SPHR Flashcards

(180 cards)

1
Q

xxxx What are the steps of the Strategic planning process?

A

Analyze position (formulate plan), strategy development, strategy implementation, strategy evaluation

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2
Q

xxxxx How far back can OSHA ask for logs?

A

5 years

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3
Q

xxxx What is the PDA

A

Pregnancy discrimination act (amendments: PWFA and PUMPA)

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4
Q

xxxxx When employees are “on-call” what is engaged to wait vs waiting to be engaged

A

Engaged to wait = all waiting time must be paid because they can’t do anything else with their time. Waiting to be engaged = employees can use this as personal time so pay isn’t required unless called to work

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5
Q

xxxx What are the key components of (making) a business case?

A

Executive summary (establishes purpose), recommended solution (defines objectives and how it adds value), risks and opportunities, estimated cost and time frame

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6
Q

xxxx What is mechanistic culture?

A

aka hierarchial or traditional, follows a defined chain of command with clear roles and processes. Focus on procedures and accountability to maintain cost-efficiency. Characterized by directive leadership so it may limit adaptability and creativity.

(like cogs in a machine?)

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7
Q

xxxx What is participative culture?

A

AKA social culture, adopts a democratic stance and encouraged collaboration and consensus-building. Employees contribute to decision-making and goal setting which enhances commitment to the outcomes, engagement, and innovation

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8
Q

xxxx What is learning culture?

A

Prioritizes continuous growth, skill development, and innovation. Fosters organizational agility, engagement, and better solutions and outcomes

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9
Q

xxxx What is high-performance culture?

A

Rooted in values, beliefs, and behaviors. Drives business success and stakeholder satisfaction. Promotes belonging, trust, and ownership. Leaders prioritize communication, embody company values, and focus on performance management and career development.

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10
Q

xxxx What is Lewin’s 3-step theory of change management?

A

Unfreezing (current state - What/EXPLAIN THE WHY), moving (transition state), (refreezing - make the change part of the org/sustain the change). By using Lewin’s force field analysis, it can address the driving and restraining forces for change and is ideal for an organization seeking to drastically change the way they operate, uncover major issues, identify opportunities for improvement, re-engineer their processes, or correct ingrained mistruths.

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11
Q

xxxx What is Kotter’s 8-step change model?

A

Basically provides instructions for each stage of Lewin’s 3-step change theory and focuses on leadership driving the change.

  1. Create a sense of urgency, 2. assemble a strong guiding team, 3. provide a clear vision
  2. over-communicate, 5. Empower action, 6. Ensure short-term successes
  3. Consolidate progress, 8. Institutionalize
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12
Q

xxxx What is McKinsey’s 7 S’s Framework?

A

Analyzes 7 key internal factors (style, skills, systems, structure, staff, strategy, and shared values) to identify if they are aligned to reinforce one another and support organizational goal achievement. Change in one area will result in the need to reassess and adjust the other 6 areas because they are connected.

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13
Q

xxxx *Organizational & HR structure (or design): What is a Matrix structure? What are the pros and cons?

A

Matrix structure: combines elements of both functional and divisional structures. Employees report to both a functional manager and a project or product manager. This dual reporting can enhance communication but can also lead to conflicts. Many global consulting firms like McKinsey & Company use a matrix structure. Consultants work in functional teams (e.g. finance, strategy) but also collaborate on projects across different industries or sectors.

Functional: pretty standard departments
Divisional: organized by product, geography, or customer segment (like P&G)

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14
Q

xxxx *Organizational & HR structure (or design): What is a Centralized structure? What are the pros and cons?

A

Centralized structure: decision-making authority is concentrated at the top levels of the organization. Centralized structures are efficient for quick decisions but can result in slower response and flexibility to local issues. For HR, that means all HR staff are located within the HR department, delivering services to the entire organization. The military often employs a centralized structure, where high-ranking officials make critical decisions that are communicated down the chain of command.

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15
Q

xxxx *Organizational and HR structure (or design): What is a Decentralized structure? What are the pros and cons?

A

Decentralized Structure: Decision-making authority is distributed among lower levels of the organization. This can foster faster response to local needs but might lead to inconsistency in decision-making. Google is known for its decentralized structure, where employees are encouraged to take ownership and contribute ideas across various projects.

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16
Q

xxxx *Organizational and HR structure (or design): What is a Centers of Excellence (COE) structure? What are the pros and cons?

A

Centers of Excellence (COE): Leverages strategic expertise to foster growth and continuous improvement. Digital communications are utilized to create networks of expertise within the organization. However, very similar to the shared services structural model, underutilization of services and resources are known to occur when leaders and employees are not made aware of or regularly reminded of their existence.

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17
Q

xxxx *Organizational and HR structure (or design) what is a Shared Services structure? What are the pros and cons?

A

Shared Services: Delivers savings and increased productivity by locating similar transactional HR services and processes in one location that are shared by multiple business units. This model offers HR expertise efficiently, which reduces routine transactional workload, affording HR the ability to provide more value-creating activities. Underutilization of services and resources are known to occur when leaders and employees are not made aware of or regularly reminded of their existence.

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18
Q

xxxx What is Total Quality Management (TQM)? (Process improvement method)

A

TQM is an approach that seeks CONTINUOUS IMPROVEMENT in an organization’s products, quality, and services by involving the workers in the creation and implementation of process improvements. Employees solve quality issues. Everyone has a voice on the team and is an equal contributor (they call it a “quality circle”). These are usually made up of a cross-functional group of workers who are invested in the topic to be resolved.

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19
Q

xxxx What are Lean & Six Sigma process improvement methods?

A

Both are designed to RE-ENGINEER THE WORKPLACE BY MAKING IT MORE EFFICIENT. Workers in an area use a set of approaches to improve the effectiveness by collaborating on system improvements. They create stakeholders by involving the workers. LEAN: believes the only way to determine if something has value is to consider whether A CUSTOMER WOULD PAY FOR IT. Any part of production that does not add value is eliminated, leaving a streamlined and profitable process that will flow smoothly and efficiently. SIX SIGMA: goal to eliminate DEFECTS AND WASTE to improve quality and efficiency by streamlining and improving all business processes. It DRIVES TOWARDS SIX STANDARD DEVIATIONS BETWEEN THE MEAN (the average).

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20
Q

xxxx Total quality management focuses all employees on producing products that meet customer needs. This is achieved by doing what? A. Eliminating processes that waste time and materials. B. Developing a high level of expertise in all employees. C. Sharing information with all levels in the organization. D. Balancing the needs of all stakeholders in the organization.

A

A is correct. The TQM concept reviews processes to eliminate waste, relies on teamwork, and involves all members of the organization in meeting customer needs.

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21
Q

xxxx What is the M&A process?

A

Step 1: Prepare for M&A (identify issues, form and train teams, and prepare for change). Step 2: Perform due diligence (investigate structural, technological, financial, legal, and cultural risks. Step 3: Plan integration (develop plans to address key issues). Step 4: Implement, monitor, and measure (measure activity of new organization against benchmarks).

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22
Q

xxxx *What are the two types of acquisitions?

A

Full acquisition: Buyer buys the shares and gains control of the target company being purchased. This carries all the liabilities and risks of that company. Asset-only acquisition: Buyer buys the assets of the target company, cherry-picking what it wants and leaving assets and liabilities that it does not.

HRs big role in mergers and acquisitions is based on assessment (due diligence) and effective communication.

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23
Q

xxxx What is a greenfield project?

A

In international expansion, when an organization builds or buys a new facility and hires a new workforce. Attracts companies due to tax breaks, subsidies, etc… but can be challenging if the org has little to no institutional knowledge of the targeting country, its laws, labor availability, and culture, It is HRs responsibility to discover those during due diligence.

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24
Q

xxxx What is a brownfield project?

A

Simply an expansion, remodeling, or reconstruction on, or to, an existing plant/business unit.

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25
xxxx What is Environmental Scanning? (As part of strategic planning)
The internal and external collection of data to assess current performance and to forecast future performance. This is part of "Analyze position," the first step of strategic planning.
26
xxxx What are ways that HR can do Environmental Scanning as part of an organization's strategic business plan?
A SWOT Analysis, a PEST analysis (involves studying and interpreting the political, economic, social, and technological events and trends which influence a business, industry, or market), a PESTLE analysis (looks at political, economic, social, technological, legal, and environmental factors which can impact business. It is an especially useful tool for companies heavily focused on eSG, DEI, and CSR initiatives)
27
xxxx What is a Balanced Scorecard (BSC)?
The balanced scorecard approach examines an organization from four different perspectives to help develop objectives, measures (KPIs), targets, and initiatives relative to those views. (Financial (or Stewardship), Customer/Stakeholder (views performance from the perspective of), Internal process (views quality and efficiency or an orgs performance related to the product, service, or other key business processes), Organizational Capacity/Learning & Growth (views human capital, infrastructure, technology, culture, and other capacities that are key to breakthrough performance)
28
xxxx What are "strategies" as part of HR strategic planning?
Strategies answer the what and the why of an initiative. They are the large, GLOBAL plan to reach the company's LONG-TERM goals.
29
xxxx What are the steps of the strategic planning process (especially the first and last steps, which should never be skipped)?
Step 1: Analyze company's objectives (identify the objectives of the different departments in order to identify the changes that will be necessary for the future of the organization). Step 2: Inventory Current Human Resources. Step 3: Forecast the Demand & Supply of employees. Step 4: Estimate gaps. Step 5: Formulate plan. Step 6: Implement the plan. Step 7: Monitor, Control, and Feedback (monitor continuously to ensure alignment of the plan to the goals and objectives. Necessary controls should be put in place and feedback at each level should be obtained to measure and deficit. Necessary changes should be implemented according to feedback obtained int he ongoing process)
30
xxxx What is the business life cycle? How is this relevant to HR?
Start-up (introduction/launch), growth, maturity, decline, demise or rebirth (renewal). HRs big concern is with people: finding new ones, engaging current ones, and helping them exit when necessary. HR's strategy must align with an organization's position and financial circumstances and goals.
31
xxxx How should metrics be used?
Metrics can be used to describe past outcomes and process performance by starting with activity-based metrics followed by outcomes-based metrics to provide critical information needed while conducting analyses. Provides raw information about what has happened or what is currently happening. They don't provide insights regarding the "why" behind the data and aren't always accurate if used predictively. KPIs are metrics that emphasize what is most important to the organization and HR (examples: turnover rate, cost per hire, revenue per FTE)
32
xxxx What are analytics?
Analytics convert a metric into a decision-support tool by adding additional context or by further sub-classifying comparison groups, providing greater insights. They consider the past and present and supporting forecasting for the future. They connect multiple sources of data and provide visual outputs of patterns and trends to help drive strategy. Examples: turnover of high-performing employees in poor-performing business units. Example: Assessing new-hire performance could evaluate performance levels. If performance results are unsatisfactory, HR could adapt their recruiting process to improve new-hire recruitment effectiveness
33
xxxx What is a cost-benefit ratio?
Formula: value of projected or received benefit / cost. Attempts to measure the value of executing an action (training, project). Can be detailed and capture all possible direct and indirect cost, intangible costs, potential risks, and opportunity costs.
34
xxxx ** What is ROI?
Formula: ((Gain from Investment - Cost of Investment)/Cost of Investment) * 100 It is the value received from an investment
35
xxxx What is the formula for HR expense to revenue ratio?
Total HR expenses / revenue
36
xxxx What is the formula for HR expense to operating ratio?
Total HR expenses / total operating expenses
37
xxxx What is the formula for turnover rate?
(Total # of EEs who left during a period / average number of employees for that period) * 100
38
xxxx What is the formula for absence or tardy rate?
(Total days absent or tardy for a period / total number of workdays for that period)*100
39
xxxx What is the cost of turnover?
(total costs of separation + vacancy + replacement turnover costs) / the number of positions filled due to separation The average cost of turnover is at least six months' equivalent to revenue per EE.
40
xxxx What is the formula for revenue by Total Human Capital (HC) spend
Revenue / Total HC spend
40
xxxx How do you calculate the Total Human Capital (HC) spend to Total Operating Spend Ratio?
Total HC spend / total operating spend. Example: If you pay $145,000 in total operating expenses with a salary expense of $41,000. Then 28% of your operating expenses are salaries.
41
xxxx What is the earnings before interest and taxes (EBIT) per human capital expense formula?
EBIT / total HC expense
42
xxxx What is the formula for productivity?
Revenue / labor hours
43
xxxx What is a "complete correlation?"
When one variable increases as the other increases.
44
xxxx What is a "negative correlation?"
Is when one value increases as the other decreases.
45
xxxx What is a regression analysis?
A form of statistical predictive modeling technique which investigates the relationship between a dependent (target) and independent variables, which are the predictor. This technique is used for forecasting, time series modeling, and finding the causal effect relationship between variables. Example: in an employee survey, we could use a regression analysis to see if there was an implied relationship between how well people like their bonuses and and how well people like their job.
46
xxxx Explain "inferential statistics"
Inferential statistics allows for forming a conclusion about characteristics of a population by studying a sampling of that population.
47
xxxx Explain some key qualitative analysis techniques
Judgmental forecasts: an educated guess used to predict future conditions. Subjective and not based on quantitative facts (usually because there aren't any). Least effective. Delphi technique: brainstorming method where a panel of experts are polled and their predictions aggregated based on points in predictions they all agree upon. The panel of experts are kept segregated from each other during the forecasting process to limit biases and group think. It's more resource consuming than other techniques and usually takes several rounds of questioning of experts. Nominal group technique: Same as Delphi but the panel are allowed to engage with one another and openly discuss and debate their predictions. Focus group, primary research.
48
xxxx Explain the problem solving/decision-making technique of Design thinking
Creative problem-solving technique that centers around deeply understanding the needs of the people with the problem you are striving to resolve. It is used primarily for designing new or enhancing existing products or services, but it can be applied to resolving business or team management issues too. The first step in design thinking is to empathize with an individual user/consumer/employee/stakeholder and then use ideation and experimentation to design the best solution/option. Design thinking helps creative teams stay true to the needs of the individuals they are striving to serve rather than allowing ideas to develop within an echo chamber of a team's brilliant ideas.
49
xxxx Explain the problem solving/decision-making technique of Systems thinking
An approach to problem-solving that comes from systems theory. It is the orientation to or awareness of the whole rather than a singular event or activity. Groups using systems thinking seek to understand the patterns, cycles, or structures an event or activity exists within as a starting place for examining how to improve an event or activity or resolve a problem. *The 3 Ds of systems thinking: Discover, diagram, decide Allows a mindset shift that helps HR better understand their orgs strategic needs, use data-driven decision making, etc...
50
xxxx Explain the problem solving/decision-making technique of Strategic thinking
Focuses on the ultimate goal and works backward to ensure alignment of action to this goal as one plans or to resolve problems. Strategic thinking disrupts the incremental pattern of traditional problem-solving to open a space for new thinking to thrive.
51
xxxx Explain the problem solving/decision-making technique of Strategic choice approach (SCA)
Also know as "strategic choice theroy:" a problem structuring method centered on the management of uncertainty and commitment in strategic situations, where strategic refers to the advisability of considering particular decisions in the context of others. Strateig occasions can occur at any level. It's built on the belief of interactions in which organizations adapt to their environment in a self-regulating, negative-feedback manner for strategic and objective goal achievement. Let's say you are the HR manager at a manufacturing company. Your current recruitment and retention strategy has been successful. However, you learn of a new competitor for talent. Anticipating change in labor availability and retaining talent, you develop a new recruitment and retention strategy. Strategic choice theory asserts that external influences must be taken into consideration to make the best decision.
52
xxxx What is HR's main role in CSR (corporate social responsibility) strategy?
Employee communications and engagement. Senior HR pros build a business case, obtain c-suite support, create, and implement strategic HR initiatives and programs that support sustainability
53
xxxx What is the CSR (corporate social responsibility) strategic planning process?
Executive commitment, assessment, infrastructure creation, plan implementation, measurement/reporting/evaluation, reassessment and revision (then start again) Executive commitment must come first.
54
xxxx What is the triple bottom line (TBL) framework or theory?
TBL theory believes organizations should focus as much attention on social and environmental issues as they do on financial issues to see the whole picture and to account for the full cost of doing business.
55
xxxx What is McGregor's Theory X (theory of human motivation)?
Negative view. Authoritative management style, typically used in a traditional/hierarchy organizational structure. Assumes the average person dislikes work, lacks ambition, avoids responsibility, and prefers to be led and supervised. Most employees must be forced with the threat of punishment/dismissal to motivate them. Leaders that choose this approach will put strict operational guidelines in place to guide front-line employees through their day-to-day routines
56
xxxx What is McGregor's Theory Y (theory of human motivation)?
Positive view. Accompanies a participative management style. Assumes employees are internally driven to success, like work, seek responsibility and exercise self-direction and self-control. Leaders that apply this approach will exercise participative decision-making and make sure employees know they are free to try new things and learn from their mistakes, matching employees up with job tasks that truly interest them and provide opportunities for growth to accept larger roles within the company.
57
xxxx *Explain the POLC framework
POLC considers the strategic implications and how these support company goals. The process is: Planning (select goals and ways to obtain them) Organizing (assign responsibility for task accomplishment) Leading (use influence to motivate employees) Controlling (monitor activities and make connections) Then back to planning... "You PLAN to LEAD and ORGANIZE to CONTROL" Principles of management/guidelines for managers to tackle business challenges
58
xxxx What is the project management process?
The formal PM process has 5 steps and can be complex. However, the 3 most critical stages are: planning, executing, and closing. Test writers favor the first and last steps of the process.
59
xxxx What are the project management approaches?
Waterfall: works best for projects completed in a linear fashion and does not allow going back to a prior phase Agile project management: used when the assumptions on which a project is based are unclear or may evolve as work on the project proceeds. It focuses on iterations of the deliverables, completing one iteration and then using customer input to plan the next Kanban approach: primarily concerned with process improvements Scrum approach: concerned with getting more work done faster
60
xxxx What are some key project and quality management tools?
Ishikawa diagram (also called fishbone, fishakawa, herringbone or CAUSE AND EFFECT DIAGRAM). Used to identify and understand problems and obstacles when planning. Used heavily in TQM (total quality management) **PERT chart: shows a SEQUENCE OF TASKS, which tasks can be performed simultaneously, and the CRITICAL PATH of tasks that must be completed on time in a certain sequence for a project to meet it's completion deadline. Pareto Analysis: uses the Pareto Principle (also known as the 80/20 rule) Pareto chart: a static type of chart used to IDENTIFY THE MOST SIGNIFICANT FACTORS CONTRIBUTING TO A PROBLEM.
61
xxxx What is "position control?"
Feature of a human resource information system (HRIS) and a financial tool in which employees are tracked separately from positions. Positions are often approved according to the available budget and then maintained and tracked in the position control system
62
xxxx What is "nearshoring?"
The outsourcing of BUSINESS PROCESSES to nearby countries, often sharing borders, to maximize business efficiency but reduce the barriers of traditional offshoring (like cultural, communication, and technological differences)
63
xxxx What is "onshoring?"
Relocation of business functions or processes to a lower-cost location inside national borders (improves cost structure and allows flexibility)
64
xxxx What are TIPS violations?
Threatening, interrogating, promising, or spying on employees involved in union activities.
65
xxxx How do you decertify a union?
Employees must gather signatures from 30% of the bargaining unit.
66
xxxx The LMRA/Taft-Hartley act made these practices illegal:
Closed shops: union membership as a condition of employment Featherbedding: paying for work that is not needed (like working at a reduced speed and/or duplicating the work of others). Usually a result of more automated processes or market changes. Hot Cargo clauses: clauses in a contract that allowed employees to refuse to handle or work on goods shipped from a struck plant or refuse to provide services to an employer listed on a union unfair list. Common-situs picketing: illegal picketing of a neutral employer because of a grievance held against another employer at the same worksite Secondary boycotts: a union encourages members to boycott products or services from a neutral company to force them to discontinue business with the primary employer. The LMRA (Taft-Hartley act) requires 60 day notice of strike or lockout.
67
xxxx What is HRs role in the collective bargaining process?
gathering required information to cost a contract properly, guide and advise organizational leaders when negotiating, and analyze language to ensure that it protects the organization while encouraging transparency, so contract administration is not adversarial.
68
xxxx What is the collective bargaining process?
Preparing for negotiations, contract negotiations, agreement, union ratification, contract administration (then back to preparing for the next negotiation)
69
xxxx *What are examples of mandatory bargaining subjects?
Hourly rates of pay, OT pay, shift differentials, holiday pay, pensions, profit sharing plans, grievance procedures, sick leave, work rules, seniority and promotion, compulsory retirement, and management rights clauses.
70
xxxx *What are voluntary/permissive bargaining subjects?
Not directly related to the terms and conditions of employment. May agree to bargain or refuse to do so without fear of a ULP charge. Examples: settlement terms for ULP's, neutrality agreements, employee social events, and CSR initiatives
71
xxxx *What are illegal bargaining subjects?
Subjects that would violate the law. Like closed shop and hot cargo clauses or provisions that discriminate against a protected class.
72
xxxx What are the main negotiation strategies/approaches?
Principled negotiation: mutual gain/win-win. Applies an interest-based relational negotiating process, also known as integrative bargaining. Process: preparation, relationship building, information exchange, persuasion, concessions, agreement. Positional/hard negotiation: when one or both parties holds on to a fixed agenda/position. Negotiators may view the process as an exercise in zero-sum thinking, where one person's gain would be another's loss. Successful negotiations rely on the parties claiming opposing positions or agendas and slowly making distributive concessions until an agreement is reached (remember: POSitional = POS)
73
xxxx What is "strategic human resources management?"
the strategic approach to effective and efficient management of people in an organization to help the business gain a competitive advantage. Designed to maximize employee performance in service of an employer's strategic objectives.
74
xxxx *What is the difference between the two conflicting strategies of strategic human resource management?
Hard HRM strategy: employees are simply a resource that is either a benefit or detriment to the company. Little to no communication disseminated down from top management to the lowest rank employees. This is an autocratic style. MGregor's Theory X. It's very reactive. Soft HRM strategy: emphasizes employees are valuable resources and the company concentrates on employee retention, communication, and long-term goals. Competitive pay and rewards systems are in place along with comprehensive training and cross-training. Managers encourage teamwork and delegation and enable employee empowerment. This is a democratic of McGregor's Theory Y management style. It's proactive
75
xxxx What are the four layers of diversity?
Personality Internal dimensions (age, race, gender, ethnicity, sexual orientation) External dimension (income, marital status, personal habits, religion, education, work experience, appearance, parental status) Organizational dimensions (work, content/field of work, division/department/unit/group, seniority, work location, union affiliation, management status) *for diversity related questions, look for the targeted solution option.
76
xxxx What is the most critical and important step in the DEI planning framework?
Obtaining leadership support. *for diversity related questions, look for the targeted solution option.
77
xxxx Explain Trompenaars and Hampden-Turner's theory of the "three rs?"
Once workplace diversity initiatives are implemented, an org must manage the changes in policy, which can present challenges. Management needs to RECOGNIZE the differences workers from diverse backgrounds bring. Once they recognize the diverse nature of their workforce, they must RESPECT these differences. After recognizing and respecting the cultural differences of their workforce, the leader's primary responsibility is to RECONCILE these variances and focus on building a high-performing work team.
78
xxxx Explain Tompenaars' 7 dimensions of culture
Helps an organization foster better relationships between employees with different cultural backgrounds ** Universalism (vs particularism): what is more important, rules or relationships? <-- be generally aware of this. **Indicates how society applies rules of morals and ethics. In a universal society, the like US, rules and contracts are developed which can apply in any situation. Strong universalistic cultures use the court to mediate conflicts. Particularistic cultures, like China, heavily focus on relationships and avoids rigid or standardized systems to manage across cultures. (P = people?) Individual (vs collectivism): Do we function in groups or as individuals? Neutral (vs emotional): Do we display our emotions? Specific (vs diffuse): How separate do we keep our private and working lives? Achievement (vs ascription): Do we have to prove ourselves to receive status, or is it given to us? Sequential (vs synchronic): Do we do things one at a time or several things at once? Internal control (vs external): Do we control our environment are are we controlled by it?
79
xxxx What is important to remember for all disciplinary processes?
The purpose or goal is to improve unacceptable performance or behavior. Processes should focus on performance and behavior, not the person. Positive discipline policy/strategy focuses on eliminating the issues. Progressive discipline policy/strategy is focused on making violating policy such an unpleasant experience that the employee permanently changes behavior
80
xxxx What are some illegal terminations?
Constructive discharge: form of discrimination that forces the worker to quit due to intolerable work conditions (examples: reductions in pay, humiliating demotion, unjustly poor performance reviews, unfair disciplinary actions) Retaliatory discharge: punishment for engaging in protected activity Involuntary or coerced retirement: illegal except for top executives who can be forced to retire at 65 (if they worked at least 2 years as a bona fide executive and eligible to receive non-forfeitable annual retirement benefits of at least $44k from the employer)
81
xxxx What are some key software used by HR
HR information management (HRIM) is the backbone of HR operations. Collecting, storing, and managing HR data efficiently. HR information systems (HRIS) is the go-to-tool. Centralizes and manages HR data so it can be input, updated, and retrieved efficiently. Streamlines. Database management systems (DBMS): oracle, microsoft sql server, mysql - help manage HR database efficiently, ensuring data integrity. Data analytics tools: tableu, power BI, excel can extract insights from HR data to support data-driven decision making Employee self-service (ESS) portals: employees can access and updating their personal information, request leaves, etc... Learning management system (LMS): assign and track employee training modules
82
xxxx What can HR do to align data privacy and security processes to organizational data protection strategies to ensure confidentiality, integrity, and availability?
*Understand organizational data protection strategies Identify HR data privacy and security requirements Conduct a data inventory Classify HR data Implement Access Controls Encrypt HR Data Establish data retention policies Train HR staff Implement email security measures Secure employee files Regular audits and monitoring Incident response plan Compliance with regulations Collaborate with IT and legal teams *Continuous improvements *General knowledge of overall steps is helpful for exam
83
xxxx *What is the process for leading, implementing, and evaluating HR Digitalization initiatives?
Leading: Establish a clear vision Secure leadership buy-in Build a competent team Asses current state Implementing: Select the right technologies Streamline workflows Data management and analytics Employee self-service Gamification and engagement Social networking and collaboration Change management Evaluating: KPIs User feedback and satisfaction Data accuracy and quality Return on investment Compliance and risk management Benchmarking Continuous improvement Adapt to emerging technologies Iterate and evolve *General knowledge is all that's necessary
84
xxxx What is OSHA's lockout/tagout (LOTO)
Practices and procedures necessary to disable machinery or equipment to prevent the release of hazardous energy. It establishes the employer's responsibility to protect workers from hazardous energy
85
xxxx What is the "right to know standard" (HazCom)?
Requires all employers to develop and communicate, in writing, information on the hazards of products used in the workplace.
86
xxxx Explain risk appetite vs risk tolerance vs risk position.
Risk appetite: general level of loss exposure that an organization views as acceptable given their unique business objectives. Related to longer term strategy of what needs to be achieved and the resources available to achieve it, expressed in quantitative criteria. Factors evaluated can include industry, company culture, competitors, nature of their business objectives, financial strength, etc... total risk that an organization can bear in a given risk profile Risk tolerance: level of risk an organization is willing to accept PER INDIVIDUAL RISK. Related to the acceptance of the outcomes of a risk should they occur and have the right resources and controls in place to absorb or "tolerate" the given risk, expressed in a qualitative and/or quantitative risk criteria Risk position: the condition of an asset or liability which is exposed to fluctuation in value (examples: changes in exchange rates, interest rates, market value)
87
xxxx What is ISO 31000?
An international standard that provides principles and guidelines for effective risk management. It outlines a generic approach to risk management, which can be applied to different types of risks (financial, safety, project risks) and used by any type of organization
88
xxxx What is a poison pill strategy?
A strategy that tries to create a shield against a hostile takeover bid by another company by triggering a new, prohibitive cost that must be paid to acquire that company. It allos existing shareholders to buy more shares at a discount to prevent a hostile takeover by another firm.
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xxxx How do you prepare for a crisis (crisis management?)
1. develop a plan to conduct a business impact analysis to identify critical functions and consider vulnerabilities to communicable diseases, natural disasters, severe weather, terrorism, cyber-attacks, fire and chemical exposure, and industry specific risks. 2. Once the analysis is completed, experts should be consulted to develop strategies to protect critical functions (including global - kidnapping, ransom, break of organization information security, etc...) (contingency plans)
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xxxx How do you evaluate employee safety? What are some security strategies?
*Understand regulatory requirements Review current policies and procedures Conduct risk assessments Compliance with OSHA HIPAA compliance Emergency response plans Access control Contingency planning Crisis management Employee training and awareness Security technology and systems Data privacy and confidentiality Vendor assessments Continuous improvement Legal and regulatory updates Documentation and reporting Collaboration with other departments *Feedback and employee engagement One of Senior HRs most critical responsibilities.
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xxxx What is EO 11246?
Requires federal government contractors and subcontractors with a contract of more than $10 to take affirmative action to hire and promote minorities and women. Contractors with $50k or more and 50 or more employees must prepare and maintain a written affirmative action plan for minorities and women for each of their establishments: Underutilization: failure to employ same proportion of protected minorities and genders as the general population AAPs (affirmative action plans): each company location must have their own AAP EEO-I report: compliance survey due annually that requries employers with 100+ employees to report employment data categorized by race/ethnicity, gender, and job category
92
xxxx What is the immigration reform control act (IRCA)?
Requires compliance aspect of I-9. Employers must prove applicants have the legal right to work in the US and they are who they say they are.
93
xxxx What is the drug-free workplace act?
Tries to reduce substance abuse within organizations that have contracts with the federal government. This act applies only to federal contractors!
94
xxxx How many employees does an organization need to have for the ADA to apply?
15 or more
95
xxxx What is the Uniformed Services in Employment and Reemployment Rights Act (USERRA)?
States employers may not discriminate against past or present members of the U.S. military regarding employment
96
xxxx What is the Older Workers Benefit Protection Act (OWBPA)?
Prohibits employers from terminating employees who are approaching a key milestone in years of employment served to qualify for a benefit perk (such as 30 years to qualify for full health benefits coverage for life). Gives the employee 21 days to consider a severance package before signing it but also gives the employee another 7 days after they've signed the severance agreement to change their minds and cancel the deal. If the job loss is due to a mass layoff, all those involved must be provided with a 45-day period
97
xxxx What is the WARN Act (Workers Adjustment and Retraining Notification Act)?
Gives workers and their families transition time to adjust to the prospective loss of employment, to seek and obtain other employment, or to enter skills training or re-training programs to successfully compete in the job market. Requires 60-day advance-notice of significant mass layoffs or plant closings, applies to employers with 100+ workers. A mass layoff is when 50 or more employees are to lose their jobs and these 50 represent 33% of the workers at their location, or anytime there is a layoff of 500+ workers. *most important to know the requirements and exceptions
98
xxxx What is Reliability (reliability & validity)?
Reliability refers to the consistency and stability of HR measures, tools, and methods in producing consistent results over time. In other words, reliable HR practices are those that yield consistent and stable outcomes when applied repeatedly in similar situations. VARC: Validity = Accuracy (V=A); Reliability = Consistency (R=C) Test-retest reliability Inter-rater reliability Internal consistency reliability Parallel forms reliability
99
xxxx What is Internal Consistency Reliability?
Internal consistency reliability: the consistency of assessment results within the assessment itself. It involves assessing the consistency of responses or items within a single assessment tool. One commonly used measure of internal consistency reliability is Cronbach's alpha, which calculates the extent to which the items in an assessment measure the same underlying construct. High internal consistency reliability indicates that the items in the assessment are measuring the same construct consistently, providing reliable results. It is important in assessments where multiple items or questions are used to measure a single construct, such as employee surveys or personality assessments.
100
xxxx What is parallel forms reliability?
Consistency of assessment results between different versions or forms of the same assessment. It involves administering two or more different forms of the same assessment to the same group of individuals and correlating the scores obtained from the different forms. If the scores are highly correlated, it indicates that the different forms of the assessment are equivalent and produce consistent results. Useful when multiple versions of an assessment are used to prevent response bias or when the same individuals need to be assessed using different forms of the same assessment
101
xxxx What is Validity (reliability and validity)?
Refers to the accuracy and effectiveness of HR measures, tools, and methods in measuring what they are intended to measure. In other words, valid HR practices are those that accurately capture the intended HR constructs or concepts, such as job performance, employee satisfaction, or leadership potential. VARC: Validity = Accuracy (V=A); Reliability = Consistency (R=C) Content validity Criterion related validity (concurrent validity, predictive) Construct validity (convergent, discriminant, face)
102
xxxx What is Criterion-related validity?
Refers to the extent to which an assessment is correlated with a relevant criterion or outcome of interest. There are two types of criterion-related validity: Concurrent validity, predictive validity.
103
xxxx What is concurrent validity?
A type of criterion- related validity. Involves correlating the scores obtained from an assessment with a criterion that is measured at the same time. For example, if an organization uses cognitive ability test to assess job applicants' problem-solving skills, concurrent validity would involve correlating test scores with the applicants' actual job performance during the initial months of employment.
104
xxxx What is predictive validity?
A type of criterion-related validity. Involves correlating the scores obtained from an assessment with a criterion that is measured at a future time point. For example, if an organization uses a personality assessment to predict employee turnover, predictive validity would involve correlating the personality assessment scores with the employees' turnover status over a period of time.
105
xxxx What is construct validity?
The extent to which an assessment measures the theoretical construct or trait that it claims to measure. It involves providing evidence that the assessment measures the underlying construct in a meaningful and accurate way. There are several approaches: Convergent validity Discriminant validity Face validity (weakest)
106
xxxx What is convergent validity?
A type of construct validity Involves correlating the scores obtained from an assessment with other assessments or measures that assess similar constructs. Example: an organization uses an emotional intelligence assessment to measure employees' emotional intelligence. convergent validity would involve correlating the scores from the assessment with scores from other established emotional intelligence assessments.
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xxxx What is Discriminant validity?
A type of construct validity Involves demonstrating that an assessment does not measure other unrelated constructs by correlating the scores obtained from an assessment with assessments or measures that assess unrelated constructs and showing that the correlations are low.
108
xxxx What is face validity
The WEAKEST type of construct validity The extent to which an assessment appears to be valid to the users and stakeholders based on its face value. Does it look like it measures what it claims to? Subjective and not a strong indicator of validity but can be important in gaining acceptance and buy-in from users and stakeholders WEAKEST form of validity and toughest to use a defense if the employer must go to court to defend a practice. Primarily used to evaluate job knowledge and skill.
109
xxxx ***What is the 4/5th or 80% rule?
Protected classes should be hired at no less than 80% of the hiring rate of the majority group Adverse impact analysis example on page 78: Determine the hiring rates for the majorities group (divide the number of people selected from the total number of people representing the majorities group) = 50/100 (50%) is the hiring rate for majorities Find your multiplier: Multiply the selection/hiring rate of the majorities group by 80% = .50 x .80 = .40 (40%) Determine the minimal selection/hiring rate by multiplying the number of minority applicants by the above multiplier = 45 x .40 = 18.18 (18) There could be questions like this on the exam and they would be big point grabbers. If we didn't hire at these rates, need to go back and review selection processes
110
xxxx What was Griggs v Duke Power?
Required HS diploma or scores on an IQ test to equal those of the average HS grad. Bottom line: discrimination need not be intentional or overt to be illegal. Established the criteria for disparate impact. Griggs v Duke = unintentional, disparate/adverse impact. "Griggs vs Duke - that test was a fluke"
111
xxxx What was McDonnell Douglas Corp v Green?
Established the criteria for disparate treatment. Green was laid off; participated in a lock-in. McDonnell advertised for mechanics; Green applied and was rejected. Green sued and won. He presented the prima facie case of disparate treatment McDonnel Douglas v Green: intentional or prima face, therefore, disparate treatment. "Not rehiring green is mean"
112
xxxx What is BFOQ?
Bona Fide Occupational Qualification Valid job requirements for competence in a job. Can allow some discrimination where those are considered reasonably necessary to the normal operation of that particular busienss or enterprise.
113
xxxx Who does the Equal Pay Act (EPA) apply to?
All employees. No minimum number required.
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xxxx How many employees are necessary for coverage under the Age Discrimination in Employment Act (ADEA)?
20
115
xxxx What is the EEOC complaint process?
Complaint files Employer notified within 10 days Employer responds with a statement or agrees to resolve. Can fill out a request for mediation and return it to the EEOC. EEOC would then send the employer an Agreement to Mediate and a mediator is selected If a voluntary resolution is met. Charge is closed If unsuccessful, charge referred for investigation, which commences EEOC makes a determination based on evidence: Could dismiss the claim and issue a Right to Sue letter to the employee, could find reasonable cause and then send a "Letter of Determination" and invite conciliation. If conciliation fails, the EEOC or charging party or both may sue in federal court
116
xxxx What are some methods for promoting from within?
Combination of job posting, job bidding, nominations by supervisors, and skills inventories to find the best qualified candidates in the organization.
117
xxxx *What is the 9-box grid performance and potential matrix?
A grid with x/y axis as "potential" and "performance." An HR metric that is STRATEGICALLY RELATED TO REVENUE and a helpful tool used by managers to assess the potential of individuals identified as promotional material. It is USED IN SUCCESSION PLANNING TO IDENTIFY AND DETERMINE FUTURE SUCCESSORS. When leadership performance and potential are assessed and plotted on the graph, INDIVIDUALS IN THE UPPER RIGHT QUADRANT ARE IDENTIFIED AS HIGH-POTENTIAL CANDIDATES FOR SUCCESS, WHILE THOSE IN THE LOWER LEFT MAY NEED TO BE REASSIGNED OR REMOVED.
118
xxxx *What is "replacement planning?"
Grades rank and file employees based on their past performance in case the organization must replace them.
119
xxxx *What is "career pathing?"
Aligns opportunities for employee career growth with organizational talent priorities.
120
xxxx *Define "dual career paths"
Provides employees either a management or technical skills advancement. GREAT STRATEGY FOR RETENTION OF CRITICAL TALENT
121
xxxx *What are "career ladders?"
Predefined steps that employees make when advancing within an organization
122
xxxx What are some external recruitment methods?
Job and career fairs, open houses (atract passive candidates) e-recruiting (job posting websites/job boards, social media, networks, blogs, forums), educational institutions, third-party sources such as private and public-sector employment agencies, unions, data banks.
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xxxx *What is EVP?
Employer value proposition. It's what the company is famous for as an employer.
124
xxxx *What is employment branding?
Reputation or identity of an org that establishes it as an EMPLOYER OF CHOICE. Workers will accept less salary from an employer with a strong employment brand they identify with. Made up of things like: employee stories and advocacy, company reviews, public perception, awards, career page, culture and corporate values, candidate communication, website and blog, etc.... *An effective employer brand provides better quality of hiring, reduces time to fill, cuts hiring costs, and improves employee engagement and enhances retention.
125
xxxx Explain ingroup/outgroup bias vs affinity bias
ingroup/outgroup: based on group-level similarities or differences (gender, race, interests, etc...) Affinity: based on shared or similar experiences (education, hometown, etc...) *For exam: Focus on mitigating biases when it comes to interviewing
126
xxxx What is halo/horn effects bias?
When the interviewer judges all the qualities of a candidate based on the observation of a few qualities only *For exam: Focus on mitigating biases when it comes to interviewing
127
xxxx What is cultural noise/politically correct bias?
When an applicant gives answers based on what they think the interviewer wants to hear. *For exam: Focus on mitigating biases when it comes to interviewing
128
xxxx *Explain the different types of Visas
Immigrant visas: for people who intend to live permanently in the US Non-immigrant visas: for people with permanent residence outside the US but wish to be in the US on a temporary basis for tourism, medical treatment, business, temporary work, or study. B-1: temporary entry for business F-1: academic students H-1B: RARE professionals and specialty occupations (good for 3 years, may be renewed once for a total of 6 years) J-1: exchange visitor L-1: Intracompany transfer (EE must have worked for the company 1 year out of the last 3 years; good for up to 7 years) 0-1: Persons with extraordinary abilities in the sciences, arts, education, business, or athletics.
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xxxx What are the five main functions of global human resource management?
Recruitment and onboarding OTJ training and continuing professional development Compensation Benefits Ensuring legal compliance Global staffing strategies utilize Perlmutter's EPRG FRAMEWORK, which is designed to be used an an internationalization process of businesses and mainly addresses how companies view international management orientations.
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xxxx What are the four phases of multinational enterprise maturing (also staffing strategy used based on org needs)?
Ethnocentrism: only HQ nationals know how to properly run the company. HQ maintains tight control. Complex at HQ but simple in subsidiaries. Polycentrism: MNE begins accepting local nationals into its key positions along with HQ personnel that staff the local operation. Subsidiaries develop. Diverse and independent. Less expensive. Can limit career mobility for both local and foreign nationals, isolated and reduces opportunities to achieve synergy, low possibility of economies of scale Reginocentric. Possesses strong regional identity. High communication and coordination with in the region but not with HQ. Regionally uniform. Diversified systems for rewards and punitive action. Geocentric: highest expression of global maturity. MNE begins accepting and hiring people from all over the world to hold key positions in its world-wide operations. Targets global consumers and borrows what is best from countries. Collaborative approach between HQ and subsidiaries. Highly complex. Immigration policies may put limits on implementation, more expensive than polycentrism (but efficient), fully depends on constant global market research (which means significant investment of time and resources.
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xxxx What are the terms for international assignment workers?
Host country nationals (HCNs): hired for jobs in their own country Expatriates: employees who are asked to work outside their home countries for a period with the intent of returning to their home countries Headquarter nationals/parent country nationals: Employees from the country of center of operations of a particular employer Third-country nationals: most often hired for short-term employment Resident aliens: either "green card" of "substantial presence" test or they elect to be treated as a resident alien during their first year of working in the US Inpatriates: foreign national employees that have been transferred to work in the home country of an international organization on a temporary or permanent basis
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xxxx What is the typical RIF process?
1. Ask for volunteers via resignation, retirement, or transfer 2. Entice EEs with early retirement (watch for discrimination - OWBPA compliance rules, needs incentive) 3. Offer voluntary severance programs, usually involves some type of incentive severance pay 4. Compulsory layoff (usually done by seniority to limit discrimination)
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xxxx Jenny's regular rate of pay is $9/hour, plus $1/hour shift differential for working 2nd shift. They worked 44 hours in a work week and received a Good Attendance bonus of $88. What is Jenny's gross pay that week?
- Multiply $10/hr by ALL 44 hours = $440 - Add non-discretionary bonus = $528 - Find half-time rate: $528/44=$12/hr. Half of $12 = $6/hr - Multiply half time rate ($6/hr) by the four OT hours = $24 of half time OT premium pay - Add straight time earnings and half-time premium pay = $552.
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xxxx Jay's regular rate of pay is $12/hr. They worked 45 hours ina. workweek and received a sales bonus of $180. What is the gross pay that week?
12x45=540 540+180=720 720/45 = 16 16x.5=8 8x5=40 720+40=760
135
xxxx What is the minimum salary for exempt employees?
Exempt employees are not eligible for overtime An employee who meets any one fo the duties tests except outside sales, must be paid at least $684/week or $35,568/yr on a salary basis, free and clear (no ties to bonuses). May be paid in equivalent amounts for periods longer than one week (biweekly, semimonthly, monthly.
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xxxx What are the 4 exempt duties tests?
Executive: management of people (2+ employees) with authority to hire/fire *Administrative: management of processes. Manage important business elements and exercise discretion Professional: Learned professional (work that requires 4-year college degree), creative professional, computer professional (analysts, programmers, engineers...not help-desk or repair technicians who provide support from a manual) Outside sales: May be paid 100% commission, no minimum wage level required. Must be regularly employed away from the primary place of business
137
xxxx What does social security cover?
death, retirement, disability, survivorship, medicare/medicaid
138
xxxx What does the Civil Rights Act cover (Title XII)
Can't discriminate based on race, sex, religion, national origin, color, sexual orientation, and gender identity if the employer has 15 or more employees. June 2020, the Supreme Court rules that Title VII prohibits LGBTQ discrimination (Bostock v Clayton Cty GA) that's discrimination based on sexual orientation and gender identity.
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xxxx What is the Pension Benefit Guarantee Corporation (PBGC)?
Part of ERISA. Protects retirees' retirement funds. Make sure money is set aside in trust funds to cover underfunded pensions.
140
xxxx What is FMLA?
Provides 12 weeks unpaid time off with no negative consequences for workers. Covers birth, adoption, serious medical conditions. Employers with 50 employees within a 75-mile radius must provide FML.
141
xxxx What is the Health Insurance Portability and Accountability Act (HIPAA)?
Employers are prohibited from knowing or using PHI (personal health information) as a basis for employment decisions
142
xxxx What is comparable worth and Adam's equity Theory?
Part of internal equity. Comparable worth: belief that work that requires the same levels of skill and effort should be compensated similarly, despite a worker's age, sex, race, or any other differentiating factor. Adam's Equity Theory is the theory that considers comparable worth. Workers compare their pay to someone else or other job titles. The solution is to pay consistently from one position to the next.
143
xxxx What is compa-ratio, red circle rate, and green circle rate
Compa ratio = the rate of pay/mid-point of the salary range (or benchmark rate) Red circle rate = paid more than 1 compa ratio. Green circle rate = paid less than 1 compa ratio
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xxxx Jacqueline is paid $75,000 annually. The Mid-point of her grade is $75k. What is her compa-ratio? What if she is paid $90k?
$75k = 1 $90k = 1.2 (90k/75k=1.2)
145
xxxx *When it comes to motivation and pay, what are content theories vs process theories?
Content theories = WHAT motivates individuals (like Maslow's hierarchy) Process theories = HOW motivation occurs (like Adam's equity theory)
146
xxxx *Explain Herzberg's two-factor theory
Content related theory (what motivates) Hygiene factors (like salary, working conditions, etc...) and Motivator factors (like achievement, recognition, responsibility, advancement, etc...) Herzberg theorizes pay and benefits do not have the power to motivate, but they do have the power to demotivate, if done poorly.
147
xxxx *What is Vroom's Expectancy Theory
A process-related theory (how to motivate) Based on "the better I do, the better treatment I should receive" An example would be a performance appraisal system
148
xxxx **What is expectancy theory?
Assumes behavior is determined by a combination of forces and people make independent decisions for subjective reasons, that those differences can be studied systematically, and the results of those studies leveraged to provide compensation and rewards that groups and individuals value and desire. (Vroom's expectancy theory is included here)
149
xxxx What is Goal setting theory?
Process related theory Management by objectives
150
xxxx *What are the steps in creating a job (job architecture)?
Job analysis - MUST happen first Job design - structuring of job elements, duties, tasks, and compensation to achieve optimal performance and employee satisfaction Job specification - comprehensive list of the personal qualifications necessary to do a job Job description - summary of most important features of a job, executive summary of a job analysis Job evaluation - method of deciding what compensation should be awarded in relation to 2 criteria: internal equity and external equity
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xxxx What are job evaluation methods?
Non quantitative: 1. Job ranking: hierarchy of jobs from lowest to highest. Quick and inexpensive but can be difficult to differentiate difference between jobs. *most common method. 2. Paired comparison: comapares each job with every other job and then ranks them in order of relative worth 3. Job classification: groups jobs into predetermined classes. Great for large groups but difficult for jobs that may overlap Quantitative: 1. Point method: each factor of the job is assigned points best describing the jobs worth. MOST COMMON. Considers 4 factors: skills, responsibilities, effort, and working conditions. Jobs with the most points get the most pay and so on. 2. Factor comparison method: uses compensable factors (dollars instead of points) to evaluate worth and assign dollar values to each factor. *Most complex and difficult, used least in US 3. Hay profile method: uses knowledge, mental activity, and accountability to evaluate executive and managerial positions 4. Market based/pricing: external sources
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xxxx *What are some direct compensation/base pay systems?
Flat rate: everyone makes the same amount regardless of performance or seniority. Time-based: seniority Step-rate: automatic and structured raises on certain dates based on worker's anniversary **Performance-based: individual, business unit, or corporate performance (or combination). Should be based on business strategy and complement operational processes, management style, and financial objectives Merit pay: permanent increase in base salary for an individual's outstanding performance. Piece rate: based on production. based on quantity of work. **Skill and competency-based: links employee pay to the number of skills they can perform or competencies acquired, regardless of position or seniority. Multi-skill systems: rewards for learning new skills sets, even if they aren't actively using them. Creates bench strength in case of layoffs, sickness, retirement, etc... Broadbanding: consolidates large number of pay grades and salary ranges into fewer bands with wide ranges. Ranges typically have 100% or more difference between the minimum and maximum. ($50k-$100k)
153
xxxx What is gainsharing?
A type of variable pay that ties bonuses or salary increases to increased productivity (vs profit). Performance-based incentive pay. Improvements in company profits are shared with or split with employees. Scalon, Rucker, and Improshare (short for Improvement Sharing) are ALL variations of gainsharing. *Focused on boosting operational performance. *Don't need to dig into the weeds for the exam. MAINLY KNOW THAT IT'S MEANT TO ENHANCE PERFORMANCE.
154
xxxx What are defined benefit plans (NOT defined contribution plans)?
Pension plans. Benefits are defined and employee knows what the plan is worth/can predict how much plan will provide when they retire. Cliff vesting vs graded vesting: Cliff: schedule for employer contributions. Employee must complete 5 years of service to become vested in employer contributions portions. Graded: schedule for employer contributions. Employees are 20% vested in employer contributions after completing 3 years of vesting service. For each subsequent year, the vesting increases by 20% until it reaches 100% at 7 years.
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xxxx What are examples of defined contribution plans (NOT defined benefit plans)?
401k, IRA, etc... Cliff vesting: after a certain number of years, all benefits accrued vests without any gradual vesting before a set time. After this time, employee takes 100% ownership Graded vesting: vesting schedule under which an employee is partially vested after a certain number of years of service until full vesting is achieved at 6 years.
156
xxxx What are the types of healthcare benefits?
Healthcare is the highest runaway cost in business today with annual double-digit increases. Most healthcare questions will focus on cost-containment Fee-for-service plans/self-insured plans: Insurers pay for health care services provided. Employees can choose any doctor Managed care/Health maintenance organizations (HMOs): manage health care delivery to control costs. Rely on a PCP who acts as a gatekeeper. Often focus on prevention and wellness. May sometimes include dental and vision. Preferred provider organization (PPO): Obtain services within network for lowest cost but may provide coverage outside of network. Lower fees to policyholders. Don't need referrals or a designated PCP. Use a membership card instead of claim forms. Exclusive provider organization (EPO): similar to PPO but services are covered only in plan (possible exceptions for emergencies) Point-of-service plan (POS): Combines HMO and PPO. May need designated pcp, usually includes preventative care, may receive care from non-network providers but with greater out-of-pocket costs. High deductible health plans (HDHPs): high deductibles and low premiums. Insurer won't cover most expenses until the deductible is met. Exception usually for preventative care. Provides financial security for more severe illnesses. Often compatible with HSAs. Cafeteria plans: pay for certain expenses. Employers select the benefits offered and employees use pre-tax dollars to buy the benefits they want. Employers can also make contributions to subsidize benefits. AKA flexible benefit plans or Section 125 plans
157
xxxx What is imputed income?
A reward the employee receives which is usually untaxed and is especially important for executives
158
xxxx What is mid-point progression?
Represents jumps between salary range midpoints as you work your way up a traditional salary range structure. For example, the difference between the mid-points of grade 6 and 7 is $1/hour
159
xxxx What are prequisites?
Perks
160
xxxx What is a totalization agreement?
Designed to prevent double taxation of expatriates while on foriegn assignment due to mandatory withholdings of retirement benefit taxes (social security/nationalized retirement plans)
161
xxxx What is a golden handshake?
A deferred executive compensation incentive that provides a significant severance package. Often used when a position entails a high risk of termination due to restructuring or change of direction or sometimes as an incentive to retire early.
162
xxxx What is a golden life jacket?
May be offered to executives of a company being acquired to ensure they remain with the reorganized company.
163
xxxx What are the 3 learning theories?
Behaviorism: focuses on observable behaviors and external stimuli as the key drivers of learning. Learning through reinforcement (rewards/punishments) and conditioning (repetition) (B.F Skinner, John Watson, and Ivan Pavlov). Effective for procedural and skills-based learning and mastery. Provides clear structure and observable outcomes but lacks internal thought and learner autonomy. Best for introductory stage of knowledge acquisition. Effective for skill mastery Cognitivism: emphasizes internal mental processes, such as thinking, memory, and problem-solving (Jean Piaget, Jerome Bruner, Robert Gagne). Supports comprehension and problem solving. Focuses on understanding and retention but can be too rigid or overly reliant on structured methods. Best for introductory stage of knowledge acquisition Constructivism: centers on learners actively constructing their own understanding and knowledge through experiences and interactions. Uses projects, simulations, case studies, etc...(Lev Vygotsky, John Dewey, Seymour Papert). Excels in fostering critical thinking and adaptability. Promotes creativity, collaboration, and real-world application but is time-intensive and requires significant resources. Best for advanced knowledge acquisition (initial misconceptions, etc... can be addressed)
164
xxxx Explain Classical conditioning vs Operant conditioning
Classical: happens unconsciously. Form of behaviorism in which a specific stimulus produces a predictable response. The sound of a phone ringing or an email or IM tone notifications can become a conditioned stimulus eliciting high blood pressure or anxiety if they mostly consist of one problem after another Operant conditioning: behaviors are dependent on, or controlled by, its rewards and consequences. We change our behavior choices in response to the consequences. (Positive reinforcement contingencies, punishment contingencies, avoidance contingency - response made to avoid an unpleasant consequence, escape contingency - a response made to terminate an unpleasant consequence, extinction contingency - no reinforcement after a response in an effort to terminate it
165
xxxx **What is social cognitive theory?
Learning through observing others within the context of social interactions, experiences, and outside media influences
166
xxxx What is andragogy?
Refers to methods and approaches used in adult training, development, and education and is directed towards self-actualization, gaining experience, and problem-solving. 4 Central principles: Requires involvement: Adults involved in planning and evaluation of instruction Experiential based: Can pull past experiences into the learning process Problem-centered: (rather than content-oriented). Not memorizing facts and information. Adults need to solve problems and use reasoning. Enhanced by active participation: Applicable to lives and able to implement immediately.
167
xxxx What are instructional design models?
Instructional design aims for learner-centered rather than the traditional teacher-centered approach to instruction, so that effective learning can take place. Every component of instruction is governed by the learning outcomes, which have been determined after thorough analysis of the learners' needs and goals of the training: ADDIE: 5 stage process. Most instructional design frameworks are variations of ADDIE: Assessment/Analysis, Design, Development, Implementation, and evaluation. Linear. Checking progress at every step. AGILE: used for content chunking, to break up large amount of training content into manageable modules SAM: successive approximation model, relies on reputation and collaboration. An AGILE development process that emphasizes collaboration, efficiency, and reputation.
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xxxx What are methods for conducting a needs analysis/assessment (ADDIE)?
Gap analysis: systematic process for determining and addressing needs/gaps between current conditions and desired conditions. Review: future skills needs, labor pool needs, changes in law. Might also conduct task analysis or individual analysis. May use things like performance appraisals (one of the BEST tools for gathering data on what training is needed and who needs it) and assessment centers (a way of identifying POTENTIAL LEADERS FOR TRAINING by putting them through an extensive assessment process including interviews, group exercises, presentations, examination, and psychometric testing) - Page 118
169
xxxx Explain action vs experiential learning
There is not much difference between action and experiential learning...but look for keywords: GROUP is the keyword for action learning and STAGED or ON-THEJOB for experiential learning. Action learning: brings together a GROUP of people with varied levels of skills and experiences to analyze an actual work problem and develop an action plan. The group continues to meet as actions are implemented, learning from the implementation, and making mid-course corrections. Experiential learning: learning from experience. Assumes the only way to learn certain skills is by performing them. The experience can be STAGED or ON-THE-JOB.
170
xxxx What are training methods (used in the development stage of ADDIE, where you actually construct the training program)
Page 122-123 Lectures Business games (simulated problems but can sometimes create competition instead of learning) In-basket training: test or develop organizational skills. Asked to respond to letters, memos, emails, etc... in a given amount of time. Vestibule training: Duplicate on-the-job situations On-the-job (OTJ): cheap and easy but can sometimes teach bad habits and attitudes Coaching: relies on continual feedback from an expert Mentoring Internship/apprenticeships Rotation/cross-training Off-the-job training methods: workers seek their own workshops, software, etc... E-learning
171
xxxx **What is the Kirkpatrick model?
The gold standard for evaluating training effectiveness: Level 1 is REACTION, and it evaluates how participants respond to the training. Did the attendee like the training program? Checklists, questionnaires, and interviews are common methods of determining reaction. Sometimes referred to as "smiley face" forms as they measure enjoyment without meaningful depth Level 2 is LEARNING, and it measures if participants learned the material. Did attendee learn from the content? To what extent did they improve their knowledge, skills, or change their attitude. Methods: Pre-test/post-test system (most common), pre-test/post-test with control group system, Solomon four group design (a superior method for measuring learning as it ensures validity by factoring in the potential for testing effect threats. A testing threat can occur when scores on a post-test are influenced by simple exposure to the pre-test (not the training). Includes two extra groups in the process. Level 3 is BEHAVIOR, and it considers if participants are using what they learned on the job. Did attendee display the learning on the job? To what extent did they change their behavior? Common methods: Performance tests, critical incidents (how did they perform in crisis situations), simulation, observation Level 4 is RESULTS, and it evaluates if the training positively impacted the organization. Did the training impact business results? Business results. Productivity, efficiency, sales revenue? This is the highest form of value The levels are in order of value. The degree of difficulty and costs in time and resources increases as you move up the levels. Kirk Really Loves Buying Redhots?
172
xxxx What is McClelland's Manifest Needs theory?
Achievement-oriented individuals want and seek feedback. People with a need for achievement need and seek regular feedback to monitor the progress of their achievements. Also identifies two other types of employees: those who seek power (personal and institutional) and those who need affiliation (harmonious relationships)
173
xxxx ***What are some performance appraisal methods?
Category Appraisal Methods: GRAPHIC RATING SCALES: require the appraiser to check the appropriate place on a scale for each task or objective listed. Popular due to simplicity and ease and they provide quantitative ratings for each employee. However, standards may not be clear, and categories may be overly broad or inappropriate. Checklists Forced choice: Variation of the checklist method and requires the appraiser to check two of four statements to describe characteristics and performance of the appraisee, one that the appraisee is most like and one that they are least like Comparative Appraisal Methods: Ranking: Must order their direct reports. Simple to use (graphic rating is simplest). Can cause peer disagreements and may be unfair if all employees are ranked excellent. Paired comparison (like a March madness bracket...) FORCED DISTRIBUTION OR STACKED RANKING: sets clear and strict guidelines for managers on how the expected distribution of performance ranking for each appraisee should look on a bell curve. An org will invest in development of employees ranking best and act on those ranking low. EXTREMELY POPULAR METHOD. On the downside, some workers may be forced into a category they do not deserve du to limitations of the system or appraiser. Also, workers may begin to compete against one another for good evaluations and their willingness to work together as a team may diminish. Senior HR leaders must learn their workforce, organization, and industry, and create pay, evaluation, and reward schemes and programs based on their unique needs. Narrative Appraisal Methods: Essay: unstructured and wordy. Rarely used except for executives who do not have a clear JD Critical incidents Field review: Uses a third party from within the org, usually that's an HR rep to collaborate on rating the employee and conducting the appraisal. Alternative & more contemporary methods: Peer reviews (can be costly and team members may give disingenuous feedback). 360-DEGREE: Can be costly and time consuming to administer but the information can be used to manage performance and select self-improvement goals more effectively. BEST USED FOR PERFORMANCE DEVELOPMENT AND SELF-IMPROVEMENT, NOT AS A COMPREHENSIVE YEARLY BARS (BEHAVIORALLY ANCHORED RATING SCALES): CONSIDERED ONE OF THE MORE SUPERIOR EVALUATION AND APPRAISAL METHODS. WORKS BEST IN ORGS WHEN EMPLOYEES ARE PERFORMING THE SAME TASKS. EVERY POSITION HAS A CUSTOMIZED RATING SCALE THAT MEASURES KEY BEHAVIORS FOR THE JOB. BEHAVIOR ANCHORS ARE VERY ACCURATE BUT CAN BE DIFFICULT AND COSTLY TO IMPLEMENT AND ADMINISTRATE. MBO (MANAGEMENT BY OBJECTIVES): Requires collaboration on objective and goal creation and then ratee is evaluated on how successful they are in achieving those goals. Time consuming to implement but both parties jointly agreed. MBO offers understandable objectives so employees can check at any time. However, formal reviews tend to only occur yearly. Also tends to be flexible and open-ended and can be qualitative or quantitative depending on the org. Can be complex to implement even if accurate. OKR (OBJECTIVES AND KEY RESULTS): Enhances MBO. MBO focuses on what you want the employee to achieve, while OKR will set out what you want the employee to achieve and the key things they need to do to achieve them. Often more frequent reviews and work towards monthly or quarterly evaluations. Requires precise and quantitative and clear measurements. Can be complex to implement even if accurate. THERE IS NO ONE SIZE FITS ALL FOR APPRAISAL METHODS. Choose the option that best fits org culture and goals.
174
xxxx What are common performance appraisal errors?
Bias error Recency error Leniency error Primacy error: Gives more weight to earlier performance Confrontation avoidance (leniency, halo/horn effect, and centralization/central tendency) Halo/horn effect: rater gives excellent or low ratings in all reas, impacting overall appraisal. Usually when raters let one strong value judgement influence evaluation of behaviors and performance Lack of clear standards or rater training Severity: rater has unrealistic expectations or reluctant to offer praise. Often occurs in orgs that practice a hard HRM strategy Central tendency error (centralization): appraiser rates all employees within a narrow range, regardless of differences in actual performance. Many orgs try to counteract this bias by using forced distribution scales Contrast error: rate how subordinates compare against each other
175
xxxx What is EBIT?
Earnings before interest and taxes. EBIT per FTE is a good way to show value. Might want to include in weekly reports
176
xxxx *What are labor contract clauses and actions that benefit union security?
Union shop: all employees become union members (usually within 30 days of hiring) Closed shop: illegal since taft hartley, required workers to join union as condition of employment. Agency shop: workers must pay dues even if they don't join the union (union term is "fair share") Maintenance membership: members must keep membership for life of CBA Zipper clause: prevents renegotiation for life of cba Reopener clause Dues check-off: employer deducts dues from paycheck Bumping: right arising from a CBA where employee(s) who would be scheduled for layoff are permitted to displace fewer senior employees in other job classifications for which they are qualified.
177
xxxx What are the steps for a smooth transition of base pay?
Asses then define clear/measurable/attainable goals and involve stakeholders Pilot/test Train managers Use a feedback mechanism. Communicating the change is important and needs to start with transparent communication - explain rationale and how it aligns with company goals and what it means for employees. Should have details, documentation and have QA sessions to provide regular updates.
178
xxxx *How does compensation strategy relate to the business life cycle?
Usually, organizations ride the phases up and down...it is not a smooth curve. Start-up/introduction: little to no money available for hiring best/brightest. Struggle to hire the best you can with few benefits. Growth: starts to show a little profit. Can spend a little money to attract and can do some training Maturity: stability and strong enough to survive some downturns. Can hire experienced or inexperienced people as have the funds to attract the best and brightest with good pay/rewards or to train people up. Good benefits for all. HR focuses on strategic compensation/benefit plans and training. Decline: profits dropping/customers be lost. No hiring. Laying off workers and struggling to stay within decreasing budget. No training and no raises (except for maybe cola) Rebirth: small business thinking, same strategies as start-up/introduction Demise: company will end if they can't pull out of decline
179
xxxx What is recruitment yield?
Total number of qualified applicants divided by total number of applicants. Can be calculated at various stages in the recruitment process. It is the number of applicants qualified out of the total applicants.