a single mediator who does not judge the case but facilitates discussion and eventual resolution of the dispute.Arbitration, on the other hand, is typically a binding process that replaces the full trial process with multiple (often three) chosen people to serve as judges in your case.Arbitration is generally conducted with a panel of multiple arbitrators who take on a role like that of a judge, make decisions about evidence and give written opinions (which can be binding or non-binding).
Question 32
Single choice
Which means of gathering external intelligence best mitigates the risk of losing top executives to competitors?
-
A
Strengths, weaknesses, opportunities, threats analysis
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B
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C
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D
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Question 33
Single choice
Which of the following is the most accurate warning sign of a possibility of workplace violence?
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A
Radical change in behavior patterns
-
B
Frequency and intensity of behavior towards team goals
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C
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D
Continuous attempts to organize a union
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Correct answerA
ExplanationThe most accurate warning sign of the possibility of workplace violence is a radical and disruptive change in behavior patterns. Note that option D is most likely referring to "salting" and not necessarily violence.Salting is a labor union tactic involving the act of getting a job at a specific workplace with the intent of organizing a union. A person so employed is called a "salt".
Question 34
Single choice
According to Blake Mouton managerial theory, a manager who delegates all tasks and does not exercise any authority over the team is what kind of manager?
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A
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B
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C
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D
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Correct answerB
ExplanationImpoverished Manager, also called Low Results/Low People. This manager has low regard for productivity and little interest in creating a motivating team environment.
Question 35
Single choice
What must HR practitioners include in their focus in order to be a strategic partner?
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A
Performance appraisals and performance improvement plans
-
B
Global, long term, and forward-thinking considerations
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C
Local, tactical, and past performance considerations
-
D
Employee assistance programs
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Correct answerB
ExplanationA strategic HR business partner is a leader who is included in conversations about the future, mission, goals, and overall strategy of a company or organization. Note that strategy is long-term, futuristic, holistic, and geared towards the overall success of the organization as a whole (not in parts).
Question 36
Single choice
A HR manager is investigating reasons for job turnover among company employees moving from one job or department to another. Which data collection method would provide the information without initiating interdepartmental conflict?
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A
Surveys to all employees who have changed positions within the past year
-
B
Group Interviews with employees and previous supervisors to discuss reasons for the job changes
-
C
Searching through performance appraisal files and personnel records to learn reasons for job turnover within the company
-
D
Questionnaires distributed only to employees who have changed positions
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Correct answerC
ExplanationThe data collection method that would provide the information required without initiating interdepartmental conflict is by searching through performance appraisal files and personnel records to determine the? reasons for job turnover within the company. This option does not involve human interactions and difficult discussions.
Question 37
Single choice
A __________ span of control refers to a structure with few employees reporting to the manager, while a ___________ span of control refers to a structure with many employees reporting to a supervisor:
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A
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B
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C
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D
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Correct answerC
ExplanationSpan of control refers to the number of subordinates a supervisor has.A narrow span of control refers to a structure with few employees reporting to the manager, while a wide span of control refers to a structure with many employees reporting to a supervisor.
Question 38
Single choice
A HR structure where headquarters HR is staffed with specialists who craft policies, and the policies are implemented by generalists at all locations/divisions:
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A
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B
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C
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D
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Correct answerB
ExplanationThe functional HR organizational model refers to a model where headquarters HR is staffed with specialists who craft policies, and the policies are implemented by generalists at all locations/divisions. The advantage of the functional HR model is it is effective in organizations with single strategies, and creates consistency between Headquarter policy and Business Units practices.The disadvantage of the functional HR model is an isolation of headquarters HR from realities in the business units/locations/ divisions.
Question 39
Single choice
The Chuckle Corporation is heavily involved in working with lawmakers and lawmaking bodies to gain support for its business initiatives and to canvass for specific services. What is the strategic advantage of the Chuckle Corporation's efforts?
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A
The organization will be able to obtain positive publicity
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B
The organization is able to proactively influence legislation in favor of company policies and procedures
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C
The organization is able to proactively lobby and shape future laws for its competitive advantage
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D
The organization will have high compliance levels in financial and employment requirements
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Correct answerC
ExplanationA strategic advantage is connected to enabling and fostering an organization's competitive advantage. Legislative advocacy is an effective way to bolster a cause and obtain business gains for an organization's strategic advantage.
Question 40
Single choice
What do managerial judgment forecasts, trend analysis, Delphi technique, ratio analysis, and turnover analysis help predict?
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A
Quantitative methods of labor demand
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B
Employee engagement levels
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C
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D
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Correct answerC
ExplanationLabor forecasting is a formal process for anticipating the staff a company will require in the future. Labor forecasting can be done through qualitative and quantitative methods. Quantitative methods (mathematical and statistical model) include trend analysis, ratio analysis, etc. - while qualitative methods (human observations and judgments) include managerial judgment forecasts, brainstorming, Delphi technique, nominal group technique, focus groups etc.
Question 41
Single choice
"It was a union member who filed the ULP we are currently grappling with - this validates my premise that it is always union members who file ULPs". This statement best describes:
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A
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B
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C
a violation of the fair representation doctrine
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D
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Correct answerB
ExplanationInductive reasoning uses a specific observation to draw general conclusions. "Harold is a grandfather. Harold is bald. Therefore, all grandfathers are bald." Deductive reasoning starts out with a generalization that follows a process to reach a specific, logical conclusion."All men are mortal. Harold is a man. Therefore, Harold is mortal."
Question 42
Single choice
A small organization recently hired a new CEO with a strong marketing background. The CEO establishes a new sales approach focused on expanding business opportunities through the creation of new products, which will be marketed and sold by the sales force. The CEO believes her effectiveness is impaired by having too many direct reports. The CEO meets with the CFO and HR director. They decide to reduce the CEO's number of direct reports to those most relevant to the CEO's vision for the organization. The remaining employees are reassigned to the CFO who already oversees a team of three. This change allows the CEO to more effectively focus on the vision HR releases a memo informing employees of the change in reporting structure. The CFO proposes a plan to improve process efficiency within the organization and asks the HR director to implement it. Some employees dislike the plan and refuse to follow it. What should the HR director do?
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A
Hold a meeting with employees and listen to their concerns about the plan.
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B
Invite the CFO to reinforce the need for employees to follow the plan.
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C
Focus on telling the employees about the benefits of implementing the plan.
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D
Conduct interviews with the employees who are refusing to follow the plan.
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Question 43
Single choice
When Thaddeus started his repair shop his business plan included ____________ that showed the relationship among employees in his organization and the lines of authority and responsibility.
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A
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D
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Correct answerA
ExplanationDepartmentalization is a process wherein jobs/teams are combined together into functional units called as departments on the basis of their area of specialization, to achieve the goals of the organization. So, in this way, the entire organization is divided into parts, i.e. departments which comprise of a group of employees, who carry out activities of similar nature. Scalar chain is the formal line of authority which moves from highest to lowest rank in a straight line. This chain specifies the route through which the information is to be communicated to the desired location/person.
Question 44
Single choice
The HR Director appears unfazed at a union's threat of a strike. Which of the following is the best reason why?
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A
The employer has a strong product demand and the economy is experiencing high unemployment rates
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B
The employer has a strong supplier network and the economy is experiencing fluctuating unemployment rates
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C
The employer's supply chain is automated and the economy is experiencing low unemployment rates
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D
The union plans to engage in an economic strike and the economy is experiencing high unemployment rates
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Correct answerD
ExplanationOption D is most favorable to the employer as an employer can permanently replace strikers in an economic strike; and has a large pool of labor to fill the positions because of a high unemployment rate. Also, at the conclusion of an economic strike, the striking worker is not entitled to unconditionally receive his/her old job back. Instead, s/he is placed on a preferential hiring list. The employer's business is most likely to be affected when there is a high demand for its products, when it has a low degree of automation in its production process, and when there is a low unemployment rate.
Question 45
Single choice
"Even though there is an over-arching HR strategy, it is debilitating to the company to keep having independent HR functions in our product units because it is cost-intensive and has led to variations in HR practices in the organization". The speaker is most likely referring to__________?
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A
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B
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C
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D
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Correct answerC
ExplanationIn a decentralized HR structure, strategy and policies are created by Headquarters HR while HR in the business units operate and make decisions on HR processes independent of the other units. In this structure, HR policies and practices differ significantly across locations. Note that in a Dedicated HR model, each business unit will have its own strategy and policy.
Question 46
Single choice
The HR director and the CEO of an e-commerce company with 330 employees each receive a similar email from an unrecognizable address. The letter is from an anonymous discontented employee. In the letter, the employees accuses the Chief Financial Officer (CFO) of the company of financial fraudulent practices including using accounting loopholes to hide hundreds of thousands of dollars of bad debt, while simultaneously inflating the company's earnings. The anonymous email also accuses the CFO of intimidation, retaliation, and virulently attacking senior managers in front of junior colleagues. The email further states that the employee has taken great effort to remain anonymous because of a fear of retaliation, which may lead to termination for spurious reasons. The email states that HR is improperly chummy with the CFO and has never been able to conduct an independent workplace investigation free of prejudice. Which first step should the HR director take to handle the allegations in the email?
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A
Suggest to the CEO that the CFO be informed of the allegations, offered the option of a paid administrative leave so as to conduct a thorough investigation of the allegations without bias or prejudice.
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B
Choose an external investigator of repute in financial matters to determine the validity of the allegations and conduct an impartial investigation of the anonymous employee's claims.
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C
Examine the Chief Financial Officer's personnel file in search for information that may indicate that a routine of the alleged behavior is existent.
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D
Research the company's financial documents and conduct interviews with the senior managers and employees in the finance department to determine the validity of the allegations.
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Correct answerC
ExplanationThe first step the HR Director should take is to review the CFO's personnel file to determine if there is any information within the file that may substantiate the allegations. This first step will determine the next actions to be taken such as a determination by the CEO and HR Director to carry out a thorough investigation of the allegations in the email. The other options are wrong because these are premature solutions to an issue for which (at this time) there is no concrete evidence to warrant an investigation.
Question 47
Single choice
An analysis of the external environment requires the Prep firm to identify its:
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A
weaknesses of lack of capital and low website visibility.
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B
strength of world-class customer service and high-quality staff.
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C
Customer-centric strategy and attractive store design
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D
New generation of consumers and industry price fluctuation
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Correct answerD
ExplanationNote the term, "external" which applies to opportunities and threats while "internal" has to do with "strengths and weaknesses". External environmental analysis involves a consideration of opportunities and threats (new generation of consumers and industry price fluctuation) , the external component of a SWOT study.
Question 48
Single choice
The executive team is divided on whether the company should merge with a competitor . This has created a division in leadership that has become intractable. The Board of Directors (BOD) have decided that the effective way to resolve the several conflicts in leadership is to focus on separating the people from the problem, separating the core issues from the overlaying issues, resolve the overlaying issues and then focus on resolving the core issue that will be resolved by alternative solutions. What form of alternative dispute resolution has the BOD decided on?
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A
Constructive confrontation
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B
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C
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D
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Correct answerA
ExplanationConstructive confrontation is a type of mediation that focuses on resolving organizational conflicts by separating the core issues from the overlaying issues. The overlaying issues are resolved first so as to clarify the core issues and then proceed to resolve objectively and easily resolve the core causes of the conflicts.
Question 49
Single choice
What is the most effective way for HR professionals to align organizational effectiveness and development (OED) with organizational goals?
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A
Increase the budget for training activities.
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B
Reduce learning time for mastery of critical skills
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C
Participate in the strategic planning process.
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D
Involve managers in the development of training activities.
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Correct answerC
ExplanationHR professionals will be effective at aligning OED initiatives with organizational goals if HR has an active participation in the strategic planning process.
Question 50
Single choice
The principal step in strategic planning for an international business is:
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A
analysis of the internal environment.
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B
identifying the basic mission.
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C
analysis of the external environment.
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D
formulate its tactics of operation.
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Correct answerB
ExplanationA firm's principal step is clarifying its mission statement which is an explanation of why the organization exists, its purpose, and the path it will take to achieve its vision. The mission defines markets, customers, products etc.
Question 51
Single choice
In conversation outside work, a manager in another function describes secondhand reports about the marital problems of an employee in that area. The HR professional should?
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A
ask if the employee is having performance issues
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B
advise the manager not to engage in gossip
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C
not participate but not correct the behavior
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D
approach the employee in question independently and offer counseling
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Correct answerB
ExplanationOne of the core ethical issues facing organizations is respecting employee privacy. The HR professional should model this respect for workplace privacy. Approaching the employee, even in good faith, violates privacy. If the supposed problems have created performance issues, the manager should have reported the performance issues, not the rumors.
Question 52
Single choice
This type of hybrid organizational structure combines departmentalization by division and function to gain the benefits of both with a dual chain of command:
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A
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B
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C
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D
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Correct answerA
ExplanationThe matrix structure is a type of hybrid organizational structure that combines departmentalization by division and function to gain the benefits of both. It features a dual chain of command where employees report to two supervisors rather than to the traditional single supervisor.
Question 53
Single choice
What is meant by a fiduciary duty or obligation?
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A
Legal obligation to provide a minimum wage for all workers
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B
Legal obligation of one party to act in the best interest of another
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C
Legal mandate to provide employees with retirement pension benefits via government or private sources
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D
Laws dictating the terms of termination and end-of-service calculations
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Correct answerB
ExplanationLegal obligation of one party to act in the best interest of another. A fiduciary duty (or fiduciary obligation) implies a legal obligation of one party to act in the best interest of another. The obligated party is typically referred to as a "fiduciary" (e.g., an individual or party entrusted with the care of money or property).
Question 54
Single choice
The strategy of the Terse firm in its home country is an innovative culture that creates cutting-edge products. The Terse firm has decided to operate in international markets (host countries) in much the same way as it does in the home country, it is described as being:
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A
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B
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C
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D
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Correct answerB
ExplanationThe transfer of home country values and practices to overseas operations is termed ethnocentric. Ethnocentric companies tend to believe that their group, organization, culture, or ethnicity (home country or headquarters) is superior to others. Ethnocentrism can exist in international business, for instance, where home country staff consider themselves superior to foreign staff in other countries.
Question 55
Single choice
Which HR strategy should have the greatest impact on promoting a culture that embraces corporate social responsibility (CSR) and corporate philanthropy?
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A
Incorporate CSR concepts into learning and development programs.
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B
Use CSR initiatives to recruit, develop, engage, and retain employees.
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C
Build a strong partnership with corporate CSR leaders to make HR's efforts more visible.
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D
Conduct a survey on employee views of CSR and specifically target corporate philanthropy.
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Question 56
Single choice
HR must create a training that will enable employees find information and guidance on how to respond to compliance and ethical issues. Which training approach will be most effective?
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A
Script an engaging play in which consultants illustrate compliance challenges in the workplace
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B
Hire a local expert on business ethics to conduct a question-and-answer session with staff.
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C
Present challenging ethical situations and enable employees to work together to analyze their responses.
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D
Create a reference guide on ethical and compliance situations with suitable responses.
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Correct answerC
ExplanationPresenting challenging ethical situations that enables employees work together to analyze their responses ensures employee involvement, participation and readiness to handle ethical and compliance issues in the workplace.
Question 57
Single choice
What is the most accurate description of risk?
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A
The probability of an organization's exposure to vulnerabilities that represent negative deviation from what is expected
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B
Adverse consequences of an event that has enterprise-wide impact
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C
Qualitative and quantitative representation of an organization's vulnerability to loss
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D
The effect of uncertainty on an organization's capability to meet its objectives
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Correct answerD
ExplanationAccording to ISO 31000, risk is the "effect of uncertainty on objectives" and an effect is a positive or negative deviation from what is expected - whereas risk management is "coordinated activities to direct and control and organization with regard to risk".
Question 58
Single choice
A team is assembled to streamline the organization's current HRIS processes. The HR generalist is asked by the HR director to map departments' current recruitment and onboarding processes to ensure the HRIS can be updated to better meet organizational needs. A few months into the project, a team member who is responsible for testing the HRIS unexpectedly takes leave for several weeks. The HR generalist is asked by the HR director to assume the responsibilities of the team member and lead the testing of the HRIS. Additionally, the organization is currently laying off a large percentage of its workforce, and the HR generalist has responsibilities associated with those layoffs. The HR generalist begins to feel overwhelmed. The HR generalist plans to meet with several employees to gather information about how they use the HRIS. However, due to ongoing layoffs, the employees are hesitant to provide information to the HR generalist because they fear it will lead to their replacement. Which action should the HR generalist take?
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A
Inform the employees that providing input will ultimately make their jobs easier because it will lead to HRIS improvements.
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B
Suggest to the employees that their willingness to help with the project will reflect favorably on them.
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C
Explain to the employees the purpose of the project and that participation is unrelated to the layoffs.
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D
Invite the HR director to attend the meetings to encourage the reluctant employees to participate.
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Question 59
Single choice
An agricultural enterprise has received several employee complaints about the excessively hot and humid conditions in which they work. Reports of workplace violence have also been made, particularly in the summer. Under what standard will OSHA handle these complaints?
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A
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B
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C
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D
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Correct answerA
ExplanationOSHA does not have a specific standard that covers working in hot environments or workplace violence. Nonetheless, under the OSH Act General Duty clause, employers have a duty to protect workers from recognized serious hazards in the workplace, including heat-related hazards, and workplace violence.
Question 60
Single choice
A local, family-owned hardware company has multiple stores throughout a midsize city. Recently, the HR manager for the hardware company was informed by the CEO that a large, publicly traded organization is acquiring the family-owned business. As a result of the acquisition, the HR manager will soon be instructed to lay off employees at various locations. In addition to telling the HR manager, the CEO also informs the store managers at each location. The CEO plans to announce the acquisition at a companywide meeting, but news of the acquisition has already leaked to employees who now feel betrayed by the lack of communication. Store managers are already complaining that employees are engaging in counterproductive work behaviors like showing up late to work, leaving store shelves unorganized, and acting disrespectfully to store managers. The HR manager is concerned about these behaviors since the acquisition will not formally take place for another six months. The large, publicly traded organization employs workers from very diverse backgrounds. Which action should the HR manager take to prepare employees for working with others from diverse backgrounds?
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A
Adjust the local stores' statement on inclusion and diversity to incorporate more language related to diversity.
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B
Offer inclusion and diversity training to employees prior to the acquisition.
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C
Research the demographics of the acquiring organization to prepare local store employees and managers.
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D
Update the employee handbook to include an inclusion and diversity policy.
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Correct answerB
ExplanationProviding inclusion and diversity training before the acquisition helps local employees develop the cultural awareness and skills needed to collaborate effectively with a more diverse workforce, smoothing the integration process.
Question 61
Single choice
A team manager at a large consulting firm expresses concerns to the team director and HR manager that turnover among junior-level staff is high. The loss of junior-level staff is impacting the ability of senior staff to efficiently and effectively meet client needs. As a result, senior staff are hesitant to take on new projects, impacting the firm's overall revenue. The team director asks the senior staff their opinions as to why turnover among junior-level staff is so high. Senior staff agree the primary reason is that junior-level staff are underpaid. To mitigate this issue, the team director suggests to the HR manager that junior-level staff be paid retention bonuses after their first, second, and third years of employment. The team director asks the HR manager's opinion as to whether this is likely to be an effective solution and how a new bonus system would influence overall organizational functioning. A review of engagement surveys indicates junior-level staff report low levels of satisfaction with work/life balance. How should the HR manager use this data?
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A
Implement workshops focused on work/life balance to see if levels of satisfaction increase.
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B
Share the engagement survey data with the team director and brainstorm possible action plans.
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C
Communicate the engagement survey data to the entire firm via email and request suggestions.
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D
Conduct one-on-one meetings with junior-level staff to learn the causes of poor work/life balance.
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Question 62
Single choice
According to Edgar Schein, implicit culture represents the innermost layer of culture. This layer involves:
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A
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B
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C
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D
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Correct answerC
ExplanationEdgar Schein divided an organization's culture into three distinct levels: artifacts, values, and assumptions. Artifacts are the overt and obvious elements of an organization such as dress codes, furniture and office layout, dress norms, inside jokes, and mantras. Espoused values are the company's declared set of values and norms. Shared basic assumptions are the bedrock of organizational culture - they are the innermost beliefs and behaviors so deeply embedded that they can sometimes go unnoticed.Image credit: www.gray.com
Question 63
Single choice
In the Derulic plant, supervisors realize that their employees tend to produce optimally when under passive leadership. Therefore, a relationship has evolved between the employees and the supervisors where the employees maintain high production while the supervisor respects the norms of the employee informal culture. This is an example of?
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A
Implied employment contract
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B
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C
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D
Express employment contract
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Correct answerC
ExplanationA psychological contract is an unwritten implicit contract that represents the mutual beliefs, perceptions and informal obligations between an employer and an employee. It sets the dynamics for the workplace relationship between employer and employee, and includes qualities such as respect, compassion, job security, objectivity, and trust.
Question 64
Single choice
Professional online networks, social networks, and college alumni websites are examples of which of the following hiring mediums?
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A
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B
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C
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D
Career page on corporate websites
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Correct answerC
ExplanationSocial media is a social network where people interact on a personal or professional basis such as LinkedIn and Facebook. Note that all three terms in the question involves some form of external networking.
Question 65
Single choice
Which is an example of a risk management strategy of mitigation?
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A
A company investigates a claim and decides to discharge a manager suspected of sexual harassment.
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B
A company purchases ransom and recovery insurance policies for all of its global assignees.
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C
Senior management decides that it will tolerate a certain amount of risk incurred from pilferage
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D
Department leaders are directed to train at least two employees to perform critical leadership tasks.
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Correct answerD
ExplanationTraining employees to perform critical leadership tasks does not prevent the risk of a leader being unavailable, but it does lessen the possible impact by having subordinates ready to continue essential processes. Tolerating a risk applies a risk acceptance strategy, and insurance reflects risk sharing. Discharging the manager prevents future incidents by removing the cause (the manager). Mitigation - the action of reducing the severity, seriousness, or painfulness of something.
Question 66
Single choice
The international strategy of the Terse corporation is based on the idea of a shared vision, efficiency, and effective global coordination, but also endeavors to ensure adequate market adaptation or local responsiveness?
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A
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B
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C
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D
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Correct answerA
ExplanationThe correct answer is the transnational strategy which attempts to combine elements from a global and a multinational strategy. International strategy is a generic term when firms expand into multiples overseas markets through exporting. A firm using a transnational strategy seeks a middle ground between a multidomestic strategy and a global strategy. Such a firm tries to balance the desire for efficiency with the need to adjust to local preferences within various countries.
Question 67
Single choice
A team manager at a large consulting firm expresses concerns to the team director and HR manager that turnover among junior-level staff is high. The loss of junior-level staff is impacting the ability of senior staff to efficiently and effectively meet client needs. As a result, senior staff are hesitant to take on new projects, impacting the firm's overall revenue. The team director asks the senior staff their opinions as to why turnover among junior-level staff is so high. Senior staff agree the primary reason is that junior-level staff are underpaid. To mitigate this issue, the team director suggests to the HR manager that junior-level staff be paid retention bonuses after their first, second, and third years of employment. The team director asks the HR manager's opinion as to whether this is likely to be an effective solution and how a new bonus system would influence overall organizational functioning. The HR manager determines that implementing retention bonuses is likely to decrease junior-level staff turnover. Which should the HR manager do to determine the potential effects of a new bonus system on overall organizational functioning?
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A
Calculate the long-term, yearly cost of providing bonuses to junior-level staff.
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B
Ask senior leaders their opinion on the potential risks of implementing a new bonus system.
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C
Calculate the cost of turnover due to frequent recruiting, training, and onboarding.
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D
Calculate the return on investment associated with the new bonus system.
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Question 68
Single choice
Which of the following HR metrics is an indicator of productivity?
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A
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B
Performance and potential (the 9-box grid)
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C
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D
Ratio of HR professionals to employees
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Correct answerA
ExplanationThe "revenue per employee" metric shows the efficiency and productivity of the organization as a whole. It is calculated as a company's total revenue divided by its current number of employees. It measures how much money each employee generates for the firm and is an indicator of the quality of hired employees.
Question 69
Single choice
As VP of HR, you are helping your company's executive committee plan a highly experimental manufacturing process. It will be employing unusual nontraditional technology and work structure to produce an innovative product. There is a significant possibility that the venture will fail, however, if it is successful, the profits will be immense. Your company has manufactured a related product line for over 50 years using traditional methods. With your knowledge of organizational culture, you suggest that:
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A
it would be best to try this process in an existing plant with senior employees selected to form the core workforce.
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B
since this is a new manufacturing process, the appropriate HR policies and procedures will not be apparent until the plant is actually up and running
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C
although a new location would be best, it is important that HR policies and procedures promote the organization's traditional and unique culture in the new plant.
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D
it would be best to try this process with new employees in a separate location with new HR policies and procedures.
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Correct answerD
ExplanationThe best option will be to establish this nontraditional process in a separate location with new HR policies and procedures that are aligned with the innovation and unique nature of the manufacturing process.
Question 70
Single choice
After careful research, a company decides to expand its services into a new, growing market. What is most likely to occur as result of this expansion?
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A
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B
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C
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D
New organizational structure
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Correct answerD
ExplanationOrganizational structure refers to the way in which work groups are related. Organizational interventions are required when an organization has changed its competitive strategies and needs to develop new skills and traits for example, skills needed to respond to market changes quickly. The organizational design must be focused in a new direction. New organizational structures often accompany organizational growth based on new needs.
Question 71
Single choice
An organization is facing a deadline on a contract with a major customer. HR is aware that an agreement with one of the unions representing employees is due for negotiation. How might the organization's budget be affected?
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A
The budget should include hiring costs for temporary workers.
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B
The organization should budget for more overtime.
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C
The organization must prepare for concessions during collective bargaining agreement negotiations.
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D
The situations will have no effect on workforce needs and no effect on the budget
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Correct answerA
ExplanationContract negotiations could take time, and the organization's deadline on an important contract may mean that the organization will have to budget for recruiting, hiring, and training temporary workers. Budgeting for overtime will not help if a labor agreement is not in place. The situation does not necessitate concessions if other solutions can be found.
Question 72
Single choice
What developmental activities can best help individuals understand their leadership behaviors?
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A
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B
Career development inventory
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C
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D
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Correct answerC
ExplanationA workstyle assessment is an overarching assessment of an employee's work personality - ability to work with others, attitude, and work ethic, among other traits.During an in-basket exercise, job applicants receive a number of mails, telephone calls, documents and memos - they then have a limited period of time to set priorities and organize their working schedule.
Question 73
Single choice
The Board of Directors of the Derulic corporation has determined that an executive ethics officer role is necessary and has mandated that the role be filled within the quarter. On what basis was this decision most likely made?
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A
To eliminate the possibilities of sexual harassment and corporate fraud whistleblowing
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B
To entrench a culture of consistency in corporate governance policies and ethical standards in the corporation
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C
Having a chief ethical officer is a compliance requirement of the Dodd-Frank Wall Street Reform Act, and the Consumer Protection Act
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D
To entrench corporate ethics in employee relations and alternative dispute resolution processes.
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Correct answerB
ExplanationEven though the requirements of the Dodd-Frank Act and Consumer Protection Act makes it advisable to employ the services of an executive ethical officer, it is not a requirement of the laws. The chief ethics officer is responsible for developing, distributing and ensuring the consistency of codes of ethics and its application, entrenching a strong ethical culture, developing training programs for employees, and monitoring and auditing compliance with government regulations. The role does not remove the possibility of complaints or whistleblowing.
Question 74
Single choice
A small, family-owned transportation business is experiencing financial difficulties. Last year's revenue was much lower than expected, so the business is beginning to reduce its expenses. The business usually leases specialized equipment for all employees to make complicated transports more efficient, and these make up about a quarter of each employee's transports. This year, only half of the employees will have access to this equipment. The couple that owns the business has several relatives working for the business, all of whom are given access to the specialized equipment. Other employees at the business have made anonymous complaints to the business's HR manager about this situation. They are concerned the lack of access to equipment will negatively affect their performance ratings. Supervisors make these ratings on several performance dimensions, including speed and quality of the transports as well as customer service. The ratings inform promotions and pay raises. Employees are also spreading rumors that the business will begin laying off employees soon and the relatives of the owners will be protected from losing their jobs. All these issues are leading to low employee engagement and morale. The HR manager, who is not related to the owners, needs to address the issues. Which action should the HR manager take to ensure performance ratings are made fairly for all employees during upcoming performance reviews?
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A
Instruct supervisors to consider whether an employee has access to specialized equipment when making ratings.
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B
Advise employees who do not have access to specialized equipment to tell their supervisors how it has affected their performance.
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C
Remove speed and quantity of transports as performance dimensions for employee ratings.
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D
Adjust ratings for employees without specialized equipment to be similar to those of employees with specialized equipment.
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Correct answerA
ExplanationGuiding supervisors to factor in equipment access ensures ratings account for resource differences, promoting equitable and fair evaluations.
Question 75
Single choice
An HR manager wants employees to acquire the skills to respond appropriately to practical situations. Which training style would be most effective?
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D
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Question 76
Single choice
Which of the following represents a ULP during the unionization process?
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A
Enforce no solicitation rules by forbidding distribution of union literature during work hours and in work areas
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B
Discipline a union-supporting employee who violates company policy
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C
Offer bonuses to full-time equivalent employees who are opposed to unionization
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D
Inform employees that they earn higher wages and benefits than nearby employers represented by the union
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Correct answerC
ExplanationEmployers may violate the NLRA if they promise benefits to employees who oppose a union. For example, an employer should not offer a one-time bonus to any employee who votes against a union.Employers cannot do the following during a union campaign: (TIPS) T = ThreatsThreats or coercion are prohibited. I = InterrogationIt is illegal to ask employees about their support of the union or to ask about the alignment of their peers relative to union support. P = PromisesA business cannot interfere in the organizing efforts by promising employees that the company will make things better for them if they vote against the union. S = SurveillanceSpying should be avoided.
Question 77
Single choice
Which of the following statement best describes a major barrier to the successful implementation of human resource strategies?
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A
Misaligned corporate branding strategies and practices
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B
Inconsistencies between corporate strategies and values
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C
Inability to agree upon and implement human resource metrics
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D
Unanticipated competitor opportunities and threats
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Correct answerC
ExplanationNote the term, "implementation" therefore the right answer must be linked to the implementation stage.Implementation is the process that turns strategies and plans into actions in order to accomplish strategic objectives and goals. Implementation is the carrying out, execution, or practice of a plan, a method, or any design, idea, model, specification, standard or policy for doing something.
Question 78
Single choice
A small organization does not have the time or resources to administer benefits, payroll, or personnel records programs. Which flexible staffing alternative is an option for them?
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A
Using in-house temporary employees
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B
Leasing employees from a professional employer organization
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C
Establishing a temp-to-hire program
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D
Hiring independent contractors instead of employees
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Correct answerB
ExplanationIn this staffing alternative, an organization transfers all or substantially all employees to the payroll of an employee leasing firm. The PEO leases the employees back to the organization while handling most of the HR administrative functions.
Question 79
Single choice
Which of the following HR activities should NOT be outsourced?
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A
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B
Creation of online employee manuals
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C
Relocation programs for employees
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D
Development of goals and strategies for improving workforce skills
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Correct answerD
ExplanationGoals and strategies should be managed internally. In several instances, outsourcing is largely restricted to achieving operational efficiencies.
Question 80
Single choice
In which type of HR structure does each part of the organization control its own HR issues?
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A
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B
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C
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D
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Correct answerC
ExplanationThe decentralized HR structure features autonomous HR functions housed in separate business units that operate and make decisions mostly independent of the other units all other headquarter-created policy and strategy.
Question 81
Single choice
A disadvantage to a company's vertical integration aspiration is?
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A
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B
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C
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D
Reduced reliance on suppliers.
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Correct answerC
ExplanationVertical integration occurs when controls more than one stage of the production supply chain. There are four phases of the supply chain: commodities, manufacturing, distribution, and retail. A company vertically integrates when it controls two or more of these stages. A disadvantage to vertical integration is anti-trust regulations such as the Sherman Anti-Trust Act which prohibits business monopolies.
Question 82
Single choice
A car rental company is experiencing high turnover among assistant managers and many new assistant managers are not meeting performance expectations. This is causing the company to lose credibility among its customers. The current selection process for assistant managers involves a phone screen with a thirdparty company. During the phone screen, applicants are asked to talk about their work experience and to describe why they are interested in the position and working for the car rental company. All candidates who meet the minimum qualifications for the position and demonstrate enthusiasm for the role and the company are recommended by the third-party company to the branch manager for an in-person interview. Branch managers interview these candidates and have the freedom to develop and ask their own interview questions. Ultimately, the hiring decision is left to the particular manager 's judgment. Senior leadership asks the HR manager to review the selection procedures and provide recommendations for improving talent management. Senior leadership at the company suggests to the HR manager that the hiring process should be more comprehensive so that candidates' cultural fit with the company can be determined. Based on this input, which action taken by the HR manager would be most effective?
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A
Provide the third-party company and branch manager with interview questions that align with company culture.
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B
Add interviews with other employees at the company before the interview with the branch manager.
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C
Require that multiple branch managers interview candidates before a hiring decision is made.
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D
Include an interview with the HR manager before the interview with the branch manager.
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Correct answerA
ExplanationEquipping both the third-party screeners and branch managers with standardized, culture-aligned questions ensures every candidate is consistently assessed for fit throughout the process.
Question 83
Single choice
Majority of employees in the USA are employed based on the employment at-will doctrine. This means that an employer can terminate an employee at any time for any reason, except an illegal one. A correct assumption on the employment at-will doctrine is?
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A
The employment at-will doctrine does not obtain in several nations.
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B
Negotiations for collective bargaining agreements include employment at-will clauses.
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C
Implied contracts are satisfactory to establish the employment-at-will doctrine.
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D
Globally, a large percentage of employment contracts contain employment at-will clauses.
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Correct answerA
ExplanationEmployment at-will means that an employer or employee can terminate an employee at any time for any reason (except an illegal one) or for no reason without incurring legal liability. Though the USA adopts the employment-at-will doctrine, most countries around the world adopt employment contracts instead this is established before or at the time of hire.Note that implied contracts can invalidate the employment-at-will doctrine in certain instances. An implied contract is one that has not been put into writing but it is implied from the actions and statements of the employer which may lead a reasonable employee to believe that he/she cannot be fired at will, but instead can only be terminated for just cause.
Question 84
Single choice
An OED team wants to better understand the odds that a particular change can be implemented successfully. What tool is designed to support this analysis?
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A
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B
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C
Multi-criteria decision analysis
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D
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Correct answerA
ExplanationForce field analysis is a basic tool for root cause analysis that can help you take action once the root cause has been identified. The technique is based on the assumption that any situation is the result of forces for and against the current state being in equilibrium. It looks at forces that are either driving movement toward a goal or blocking movement toward a goal. It displays and analyses the forces driving movement toward a goal (helping forces) or restraining movement toward the goal (hindering forces). Multi-Criteria Decision Analysis, or MCDA, is a valuable tool that we can apply to many complex decisions. It is most applicable to solving problems that are characterized as a choice among alternatives. Conduct a force field analysis through the following steps: >Brainstorm all possible forces inside and outside the organization that could work for or against the solution. >Assess the strength of each of the forces. >Place the forces in a force field diagram, with the length of each arrow in the diagram proportional to the strength of the force it represents. >For each force, but especially the stronger ones, discuss how to increase the forces for the change and reduce those against it.
Question 85
Single choice
The HR and IT directors meet to discuss plans to purchase an applicant tracking system to support the continued growth of the organization. Which is the first step the directors should take?
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A
Determine the automation needs of the organization.
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B
Ensure scalability to support growth.
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C
Research integration capabilities.
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D
Evaluate any existing recruitment processes.
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Question 86
Single choice
Jane's retirement plan is funded by the employer. She has been promised that she will receive a specific monthly dollar amount at retirement. Her pension benefit is calculated based on a formula where her benefit is equal to 3 percent of her average salary for the last 5 years of employment multiplied by her total years of service. Jane's plan is a ____________
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A
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B
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C
Defined contribution plan
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D
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Correct answerB
ExplanationA Defined Benefit (DB) plan is a retirement plan that is funded by the employer, and promises the employee a specific monthly benefit at retirement. The plan may state this promised benefit as an exact dollar amount, such as $1000 per month at retirement - or it may calculate the employee's benefit through a formula that includes factors such as salary, age, and the number of years worked at the company. In a Defined Benefit (DB) plan, the employee knows beforehand what the retirement benefit will be. In a Defined Contribution (DC) plan, the employee does not know the specific retirement benefit but he/she knows what contributions are being made. In a DC plan, the employee's retirement benefit will be based on contributions, and investment gains/losses.
Question 87
Single choice
The evaluation level of learning characterizes changes in what?
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A
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B
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C
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D
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Correct answerA
ExplanationThe learning level of the Kirkpatrick training evaluation model evaluates how the training has developed the trainees' knowledge, skills, and abilities based on the learning objectives. The reaction level helps to measure how engaged the trainees were, how actively they contributed, and how they reacted to the training. The behavior level helps to understand how well employees applied what they learnt. The results level includes training outcomes which demonstrate a good return on investment (ROI), and improvements in organizational productivity.
Question 88
Single choice
Gwen just completed a training on transformational leadership. What characteristic is considered to be representative of transformational leaders?
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A
rewards and incentives are contingent on performance.
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B
revels and excels in efficiency
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C
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D
favors structured policies and procedures
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Correct answerC
ExplanationTransactional leadership is primarily based on processes and control, and requires a strict management structure. Transformational leadership, on the other hand, focuses on inspiring others to follow (shared vision), and it requires a high degree of coordination, communication, and cooperation.There are four elements of transformational leaders:Idealized influence: Leaders hold, share and demonstrate core values and trust.Inspirational motivation: Leaders motivate workers by conveying confidence and a sense of purpose.Individualized consideration: Leaders are concerned with people's feelings and needs.Intellectual stimulation: Leaders provide opportunities for creativity and innovation and allow people to learn, grow and try new things.
Question 89
Single choice
In a large oil and gas exploration and drilling company, a new department director is hired from another industry and appointed over one of the largest departments in the company. The department director quickly takes a strong interest in altering many of the HR practices in the department. One of the first things the new department director does is insist that all managers in the department be formally dressed each day, with those not adhering to the dress code being put on formal probation. Many of the managers in the department spend much of their day outdoors and the HR manager overseeing HR in the department thinks requiring them to dress formally each day is not practical. The HR manager, who reports to the HR VP, must work with the department director to implement and, as needed, adjust the department director's plans. The department director meets with the HR manager and makes suggestions for the HR strategic plan based on the department director's previous company. The department director insists that the suggestions be implemented. The HR manager knows the ideas will not work at this company. What should the HR manager do?
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A
Explain the reasons why the ideas will not work in this company.
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B
Ask questions to help the department director see the problems with the ideas.
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C
Implement the suggestions exactly as the department director described them.
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D
Consult with the department director's superior to determine the optimal course of action.
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Correct answerB
ExplanationBy asking thoughtful questions, the HR manager encourages the department director to explore how the suggestions fit the company's specific context, fostering buy-in and collaborative problem solving rather than confrontation or unilateral implementation.
Question 90
Single choice
_________ justice is the perceived fairness of process used to determine the distribution of rewards.
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A
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B
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C
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D
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Correct answerD
ExplanationProcedural justice focuses on the fairness of the decision-making or process that leads to these outcomes. Employees perceive procedural justice when they feel they can voice their opinion regarding the process. Employees also believe procedures are fair when they are consistent, accurate, ethical, and lack bias. Note the term "fairness of PROCESS"
Question 91
Single choice
According to the Genetic Information Nondiscrimination Act___________?
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A
an employer is legally culpable if genetic information is obtained inadvertently
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B
employers who self-insure coverage can use genetic information to screen out employees for health benefits under the safe harbor rule
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C
an employer may use genetic information to make an employment decision if it is relevant to an individual's current ability to work
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D
it is not illegal if an employer obtains genetic information accidentally or pursuant to the FMLA
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Correct answerD
ExplanationGenetic Information Nondiscrimination Act of 2008 (GINA) prohibits the use of genetic information in making employment decisions. An employer may not use genetic information to make an employment decision because genetic information is not relevant to an individual's current ability to work. It is also unlawful for employers to request, require, or purchase an applicant's or employee's genetic information. There are a few exceptions to this rule, such as: when an employer gets genetic information inadvertently or pursuant to the FMLA; when an employee receives voluntary health or genetic services that an employer offers; or when an employer acquires genetic information from sources that are "commercially and publicly available," like newspapers, books, and public websites. An employer must keep any genetic information it does acquire about an applicant or employee confidential.
Question 92
Single choice
Which dimensions of organizational structure are critical for an HR professional to consider when embarking on an organizational restructure?
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A
Work specialization, departmentalization, chain of command, span of control, centralization/ decentralization, and formalization
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B
Nature of workforce, economic indicators, competition, technology, business attributes, and country regulations
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C
Business objective, workforce trends, logistics chain, technological infrastructure, cross-cultural communication, and management selection
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D
Organizational strategy, cost minimization, community support, skill availability, technological infrastructure, and political risk factors
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Correct answerA
ExplanationWork specialization, departmentalization, chain of command, span of control, centralization/ decentralization, and formalization are the core structural dimensions that determine how roles, authority, and workflows are organized during a restructure.
Question 93
Single choice
A 500-employee manufacturing company has won a $4 million federal government contract and must produce 100,000 drones over the next three months. Presently, the production department runs three shifts and utilizes 150 skilled workers per shift. Normal production for the company is 80,000 drones per month. The manufacturer must maintain its current production and fulfill the new order. Currently, it has 30,000 drones in inventory. Because the company is a government contractor, it is required to:
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A
Establish a quota system for hiring minority employees
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B
Have a formal affirmative action plan
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C
Allow employees to view the information in their personnel files
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D
Run disparate treatment calculations on all of its selection procedures
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Correct answerB
ExplanationThe OFCCP administers and enforces the EO 11246, Section 503 of the Rehabilitation Act and the Vietnam Era Veterans' Readjustment Assistance Act. These mandates protect workers from discrimination and require companies doing business with the federal government to take certain affirmative steps to ensure equal employment opportunity. If a company has at least 50 employees and a single contract of $50,000 or more, then it must develop an Affirmative Action Program (AAP).
Question 94
Single choice
An organization needs to prioritize disbursements for its risk management initiatives. What would be the appropriate first step?
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A
Identify processes/individuals critical to the organization's delivery of value to stakeholders.
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B
Evaluate the risk management initiatives for effectiveness
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C
Transfer the risk by obtaining employee practices liability insurance
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D
Monitor and manage potential risks in order to reduce the negative impacts
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Correct answerA
ExplanationThe first step in any organization's initiative is need identification.The first step is to identify critical processes/individuals critical to the organization's delivery of value to stakeholders to determine the priorities and where to direct finances. This will help the organization focus its resources in the most effective manner. Identify the Risk this step involves uncovering, recognizing and describing risks that might affect the project or its outcomes.The steps in risk management is identify the risk; analyze the risk, evaluate the risk, risk response planning, monitor and review the risk.
Question 95
Single choice
A car rental company is experiencing high turnover among assistant managers and many new assistant managers are not meeting performance expectations. This is causing the company to lose credibility among its customers. The current selection process for assistant managers involves a phone screen with a thirdparty company. During the phone screen, applicants are asked to talk about their work experience and to describe why they are interested in the position and working for the car rental company. All candidates who meet the minimum qualifications for the position and demonstrate enthusiasm for the role and the company are recommended by the third-party company to the branch manager for an in-person interview. Branch managers interview these candidates and have the freedom to develop and ask their own interview questions. Ultimately, the hiring decision is left to the particular manager 's judgment. Senior leadership asks the HR manager to review the selection procedures and provide recommendations for improving talent management. The HR manager learns that customers' car reservations are incomplete because assistant managers are quitting and no one is taking the initiative to complete the work they had not finished. Which action should the HR manager recommend to branch managers to resolve this?
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A
Hold a team meeting to ask for volunteers who are willing to take on unfinished work when assistant managers leave.
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B
Advise branch managers that they should take on the work left by assistant managers to set an example for the other staff.
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C
Contract with an agency to provide temporary reservation agents when assistant managers leave the organization.
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D
Outline the reservation process with branch managers to define lines of responsibility for the work when assistant managers leave.
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Correct answerD
ExplanationDefining the reservation workflow and delegating specific responsibilities ensures that unfinished tasks are systematically reassigned when an assistant manager departs, maintaining service continuity.
Question 96
Single choice
A CEO is searching for a solution to the increase in health insurance costs. Which benefit should the chief human resource officer suggest to help reduce the high expenses?
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A
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B
Employee assistance programs
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C
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D
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Question 97
Single choice
HR works with the executive leadership team to redesign the company's operational structure. HR brings on an external consultant to determine next steps. What should be the consultant's initial recommendation to HR?
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A
Design a possible solution to the identified problem.
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B
Gain agreement on the initiative's objectives.
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C
Outline the steps necessary to implement the initiative.
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D
Determine if there is money in the budget for the initiative.
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Correct answerB
ExplanationThe initiative's objectives will drive later decisions about budget, the most effective solutions, and necessary steps.
Question 98
Single choice
In one of the warehouses of a retail company, several international employees complain to HR that the warehouse manager has forbidden them from speaking in their native language in the workplace. The HR manager speaks with the warehouse manager, who says there have been several reports that the international employees only interact with each other and they have difficulty conversing with the local employees due to language barriers. The HR manager also learns that the international employees can speak the primary language used in the company well enough to understand instructions from their supervisors. Fortunately, there have been no incidents of safety issues where language has been a barrier between local and international employees. However, senior management believes there is a lack of rapport between local and international employees and instructs the HR manager to resolve the issue. Senior management asks the HR manager to investigate whether other warehouse locations face similar issues between local and international employees. Which approach should the HR manager take to gather the most accurate information?
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A
Request that employees at all warehouse locations take a survey about their relationships with co-workers.
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B
Conduct a virtual focus group with a representative number of warehouse employees across the country.
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C
Review safety incident logs in warehouses with the most diversity in the languages spoken.
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D
Host a meeting for employees to publicly raise concerns about language barriers in the workplace.
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Question 99
Single choice
A global organization has an ongoing problem retaining employees due to high turnover across sites. Executive leadership tasks the HR director with assessing the reasons for high turnover. However, hiring new employees takes precedence; therefore, the assessment identifying the reasons behind turnover was delayed. Upon completion, the assessment reveals that job abandonment, disciplinary terminations, and resigning without notice are the primary issues. Managers are terminating employees consistent with the organization's disciplinary policy for high-severity offenses, but employees who commit low-severity offenses are subjectively and ambiguously terminated without considering opportunities for improvement. Negative perceptions of employee culture have increased as a direct result of the way terminations are being handled, causing tense employee relations and increased job abandonment. The HR director must determine what actions to take regarding the primary issue of turnover, as well as how to address and improve employee perceptions of the organization. Feedback from employees reveals that the delay in completing the assessment made them feel as if management did not see the importance of the employee culture issues. Which action should the HR director take to respond to employee feedback more effectively?
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A
Establish HR procedures for ongoing employee feedback to proactively address issues.
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B
Provide an anonymous submission box at every site for employees to use.
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C
Schedule lunch meetings with executive leaders and diverse groups of employees to promote candid conversations.
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D
Create a team within the HR department dedicated to addressing employee feedback.
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Correct answerA
ExplanationImplementing formal, ongoing feedback procedures demonstrates a sustained commitment to listening and responding to employee concerns promptly, preventing future delays and rebuilding trust.
Question 100
Single choice
Which is an accurate description of an unfair labor practice?
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A
Violation of international labor law by employers
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B
Complaint about a work condition in a unionized workplace
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C
Violation of a country's labor laws by employees, employers, or unions
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D
Work stoppage conducted as secondary support for a separate striking union
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Correct answerC
ExplanationAn unfair labor practice is a violation of a country's (not international) labor laws. The practice can be committed by employees, employers, and unions. A complaint about a work condition is a grievance. A sympathy strike is considered one type of unfair labor practice in many countries; it is not a complete description of the term.
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