Organization

Question 1

HR Metrics: absence rate

Answer 1

number of days employees did not report to work divided by the number of employees

Question 2

HR Metrics: applicant yield ratio

Answer 2

percentage of applicants who move from one stage of the recruiting process to the next

Question 3

HR Metrics: human capital return on investment

Answer 3

comparison of employment expenses to revenue less nonemployment expenses

Question 4

HR Metrics: human capital value added

Answer 4

revenue generated less nonemployment expenses divided by number of full-time equivalents (FTEs)

Question 5

HR Metrics: promotion rate

Answer 5

percentage of internal promotions by protected class and as a whole

Question 6

HR Metrics: success ratio

Answer 6

percentage of new employees that are deemed to be successful in their job role

Question 7

HR Metrics: training return on investment

Answer 7

increased revenue as a direct result of training

Question 8

HR Metrics: transfer rate

Answer 8

percentage of employees entering internal roles; may be an indicator of successful succession planning programs or employee relations concerns

Question 9

HR Metrics: turnover costs

Answer 9

costs for replacing separated employees; may include recruiting, hiring, or training costs

Question 10

HR Metrics: turnover rate

Answer 10

percentage of employees leaving the organization

Question 11

5 HR department structures

Answer 11

1. Centralized
2. Decentralized
3. Functional
4. Dedicated
5. Shared services

Question 12

HR Structures: centralized

Answer 12

• HR staff is part of a centrally located department and provides services to the whole organization
• In larger companies, there is a corporate HR department that creates policies and makes all strategic HR decisions that are then executed by the HR department
• Benefits
− Operational efficiencies
− Standardization
• Drawback
− Inflexible communication
− Slower response times

Question 13

HR Structures: decentralized

Answer 13

• Each area has HR staff that executes corporate HR strategy and policies
• Benefits
− Improved responsiveness
− Efficient and timely communication
• Drawbacks
− Inconsistent policies or policy application

Question 14

HR Structures: Functional

Answer 14

• Corporate HR staffed with specialists who craft policies related to their particular HR discipline
• HR generalists assigned to business units who implement corporate policies

Question 15

HR Structures: Dedicated

Answer 15

• Corporate HR structure, complete with specialists and generalists
• Embedded HR and business units develop local HR policies and practices
• Benefits
− Ideal in organizations where business units have different strategies; allows the company to adapt corporate policies and apply HR expertise to the strategic needs of the specific business unit

Question 16

HR Structures: Shared Services

Answer 16

• Center of excellence
• Business units utilize a central HR location staffed with specialists to execute certain routine transactional activities, such as payroll or benefits administration
• Benefits
− Reduction in time spent on routine administrative tasks − Reduced administrative costs
− Consistent and more accurate employee data tracking

Question 17

HR Business Partners

Answer 17

• Internal HR consultants
• Represent HR services to assigned business functions and business functional leaders
• Possess a deep understanding of business operations and business strategy
• Key to demonstrating HR’s value throughout the company

Question 18

HR Managers

Answer 18

• Plan, direct, and coordinate activities for an HR function: employee relations, talent acquisition, and organizational development
• Provide input to HR leaders on strategy

Question 19

HR Specialists

Answer 19

• Functional experts (compensation and benefits design, talent management, workforce relations, etc.)
• Apply best practices to improve HR strategy in their areas

Question 20

HR Generalists

Answer 20

• HR practitioners
• Familiar with and proficient in all HR areas
• Expertise in one or more HR areas

Question 21

RACI

Answer 21

Responsible: Who is assigned to this task?

Accountable: Who has the authority to make decisions?

Consulted: Who will have more information about what’s required?

Informed: Whose work depends on this task? Who needs to be kept up to date?