2 - PROFESSIONAL PRACTICE

Question 1

What is the formula for:

Human Capital Value Added (answers the question “what are people worth?”)

Answer 1

Revenue - (Operating Expenses - [Compensation Cost + Benefit Cost]) / Total FTE

Question 2

What is the formula for:
Human Capital ROI (ratio of $ spent on pay and benefits to an adjusted profit figure)

Answer 2

Revenue - (Operating Expense - [Compensation Cost + Benefit Cost]) / (Compensation Cost - Benefit Cost)

Question 3

What is the formula for:
Total Compensation Revenue Percent (if you monitor pay and compensation to revenue per employee, you can set the return on your investment)

Answer 3

Compensation Cost + Benefit Cost / Revenue

Question 4

What is the formula for:
Total Labour Cost Revenue Percent (the complete cost of human capital)

Answer 4

Compensation Cost + Benefit Cost + Other Labour Costs / Revenue

Question 5

What is the formula for:
Hiring Expense Ratio

Answer 5

(Advertising + Agency Fees + Employee Referrals + Travel Costs of Applicants + Relocation Costs + Recruiter Pay and Benefits) / Operating Expenses

Question 6

What are the 5 general conflict management styles?

Answer 6

1) Compromising:
Moderate assertiveness and cooperation.Appropriate when dealing withissues of moderate importance, when you have equal power or when there is a strong commitment to resolution. Can also be used as a temporary solution when time constraints exist. Skills: Negotiating, finding a middle ground, assessing value and making concessions.

2) Collaborating:
High assertiveness and cooperation.The best solution is defined as a creative solution. Takes a great deal of time and energy.Most appropriate when the conflict is important and no compromises are desired or when merging perspectives, gaining commitment, improving relationships or learning are desired. Skills: Active listening, non-threatening confrontation.

• *3) Competing (aka Forcing):**
• *High assertiveness and low cooperation.** Appropriate when quick action needs to be taken or when unpopular decisions need to be made, vital issues handled or protecting self-interests. Skills: Arguing or debating, using rank or influence, standing your ground, asserting your opinion and feelings, stating your position clearly.

4) Avoiding:
Low assertiveness and low cooperation. People avoid conflicts out of fear of engaging or because of low confidence in their skills. Appropriate when issues are of low importance, to reduce tensions, buy some time or when in a position of lower power. Skills: Ability to withdraw, leave things unresolved, sidestep issues and sense of timing.

5) Accommodating:
Low assertiveness and high cooperation. appropriate to show reasonableness, develop performance, create goodwill, or keep the peace. Skills: Selflessness, ability to yield and obey orders.

Question 7

What are the 2 types of employee discipline?

Answer 7

1) Progressive
2) Positive

Question 8

What is broadbanding?

Answer 8

Collapses many traditional salary grades into a few wide salary bands.

Question 9

What is a behaviorally anchored rating scale (BARS)?

Answer 9

A behavioral approach to performance rating consisting of a series of vertical scales, one for each important dimension of job importance. Based on the critical incident method (a job analysis method by which important job tasks are identified for job success).

Question 10

What is a behaviour observation scale (BOS)?

Answer 10

A behavioural approach to performance rating that measures the frequency of observed behaviours. Based on the critical incident method (a job analysis method by which important job tasks are identified for job success).

Question 11

Compasatory model

Answer 11

A selection decision model in which a high score in one area can make up for a low score in another area.

Question 12

Contrast error

Answer 12

A performance rating error in which an employee’s evaluation is biased either upward or downward because of comparison with another employee just previously evaluated.

Question 13

criterion-related validity

Answer 13

The extent to which a selection tool predicts, or significantly correlates with, important elements of work behaviour.

Question 14

cross-validation

Answer 14

verifying the results obtained from a validation study by administering a test or test battery to a different sample (drawn from the same population)

Question 15

ergonomics

Answer 15

an interdisciplinary approach to designing equipment and systems that can be easily and efficiently used by human beings

Question 16

error of central tendency

Answer 16

a rating error in which all employees are rated about average

Question 17

essay method

Answer 17

a trait approach to performance rating that requires the rater to compose a statement describing employee behaviours.

Question 18

final offer arbitration

Answer 18

the arbitrator cannot compromise, only select one of the offers

Question 19

flow data

Answer 19

data that provides a profile of employment decisions affecting designated groups

Question 20

forced-choice method

Answer 20

a trait approach to performance rating that requires the greater to choose from statements designed to distinguish between successful and unsuccessful performance

Question 21

Forced distribution

Answer 21

a performance ranking system whereby raters are required to place a certain percentage of employees into various performance categories.

Question 22

global compensation system

Answer 22

host-country employees are offered the same as HQ employees but adjusted to local differences

Question 23

graphic rating scale method

Answer 23

a trait approach to performance rating whereby each employee is rated according to a scale of characteristics.

Question 24

Hay profile method

Answer 24

a job evaluation technique using three factors - knowledge, mental activity and accountability

Question 25

HRM (Human resources management)

Answer 25

Process of managing human talent to achieve an organization’s objectives

Question 26

HRP (Human Resources Planning)

Answer 26

Process of anticipating and providing for the movement of people into, within and out of an organization.

Question 27

Interest-based bargaining (IBB)

Answer 27

problem-solving bargaining based on a win-win philosophy and the development of a positive long-term relationship

Question 28

Job Analysis

Answer 28

Process of obtaining information about job by determining the duties, tasks or activities

Question 29

job characteristics model

Answer 29

Job design theory that purports that 3 psychological states (experience meaningfulness of the work performed, responsibility for work outcomes, and knowledge of the results of the work performed) of a jobholder result in improved work performance, internal motivation, lower absenteeism and turnover.

Question 30

job crafting

Answer 30

A naturally occurring phenomenon whereby employees mould their tasks to fit their individual strengths, passions and motives.

Question 31

Job evaluation

Answer 31

A systematic process of terminating the relative worth of jobs to establish which jobs should be paid more than others within an organization.

Question 32

Knowledge workers

Answer 32

Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making and problem-solving.

Question 33

Lenience or strictness error

Answer 33

A performance rating error in which the appraiser tends to give employees either unusually high or low ratings.

Question 34

Mediation

Answer 34

The use of an impartial neutral individual to reach a compromise decision in an employment dispute.

Question 35

Onboarding vs orientation

Answer 35

Onboarding is the process of systematically socializing the new employees to help them get “on board” with an organization.

Orientation is the process of familiarizing new employees with the organization, their jobs and work units.

Question 37

Percentage of designated groups in Canadian workforce

Answer 37

60%

Question 38

Job evaluation systems

Answer 38

Job ranking

Job classification

Point System