Business

Question 1

What is business acumen?

Answer 1

Defined as the KSAOs needed to understand the organization’s operations, functions and external environment, and to apply business tools and analyses that inform HR initiatives and operations consistent with the overall strategic direction of the organization.

Key Concepts
⊲ Business terms and concepts
⊲ Examples include competitive advantage; profit and loss; revenue; financial projections; quality; service level agreements; strategic plans; fixed and variable costs; supply and demand; net income; key performance indicators
(KPIs)
⊲ Analyzing and interpreting business documents
⊲ Examples include strategic plans; contracts; grants; standard operating procedures; business plans; organizational charts; business continuity plans
⊲ Elements of a business case
⊲ Examples include executive summary; benefits; alignment with organization’s strategic goals
⊲ Business intelligence techniques and tools
⊲ Examples include analytical processing; business intelligence portals; predictive analytics; advanced analytics; trend analysis; scenario planning; balanced scorecard
⊲ Financial analysis terms and methods for assessing business health
⊲ Examples include balance sheets; budgets; cash flow statements; profit and loss statements; overhead; cash flow; cash reserves; return on investment (ROI); strengths, weaknesses, opportunities and threats (SWOT) analysis; sales pipeline; market position

Question 2

What is business and competitive awareness?

Answer 2

Understands the organization’s operations, functions, products and services, and the competitive, economic, social and political environments in which the organization operates.

PROFICIENCY INDICATORS FOR ALL HR PROFESSIONALS
⊲ Uses organizational and external resources to learn about the organization’s business operations, functions, products and services.
⊲ Uses organizational and external resources to learn about the political, economic, social, technological, legal
and environmental (PESTLE) trends that influence the organization (examples include automation, unemployment
trends, economic boom or recession, talent shortages).
⊲ Applies knowledge of the organization’s business operations, functions, products and services to implement HR solutions and inform business decisions.
⊲ Applies knowledge of the organization’s industry and PESTLE trends to implement HR solutions and inform HR decisions.

FOR ADVANCED HR PROFESSIONALS
⊲ Gathers and applies business intelligence about PESTLE trends to define HR’s strategic direction and long-term goals.
⊲ Applies expert knowledge of the organization’s business operations, functions, products and services when setting HR’s strategic direction and long-term goals.
⊲ Applies an understanding of the labor market when developing a strategy to manage and compete for talent.
⊲ Participates in advocacy activities involving government policy and proposed regulations related to the
organization’s HR strategies and long-term goals.

Question 3

What is business analysis?

Answer 3

Applies business metrics, principles and technologies to inform and address business needs.

PROFICIENCY INDICATORS FOR ALL HR PROFESSIONALS
⊲ Uses cost-benefit analysis, organizational metrics, key performance indicators (KPIs) and critical data insights to inform business decisions.
⊲ Applies principles of finance, marketing, economics, sales, technology, law and business systems to internal HR programs, practices and policies.
⊲ Uses HR information systems (HRIS) and business technology to solve problems and address needs.

FOR ADVANCED HR PROFESSIONALS
⊲ Designs, implements and evaluates HR initiatives with consideration of value added, ROI, utility, revenue, profit and loss statements and other business indicators.
⊲ Uses risk assessment to inform HR’s and the organization’s strategic direction and long-term goals.
⊲ Determines the budget and resource requirements of HR initiatives.
⊲ Uses HRIS and business technology to solve business problems and address needs.
⊲ Examines organizational problems and opportunities in terms of integrating HR solutions that maximize ROI and strategic effectiveness

Question 4

What is strategic alignment?

Answer 4

Aligns HR strategy, communications, initiatives and operations with the organization’s strategic direction.

PROFICIENCY INDICATORS FOR ALL HR PROFESSIONALS
⊲ Demonstrates an understanding of the relationship between effective HR and effective core business functions.
⊲ Aligns decisions with HR’s and the organization’s strategic direction and goals.
⊲ Creates and communicates the business case, or provides the data to build the case, for HR initiatives
and their influence on efficient and effective organizational functioning (such as ROI for HR initiatives).

FOR ADVANCED HR PROFESSIONALS
⊲ Defines and communicates HR’s and the organization’s strategy, goals and challenges in terms of business results.
⊲ Aligns HR’s strategic direction and long-term goals with the organization’s overall business strategy and objectives.
⊲ Applies the perspective of systems thinking to make HR and business decisions.
⊲ Drives key business results by developing strategies and long-term goals that account for senior leaders’ input.
⊲ Serves as a strategic contributor to organizational decision-making on fiscal issues, product/service lines, operations, human capital and technology.
⊲ Evaluates all proposed business cases for HR initiatives.

Question 5

What is consultation?

Answer 5

Defined as the KSAOs needed to work with organizational stakeholders in evaluating business challenges and identifying opportunities for the design, implementation and evaluation of change initiatives, and to build ongoing support for HR solutions that meet the changing needs of customers and the business.

Key Concepts
⊲ Organizational change management theories and models
⊲ Examples include Lewin’s change management model; McKinsey 7S model; Kotter’s 8-step change model; Kubler-Ross change curve
⊲ Organizational change management processes
⊲ Examples include obtaining leadership buy-in; building a case for change; engaging employees; communicating change; removing barriers
⊲ Consulting processes and models, including the contributions of consulting to organizational systems and processes
⊲ Examples include discovery; analysis and solution; recommendation; implementation
⊲ Effective consulting techniques
⊲ Examples include understanding organizational culture; understanding areas and limits of one’s own expertise; setting reasonable expectations; avoiding overpromising
⊲ Key components of successful client interactions
⊲ Examples include listening; empathy; communication; follow-up
⊲ Methods for design and delivery of HR service functions and processes
⊲ Examples include issue tracking; client service

Question 6

What does evaluating business challenges do?

Answer 6

Works with business partners and leaders to identify business challenges and opportunities for HR solutions.

PROFICIENCY INDICATORS FOR ALL HR PROFESSIONALS
⊲ Partners with stakeholders to understand the organization’s current and future HR challenges, and identify HR needs and opportunities for improvement.
⊲ Informs stakeholders about current and future HR-related threats and liabilities.
⊲ Advises stakeholders on existing HR programs, practices and policies that impede or support business success.

FOR ADVANCED HR PROFESSIONALS
⊲ Works with leadership to identify how HR can improve business outcomes and support the organization’s strategic direction and long-term goals.

Question 7

What is designing HR solutions?

Answer 7

Works with business partners and leaders to design HR solutions and initiatives that meet business needs.

PROFICIENCY INDICATORS FOR ALL HR PROFESSIONALS
⊲ Partners with stakeholders to suggest HR solutions that are creative,innovative, effective and based on best practices and/or research.
⊲ Provides guidance to non-HR managers regarding HR practices, compliance, laws, regulations and ethics.
⊲ Defines clear goals and outcomes for HR solutions, and uses them to drive solution design.

FOR ADVANCED HR PROFESSIONALS
⊲ Works with key internal stakeholders to identify initiatives that minimize threats and liabilities.
⊲ Determines the strategic approach to remediation of HR-related threats and liabilities.
⊲ Works with business leaders to create innovative, evidence-based talent management strategies that align with and drive the organization’s strategy.
⊲ Designs and oversees evidence-based long-term strategic HR and business solutions.

Question 8

What is advising on HR solutions?

Answer 8

Works with business partners and leaders as they implement and support HR solutions and initiatives.

PROFICIENCY INDICATORS FOR ALL HR PROFESSIONALS
⊲ Provides guidance to other HR professionals, non-HR managers and business unit teams on implementation of HR-related solutions.
⊲ Works with business partners to overcome obstacles to implementation of HR solutions.
⊲ Provides follow-up to and ongoing support for implementation of HR solutions to ensure their continued
effectiveness.
⊲ Ensures that the implementation of HR solutions adheres to defined goals and outcomes.

FOR ADVANCED HR PROFESSIONALS
⊲ Provides ongoing support and HR solutions to business unit leaders on the organization’s strategic direction.
⊲ Encourages staff and leaders to provide input on strategic HR and business decisions.
⊲ Works with leaders to overcome obstacles to implementation of HR initiatives.
⊲ Integrates HR solutions with related organizational processes, systems, and other business or management
initiatives

Question 9

What is change management?

Answer 9

Leads and supports maintenance of or changes in strategy, organization and/or operations.

PROFICIENCY INDICATORS FOR ALL HR PROFESSIONALS
⊲ Recommends ways to improve HR programs, practices and policies.
⊲ Promotes buy-in among organizational stakeholders when implementing change initiatives.
⊲ Builds buy-in among staff for organizational change.
⊲ Aligns and deploys HR programs to support change initiatives.

FOR ADVANCED HR PROFESSIONALS
⊲ Works with executives to identify when and where change is or is not needed.
⊲ Builds buy-in among leadership and staff at all levels for organizational change.
⊲ Defines change objectives and goals.
⊲ Oversees implementation of change initiatives across business units and throughout the organization.
⊲ Partners with business leaders to achieve change objectives and goals.
⊲ Provides support to HR staff at all levels during change initiatives.

Question 10

What is service excellence?

Answer 10

Provides high-quality service to all stakeholders and contributes to a strong customer service culture.

PROFICIENCY INDICATORS FOR ALL HR PROFESSIONALS
⊲ Identifies, defines and clarifies needs and requirements of stakeholders (examples include employees, candidates, vendors), and reports on the status of HR services provided and results achieved.
⊲ Responds promptly, courteously and openly to stakeholder requests, and takes ownership of stakeholder needs.
⊲ Identifies and resolves risks and early-stage problems in meeting stakeholder needs.
⊲ Manages interactions with vendors and suppliers to maintain service quality.

FOR ADVANCED HR PROFESSIONALS
⊲ Designs and oversees HR programs, practices and policies that ensure a strong, high-quality stakeholder service culture in the HR function.
⊲ Oversees HR’s stakeholder service objectives and outcomes.
⊲ Identifies larger system needs and issues influencing market requirements, and engages outside stakeholders to
help meet requirements that go beyond HR’s functional assignment.
⊲ Develops and promotes an organizational culture that excels at meeting stakeholder needs

Question 11

What is analytical aptitude?

Answer 11

Defined as the KSAOs needed to collect and analyze qualitative and quantitative data, and to interpret and promote findings that evaluate HR initiatives and inform business decisions and recommendations.

Key Concepts
⊲ Survey and assessment processes
⊲ Examples include development; administration; validation
⊲ Sources of data
⊲ Examples include interviews; focus groups; employee surveys; customer surveys; marketing data; analytical reports
⊲ Data analysis techniques and methods
⊲ Examples include data cleansing; data mining; visualization; big data analysis; statistical analysis; predictive analysis
⊲ Basic concepts in statistics and measurement
⊲ Examples include descriptive statistics; correlation; reliability; validity
⊲ Interpretation of graphs and charts
⊲ Examples include bar charts; line graphs; scatterplots; histograms
⊲ Using data to support a business case
⊲ Examples include interpretation; visualization; graphical representation; storytelling

Question 12

What is a data advocate?

Answer 12

Understands and promotes the importance and utility of data.

PROFICIENCY INDICATORS FOR ALL HR PROFESSIONALS
⊲ Demonstrates an understanding of the importance of using data to inform business decisions and recommendations.
⊲ Promotes the importance of evidence-based decision-making.
⊲ Promotes the importance of validating HR programs, practices and policies to ensure that they achieve desired
outcomes.
⊲ Identifies decision points that can be informed by data and evidence.

FOR ADVANCED HR PROFESSIONALS
⊲ Promotes the role of evidence in setting and validating HR’s strategic direction and long-term goals.
⊲ Supports an organizational culture that promotes the collection and incorporation of data (examples include risks, economic and environmental factors) into decision-making, and supports the organizational processes, policies and procedures to do so.
⊲ Promotes the use of HR metrics for understanding organizational performance.
⊲ Ensures that the HR function uses data to inform decision-making and the development and evaluation of HR
initiatives.

Question 13

What is the purpose of data gathering?

Answer 13

Understands how to determine data utility, and identifies and gathers data to inform organizational decisions.

PROFICIENCY INDICATORS FOR ALL HR PROFESSIONALS
⊲ Maintains working knowledge of data collection, research methods, benchmarks and HR metrics.
⊲ Identifies sources of the most relevant data for solving organizational problems and answering questions.
⊲ Gathers data using appropriate methods to inform and monitor organizational solutions.
⊲ Scans external sources for data relevant to the organization (examples include risks, economic and environmental factors).
⊲ Benchmarks HR initiatives and outcomes against the organization’s competition and other relevant comparison groups.

FOR ADVANCED HR PROFESSIONALS
⊲ Ensures that resources and processes are in place to facilitate systematic collection of data and to inform HR’s strategic direction and long-term goals.
⊲ Identifies new sources of data or new methods of data collection to inform and evaluate HR initiatives.
⊲ Interacts with leaders outside the organization to collect data relevant to HR.

Question 14

What is the purpose of data analysis?

Answer 14

Analyzes data to evaluate HR initiatives and business challenges.

PROFICIENCY INDICATORS FOR ALL HR PROFESSIONALS
⊲ Maintains working knowledge of statistics and measurement concepts.
⊲ Identifies potentially misleading or flawed data.
⊲ Conducts analyses to identify evidence-based best practices, evaluate HR initiatives and determine critical findings.
⊲ Maintains objectivity when interpreting data.
⊲ Identifies gaps in data based on analysis and seeks missing data.

FOR ADVANCED HR PROFESSIONALS
⊲ Maintains advanced knowledge of statistics and measurement concepts.
⊲ Oversees comprehensive and systematic evaluations of the organization’s HR programs, practices and policies.
⊲ Critically reviews and interprets the results of analyses to identify evidence-based best practices, evaluate HR
initiatives and determine critical findings.

Question 15

What is evidence-based decision making?

Answer 15

Uses the results of data analysis to inform the best course of action.

PROFICIENCY INDICATORS FOR ALL HR PROFESSIONALS
⊲ Reports key findings to business and HR leaders.
⊲ Uses research findings to evaluate different courses of action and their impacts on the organization.
⊲ Applies data-driven knowledge and best practices from one situation to the next.
⊲ Ensures HR programs, practices and policies reflect research findings and best practices.
⊲ Objectively examines HR programs, practices and policies in light of data.
⊲ Uses data to explain and support business decisions to employees and leaders.

FOR ADVANCED HR PROFESSIONALS
⊲ Communicates critical data analysis findings and their implications for HR’s strategic direction and goals to senior leaders.
⊲ Uses research findings to inform HR’s strategic direction and long-term goals.
⊲ Develops best practices based on evidence from industry literature, peer-reviewed research, experience and other
sources.
⊲ Sponsors evidence-based initiatives for process improvement.
⊲ Uses data to support business cases.

Question 16

What is the purpose of building strategic relationships?

Answer 16

They provide each person or entity with something that they need. Strategic relations can exist with vendors, customers, regulators, and other oversight groups.

HR can contribute to those relationships through its policies, planning, and management of the HR functions. Everything HR does should support the organization’s strategic planning objectives.

Pg 501

Question 17

What are business operations?

Answer 17

Ongoing activities involved in the production of value for the organization’s stakeholders. HR contributes by supporting its people assets in ways that enhance the organization’s strategic goals and objectives.

Pg 502

Question 18

What is operation management (OM)?

Answer 18

The business function responsible for managing the process of creation of goods and services. It involves planning, organizing, coordinating, and controlling all the resources needed to produce a company’s goods and services.

It involves managing people, equipment, technology, information, and all the other resources needed in the production of goods and services.

Pg 502

Question 19

What are the 10 elements of an HR business case?

Answer 19

These 10 elements contribute key elements to organizational success, which requires the development of a business case.

1. Problem statement
2. Background
3. Project objectives
4. Current process
5. Requirements
6. Alternatives
7. Compare alternatives
8. Additional considerations
9. Action plan
10. Executive summary

Pgs 502-03

Question 20

What are the 2 basic measurements that impact HR?

Answer 20

Revenue per employee
Expense per employee

Question 21

What is ROI for HR initiatives?

Answer 21

Return on investment is a way of expressing the financial benefit gained from any given business activity.

Example: ROI of a new paid time off policy when looking at the impact on absence rates and expenses.

Pg 504

Question 22

How to asses risk using SWOT?

Answer 22

There are 2 sources for risk: internal and external

Strengths
Weaknesses
Opportunities
Threats

Pg 505

Question 23

What is Aligning HR strategy, goals, and objectives.

Answer 23

Identifying and implementing workforce strategies in a challenging global economy is a high-priority issue for top executives.

HR and business leaders must develop quantitative and qualitative approaches to efficiently and effectively attract, engage, and retain human capital.

Pg 505

Question 24

Importance of Demonstrating business language fluency.

Answer 24

HR needs to discuss what they do to executives using business terminology. So expressing the budget impact for a new employee benefit program and then showing the offset that can be accomplished by reducing turnover costs will speed acceptance and credibility.

Business language includes: profits, loss, cost impact ratios, industry position impact for given programs, and revenue impact ratios for HR programs that can be sold outside the organization.

Pg 505

Question 25

Examining organizational problems.

Answer 25

Problem identification is a critical step in the process of finding solutions. Process if questioning what is getting in the way of achieving specific goals and objectives.

Clearly lay out the problem before rushing to solutions.

Pg 506

Question 26

Developing solutions

Answer 26

1. Define the problem
2. Identify options
3. Evaluate the options
4. Choose an option and implement it
5. Evaluate the solution

Pg 506

Question 27

Evaluating proposed business cases

Answer 27

Business case analysis (BCA) looks at programs, solutions to problems or other action plans with the eye on how they will impact the business. In every analysis consideration must be given to the impact the activity or plan will have on the overall business operation.

Ultimately, Business case analysis is a means of projecting accountability for taking any action.

Pg 506

Question 28

Communicating global labor market direction.

Answer 28

This first requires identifying what that direction might be. Once identified, the trends can be articulated and communicated to executives within the organization.

Pg 507

Question 29

Benchmarking the competition

Answer 29

Competitive benchmarking can be defined as the continuous process of comparing a firm’s practices and performance measures with that of its most successful competitors.

Pg 507

Question 30

Maintaining expert knowledge

Answer 30

HR is responsible for identifying sources of expert knowledge that can be used when job openings occur in any department of the organization.

Pg 507

Question 31

Developing HR business strategies

Answer 31

For each strategy there should be at least one action item in the action plan. Implementing a strategy is necessary to reflect its reason for existing.

Pg 507-08

Question 32

Maintaining knowledge of economic factors

Answer 32

HR’s influence is dependent upon knowledge of economic factors. The annual company budget is dependent upon knowing the cost of compensation in all departments.

The cost of employee benefit plans is also something that HR oversees but shares with client organize items inside the company.

Pg 508

Question 33

Evaluating critical activities

Answer 33

Each effort we make on our jobs should be subject to review and evaluation. Review involves checking to be sure we have included the topic in our action planning. Evaluation is the effort to determine the value achieved by the action taken.

Pg 508

Question 34

Knowing the business

Answer 34

It is up to HR to know the business it supports.

Pg 509

Question 35

Setting technology strategy

Answer 35

HR is given the responsibility of identifying the strategy they will apply for IT within the HR department.

Pg 509

Question 36

Serving as a strategic contributor

Answer 36

Proving that HR belongs at the executive table can be done only through demonstration of strategic contributions to the corporation.

Pg 510

Question 37

Influencing government policy

Answer 37

Employers can influence government policy by monitoring the Federal Register postings or proposals for regulatory changes. Identifying how those proposals will impact their employer is a service HR professionals can provide.

Pg 510

Question 38

Developing business strategy with top leaders

Answer 38

Offering to take on responsibility for key strategic plans will assure the executive team invites HR back to participate in the future.

Pg 510

Question 39

Defining strategy for managing talent

Answer 39

Any HR strategy must compliment overall employer strategy.

talent management requires recruiting, onboarding, training, probationary observation periods, and assessment of match for talent to needs.

Pg 510

Question 40

What are the steps to creative problem-solving?

Answer 40

1. Identify the problem
2. Generate a list of possible solutions
3. Create a list of criteria for acceptable solutions
4. Re-evaluate your list of remaining solutions
5. Coordinate implementation of the solution across the company
6. Evaluate the results

Pgs 512-13

Question 41

What are 10 tips for building relationships with clients during meetings?

Answer 41

1. Do your homework
2. Listen before you talk
3. Learn about your client’s vision of the future
4. Provide anecdotes and examples
5. Offer to work with other advisors
6. Save your clients time and effort
7. Use technology
8. Build a team approach
9. Find out how clients prefer to be contacted
10. Follow up

Pgs 514-15

Question 42

What are some coaching skills?

Answer 42

Listen with curiosity
Take in what you hear
Reflect with accuracy
Ask open-ended questions to explore more fully
Provide feedback for development

Pg 515

Question 43

What 2 things do you need to know when creating talent management strategies?

Answer 43

1. What already exists in the current workforce
2. What talent needs exist in the organization now and into the future

Pg 516

Question 44

What elements should be considered in the effort to maximize return on investment for an organization?

Answer 44

Perceptual elements - how we learn and retain new knowledge

Environmental elements - how the work environment contributes to our detracts from productivity

Psychological elements - how we process new information and for making decisions/solving problems

Physiological elements - how we remain energized and stay alert at work

Emotional elements - how quickly we complete challenging and complex tasks

Sociological elements - how we prefer to work and interact effectively with others

Pg 517

Question 45

What are the top 10 employment liabilities in the modern workplace?

Answer 45

1. Wage and hour claims
2. Class action lawsuits
3. FMLA violations
4. Whistleblowers
5. Data breaches
6. Social media
7. Alternative work arrangements
8. Discrimination complaints
9. Sexual harassment
10. Gender and sexual orientation claims

Pg 519

Question 46

What is global and cultural effectiveness?

Answer 46

The knowledge skills and abilities (KSAOs) needed to collect and analyze qualitative and quantitive data and to interpret and promote findings that evaluate HR and inform business decisions and recommendations.

Pg 521

Question 47

When outlining best practices? What information sources should be included?

Answer 47

1. Your organizational history
2. Industry data
3. Specific data from one other company
4. Peer-reviewed research
5. Internet information available to the general public
6. Response to survey requests sent to other employers

Pg 523

Question 48

What are the 5 common measurement areas of human resource management?

Answer 48

1. Productivity
2. Engagement
3. Recruiting
4. Retention
5. Budget

Pgs 523-24

Question 49

When setting the direction of HR, what 6 factors should be considered?

Answer 49

1. Legislation impacts
2. Economic impacts
3. Environmental factors
4. Competition impacts
5. Compensation factors
6. Employee relations

Pgs 525-26

Question 50

What 6 factors influence decision-making?

Answer 50

Political
Sociological
Economic
Technological
Legal
Environmental

Pg 528

Question 51

What are fixed and variable costs?

Answer 51

Variable costs change based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.

Question 52

What is net income?

Answer 52

Your take home pay, otherwise known as net pay, is the amount you receive each month after any deductions which have to be made, like Income Tax and National Insurance.

calculated as sales minus cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses

Question 53

What are fixed and variable costs?

Answer 53

Variable costs change based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.

Question 54

What are fixed and variable costs?

Answer 54

Variable costs change based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.

Question 55

What is KPI?

Answer 55

Key Performance Indicators: refer to a set of quantifiable measurements used to gauge a company’s overall long-term performance. KPIs specifically help determine a company’s strategic, financial, and operational achievements, especially compared to those of other businesses within the same sector.

Question 56

What is analytical processing?

Answer 56

Analytical processing involves the interaction between analysts and collections of aggregated data that may have been reformulated into alternate representational forms as a means for improved analytical performance.

Question 57

What are business intelligence portals?

Answer 57

A business intelligence portal is a tool that you can use to store all of a company’s data so that those who need to access to it can and will be able to use the data in any way necessary. A BI portal is basically a centralized repository for data analyzing and reporting tools.

Question 58

What is predictive analytics?

Answer 58

Predictive analytics is the process of using data to forecast future outcomes. The process uses data analysis, machine learning, artificial intelligence, and statistical models to find patterns that might predict future behavior.

Question 59

What are business intelligence portals?

Answer 59

A business intelligence portal is a tool that you can use to store all of a company’s data so that those who need to access to it can and will be able to use the data in any way necessary. A BI portal is basically a centralized repository for data analyzing and reporting tools.

Question 60

What are advanced analytics?

Answer 60

Advanced analytics is a data analysis methodology using predictive modeling, machine learning algorithms, deep learning, business process automation and other statistical methods to analyze business information from a variety of data sources.

Advanced analytics is a valuable resource because it enables an organization to improve data asset functionality, regardless of where the data is stored or what format it’s in. Advanced analytics can also help address some of the more complex business problems traditional BI reporting cannot.

Question 61

What is trend analysis?

Answer 61

Trend analysis is the widespread practice of collecting information and attempting to spot a pattern.

Question 62

What is scenario planning?

Answer 62

Scenario planning enables professionals, and the public, to respond dynamically to an unknown future. It assists them with thinking, in advance, about the many ways the future may unfold and how they can be responsive, resilient, and effective, as the future becomes reality.

Question 63

What is a balanced scorecard?

Answer 63

A balanced scorecard (BSC) is defined as a management system that provides feedback on both internal business processes and external outcomes to continuously improve strategic performance and results.

The balanced scorecard involves measuring 4 main aspects of a business: Learning and growth, business processes, customers, and finance

Question 64

What are the 4 main aspects of a balanced scorecard?

Answer 64

The balanced scorecard involves measuring four main aspects of a business: Learning and growth, business processes, customers, and finance

Question 65

What are balance sheets?

Answer 65

A balance sheet shows the assets (furniture, buildings, vehicles, cash, and accounts receivable) compared to the liabilities outstanding (accounts payable, taxes payable, credit card balances, and payroll payables). A balance sheet also shows the amount of equity owned by investors in the organization. Equity is the difference between income and liabilities in a for-profit organization. In a nonprofit organization it is called net assets.

It is calculated by balancing a company’s assets with its liabilities and equity.

The formula is: total assets = total liabilities + total equity.

Question 66

What is a cash flow statement?

Answer 66

A cash flow statement summarizes the amount of cash and cash equivalents entering and leaving a company. The CFS highlights a company’s cash management, including how well it generates cash. This financial statement complements the balance sheet and the income statement.

Question 67

What are profit and loss statements?

Answer 67

A P&L statement measures income and expenses over a defined period of time such as a year, a calendar/fiscal quarter, or a month. Pg 282

It shows a company’s revenues and expenses related to running the business, such as rent, cost of goods sold, freight, and payroll. Each entry on a P&L statement provides insight into how much money a company made and spent.

Question 68

What is cash flow?

Answer 68

Cash flow is the net cash and cash equivalents transferred in and out of a company. Cash received represents inflows, while money spent represents outflows. A company creates value for shareholders through its ability to generate positive cash flows and maximize long-term free cash flow (FCF).

Question 69

What are cash reserves?

Answer 69

Cash reserves refer to the money a company or individual keeps on hand to meet short-term and emergency funding needs. Short-term investments that enable customers to quickly gain access to their money, often in exchange for a lower rate of return, can also be called cash reserves.

Question 70

What is return on investment (ROI)?

Answer 70

Return on Investment (ROI) is a popular profitability metric used to evaluate how well an investment has performed. ROI is expressed as a percentage and is calculated by dividing an investment’s net profit (or loss) by its initial cost or outlay.

Question 71

What is a sales pipeline?

Answer 71

A sales pipeline is an organized, visual way of tracking potential buyers as they progress through different stages in the purchasing process and buyer’s journey. Often, pipelines are visualized as a horizontal bar (sometimes as a funnel) divided into the various stages of a company’s sales process.

Question 72

What is Lewin’s change management model?

Answer 72

Lewin developed a model in the 1940s, which is regarded as a cornerstone for understanding organisational change. He saw this as a three-stage process, which he likened to melting a block of ice, and refreezing it in a different shape. The three stages are Unfreeze, Change and Refreeze.

Stage 1: Unfreeze
This first stage of change involves preparing the organization to accept that change is necessary, which involves breaking down the existing status quo before you can build up a new way of operating. Key to this is developing a compelling message showing why the existing way of doing things cannot continue. This is easiest to frame when you can point to tangible factors such as declining sales figures, poor financial results, worrying customer satisfaction surveys, for example.

Stage 2: Change
After the uncertainty created in the unfreeze stage, the change stage is where people begin to resolve their uncertainty and look for new ways to do things. People start to believe and act in ways that support the new direction. The transition from unfreeze to change does not happen overnight: people take time to embrace the new direction and participate proactively in the change.

Stage 3: Refreeze
When the changes are taking shape and people have embraced the new ways of working, the organization is ready to refreeze. The outward signs of the refreeze are a stable organization chart, consistent job descriptions, and so on.

Here are some steps you can take to anchor the changes into your organization’s or team’s culture:
- Identity what supports the change.
- Identify barriers to sustaining change.
- Ensure leadership support.
- Create a reward system.
- Establish feedback systems.
- Adapt the organizational structure as necessary.
- Keep everyone informed and supported.
- Celebrate your success!

https://www.mindtools.com/ajm9l1e/lewins-change-management-model

Question 73

What is Kotter’s 8-step change model?

Answer 73

Step 1: Create Urgency
For change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving.

Step 2: Form a Powerful Coalition
Convince people that change is necessary. This often takes strong leadership and visible support from key people within your organization. Managing change isn’t enough – you have to lead it.

Step 3: Create a Vision for Change
When you first start thinking about change, there will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and remember.

Step 4: Communicate the Vision
What you do with your vision after you create it will determine your success. Your message will probably have strong competition from other day-to-day communications within the company, so you need to communicate it frequently and powerfully, and embed it within everything that you do.

Step 5: Remove Obstacles
If you follow these steps and reach this point in the change process, you’ve been talking about your vision and building buy-in from all levels of the organization. Hopefully, your staff wants to get busy and achieve the benefits that you’ve been promoting.

Step 6: Create Short-Term Wins
Nothing motivates more than success. Give your company a taste of victory early in the change process. Within a short time frame (this could be a month or a year, depending on the type of change), you’ll want to have some “quick wins” that your staff can see. Without this, critics and negative thinkers might hurt your progress.

Step 7: Build on the Change
Kotter argues that many change projects fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change.

Step 8: Anchor the Changes in Corporate Culture
Finally, to make any change stick, it should become part of the core of your organization. Your corporate culture often determines what gets done, so the values behind your vision must show in day-to-day work. Make continuous efforts to ensure that the change is seen in every aspect of your organization. This will help give that change a solid place in your organization’s culture.

https://www.mindtools.com/a8nu5v5/kotters-8-step-change-model

Question 74

What is Kubler-Ross change curve?

Answer 74

The Change Curve, or Kübler Ross’ Change Curve Model, was created by the Swiss-American psychiatrist Elisabeth Kübler-Ross in 1969. It depicts 5-stages of grief denial, anger, bargaining, depression, and acceptance.

Shock: Suprise or shock at the event
Denial: Disbelief, looking for evidence that it isn’t true
Frustration: Recognition that things are different, sometimes angry.
Depression: Low mood, lacking in energy
Experiment: Initial engagement with new situation
Decision: Learning how to work in new situation, feeling more positive
Integration: Changes integrated, a renewed individual

While there are numerous versions of the curve and individuals may react differently based on personality and experience, most change curve models follow this general pattern:

https://images.ctfassets.net/pdf29us7flmy/6wiGBUze6YQi3qdEWTxCUk/318b5d3374b5bdf58baa4e2184129711/Screen_Shot_2022-03-31_at_3.52.45_PM.png?w=828&q=100&fm=avif

Question 75

What is data cleansing?

Answer 75

Data cleaning is the process of fixing or removing incorrect, corrupted, incorrectly formatted, duplicate, or incomplete data within a dataset.

Question 76

What is data mining?

Answer 76

Data mining is the process of searching and analyzing a large batch of raw data in order to identify patterns and extract useful information. Companies use data mining software to learn more about their customers. It can help them to develop more effective marketing strategies, increase sales, and decrease costs.

Question 77

What is visualization?

Answer 77

Data visualization is the graphical representation of information and data. By using visual elements like charts, graphs, and maps, data visualization tools provide an accessible way to see and understand trends, outliers, and patterns in data.

Question 78

What is big data analysis?

Answer 78

Big data analytics is the use of advanced analytic techniques against very large, diverse big data sets that include structured, semi-structured and unstructured data, from different sources, and in different sizes from terabytes to zettabytes.

Question 79

What is statistical analysis?

Answer 79

It’s the science of collecting, exploring and presenting large amounts of data to discover underlying patterns and trends. Statistics are applied every day – in research, industry and government – to become more scientific about decisions that need to be made.

Question 80

What is predictive analysis?

Answer 80

Predictive analytics is the process of using data to forecast future outcomes. The process uses data analysis, machine learning, artificial intelligence, and statistical models to find patterns that might predict future behavior.

Question 81

What is descriptive statistics?

Answer 81

Descriptive statistics refers to a set of methods used to summarize and describe the main features of a dataset, such as its central tendency, variability, and distribution. These methods provide an overview of the data and help identify patterns and relationships.

Question 82

What is correlation?

Answer 82

Correlation analysis in research is a statistical method used to measure the strength of the linear relationship between two variables and compute their association. Simply put - correlation analysis calculates the level of change in one variable due to the change in the other.

Question 83

What is validity and reliability?

Answer 83

Validity: The accuracy of the data

Reliability: The consistency of the data

Question 84

Selection rate

Answer 84

Selection rate, or also know as Yield rate, measures how many people are going from one stage to the next of the recruitment process. It can provide a lot of insight into how people are moving through the recruitment process. The first step will be to determine all the key stages in your recruitment process.

Selection Ratio = Number of Hires / Number of Applicants Because it is a ratio, the selection ratio’s value must range between 0 and 1 (theoretically it really ranges from -1 to 1, but in the real world you will never find a negative selection ratio in a hiring situation), with 0 indicating a low selection ratio and 1 indicating a very high selection ratio.

Question 85

Compa-ratio

Answer 85

Compa-ratio is a measurement of pay that compares an employee’s salary to the median compensation for similar positions within a company or a target market. Values are expressed as a percentage.

The compa-ratio calculation is basic. Simply divide the employee’s annual salary by the median salary for similar positions and multiply the result by 100. For example, if an employee earns $47,000 per year and the median salary for similar positions is $49,000, the compa-ratio formula is:

$47,000/$49,000 x 100 = 95%

Question 86

range spread

Answer 86

Range spread is the range of pay established by employers to compensate employees for performing their job. It includes a minimum, maximum, and mid-range pay rate. For example, the range for a particular position can have a minimum of $45,000 and a maximum of $60,000: Minimum.

The formula is:
(Maximum pay – Minimum pay) / Minimum pay = Range spread

In other words, if the maximum is $50,000, and the minimum is $30,000, your range spread from the minimum to the maximum number would be:

($50,000 – $30,000) / $30,000 = 66%.

Used for:
-Job postings
-Setting targets
-Establishing pay equity
-Clear communication
-Plan salary increases

Question 87

Cost-benefit analysis

Answer 87

Cost-benefit analysis is a way to compare the costs and benefits of an intervention, where both are expressed in monetary units. Both CBA and cost-effectiveness analysis (CEA) include health outcomes.

The following formulas can be used. For example, if the total value of benefits is $80,000 and the total cost of program is $13,400, then the benefit-cost ratio would be =($80,000/$13,400) = 5.97:1 That means every dollar spent in this program generates $5.97 in gross benefits.

Question 88

Turnover rate

Answer 88

Turnover Rate = # of Separations / Avg. # of Employees x 100

Example. XYZ Tech Company had 15 employee separations and an employee average of 130 during 2021, giving the company an annual turnover rate of 11.54 percent.

Only voluntary and involuntary separations within the month are counted; this does not include leaves of absence or furloughs.

Turnover rate refers to the percentage of employees leaving a company within a certain period of time. High turnover can be costly to an organization because departing employees frequently need to be replaced.

Question 89

Absence rate

Answer 89

To calculate the absence rate, divide the number of absent days in a period by the number of workdays in that same period. The result is the absence rate.

To calculate their absenteeism rate, you need to divide the number of absences (5) by the number of workdays (235) and multiply that by 100 and you get 2.1%

Question 90

Tardy rate

Answer 90

For example, if your crew missed 40 full eight-hour shifts in a month, that comes to 320 hours. Divide 320 by 2,400 (the amount of hours scheduled) and multiply by 100, and you find that you lost 13 percent of scheduled time to absenteeism.

Question 91

What are the 4 Types of companies?

Answer 91

LLP / LLC - Corporation

Sole proprietorship - Independent

General partnerships - 2 people sharing

Joint venture - 2 businesses maintain distinct identities, but have a shared interest and they work together

Question 92

What is strategy?

Answer 92

Planning of long-range goals and actions to attain those goals. Initiatives, objectives, and tactics are outlined in detail. Strategy will look within the walls of the organization at its strengths, weaknesses, and vulnerabilities, as well as outward at competition, opportunities, and external issues/influences.

Question 93

What are the concepts for the creation of strategy and the management of it?

Answer 93

1. Aligning effort
2. Controlling drift
3. Focusing on core competencies
4. Systems thinking
5. Using structure as a strategic level
6. Using culture as a strategic level

Question 94

What are the 3 levels of strategy?

Answer 94

1. Organizational level - involves a general vision of the future
2. Business unit level - focuses on the “how” and “where” the organization will focus to create value for its stakeholders
3. Operational level (main focus for HR: HRs policies, programs and processes will need to correlate, collaborate, and align) - focuses on the activities and actions the functions within the organization will take to progress it toward its vision.