Structure of the HR Function Flashcards

1
Q

1.A global organization groups its core functions by service line. Which of the following best describes this organizational structure?

A. Geographic

B. Functional

C. Hybrid

D. Product

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1196). McGraw-Hill Education. Kindle Edition.

A

1.D is correct. An organization with a product structure empowers each product line to make decisions that affect the profitability and efficiency of delivery. This type of organization may be domestic or global. Each service line is supported by the relevant core business functions such as manufacturing, human resources, IT, marketing and sales, finance and accounting, and operations. This structure supports better collaboration and agile responses to opportunities and threats in the internal and external business environments.

A, B, and C are incorrect.
A is incorrect because a geographic structure is divided by geographic regions. Each region is self-supporting by all relevant core business functions—HR, IT, marketing, and so on.

B is incorrect because a functional structure is one where the core business functions of marketing, operations, and so on are individual departments that provide services to the overall organization.

C is incorrect because a hybrid structure has components of product, functional, and geographic structures. An example of a hybrid structure is matrix, which is characterized by dual chains of command.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1234-1235). McGraw-Hill Education. Kindle Edition.

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2
Q

2.Which of the following performance measures includes metrics in the areas of financial performance, customer satisfaction, efficiency of internal business processes, and company learning and growth?

A. Balanced scorecard

B. Benchmarking

C. HR audit

D. Lean Six Sigma

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1196). McGraw-Hill Education. Kindle Edition.

A

2.A is correct. A balanced scorecard is a strategic management system. It may include both nonfinancial measurements and traditional financial metrics. It is used to provide a concise picture of the organization’s overall performance and includes performance metrics from four perspectives: financial, customers, learning/growth, and internal business processes.

B, C, and D are incorrect.
B is incorrect because benchmarking is part of an HR audit. Planning of the audit process, whether internal or external, requires that the auditor set points of reference against which areas to be audited can be compared.

C is incorrect because an HR audit is another type of performance measure that is systematic and comprehensive. There are various types of HR audits whose purpose is to evaluate areas where the organization may be vulnerable to litigation.

D is incorrect because Lean Six Sigma is a quality management methodology that systematically improves, optimizes, and stabilizes business processes and design by utilizing the Define, Measure, Analyze, Improve, and Control (DMAIC) model. The Lean Six Sigma methodology focuses largely on collaboration and team effort to accomplish the goal of better efficiencies in business processes.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1235-1236). McGraw-Hill Education. Kindle Edition.

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3
Q

3.Which of the following HR organizational models would work best for an organization with multiple business units?

A. Centralized HR

B. Decentralized HR

C. Shared services

D. Functional HR

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1196-1197). McGraw-Hill Education. Kindle Edition.

A

3.C is correct. A shared services model works best in organizations with multiple business units because each business unit can supplement its resources by selecting administrative services from a menu of options available in the shared services group. Typically, the HR administrative functions that are targeted for consolidation are payroll and benefits administration. This reduces redundant functions throughout the organization and improves the tracking of employee data, which aids in future reporting requirements and data analysis used for strategic decision making. The focus away from redundant administrative tasks allows the organization to focus on value-creating activities.

A, B, and D are incorrect. They are incorrect because whether the model is centralized, decentralized, or functional, the shared services model offers cost savings that neither of these models can.
In a centralized model, there is greater consistency across the organization with respect to policies and procedures.
In a decentralized model, where each part of the organization controls its own HR issues, there is greater communication and responsiveness, but there may be a lack of consistencies among HR policies and procedures in each location.
A functional HR structure is typically found in organizations that are not very diversified.
A functional structure supports consistency but often causes disconnects between HR and locales.

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4
Q

4.What is the purpose of performing an HR audit?

A. Quantify HR’s strategic value

B. Identify gaps in HR processes

C. Determine HR strategic goals

D. Reduce HR-related costs

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1197). McGraw-Hill Education. Kindle Edition.

A

4.B is correct. The main purpose of an HR audit is to identify gaps in HR practices and processes. There are several types of audits such as compliance, best practices, strategic, and function-specific. An HR audit follows a systematic process that identifies gaps and then develops action plans to address those gaps. HR audits aid in fostering a climate of continuous improvement in an organization.

A, C, and D are incorrect. They are incorrect because quantifying HR’s strategic value, determining strategic goals, and reducing HR-related costs may all be partial outcomes of an audit but not the sole intended purpose of the audit.
An audit is conducted to identify gaps.
For example, a gap that is uncovered may be that there is a particular process that is inefficient and therefore driving up recruiting costs.
An action item created to address that gap may be to reduce the time to hire by 25 percent.
That action item could then be included as part of HR’s strategic goals and, in turn, show HR’s strategic value to an organization.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1236-1237). McGraw-Hill Education. Kindle Edition.

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5
Q

5.Which of the following best describes HR’s primary contribution to an organization’s strategic plan?

A.HR serves the needs of the entire organization as subject matter experts (SMEs).

B.HR provides the executive team with a menu of administrative tasks that it can execute more efficiently.

C.HR interprets various HR metrics for the executive team to show how HR creates value to the organization.

D.HR utilizes its “seat at the table” to share how additional HR staff can support the organization by providing better customer service.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1197). McGraw-Hill Education. Kindle Edition.

A

5.A is correct. HR’s efforts to show how they are a strategic partner is best expressed to upper management in terms of how HR can partner/support the entire organization at both a functional and strategic level. It is best for HR employees to take a consultative approach by positioning themselves as subject matter experts (SMEs) in the areas of workforce planning and retention, employee relations, and performance management, with the ultimate mission of supporting the creation and maintenance of an engaged workforce.

B, C, and D are incorrect. They are incorrect because while these are all important components to the effective and efficient functioning of human resources, the focus on the needs of human resources during the strategic planning process should not be presented first in discussions.
Often this causes an irreparable breakdown in communication between HR and functional leaders.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1237). McGraw-Hill Education. Kindle Edition.

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6
Q

6.To provide expert consultation to the organization, an HR professional must understand how other functions in the organization perform their work. Which of the following is a core business function typically found in organizations?

A. Sales and marketing

B. Information technology

C. Operations

D. All of the above

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1197). McGraw-Hill Education. Kindle Edition.

A

6.D is correct. All the choices listed are core business functions that an HR professional can expect to encounter in every organization.
Core business functions that are found in every organization are sales and marketing, information technology, production/operations, finance and accounting, and research and development.
The names of the functions vary depending on the industry and whether the organization is a private or public entity.
For example, in a public school district, research and development may be the curriculum department, but at a pharmaceutical company, it may actually be called research and development.
For an HR professional to display credibility and expertise, it is critical that there is a solid understanding of how each function executes their contribution to the organization.

A, B, and C are incorrect.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1237-1238). McGraw-Hill Education. Kindle Edition.

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7
Q

7.During a weekly board meeting at a management consulting firm, executives discuss a change to their service delivery model in order to be more responsive to their clientele. The R&D lead says that she is willing to end direct contact with the client but feels uneasy about the sales department being able to articulate the needs of the client to her division. The sales lead acknowledges her concern but reassures his team has taken the time to learn the product line and can share information to the client and R&D that will only improve communication and increase the bottom line. Which phase of the negotiation process are the executives actively engaged in?

A. Agreement

B. Information exchange

C. Concessions

D. Relationship building

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1197-1198). McGraw-Hill Education. Kindle Edition.

A

7.B is correct. There are six phases in the negotiation process.
HR professionals must have the ability to guide other executives through the process to reach the point of agreement.
The phase in which all parties are explaining their positions so that there is a better understanding of needs with the goal of taking a balanced approach to reaching some resolution is called information exchange.
This is the third phase of the negation process.

A, C, and D are incorrect. They are incorrect because they represent other phases of the negotiation process.
The negotiation phases are 1) preparation, 2) relationship building, 3) information exchange, 4) persuasion, 5) concessions, and 6) agreement.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1238). McGraw-Hill Education. Kindle Edition.

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8
Q

8.A unionized bakery is acquired by a nonunion bakery in an at-will employment jurisdiction. As part of the due diligence process, what financial risks should HR give consideration to and why?

A.There are no financial risks. Employees of the acquired company will maintain their current rate of pay since they are no longer represented by a collective bargaining agreement.

B.There are no financial risks. The profits from the acquired company will adequately cover the costs of salaries and associated benefits of the acquired employees.

C.HR should review the full cafeteria of pay increases and benefits agreed upon in the existing collective bargaining agreement to ensure all risks are understood because the organization may have to honor those agreements for a specified period of time.

D.HR should review the full cafeteria of pay increases and benefits agreed upon in the existing collective bargaining agreement for the sole purpose of crafting communication to the newly acquired employees about how their compensation plan will change now that they are a part of a new organization.

A

8.C is correct. Due diligence is the exhaustive investigation of all aspects of a business decision in an effort to uncover all associated risks. In this case, the company that acquires the unionized bakery will need to be aware of the details of any collective bargaining agreement in place at the time of the sale. During the negotiation process for the sale of the business, there needs to be a discussion with the union regarding the future of union representation of the new company and whether the CBA will remain in place for the duration of time negotiated. Whatever the final decision, it is prudent for HR to be aware of any pay increases, benefits, pension, or other financial arrangements agreed upon in the CBA because this may have to be factored into the personnel budget and affects future workforce staffing decisions.

A, B, and D are incorrect.
A and B are incorrect because there are always financial risks associated with the acquisition of another organization. In addition, a collective bargaining agreement should be reviewed carefully and discussed thoroughly because it is most likely that any agreed-upon financial considerations for employees will have to be honored by the new company.

D is incorrect because it is true that HR will need to be aware of anything that will affect an employee’s pay and will have to determine the methods and mode of communication used to ensure that the newly acquired employees are aware of any changes that affect them. However, this choice is not the best choice because the considerations for HR need to be more comprehensive. HR’s understanding of the financial implications of this acquisition to employees goes further than just for the purpose of developing communication about the changes.

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9
Q

9.During the budget review process in a mature organization, it is determined that there are ten information technology (IT) budgeted positions that are unfilled but only enough money in the budget to fill six of those positions. A deeper analysis of the budget reveals that new hires for this fiscal year are being paid at a rate higher than originally budgeted for because management claims that it has been difficult to find IT professionals with the skill set needed at the original budgeted salaries. How should HR advise senior management if the goal is to fill the remaining ten positions this fiscal year?

A.Hire an outside recruiting agency because they have access to more qualified candidates

B.Hire less skilled IT staff and invest in training

C.Postpone the start of projects because of the lack of staff

D.Approach new hires with this dilemma and get them to agree to a temporary pay reduction

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1199-1200). McGraw-Hill Education. Kindle Edition.

A

9.B is correct. HR should advise management to evaluate the skill set necessary to be successful in the IT department, given the projects on the horizon, now that there has been the addition of staff with higher-level skills during this fiscal year. Since this is a mature organization, it can afford to hire a less skilled staff and invest in that staff’s training and development.

A, C, and D are incorrect.
A is incorrect because there is no guarantee that a recruiting agency can locate any more qualified candidates than the organization has already connected to. In addition, a recruiting agency charges a fee, which may negate any benefit gained from hiring a person at a lower salary.

C is incorrect because postponing projects may cause the organization to lose a competitive advantage in the external market.

D is incorrect because it is highly unlikely newly hired staff would agree to a pay decrease, and if they do, it is highly likely this will cause them to become disengaged and start the process of seeking employment elsewhere. The cost to replace this labor will far outweigh any temporary salary expense savings the company would realize.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1239-1240). McGraw-Hill Education. Kindle Edition.

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10
Q

10.A multinational firm has HR representatives in each geographic location, which has worked well to support collaboration among local business functions. However, many HR administrative tasks are duplicated throughout the organization. As the HR executive, what structural changes would you make to the HR function that could create economies of scale while continuing to encourage collaboration between local business units?

A. Implement a functional HR structure

B.Implement a Center of Excellence (COE) structure

C. Implement a dedicated HR structure

D. Implement a decentralized HR structure

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1200). McGraw-Hill Education. Kindle Edition.

A

10.B is correct. A Center of Excellence (COE) will accomplish the strategic collaboration desired between business functions and reduce the number of repetitive administrative tasks performed by the localized HR units. In a Center of Excellence structure, transactional HR work such as payroll processing or benefits administration is handled in a central location to reduce the amount of repetition and create efficiencies. The HR function can focus on remaining current and providing contemporary solutions to business units in areas such as performance management, talent acquisition, and succession planning.

A, C, and D are incorrect.
A is incorrect because a functional structure promotes a centralized HR model where policies and procedures are developed by an HR team located at the corporate headquarters. This structure often causes the perception that HR does not have a realistic view or understanding of the challenges faced by business units.

C is incorrect because a dedicated HR structure does promote better collaboration between HR and business units, but often the dedicated HR staff is disconnected from HR practitioners located in other geographic areas. This leads to a loss of shared knowledge and expertise, which ultimately causes inefficiencies because many administrative functions of HR are duplicated or not performed as efficiently.

D is incorrect because a decentralized structure presents challenges to increasing efficiencies just like a dedicated HR structure does. There is high collaboration between HR and other business units, but each location completely controls its HR function, so there may be considerable redundancy in tasks across the enterprise, and the implementation of HR policies and procedures may be inconsistent across the organization.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1240). McGraw-Hill Education. Kindle Edition.

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11
Q

11.The executive board of a home improvement store considers franchising. What would be the best organizational structure?

A. Centralized

B. Decentralized

C. Matrix

D. Functional

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1200). McGraw-Hill Education. Kindle Edition.

A

11.B is correct. A decentralized structure is best for franchises or any organization with a wide geographic reach. The corporate office provides support in the form of product development and national marketing, but the franchise owner has the independence to make decisions based on knowledge of the local market.

A, C, and D are incorrect.
A is incorrect because a centralized structure is most appropriate for small businesses or companies with a small geographic reach.

C is incorrect because matrix organizations are a combination of centralized and decentralized models where an employee may report to multiple supervisors or report into multiple divisions. This level of complexity is not best for a franchise.

D is incorrect because a functional structure refers to a structure that is set up along business units or functional areas. This structure works best in companies that are not very agile and focus on a single product or service.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1240-1241). McGraw-Hill Education. Kindle Edition.

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12
Q

12.A hardware company wants to cut the HR training budget to save money during an economic downturn. Which of the following will help you show a return on investment for the CEO?

A.Number of additional hammers produced, cost to produce training materials

B.Cost to produce training materials, overall sales of hammers

C.Net profits, cost to produce training materials

D.Cost to produce training materials, training budget

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1200). McGraw-Hill Education. Kindle Edition.

A

12.A is correct. ROI is calculated by dividing the output by the cost of the investment. In this case, the increased number of hammers produced divided by the cost of training employees on making hammers shows that investing in training is in the financial best interest of this company—a positive ROI.

B, C, and D are incorrect.
B is incorrect because the overall sales of hammers will not show the CEO how the hammer production training directly impacted an increase in sales. It simply shows that sales have increased overall.

C is incorrect because the overall sales of hammers will not show the CEO how the hammer production training directly impacted an increase in sales. It simply shows that sales have increased overall, which can be attributed to a number of factors.

D is incorrect because knowing the training budget does not aid the CEO in determining a training session’s effect on the bottom line.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1241). McGraw-Hill Education. Kindle Edition.

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13
Q

13.Which of the following best describes HR’s strategic role?

A.HR develops a change management plan to prepare all stakeholders for a merger.

B.HR trains project managers on the use of new templates.

C.HR rolls out a new employee perk.

D.HR provides one-on-one counseling to employees during benefits open enrollment.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1200-1201). McGraw-Hill Education. Kindle Edition.

A

13.A is correct because, as a strategic partner, HR is responsible for preparing the organization for change. Developing a change management plan falls within that scope.

B, C, and D are incorrect because all the choices are administrative or operational tasks that HR executes but are not necessarily strategic.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1241-1242). McGraw-Hill Education. Kindle Edition.

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14
Q

14.Which of the following is an example of HR’s cross-functional relationship with research and development?

A.HR ensures that security policies are current and followed consistently across the organization.

B.HR develops and implements a policy that allows employees to have unstructured work time to come up with new ideas.

C.HR recommends an executive coach for the new VP of Research and Development.

D.HR attends a training session on budgeting for the upcoming fiscal year.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1201). McGraw-Hill Education. Kindle Edition.

A

14.B is correct because unstructured work time for ideation supports the mission of the Research and Development group, whose goal is to enhance or introduce new products and services to the customer.

A, C, and D are incorrect.
A is incorrect because it describes the cross-functional relationship between HR and operations.

C is incorrect because HR is executing its role in the talent management space. The fact that the recommendation is for an employee in the Research and Development department is of no consequence.

D is incorrect for two reasons because this is a better description of HR’s cross-functional role with finance and accounting. HR is simply taking in information but not doing anything that materially affects the finance or accounting function.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1242). McGraw-Hill Education. Kindle Edition.

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15
Q

15.The accounting firm you work for has grown exponentially in the past six years. In a recent focus group, business units shared that HR support seemed negligible. You’ve been asked by the CEO to rethink the structure of your HR department to ensure that business units have the connection to HR they desire. What do you recommend?

A. Centralize the HR department

B. Develop a Center of Expertise

C. Implement a shared services model

D. Implement a dedicated HR structure

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1201). McGraw-Hill Education. Kindle Edition.

A

15.D is correct because an advantage of a dedicated HR structure is that HR support is delivered directly to a business unit. Business units have dedicated HR staff who are aligned to corporate strategy. Dedicated structures allow local business units to craft policies and procedures that maintain the spirit of corporate-level policies but are responsive to and support local practices.

A, B, and C are incorrect.
A is incorrect because centralizing the department doesn’t address the concern of HR’s accessibility and responsiveness to the needs of the business units.

B and C are incorrect. A Center of Expertise or Center of Excellence (COE) is a shared services model where HR support in specialty areas is leveraged by all business units. The more personalized attention the organization in the example seeks is not addressed by sharing HR resources.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1242-1243). McGraw-Hill Education. Kindle Edition.

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16
Q

16.In response to changes in the legal and regulatory health care environment, the hospital system you work for has experienced a dramatic decline in revenue. You have already laid off employees, reduced employee benefits, and reduced costs. The company leadership is now hopeful for a healthy financial future. What the company hasn’t done is worked as one cohesive organization and would like to take the opportunity to have a leaner organization to do so. What measurement approach would you recommend?

A. Success ratio

B. Training return on investment

C. Balanced scorecard

D. Human capital return on investment

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1201-1202). McGraw-Hill Education. Kindle Edition.

A

16.C is correct because a balanced scoreboard is used to gain a complete picture of the organization. It includes the financial, customer, business processes, and learning and growth perspectives of the organization.

A, B, and D are incorrect because while the success ratio, training return on investment, and human capital return on investment are all metrics that provide a better understanding of the organization’s health, they do not offer a full, in-depth, balanced picture of the overall organization.

Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1243). McGraw-Hill Education. Kindle Edition.