Business Management and Strategy Flashcards
What is the most effective method of performance evaluation?
a. ) A field process
b. ) A continuous feedback process
c. ) A forced ranking process
d. ) A behaviorally anchored rating scale process
b.) A continuous feedback review process is most effective because it provides immediate feedback to employees, enabling them to correct performance issues before they become major problems.
In a field review, reviews are conducted by someone other than the direct supervisor.
Forced ranking is an evaluation method in which all employees are listed in order of their value to the work group.
The BARS process identifies the most important job requirements and creates statements that describe varying levels of performance.
The process of identifying risks and taking steps to minimize them is referred to as:
a. ) Liability management
b. ) Risk management
c. ) Qualitative analysis
d. ) Risk assessment
b.) Risk management identifies areas of possible legal exposure for the organization and reduces those risks with preventive actions.
Liability management occurs after a liability is incurred, while risk management seeks to prevent liability.
Qualitative analysis covers several subjective tools for analysis.
A risk assessment is used to determine how likely it is that an identified risk will actually occur.
What questions should be answered when selecting an HRIS system?
- What information will be converted
- Who will have access to the information stored
- How will the HRIS be accessed
- whether the HRIS will be integrated with payroll or other systems and what kinds of reports will be produced
Sarbanes-Oxley Act
2002
To improve quality and transparency in financial reporting. to increase corporate responsibility and the usefulness of corporate financial disclosure, and to establish and maintain an adequate internal control and procedures for financial reporting.
Ad hoc arbitrator
an ad-hoc arbitrator is a person selected to hear a single case between two parties in conflict. (single case)
Which of the following is a productivity type of statistical HR measurement?
a. ) Turnover and retention
b. ) Cost per hire
c. ) Revenue per employee
d. ) Job satisfaction
c. ) There are three types of statistical HR measurements:
- productivity measures, such as revenue per employee and OSHA incident rates.
- employee measures, such as turnover/retention and job satisfaction - activities measure, such as cost per hire and ration of total employees to HR staff
An HR audit is designated to help management:
a. ) Improve employee morale
b. ) Analyze HR policies, programs and procedures against applicable legal requirements.
c. ) Improve HR effectiveness
d. ) All of the above.
d.) An HR audit is an organized process designed to identify key aspects of HR in the organization such as employee morale, HR policies, programs and procedures, and HR effectiveness.
Examples of workplace ethics issues
Ethics are considered a standard of conduct and moral judgment defined by the processes that occur and the consequences of these processes.
- workplace privacy
- conflicts of interest
- whistle-blowing
The correlation coefficient is a statistical measurement that is useful for:
a. ) Determining whether one variable affects another
b. ) Compensating for data that may be our of date
c. ) Determining which variables are outside acceptable ranges
d. ) Describing standards of quality
a. ) The correlation coefficient is useful in determining whether two factors are connected.
ex. whether an increase in resignations is related to a change in location of the workside.
Federal legislation does not specifically prohibit disparate treatment of caregivers, but claims of disparate treatment for employees caring for elders, children, or disabled family members increased 450 percent between 1990 and 2005. On what basis are these claims filed?
a. ) Title VII
b. ) Americans with Disabilities Act
c. ) Family Medical Leave Act
d. ) All of the above
d.) According to guidance published by the EEOC, caregivers are not a protected class, but there are circumstances in whcih disparate treatment becomes unlawful based on stereotyping prohibited by Title VII, association with disabled individuals prohibited by the ADA, or violations of FMLA caregiving requirements.
A statement of cash flows is a financial report that tell you :
a. ) The financial condition of the business at a specific point in time
b. ) Where the money used to operate the business came from
c. ) The financial results of operations over a period of time
d. ) How much money is owed to the company by its customers.
b.) A statement of cash flows provides information about the money that flowed through the business. It identifies whether the cash was received from customers, loans, or other sources; how much cash was spent to operate the business; and how much was reinvested in the business.
A balance sheet describes the financial condition of the business at a specific point in time.
The income, or profit and loss statement, tell you the financial results of operations over a period of time.
An accounts receivable ledger describes how much money is owed to the company by each customer.
One purpose of a diversity initiative is to:
a. ) Increase workplace creativity
b. ) Increase the effectiveness of the workforce
c. ) Increase the organization’s ability to attract customers
d. ) all of the abvoe
b.) The purpose of a diversity initiative is to increase the effectiveness of an already diverse workforce by educating the employee population about the benefits of a diverse workforce.
when is PEST used?
A PEST analysis is used to scan the political, economic, social, and technological conditions in the external environment to determine what impact those conditions will have on the success of the organization.
The concept that recognizes businesses are social organizations as well as economic systems and productivity is related to employee job performance is known as:
a. ) Human resource management
b. ) Strategic management
c. ) Human relations
d. ) Human resources development
c.) The concept of human relations was first introduced in the 1920s and challenged previous assumption that people work only for economic reasons and could be motivated to increase productivity simply by increasing monetary incentives.
Human resource management is the business function responsible for activities related to attracting and retaining employees, including work force planning, training and development, compensation, employee and labor relations, and safety and security.
Strategic management is the process by which organizations look for competitive advantages, create value for customers, and execute plans to achieve goals.
Human resources development is the functional are of human resources focused on upgrading and maintaining employee skills and developing employees for additional responsibilities.
Which of the following alternatives staffing methods would be most appropriate for a company with ongoing yet sporadic needs for a specific job to be done?
a. ) Intern programs
b. ) On-call worker
c. ) Seasonal worker
d. ) Temp worker
b.) An on-call worker is the best solution for situation in which the employer needs the same job to be done on a sporadic basis. This allows the employer to rely on the same persons to do the job, reducing training requirements.
An intern program would not be appropriate because it is a short-term training solution.
Seasonal workers are generally required only at specifics times of the year.
Temp workers provided by agencies may not be available when needed because they may be on other assignments.
According to the Copyright Act of 1976, which of the following is most likely to be considered a fair use of copyright material
a. ) Distributing 10 copies of a chapter in a book to a study group
b. ) Copying a book for 10 staff members of a nonprofit organization
c. ) Distributing 30 copies of a paragraph in a book to a study group
d. ) None of the above
c. ) Four factors are considered in determining whether the use of published material is a fair use:
- the purpose of the use
- the nature of the work being copied
- how much of the work is copied
- and what economic efect copying the material will have on the market value of the work
Which of the following organizational structures is characterized by networks instead of traditional hierarchies?
a. ) Seamless organization
b. ) Geographic organization
c. ) Flat organization
d. ) Matrix organization
a.) A seamless organization replaces traditional hierarchies with networks designed to enhance communication and creativity. These networks are made possible by advanced technology that allows employees t connect from anywhere in the world.
The Occupational Safety and Health Act of 1970 grants employees the right to do all of the following except:
a. ) be advised of potential safety hazards
b. ) Speak privately to an OSHA inspector during an inspection
c. ) Observe the employer when measuring and monitoring workplace hazards
d. ) View detailed reports of all workplace accidents.
d.) While the the employees have the right to review accident reports, they do not have the right to the information that would identify the employees involved in the accident.
PEST is an acronym for:
- Political
- Economic
- Social
- Technological
A standard employment practice that seems to be fair yet results in discrimination against a protected class is a description of:
a. ) Disparate treatment
b. ) Disparate impact
c. ) Adverse impact
d. ) Unfair treatment
b.) Disparate impact occurs when an employment practice that seems to be fair unintentionally discriminates against members of a protected class.
Disparate treatment occurs when a protected group is treated differently than other applicants or employees.
An adverse impact is any negative result of a change to any terms or conditions of employment.
Unfair treatment can refer to any perceived difference in how employees are treated.
Which of the following points is important to effective lobbying, that is attempting to influence or persuade an elected official to pass, defeat or modify a piece of legislation?
a. ) Learning how the legislative and political process works
b. ) Beginning by using persuasion to convince the elected official to accept your position
c. ) Making big financial contribution
d. ) Letting the elected official choose a solution rather than present a proposed solution.
a.) To be effective, most experts agree that it is best to first do your homework, that is, learn how the legislative and political process works. In this way, you can participate effectively in the process.
Persuasive skills are useful in presenting your point of view.
Big financial contributions are often used by lobbyist to ensure elected representatives will listen to their points of view.
Lobbyists prefer to present a proposed solution to elected officials.
Which of the following is required by the Economic Growth and Tax Relief Reconciliation Act of 2001?
a. ) Requires pension plans to account for employees contributions separately from employer contributions.
b. ) Allows employers to contribute a percentage of company earnings to retirement plans each year
c. ) Allows employees older than 50 to make catch-up contributions to retirement accounts
d. ) Requires employer pension contributions to be funded on a quarterly basis.
c.) EGTRRA (Economic Growth and Tax Relief Reconciliation Act of 2001) made changes to pension contribution limits and allows employees older than 50 to make catch-up contributions.
Measuring staffing needs against sales volume could be done most effectively by using which of the following techniques?
a. ) A multiple Linear regression
b. ) A ratio
c. ) A simulated model
d. ) A simple linear regression
d.) A simple linear regression measures one variable against another.
Multiple linear regression measures more than one variable against others.
A ratio compares one number to another.
A simulation model uses a computer program to predict the possible outcomes of different business scenerios.
A process for reducing the impact of bias during performance reviews by using multiple raters is known as:
a. ) Interrater reliability
b. ) An MBO review
c. ) A rating scale
d. ) Paired comparison
a.) Interrater reliability seeks to reduce bias y having multiple reviewers rate an individual’s performance and averaging the ratings.
Management by objectives establishes goals at the beginning of a review period and rates how well the goals were achieved.
A rating scale is one method of performance appraisal.
The paired comparison method compares all employees in a group to each other.
The Vietnam Era Veterans Readjustment Assistance Act (VEVRA) requires that:
a. ) All contractors list all job openings with state employment agencies
b. ) All employers list all job openings with state employment agencies
c. ) State employment agencies give preference to Vietnam veterans for senior-level management position referrals
d. ) State employment agencies give preference to Vietnam veterans for positions lasting three days or longer.
d.) VEVRA applies to government contractors and requires that all job openings be listed with state employment agencies except those that will be filled from within, are for senior level management positions, or will last less than three days.
What is the most effective method to utilize when an employer wants to obtain insight into employee goals and job satisfaction and provide career counseling to those in the work group?
a. ) An employee survey
b. ) A skip-level interview
c. ) An employee focus group
d. ) A brown bag lunch
b.) A skip level interview provides an opportunity for a manager’s manager to obtain the insight into the goals and satisfaction of employees in the work group.
An employee survey is best used to gather information about various issues that can be collected and summarized.
A focus group can be utilized to involve employees in the decision making process.
A brown-bag lunch is an effective way for senior managers to meet with small groups of employees to answer questions about the company goals and mission and to obtain feedback about operations.
A lockout occurs when:
a. ) The employee shuts down operations by refusing to work
b. ) The employer refuses to allow the union to unionize the workplace
c. ) The employer shuts down the operations to keep employees from working
d. ) The employees patrol the entrance to the business
c.) A lockout is an action taken by the employer to stop employees form working.
A strike occurs when employees refuse to work
An employer that refuses to allow the union to conduct an organizing campaign is committing an unfair labor practice.
Picketing occurs when employees patrol the entrance to the business
What provides the framework for collecting information about factors that are relevant to the planning process?
a. ) A SWOT analysis
b. ) A PEST analysis
c. ) n environmental scan
d. ) An internal assessment
c.) An environmental scan is used to gather the information used to forecast future business conditions.
SWOT and PEST analyses are tools used during an environmental scan.
An internal assessment is another tool used during strategic planning
Which of the following activities is not a responsibility of the operations function of a business?
a. ) Designing the product.
b. ) Scheduling production runs to coincide with customer demand.
c. ) Ensuring that products or services meet quality standards.
d. ) Determining what new products will be produced.
d.) Marketing is responsible for determining what new products will be produced based on market research designed to find out what products customers are willing to purchase.
Which of the following statements is true of a hostile work environment.
a. ) when single incident of unwanted touching occurs, a hostile work environment has been created
b. ) A hostile work environment may be created when an individual witnesses the ongoing harassment of a co-worker.
c. ) Only a supervisor can create a hostile work environment.
d. ) A grievance procedure/policy against discrimination protects employers from hostile work environment claims.
b.) A co-worker who witnesses the ongoing harassment of another individual may have an actionable claim of a hostile work environment.
A single incident of unwanted touching unless it is particularly offensive or intimidating, will not reach the threshold of a hostile work environment established by the course.
A hostile work environment may be created by any individual in the workplace, including customers, vendors, or visitors, in addition to supervisors or co-workers.
In the case of Meritor Savings Bank v. Vinson, the Supreme Court held that the mere existence of a grievance procedure and anti-harassment policy does not necessarily protect an employer from hostile work environment claims.
A high-involvement organization is an example of what type of OD intervention?
a. ) Human process
b. ) Human resource management
c. ) Techno-structural
d. ) Strategic
c.) Techno-structural interventions address issues of how work gets done in an organization. A high-involvement organization is one in which employees at all levels are involved in making decisions about how work is accomplished.
Human process interventions are designed to build competencies at the individual level of the organization.
HRM interventions focus on HR processes and programs such as selection procedures or performance management that address individual employee needs.
Strategic interventions are used to execute changes to an organization’s vision, mission, or values.
What is a target benefit plan?
a. ) Uses actuarial formulas to calculate individual pension contribution amounts
b. ) Requires an actual deferral percentage test to be performed each year.
c. ) Provides a means for employees to become owners of the company.
d. ) uses a fixed percentage of employee earnings to defer compensation.
a.) A target benefit plan is a hybrid plan that has similarities to defined benefit pension plans and money purchase plans. These plans use actuarial formulas to calculate individual pension contribution amounts.
Deferral percentage tests are required each year for 401(k) plans.
An ESOP provides a means for employees to become owners of the company.
A money purchase plan defers a fixed percentage of employee earnings.
“Thanks for such a great presentation! You will always have a job with us.” This is an example of:
a. ) The duty of good faith and fair dealing
b. ) An express contract
c. ) An implied contract
d. ) Fraudulent misrepresentation
b.) An express contract can be oral or written and states what the parties to the contract agree to do.
The duty of good faith ad fair dealing is a common law doctrine that parties to an oral or written contract have an obligation to act in a fair and honest manner to facilitate achievement of the contract goals.
An implied contract can be created by conduct and does not have to be stated explicitly. Fraudulent misrepresentation occurs when an employer makes false statement to entice a candidate to join the company.
Health and wellness programs are beneficial for employers because they:
a. ) Increase productivity, reduce medical costs, and attract top-quality job candidates
b. ) Provide nutrition counseling, exercise programs, and health education programs
c. ) Require employees to lose weight, stop smoking, and avoid substance abuse
d. ) Provide on-site opportunities for physical fitness
a.) Employers look for benefits programs that add value to the bottom line. Health and wellness programs do this by increasing productivity and reducing costs. These programs are attractive to job candidates and enhance recruiting efforts.
Samantha is hiring an outside sales rep for a new sales territory. Part of the selection process included an assessment test that measures successful sales characteristics. Samantha scored particularly high on the test. During the interview, Christopher, the hiring manager, had some concerns about how well Samantha would fit into the company culture, but when he learned how high she scored on the test, he immediately decided to hire her. What bias could be at work in the situation?
a. ) Halo effect
b. ) Knowladge-og-predictor effect
c. ) Cultural noise effect
d. ) Stereotyping effect
b.) The knowledge-of-predeictor effect occurs when an interviewer is aware that a candidate has scored particularly high or low on an assessment test and allows this to affect the hiring decision.
The halo effect occurs when the interviewer allows a single positive characteristic of the candidate to overshadow other considerations.
Cultural noise occurs when a candidate gives answers they think the interviewer wanted to hear.
Stereotyping occurs when the interviewer makes assumptions about a candidate based on generalizations about the group the candidate belongs to (for example, women).
Which of the following activities does not contribute to ergonomic injuries?
a. ) Awkward postures
b. ) Extended vibrations.
c. ) Falling down stairs
d. ) Contact stress
c.) Ergonomic injuries are caused by repeated stress to a part of the body. A fall down the stairs is single occurrence and therefore not an ergonomic injury.
An effective progressive disciplinary process begins with:
a. ) A written warning
b. ) A verbal warning
c. ) A suspension
d. ) Coaching and counseling
d.) An effective progressive discipline process begins with coaching or counseling, acknowledging good performance, and providing guidance on performance that needs to be changed. Providing ongoing feedback, both positive and negative, reduces the stress level for both employees and supervisors when serious performance issues arise and must be addressed.
A written warning is the second step of a formal disciplinary process.
A verbal warning is the first step.
Suspensions are usually the last step prior to termination.
An employee earning $22,500 per year supervises three employees and spends 35 hours per week on essential job duties that require discretion and independent judgement. Is this employee:
a. ) Exempt, based on the executive
b. ) Exempt, based on the administrative exemption test
c. ) Nonexempt, based on the salary basis requirement
d. ) Nonexempt
c.) Effective in 2004, employees must be paid a minimum $455 per week to be exempt from FLSA requirements. This employee earns only $432.69 per week. ($22,500 / 52 weeks = $432.69.)
Although d.) is also correct, the BEST answer is the one that explains why.
Total quality management focuses all employees on producing products that meet customer meeds This is done by:
a. ) Eliminating processes that waste time and materials
b. ) Developing a high level of expertise in all employees
c. ) Sharing information with all levels in the organization
d. ) Balancing the needs of all stakeholders in the organization
a.) The TQM concept reviews processes to eliminate waste, relies on teamwork, and involves all members of the organization in meeting customer needs.
Personal mastery, a high level of employer expertise, is one of the five disciplines of a learning organization.
Information sharing is one characteristic of a high-involvement organization
The ability to balance stakeholder needs is a requirement of a change agent.
Which of the following would be considered an extrinsic reward?
a. ) Challenging work on a new project
b. ) A 10 percent salary increase
c. ) A feeling of accomplishment after completing a tough assignment
d. ) Recognition by the CEO at a company meeting
d.) Extrinsic rewards are non-monetary rewards where self-esteem comes from others, such as formal recognition for a job well done.
Challenging work on a new project is an intrinsic reward.
Salary increases are monetary rewards.
A feeling of accomplishment after completing a tough assignment is another type of intrinsic reward.
Which of the following statements about substance abuse policies is NOT true:
a. ) Substance abuse policies identify who will be tested
b. ) Federal las requires all employees to implement substance abuse policies
c. ) An effective policy describes when tests will occur and what drugs will be tested
d. ) An effective policy describes what happens to employees who test positive
b.) The drug Free Workplace Act of 1988 requires only federal contractors and subcontractors to establish substance policies.
A fair and effective policy will describe which employees will be tested. whether it is all or specific job group.
The policy should describe when tests will be done (preemployment, randomly, upon reasonable suspicion, or according to a predetermined schedule)
What drugs are included in the process,
And the consequences for employees who test positive.
To increase the chances for successful repatriation of employees, the process should include:
a. ) Development of a qualified pool of candidates for global assignments.
b. ) A formal repatriation program that includes career counseling.
c. ) Setting expectations for repatriation before employees begin global assignments.
d. ) All of the above.
d.) Organizations that are able to successfully repatriate employees after global assignments do so by carefully selecting candidates for those assignments, setting appropriate expectations before the assignment begins, and establishing a formal program to assist employees in reintegrating into the home office after a global assignment.
Richard, who works at the customer service counter in an auto supply store, told his manager that because of chronic back pain, it is difficult for him to stand for long periods and asked for an accommodation The manager isn’t sure, based on the essential job functions, how an accommodation can be provided. You advise the manager to begin the interactive process with the employee. What should the manager do to begin this process?
a. ) Ask Richard how his back was injured.
b. ) Provide a stool for Richard to use at the counter.
c. ) Ask Richard whether he has any suggestions for an accommodation.
d. ) Ask Richard to meet with HR to resolve the problem.
d. ) Ask Richard to meet with HR to resolve the problem.
c.) To assess the reasonableness of a requested accommodation, employers should ask employees to describe their limitations, how it affects their performance of essential job functions, and whether they have suggestions for an accommodation that would allow them to perform the functions.
Human resources professionals are likely to use third-party contracts when doing which of the following?
a. ) Conducting a job evaluation.
b. ) Hiring a temporary employee.
c. ) Writing the employee handbook.
d. ) Hiring a full time executive.
b.) In the third-party contract, some or all of the work is performed by an individual who is not a party to the contract. There are many examples of third-party contracts in business, perhaps the best known for HR professionals is an agreement with a temp agency in which the company agrees to pay the temp agency for services provided by an employee of the agency.
Which of the following is an example of direct compensation?
a. ) Variable compensation
b. ) Vacation pay
c. ) 401(k) matches
d. ) Employer Social Security contributions
a.) Direct compensation is composed of base pay (hourly wage or salary), variable compensation, and pay for performance.
Vacation pay, 401(k) matches, and employer Social Security contributions are examples of indirect pay.
For purposes of developing a security program, an HR manager must assess potential risks and costs related to loss and protection. Which factor must the manager first examine?
a. ) Severity of the loss to the organization.
b. ) Cost of the loss, including a permanent or temporary substitute
c. ) Degree of probability that the loss will occur
d. ) Availability and sot of insurance to cover the loss.
c.) The significance of various security issues depends partly on the size of the organization. However, regardless of size , the same considerations go into assessing vulnerabilities and the method for estimating the cost of potential losses. The justification of such a program requires that the potential losses will exceed the cost of the program.
Which of the following activities illustrates the administrative role assumed by an HR professional?
a. ) Filling out EEO reports
b. ) Implementing the grievance process form an employee threatened with termination
c. ) Evaluating the bottom-line contribution of HR programs
d. ) Conducting an interviewing seminar for line managers
a.)
The administrative role of HR focuses on dealing with compliance issues and record keeping. (often via human resource information systems (HRIS)
An organizational picket may lawfully take place when:
a. ) The union members are unhappy with their current union and ask a new union to represent them.
b. ) The union files a representation petition with the NLRB no later than 15 days after picketing starts.
c. ) There are less than 45 days left before the current collective bargaining agreement expires.
d. ) The union wants to attract employees so they will authorize the union to represent them.
d.) Organizational pickets may take place when no other union is currently representing employees at a company.
Arbitrators chosen by all parties to resolve any disputes arising between them in the future are known as:
a. ) tripartite arbitrators
b. ) compulsory arbitrators
c. ) ad hoc arbitrators
d. ) permanent arbitrators
d.) All parties agree that permanent arbitrators are fair, impartial, and able to resolve any issues that arise between them.
A tripartite panel consists of three arbitrators who hear the issues and reach a joint decision.
An ad hoc arbitrator is selected to hear a single case.
A correlation coefficient is an example of a type of:
a. ) Qualitative analysis
b. ) Quantitative analysis
c. ) Job evaluation
d. ) Learning matrix
b.) Qualitative analysis is a form of research that utilizes mathematical models such as correlation, correlation coefficient, and measures of central tendency to provide solutions to problems.
Which of the following activities illustrates the operations role played by an HR professional?
a. ) Ensuring currency or employee records
b. ) Conducting recruitment for new job openings
c. ) Forming contacts with key individuals outside the organization
d. ) Developing criteria for selecting supply chain partners
b.)
The operational role of HR involves those day-to-day tasks necessary to run an organization: recruiting for current job openings, resolving employee complaints, communicating with employees.
In addition, HR consults on specific issues and provides line managers with advice on how to manage performance and increase employees’ productivity and job satisfaction.
Which of the following examples illustrates the strategic role played by HR today?
a. ) Securing off-site backup and storage of employee transaction and records
b. ) Developing a system to track the number of people leaving the organization
c. ) Creating a training program for conducting safe and legal terminations
d. ) Working with senior and line managers to forecast workforce needs for the next five years.
d.)
in the 21st century, HR is a strategic partner with senior and line managers. The strategic role of HR requires a global, long-term, and forward-thinking focus.
The supply chain is an example of
a. ) flexible internal organization boundaries
b. ) a tendency to draw core competencies back into the organization
c. ) an extended organization
d. ) an organizational structural change required by lean manufacturing principles
c.) The extended organization is becoming more common today as supply chain partners create processes and information channels that allow their organizations to communicate and collaborate fluidly.
The business remain separate entities but may appear to outsiders as one entity. Extended organizations are commonly formed through the use of outsourcing
A software company is considering the acquisition of a training company that will provide documentation and training for its key customers. The company begins a due diligence investigation. Which of the following items will have the LEAST impact on the due diligence process?
a. ) Obligations to retirement plans
b. ) History of OSHA complaints
c. ) Strategies to integrate compensation and benefit system
d. ) Cultural fit of the two companies
b.) Due diligence is commonly practiced in the Merger and Acquisition (M & A) process to identify structural, technological, financial, legal, or cultural risks.
There is also a compliance dimension to due diligence: benefit issue, compliance with ERISA and tax codes, union-sponsored multi-employer plans, defined benefits or defined contribution plans, I-9 and visa regulations, FMLA, WARN Act, and possible state WARN Acts, provisions or the National Labor Relations Act (NLRA)., etc.
Of a lesser importance are OSHA and Worker’s Compensation claims.
Which of the following statements about SOX is true?
a. ) It applies to all companies, no matter their size or whether they are publicly or privately held
b. ) It relates primarily to compensation for high-level executives
c. ) It has little direct effect on HR
d. ) It addresses both insider trading and whistleblowing activities
d.) Sarbanes-Oxley Act (SOX) of 2002, requires that publicly held companies not only ensure their financial statements are accurate but also demonstrate that they have process in place to ensure accuracy and compliance with accounting standards.
HR can best prepare for a strategic role by
a. ) enhancing its ability to demonstrate return on investment
b. ) expanding the size of the HR function
c. ) focusing on ways to cut production costs throughout the organization
d. ) centralizing HR activity for greater consistency and control
a.) All functions myst implement appropriate data-gathering processes so that strategic initiatives can be evaluated and modified or eliminated. Business cases must be developed in support of requests for investment by the organization. A business case will need to include financial assessments, such as cost-benefit analysis.
The impact of demographic changes on HR is best illustrated by which of the following?
a. ) Need to learn more about local legislation and rule-making process
b. ) Survey adequacy of existing organization communication vehicles for all employees
c. ) Establishment of employee self-service centers
d. ) Evaluating ethical liabilities posed by supply chain partners
b.) Survey adequacy of existing organization communication vehicles for all employees
The future success of organizations will depend on their ability to recognize and adapt to rapidly changing workforce demographics. Different workgroups have different work values and habits and different preferences for communication, technology, and socialization.
Which of the following best illustrates the way in which HR’s strategic role has transformed its operations role?
a. ) Upgrading an HRIS system
b. ) Establishing relationships with key decision makers throughout the organization
c. ) Taking a more active role in responding to employee complaints
d. ) Analyzing job descriptions for changes to required skills that will affect recruitment and selection decisions.
d.) Analyzing job descriptions for changes to required skills that will affect recruitment and selection decisions.
HR’s operational activities are now directly aligned with strategic bjectives. Specific types of employees are targeted for hiring.
HR works with functions to design incentives that promote rather than discourage desired behavior.
HR monitors employee satisfaction and looks for ways to increase employee engagement (ex. improving supervisory skills, soliciting employee ideas.)
The PRIMARY priority of a project manager who is exhibiting the interpersonal role is
a. ) disseminating information and helping team members
b. ) building team norms and fostering harmony
c. ) allocating resources
d. ) negotiating differences and monitoring project progress
b.) In the interpersonal role, the project manager is a leader and a liaison. The top priorities are building team norms and fostering harmony.
Which of a project’s life cycle is most labor-intensive?
a. ) Problem definition
b. ) Project planning
c. ) Implementation
d. ) Evaluation
c.) Project plan implementation is the most labor-intensive phase of the project and represents the largest portion of the schedule and budget.
The project manager’s role may expand now to include motivating the team and removing any obstacles to the team’s progress.
Which of the following best describes a business plan?
a. ) cost-benefit analysis of business concept
b. ) Market research into acceptability of a new service or product
c. ) Scenario-based test of a business plan
d. ) Analysis of a problem and of possible solutions
d.) Analysis of a problem and of possible solutions
Business case if often used to request management support for a project.
Business case establishes that a specific problem exists and argues that the proposed solution is the best way to solve the problem in terms of time, cost-efficiency, and probability of success.
What is the FIRST step in locating a third party vendor to handle an employee assistance program?
a. ) Create an RFP
b. ) Conduct on-site visits
c. ) Analyze needs and define goals
d. ) Contact potential vendors
c.) The first step in the vendor selection process is analyzing needs and defining goals.
Which of the following is the MOST important role HR can play in a major change initiative?
a. ) Communicate regularly with employees
b. ) Assume responsibility for implementing the change
c. ) Question whether the change is needed
d. ) Counsel people who are upset by the change
a. ) There are five common imperatives for change management:
* Create awareness of the need for change
* Create a vision of where you want to go
* Facilitate change
* Motivate employees
* Incorporate the change into the organization’s culture and structures
Which of the following HR activities should NOT be outsourced?
a. ) Payroll administration
b. ) Creating of online employee manuals
c. ) Relocation programs for employees
d. ) Development of goals and strategies for improving workforce skills
d.)
Which of the following is an example of strategy development?
a. ) A company allocates resources to enable it to reach a new market for its products.
b. ) A company decides to market its products internationally.
c. ) A company motivates employees to increase international sales.
d. ) A company decides to cut back on its international advertising campaign.
b. ) The following activities occur in Phase 2 of the Strategic Planning Process, the strategy development:
* The organization’s internal strengths and weaknesses and external opportunities and threats are analyzed. (An environmental scan is usually necessary to supplement this analysis.)
* Long-term organizational objectives are established ( ex. A company decides to market its products internationally.)
* Strategies to achieve those objectives are defined.
An organization hires only experienced, top-performing people who tend to stay with the company for ten years or more. An organization would consider this situation a(n):
a. ) strength.
b. ) weakness.
c. ) opportunity.
d. ) threat.
a.) In Strategy Development, Phase 2 of the Strategic Planning Process involves conducting an analysis of the organization’s strengths and weaknesses and external opportunities and threats.
This is referred to as SWOT analysis;
S - Organization’s internal strengths
W - internal weaknesses
O - external opportunities might move the organization forward
T - external threats might hold the organization back
A paper products company divides its business into commercial and consumer divisions. The commercial division decides to expand its market share by forming key account teams to provide its most important customers with better services. this is an example of:
a. ) organizational strategy.
b. ) business unit strategy
c. ) corporate vision.
d. ) functional strategy.
b.) A specific subunit of an organization is often referred to as a business unit or profit center.
Strategic decisions at this level concentrate on the best way for the organization to compete in the specific markets in teh organizational strategy.
A short-term objective is generally completed within
a. ) one month
b. ) six months to one year
c. ) one to two years.
d. ) three to five years.
b.) Short-term objectives must be achieved in order to reach the long-term objectives’ usually within six months to a year.
They are set at functional level but are aligned with the organization’s and/or usiness unit’s long-term objectives.
Which of the following trends in technology has occurred in business management in the last decade?
a. ) Mobile computing
b. ) Stand-alone T systems for functions within an organization
c. ) Less vulnerability to exterior threats
d. ) Less retention of data
a.) According to Baseline’s 2011 survey 27% of the surveyed organizations supported mobile computing by employees. As mobile devices proliferate and as telecommuting and hoteling increase, organization’s IT functions and systems must find ways to integrate mobile computing devices.
A mission statement does not need to include:
a. ) what the company does.
b. ) time frame for completion.
c. ) where the company is headed.
d. ) who its customers are.
b.) In the Strategy Planning Process, Phase 1: Strategy Formulation stage involves developing the organization’s vision and mission statements and defining the organizational values.
A mission statement specifies what activities the organization intends to pursue and what course management has charted for the future. The general outline includes:
- who the company is
- what the company does
- who the company’s customers are
A company that emphasizes training to maintain workforce flexibility and improve productivity is in which phase of organizational development?
a. ) Introduction
b. ) Growth
c. ) Maturity
d. ) Decline
c.) Maturity, Phase 3 of The Evolution of Organizations is characterized by already resolved scheduling problems, and staffing and organizational cultures begin to establish.
Policies, procedures, and rules and organizational cultures begin to stabilize. The organization is probably introducing additional produces and services.
Training gains added emphasis in this phase to maintain the flexibility ad skills of the workforce and improve productivity.
Labor cost control becomes a factor.
Which of the following is NOT a part of strategy evaluation?
a. ) Take corrective action
b. ) identify threats or opportunities.
c. ) Measure organizational performance.
d. ) Determine which people are not performing well.
b. ) Strategy Evaluation, Phase 4 of the Strategic Planning Process includes:
* reviewing strategies
* measuring performance
* taking corrective action
Identifying Strengths or opportunities is part of SWOT analysis, Strategy Development, Phase 2 of the Strategic Planning Process.
Which of the following actions might be a likely way to increase employee engagement?
a. ) Promote a higher degree of managerial control.
b. ) Pay higher wages
c. ) Explore employee values and needs
d. ) Use a flat organizational structure
c.) the culture and spirit of tan organization reside in its employees.
Fro an HR perspective, managers should recognize and take advantage of human capital and focus on
- Identifying values that employees are looking for
- aligning recruitment with the strategic plan to identify and hire the types of employees the organization will need in the future
- developing innovative organizational development programs
A company that increase recruitment and selection efforts to staff new positions is in which phase of organizations development?
a. ) Introduction
b. ) Growth
c. ) Maturity
d. ) Decline
b.) Growth, Phase 2 of Evolution of Organizations is characterized by change and expansion in terms of facilities, marketing, and people to keep with the demand for products or services.
This phase is often accompanied by backlogs and scheduling problems while the organization adjusts to increased demands.
Recruitments and selection efforst are increased to staff new positions.
An organization’s debts are referred to as its:
a. ) assets.
b. ) liabilities.
c. ) equities.
d. ) receivables.
b.) Liabilities is what the organization owes.
Liabilities can include items such as rent, loans or notes, ages and benefits that have been earned but not yet paid, reserves set aside to cover potential liabilities, unpaid fines or legal judgements, tax debts, and accounts payable.
An employee who designs and develops sales training programs reports to both the executive Vice President of sales and the Vice President of human resources. This is an example of what type of organizational structure?
a. ) Functional
b. ) Divisional
c. ) Matrix
d. ) Task
c.) In the Matrix type of organizational structure employees report to two managers.
The matrix structure combines departmentalization by division and function to gain the benefits of both. It creates a dual rather than single chain of commend.
Which of the following describes the competitive strategies of an organizational committed to differentiation?
a. ) Controlling costs, retaining key people, determining compensation strategy, and cross-training employee
b. ) Exploiting all economics of scale and focusing on low-cost production to the exclusion of everything else.
c. ) Positioning unique product characteristics that customers will value and pay a premium price for
d. ) Formalizing policies, procedures, and rules and communicating them to all employees.
c.) In a Differentiation-Type of Competitive Strategy, the organization attempts to set product or service apart from its competition by giving it unique characteristics that consumers value and for which they will be willing to pay a premium price.
These include product features, the marketing approach, quality, and the delivery channel.
The FLSA requires employers to pay nonexempt employees for time spent:
a. ) At home while waiting to be called to work
b. ) At work reading a book while waiting for an assignment
c. ) Attending a voluntary training program
d. ) Commuting to work
b.) A nonexempt employee who is waiting for an assignment while at work must be paid for the time spent waiting.
What separates a profession from an occupation?
- National organization
- Code of ethics
- Research
- Body ok knowledge
- Credentialing
What does VUCA acronym stand for?
V Volatile (zmienny, lotny, ulatniajacy sie)
U Uncertain
C Complex
A Ambiguous (niejasny, dwuznaczny, metny)
Accounts payable
Money an organization owes its vendors and suppliers
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
- A non-biding vote for shareholders on executive compensation and golden parachutes
- Public companies implement policies to take back executive compensation if it was based on inaccurate financial statements or statement that do not comply with accounting standards
- Creation of an office of Minority and Women Inclusion
- Encouragement for whistleblowers reporting securities violations
- Public disclosure of any payments made to U.S. and foreign governments relating to the commercial development of natural gas, oil, and mineral extraction sectors
Accounts receivable
Money an organization’s customers owe the organization.
Action plans
Detailed steps a unit, department, or team will take in order to achieve short-term objectives.
According to OSHA inspection priorities, which type of workforce hazard receives first priority for an inspection?
a. ) Catastrophes and fatal accidents
b. ) Programmed high-hazard inspections
c. ) Imminent danger
d. ) Employee complaints
c.) OSHA inspections that will prevent injury or illness receive first priority for OSHA inspections. An imminent danger is one that has a reasonable certainty of death or serious injury occurring before normal enforcement procedures can occur.
Catastrophic and fatal accidents are given second priority
Employee complaints receive third priority
Programmed, high-hazard inspections receive fourth priority
Assets
Financial, physical and sometimes intangible properties an organization owns.
Balanced scorecard
Measurement approach that provides an overall picture of an organization’s performance as measured against goals in finance, customers internal business business processes, and learning and growth.
Baby boomers
Group of people born between the years 1946 and 1964
Balance sheet
Statement on a firm’s financial position at a particular time.
Break-even analysis
Analysis that shows point in time at which total revenue associated with a program is equal to the total cost of the program.
Break-even point= Cost/Savings x Time
ex: annual cost=$35,000
expected to generate in return a savings of $40,00 the first year
$35,000/$40.000= .875
.875 x 12 months = 10.5 months
Business case
Description of an organizational challenge and possible alternative solutions, arguing for a specific solution.
Which of the following is an example of a non qualified deferred compensation plan?
a. ) An excess deferral plan
b. ) A target benefit plan
c. ) A money purchase plan
d. ) A cash balance plan
a.) An excess deferral plan makes up the difference between what an executive could have contributed to a qualified plan if there had not been a limit on contributions and how much was actually contributed because of the discrimination test required by ERISA. These plans are non-qualified because they are not protected by ERISA; they are limited to a small group of executives or highly compensated employees.
A target benefit plan is a hybrid with elements of defined benefits and money purchase plan.
A money purchase plan defers a fixed percentage of employee earnings.
A cash balance plan combines elements of defined benefits and defined contribution plans.
Cash flow statement
Record of how much cash is flowing into and out of an organization, including its sources or destinations.
Divestiture
(zbyt)
Sale by a company of an asset that is not performing well, that is not core to the company’s business, or that is worth more as a separate entity.
Cost benefit analysis
Ratio of value created to cost of creating that value.
it allows management to determine the financial impact particular activity and programs have on an organization’s profitability.
Environmental scanning
Process that involves a systematic survey ad interpretation of relevant data to identify external opportunities and threats.
Due diligence
Process of conducting an intensive investigation of an organization as one of the first steps in a pending merger or acquisition.
Equity
Amount of owner’s or shareholders’ portion of a business
Extended organization
Alliance between organizations to create processes and information channels that allows communication and collaboration.
What is an Excelsior list?
a. ) A list of all employees in the bargaining unit provided by the employers to the union within seven days of the scheduling election by the NLRB.
b. ) A list of the employees who do not want the union to represent them.
c. ) A list of the employees who have signed authorization cards for the union.
d. ) A list of all employees in the bargaining unit provided by the union to the employer within seven days of the scheduling of an election by the NLRB.
a.) Once an election has been scheduled, the employer must provide a list, known as an Excelsior list, containing the names and address of all employees in the bargaining unit determined by he NLRB.
Financial ratios
Calculations designed to describe an organization’s financial health and performance from various perspectives.
Formula budgeting
Form of budgeting in which an average cost is applied to comparable expenses and general funding is changed by a specific amount.
Gantt chart
Project planning tool that graphically displays activities of a project in sequential order and plots them against time.
Gross profit margin
Ratio of gross profit to net sales.
Income statment
Statement comparing revenues, expenses, and profits over a specified period of time, usually a year or a quarter.
Liabilites
Organization’s debt and other financial obligations.
Inventory
to an operations department, an organization’s major asset after physical building and equipment.
Matrix structure
Organizational structure that combines departmentalization by devision and function to gain the benefits of both.
Mission statement
Specifies what the organization does, who its customers are, and the priorities it has set in pursuing its work.
Mergers and acquisitions (M & A)
Combination of two separate firms either by their joining together as relative equals (merger) or by acquiring the other (acquisition)
Net profit margin
Ratio of net income (gross sales minus expenses and taxes) to net sales
PERT
Program Evaluation and Review Technique chart
PERT chart
Program evaluation and review technique chart
Project management tool used to schedule, organize, and coordinate tasks within a project.
Project
Series of tasks and activities that has a stated goal objectives , a schedule with defined start and end dates, and a budget that sets limits on the use of monetary human resources.
Series of tasks and activities that has a stated goal objectives , a schedule with defined start and end dates, and a budget that sets limits on the use of monetary human resources.
Project
Quantitative analysis
Seeks to obtain easily quantifiable data on a limited number of measurement points.
Collects and analyzes numerical data in a descriptive or inferential manner.
Uses: describe group, compare results, identify trends or commonalities
Ex: charts and graphs, statistical measures, regression analysis
Regression analysis
Statistical method used to predict a variable from one or more predictor variables.
Determines:
- whether a relationship exists between variables
- the strength of the relationship
A causal relationship exists when two variables are related in some way; conditions:
- The has to be evidence of association
- The dependent variable has to change in a consistent way after the independent variable has changed
- All other possible causes for the change have to be eliminated
Scatter diagram
Diagram that shows the relationship between data items using x and y axes.
Return on investment
(ROI)
Ratio of incremental value (value received minus cost to create value) of an investment / cost of investment multiplied by 100%; measures the economic return on a project investment.
- ROI focuses on fewer and more tangible costs and results
- shows efficiency with which the organization uses resources available for investment (enough value to be worthwhile?)
- Presents data as percentage
- “hurdle rate” is minimum ROI organization requires form projected investments.
Short-term objective
Milestones that must be achieved, usually within six months to a year, in order to reach long-term objectives.
Strategic business management
Processes and activities used to formulate HR objectives, practices, and policies.
Strategic planning
Process that helps an organization focus on how to succeed in the future by evaluating the organization’s current status, where it would like to be, and how to get there.
Span of control
Refers to the number of individuals who report to a supervisor.
Strategies
Provide the direction that enables an organization to achieve its long-term objectives.
When the NLRA imposes a voluntary recognition bar, this means that:
a. ) No election will take place for a reasonable period of time
b. ) The NLRB has certified a bargaining representative.
c. ) The union withdrew its petition for an election.
d. ) A representation election took place within the previous 12 months.
a.) The NLRB imposes a voluntary recognition bar while negotiations take place between the union and an employer that voluntarily recognized the union.
ERISA requires employers to communicate their benefits program in
a. ) annual and quarterly reports
b. ) the employee handbook
c. ) a summary plan document
d. ) company newsletter
c.) a summary plan document
The summary plan description is an important document that tells participants what the plan provides and how it operates. It provides information on when an employee can begin to participate in the plan, how service and benefits are calculated, when benefits becomes vested, when and in what form benefits are paid, and how to file a claim for benefits. If a plan is changed, participants must be informed, either through a revised summary plan description, or in a separate document, called a summary of material modifications, which also must be given to participants free of charge.
SWOT analysis
Process for evaluating an organization’s current strengths, weaknesses, opportunities, and threats.
Used in project or a business venture.
Zero-based budgeting
Form of budgeting that requires that expenditures be justified for each new period.
Supply chain
Network that delivers products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash.
In Abraham Maslow’s (1954) Hierarchy of Needs, identify five levels of needs that motivate people:
- Physiological needs (food, place to live)
- Safety needs (safe from physical and emotional harm)
- Social needs (desire for acceptance and belonging within their social group)
- Esteem needs (recognition for their achievements)
- Self-actualization needs (looking for opportunities to be creative and fulfill their own potential)
Divisional Structure
Organizational structure in which segments are separated by product, customer or market, or region.
It is more decentralized than others. HR would most likely report to the general manager of the business unit.
Tendencies:
- Emphasis on flexibility and adaptability to the needs
- Lag in the technical quality of products and services
- Difficulty in coordination across divisions.
Functional structure
In functional structure, departments are defined by what services they contribute to the organization’s overall mission.
Tendencies:
- Emphasis on quality from a technical standpoint
- Rigidity (sztywnosc) in regard to change
- Difficulty in coordinating the action of different functional areas
Formalization
In a formalization aspect of organizational structure, individuals are expected to follow policies and procedures. There is little discretion over how to perform their work.
Formalization may serve well when uniformity is imperative (ex. compliance).
A general trend in organizational structure is to move away form formalization.
What are the basic concepts of
Fredrick Herzberg’s Motivation / Hygiene Theory (1959)
(also known as the Two-Factor Theory)
What makes people happy is what they do or the way they are utilized; and what people unhappy is the way they are treated.
While both factors motivate workers, they each work for very different reasons.
The satisfaction (motivation) factors motivate by changing the nature of the work so that people are challenged to develop their talents and fulfill their potential. Lead to longer-term job satisfaction.
The dissatisfaction (hygiene) factors motivate to the extent that they allow people to avoid unpleasant experiences. Provide short-term benefits to employers.
