Study Notes II

Question 1

One of HR’s strategic abilities is an awareness of external factors that can affect the organization and HR’s job. Which task reflects this ability?

Answer 1

Gathering information about technologies that could increase HR productivity

Question 2

An HR manager meets regularly with a local education director to discuss what the educator is seeing in the system and its students. What does this activity illustrate?

Answer 2

Conducting information gathering

Question 3

What is the most important information contained in an organization’s mission statement?

Answer 3

What the company does

Question 4

What is the importance of the first R in the SMARTER acronym?

Answer 4

Makes sure an objective aligns with strategic goals

Question 5

KPIs in the original balanced scorecard (developed by Robert Kaplan and David Norton) are identified under four key areas: Finance.

Answer 5

Financial KPIs may vary, but for HR they could include productivity rates and management of short-term funds. Achieving these goals is of interest to management, employees, and shareholders.

Question 6

KPIs in the original balanced scorecard (developed by Robert Kaplan and David Norton) are identified under four key areas: Customers

Answer 6

This perspective captures the ability of the organization to provide quality goods and services and satisfy its customers. It might be measured by the number of managers using a self-service system to set up new employees, processing rates for changes in compensation or corrections in benefits, or employee satisfaction with dispute resolution services.

Question 7

KPIs in the original balanced scorecard (developed by Robert Kaplan and David Norton) are identified under four key areas: Internal business processes.

Answer 7

This perspective focuses on the internal business results that lead to financial success and satisfied customers. For HR, key internal processes may be managing talent acquisition and retention, employee development, and providing consultation to other functions.

Question 8

KPIs in the original balanced scorecard (developed by Robert Kaplan and David Norton) are identified under four key areas: Learning and Growth

Answer 8

This perspective looks at actions that will prepare the future organization for success—for example, by strengthening the employer brand to attract talent, making sure employees have the most current skills, or implementing knowledge management systems.

Question 9

The acronym SMARTER is used to describe the seven qualities that characterize effective objectives.

Answer 9

Specific. Focused on a narrowly defined activity rather than a generalization.

Measurable. Capable of objective measurement. (Note that even intangibles can be measured objectively once a measurement system is established.)

Attainable. Requiring effort but within reach given effort and the right tools and support.

Relevant. Producing an outcome that is in the line of sight with the goal.

Timebound. Subject to evaluation within a reasonable and defined time frame.

Evaluated. Assessed at the designated time or interval, often continuously in the form of progress or pulse checks.
Revised. Changed to reflect what has been learned. The objective-setting process is repeated to make sure that the activities chosen are still the right activities and that the targets for results are attainable but also push performance to higher levels.

Question 10

Why is maintaining internal communication critical during a divestiture?

Answer 10

To retain high-potential talent on both sides of the deal

Question 11

Companies agree to share assets, such as technology or sales capabilities, to accomplish a goal. The relationship may have varying degrees of tightness and formality. Some alliances involve customers, partners, or competitors.

Answer 11

Strategic alliance

Question 12

Two or more companies invest together in forming a new company that is jointly owned.

Answer 12

Joint venture

Question 13

One firm acquires partial ownership through purchase of shares. The relationship may be general (sharing proportionally in control, profits, and liabilities) or limited (no managerial authority, liability limited to investment). Partnership agreements define such issues as leadership and division of profits and losses.

Answer 13

Equity partnership

Question 14

A firm purchases the assets of a local firm outright, resulting in expanding the acquiring company’s employee base and facilities. Integration of acquired companies often involves significant cultural, systems, and management challenges. Data privacy can be a big issue.

Answer 14

Merger/acquisition

Question 15

A trademark, product, or service is licensed for an initial fee and ongoing royalties. Often used in the fast-food industry. Similar to licensing as a low-risk entry strategy, although control over franchisee behavior is greater.

Answer 15

Franchising

Question 16

A local firm is granted the rights to produce or sell a product. A low-risk entry strategy; avoids tariffs and quotas imposed on exports. However, there is little control of the licensee’s activities and results.

Answer 16

Licensing

Question 17

A firm arranges for a local manufacturer to produce components or products as a means of lowering labor costs.

Answer 17

Contract manufacturing

Question 18

Another company is brought in to manage and run the daily operations of the local business. Decisions about financing and ownership reside with the host-country owners.

Answer 18

Management contract

Question 19

An existing facility and its operations are acquired and run by the purchaser without major changes.

Answer 19

Turnkey operation

Question 20

A company builds a new location from the ground up. This represents a major task and a commitment to completely staff and equip the new location.

Answer 20

Greenfield operation

Question 21

A company repurposes, through expansion or redevelopment, an abandoned, closed, or underutilized industrial or commercial property.

Answer 21

Brownfield operation

Question 22

Growth strategies are often fueled by divestiture

Answer 22

the selective “pruning” of parts of the organization that are underperforming or that are no longer in line with the organization’s strategy.

Question 23

Divestiture offers a number of benefits to the parent company:

Answer 23

The perceived value of a subsidiary or its opportunities may be increased. Sometimes the parent company may not have the necessary talent to take the “child company” to its next level of growth.

Investment may be recouped through the sale of a high-value subsidiary and the cash used to increase the parent’s value in other ways.

The enterprise’s activities may be refocused on new priorities, perhaps as the result of competitive threats and/or opportunities.

Risk that might derive from financial positions (such as poor cash flows or high debt load) or strategic outlooks (such as declining market growth or the possibility of a hostile takeover) can be managed.

Question 24

The general steps for divestiture include:

Answer 24

1. Identify the candidate for divestiture. The candidate might be a valuable but strategically unaligned business, or it might be a subsidiary competing in a market with low growth potential or competing ineffectively in the market. HR plays a role in this stage by performing due diligence as a seller: identifying potential risks connected with divesting particular candidates—for example, loss of talent, impact on employee career development opportunities or on labor contracts. HR can also participate in a SWOT analysis of the candidate.

Question 25

The general steps for divestiture include:

Answer 25

2.Identify a target buyer. The strongest candidate will be an enterprise that needs the strengths and opportunities the divested subsidiary can provide and that can address potential weaknesses in the workforce. Some parent companies want to be sure that employees will thrive in the new company. HR can provide accurate information about the value of the workforce and can work on behalf of the employees to obtain favorable compensation and development opportunities.

Question 26

The general steps for divestiture include:

Answer 26

3.Restructure. Even before an actual sale or spin-off, the parent company should prepare the subsidiary for its new identity by defining new leadership, board composition, and organizational structure. This will increase the value and potential of the carved-out or spun-off subsidiary. Again, HR plays an important role here. It may help identify and prepare strong leaders for the subsidiary (without harming the talent of the parent company). Leaders may be drawn from other parts of a global organization. HR will also be involved in designing incentive offers for the subsidiary’s new leaders.

Question 27

The general steps for divestiture include:

Answer 27

Execute the deal. Transition service agreements are often established to support the new entity. Agreements might cover financial (treasury and tax), legal, IT, business processes, and HR—including such capabilities as HRIS, payroll, and benefits. HR can assemble a balanced transition team, composed of parent and subsidiary employees, to empower departing employees without ceding control over sensitive decisions.

Question 28

What is one of the most critical tasks in preparing the HR budget?

Answer 28

Establishing a connection with the strategic plan

Question 29

What is an HR leader’s most important concern in preparing to present strategic results to management?

Answer 29

Communicate a logical narrative with the data.

Question 30

An organization includes short video clips on the corporate website in which employees talk about their jobs and managers discuss what they are looking for in new hires. This exemplifies

Answer 30

social media recruiting.

Question 31

Polycentric Subsidiary treated as own entity; local personnel manage operations; few promotions to HQ

Answer 31

Headquarters-country personnel have little impact on other countries. Talent acquisition policies are unique to each country. Little cross-border movement of talent and skills occurs.

Question 32

Geocentric Organization seen as single international enterprise; management talent comes from any location; strategic plan is global in orientation

Answer 32

Employees circulate throughout the global organization. Talent acquisition policies maximize long-term strength of the global organization. Talent and skills are deployed globally to achieve global goals while meeting local requirements.

Question 33

Service specialists are given a lot of discretion when dealing with customers, and those interactions have a big effect on the organization’s sales. The difference in revenue generation and customer satisfaction between high performers and low performers is significant. What BEST describes the high performers?

Answer 33

Pivotal talent pool

Question 34

Degrees, training, and certifications required for a position are considered

Answer 34

job specifications.

Question 35

Job identification

Answer 35

Job title Department or location Date the job description was completed Reporting

Question 36

Position summary

Answer 36

Brief overview (four or five sentences) that summarizes the: Purpose and objectives of the job Expected results Degree of freedom (for example, works independently or works under direct supervision)

Question 37

Minimum qualifications

Answer 37

Minimum knowledge, skills, and abilities required to perform the job satisfactorily

Question 38

Duties and responsibilities

Answer 38

Primary duties and responsibilities of the job

Question 39

Success factors

Answer 39

Personal characteristics (behaviors or proficiencies) that contribute to an individual’s ability to perform well in the job; often referred to as job competencies (Job competencies are described later in this section.)

Question 40

Physical demands

Answer 40

The physical aspects of the job that are minimally required; typically specifies the frequency of performing these physical demands

Question 41

Working conditions

Answer 41

The environment in which the job is performed, especially any unpleasant (or dangerous) conditions

Question 42

Performance standards

Answer 42

Specify how the incumbent performing this job will be evaluated against goals, objectives, and organizational performance factors (e.g., quality, safety, attendance, customer service, productivity)

Question 43

Job specifications

Answer 43

describe the minimum qualifications necessary to perform a job. A job specification should reflect what is necessary for satisfactory performance, not what the ideal candidate should have. Specifications must be written to ensure compliance with all local laws (including nondiscrimination policies).

Question 44

Cost of hire

Answer 44

Cost of hires/number of hires

Question 45

Cost per hire

Answer 45

Sum of internal cost + Sum of external cost/ Total number of new hires in a period.

Question 46

The ability to compare sourcing data and hiring results is an example of a(n)

Answer 46

workforce analytic.

Question 47

Ratio

Answer 47

the quantitative relation between two amounts showing the number of times one value contains or is contained within the other.

Question 48

An interviewer asks a candidate to describe a time when he failed to complete a task or project on time despite intending to do so. This BEST exemplifies which type of interview?

Answer 48

Competency-based

Question 49

What type of assessment tests factors such as conscientiousness, extraversion, agreeableness, emotional stability, and openness to experience?

Answer 49

Personality

Question 50

An offer letter should be sent to a candidate immediately after

Answer 50

the hiring decision is made.

Question 51

Cognitive ability tests

Answer 51

Assess skills the candidate has already learned. Measure a variety of mental abilities, such as verbal and mathematical skills, logic, reasoning, and reading comprehension. Typically consist of multiple-choice items that are administered via a paper-and-pencil instrument or computer. Examples: Performance tests or work sample tests that require candidates to complete an actual work task in a controlled situation may be administered.

Question 52

Personality tests

Answer 52

Attempt to measure a person’s social interaction skills and patterns of behavior. Report what might be described as traits, temperaments, or dispositions. Typically administered in a paper-and-pencil or computer format. Examples: Inventories consisting of several multiple-choice or true/false items measure personality factors such as conscientiousness, extraversion, agreeableness, openness to experience, and emotional stability.

Question 53

Aptitude tests

Answer 53

Measure the general ability or capacity to learn or acquire a new skill. Look at a person’s innate capacity to function. Predict learning and training success. Example: A test measures the natural aptitude for computers and problem solving for computer professions (e.g., systems analyst, programmer, network manager).

Question 54

Psychomotor tests

Answer 54

Require a candidate to demonstrate a minimum degree of strength, physical dexterity, and coordination in a specialized skill area. Based on key job duties and responsibilities; they are appropriate only if the primary duties and responsibilities of the job require such abilities. Example: A manual dexterity test is administered to a candidate for a factory assembly job.

Question 55

Assessment centers

Answer 55

Not necessarily a place but rather a method of assessing higher-level managerial and supervisory competencies. Require candidates to complete a series of exercises that simulate actual situations, problems, and tasks they would face on the job for which they are being considered. Usually last at least a day and up to several days. Trained assessors observe the performance of candidates during the assessment process and evaluate them on a standardized rating. Example: Candidates go through a battery of standardized tests and exercises such as pencil-and-paper tests, comprehensive interviews, individual and/or group role-play exercises, in-basket exercises, and work-related performance tests.

Question 56

Systems that provide resources for line managers to increase a new hire’s productivity and engagement during the first six months on a job describe

Answer 56

onboarding

Question 57

What are the components of employee engagement?

Answer 57

Personality characteristics, work environment, behaviors

Question 58

What term is used to describe an undesirable form of engagement where employees appear engaged but do not actually feel or think in an engaged way?

Answer 58

Transactional engagement

Question 59

What is the most important consideration when developing an engagement strategy?

Answer 59

Alignment with business results

Question 60

Wilmar Schaufeli and Arnold Bakker view employee engagement as the antithesis of “employee burnout,” characterized by:

Answer 60

Vigor. Employees show high levels of energy and invest effort into their work. Dedication. Employees are involved in their work and have a sense of pride and enthusiasm about it. Absorption. Employees are fully concentrated on and completely engrossed in their work.

Question 61

In addition to career development, compensation and benefits, and work environment, what area does SHRM recommend exploring in employee engagement surveys?

Answer 61

Relationship with management

Question 62

What does an employee engagement survey measure?

Answer 62

Employees’ commitment, motivation, sense of purpose, and passion for their work and organization

Question 63

What is a direct benefit of conducting employee surveys?

Answer 63

Early identification of workforce issues

Question 64

What is the desired primary outcome of an employee engagement survey?

Answer 64

List of employee engagement drivers

Question 65

what area does SHRM recommend exploring in employee engagement surveys?

Answer 65

Relationship with management. Some key activities identified by SHRM as being particularly important include: Communication between employees and senior management. Autonomy and independence to make decisions. Management’s recognition of employee job performance (feedback, incentives, rewards).

Question 66

what area does SHRM recommend exploring in employee engagement surveys?

Answer 66

Compensation and benefits. Some key considerations related to employee engagement and compensation and benefits are: Compensation/pay overall. Being paid competitively with the local market. Flexibility to balance life and work issues (alternative work arrangements, including job sharing, flexible schedules, telecommuting, etc.). Medical benefits for employees and their families.

Question 67

what area does SHRM recommend exploring in employee engagement surveys?

Answer 67

Work environment. Examples include: Meaningfulness of the job (understanding how the job contributes to organizational values or society as a whole). Overall corporate culture (organization’s reputation, work ethics, values, working conditions, etc.). Relationships with coworkers.

Question 68

Employee attitude surveys

Answer 68

attempt to determine employees’ perceptions of such topics as company culture and company image, the quality of management, the effectiveness of compensation and benefits programs, organizational communication and involvement issues, diversity, and safety and health concerns.

Question 69

Employee opinion surveys

Answer 69

tend to measure important data on specific issues. These surveys may seek to gain opinions on specific processes an employee performs, safety procedures, or some other issue the employer may be evaluating or considering.

Question 70

Employee engagement surveys

Answer 70

focus on employees’ level of job satisfaction, commitment, and morale. Survey questions or statements should explicitly link to business objectives.

Question 71

In its Q12 Engagement Survey (introduced in Section 1), Gallup examines a dozen questions that measure worker engagement and are linked to business outcomes such as retention, productivity, profitability, customer engagement, and safety:

Answer 71

Do you know what is expected of you at work? Do you have the materials and equipment you need to do your work properly? Do you have the opportunity to do what you do best every day? In the past seven days, have you received recognition or praise for doing good work? Does your supervisor, or someone at work, seem to care about you as a person? Is there someone at work who encourages your development? Do your opinions seem to count? Does the mission/purpose of your company make you feel that your job is important? Are your fellow employees committed to doing quality work? Do you have a best friend at work? In the past six months, has someone at work talked to you about your progress? In the past year, have you had opportunities at work to learn and grow?

Question 72

Where can an HR professional have the most impact in shaping and driving an individual employee’s engagement?

Answer 72

At critical touchpoints in the employee life cycle

Question 73

When should an organization begin engaging employees?

Answer 73

Recruitment

Question 74

What are the two key elements of performance standards?

Answer 74

Behavior and results

Question 75

What is measured by a performance appraisal?

Answer 75

The degree to which an employee accomplishes work requirements

Question 76

What is MBO short for?

Answer 76

Management by objectives

Question 77

What is meant by “employee enablement”?

Answer 77

Setting employees up to succeed

Question 78

What is an advantage of peer-to-peer recognition programs?

Answer 78

Employees involved are better attuned to company values and feel that rewards are given out according to job performance.

Question 79

Performance standards are the expectations of management translated into two key elements that employees can deliver:

Answer 79

Behaviors. What the organization wants the employees to do. Results. What the organization wants the employees to produce or deliver.

Question 80

The standards should be written in terms of specific measures that will be used to appraise performance. Measures of employee performance include:

Answer 80

Quality. How well the work is performed and/or how accurate or how effective the final product is. Quantity. How much work is produced. Timeliness. How quickly, when, or by what date the work is produced. Cost-effectiveness. Dollar savings to the organization or working within a budget.

Question 81

The typical method of measuring employees’ adherence to performance standards and providing feedback is the performance appraisal. This process measures the degree to which an employee accomplishes work requirements.

Answer 81

Performance appraisals accomplish three purposes: Provide feedback and counseling. Help in allocating rewards and opportunities. Help in determining employees’ aspirations and planning developmental needs.

Question 82

management by objectives (MBO)

Answer 82

the employees help set objectives for themselves, defining what they intend to achieve within a specified time period. The objectives are based on overall goals and objectives for the organization.

Question 83

behaviorally anchored rating scale (BARS)

Answer 83

The BARS method was designed to overcome the problems of category rating by describing examples of desirable and undesirable behavior. Examples are then measured against a scale of performance levels.

Question 84

The recency error occurs when an appraiser gives more weight to recent occurrences and discounts or minimizes the employee’s earlier performance during the appraisal period.

Answer 84

Recency.

Question 85

The primacy error occurs when an appraiser gives more weight to the employee’s earlier performance and discounts or minimizes recent occurrences.

Answer 85

Primacy.

Question 86

The contrast error occurs when an employee’s rating is based on how his or her performance compares to that of another employee instead of on objective performance standards.

Answer 86

Contrast

Question 87

Central tendency errors occur when an appraiser rates all employees within a narrow range, regardless of differences in actual performance.

Answer 87

Central tendency.

Question 88

The percentage of people who were on staff and remained there from the start to the end of a time period BEST describes

Answer 88

retention.

Question 89

Employee absent rate

Answer 89

number of days absent in a month/average number of employees per month X number of workdays in a month

Question 90

Worker's comp incident rate

Answer 90

number of injuries/illinesses per 100 employees/Total hours worked by employees for the year X 200,000

Question 91

Monthly voluntary turnover rate

Answer 91

number of separations in a month/ average number of employees during the month 100

Question 92

Revenue per employee

Answer 92

Total revenue/ Total number of employees

Question 93

Retention Rate

Answer 93

of employees who remain employed for entire measurement period/ number of employees at the start of the measurement period X 100

Question 94

Turnover rate

Answer 94

of separations during measurement period/ average # of employees during measurement period

Question 95

What does the 70-20-10 rule indicate as the best way to structure adult learning and development?

Answer 95

70% challenging assignments, 20% developmental relationships, and 10% course­work and training

Question 96

Peter Senge’s The Fifth Discipline discusses five disciplines that interface and support one another in order to create an environment where learning can occur

Answer 96

Systems thinking (which was discussed in the HR Strategic Planning Functional Area in this People module) is a conceptual framework that makes patterns clearer and helps one see how things interrelate and how to change them. Mental models are our deeply ingrained assumptions that influence how we understand the world and how we take action. Personal mastery is the high level of proficiency in a subject or skill area. Team learning is aligning and developing the capacity of a team to create the results its members desire. Shared vision is a look into the future that fosters genuine commitment and is shared by all who need to possess it.

Question 97

For example, explicit knowledge might be shared

Answer 97

through a database or taught through a learning intervention. Because tacit knowledge is personal and experience-based, it is more challenging to quantify

Question 98

When creating knowledge retention strategies, an organization needs to consider:

Answer 98

What knowledge may be lost. The consequences of losing that knowledge. The actions that can be taken to retain that knowledge.

Question 99

Generally speaking, technology-based systems and “softer” systems can help to retain crucial organization knowledge.

Answer 99

Technology-based systems. These can include programs or databases that employees can access. A collaborative Wiki could be used to allow employees to add and edit information. Technology-based systems are great for retaining explicit knowledge but not as effective for tacit knowledge.

Question 100

Generally speaking, technology-based systems and “softer” systems can help to retain crucial organization knowledge.

Answer 100

Softer systems. Softer systems include meetings or other activities that take place to share knowledge and help people connect with one another. There are numerous examples of softer systems such as post-project “lessons learned,” job sharing, cross-training, mentoring, shadowing, Internet messaging, various social media applications, or communities of practice (CoPs) where groups of individuals with shared interests come together in person or virtually to tell stories, share and discuss problems and opportunities, discuss best practices, and so forth. Stay interviews, exit interviews, and alumni networks are also examples of softer systems.

Question 101

Kinesthetic learners

Answer 101

also known as tactile learners, learn best through a hands-on approach.

Question 102

A well-known and standard instructional design model that is conducive to any type of learning is called the ADDIE model. What does the letter I represent?

Answer 102

Implementation

Question 103

An advantage of blended learning over instructor-led training is that blended learning

Answer 103

is less expensive to deliver.

Question 104

ADDIE stands for: A = Analysis (of needs) D = Design D = Development I = Implementation E = Evaluation

Answer 104

ADDIE

Question 105

The first phase of the ADDIE process is analysis or assessment, in which data is collected to identify gaps between actual and desired organizational performance.

Answer 105

When those gaps point to a lack of employee knowledge or skill, objectives are established to address training needs.

Question 106

The analysis phase is accomplished via completion of a needs assessment or needs analysis

Answer 106

A needs analysis is the process used to identify, articulate, and document the organization’s developmental needs.

Question 107

A needs analysis can be used to identify

Answer 107

The organization’s goals and its effectiveness in reaching those goals. Gaps or discrepancies between current and desired performance. Competency and skill gaps. Types of programs needed. Critical cultural influences that will affect the design and delivery of training. Training program content based on fact rather than intuition.

Question 108

The next phase of the ADDIE process is design.

Answer 108

During this important phase, broad goals and objectives are developed and broad plans for the treatment of the content and the strategy for implementation are made. The outcome of the design phase is an architecture or rough sketch of what the final program will look like.

Question 109

The third phase of the ADDIE process is development, during which materials are created, purchased, or modified to meet the stated objectives.

Answer 109

In many cases, existing materials may, with minor modifications, be acceptable to meet specific needs. At other times, new materials must be developed. During the development phase, choices are made among the many types of learning activities, methods of training delivery, and technological tools that can be used.

Question 110

Implementation is the phase of the ADDIE process where the program is delivered to the target audience.

Answer 110

Several types of activities, including pilot programs, revisions to content, announcements and launch events, participant scheduling, and preparation of the learning environment, are done during implementation

Question 111

The final phase of the ADDIE model involves measuring the effectiveness of the training.

Answer 111

Evaluation consists of comparing the program results to the established objectives to determine whether the original needs were met. Participant reactions, retention of new information, application of new procedures, changes in behavior on the job, and changes in organizational performance are all indicators that should be considered when evaluating training results.

Question 112

Kirkpatrick’s Levels of Evaluation Methods: Level 1—Reaction

Answer 112

How participants felt about the program

Question 113

Kirkpatrick’s Levels of Evaluation Method:Level 2—Learning

Answer 113

How participants increased or otherwise changed their knowledge, skills, and attitudes

Question 114

Kirkpatrick’s Levels of Evaluation Method:Level 3

Answer 114

Behavior How participants changed their behavior on the job

Question 115

Kirkpatrick’s Levels of Evaluation Method: Results

Answer 115

How the program affected the organizational goals

Question 116

Managing Career Development

Answer 116

Left off