SHRM CERTIFIED
PROFESSIONAL Exam
SHRM-CP Questions V8.02
SHRM Certified Professional
Topics - SHRM Certified
Professional
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1.The Valve firm has reviewed its exit interview data and concluded that the greater
number of employees are leaving due to rigid vacation requirements.
Which of the following can be built into the vacation leave program to enhance its
flexibility?
A. increase the number of vacation leave days
B. decrease the advance notice period stipulation
C. determine vacation leave schedules based on longevity with the firm
D. switch from paper-based leave requests to virtual leave requests.
Answer: B
Explanation:
Vacation leave is a voluntary leave program offered to employees. employees are
usually expected to request for vacation leave from their managers.
Where employees must request for vacation weeks or months in advance, may hinder
an employee's ability to take time off for spur of the moment family reasons or other
activities. A decrease in the advance notice period for vacation will give employees
greater flexibility.
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2.Which of the following is a consistent determining factor in union agreements in the
United States?
A. A no-strike clause in which the union agrees that during the life of the contract
employees will not engage in strikes but will submit to a grievance arbitration
provision
B. Union security agreements in the form of union shops and agency shops
C. Seniority systems that give special benefits to members based on the length of
service within which an employee has been a union member working in a union job.
D. Clauses where the employer and union agree to compel employees to join the
union and pay dues
in a bid to eliminate the "free rider" problem
Answer: C
Explanation:
A consistent determining factor in union agreements in the USA is seniority where
collective bargaining agreements base employee benefits, promotions, and raises on
seniority. Note that right-to-work states prohibit union security agreements that require
an employee to join a union or pay union dues.
3.A software company is opening a manufacturing facility in China. Some U.S.
management and key personnel will be transferred; however, most new employees
will be hired in China. Company executives want more information about the Chinese
workforce, including a workforce evaluation of the employment market in China.
What first step should be accomplished as soon as possible?
A. Conducting a supply analysis of available employees.
B. Identifying flexible staffing arrangements available in China.
C. Establishing replacement and succession plans for the new facility.
D. Creating a talent acquisition strategy to recruit proficient talent.
Answer: A
Explanation:
Evaluating the current supply of U.S. workers and Chinese workers will help to
identify the skillsets required and how many workers from each country will be
needed. Note that in workforce planning, supply analysis comes first, then a demand
analysis, then the gap analysis, and finally the solution analysis.
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4.A hybrid multinational consumer goods corporation operates 8 strategic business
units which are fully-functional units with their own vision, direction, product/service,
location, and target market under the umbrella of the larger business entity. The
corporation has a corporate HR department while the SBUs each have autonomous
HR departments that are largely independent from corporate HR. The Head of HR of
each SBUs has significant authority to operate in a polycentric fashion and only
interact with the Head of Corporate HR on a quarterly basis.
Due to a significant reduction in revenue during the pandemic, the organization has
made a decision to streamline its HR structure by adopting a more centralized HR
structure that can provide HR services to corporate and the SBUs. The proposed
centralization of the HR function is expected to result in cost reduction, consistency in
HR operations, and increased HR proficiency.
Corporate HR has created a team comprising of HR managers, HR business partners
and HR admin personnel to originate and implement the new HR services model.
Anna is a HR manager from a strategic business unit in California that has been
drafted to join the team. Anna has 8 years of cognate HR experience working with
various SBUs in the organization. Anna is the only team member who has worked
with an SBU, the rest of the team have only corporate HR experience. The team has
been working for over 3 weeks reviewing the feasibility, advantages and
disadvantages of several HR structures, with most team members favoring a shared
services and center of excellence model.
One of the team members anticipates resistance from employees when the
announcement of a change in the organization's HR structure is made. Anna agrees
and states that the change may lead to apprehension and stress among SBU staff.
What is the best tactic the team should adopt to ensure a smooth acceptance by
employees?
A. Develop a business case that details the cost-benefit analysis, timeline, risks and
justification for adopting the preferred HR structure model.
B. Encourage employees to supply feedback on the pros and cons of the newly
implemented HR structure versus the old HR structure.
C. Develop a communication plan outlining the team's purpose, rationale for change,
and a summary of its goals.
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D. Proactively communicate to employees on the variety of HR structures and best
practice models
adopted in comparative organizations.
Answer: C
Explanation:
A communication plan outlines the information the team delivers to employees to help
them understand why the change is being made and how it will affect them. These
include: communicating what the change will mean for the organization and why it is
necessary, and outlining the goals of the change. Option B is wrong because
communication should begin before the implementation stage (Note the word "newly
implemented"). Note that communication is at the core of all successful change
initiatives C but it has to be communication that is relevant to the issue at hand.
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5.Racha is the CHRO of a multinational conglomerate whose primary role is
transforming the HR division to a strategic, solution-driven division.
Which of the following is a part of the CHRO's role in influencing business results;
A. Business-driven people administration, and risk mitigation with a strong focus on
regulatory
B. compliance
C. Tie recommendations, people programs, and recognition to the tactical goals of the
business
D. Develop HR analytics and metrics to primarily drive transactional business value
and operational success
E. Link people initiatives to drive business results and engage other leaders to
achieve high-level documented corporate goals.
Answer: E
Explanation:
Remember strategy is high-level, organization-wide and engaged in primarily by
executive leadership. It is not tactical, business-unit, transactional, administrative or
compliance-driven. There is a cascade from top-level strategic goals, to the mid-level
tactical goals, to lower level action plans.
6.Mandy consults with organizations to determine the most suitable structure for a
company to adopt based on a variety of factors and the peculiarities of each
organization's operations.
Which of the following general principles of Mandy's job is accurate?
A. A strong matrix organization is ideal for an organization that primarily engages in
complex large-scale projects and requires flexibility of transferring talent, lateral
promotions and shared resources, and minimal functional roles
B. There is the least chance of conflict in a balanced matrix organization where the
project manager has moderate authority levels in both projects and functions.
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C. Communication is most difficult in functional organizations due to unclear
delineation of authority among the functions
D. A strong matrix organization is most similar to a functional organization because
the project manager is a coordinator while the functional manager controls the project
budget.
Answer: A
Explanation:
In the strong matrix or project matrix organization structure, the project manager has
most of the power, resources and control over the duties while the functional manager
is only there to provide support, and technical expertise. In a balanced matrix
organizations, power and authority are distributed between the functional managers
and the project managers. The functional organization has clear delineation of
authority among the functions. Option is D is wrong because it is a weak matrix
organization that is most similar to a functional organization.
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7.A non-union software design corporation does an annual continuous improvement
drive to determine employee engagement levels. The corporation has noted that
context offered by external benchmarks has increased the effectiveness of the drive
and its impact on organizational success. The most appropriate method of engaging
in this drive is;
A. Gain engagement data via skip-level interviews
B. Gain engagement data via 360 degree critical incidents
C. Gain engagement data via surveys
D. Gain engagement data via management and employee committees
Answer: C
Explanation:
As the organization will be engaging in external benchmarks from the engagement
data, a survey is the most appropriate tool to obtain data that can be used for external
comparisons.
8.Environmental scanning is most effective when;
A. It emphasizes forecasting and anticipates the future rather than describing current
conditions
B. It engages purely in data collection and statistics of demographic, economic and
political indicators that affect operations
C. It is a one-time activity carried out at the initial stage of strategic planning to gather
information on internal, external trends and events that impact an organization's
competitiveness
D. It obtains and analyzes the interaction of events, trends and costs that impact
human capital and deployment
Answer: A
Explanation:
One of the key elements of the strategic planning process in an organization is
environmental scanning (ES). ES is most effective when participants focus on
forecasting the future, and identifying signals that impact an organization's strategy
through data collection and analysis from various sources; internal and external. ES is
not purely data collection, neither does it focus on operations. ES is also not a onetime activity but an ongoing process. ES does not focus on human capital alone but is
a strategic activity that obtains information in all areas that can impact an
organization's strategy.
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9.Kia, a senior HR professional was questioned by senior management on the
rationale behind a 20% budgetary increase in employee training and professional
development activities. The most important reason Kia can supply to ensure senior
management's backing of the increase is;
A. An employee survey indicates that customer complaints is due to insufficient
training
B. Use metrics to indicate a positive correlation between professional development
initiatives and achievement of corporate goals
C. Provide statistics that indicate reduced costs in recruitment and turnover and an
increase in employee engagement and morale
D. Use Kirkpatrick's summative evaluation level of learning to indicate improvements
in employee
KSAs and expertise
Answer: B
Explanation:
Positive correlation is a relationship between two variables in which they both move in
the same direction
C when one variable decreases, the other variable decreases, or when one variable
increases, the other increases. For Kia to sway senior management to approve the
increase, she must use metrics to indicate that corporate or strategic goals stand a
higher chance of being achieved when a greater investment is made in employee
training and professional development initiatives. Note that senior management has a
primarily strategic focus.
10.How can data analytics be used to improve employee recruitment and retention?
A. Analyzing and extracting valuable insights to predict employee preferences and
align HR practices with the same.
B. Benchmarking and aligning compensation and benefits with sustainability and
shared value strategy.
C. Encrypting employee data against technology breaches and cyberattacks.
D. Providing a centralized database that stores applicant tracking information,
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onboarding, and
employee demographics.
Answer: A
Explanation:
The chief aim of data analytics is to apply statistical analysis and technologies on data
to find trends, predict patterns, and solve problems.
Data analytics has become increasingly important in the enterprise as a means for
analyzing and shaping business processes and improving decision-making and
business results.
Data analytics allows HR to make decisions based on data and not on gut feeling,
create a business case for Human Resource interventions and become more tactical.
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11.Which of the following organizations operates a corporate strategy of
differentiation?
A. A chain of retail stores sells in bulk and offers discounts to only its loyal customers.
B. The finished product of a company is run through the Six Sigma process to ensure
customer satisfaction.
C. A company develops a premium product that is distinctively adaptive to weather
changes.
D. A firm spends considerable money on print and television advertising to attract toptier customers.
Answer: C
Explanation:
Michael Porter developed the phrase Generic Competitive Strategies. This is
composed of three generic strategies, which are, cost leadership, differentiation, and
focus.
A company may choose to lower costs or differentiate based on what is important to
their customers to demand higher prices on products or focus by offering products to
a select segment of their target market.
Differentiation focuses on setting a product or service apart by giving it unique
features that consumers value and for which they will pay a higher price for higher
value. Six Sigma is a set of methods and tools for process improvement by
eliminating errors.
12.A review of the organization's cash flow statement shows the cash outflow has
increased over the previous year.
Which action should HR take in response to this metric?
A. Reduce recruiting and selection levels immediately
B. Postpone any resource-intensive projects.
C. Prepare for a downsizing exercise.
D. Purchase resources for strategic onboarding.
Answer: B
Explanation:
Cash outflow describes any money leaving a business. The opposite of cash outflow
is cash inflow, which refers to the money coming into a business.
A declining cash flow indicates that resources are scarce, and are not readily
available to fund additional projects or initiatives.
This may not necessarily require an immediate decrease in recruitment, as this can
create more problems by causing revenue to plummet.
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13.What is the indispensable notion behind the stakeholder theory?
A. A business has interconnected relationships that accounts for complex interests
that impact and are impacted by the business.
B. A firm is required to share its implicit and explicit value with its employees,
suppliers, and local communities.
C. A business must first reach a maturity stage in profits and then embark on
initiatives that will benefit people and planet.
D. Stakeholders must receive tangible financial value based on company's net worth
and its corporate
social responsibility strategy.
Answer: A
Explanation:
The stakeholder concept proposes that any organization operates within a
multifaceted environment, in which it impacts and is impacted by a variety of interests,
called stakeholders, who all share in the value of the organization, and its initiatives.
Shareholder theory or Friedman doctrine, on the other hand, is the view that the only
duty of a corporation is to maximize the profits accruing to its shareholders.
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14.Environmental scanning should be used to?
A. Provide overall direction to an enterprise, specify the organization's objectives, and
develop policies and plans to achieve those objectives.
B. Estimate a feedback loop to monitor execution and to inform the next round of
strategy evaluation.
C. Identify local, national, and international competitive forces that could impact the
organization's strategy and tactics.
D. Improve efficiency and control costs within the boundaries set by the organization's
strategic plan.
Answer: C
Explanation:
Environmental scanning is the ongoing tracking of trends and occurrences in an
organization's internal and external environment that bear on its success, currently
and in the future.
Environmental scanning is the process of gathering information about events and
their relationships
within an organization's internal and external environments. The basic purpose of
environmental scanning is to help determine the future direction of the organization.
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15.The HR president of a civil engineering firm, has noticed an unusually high number
of turnover by the mid-level civil engineers. In her research and analysis, she has
found that the engineers are leaving to rival organizations for parallel pay and benefit.
What do you advise the HR President to do?
A. Engage in recruitment and selection to hire the needed number of civil engineers
and counterbalance the high turnover rate.
B. Determine the reasons for the civil engineers leaving by benchmarking
compensation and utilizing HR dashboards.
C. Determine how areas of company culture such as management style, internal
communication are perceived by employees.
D. Specifically hire civil engineers that have long-term and stable employment history
with a
conservative career pattern.
Answer: C
Explanation:
More often than not, compensation and culture are two possible culprits behind a high
turnover rate in an organization.
The HR president has already done a compensation analysis that shows the rival
companies have similar pay and benefits, therefore there is no need for an additional
pay analysis.
The company culture should be analyzed to determine areas that may be responsible
for the high turnover rate.
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16.The HR department at the Reality company has asked a HR professional to
evaluate the compensation and benefits programs in order to identify variable pay
options. However, there is resistance from some members of the leadership because
of increased bureaucracy and lack of agility.
The Reality company is most likely at what stage in the organization life cycle?
A. decline
B. maturity
C. growth
D. startup
Answer: B
Explanation:
Companies in the maturity phase of the organization's life cycle are hindered by highly
developed policies, procedures, and rules when trying to enhance programs or
respond to change.
Companies in decline are also characterized by bureaucracy but are most likely
eliminating programs rather than creating them.
Companies in the growth stage are in the process of developing more structure to
manage rapid growth factors, and startups are not usually in a financial position to
offer enhanced compensation and benefits.
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17.The company you work for has discussed an international business strategy that
would expand it into North Asia.
Which of the following actions would you first take to help the company develop its
strategic plan?
A. Analyze the international compensation strategies of companies and compliance
requirements in the region.
B. Conduct an extensive analysis of the business environment for threats and
opportunities.
C. Determine and appoint culturally-intelligent leadership that have had extensive
experience both in the home and host countries.
D. Determine the strategic goals, objectives, tactics, and action plans for business
success.
Answer: B
Explanation:
Environmental scanning is the ongoing tracking of trends and occurrences in an
organization's internal and external environment that bear on its success, currently
and in the future.
The results are extremely useful in shaping goals and strategies. An environmental
scan is an activity that takes place before a global strategy is developed.
Analyzing threats and opportunities in the region will help direct decisions about how
to best create a successful strategic plan, utilize resources for business success,
minimize threats and enable the company take ample advantage of opportunities.
18.After conducting a thorough HR audit, the Shroud organization has identified
several vulnerabilities in its HR systems, procedures and practices.
Which of the following is the most accurate example of risk mitigation that the Shroud
organization may choose to utilize?
A. Implementing an emergency alert system for expatriates working in a volatile
region
B. Requiring that all qualified candidates undergo a drug test, reference checks, and
background checks
C. Training management on job-specific appropriate questions to ask during
recruitment interviews
D. Requiring inoculation programs for expatriates before they travel for job
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assignments to countries
with significant health risks.
Answer: A
Explanation:
Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a
business. It involves taking action to reduce exposure to potential risks. Risk
mitigation seeks to reduce (not prevent) the negative impact of a risk such as an
emergency alert system for expatriates C this will not prevent a crisis, but it will
reduce the expatriate's exposure to threats and decrease the effect of stress from
such risks. Note that the other options seek to prevent (not reduce) the likelihood of
the risk happening.
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19.The HR Manager of a clothing company has recently been tasked with creating the
organization's sustainability strategy.
In what way can she use the information contained in the corporate social
responsibility (CSR) and sustainability reports of other comparative companies?
A. Adopt the corporate social responsibility and shared value objectives, practices,
and metrics that have succeeded for comparative companies.
B. Ensure that the strategy being created is not similar to those of comparative
companies.
C. Implement the sustainability and CSR reports of the comparative companies to
gain a competitive advantage for the clothing company.
D. Adjust CSR general principles and guidelines to the organization's sustainability
strategic focus.
Answer: D
Explanation:
The appropriate starting point for developing and implementing a CSR strategy is
gaining a clear perspective on CSR and sustainability initiatives, as well as reviewing
the CSR reports of other companies. The organization must then adjust and adapt
general CSR reports and guidelines to fit its areas of interest and align the reports to
its own strategic goals. Note that adopting and implementing the CSR strategy of
other companies is wrong because it does not take into consideration the distinct
peculiarities of different organizations.
20.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?
A. The employment at-will doctrine does not obtain in several nations.
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.
D. Globally, a large percentage of employment contracts contain employment at-will
clauses.
Answer: A
Explanation:
Employment 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 C 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.
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21.Which HR task is typically required by a multidomestic corporation?
A. Facilitating knowledge exchange throughout the organization
B. Building a common corporate culture across all operations and management.
C. Coordinating HR activities between headquarters and the international offices
D. Tight administrative control on global operations to maintain standardization
Answer: C
Explanation:
A multidomestic strategy is a strategy by which companies try to achieve maximum
local responsiveness by customizing both their product offering and marketing
strategy to match different national/local conditions. In a multidomestic corporation,
the headquarters is in the home country, but the subsidiaries have greater autonomy
to make decisions. Foreign subsidiaries of multinational corporations in multidomestic industries are relatively independent from the headquarters. At this stage,
HR is involved in coordinating HR activities with the goal of consistency with core HR
standards while remaining flexible with local laws and cultures.
22.How can HR minimize the risk of failure of an organization's diversity initiative?
A. Emphasize visible diversity traits over invisible diversity traits
B. Making management diversity training mandatory
C. Implementing pay-for-performance reward systems based on compliance with
diversity directives
D. Integrating diversity initiatives into the business culture
Answer: D
Explanation:
In order for a diversity initiative to succeed, an organization must embrace diversity
and integrate the varied lifestyles, beliefs, and needs of its diverse workforce into its
business culture.
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23.Which is a good practice for implementing a code of conduct?
A. Review the code of conduct of organizations of similar size as a guide for the
content of the company's code of conduct.
B. Treat the code of conduct as a living document, and revise it frequently, as
needed.
C. Interact with members of the organization to discuss ethical challenges and
compliance requirements.
D. Utilize the organization's statement of values as the basis for establishing the
components of the
code of conduct.
Answer: C
Explanation:
Note that "implementation" is different from "creation". Because a code of conduct
must address the risks and compliance requirements specific to an organization, it is
good practice to include discussions with a broad representation of the organization's
members before drafting a code. While the organization's values are considered in
drafting the code, they are not the basis of the code. While the code must be
reviewed regularly, constantly revising it can lead to employees' not knowing the
ethical mandates.
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24.In a bid to promote integrity among their employees and gain trust from key
stakeholders, the Hophni organization is interested in beginning the process of
creating an ethical environment.
Who has the most impact on the success of this process?
A. Primary stakeholders
B. Organization's employees
C. Organization's leaders
D. Organization's customers and vendors
Answer: C
Explanation:
The process of creating an ethical environment must begin with the organization's
leaders. It must receive continuous reinforcement from leadership at all levels in order
to be succeed.
25.Angst organization just completed its strategic planning process successfully.
Which of the following actions would the Angst organization have taken during the
strategy formulation phase?
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A. Preparing budgets for forecasted projects
B. Conducting feedback focus groups
C. Creating an effective organizational structure
D. Deciding on the organization's mission
Answer: D
Explanation:
While all of these actions play a role in strategic planning, they do not all take place
during strategy formulation, which is the first phase of the strategic planning process.
This phase of the process is dedicated to the development of a mission statement,
vision, and values, which guide the rest of the strategic planning process and the
activities to come. The remaining activities take place in the development,
implementation, and evaluation phases. Strategy Planning Process includes;
Strategy Formulation (gather and analyze internal/external info-development of
mission, vision and values)
Strategy Development (of strategic goals, and tactics-strategic plan)
Strategy Implementation (of tactics, action plan-process of strategic management)
Strategy Evaluation (of results, both continually & at designated intervals)
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26.Toop organization requires employees to operate machinery, drive, work with
customers, and conduct some form of manual labor. The organization commonly
requires drug testing of its applicants for the safety of everyone involved in these
activities. Recently, the Toop organization has decided to also incorporate a random
drug testing program for all current employees.
What should the organization do prior to implementing the program and testing
employees?
A. Verify that the proposed program complies with applicable local, state, and federal
laws.
B. Involve shop-floor employees in determining the random selection of employees
that will be tested to avoid managerial bias and subjectivity.
C. Ensure all employees sign legal documentation ascertaining they choose to
voluntarily participate in the program.
D. Have all employees sign arbitration agreements to settle disputes over failed drug
tests and
possible termination.
Answer: A
Explanation:
The organization must ensure that the testing program complies with all applicable
federal, local, and state laws. Depending on the applicable laws, the organization may
need to establish a policy on the basis on which the random drug test will be
conducted and determine if it will collect documentation from employees indicating
their willingness to participate in the program.
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27.The Terrain company has introduced the role of a Chief Compliance Officer (CCO)
and is at a loss on how to compensate this role fairly. The HR manager has compiled
a couple of metrics that may help solve this problem. However, the HR Director has
instructed the HR manager to specifically find out how the compa-ratio metric can be
used to determine compensation within the company.
Which of the following applies in response to the HR Director's request?
A. compa-ratio is used to measure internal compensation practices against external
benchmarks.
B. compa-ratio is used to identify areas of inequity between traditional salary grade
levels.
C. compa-ratio is used to calculate what merit pay increases should be given to
outstanding or longest-tenured employees company-wide.
D. compa-ratio is used to determine the extent to which an employee's remuneration
is consistent with
the company's pay policies.
Answer: A
Explanation:
A compa-ratio is one of the most common metrics for pay. Simply stated, a comparatio compares an individual employee's salary to the midpoint of a given salary
range. Compa-ratio is used to determine the competitiveness of pay. Since it is used
to determine the degree of pay to the midpoint or "market rate", it is helpful to
compare "internal and external" benchmarks.
With compa-ratio, HR compares what the company is paying for a job, versus what
other companies are paying to ensure the pay is competitive.
The "midpoint/market rate" is the average pay of all companies, so in order to
determine if pay is competitive or equitable to the competition, HR uses compa-ratio
to compare a job's pay to the "mid-point/market rate".
Note that companies do not break down pay policies to include metrics such as
compa-ratio.
28.A car sales company has approximately 700 sales employees and 200
administrative employees who perform the tasks of checking stock availability,
processing deliveries, sending out invoices, and maintaining records and databases.
During and after the pandemic, the company has suffered a 45% loss of profit and
revenue due to poor sales. In a bid to stay afloat, the sales manager has laid off the
entire administrative team and 100 sales employees who were the least performers
last quarter. The remaining 600 sales employees are required to take on
administrative tasks, as well as a 20% reduction in base pay and a 20% increase in
commissions from car sales.
The HR manager has been told by an employee in the sales department that he is
leaving because of the additional workload which has distracted him from making
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sales and has reduced his commission-based pay. The HR manager is concerned
that employee satisfaction levels have fallen drastically due to the increased tasks
and unfavorable compensation model. She believes several sales employees are
planning to leave the organization which will further reduce the organization's
revenue.
The HR manager decides to share these apprehensions with the sales manager. The
HR manager shares that there is a real possibility of high turnover amongst the sales
employees which will result in loss of trained talent, corporate know-how and revenue.
The sales manager refutes this claim and states that there is a necessity to weed out
employees who do not pull their weight and have been relying on the certainty of their
base pay as opposed to generating sales. The sales manager notes that the worst
performing employees are those who complain and are welcome to leave.
Furthermore, the sales manager shares that laying off the administrative employees
and increasing
commission-based percentage of pay has improved the company's financial condition
and encouraged the sales employees to have a line of sight between their tasks and
the company' productivity. The sales manager states that the HR manager should not
bother about baseless complaints but revise the job descriptions of the sales position
to include the administrative tasks so as to recruit new employees who are
comfortable with the workload of the role.
What is the most effective method for the HR manager to evaluate the efficacy of the
new compensation model to increase sales?
A. Recommend that the new compensation model be utilized for at least a year before
its effectiveness in increasing sales can be measured and analyzed.
B. Analyze and research documents and information on best practices to determine if
the compensation model has been effective in similar organizations.
C. Carry out an employee satisfaction survey of the sales employees to determine
their views about the compensation model and its efficacy in driving sales.
D. Benchmark the compensation model against that of notable competitors in the car
sales industry.
Answer: B
Explanation:
Because the compensation model is relatively new, HR has to determine its efficacy
based on research conducted in other organizations. Note that employee satisfaction
survey does not correlate with effectiveness of the compensation model.
Benchmarking will provide a comparison but not necessarily the effectiveness in
terms of sales. Rather than advocate for a one-year delay, existing research and
documents can be analyzed to determine the efficacy of the compensation model.
29.A car sales company has approximately 700 sales employees and 200
administrative employees who perform the tasks of checking stock availability,
processing deliveries, sending out invoices, and maintaining records and databases.
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During and after the pandemic, the company has suffered a 45% loss of profit and
revenue due to poor sales. In a bid to stay afloat, the sales manager has laid off the
entire administrative team and 100 sales employees who were the least performers
last quarter. The remaining 600 sales employees are required to take on
administrative tasks, as well as a 20% reduction in base pay and a 20% increase in
commissions from car sales.
The HR manager has been told by an employee in the sales department that he is
leaving because of the additional workload which has distracted him from making
sales and has reduced his commission-based pay. The HR manager is concerned
that employee satisfaction levels have fallen drastically due to the increased tasks
and unfavorable compensation model. She believes several sales employees are
planning to leave the organization which will further reduce the organization's
revenue.
The HR manager decides to share these apprehensions with the sales manager. The
HR manager shares that there is a real possibility of high turnover amongst the sales
employees which will result in loss of trained talent, corporate know-how and revenue.
The sales manager refutes this claim and states that there is a necessity to weed out
employees who do not pull their weight and have been relying on the certainty of their
base pay as opposed to generating sales. The sales manager notes that the worst
performing employees are those who complain and are welcome to leave.
Furthermore, the sales manager shares that laying off the administrative employees
and increasing commission-based percentage of pay has improved the company's
financial condition and encouraged the sales employees to have a line of sight
between their tasks and the company' productivity. The sales manager states that the
HR manager should not bother about baseless complaints but revise the job
descriptions of the sales position to include the administrative tasks so as to recruit
new employees who are comfortable with the workload of the role.
Which approach is most effective for the HR manager to use to resolve her difference
of opinion with the sales manager?
A. agree with the new commission-based pay but advise that low cost and low skilled
temporary staff be hired to carry out the administrative tasks which will enable the
sales employees focus exclusively on sales and increase company revenue.
B. inform the employees that the sales manager has the final say over the department
and suggest they create an employee resource group for a collective concerted
avenue to share their issues with management.
C. propose that focus groups and exit interviews be conducted by HR to determine if
and why the sales employees are dissatisfied with new work and compensation
model.
D. Utilize a business case to inform senior management of her concerns over the
increased turnover
rate in the sales department and its impact on company revenue.
Answer: C
Explanation:
Note that the first thing to do is ascertain the reasons for the issues. The first thing the
HR manager needs to do is determine if employee satisfaction levels have dropped
and if this is due to the new work model and compensation model. Remember, HR
must first ascertain opinions through valid metrics (focus groups and interviews)
before creating or implementing solutions.
Note that it is inappropriate for HR to encourage employees to take collective action
against the company and its management. Also, reporting the issue to senior
management does not address the issue directly with the sales manager. Hiring temp
staff incurs additional costs to a problem that the underlying issues have not been
determined.
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30.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?
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.
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.
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.
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.
Answer: C
Explanation:
The 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 C 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.
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31.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 effectively address the employee's
reason for reporting the issue anonymously?
A. Share reports with employees via email, detailing workplace investigations that HR
has conducted through the aid of employees who reported unethical practices and
received executive-level commendation.
B. Communicate at the next employee townhall meeting about the company's
policies, procedures and options that encourage and safeguard employees who
report workplace issues and unethical concerns.
C. Send an email to all employees stating the impartial role of HR in workplace
investigations and confirm that all whistleblowers can safely report issues to HR
without fear of retaliation.
D. Ask the CEO to share at the next townhall meeting the options employees have to
report unethical concerns by using sanitized case studies to demonstrate and clarify
the types of misconduct that the
company would expect to be reported.
Answer: B
Explanation:
The company's options, policies, and procedures for reporting ethical and workplace
concerns should be continuously communicated and reinforced. Note that a townhall
meeting affords employees the opportunity to ask questions and clarify opinions.
Emails are not an effective way to encourage feedback from employees on issues
that involve employee hesitancy to be identified with a workplace complaint. Clarifying
the types of misconduct that should be reported does not encourage employees to
report workplace issues.
32.The HR director and the CEO of an e-commerce company with 330 employees
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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?
A. Involve an independent external firm to discuss compliance issues with senior
executives and provide training on reprisal-free ethical reporting.
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.
Answer: C
Explanation:
Consistent 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.
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33.The Receptacle organization has lost its overall market share by 13% because its
customer satisfaction levels has deteriorated over the last 7 months. The Chief
Executive Officer (CEO) speaks to the Chief Human Resource Officer (CHRO) about
receiving anonymous emails of dysfunction in the customer service department. The
CEO asks the CHRO to determine why the department is performing poorly, and if the
Head of Customer Service (HCS) is able to lead the team effectively. The CEO states
that the rising levels of customer complaints of poor service must be handled urgently
and decisively.
The CHRO schedules a meeting with the HCS. The HCS was a top performer as an
employee for 4 years and was recently promoted to lead the department. During the
meeting, the HCS admits that he is facing significant employee relations problems. He
states that certain employees are given preferential treatment by the CEO based on
familial ties and these employees cannot be controlled. He is at a loss on what to do
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about these "problem" employees because they have access to the CEO based on
family ties.
Staff in the department respond to an average of 3 calls per hour while the industry
standard average is 7 calls per hour. The HCS states that he is desperate for help
and is open to any solutions that the CHRO can offer. The CHRO finds that the
department is not staffed at full capacity and though the vacant positions have been
posted in-house, employees are not keen on applying for the roles based on rumors
of poor employee relations, bias, chaotic systems and controls.
Based on the CHRO's discussion with the HCS, what feedback should the CHRO
give to the CEO?
A. Advise the CEO that the HCS should be replaced with a more efficient manager as
he performs better in operations than in people management.
B. Communicate to the CEO the problems shared by the HCS and proffer a solution
that can resolve the department's problems.
C. Implement a comprehensive solution to the problems in the department, then
report to the CEO on the challenges and the solutions.
D. Organize a meeting between the HCS and the CEO for direct communication on
the employee relations and productivity problems.
Answer: B
Explanation:
Remember that the CEO has specifically asked the CHRO to investigate and
determine a solution to the problems in the department. Therefore, the CHRO is to
supply a candid response and proffer possible solutions to the HCS request for
assistance.
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34.The Receptacle organization has lost its overall market share by 13% because its
customer satisfaction levels has deteriorated over the last 7 months. The Chief
Executive Officer (CEO) speaks to the Chief Human Resource Officer (CHRO) about
receiving anonymous emails of dysfunction in the customer service department. The
CEO asks the CHRO to determine why the department is performing poorly, and if the
Head of Customer Service (HCS) is able to lead the team effectively. The CEO states
that the rising levels of customer complaints of poor service must be handled urgently
and decisively.
The CHRO schedules a meeting with the HCS. The HCS was a top performer as an
employee for 4 years and was recently promoted to lead the department. During the
meeting, the HCS admits that he is facing significant employee relations problems. He
states that certain employees are given preferential treatment by the CEO based on
familial ties and these employees cannot be controlled. He is at a loss on what to do
about these "problem" employees because they have access to the CEO based on
family ties.
Staff in the department respond to an average of 3 calls per hour while the industry
standard average is 7 calls per hour. The HCS states that he is desperate for help
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and is open to any solutions that the CHRO can offer. The CHRO finds that the
department is not staffed at full capacity and though the vacant positions have been
posted in-house, employees are not keen on applying for the roles based on rumors
of poor employee relations, bias, chaotic systems and controls.
How can the CHRO help the HCS handle the problems he is facing with the "problem
employees"?
A. Develop and implement policies and procedures on anti-nepotism specifically for
the customer service department.
B. Provide anonymous channels through which employees and supervisors can voice
their concern on nepotism to company stakeholders.
C. Create a corporate focus group to identify the problem employees, discuss
nepotism concerns, and pinpoint productivity problems.
D. Discuss with the CEO on solutions to the nepotism concerns and provide the HCS
with coaching
resources on employee relations.
Answer: D
Explanation:
HR functions as a personnel management expert by communicating with the CEO on
nepotism concerns, and providing coaching resources for the HCS on employee
relations - to aid him in productively handling the problems in the department.
Note that policies should apply to the entire organization and not just the customer
service function.
The correct answer here is finding a solution, not identifying a known problem.
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35.The Receptacle organization has lost its overall market share by 13% because its
customer satisfaction levels has deteriorated over the last 7 months. The Chief
Executive Officer (CEO) speaks to the Chief
Human Resource Officer (CHRO) about receiving anonymous emails of dysfunction
in the customer service department. The CEO asks the CHRO to determine why the
department is performing poorly, and if the Head of Customer Service (HCS) is able
to lead the team effectively. The CEO states that the rising levels of customer
complaints of poor service must be handled urgently and decisively.
The CHRO schedules a meeting with the HCS. The HCS was a top performer as an
employee for 4 years and was recently promoted to lead the department. During the
meeting, the HCS admits that he is facing significant employee relations problems. He
states that certain employees are given preferential treatment by the CEO based on
familial ties and these employees cannot be controlled. He is at a loss on what to do
about these "problem" employees because they have access to the CEO based on
family ties.
Staff in the department respond to an average of 3 calls per hour while the industry
standard average is 7 calls per hour. The HCS states that he is desperate for help
and is open to any solutions that the CHRO can offer. The CHRO finds that the
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department is not staffed at full capacity and though the vacant positions have been
posted in-house, employees are not keen on applying for the roles based on rumors
of poor employee relations, bias, chaotic systems and controls.
How should the CHRO resolve the problem of the small number of calls per hour in
the department?
A. Provide orientation training for the staff of the department to increase the number
of calls by showing them a line of sight between their productivity levels and the
strategic goals of the organization.
B. Develop a Request for proposal (RFP) through which a temporary staffing agency
is selected to provide optimum customer service per service level agreements (SLA).
C. Work with the HCS to determine a compulsory work rule of 7 calls per hour for
each employee going forward, based on the industry standard average.
D. Take note of the calls, define the nature of the calls and determine the approximate
time needed to
resolve customer issues successfully for each call.
Answer: D
Explanation:
To effectively resolve the issue of the small number of calls, the CHRO must first
determine critical information on the duration and nature of the calls to determine the
root problem before implementing a solution.
Note that until the root cause of the problem is determined, the appropriate solution
cannot be known or implemented.
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36.The Receptacle organization has lost its overall market share by 13% because its
customer satisfaction levels has deteriorated over the last 7 months. The Chief
Executive Officer (CEO) speaks to the Chief Human Resource Officer (CHRO) about
receiving anonymous emails of dysfunction in the customer service department. The
CEO asks the CHRO to determine why the department is performing poorly, and if the
Head of Customer Service (HCS) is able to lead the team effectively. The CEO states
that the rising levels of customer complaints of poor service must be handled urgently
and decisively.
The CHRO schedules a meeting with the HCS. The HCS was a top performer as an
employee for 4 years and was recently promoted to lead the department. During the
meeting, the HCS admits that he is facing significant employee relations problems. He
states that certain employees are given preferential treatment by the CEO based on
familial ties and these employees cannot be controlled. He is at a loss on what to do
about these "problem" employees because they have access to the CEO based on
family ties.
Staff in the department respond to an average of 3 calls per hour while the industry
standard average is 7 calls per hour. The HCS states that he is desperate for help
and is open to any solutions that the
CHRO can offer. The CHRO finds that the department is not staffed at full capacity
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and though the vacant positions have been posted in-house, employees are not keen
on applying for the roles based on rumors of poor employee relations, bias, chaotic
systems and controls.
The CHRO has received an email stating that one of the employees in the customer
service function is under the influence of illegal drugs and was caught vandalizing
company property. The most appropriate way to handle this situation is?
A. Because the company has over 15 employees, it is subject to the Drug Free
Workplace Act of 1988, therefore the CHRO is to inform the HCS that the employee
must be summarily dismissed.
B. Determine if the employee is protected under the Americans with Disabilities Act
(ADA); if yes, provide a reasonable accommodation; if no, offer the employee the
option of resignation or termination.
C. Inform the HCS of the allegations, offer the employee paid administrative leave,
and carry out an investigation of the allegations.
D. Per due process, meet with the HCS and the employee to state the organization's
policy on drugs and substance abuse, discuss the allegations, and proceed with the
customary progressive disciplinary steps.
Answer: C
Explanation:
Unless paid administrative leave is being used as a form of workplace retaliation,
employers can legally put their employees on paid administrative leave while the
employer conducts an investigation regarding their employee's behavior.
When allegations are made, in order to know what action to take, or to find out
whether action is even necessary, the employer has to investigate the situation and
ascertain the facts. Employers that fail to investigate such situations usually lose any
claims or lawsuits brought by the employee in response to the problem. During the
investigation, it is best for the employee to be placed on paid administrative leave to
eliminate employer legal liability.
Note that the Drug-free Workplace Act of 1988 applies to any organization that
receives a federal contract of $100,000 or more; and any organization receiving a
federal grant of any size (not employers with over 15 employees).
Note that while a current illegal user of drugs is not protected by the ADA - an
individual with alcohol use disorder is a person with a disability and is protected by the
ADA if he or she is qualified to perform the essential functions of the job.
37.The Receptacle organization has lost its overall market share by 13% because its
customer satisfaction levels has deteriorated over the last 7 months. The Chief
Executive Officer (CEO) speaks to the Chief Human Resource Officer (CHRO) about
receiving anonymous emails of dysfunction in the customer service department. The
CEO asks the CHRO to determine why the department is performing poorly, and if the
Head of Customer Service (HCS) is able to lead the team effectively. The CEO states
that the rising levels of customer complaints of poor service must be handled urgently
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and decisively.
The CHRO schedules a meeting with the HCS. The HCS was a top performer as an
employee for 4 years and was recently promoted to lead the department. During the
meeting, the HCS admits that he is facing significant employee relations problems. He
states that certain employees are given preferential treatment by the CEO based on
familial ties and these employees cannot be controlled. He is at a loss on what to do
about these "problem" employees because they have access to the CEO based on
family ties.
Staff in the department respond to an average of 3 calls per hour while the industry
standard average is 7 calls per hour. The HCS states that he is desperate for help
and is open to any solutions that the
CHRO can offer. The CHRO finds that the department is not staffed at full capacity
and though the vacant positions have been posted in-house, employees are not keen
on applying for the roles based on rumors of poor employee relations, bias, chaotic
systems and controls.
The CHRO receives reports that an employee of the customer service department
has posted negative comments on the poor customer satisfaction levels of the
company on a popular social media site. The report claims that the employee stated
that the deteriorating levels of customer service is due to the company's apathetical
attitude to its employees. The report also states that the employee may have divulged
certain trade secrets of the company.
How should the CHRO handle this situation?
A. Get the employee's side of the story.
B. Communicate to the HCS that the employee has engaged in a breach of
confidentiality; allow the HCS determine the appropriate discipline to mete out.
C. Determine if the employee is protected by Weingarten rights; document the report
in the employee's file; proceed with the corporate disciplinary policy.
D. Terminate the employee based on the employment at will doctrine.
Answer: A
Explanation:
Note that an investigation has to be conducted to determine whether the allegations
are valid. It is also important to speak to the employee directly to get the employee's
side of the story.
Discussing with the employee may supply helpful information on how to proceed and
provide helpful details about the problem the employer may have with its customers
and employees. Note that if the employee under investigation is represented by a
union, HR must be aware of Weingarten rights to have a union representative present
during investigatory interviews that may reasonably lead to discipline. In general,
employers cannot fire employees for posting:
|Truthful statements about working conditions, like harassment or unsafe working
conditions.
|Comments that indicate your interest in joining or supporting a union.
|Messages to other co-workers suggesting that they contact a lawyer to get
information about workplace rights.
|Protected demographic information like your race, sex, age, religious affiliation.
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38.The Crop multinational company operates in over 7 countries in 3 continents. Their
international strategy involves not aligning with any of the host countries, but
operating the business across countries to gain efficiencies.
The Crop company most likely uses a?
A. International strategy.
B. Transnational strategy.
C. Global Strategy.
D. Multinational strategy.
Answer: C
Explanation:
A global strategy is designed to increase efficiencies by enabling the firm to take
advantage of specialization and locational advantages.
A firm using a global strategy sacrifices responsiveness to local requirements within
each of its markets in favor of emphasizing efficiency. This strategy is the complete
opposite of a multidomestic strategy. Some minor modifications to products and
services may be made in various markets, but a global strategy stresses the need to
gain economies of scale by offering essentially the same products or services in each
market.
Microsoft, for example, offers the same software programs around the world but
adjusts the programs (in production) to match local languages.
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39.The principal step in strategic planning for an international business is:
A. analysis of the internal environment.
B. identifying the basic mission.
C. analysis of the external environment.
D. formulate its tactics of operation.
Answer: B
Explanation:
A 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.
40.Charred firms emphasize location as an international business strategy by
choosing to create value by emphasizing:
A. a strategic level of standardization.
B. Economies of scale.
C. Modification for quality control.
D. responsiveness to local market preferences
Answer: D
Explanation:
Emphasizing location suggests that the firm is exploiting or responding to differences
between locations as markets or production bases. In both cases the firm is
highlighting the need to be locally responsive to market preferences in each location.
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41.An analysis of the external environment requires the Prep firm to identify its:
A. weaknesses of lack of capital and low website visibility.
B. strength of world-class customer service and high-quality staff.
C. Customer-centric strategy and attractive store design
D. New generation of consumers and industry price fluctuation
Answer: D
Explanation:
Note 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.
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42."We must focus on our competitive advantage if we intend to improve the bottomline of the organization". The most accurate definition of competitive advantage is:
A. A match between supply and demand of products and services.
B. competences that can be deployed in a variety of economies.
C. what differentiates one business from another.
D. Adopting the winning strategy of a competitor in the market.
Answer: C
Explanation:
The correct answer is c because competitive advantage is assumed to be unique to
the firm and what makes that firm distinctive in the eyes of customers. They form the
basis for differentiation in a competitive market.
43.An organization's strategy involves:
A. the allocation of resources to compete successfully in external markets
B. setting the long term direction of the organization.
C. clarifying the goals of the organization.
D. all of the above.
Answer: D
Explanation:
The strategy process requires consideration to be given to all these areas including
clarifying direction, future and long-term goals, and the effective allocation of
resources for business success.
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44.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:
A. geocentric
B. ethnocentric
C. regiocentric
D. polycentric
Answer: B
Explanation:
The 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.
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45.Which of the following is not considered an element of the ‘internal environment'
for the Terse manufacturing corporation which produces water, soda and fruit juices?
A. Environmental protection standards and emerging markets
B. Marketing capabilities.
C. Operational capabilities.
D. Personnel capabilities.
Answer: A
Explanation:
Since environmental protection standards and emerging markets are external to the
terse manufacturing corporation. All the other factors are under the control of the
corporation and are considered as part of the corporation's ‘internal environment'.
46.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?
A. Transnational strategy.
B. International strategy.
C. Global strategy.
D. Polycentric strategy
Answer: A
Explanation:
The 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.
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47.If the Softkey company produces an integrated accounting software and wants to
compete internationally, which strategy would the company most likely employ?
A. multidomestic
B. transnational
C. global
D. international
Answer: C
Explanation:
A global strategy would work best since the same software will be offered across the
countries and most likely will require only very minor deviations from one country to
another.
Global companies prioritize High Integration and Low Responsiveness. Global
companies are the opposite of multidomestic companies. They offer a standardized
product worldwide and have the goal to maximize efficiencies in order to reduce costs
as much as possible. Global companies are highly centralized and subsidiaries are
often very dependent on the Headquarters. Think of a company producing calculators
(Texas Instruments), software (Intel) or pharmaceuticals (Pfizer).
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48.If the Fizz company's product is canned soda and coffee beverages, which
strategy for competing internationally would the Fizz company most likely employ?
A. multidomestic
B. transnational
C. global
D. international
Answer: B
Explanation:
A transnational approach is appropriate for the Fizz company. Country-to-country
customization (of labels and brands) to accommodate differences in taste preferences
would most likely be necessary. The transnational company has a high global
integration and a high local responsiveness strategy. The transnational company has
characteristics of both the global and multidomestic firm. Its aim is to maximize local
responsiveness but also to gain benefits from global integration. Transnational
companies often try to create economies of scale more upstream in the value chain
(production) and be more flexible and locally adaptive in downstream activities such
as marketing and sales. Think of Soda drinks being marketed in the local language of
the foreign market even though it is the same content across countries.
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49.If Ekin company's product is clothing accessories, apparel and footwear, what
international strategy should the Ekin company most likely adopt?
A. transnational
B. multidomestic
C. global
D. international
Answer: A
Explanation:
A transnational strategy is preferred since apparel and footwear items can reflect
global fashion trends while being customized as needed because of country-tocountry differences in customer preferences and tastes.
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50.The primary reasons that companies choose to expand into foreign markets are all
of the following except?
A. to reduce currency volatility in profitability.
B. to spread business risks across a wider market base
C. increase customer base and lower costs
D. capitalize on core competencies
Answer: A
Explanation:
Currency volatility is a disadvantage of entering foreign markets and can negatively
impact the profitability levels of multinational companies.
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51.The Margin company has completed an environmental scan of the Malaysian
business environment to determine the feasibility of its expansion plans into Malaysia.
It utilized the tools of SWOT analysis, PESTLE analysis, and Porter's 5 forces to
accomplish the scan.
Which of the following is least likely to be a hindrance to the expansion plans of the
Margin company?
A. language and cultural barriers
B. reengineering its product offerings
C. navigating tariff, trade, and travel regulations
D. economies of scale
Answer: D
Explanation:
Economies of scale are the cost advantages that enterprises obtain due to their
increased scale of operation, and are typically measured by the amount of output
produced. A decrease in cost per unit of output enables an increase in scale.
Economies of scale is a significant advantage that companies obtain as it refers to
cost reductions that occur when companies increase production (to service increased
markets)
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52.Which of the following is the biggest strategic issue when competing in the
markets of foreign countries?
A. language barriers that hinder effective communication
B. cultural nuances that differ across countries and people
C. determining whether to standardize or customize the company's products
D. demographic differences among employees from different generations
Answer: C
Explanation:
One of the biggest strategic challenges to competing in the international space is
whether to offer a mostly standardized product worldwide or whether to customize the
company's offerings to local preferences in each different country's market to match
the tastes and inclinations of local customers.
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53.Using domestic factories as a production base for exporting goods to select foreign
country markets...?
A. depicts an international strategy to pursue commerce in foreign markets.
B. depicts a transnational strategy to pursue commerce in foreign markets.
C. depicts a global strategy to pursue commerce in foreign markets.
D. depicts a multidomestic strategy to pursue commerce in foreign markets.
Answer: A
Explanation:
An International strategy favors Low Global Integration and Low Local
Responsiveness.
An international company has little need for local adaption and global integration. The
majority of the value chain activities will be maintained at the headquarters/home
country/domestic country. This strategy is also referred to as an exporting strategy
(note the term "exporting" in the question). Products are produced in the company's
home country and sent to markets all over the world. If there are any subsidiaries, the
subsidiaries will function as local channels through which the products are sold to the
consumer. A good example are wine producers from France and the Rolex watch
manufacturer.
54.Cane's software company has decided to utilize a licensing strategy to participate
in foreign markets. However, the Chief Operating Officer has significant concerns
about the risks inherent in this business model of expansion.
Which of the following is a disadvantage of utilizing a licensing strategy to participate
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in foreign markets?
A. non-committal of human capital and financial resources to the foreign markets
B. ability to safeguard the company's technical know-how or patents.
C. sustainability concerns, environmental regulations, and reputational loss
D. Volatility of environmental factors in the political, economic, demographic, and
legal spheres.
Answer: B
Explanation:
Licensing is a transfer-related market entry strategy. It involves a company (known as
the licensor) granting permission to a company in another country to use its
intellectual property for a defined time period. A core disadvantage of a licensing
strategy is that the licensor may not have the ability to safeguard or control the
company's technical know-how or patents.
The advantages of using a licensing strategy to participate in foreign markets include;
being able to leverage the company's technical know-how without committing
significant additional resources to markets that are unfamiliar, politically volatile,
economically uncertain, or otherwise risky.
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55.Anna has been tasked with determining the appropriate international strategy for a
corporation which provides a variety of upscale household products. She has decided
to present her findings in a business case that explains the various international
strategies.
Which of the following is inaccurate in Anna's presentation?
A. An advantage of a franchising strategy in foreign markets include having
franchisees bear most of the costs of establishing foreign locations and requiring the
franchiser to expend only the resources to train, and support foreign franchisees.
B. A multidomestic type of strategy focuses on the competitive approach of
economies of scale and efficiency in all countries where the firm does business.
C. The multidomestic strategy is appropriate when country-to-country differences in
buyer tastes, cultural traditions, and market conditions vary significantly.
D. A "think global, act global" approach to strategy making is preferable when countryto-country differences are small enough to be accommodated within the framework of
a mostly uniform global
strategy.
Answer: B
Explanation:
Multidomestic companies do not have the advantage of economies of scale or
efficiency - global companies do. Multidomestic companies have the advantage of a
strong foothold in the local market, and an ability to customize for the specific market
(which sacrifices economies of scale).
The advantages of a global strategy include economies of scale and efficiency as
global companies offer a standardized product worldwide and have the goal to
maximize efficiencies in order to reduce costs and quality risks.
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56.The Frau group of companies has decided to practice a strictly regiocentric
strategy across the 5 countries it operates in which are clustered in Eastern Europe.
The countries are Bulgaria, Croatia, Czech Republic, Estonia, Hungary. The Frau
group's decision to pursue this strategy and concentrate its business activities in a
limited number of locations in Eastern Europe is least likely due to?
A. steep learning curve associated with performing its business activities in other
locations outside Eastern Europe.
B. costs of performing business is lower and quality levels are higher in Eastern
Europe compared to other geographic locations
C. better coordination of business activities in cultures that are significantly similar to
the headquarters of the Frau group
D. high-ranking talent from third country nationals that boosts innovation, creativity,
and human capital.
Answer: D
Explanation:
The Frau group's regiocentric strategy will have as a disadvantage the inability to
source talent from outside its preferred region. Third country nationals are employees
who are neither from the home country or the host country. These diverse group of
talent can bring innovation and creativity to companies that are amenable to recruiting
and including them.
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57.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
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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?
A. Advise the associate that the survey was approved by company executives and
clarification can be provided by the senior executive team.
B. Communicate to the associate the areas that the survey helped provide pertinent
data and work with the firm to complete the project.
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.
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.
Answer: B
Explanation:
The 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.
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58.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 manager returns from leave and is impressed with the survey carried out by
the HR professional. The HR manager states that surveys had previously been
ineffective because of a low response rate. The HR professional most likely took what
action before administering the survey to ensure its high response rate?
A. Determined the metrics and analytics that would be used to interpret the results.
B. Assured employees of anonymity and confidentiality of response.
C. Benchmarked the outcomes against those of similar organizations.
D. Communicated the purpose of the survey.
Answer: D
Explanation:
An employee survey will have a high response rate when its purpose is clearly
communicated to employees. Employee surveys should also have clear objectives
and actionable questions. Note the term "before" in the question. Metrics and
analytics may not impact the response rate but clear communication on its purpose
will increase response rates.
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59.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.
A year has passed after the survey was completed.
Which would be the best way for the HR team to increase employee willingness to
participate in the upcoming survey on employee engagement and satisfaction?
A. Use a pulse survey to minimize the possibility of survey fatigue and maximize
employee satisfaction
B. Use a Pareto chart to identify areas to focus on first in process improvement,
based on the "80/20"
rule
C. Connect any work practice changes made and their success to input provided on
the last survey.
D. Communicate the effectiveness of surveys in determining employee satisfaction in
comparison to
focus groups, productivity metrics, and retention rates.
Answer: C
Explanation:
The most effective way to increase employee willingness to participate in the
upcoming survey is by stating the connection between employment/work practice
changes that were informed by employee input from the previous survey.
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60.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?
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
Answer: D
Explanation:
HR 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.
61.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
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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.
Some executives are reluctant to have another survey this year. The executives state
that last year's survey is sufficient to understand employee engagement levels for this
year.
How should the HR manager convince senior leadership of the value of measuring
employee engagement through an annual survey?
A. By explaining how other methods of determining employee engagement are
unproductive
B. By convincing leadership that the survey outcomes will create viable solutions to
organizational problems
C. By providing benchmark data that detail the annual survey results of comparable
companies
D. By demonstrating how the survey can reveal unreported problems
Answer: D
Explanation:
Employee engagement surveys that are done on an annual basis can help reveal
unreported problems that employees face and provide an opportunity to take
proactive action in resolving the identified issues. Employee engagement survey
outcomes will not solve organizational problems. Benchmark data of survey results do
not provide the specific value of annual engagement surveys.
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62.An 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
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consultancy firm and requests that the firm works closely with the HR professional in
the implementation phase.
Which factor is critical for the HR Manager to consider before conducting the
employee engagement survey?
A. Top management support and guarantee to act on survey results
B. Ensure all employees have a say in creating and participating in the survey
C. Clarify the issues that employees consider important
D. Strengthen the outcome of the survey by clarifying pertinent issues with an
employee focus group
Answer: A
Explanation:
Before conducting the employee engagement survey, it is critical for the HR Manager
to ensure top management support and guarantee to take action on the survey
results. If executive management does not give its support, the survey exercise is a
waste of time and effort.
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63.The HR Manager of Engo Inc. has been sent on a job assignment to its company
subsidiary in China. The HR Manager from the onset of the assignment recognizes a
need to determine employee engagement levels. She speaks to the HR President of
the China subsidiary about the necessity of conducting an employee engagement
survey. The HR President is not keen on the idea and states that engagement drivers
differ from location to location due to cultural differences. The HR President states
that employee surveys are less acceptable in what type of culture?
A. hierarchical
B. egalitarian
C. individualist
D. collectivist
Answer: A
Explanation:
Hierarchy culture is a classic or traditional corporate culture. It is defined primarily by
structure. The main feature is a top-down style of management where decisions are
made up high and passed down to managers and employees.
Hierarchy Culture is a formalized and structured work environment. Leaders focus on
efficiency-based coordination and organization. In this culture, the common themes
are control and structure, and principles and procedures are well defined. Employee
engagement surveys that solicit employee opinion may not be acceptable in this
culture
64.After a public scandal of quid-pro-quo sexual harassment allegations, it has been
discovered that the Crunch organization has several dysfunctional problems inclusive
of no transparency, bias, micromanagement, lack of clear values, and poor
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supervision.
Which initial step would the newly appointed HR Manager take to gain more
information about possible causes?
A. Third-party administered survey
B. One-on-one employee interviews and focus groups
C. HR Audits and workplace investigations
D. Institute a confidential harassment hotline
Answer: A
Explanation:
The "initial" step is to have a third party conduct a survey to determine the issues and
causes facing the organization without bias or prejudice. Note that organizations use
focus groups to leverage employee survey results. While surveys are effective at
providing the initial quantifiable data, focus groups are then used to enrich these
results by revealing the more qualitative perspectives behind the numbers.
Note that options that seek to institute a solution before determining the possible
causes are premature and lack the foundation of determining the issues at hand.
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65.Which question would be most suitable in an employee opinion survey?
A. Is the organization's compensation level ideal compared to industry standards?
B. Are the organization's values accurately presented in the employee handbook?
C. Does your manager administer the flex-work policy in a consistent manner?
D. Does the organization maintain its competitive advantage in the industry for
industry leadership?
Answer: C
Explanation:
Employee opinion survey seek to gain opinions on specific WORK PROCESSES an
employee performs, safety procedures, or some other issue the employer may be
evaluating or considering.
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66.The Decal organization is downsizing its workforce due to increased competition in
its operative industry.
The HR manager has to decide which question should be included in an employee
opinion survey.
Which would you select?
A. What can management do to improve the profitability levels of the organization?
B. What do you feel about the assurance of your employment with the organization?
C. Does your manager seek your views about work procedures?
D. Do you feel the pay level you are on is adequate comparable to similar firms in the
industry?
Answer: C
Explanation:
Employee opinion survey seek to gain opinions on specific WORK PROCESSES an
employee performs, safety procedures, or some other issue the employer may be
evaluating or considering. Note that the company is "downsizing" so the most
appropriate question is option C.
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67.As a strategic complement to the main employee engagement survey, I
recommend brief, frequent surveys that focus on a specific issue or are given to
specific sections of the employees." The speaker is referring to what type of survey?
A. pulse
B. opinion
C. strategic
D. productivity
Answer: A
Explanation:
Pulse surveys allow employees to identify issues they're having right now or that
deserve immediate attention. This enables HR follow up with immediate action or
investigate these further. Pulse surveys are a mechanism for measuring feedback
using shorter, more frequent check-ins, and normally focus on a very specific issue or
question.
HR can send out pulse surveys regularly throughout the year, with minimal hassle.
This helps get frequent feedback on very specific topics, and is often compared to
doing a quick and simple health check of the company C hence the name ‘pulse'.
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68.A hybrid multinational consumer goods corporation operates 8 strategic business
units which are fully-functional units with their own vision, direction, product/service,
location, and target market under the umbrella of the larger business entity. The
corporation has a corporate HR department while the SBUs each have autonomous
HR departments that are largely independent from corporate HR. The Head of HR of
each SBUs has significant authority to operate in a polycentric fashion and only
interact with the Head of Corporate HR on a quarterly basis.
Due to a significant reduction in revenue during the pandemic, the organization has
made a decision to streamline its HR structure by adopting a more centralized HR
structure that can provide HR services to corporate and the SBUs. The proposed
centralization of the HR function is expected to result in cost reduction, consistency in
HR operations, and increased HR proficiency.
Corporate HR has created a team comprising of HR managers, HR business partners
and HR admin personnel to originate and implement the new HR services model.
Anna is a HR manager from a strategic business unit in California that has been
drafted to join the team. Anna has 8 years of cognate HR experience working with
various SBUs in the organization. Anna is the only team member who has worked
with an SBU, the rest of the team have only corporate HR experience. The team has
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been working for over 3 weeks reviewing the feasibility, advantages and
disadvantages of several HR structures, with most team members favoring a shared
services and center of excellence model.
How should the team start the process of determining the appropriate HR servicing
model?
A. Through the use of business cases, surveys, focus groups and cross-functional
team reviews to determine the structure that is most cost-effective and efficient for the
company
B. By benchmarking, researching and implementing trends and best practices of other
organizations
C. By determining a structure that will align with the company's strategic plan and
objectives
D. By talking with employees to gain insight about what outcomes they are looking for
in HR services
Answer: C
Explanation:
HR's function is to serve the strategy of the overall organization. The company's
strategic plan should guide all HR processes, procedures and decisions, including the
HR structure model as HR exists to enable the success of the business strategy of
the entire organization. Note that cost-effectiveness may not translate into the
appropriate model for business success. The best practice of other organizations may
not be ideal for this organization. Employee involvement at this stage is premature.
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69.A hybrid multinational consumer goods corporation operates 8 strategic business
units which are fully-functional units with their own vision, direction, product/service,
location, and target market under the umbrella of the larger business entity. The
corporation has a corporate HR department while the SBUs each have autonomous
HR departments that are largely independent from corporate HR. The Head of HR of
each SBUs has significant authority to operate in a polycentric fashion and only
interact with the Head of Corporate HR on a quarterly basis.
Due to a significant reduction in revenue during the pandemic, the organization has
made a decision to streamline its HR structure by adopting a more centralized HR
structure that can provide HR services to corporate and the SBUs. The proposed
centralization of the HR function is expected to result in cost reduction, consistency in
HR operations, and increased HR proficiency.
Corporate HR has created a team comprising of HR managers, HR business partners
and HR admin personnel to originate and implement the new HR services model.
Anna is a HR manager from a strategic business unit in California that has been
drafted to join the team. Anna has 8 years of cognate HR experience working with
various SBUs in the organization. Anna is the only team member who has worked
with an SBU, the rest of the team have only corporate HR experience. The team has
been working for over 3 weeks reviewing the feasibility, advantages and
to
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disadvantages of several HR structures, with most team members favoring a shared
services and center of excellence model.
How should the team best use Anna's cognate experience with SBUs?
A. Anna's experience can be used to identify the best HR service model that will be
ideal for SBU business operations.
B. Anna's experience will be ideal in determining the risk matrix of the likelihood of
corporate risks against the severity of SBU risks.
C. Anna's experience can be used to determine the business model to adopt between
global standardization and local responsiveness.
D. Anna's experience can be used to provide a balanced perspective in determining
which HR service
model is most suitable for the organization.
Answer: D
Explanation:
Anna's experience is best used to provide a balanced perspective in deciding what
HR service model to adopt. Remember Anna is the only team member with SBU
experience therefore including her input in the team's decision will ensure a wellrounded HR structure that takes into consideration corporate and SBU viewpoints.
Note that the correct option ties to the 4 Ts (travel, teams, training, and transfers),
which help an organization become more successful by increasing global mindsets.
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70.A hybrid multinational consumer goods corporation operates 8 strategic business
units which are fully-functional units with their own vision, direction, product/service,
location, and target market under the umbrella of the larger business entity. The
corporation has a corporate HR department while the SBUs each have autonomous
HR departments that are largely independent from corporate HR. The Head of HR of
each SBUs has significant authority to operate in a polycentric fashion and only
interact with the Head of Corporate HR on a quarterly basis.
Due to a significant reduction in revenue during the pandemic, the organization has
made a decision to streamline its HR structure by adopting a more centralized HR
structure that can provide HR services to corporate and the SBUs. The proposed
centralization of the HR function is expected to result in cost
reduction, consistency in HR operations, and increased HR proficiency.
Corporate HR has created a team comprising of HR managers, HR business partners
and HR admin personnel to originate and implement the new HR services model.
Anna is a HR manager from a strategic business unit in California that has been
drafted to join the team. Anna has 8 years of cognate HR experience working with
various SBUs in the organization. Anna is the only team member who has worked
with an SBU, the rest of the team have only corporate HR experience. The team has
been working for over 3 weeks reviewing the feasibility, advantages and
disadvantages of several HR structures, with most team members favoring a shared
services and center of excellence model.
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What should the team do to gain acceptance for its proposals?
A. The team should organize a meeting with the head of the SBUs to determine the
appropriate HR structure to adopt for the entire organization.
B. The team should rely on the sponsorship of the organization to intimate the
stakeholders on the necessity of the change.
C. The team should utilize an employee opinion survey and focus groups to
determine the level of resistance to the change.
D. The team should utilize a business case detailing its recommendations as a
presentation to the
leadership team.
Answer: D
Explanation:
A business case provides justification for undertaking a program. It evaluates the
benefit, cost, timelines, risks of alternative options and provides a rationale for the
preferred solution. A business case is the best tool for communicating
recommendations to executive leadership (who are the core decision makers), as it
provides a well-rounded, business-based guide to share the recommendations. Note
that it is senior leadership's buy-in that is most critical to obtain.
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71.The key difference between the general FMLA leave and the military caregiver
FMLA leave is;
A. requirements pertaining to employer eligibility.
B. group health insurance coverage requirements.
C. medical certification requirements.
D. requirements pertaining to duration.
Answer: D
Explanation:
The key difference is the duration. Generally, eligible employees may take up to 12
workweeks of leave during any 12-month period for certain family and medical
reasons.
For military caregiver leave, the leave duration is extended to up to 26 workweeks of
leave during a single 12-month period.
72.Which of the following is true about staffing approaches for multi-national
organizations and organizations engaged in offshoring?
A. A company that has a high-level of proprietary software and trade secrets should
practice a holistic polycentric approach
B. The most endemic people-related challenge international organizations face with
an ethnocentric model is cultural and communication differences
C. The most successful companies are those that adopt an ethnocentric staffing
approach for senior level roles, a polycentric staffing approach for mid-level roles and
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a geocentric approach for lower-level roles.
D. A core disadvantage of the polycentric approach is the prohibitive cost of training,
compensation,
and relocation of employees.
Answer: B
Explanation:
The ethnocentric staffing policy refers to the strategy of a multinational company to
employ managers for key positions from the parent company instead of employing
local staff in the host country. The polycentric staffing policy describes a
multinational's approach of recruiting host country nationals to manage subsidiaries in
their own country. In the geocentric approach the best people are sought for key jobs
throughout the organization, regardless of nationality. In the regiocentric approach,
employees "are transferred to positions in subsidiaries in other countries, but stay
within the same region. A company with trade secrets should practice the
ethnocentric model; every company has its own peculiarities therefore there is no onesize-fits-all staffing approach; option D states a disadvantage of the geocentric
approach C note that the polycentric approach will not require relocation
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73.Which of the following is the least controllable strategic advantage an organization
may have over its competitors?
A. human capital
B. corporate reputation
C. strategic pricing
D. market positioning
Answer: B
Explanation:
Note that corporate reputation is externally derived and a variety of factors which the
company may not have control over can determine its reputation. The company has a
greater control over the other options, with the greatest control being over its human
capital.
74.Martha has been tasked to engage in an analysis of specific openings that are
likely to occur in the future.
Which of the following will Martha most likely start with;
A. A job evaluation of present and future jobs
B. The positions that have had the highest turnover rate
C. Leadership positions
D. A job analysis of all roles in the workforce
Answer: C
Explanation:
Leadership/Top/Key positions have the greatest accountability, complexity, expense
and a significant impact when organizational memory is lost C therefore, leadership
positions are the most crucial roles to analyze, forecast, and prepare to fill in the
event of future openings. This is the basis of the strategic
nature of succession planning. Note that job evaluation is done to determine the worth
of a job in comparison to other jobs in a company, therefore option A is wrong. Note
that the question already identifies an "analysis" therefore option D is wrong.
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75.Frau is an exceptional marketing professional responsible for landing 60% of the
company's profitable accounts. Based on this, Frau was promoted to the role of
Marketing Manager. However, there have been consistent complaints from junior staff
on Frau's denigratory attitude, frequent but unwarranted disciplinary meetings, and
threats of utilizing the at-will doctrine.
Based on the above, which of the following will the CHRO recommend to the
executive leadership?
A. Have a meeting with the union and reiterate the rights of employees to invoke their
Weingarten rights when Frau administers unwarranted discipline
B. Demote Frau to the role of marketing professional where she had previously
excelled and appease her with a larger percentage of commissions
C. Assign a leadership and management coach to Frau
D. Recommend an EAP counsellor to address Frau's attitude with an emphasis on
emotional
intelligence and the reputable MyersCBriggs Type Indicator
Answer: C
Explanation:
The core issue with Frau is an inability to manage people. Coaching is the most
appropriate solution for managers who excelled in task performance but are poor in
people management.
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76.The least likely to be outsourced of the following HR activities is?
A. Employee relations
B. Learning and development
C. Recruitment and onboarding
D. Retirement benefits
Answer: A
Explanation:
Of 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.
77.A company has to undertake a remedial change initiative in response to a series of
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challenges it has faced in 2020. The most important responsibility of the human
resource department during this change initiative is;
A. Ensure seamless implementation of change initiatives
B. Ensure compliance of initiative with established policies and procedures
C. Assign employees to the area of greatest need as determined by the change
agents
D. Ensure accurate and continuous exchange of information across various
stakeholders
Answer: D
Explanation:
The most important activity HR can engage in during a change initiative is consistent
communication and accurate feedback across various stakeholders. Communication
is central to the success of any change initiative.
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78.Which of the following is not true about the following submissions on Hofstede's
cultural dimensions?
A. A low degree of power distance is mostly found in Asian, African and Arab
countries
B. Masculinity focuses on a preference for achievement, assertiveness and material
rewards
C. Short-term orientation focuses on tradition and social hierarchy while long-term
orientation focuses on persistence, perseverance, and adaptability
D. Indulgence focuses on free gratification of basic and natural human desires
Answer: A
Explanation:
On the contrary, Asian, African and Arab countries have a high degree of power
distance index while western countries have a low power distance index. Power
distance index refers to the extent to which the less powerful members of
organizations and institutions accept and expect that power is distributed unequally.
79.Data has proven that HR policies, procedures, and practices have the most
significant impact on organizational effectiveness with-------- being a major
contributory factor.
A. Corporate commitment and executive support
B. Employee level of expertise
C. Low turnover and accession rates
D. Pay benchmarks to ensure industry competitiveness
Answer: A
Explanation:
HR initiatives stand a significant chance of success when corporate commitment and
executive support exists, is robust and active.
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80.The HR department has a goal of recruiting a minimum of 15 HR junior executives
with minimum qualifications of 2 years' experience and the PHR certification. This
goal has a timeline of 6 months and a budgeted expense of $10,000. If the
department recruits 16 HR executives who meet the qualification. The timeline took
300 days with a budgetary expense of $15,000 due to increased advert costs, low
unemployment rate, and a target of passive candidates. The department can be said
to be----- ;
A. Efficient but not effective
B. Effective but not efficient
C. Profitable but not effective
D. Achieved a strong ROI of 150%
Answer: B
Explanation:
Effective means the set goal was achieved; efficient means the goal was achieved
judiciously within a set time, effort, and budget. Effective is achieving a goal C even
though resources may have been used wastefully. Efficient is performing in the best
possible manner with the least waste of time, effort, and finances. Being effective is
about doing the right things, while being efficient is about doing things right.
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81.Micah has been tasked to carry out a comprehensive audit of all current jobs in her
company.
Where can Micah the information she needs to carry out this task;
A. Organization and staffing database
B. Gap analysis data
C. Employee files
D. Personnel performance improvement plan.
Answer: A
Explanation:
To carry out a comprehensive audit of all current jobs, the best option for Micah is the
organizational and staffing database such as a HRIS. Note that gap analysis is
understanding the gaps between workforce demand and supply and to identify top
priority gaps with the greatest impact on organizational performance.
82.Which of the following strategies would be more suitable in a business
environment of constant change which requires a need to continually find new
products and new markets?
A. global
B. differentiation
C. horizontal integration
D. premium
Answer: B
Explanation:
Differentiation strategy is a strategy that aims to distinguish a product or service, from
other similar products, offered by competitors in the market. It's an approach that a
business takes to develop a unique product or service that customers will find better
distinctive from those offered by competitors.
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83.The HR planning process begins with;
A. Analyzing the internal inventory of HR capabilities
B. Forecasting the relationship between supply and demand for human resources
C. Scanning the external environment for changes affecting the labor supply
D. Analyzing the organizational objectives and strategies
Answer: D
Explanation:
The following are the general steps in the HR planning process; Analyzing
Organizational Objectives, Inventory of Present Human Resources, forecasting
Demand and Supply of Human Resource; Estimating Manpower Gaps, Formulating
the Human Resource Action Plan, Monitoring, Control and Feedback.
Begin with the Organization's strategy, then supply analysis, then demand analysis,
gap analysis, and solution analysis.
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84.Hadassah has been tasked to create a strategic training for senior management
using the ADDIE model of instructional design.
For this training to achieve maximum impact, what is the first step the Hadassah
should take when creating the training?
A. Obtain executive management's support
B. Establish organizational and individual requirements
C. Ensure the training objectives is in sync with the organization's strategic objectives
D. Incorporate best-practice executive training tools such as executive coaching,
assessment centers
and peer review
Answer: B
Explanation:
Establishing organizational and individual requirements is a vital step in a training
needs analysis. Training needs analysis is the first stage in the training process and
involves a series of steps that reveal whether training will help to solve problem which
has been identified. The training needs analysis will identify what knowledge, skills
and Abilities are required to meet business objectives, what are the current
capabilities of employees, what skills are needed in the future; and what are the ways
to close training gaps. Note that the most important step is often obtaining executive
management support but this question asks for the first step.
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85.In a human resource departmental meeting, it was argued the necessity of
conducting a needs analysis when the line manager had already identified that the
PIP shows that training is required.
Which of the following is not a primary purpose for carrying out a needs analysis?
A. establishing priorities and making decisions about program or project resource
allocation or improvement - to determine priorities, make organizational
improvements, or allocate resources
B. To provide quantifiable data to gain top management commitment and use HR
analytics data for predictive analysis of strategic organization outcomes
C. To enables organizations to channel resources into the areas where they will
contribute the most to employee development, enhancing morale and organizational
performance
D. To direct resources to areas of greatest demand
Answer: B
Explanation:
The primary purpose of a needs analysis is to determine priorities, and channel
resources to the areas of greatest need.
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86.Immediately after completion of a computer based training with 15 modules,
participants are asked to
complete a 1 hour online test and a 5 minutes survey. The online test is--------; and
the survey is--------of Donald Kirkpatrick's summative evaluation;
A. Reaction; Learning
B. Learning; Behavior
C. Learning; Reaction
D. Results; Reaction
Answer: C
Explanation:
A test will determine if the participants learnt the material and if the information was
effectively absorbed while a survey is at the reaction stage to know the participants
initial reaction and insights into the content quality, method of delivery, instructor, and
environment.
87.The law that protects whistleblowers and also requires notice requirement for plan
administrators of ERISA-covered plans is?
A. ERISA
B. Dodd-Frank Act
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C. Sarbanes- Oxley Act
D. Pension Protection Act
Answer: C
Explanation:
The 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.
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88.The Chaldean corporation has made a shift to be more strategic in onboarding,
performance management, succession planning, and to ensure workforce planning is
aligned with the business plan. The HR director has created a talent pipeline for high
potential mid-level employees to be developed for future leadership positions. A
consultant was hired to ensure a line of sight is entrenched in the compensation
strategy. Applicants are asked to fill a candidate experience survey to improve the
chances of top talent selection. Employee engagement survey data was used to
improve the engagement metrics.
Which of the following is the accurate term for the case above?
A. Human capital management program
B. Succession planning program
C. Human resource management program
D. Talent management program
Answer: D
Explanation:
Talent management program is the strategic and integrated approach to attract top
talent, ensure employee motivation, continuous coverage of critical roles, increase
employee performance, employee engagement, retain top talent, compensation
plans, improve business performance, and increase stakeholder returns and higher
client satisfaction.
89.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.
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What form of alternative dispute resolution has the BOD decided on?
A. Constructive confrontation
B. Peer review panel
C. Arbitration
D. Mediation
Answer: A
Explanation:
Constructive 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.
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90.An ecommerce giant has a strategic directive to implement the use of drones for
its delivery purposes. This will enable the corporation to deliver goods within 8 hours
in a 20-mile radius. The downside is the company will have to layoff 33% of its 20,
000 delivery van drivers.
An accurate cost and benefit analysis of the proposed layoff will include?
A. Costs of reduced employee engagement and morale; benefit of the accuracy of
drone delivery
B. Costs of recruiting drone technology experts; benefits of wage and benefit savings
C. Costs of compliance with WARN Act requirements; benefits from implementation of
corporate strategy of increased automation of operational services
D. Costs of unemployment insurance and outplacement services; benefits of
reduction in overhead
costs
Answer: D
Explanation:
Note that the question requires a focus on cost-benefit analysis of the proposed
layoff, not of the drone delivery. Therefore the only option that focuses squarely on
pros and cons of a layoff is D. Overhead costs include payroll, and benefits.
91.The following organizations have implemented a variety of change initiatives.
Which of the following organization's created a reactive change initiative?
A. The Rim organization anticipates a reduction in unemployment rates and begins to
automate its administrative processes
B. The Crow organization lowers the prices of its grocery products based on an influx
of low-price grocery stores
C. Introduction of a new employee benefit scheme based on a HR survey that
indicates a strong correlation between employee motivation and increased benefit
D. An organization outsources its customer service function in a bid to focus on its
core function of product design and development
Answer: B
Explanation:
Reactive change occurs because it is made necessary by outside forces while
proactive change is initiated by the organization because it is desirable to do so.
Option B is reactive because prices were lowered based on increased competition.
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92.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?
A. Implied employment contract
B. Human Resource contract
C. Psychological contract
D. Express employment contract
Answer: C
Explanation:
A 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.
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93.The HR Director has proposed to the C-suite that as the company has made a
strategic shift from a hierarchal structure to a flat structure, the number of employee
that report to a supervisor will have to be increased mainly because information
technology has made it easy to manage several middle management tasks.
The HR Director's proposal is centered on?
A. Employee engagement
B. Broadbanding
C. Lean organization model
D. Span of control
Answer: D
Explanation:
Span of control means the manageable number of subordinates for a supervisor.
"Span of control," also known as management ratio, refers to the number of
subordinates controlled directly by a manager. For example, a manager with five
direct reports has a span of control of five.
94.A software licensing company is considering merging with a hardware
manufacturing company to increase market share and achieve economies of scale.
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The executive management of the software company has organized a meeting to
discuss the viability of the merger.
As a HR professional in the software company, which of the following is the most
critical issue to bring up during the executive meeting?
A. Outline market and industry research outcomes on the advantages of mergers in
reinventing companies by gaining leverage and capabilities
B. Present research that shows that the hardware company is being targeted by three
international unions, and there is a 80% chance that the software company will
become a successor employer
C. State that metrics from a recent employee survey indicate that employee turnover
has increased and employee morale reduced as employees worry that the merger will
result in layoffs due to role duplication
D. State that a diagnostic overview and inventory of all HR processes and procedures
within the software company must be carried out prior to the merger
Answer: B
Explanation:
Note that the most important activity for HR to carry out when a merger is proposed is
due diligence of the other company's HR processes and practices. Due diligence is a
diagnostic overview and inventory of all HR processes and procedures, a
comprehensive appraisal of a business undertaken by a prospective buyer, especially
to establish its assets and liabilities and evaluate its commercial potential. Option D is
wrong because it is referring to due diligence within the software company rather than
due diligence to be done in the hardware company. Therefore the best answer is C.
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95.William is the HR manager responsible for ensuring the cumulative tasks and
activities of the HR department are performed according to plan. In order to achieve
this, William is using the Gantt and PERT charts to plan, coordinate, and track the
duration and accomplishment of HR tasks.
William is heavily involved in what management function?
A. Controlling
B. Planning
C. Project mapping
D. Scheduling
Answer: A
Explanation:
There are five basic management functions C planning, organizing, staffing, leading,
and controlling. The controlling function measures an organization's progress toward
its goals; brings to light how actual performance deviates from standards, and takes
corrective action to rectify same. The controlling function makes use of project
management tools such as the Gantt and PERT charts which help ensure activities
are coordinated and accomplished on schedule. This management function also
seeks to make efficient use of resources, and reduce wastage of resources.
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96.A plant that processes building materials is located in a county that was recently in
the news for having the 3rd highest rate of drug and alcohol abuse in the country. The
plant has had a 17% increase in employee injuries in the operations department and
during the graveyard shift.
What would be the best course of action to reduce the rate and risk of injury in the
plant?
A. Conduct a root cause analysis with employee involvement
B. Change the employees shift from the graveyard shift to day shift
C. Conduct plant-wide random drug and alcohol test
D. Provide personal protective equipment for the employees and conduct OSHAapproved training
Answer: A
Explanation:
The Occupational Safety and Health Administration (OSHA) urge employers to
conduct a root cause analysis following an incident or near-miss at a facility. A root
cause is a fundamental, underlying, system-related reason why an incident occurred
that identifies one or more correctable system failures. By conducting a root cause
analysis and addressing root causes, an employer may be able to substantially or
completely prevent the same or a similar incident from recurring.
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97.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?
A. Transactional leadership
B. Charismatic leadership
C. Transformational leadership
D. Authoritarian leadership
Answer: A
Explanation:
Transactional leaders use reward and punishments to gain compliance from their
followers C these leaders focus on supervision, organization, and performance.
Transactional leaders are very often enforcers who are not as concerned with the wellbeing of the workers in comparison with transformational leaders. Transformational
leaders are similar to coaches C 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.
98.Strategic planning involves the following process except?
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A. Generates tactical plans for each company function
B. Ensures organizational agility and readiness for the future
C. Determines how the company's vision and mission will be achieved in the longterm
D. Sets the direction and establishes priorities for an organization
Answer: A
Explanation:
Strategy is important to an organization because it provide an overall long-term
direction to the management of the organization that creates, maintains, and fosters
its competitive advantage. Note that Option A refers to tactical planning which breaks
down a company's strategic plan and sets forth specific short-term actions and plans,
by company department or function. The tactical planning horizon is shorter than the
strategic plan horizon.
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99.The Derulic organization has deployed a company-wide artificial intelligence
software program that is estimated to improve organizational productivity by 65%.
What is the most important role for the HR team during the implementation of the
technological change initiative?
A. Communicate to employees on the technological change initiative through surveys,
HR analytics and open-door policies
B. Assume the role of a change agent by aligning and deploying HR strategies and
activities as leverage towards achieving organizational goals and meeting employee
needs
C. Implement a systematic and proactive approach in addressing technical and
operational deployment of the software program
D. Strategize with various stakeholders such as executives, vendors and employees
on seamless
implementation of the program
Answer: B
Explanation:
HR acts a change agent (promotes and enables change) during a change initiative to
enable the workforce prepare for, and better adapt to, any changes the organization
may experience.
100.A company has determined that it will center its corporate social responsibility
efforts on "going green".
Which of the following will the company engage in to support the local community?
A. Establishing a cloud network
B. Match employee donations to the Red Cross
C. Sponsor school programs that focus on STEM
D. Donating food to a major food bank
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Answer: A
Explanation:
One way that a company can begin its "going green" process is to implement the use
of a paperless working operation. Cloud networks and scanning necessary
documents into cloud systems reduces the amount of paper waste and other items a
business has to purchase for printed documents. Switching to a cloud-based option
can cut the purchase of copy paper by at least half over the course of a year.
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