🤪 Wildcard 🤪
A company is not meeting its sales goals. It believes part of the problem is the quality of raw materials being used in production. Which corporate strategy would be most effective to address this concern?
A) Diversification
B) Vertical integration
C) Horizontal expansion
D) Consolidation
B is correct. "Vertical integration" is the correct response as this strategy involves a company taking complete control over one or more stages in the production or distribution of its product, which would therefore provide control over the quality of the raw materials.
A, C, & D are incorrect.
A) "Diversification" is a strategy involves acquiring or establishing a business other than that of its current product. Often diversification gains a company a new segment of an industry in which the business already competes rather than improve anything in their current process.
C) "Horizontal expansion" is a strategy involves taking existing products or services and acquiring a new, often related, business and the same level of the value chain in an industry.
D) "Consolidation" is a strategy involves mergers and acquisitions, usually of many smaller companies into much larger ones, with the focus on growth.
Which of the following questions addresses an economic PEST factor?
A) Do any tax or other socialized incentives exist that will impact hiring practices?
B) How will generational attitude shifts influence recruitment efforts?
C) Will the unemployment rate significantly affect the job market?
D) Are there infrastructure changes that will affect work patterns?
C is correct. The unemployment rate is an economic factor that can significantly affect the vitality of the job market.
A, B, and D are incorrect.
A) is a political factor
B) is a social factor
D) is a technological factor.
Which employee lifecycle (ELC) phase would most likely have the greatest effect on a millennial in today’s workforce?
A) Recruitment and selection
B) Training and development
C) Performance management
D) Transition
A is correct. The recruitment and selection phase would most likely be the phase with the greatest effect on the millennial since millennials are characteristically younger with significant personal interests, i.e., starting a family. Millennials often prioritize factors such as company culture, values alignment, career growth opportunities, and work-life balance when choosing an employer. The recruitment and selection process is crucial in shaping their perception of the organization and determining whether it meets their expectations and values.
B, C, and D are incorrect. While each of these choices is a phase of the employee life cycle that also impacts the millennial, each impact is more directly connected to job interest and performance.
Which of the following quality control tools would be best when evaluating whether a reduction in sales staff correlates to a decrease in sales?
A) Fishbone diagram
B) Scatter diagram
C) Pareto chart
D) Histogram
B is correct. A scatter diagram is used to compare two variables. The two variables in this case are then the number of sales staff and company revenue.
A, C, and D are incorrect. A is incorrect because a fishbone diagram (cause and effect) compares several causes that are suspected to affect an outcome. C is incorrect because a Pareto chart is used to help the HR professional determine which needs should be focused on in order to gain the most improvement. A Pareto chart visually shows the 80/20 principle, which says that 20 percent of the problems, if addressed appropriately, will yield 80 percent of the improvements. D is incorrect because a histogram visually shows the changes for 1 variable. This case has 2 variables.
What is a key paradox of globalization today?
A) Despite the depth and breadth of globalization, most employees work within a few hundred kilometers of their birthplace
B) Despite the importance of environmental and political forces, globalization today remains a purely economic phenomenon
C) The rise of global technologies has, ironically, made global trade more difficult
D) The growth of developing nations, notably China and India, has forced developed nations to become less global in their trade policies
A is correct. A key paradox of globalization is that, most employees still work relatively close to where they were born. This suggests that while globalization has expanded opportunities and interconnected markets, local labor markets remain highly localized due to various factors such as social ties, economic conditions, and regional job availability.
B, C, & D are incorrect. Option B is incorrect because globalization is influenced by a variety of forces, not just economic ones. Option C is incorrect because global technologies have generally facilitated trade, although they do come with challenges. Option D is incorrect because the growth of developing nations has not forced developed nations to become less global in their trade policies; rather, it has led to shifts in trade dynamics and competitive advantages.
According to COBRA, a company with 20 or more employees must offer
A) COBRA benefits to spouses of deceased workers
B) Health insurance continuation to employees on unpaid leave
C) Extended health benefits to retired employees over 65
D) Health insurance coverage to part-time employees
A is the correct answer. The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires companies with 20 or more employees to offer continuation of group health benefits to employees and their families in specific situations where coverage would otherwise be lost. One of these situations includes offering COBRA benefits to spouses of deceased workers, ensuring they have the opportunity to maintain their health coverage for a limited period.
B, C, & D are incorrect.
Option B is incorrect because COBRA does not specifically mandate health insurance continuation for employees on unpaid leave; Option C is wrong because COBRA does not mandate extended health benefits specifically for retired employees over 65; Option D is incorrect because COBRA pertains to the continuation of existing group health benefits and does not specifically mandate health insurance coverage for part-time employees.
How is organizational culture connected with the topic of strategy?
A) A strong culture can eliminate the need for strategic planning
B) Culture should be seen as a lever to enhance strategy
C) Culture should not affect a choice of strategy
D) Strategy should be planned first, and then steps should be taken to create a supportive culture
B is the correct answer. Organizational culture plays a crucial role in the successful implementation and execution of strategy. A strong and aligned culture can enhance strategy by fostering an environment where strategic objectives are understood, embraced, and effectively acted upon by employees.
A, C, & D are incorrect. Option A is incorrect because even a strong culture does not eliminate the need for strategic planning. Option C is incorrect because culture significantly impacts the choice and success of a strategy. Option D is incorrect because strategy and culture should be developed together, ensuring that they are aligned and mutually reinforcing
Which of the following is a characteristic of labor or trade unions?
A) All adhere to the ILO core standards.
B) Employee expectations of unions vary by country.
C) Unions tend to have a combative relationship with management.
D) Unions generally operate in similar fashions globally.
B is correct. Employee expectations of their unions vary greatly by country. Unions are structured differently by country. For example, in some countries a union may be run by a corporation or may be associated with certain political parties, whereas in the United States unions run by a company are illegal, and union support of particular political parties is controversial. These types of influences affect an employee’s relationship with the union.
A, C, and D are incorrect.
A) Internationally unions have not all adopted or enforced International Labour Organization (ILO) labor standards.
C) A union’s relationship with management isn’t mostly combative. In fact, most organizations try to establish positive union relationships in order to improve grievance resolutions, improve the collective bargaining process, and avoid unnecessary problems.
D) Globally unions appear to have little in common. An HR professional working in a country outside of their home country will need to familiarize themselves with how particular unions function in their area.
An employee elects a $500 annual deferment in his Section 125 Flexible Benefits Plan (FSA). His employer pays an FSA claim for $500 in March. In April, the employee terminates his employment after deferring only $167 to his plan. What happens in this situation?
A) The employee must repay the remaining $333 to the employer
B) The employee is entitled to the full reimbursement of $500
C) The employer can withhold the remaining $333 from the employee's final paycheck
D) The employee forfeits the $167 already deferred
B is correct. Under the rules governing Section 125 Flexible Benefits Plans (FSAs), once an employee incurs an eligible expense and submits a claim, they are entitled to the full reimbursement amount, even if they terminate employment before deferring the total annual elected amount. In this case, the employee is entitled to the full $500 reimbursement, regardless of having only deferred $167 to the plan by the time of termination.
A, C, & D are incorrect. Option A is wrong as the employee is not required to repay the remaining $333. Option C is wrong because the employer cannot withhold the remaining amount from the employee's final paycheck. Option D is incorrect because the employee does not forfeit the $167 already deferred
An HR director has assembled senior staff to discuss ways to develop the talent pool necessary to support the organization's new strategic direction. Several of the managers support providing a summary of the strategy to the major search firms under contract. How should the HR director respond?
A) Acknowledge the suggestion in the meeting but ignore it
B) Delegate the task of communicating with the search firms to this group
C) Explain to the group in detail why this would be a deficient response
D) Encourage the group to analyze the issue and identify novel responses
D is correct. The HR director should encourage the group to analyze the issue and identify novel responses. This approach fosters collaboration, critical thinking, and creativity among the senior staff. By engaging the group in a deeper analysis, they can come up with more innovative and effective strategies to develop the talent pool that aligns with the organization's new strategic direction.
A, B, & C are incorrect. Option A is incorrect because ignoring the suggestion does not address the potential value or concerns it may have. Option B is incorrect because delegating the task immediately may overlook better alternatives or more strategic approaches. Option C is incorrect because dismissing the suggestion outright might discourage open discussion and the sharing of ideas in the future.
What are three characteristics of formal mentoring that distinguish it from informal mentoring?
A) Self-selection of mentors and mentees, unspecified goals, no training and support
B) Unlimited employee access to the program, a mix of individual and large-group sessions, unspecified outcomes
C) Connection to organizational strategies, self-selection of mentors and mentees, long-term engagements
D) Deliberate pairing of mentors and mentees, established goals, expert training and support
D is correct. Formal mentoring programs are characterized by deliberate pairing of mentors and mentees based on specific criteria, established goals that align with the organization's objectives, and expert training and support provided to both mentors and mentees. These features distinguish formal mentoring from informal mentoring, which typically lacks structured pairing, specific goals, and formal support mechanisms.
A, B & C are incorrect. A) Self-selection, unspecified goals, and no training/support are traits of informal mentoring, not formal mentoring. B) Unlimited access, mixed session formats, and unspecified outcomes do not specifically distinguish formal mentoring. C) Connection to organizational strategies and long-term engagements can be part of formal mentoring, but self-selection of mentors and mentees is more typical of informal mentoring.
The HR manager is in an organization that is considering conducting some layoffs because the organization is suffering from two consecutive poor quarters. The company has communicated to the public that the financials would be positive for this quarter and that revenue per employee would be up and back to normal levels. The revenue per employee is still down, and a reduction in staff can bring the number back up to normal levels. The leadership team and especially the CFO feel this action is critically necessary. The leadership team is concerned about information leaking about the layoff too soon, resulting in premature turnover of valued staff. What steps can be taken to reduce the potential for information leaking about the layoff?
A) The steps that can be taken include delaying the decisions, ensuring everything is prepared, and training all managers and leaders to communicate with laid-off employees correctly.
B) The steps that can be taken include expediting the decisions, reducing those involved with the decision, and emphasizing the importance of confidentiality to all individuals involved in the planning.
C) The steps that can be taken include delaying the decisions, involving all stakeholders with the decision, and emphasizing the importance of reducing liability involved in the planning.
D) The steps that can be taken include reducing liability, reducing those involved with the decision, and emphasizing the importance of confidentiality to all individuals involved in the planning.
B is correct. B is the best answer because getting things expedited reduces the opportunity of information getting out too soon and limiting the team involved will also.
A, C, and D are incorrect. D is the second-best answer because this choice will accomplish most of the same things as choice A. A and C both delay the decision, increase potential exposure to communication leaks, and therefore increase anxiety about the layoff, and there are too many people involved for the timing.
The VP of engineering wants the employee handbook updated to include information that pertains only to the engineering department. She wants the rest of the company to know and understand what engineering does and doesn’t have the responsibility to accomplish. She thinks the special engineering bonus will play a role in helping other departments learn what the focus is for engineering. The engineering bonus program applies only to engineering, and other departments are not authorized to receive the bonus. The HR team is concerned about the impact that adding the engineering-specific information will have on the other departments in the company that are not even aware that the other bonus exists. What could HR recommend to the VP of engineering to address her concerns about other departments understanding engineering?
A) The HR team could recommend adding the information and allow the VP of engineering to manage any issues that develop.
B) The HR team could recommend any strategy that would improve communications between engineering and other departments.
C) The HR team could recommend off-site meetings, and newsletters, learn about engineering lunches, and collaboration opportunities.
D) The HR team could recommend structural changes, transfers into the engineering department, and bonuses for the other departments.
C is correct. C is the best answer because it creates many specific solutions for solving and addressing the concerns of the VP.
A, B, and D are incorrect. B is the second-best answer because it also creates potential solutions, but they are not specific options. These choices fail to communicate effectively, and they do not manage/develop the relationship with the VP. These choices do not solve the problem of improving the understanding of what engineering does or they are not appropriate for the situation.
The HR function is responsible for providing the marketing department with job candidates who possess very specialized skills. The head of marketing complains to senior management that they are not getting the right kinds of candidates to effectively pursue their strategic initiatives. What should the HR leader do?
A) Schedule a formal meeting with senior management to discuss the issue and defend HR's recruitment efforts
B) Bring key HR staff from the recruiting team to meet with marketing to understand their needs and brainstorm solutions
C) Send an email to the marketing head asking for more detailed job descriptions to improve candidate selection
D) Propose hiring an external consultant to review and improve the recruitment process for specialized roles
B is correct. Understanding their specific needs and working collaboratively to brainstorm solutions. This approach ensures that HR is directly addressing the concerns of the marketing department, fostering better communication and understanding. It also demonstrates a proactive and cooperative attitude in resolving the issue
A, C & D are incorrect. Option A is incorrect because it focuses on defending HR's efforts rather than addressing the marketing department's concerns. Option C is less effective as it relies solely on written communication, which might not capture the full scope of the issue or lead to immediate solutions. Option D is incorrect because it suggests outsourcing the problem without first attempting to solve it internally through direct collaboration and communication.
Two employees are talking in the lunch room, and they are saying inappropriate things about one of their co-workers. The information is not true; they’re simply saying it to make that employee look bad because they’re jealous of that other employee’s success. As a result of the comments overheard and shared, many employees, supervisors, and managers think that those statements are true. The company leaders decide not to promote this employee because of the false, malicious comments that these two employees made about the employee. What type of training will be most beneficial to prevent this from happening in the future?
A) The most beneficial training will be to focus on ensuring all employees understand the law regarding slander, libel, and false statements.
B) The most beneficial training will be to focus on ensuring all employees understand the law regarding gossip, comments, and false statements.
C) The most beneficial training will be to focus on ensuring all employees understand the law regarding EEOC, discrimination, and prejudicial statements.
D) The most beneficial training will be to focus on ensuring all employees understand the law compared to the company policies and procedures.
A is correct. A is the best answer because these are the key areas to training all employees about what not to do in the workplace.
B, C, and D are incorrect. B is the second-best answer because these are also keys to correct and eliminate. C and D focus on training in areas that are not as effective.
The CEO of the company attended a seminar on mindfulness and has made the training mandatory for all managers and supervisors. The training focuses on mindfulness, emotional intelligence, and meditation. Several supervisors and managers object, stating that the training feels religious and spiritual and request religious accommodation. The CEO believes the training will improve profitability, communication, and conflict management. This is unscheduled training from the training budget. What type of budgetary response is necessary to fund the training at this point?
A) Zero-based budgeting
B) Incremental budgeting
C) Activity-based budgeting
D) Formula-based budgeting
C is correct. Activity-based budgeting (ABB) is the best approach for funding the new, unscheduled mindfulness training program. ABB allocates funds based on the specific costs of new activities, ensuring efficient resource allocation and alignment with the company's strategic goals.
A, B, & D are incorrect. Zero-based budgeting, method requires justifying all expenses from scratch, which is too extensive for an unscheduled training event. Incremental budgeting method adjusts the previous budget without considering new activities, making it ineffective for addressing specific new training costs. Formula-based budgeting approach uses predefined formulas, which lack the flexibility to address unique, unscheduled training needs.
One employee is not succeeding as well as the other two employees in the department. The other two have exceeded the standard consistently for almost an entire year, and they were both promoted with a pay increase. The first employee complained because he did not understand. Based on the Adams Equity Theory, he wanted to get a promotion and pay increase as well. He believed he was doing the same level of work they were doing even through the data shows different performance from the others. He claimed it was because of race and discrimination. The other two have significantly outperformed the minority employee, so there are no grounds for his complaint, but the manager is concerned because the employee is threatening to sue. What is the key information to use when discussing the concerns with the first employee who is making the claim?
A) The key information consists of the feelings and concerns behind the decision that can be shared with the employee.
B) The key information consists of the objective data and facts supporting the decision that can be shared with the employee.
C) The key information consists of the policies and procedures supporting the decision that can be shared with the employee.
D) The key information consists of the standards and results supporting the decision that can be shared with the employee.
B is correct. B is the best answer because objectivity, facts, and data supporting the situation will make the most difference in a thorough investigation.
A, C, and D are incorrect. C is the second-best answer because it is important for everyone to understand the policies and procedures of the company. Feelings and concerns are important in the situation, but following policies and objective information will support the investigation and yield a better result for the company. Results will be determined by the policies, procedures, and objective facts.
What is the one critical requirement for a diversity council?
A) The council must include representation from all employee levels and functions to ensure organization-wide acceptance of its decisions
B) The compensation of the executives on the council must be tied to the achievement of the diversity goals it sets
C) The council must include at least one representative from every employee resource group in the organization to ensure that it is itself diverse
D) The council must be the nexus of the initiative, establishing the strategic vision, goals, and programs and collecting and analyzing outcomes
D is correct. The most critical requirement for a diversity council is that it acts as the central hub for the diversity initiative within the organization. This means it should establish the strategic vision, set goals, develop programs, and be responsible for collecting and analyzing outcomes. By fulfilling this role, the council ensures that diversity efforts are coherent, targeted, and effective, driving the organization's commitment to diversity and inclusion.
A, B, & C are incorrect. Option A is important for ensuring broad representation and buy-in, but it is not the most critical requirement. Option B, while beneficial for accountability, is not essential. Option C is also valuable for ensuring the council's own diversity but does not address the central function of the council in driving the initiative.
One employee is not succeeding as well as the other two employees in the department. The other two have exceeded the standard consistently for almost an entire year, and they were both promoted with a pay increase. The first employee complained because he did not understand. Based on the Adams Equity Theory, he wanted to get a promotion and pay increase as well. He believed he was doing the same level of work they were doing even though the data shows different performance from the others. He claimed it was because of race and discrimination. The other two have significantly outperformed the minority employee, so there are no grounds for his complaint, but the manager is concerned because the employee is threatening to sue. What should HR recommend to reduce the negative effect of the Adams Equity Theory on future employment decisions?
A) HR could recommend making policies, procedures, and practices clear and include MBO in the evaluation process to help the employee understand the standards expected.
B) HR could recommend making time to interact with the employee and include a narrative in the evaluation process to help the employees understand how they are doing.
C) HR could recommend making relationships and influence strong and include graphic ratings in the evaluation process to help the employee understand their success.
D) HR could recommend making goals, objectives, and standards clear and including BARS in the evaluation process to help the employee understand their competency level.
D is correct. D is the best answer because the employees will have a clear understanding of the objective inputs and outputs of their goals versus their contributions.
A, B, and C are incorrect. B is the second-best answer because the employee can have good feedback sessions and discussions with their manager that will reduce the subjective perspective they may have about their performance. Graphic ratings are often subjective and hard to justify, and policies and procedure will have little impact of subjective thoughts of employees.
The CEO of the company attended a seminar on mindfulness and has made the training mandatory for all managers and supervisors. The training focuses on mindfulness, emotional intelligence, and meditation. Several supervisors and managers object, stating that the training feels religious and spiritual and request religious accommodation. The CEO believes the training will improve profitability, communication, and conflict management. This is unscheduled training from the training budget. If there is no religious or spiritual aspect to this training, must the organization accommodate the managers and supervisors who do not want to participate?
A) No, the accommodation is not necessary, and all the leaders must participate as required by the CEO’s directive.
B) No, the company is not legally required to accommodate, but they should consider doing it anyway.
C) Yes, the company must accommodate the leader’s request because there is no undue hardship to the organization.
D) No accommodation is required, but the CEO should alleviate any valid concerns about the training through communication sessions.
D is correct. If the training does not have any religious or spiritual content, the organization is not legally required to accommodate the managers' and supervisors' objections. However, addressing their concerns through communication sessions can help clarify the purpose and benefits of the training, ensuring better understanding and acceptance among the staff.
A, B, & C are incorrect. Mandating participation without addressing concerns may lead to resentment and lack of engagement. While considering accommodation is thoughtful, it is not necessary if there is no religious content. Legal accommodation is not required in this context as there is no undue hardship and no religious aspect involved.