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1.An organization will improve its ability to focus on critical business results by:
A. Outsourcing non- core functions
B. Improving the organization's Employer Value Proposition
C. Implementing a flat structure and a comprehensive compensation philosophy
D. Focus strategic implementation on staff functions
Answer: A
Explanation:
An organization will increase its ability to focus on critical business results by outsourcing non- core
functions. NOTE: A line function is one that directly advances an organization in its core work. This
includes production and sales. A staff function supports the organization with specialized advisory and
support functions. For example, human resources, accounting, public relations and the legal department
are considered to be staff functions.
2.Which is the most significant reason that the information technology department is seen as a strategic
partner in an organization?
A. Organizations need accurate reports on which to base decisions
B. Technology contractors execute the organization's business.
C. Information technology provides a competitive advantage for an employer.
D. The department trains other employees and contractors on advanced analytical skills
Answer: C
Explanation:
Information technology fosters innovation in business which results in smarter applications, improved
data storage, faster processing, and wider information distribution. Information technology departments
have also become more strategic because of cyber-security (think of hacking, data breaches).
Competitive advantage is the attribute that allows an organization to outperform its competitors. These
attributes allow the productive entity to generate more sales or superior margins compared to its market
rivals. Good To Know: Michael Porter identified generic strategies "Cost Leadership" (no frills),
"Differentiation" (creating uniquely desirable products and services) and "Focus" (offering a specialized
service in a niche market). He then subdivided the Focus strategy into two parts: "Cost Focus" and
"Differentiation Focus."
3.A new Director has arrived to manage an HR department that became dysfunctional under the previous
director.
What should the new Director do first?
A. Meet individually with all employees and clarify her expectations for their performance and interactions.
B. Assemble the entire department and describe the engagement levels that are required for a functional
department.
C. Talk to members of the department separately to understand the needs of the department.
D. Detail internal customer service metrics and measures to be met by the teams.
Answer: C
Explanation:
The first step is often a needs analysis (what is needed?) while the most important step is often obtaining
senior management's approval. Since the HR director is new to the department, she needs to first learn
about the employees' needs individually, and as a group. She can then provide the type of leadership the
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group needs. It is important to begin with a needs assessment – what is and what should be, determine
the gap between current realities, and desired results before proffering a solution.
4.In a medium-sized organization, HR is responsible for orientation program for all new hires. Surveys
indicate that employees that have gone through the orientation program felt as though the program did
not help them prepare for their new position and it was poorly presented.
Which best describes how HR should attempt to ensure that the orientation program is useful to
employees?
A. Compare the performance of candidates who attended the program to that of candidates who did not
attend the program
B. Employ trained onboarding specialists to ensure the orientation results in highly skilled, experienced
employees
C. Replace the current program with another that has been developed through the ADDIE process.
D. Conduct pilot programs to gather feedback that will be used to revise the orientation program before
officially launching the program.
Answer: D
Explanation:
The best option is to conduct pilot programs before the official launch of the orientation. A pilot test or pilot
program is a small-scale short-term effort where the training is introduced to a small group to provide data
about its feasibility before it is implemented on a large scale.
Running a pilot program lets HR test the training on a small scale to determine if it will be a viable option
for the company; to verify whether the content and design of the program adequately meets objectives,
and to identify if there are better ways for the instructor to present the information. A pilot can also provide
data about the real-world impact of a training, and is used to revise and improve the learning product
before it is rolled out to the entire workforce.
5.An organization with multiple subsidiaries has decided to engage in a robust divestiture exercise by
selling off poor-performing subsidiaries.
What information should the HR leader provide to leadership in this phase?
A. Employee count for the subsidiaries inclusive of current roles and remuneration
B. The feasibility study of the organizational structure and workforce planning of each subsidiary
C. A comparison of the turnover data for the subsidiaries as compared to the organization
D. Recommendations for potential buyers based on HR expertise in the industry
Answer: A
Explanation:
The human resources and economic value of the workforce that has been selected for divestiture is
useful information that HR can provide as the organization is considering target buyers. A total head count
along with the current compensation of each employee will be needed.
6.Just before the strategic planning process begins, the HR manager becomes aware of widespread
discussions between functional managers on how to use the process to advance pet projects.
How should the HR manager ensure that the strategic planning process is successful without it being
abused for personal gain by the functional managers?
A. Focus on organizational core competencies to drive the process.
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B. The functional managers should not be involved in the planning process.
C. Gather evidence-based data on the personal projects the functional managers intend to advance.
D. Advocate for the use of external consultants to drive the strategic planning process.
Answer: A
Explanation:
Ensuring that the strategic planning process is focused on organizational core competencies is the best
answer. By doing this, the organization will focus on its core competencies and not pet projects. A pet
project is an activity or goal pursued as a personal favorite, rather than because it is generally accepted
as necessary or important.
7.Consumers are engaging in a boycott campaign against a global organization whose supply chain has
been discovered to be involved in child labor and human trafficking. Due to the boycott, the organization
has had to begin layoffs over which employees are disgruntled over.
Which risk management tactic is most suitable for the HR manager to take?
A. Have the legal department review the layoff plan to avoid litigation
B. Offer laid-off employees a severance package and outplacement services.
C. Conduct the layoffs and assure employees who remain that the supply chain issue has been rectified
D. Ensure transparency and two-way feedback regarding employee concerns about the supply chain
boycott and impending layoff
Answer: A
Explanation:
Note that litigation is the most serious risk among the options. Risk management refers to the practice of
identifying potential risks in advance, analyzing them and taking precautionary steps to reduce/curb/avoid
the risk. In this case, obtaining legal review helps avoid costly legal compliance issues regarding layoffs.
Conducting the layoff without legal review and without a communications plan opens the organization to
litigation risks. Federal laws to note when considering a layoff include the WARN Act and COBRA.
8.How should Chi-Chi handle a strategy session with business partners from a universalism culture?
A. Be flexible with time and procedures
B. Provide clear directives at the beginning of the session
C. Be comfortable both with ambiguity and pragmatism
D. Be affective, social and focus on building relationships.
Answer: B
Explanation:
In universalism cultures, people place a high importance on laws, rules, values, and obligations - rules
come before relationships. In particularist cultures, people's response to a situation may change, based
on what's happening in the moment, and who's involved.
9.Senior management commitment is critical to a company's diversity and inclusion initiative.
Which information should be included in a business case to gain that commitment?
A. Legal and compliance backlash that the company will face if it does not implement the initiative
B. Benchmarking data on comparable companies that have successfully established similar initiatives
C. A successful implementation of a geocentric strategy is dependent on the achievement of the initiative
D. Detail how the initiative is a critical enabler in achieving the organization's core business goals
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Answer: D
Explanation:
Senior executive commitment to diversity and inclusion initiatives can be obtained if HR can demonstrate
a link between the initiative and the achievement of core business goals. The benefits of broadened
perspectives, diversity of thought, creativity of ideas, and innovation should be detailed linked specifically
to the organization's business and strategic goals.
10.How does a corporate social responsibility (CSR) program impact employee retention?
A. Keeps employees behaviorally engaged in diversity initiatives
B. Increases brand image as an ethical and sustainable organization
C. Allows employees to engage in lateral transfers and job enrichment
D. Improves employee extrinsic reward and morale
Answer: B
Explanation:
CSR impacts an organization's brand image and employee retention level is positively impacted as they
work for an organization that is viewed as ethical and sustainable.
11.An organization has identified several areas in which productivity is not meeting goals. The HR director
is charged with finding a way to help increase productivity in the identified areas. After examining
employee surveys from the underperforming areas, the HR director concludes that management is
performing adequately but teams are still not working together as needed. The HR director also examines
compensation in the area to see if below-average base pay is causing employees to lack motivation, but
she finds that base salaries are competitive in the area.
Which is the best option for the HR director to use to increase productivity?
A. Replace a portion of the underperforming teams with external candidates.
B. Reorganize the department to mix up underperforming teams.
C. Offer group incentive pay based on group performance targets.
D. Offer individual incentive pay based on individual performance targets.
Answer: C
Explanation:
Group incentive pay is the best option. Knowing that the issue does not stem from management
performance or issues with base pay, HR should look to incentivize the groups to perform better together.
Offering individual pay may exacerbate issues with teamwork, as individuals may work against other
members of the team to earn a bonus. Reorganizing or replacing team members are both larger
undertakings that may be less efficient at handling the issues than offering a group incentive.
12.The Drug-Free Workplace Act of 1988 applies to what kind of organization? (choose all that apply)
A. Private organizations receiving federal grants
B. Organizations with federal contracts of at least $100,000
C. Organizations with federal contracts of at least $10,000
D. Private and public organizations with federal contracts subject to OFCCP.
Answer: A,B
Explanation:
The Drug-Free Workplace Act of 1988 applies to any organization receiving a federal grant of any size;
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and any organization that receives a federal contract of $100,000 or more.
Such organizations must; |Prepare and distribute a formal drug-free workplace policy statement.
|Establish a drug-free awareness program. |An employee must notify the employer within five calendar
days if he or she is convicted of a criminal drug violation. |Under the Act, the employer has 10 days to
report that a covered employee has been convicted of criminal drug violation. |Take direct action against
an employee convicted of a workplace drug violation. This action may involve imposing a penalty or
requiring the offender to participate in an appropriate rehabilitation program. |Maintain an ongoing good
faith effort to meet all the requirements of the Drug-free Workplace Act throughout the life of the contract.
13.Based on the organization's new strategic plan, the HR business plan calls for implementing a new
team-building course. The HR function, however, is unable to use internal instructional designers due to
prior project commitments.
What should the HR manager do?
A. Add permanent HR staff
B. Revise the business plan.
C. Rearrange project commitments.
D. Outsource the project
Answer: D
Explanation:
Outsourcing the project would be appropriate in this case, because it will not decrease the function's
expertise, nor will it involve outsourcing a key strategic task. The business plan should support the
organization's strategy, and rearranging or delaying other commitments is not necessary since
outsourcing is a legitimate option. Adding permanent staff for a temporary situation is not appropriate.
14.Jane's retirement plan is funded by the employer. She has been promised that she will receive a
specific monthly dollar amount at retirement. Her pension benefit is calculated based on a formula where
her benefit is equal to 3 percent of her average salary for the last 5 years of employment multiplied by her
total years of service. Jane's plan is a ------A. Rabbi Trust
B. Defined benefit plan
C. Defined contribution plan
D. Qualified plan
Answer: B
Explanation:
A Defined Benefit (DB) plan is a retirement plan that is funded by the employer, and promises the
employee a specific monthly benefit at retirement. The plan may state this promised benefit as an exact
dollar amount, such as $1000 per month at retirement - or it may calculate the employee's benefit through
a formula that includes factors such as salary, age, and the number of years worked at the company.
In a Defined Benefit (DB) plan, the employee knows beforehand what the retirement benefit will be. In a
Defined Contribution (DC) plan, the employee does not know the specific retirement benefit but he/she
knows what contributions are being made.
In a DC plan, the employee's retirement benefit will be based on contributions, and investment
gains/losses.
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15.How does the self-service component of an HRIS shift HR's focus from transactional to
transformational?
A. By shifting benefit profiles and option updates to managers and employees
B. By identifying potential succession management problems before they occur
C. By using the Internet to improve communication across time zones
D. By supporting the use of virtual teams working around the globe
Answer: A
Explanation:
All of these options benefit the organization, but using the self-service option allows managers and
employees to update key information and frees global HR professionals to focus on tasks that add more
value to the organization.
16.An organization's attempts to differentiate its product in the marketplace have failed, and sales are
below projections.
Which of the following changes should be implemented?
A. Cut costs across the board, reduce the price below that of the competition, and depend on volume for
profits.
B. Isolate the differentiating product factors, reduce costs in other areas, and reduce the product's price.
C. Increase the marketing effort to raise awareness of the product's uniqueness and raise the price.
D. Withdraw the product from the market, redesign it to enhance its uniqueness, and reintroduce it at the
same price.
Answer: B
Explanation:
Isolate the differentiating product factors, reduce costs in other areas, and reduce the product's price.
Differentiation strategies focus on setting the product or service apart from its competition by giving it
unique characteristics that consumers value and for which they will be willing to pay a premium price.
Even with a differentiation strategy, an organization has to pay attention to its cost position. In this case,
the cost for uniqueness exceeds what customers are willing to pay. To strike a balance, the organization
will need to reduce costs in all areas not related to the differentiation and may need to reintroduce the
product at a lower price.
17.A small organization has recently doubled the size of its workforce to 150 employees. The HR director
has received approval to purchase an HRIS to help deal with the increase in reporting requirements.
There is an IT expert in-house.
What is the best course of action for this HR director in regard to the purchase and implementation of the
HRIS?
A. Purchase a robust HRIS software package that allows specific information
B. Customize an off-the-shelf HRIS software package.
C. Outsource all HRIS functions, as on-site IT is not available
D. Purchase the HRIS software package after benchmarking with a consultant
Answer: B
Explanation:
Customize an off-the-shelf HRIS software package. Smaller organizations need only the basic information
typically associated with employee status and payroll records. Purchasing a relatively inexpensive
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off-the-shelf software package can provide what is needed for effective HR applications that are easy to
install and use.
18.Which principle of employment at-will affects employers in countries that recognize this employment
right?
A. The employee is not legally bound to any financial liability incurred for abandoning the job
B. The employer is able to recover damages or costs incurred by the departure of an employee.
C. Severance payments must be agreed upon in writing when the employee is first hired.
D. Employers are not required to identify a legitimate business decision for taking adverse action.
Answer: A
Explanation:
When the principle of employment at-will applies, primarily in the U.S., both the employee and the
employer are free to terminate the relationship with no consequences, assuming that no other contracts
or agreements have been made and the termination was legal (in other words, not a case of wrongful
discharge).
19.According to the Genetic Information Nondiscrimination Act-----?
A. an employer is legally culpable if genetic information is obtained inadvertently
B. employers who self-insure coverage can use genetic information to screen out employees for health
benefits under the safe harbor rule
C. an employer may use genetic information to make an employment decision if it is relevant to an
individual's current ability to work
D. it is not illegal if an employer obtains genetic information accidentally or pursuant to the FMLA
Answer: D
Explanation:
Genetic Information Nondiscrimination Act of 2008 (GINA) prohibits the use of genetic information in
making employment decisions. An employer may not use genetic information to make an employment
decision because genetic information is not relevant to an individual's current ability to work. It is also
unlawful for employers to request, require, or purchase an applicant's or employee's genetic information.
There are a few exceptions to this rule, such as: when an employer gets genetic information inadvertently
or pursuant to the FMLA; when an employee receives voluntary health or genetic services that an
employer offers; or when an employer acquires genetic information from sources that are "commercially
and publicly available," like newspapers, books, and public websites. An employer must keep any genetic
information it does acquire about an applicant or employee confidential.
20.An organization is extremely risk-averse, and its technology policies aim at retaining the greatest
degree of physical and legal control.
Which option for acquiring software offers the most control to the organization?
A. Software as a subscription hosted on the public cloud
B. Perpetual license software hosted on private cloud servers.
C. Subscription software hosted on private cloud servers.
D. Proprietary software hosted on the organization's on-site servers
Answer: D
Explanation:
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Proprietary software hosted on the organization's on-site servers. The organization owns proprietary
software outright, and hosting it on site on the organization's own servers allows the organization to
maintain physical and logical security levels to the degree it finds necessary. Risk-averse means
disinclined or reluctant to take risks.
21."Even though there is an over-arching HR strategy, it is debilitating to the company to keep having
independent HR functions in our product units because it is cost-intensive and has led to variations in HR
practices in the organization". The speaker is most likely referring to….?
A. a hybrid HR model
B. a dedicated HR model
C. a decentralized HR model
D. a functional HR model
Answer: C
Explanation:
In a decentralized HR structure, strategy and policies are created by Headquarters HR while HR in the
business units operate and make decisions on HR processes independent of the other units. In this
structure, HR policies and practices differ significantly across locations.
In the Functional HR structure, headquarters HR is staffed with specialists who determine HR strategies
and policies while HR generalists who are located within divisions or business units or locations
implement these strategic policies, adapt them as needed, and are responsible for employee
communication. The Dedicated HR structure allows businesses with multiple business units that have
different strategies to apply HR expertise to each business unit's specific needs. This means the HR
strategy of each business unit is different from the other.
In the Centralized HR structure, HR strategy, policy, administration and decisions are concentrated in a
strong, singular HR department. Policies and practices are the same across business locations, and HR
support and administration adopt a "one size fits all" model.
22.Which benefit is most advantageous when considering a best-of-breed solution compared to an
integrated solution?
A. There is a shorter learning curves for staff because of its specificity
B. Creates customized solutions for different functional areas
C. It is more cost-effective than integrated solutions
D. Provides greater ease of use in data analytics and management
Answer: B
Explanation:
Creating customized solutions for different functional areas is a key benefit of the best-of-breed solution. A
best-of-breed Human Capital Management (HCM) solution strategy is to acquire and deploy systems
offering the best possible capabilities in only one specific HCM functional area e.g. recruitment.
On the other hand, a Unified or Integrated HCM solution strategy is one involving an end-to-end suite
designed to manage the entire life cycle of an employee within one integrated system - it provides a single
system of record for all human capital management needs on a solitary platform. Best-of-breed solutions
offer expertise in a core HR area, offer customized solutions and greater functional capabilities that
address a specific HR functional area.
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23.How can the performance of HR during the due diligence process maximize the success of a merger
or acquisition?
A. HR can ensure that line functions provide reports of the feasibility of the merger and acquisition
B. HR can uncover obstacles that affect agreements and implementation plans.
C. HR can create a merger of compensation and benefit strategies for employee retention.
D. HR can partner with attorneys to review layoff packages for the potential reduction in force
Answer: B
Explanation:
Note that the focus of the question is the merger and acquisition. Ensuring that obstacles (such as
liabilities, claims, pending employment lawsuits) are recognized during due diligence can reduce the
potential problems after the completion of the merger or acquisition.
24.The HR department has determined that 10 new employees will be needed in operations, 7 new
employees in marketing, and 5 new employees in customer service to achieve a company's strategic
goals.
HR is engaged in what workforce analysis process?
A. Gap analysis
B. Supply analysis
C. Demand analysis
D. Strategic workforce needs
Answer: C
Explanation:
Demand analysis involves understanding the future business direction of an organization, what its
workforce needs are, and the number of employees required so it can deliver its goals. It involves
determining the employees the company needs to achieve its objectives. Supply analysis, on the other
hand, has both internal and external components. Internal supply refers to the workforce an organization
already has, whereas external supply refers to potential sources and availability of staff to join an
organization.
25.The Propeller organization rewards innovation, independent thinking, and risk taking. As the market
has matured, management has decided that there is a need to have an increased control over decisions
and outcomes in a bid to increase product quality and reduce error rates. The leaders have informed HR
of this strategy and are counting on its support to ensure a successful implementation.
What is the first step that HR should proffer?
A. Adopt co-sourcing solutions with professional firms to determine the causes behind product errors
B. Explain to the leaders that the new strategy will require changes in structure, policies, processes, and
culture.
C. Implement competency-based hiring and performance management systems in the Research and
Development function.
D. Develop a communication plan that ensures employee alignment, engagement, and retention.
Answer: B
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