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Dario SPHR > Unit 1 - Business Mgmnt. Lead. & Strat > Flashcards

Unit 1 - Business Mgmnt. Lead. & Strat Flashcards

1
Q

Which HR costing activity would be ideal if a company wanted to evaluate the cost of a supervisor thoughtlessly criticizing an employee and the employee decided to quit?

A

Wayne Cascio framework ((44)

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2
Q

In Cascio’s framework, what are the four major cost categories of turnover?

A

Separation costs; replacement costs; training costs; loss performance (45)

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3
Q

In Cascio’s framework what are examples of separation costs?

A

Exit interviews, administrative functions, separation pay, and unemployment taxes (45)

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4
Q

In the Cascio framework what do replacement costs include?

A

Cost of recruiting and hiring a replacement (45)

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5
Q

The cost of orientation and on the job training are representative of what types of costs in the Cascio framework?

A

Training costs (45)

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6
Q

The difference in performance between the person who leaves and their replacement reflects which cost category in the Cascio framework?

A

Lost performance (45)

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7
Q

Using HR cost accounting frameworks to evaluate the impact of smoking on an organization can be useful when designing what?

A

Policies and employee assistance programs (45)

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8
Q

What are key performance indicators (KPI)?

A

Specific measures of human resource activity that contribute to efficiency and effectiveness of a company (45)

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9
Q

Why would an organization want to use key performance indicators (KPI)?

A

To provide quantitative measurements that can be used to monitor the events that contribute to long-term success (45)

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10
Q

What is a leading indicator?

A

A measure that precedes, anticipates, or predicts future performance (45)

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11
Q

In an organization, time to fill is an example of what kind of KPI?

A

Leading indicator (45)

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12
Q

What is a lagging indicator?

A

The results of a process or a change, such as sales, profits, and customer service levels (45)

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13
Q

The average number of units produced per employee is an example of what KPI?

A

Lagging indicator: this measures how well a company is increasing employee productivity (45)

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14
Q

Which KPI reflects bottom line success of a company?

A

Lagging indicator – executives rely on this to gauge their success (45)

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15
Q

In general, leading indicators are most useful when making what types of decisions?

A

Managerial decisions: since they predict future performance (45)

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16
Q

Collecting HR metrics and presenting them to managers in a useful format is referred to as what?

A

HR score card or HR dashboard (45)

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17
Q

HR score card includes what four perspectives?

A

Strategic, operational, financial, and customer (45-6)

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18
Q

In an HR scorecard this perspective measures progress in achieving major strategic initiatives?

A

Strategic (45)

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19
Q

In an HR scorecard operational perspective measures what?

A

Effectiveness of HR processes (45)

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20
Q

On an HR scorecard a financial perspective measures what?

A

Financial contribution of HR activities (45)

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21
Q

On an HR scorecard measuring how well HR activities serve both internal and External customers is which perspective?

A

Customer perspective(46)

22
Q

What is the primary benefit of an HR scorecard?

A

Allows managers to assess HR’s contribution to strategy implementation and to the bottom line (46)

23
Q

A useful HR scorecard reinforces the distinction between HR ____ and HR ____ and draws attention to results that HR activities are intended to produce?

A

Doable’s and deliverables (46)

24
Q

What is the formula to calculate revenue factor?

A

Revenue divided by total number of FTE (46)

25
Q

This metric is often used as a primary measure of effectiveness of a company representing how much revenue is generated by the average FTE?

A

Revenue factor (46)

26
Q

What is the formula to calculate revenue per labor costs?

A

Revenue divided by total labor costs (46)

27
Q

This metric is recommended as a better measure to track then revenue per FTE, motivating managers to reduce cost rather than FTEs?

A

Revenue per labor costs (46)

28
Q

Revenue factor views employees as a capital investment or an expense?

A

Capital investment (46)

Part-time employees are included in the FTE count proportional to the hours they work

29
Q

What does the following formula calculate?

[revenue - (operating expense - (compensation cost + benefit cost))] divided by (compensation cost + benefit cost)

A

Human capital ROI (47)

30
Q

What does human capital ROI measure?

A

Return on investment ratio for employees – frequently mentioned as a prime measure for analyzing HR practices (47)

31
Q

What is the formula for calculating human capital value added?

A

[revenue - (operating expense - (compensation cost + benefit cost))] divided by total number of FTE (47)

32
Q

This HR metric is interpreted as the value of the workforce is knowledge, skills, abilities, and performance

A

Human capital value added (47)

This metric also represents how much value is added to the company from the average employee

33
Q

Which HR metrics does the following formula calculate?

HR expenses/Total Employees

A

HR Expense factor

34
Q

This popular HR metric reflects the average cost of providing human resource services to employees in a company?

A

HR expense factor (47)

Fun fact: a study found that world-class HR organizations have a 23% lower cost of HR per employee and typical HR organizations

35
Q

Which HR metric does the following formula calculate?

[(Number of days absent in the month)/(average number of employees during month)x(Number of work days)]x100

A

Absence rate (47)

36
Q

What does the HR metric absence rate measure?

A

The standard measure of absenteeism – this metric can track effects of changes in attendance policies, attendance incentive programs, and other interventions (47)

37
Q

Which HR metric does the following formula calculate?

[Number of separations during the month/average number of employees during the month]x100

A

Turnover rate (47)

38
Q

This HR metric measures the rate that employees leave a company is usually divided into voluntary and involuntary reasons?

A

Turnover rate (47) - this magic is used to examine potential problems in HR policies

39
Q

This HR metric measures the costs associated with sourcing, Recruiting, and Staffing activities to fill open positions?

A

Cost per hire – CPH (47)

40
Q

What is the formula for calculating cost per hire (CPH)?

A

(external costs + internal costs) / Number of hires (48)

41
Q

When calculating cost per hire what are examples of external costs?

A

All recruiting costs: third-party agency fees, advertising costs, job fair costs, and travel costs (48)

42
Q

When calculating cost per hire what are examples of internal costs?

A

Salary and benefits of recruiting team plus fixed costs such as physical infrastructure(48)

43
Q

What does the following HR metric calculate?

(separation costs + replacement costs + training costs + lost performance)/Number of replacements

A

Turnover costs per employee (48)

44
Q

This HR metric represents average cost of replacing an employee who quits or is fired and is significant motivation for examining and improving HR practices that reduce turnover?

A

Turnover costs per employee (48)

45
Q

What is the formula for calculating time to fill?

A

Total days elapsed to fill requisitions/Number hired (48)

46
Q

What is the purpose of tracking time to fill?

A

Measures average time required to fill job openings and efficiency of hiring practices (48)

Yeah average time to fill is 42 days

47
Q

How do you calculate training investment factor?

A

Total training costs/Headcount (48)

48
Q

This HR metric represents the training cost per employee?

A

Training investment factor: changes to this metric should have corresponding changes to other metrics such as reductions in accidents following a safety training (48)

49
Q

What does the following HR metrics calculate?

Total cost of healthcare/total employees

A

Healthcare costs per employee (48)

50
Q

In what instances would healthcare costs per employee be important in communication with employees?

A

During labor union negotiations.
Generally employees need to know how this metric has changed over time and what they can do individually to reduce it (48-49)

51
Q

What HR metric does the following formula calculate?

Total employer benefits payments/total gross payroll

A

Employee benefits as a percent of payroll – sometimes called total benefit cost (49)

52
Q

What HR metric does the following formula calculate?

(total number of HR FTEs/total number of FTEs in the organization) x 100

A

HR-to-employee ratio (49)

Dario SPHR (3 decks)

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